The Price is Right!
The Price is Right is the longest-running game show on television, starting its 49th season last fall. People bid their way to prizes but ONLY if they did not go over the retail price. You have to know what stuff costs and you have to skillfully bid to win. Based on what I’m seeing right now in higher education, start dusting off your negotiation skills. Seriously! Here is a 5 step process that may increase grants and scholarships and decrease any loans for your student. While private colleges and universities have the most flexibility, it is worth asking EVERYONE. Nothing will change unless you try.
This past fall enrollment was a disaster. Colleges and universities lost millions in room & board and tuition revenue. They need more students and those critical college dollars. The only time you have any negotiating power is before you commit your student and your wallet to their program. Here’s my suggested process.
STEP #1 -
Set up a spreadsheet or a comparison sheet that shows you what each college is offering. Here’s WHY you need to do this. Offer letters are intentionally vague. By separating out the sections and their numbers, you can see what one school is offering over the other. Start with a landscape view and create the following columns:
Name of School
List Price ( Tuition + room & board + fees )
Scholarships By Category- Academic, Merit, Sports, Good Citizen, etc. '
Type of Scholarships? Private, one year, four-year renewable, etc. It will vary by each school!
Grants
Loans- name, type, interest rate, and amount of loan
The final amount you have to pay out of pocket the first year
Big space at the end for notes about each offer
STEP#2
Translate those offer letters on to your spreadsheet. If something doesn’t make sense, CALL the FINANCIAL AID office at the school for an explanation. It is okay not to understand it all at first glance. Happens to me often. It is NOT okay not to ask. In fact, I would call EVERY school for a walkthrough of its’ letter. Ask if the scholarships are renewable? Ask what GPA must be maintained to keep said scholarship? Are the grants one year or renewable for four years? Get them sharing information about all your numbers. Above all, make a note of WHO you talked to and WHEN. That way if there is any conflict about the information you were told, you have your detailed notes.
STEP #3
Study it all. If numbers don’t make sense to you, get a trusted friend to help you see which school may be giving you the best deal. Sadly, the best financial offer is often NOT from the school your student wishes to attend. This is why you need to negotiate.
STEP#4
Determine the gap in the money you’d have to pay between the school your student wants to attend and the one with the best offer. Let’s say it is $5,000. First of all, I’d test the waters about your student’s commitment to attend the higher cost school. Are they willing to work in the summers to earn $2,000 of that figure? In 10 weeks of summer work, they’d need to save $200/week. Are they willing to commit to working for their first choice? If they are, go on to the next step. If not, have a conversation with your student about the cost of their first choice. They could change their mind.
STEP#5
Make the Call- Below is a general pattern to follow in that call- You are calling the Financial Aid office of the school where your student wants to attend, but they have not given you as much financial as you want/need.
Identify yourself & your student; Confirm identifying information. Thank them for their financial offer.
Explain you’ve reviewed the numbers and there is a gap of XXXX dollars between them and your student’s 2nd choice school. And, your student REALLY wants to attend their school.
Ask for a review of the offer- might there be some work-study money? Could your student qualify for another scholarship option?
Thank them kindly for reviewing your case and ask them to get back to you by a certain date, as deadlines are coming up at competing schools. Of course, you are looking forward to hearing from them soon.
Note WHO you talked to, what date they agreed to respond by on your spreadsheet.
See instruction below.
REPEAT to all the schools you are seriously considering. Yes- negotiate EVERYWHERE! You should ask EVERYONE for more scholarship money. In today’s desperate environment, YOU hold the money ACE. Don’t just accept their first offer, ask for more. You might be surprised!
SUPER SECRET PLAY- EVEN if you get what you ask for, try not to send a deposit right now. At many schools, money mysteriously appears about 2 weeks before the deadline of May 1st. If you commit in February, they won’t call you. They will only call the ones they want but have not made a deposit with a higher offer. Keep that in mind.
FINAL THOUGHT: In a social media feed this week, I saw an article we should all keep in mind. It’s NOT attending the highest ranked school that makes a student successful; it’s the student’s ownership & involvement in their complete college experience. Studies support this fact- student engagement in their higher education will predict their engagement and future success in life, too. This is that illusive idea called the “right fit.” Attending one school over another based solely on perceived prestige is not a formula for success.
Next week- a peek at those “private” scholarships we hear about all the time. You know, those thousands of orphaned dollars sitting around out there? The truth comes out! This next blog could save you a lot of heartaches, sweat, and even tears. Don’t miss it!
Until Next Time,
All My Best,
Bonnie Burkett
