An Aesop Tale of Truth
When I was young, there was a book around the house called Aesop’s Fables. It was a beautifully illustrated collection of stories designed to teach you a life lesson. The simpler stories were in the front, and the complex ones in the back. It was meant to offer life lessons throughout your childhood.
Today we share a family’s true story that qualifies as a College Cost Aesop’s Fable.
Once Upon a Time, there was a very busy mother of three children. She worked hard to provide for her family, even taking on side hustles to make ends meet. Her oldest son, a senior in high school, wanted to go to college and declared he did not want to go into debt to do so. He was a solid B student in high school honors classes.
Because of her super busy schedule, she left it to him to apply and get into college. A friend, Jim, heard her story and tried to offer some ideas and tips during the student’s senior year. She listened to his thoughts & thanked him for his ideas and concerns. But she couldn’t find the time to learn about this process herself.
All through his senior year, her son declared he was going to community college to save money. But, right after his high school graduation, he decided to apply to the regional university. When Jim asked about their financial aid package, his mother said the school was sending her son all the details and he would get it through his “student portal.”
In early July, she shared a stunner with Jim. It seems the University sent her an email, saying they needed to put her on a payment plan and to please make the first payment. How much? $800 per month. All she knew was there was no way she had an extra $800 a month for this.
Jim listened, then asked if she knew about Parent Plus loans. She had no clue. He found a detailed article online that explained the process and gave her a copy to take to the school. Because of the large amount she needed to borrow, he suggested the mother NOT borrow more than one semester at a time. He suggested she make her son provide mid-terms and final grades every semester until he established pattern of good grades towards a degree.
What are some important lessons to learn here?
Don’t leave this process up to an 18-year-old. I don’t care how good they are, they have no idea what is going on. The colleges know that too. Under the guise of the “privacy act”, they dole out information until it pushes parents into a no-win corner. I suspect it is far from accidental.
Answer: Be involved. Learn the process. Read the book, ENOUGH! The College Cost Crisis.
Learn the costs ahead of time, not 3 weeks before the first payment is due. Financial Aid has not come close to covering college costs for over 25 years. Most families have a size 14 need and their financial aid is only a size 8. That GAP requiring loans is widening. A strong student might get 1/3 of their costs covered in academic scholarships at the most. Generally, student financial needs are covered by financial aid by another 1/3 to 1/2. The rest is expected from family resources.
Answer: EXPECT to pay. And, expect to pay more than you think you should, no matter WHAT your circumstances.
Set boundaries. No good grades, no more borrowing. Why would any parent borrow money to keep a student in school who is not committed to learning and earning the degree? You can offer grace for ONE semester of bad grades, but not a 2nd. The price is too high.
Answer: College costs too much to be a 4-6 year experiment with no rules. If you commit your money, borrowed or spent, the student must prove their commitment too. Since it’s a partnership, both sides must do the work.
And, here’s the rest of the story. Jim checked in on his friend, and she is waiting for an emergency loan from the University. This will allow her student to start college in the next few days.
But- an update! After a meeting early this week about an emergency loan, good things happened. The University “found” more money, and reduced their loan packages significantly. This sings to one of my core statements. Only people can solve problems, not matrixes or computers, or algorithms.
People solve problems. Ask for help. You might get some.
Next week- a surprise blog! I know you can’t wait!
Until Next Time,
All My Best,
Bonnie
l
