Shopping for Cars & Colleges- How NOT to get fleeced.
What does shopping for a car have to do with shopping for higher education options? Maybe more than we think. Most people don’t shop for cars very often. Same with colleges. Cars are a high ticket item. So is your university education. Generally, there is no training or class you can take on buying a car correctly. Same with your higher education plan. We can get caught up in the beautiful, shiny car experience, forgetting what the beautiful monthly payment will feel like later. And, the car payment mercifully stops around 5-7 years; your student loans drag on over the decades.
No wonder we have 31 million in college loan debt with no degree. Our national four-year graduation rate is barely above 41%, and the average student loan debt is hovering at $32,000. In some cases, it might have been a better choice to have bought the car instead of the college experience that didn’t pan out.
We get unnerved when it’s time to college shop. Things have changed since back when- the costs, the processes, and the product. What can you do to gain a foothold and path in this process? Try these ideas.
1) Acknowledge things are very different, but, you CAN catch up. It’s fine that you don’t know how to guide your student in today’s college world. The first step is to know you don’t know. The second part is to partner with them in the learning and the doing. That will take some conversations and agreement on what you both need to do. Your student needs to identify their gifts and interests, research, and identify possible schools of interest. You need to define your college budget and help them crunch those numbers. Together, you are better.
2) Preparation BEFORE you buy. The more you understand, the better your decisions will be. Teach your student to read the fine print. Recently, I met a nice Senior who might consider a career in commercial art. He has not taken any art classes in high school, so he doesn’t have much in the way of an art portfolio. After some light research, I discovered one school he wanted to consider required a portfolio review before being admitted, while another he like deferred a portfolio review until his junior year when the major was declared. This type of thing can have an impact on your decision processes. Getting into the details keeps the surprises down. Bonus Idea: Don’t be afraid to get help from those who work in the field of interest. A Shadow Day, some short-term interning could all bring more focus to your choices.
3) The application is critically important- be honest, but share your best. Everyone HATES doing applications of ANY kind. But, for think for just a moment; what if you had to READ and DECIDE who gets in? Popular schools in our state have a 10:1, 15:1, or ever 20:1 acceptance ratio. To break through the crowd, you have to feature something unique about yourself or your hobbies and interests.
4) Before you sign up, kick the tires- on both the college AND your student. You know your student will not do their best if it is not a good fit. I fell in love with an all-girls school in a metropolitan environment after I did a “visitation weekend.” My folks weren’t thrilled When the offer letter came, the cost was significantly higher than my next choice. My parents told me I would have to earn the difference every summer if I wanted to go there. I did the math. I couldn’t make it work. I was crushed. At least, until about 2 weeks into my second choice school- it WAS the right fit after all.
5) Don’t forget the power of “no.” In the end, it’s your wallet, your parent plus loans, and your student loans. If things don’t line up, if someone isn’t fully committed, look for the nearest off-ramp and take it. That is a better decision than borrowing money year after year, hoping a spark will ignite. “No” can be the best decision for everyone. It can give you space to work up a plan B.
One of the many things everyone hates about buying a car is the fear of making a bad deal. Or getting a lemon. Or paying too much. If you need help with creating a financially savvy path towards higher education costs, please check out my book on Amazon, ENOUGH! The College Cost Crisis.
What if we treated the whole college process more like a space launch instead of car buying? Every time NASA launches a rocket, there is a countdown. During that countdown, there is a massive checklist of things that must be right and ready to “go.”. Several times in a countdown, each department must tell Mission Control that their area is a “go”. If not, the launch is put on hold until the issue is resolved. A few times, the launch is scrubbed. Why? Because it can put lives in danger.
Remember the NASA process. It protects their most precious cargo- the astronauts. Parents, be Mission Control for your student. Protect them now, and protect their financial future.
Next week, since some of you jumped on the FAFSA process already, let’s talk Expected Family Contribution numbers and how to read your results. It may not mean what you think it does.
Until next time,
All my best,
Bonnie
