Monthly Archives: September 2015

Rules of Thumb on College Affordability

Application season is upon us, so before your senior gets too enamored of Very Expensive U, you need to get real about what you can afford. Here are some rules of thumb:

Parents can afford to spend no more than 10% of their income on paying for college out of pocket. No, you cannot afford the 47% that the FAFSA expects. Picture a family with household income of Continue reading Rules of Thumb on College Affordability

2015: The Biggest Year Ever for the FAFSA

This week, President Obama signed an executive order that will dramatically simplify the financial aid process for many families. Beginning next October, for the 2017-2018 school year, families will be able to file the FAFSA using two years’ prior (“prior-prior year”) data. That means that Continue reading 2015: The Biggest Year Ever for the FAFSA

Student Bank Accounts

One easy way to make college cost more than it needs to is to choose the wrong bank account and pay exorbitant fees as a result. Many schools partner with a financial institution to handle excess financial aid dollars (what’s left to pay for other educational costs such as room and board or books, after the school deducts tuition and fees) and encourage students to open accounts at these institutions. Continue reading Student Bank Accounts

Tuition Discounts Increase at Private Colleges

Good news: according to the National Association of College and University Business Officers, tuition discounting hit an all-time high in 2014, with many believing it is a trend likely to continue. A survey of 411 private, non-profit institutions showed that the average discount rate* for first-time, full-time freshmen hit 48% in the 2014-2015 school year, and was over 41% for all undergraduates. The survey also showed Continue reading Tuition Discounts Increase at Private Colleges