The price of college keeps climbing. In fact, the cost of a bachelor degree at some of the most popular private universities now exceeds $300,000!
The average cost of college in 2021 came in at $27,330 for in-state public schools and $55,800 for private universities, as reported by the college board. That is for ONE year of tuition, fees, room and board.
But you don’t have to sacrifice your own retirement nest egg to pay for your child’s dream school for fear that his/her life won’t be as rewarding.
This is a time for parents to be realistic about what they can afford and for students to give serious thought to the value of a college education and where it will get them in life.
Most important, an in-depth discussion requires families to sit down at the kitchen table and talk about money.
The psychological barriers to this discussion can be huge. Parents often feel guilty because they haven’t saved enough. They may think it’s their obligation to pay for their children’s college education because their parents paid for theirs.
Children may think they shouldn’t have to worry about where the money will come from. After all, they never had to worry about paying for things before and may want to preserve their childhood a little longer.
Unfortunately, none of these attitudes will help get the FAFSA form filled out.
Better to face the realities of college head-on now and use the experience as a lesson in financial planning.
Hi, I’m John Gigliello, Certified Financial Planner with the Albany Financial Group and you’re listening to Invest in Knowledge, a podcast about all things financial. After a life-altering health issue at 39, my calling in life became clear: To share my knowledge of personal finance with PEOPLE who are looking to make smart and responsible choices with their money. Only through education, action and accountability can YOU build the confidence and security YOU need to live a SATISFYING life.
This is the second episode in a two-part podcast series on College Planning. Last month, I talked about the 4 Keys to Cutting College Costs.
Today, I will dive into the details of qualifying for financial aid and understanding the different types of loans, scholarships and grants available. By the end of these two episodes, I believe you'll be better prepared to meet late-stage college planning challenges.