● The “best” college, or the “right” college?

There are over 3000 colleges and universities in the United States. It is not uncommon for students and parents to think of certain schools as the “best”. Some base their opinion on a particular school’s reputation or it’s cost. Most know about the Ivy League schools, the “little ivies”, the University of Michigan, the University of Notre Dame, Northwestern University, Duke, Rice, Vanderbilt, MIT, Stanford, Cal-Berkeley and on and on.

Some may feel that there is only one school that fits, or is right.

Actually, there are many fine schools where a student can find an excellent education and a rewarding college experience. There are not ten, not fifty, but many institutions that offer similar academic, intellectual and social opportunities as the “best schools”.

● College Admission Tests

One of the most unwelcome parts of the college admission process for students continues to be the SAT I and the ACT admission tests. These tests have been the subject of debate about their importance and their place in determining a student’s admission. Many schools continue to evaluate these tests relative to their admissions policies. Regardless of the part these tests play in a school’s decision process, it is in the student’s interests to take the tests and to do as well as possible. They can be the “tie-breaker”!

A growing number of colleges have departed from the traditional use of SAT I or ACT scores in the deciding admission. According to the National Center for Fair & Open Testing (www.fairtest.org) over 350 colleges and universities do not use the SAT I or ACT tests for admission decisions. The tests are not required at a number of schools. In other instances, the scores are used only for placement, or are required only for out-of-state applicants or for certain programs of study. Some institutions use the scores only if minimum GPA or class rank is not met by the student.

● College Applications

The Department of Education reports that the number of students applying to college has increased 20% in the past decade and expects this trend to continue. This should present colleges and universities with an ample number of students for admission. While the case at some schools, others are experiencing a decline in applications and in enrollments. It is not clear if there is any one trend or reason.

Some schools in rural or suburban locations are receiving fewer applications, and less than expected 1 st year students enrolling. Yet, others have more than anticipated. Cost doesn’t seem to a deciding factor. Admission Officers are faced with trying to project the interests and expectations of 12 th grade students. Colleges adjust their recruiting programs to avoid wide swings in enrollments which can result in more or less emphasis on wait-lists, early decision applications, financial aid, housing and other factors.

The reality is that the traditional admission process and decision criteria at any given institution may not be quite different from one year to another.

Paying for College

● College Costs

Research indicates the average annual cost at a 4-year public institution to be $14,059 for state residents, and $20,129 for out-of-state students. A 4-year private college or university is $28,763. The average annual cost at a group of very expensive, very competitive, very popular schools is $39,115.

These costs reflect a typical double room and meal plan, and estimated personal expenses including books and supplies. Optional fees like student loan fees or medical insurance are not included.

Although the amount of government and school-based grants and scholarships have grown, the cost of a college education has increased at a rate more than double the rate of inflation for the past two decades. Schools have increased their grants, both need and merit based. However, the percentage of merit aid shows a greater increase as schools have used this type of aid as an enrollment tool. A survey by The Chronicle of Higher Education confirms this trend. It reports that 34% of respondents indicated that their student received a merit grant from the college, while 19% received need-based aid.

● How People Pay

Interestingly, in 1992, the federal government revised the financial needs criteria, raised the borrowing limits and capped interest rates for federal sponsored loans. These factors, along with the pressure of increasing education costs, apparently created an environment which encouraged the family to be more willing to assume more debt. A renewed interest in the education loan market by private lenders followed.

Borrowing is an accepted fact for affording college. The discussion among the government and college officials seems to center more on how to raise the borrowing levels than on controlling college costs.

How do families meet their education expense obligations today? Basically, they rely on a combination of three resources, grants and scholarships, current income, investments and savings and loans, both for the student and for the parents. This increased reliance on borrowing has to a great degree redefined the strategies of planning ahead.

The formula (Federal Methodology) used to determine the amount that the family could reasonably be expected to pay out of pocket for college places more importance on income of the parents and the income and savings of the student. The net value of the family's residence is no longer a factor. The assets (savings, investments) of the parents carry relatively little weight.

In reality, it is in the parents' best interests to save ahead to reduce the impact of future debt. In today's financial aid environment, since most find it necessary to borrow for college, the process actually encourages the parents to save as much as possible and to start as early as possible.

Some Interesting Facts

• The Oregon Student Public Interest Group reported that students spent an average of $898 on textbooks for the 2003-2004 academic year. In 1997, textbooks cost an average of $642, a 40% increase.

• 91% of first year students enrolled at their 1 st or 2 nd college choices according to the UCLA Higher Education Research Institute Statistical Profile of Freshman.
• One college expense that hasn't increased at the same swift rate of tuition is the application fee. This fact, aggressive marketing by schools for students, more selective interests on students' part are possibly reasons why students apply to many more schools than in the past. Another may be the convenience of application methods like the Common Application or on-line applications at a college's Internet site. Over 241schools offer the Common Application which can be viewed at (www.commonapp.org).
• The college search process, from start to applications, can cost between $500-$1,500 for the student who applies to a half dozen schools. This includes visits to some of the schools of interest. Some up-front research may assist in reducing these costs.
• Students are applying to more schools. Over three-quarters of the school responding to the National Association for College Admission Counseling Survey report an increase in applications over the prior year. 74% of students sent four or more applications.
• Career preferences of high school students surveyed by The National Research Center for College & University Admissions shows the highest interest in medical, law, computer sciences and business careers. However, a significant number of students were undecided as well.
• Is it important that the student have a career plan when entering college? No. Research by the Department of Education shows that 37% of students earning a Bachelors degree changed their major at least once. Many graduates of Ivy League schools are very successful in business. Yet, only two offer a business major. Neither do Stanford nor Duke. Although, Brown University does not have a formal “pre-law” program, 10% of Brown alumni are lawyers. A liberal arts education is designed to allow a student to explore and then decide.
• All colleges and universities are required by federal law to report and maintain public records of campus crimes. Be sure to ask schools which interest the student their about their latest campus crime statistics and their prevention programs. You can review a particular school latest reporting at the Department of Education website at www.ope.ed.gov/security.
• A study by the National Association of College Admission Counselors, Trends in College Admission, indicates that high school grade average, college admission tests (SAT, ACT) and class rank are considered the most important factors in the admissions decision. Demonstrated interest by the student has gained in relative importance as a “tie-breaker”.
• The concept of airline frequent flyer programs has been applied to help families save for college. Now parents and grandparents can open a college savings account for a student and receive credit for a percentage of credit card purchases made at a wide range of retail, food, service providers and other companies. These companies include UPromise, BabyMint, edexpress and Sage Scholars.
• Over three-quarters of schools indicate having a formal policy regarding the evaluation of applications from home schooled students.
• The College Board reports a 20% increase in schools using wait lists as part of their admission policies in the past five years. Many schools use this method to manage the growth in applications and the trend of students to apply to more colleges than before.
• Student loans have become such an accepted element of financial aid that most schools include the fees for the federal student loans as part of their "cost of attendance" calculation. All the more reason to shop around for lenders of education loans. Many schools publish a list of "preferred lenders" for parents and students to use. These lenders are preferred by the school for administrative ease. Schools encourage borrowers to use this list for their processing ease.

• However, there may be other lenders that may offer the same loans, but with more attractive terms. Other sources may also offer a greater variety of loan or repayment options. It may be worthwhile to shop around. It's not uncommon for the school to discourage this shopping, but insist on it.

• Is college worth it? The U.S. Census Bureau estimates that a bachelors degree is worth nearly $1 million more than a high school diploma over an adult's working life.