Good news for the college-boundSubmitted by Financial Planning Solutions, LLC on October 18th, 2018
Everyone seems to know that the cost of college has been spiraling out of control for years. But that has become a myth as the real cost of college is actually leveling off.
According to the annual pricing-trends report published by the College Board, the list price for tuition continues to rise but the net cost that students actually pay has remained relatively constant as schools are providing more grants and scholarships.
Years ago tuition increases of 6-8% per year were common. However, since 2011 published tuition has continued to rise while the actual amount paid or the Net Price is basically unchanged.
This is causing confusion for many students and their parents because they believe that many colleges are continuing to raise prices, causing them to feel that college is moving further and further out of reach.
As if students were not under enough pressure, it is also causing parents to tell their kids how critically important it is to do well, take lots of AP courses, participate in many extracurricular activities or anything else in hopes of some kind of edge when admissions counselors are reviewing student applications.
This pressure may be misplaced as there are many fine colleges where students can grow and excel at something they love without attending one of the top 10 colleges. (There are many ways to rank colleges; what is most important is how well the college fits with your son or daughter.)
Now, I’m not saying your college-bound student has nothing to worry about but the situation is improving. The shrinking applicant pool is causing many schools to offer more merit or institutional aid in order to fill all of their seats every year. This trend is expected to continue for the foreseeable future.
As you go through the college selection process be sure to include a few good schools with a low yield ratio as they are more likely to offer an attractive aid package.
Questions about how to find low yield colleges? Give us a call; we’re here to help.
Source: Trends in College Pricing 2018, College Board, https://trends.collegeboard.org/college-pricing
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