Campus Bound

[#1]

You are not alone if the economic downturn is causing you to fret about how you will pay for your child’s college education and still retire at a reasonable age.  Never before have people’s savings lost value so much from day to day as with this volatile stock market.   Depending on how close your child is to starting college, the credit crunch and presidential politics will likely have a direct impact on you.

So what are you to do?

I thought that this article in the Wall Street Journal was worth a read.  It comments on both long and short term considerations and recommendations. 

One point that the article makes is to “apply to many schools.”  I wouldn’t stop there—I would extend the message to apply to the ‘right’ schools.  Find schools that fit your academic and non-academic needs that are also more likely to provide need or merit-based grants and scholarships.  This could save you tens of thousands of dollars on college over the course of 4 years. 

In other words, if cost is a concern, become a picky shopper.  Find value, look for discounts, and determine what is important to you as well as what your financial limits are.

When you bought your home you probably didn’t select merely on lowest price, reputation of the high school, or size of the master bedroom.  Most people look at the overall value compared to what they can reasonably afford and are willing to finance.   It’s not a bargain to pick a college because of a low price if the student is likely to drop out or transfer; nor does it make sense to select a highly ranked college if the price isn’t right for you.  Considering the rising cost of college and the murky forecast on the economy, you should shop the same way for a college that you do for other large investments.