PREPARING YOUR CHILD FOR COLLEGE
A Resource Book for Parents
A NOTE TO PARENTS
It's never too early to think about college -- about the
benefits of a college education and about ways to put college
within reach academically and financially. Throughout their
school years, students make academic and other decisions that
affect whether they will be eligible to enter college.
You -- working with others -- can help your child make these
decisions wisely.
This resource book is designed to help you with that
process. It will help you work with your child and with your
child's teachers and guidance counselors, to ensure that he or
she has the option of going to college. It will help your child
to prepare academically for the rigors of college, and it will
help you to plan financially for the costs of a college
education. A good academic record on your child's part and
sound financial planning on your part will help ensure a menu
of opportunities when the time comes to decide about college.
Although this book was written primarily as a long-term
planning guide for parents, guidance counselors and teachers
will also find it useful and informative.
This book will help you to
-- Set high expectations for your child's future;
-- Know what college options are available;
-- Plan your finances with college in mind; and
-- Know what financial assistance your child may be eligible
to receive.
To ensure that today's students will be able to live,
work, and compete in the 21st century, the U.S. Department of
Education and the Nation's governors set a direction for the
Nation by establishing six national education goals. In brief,
the goals state that by the year 2000
* All children in America will start school ready to learn;
* The high school graduation rate will improve to at least
90 percent;
* All children will be competent in at least English,
mathematics, science, history, and geography;
* American students will be first in the world in science
and mathematics;
* Adult Americans will be literate and have the skills
necessary to compete in a world economy;
* And every school in America will be free of drugs and
violence.
As we turn from a "Nation at Risk" to a "Nation on the
Move" we must assure that our children and youth are prepared
to meet the challenge of the world economy, the obligation of
civic responsibility, and the responsibility of attaining the
national education goals.
Attaining the national education goals depends greatly on
the efforts of the entire community, but especially you, the
parents of our children. In helping your child succeed in high
school and aim for college, you're also helping our Nation
produce informed citizens and a competitive work force for the
next decade and beyond.
Richard W. Riley
U.S. Secretary of Education
PREPARING YOUR CHILD FOR COLLEGE
I. General Questions About College
Why attend college?
What types of colleges exist?
What kinds of jobs are available to college graduates?
II. Preparing for College
What can my child do to prepare academically for college?
What can my child do outside the classroom to prepare for
college?
III. Choosing a College
How can my child go about choosing a college?
IV. Financing a College Education
How much does a college education cost?
How can I afford to send my child to college?
What are the most common sources of financial aid?
Is my child eligible for financial aid? If so, how much ?
Are there other ways to keep the cost of college down?
V. Long-Range Planning
How do I set up a long-range plan?
VI. Important Terms
What terms do I need to understand?
VII. Other Sources of Information
Where can I get more information on the topics discussed
in this handbook?
Exercises and Checklists for You and Your Child
Help Your Child Think About a Career
Course Planner for Parent and Student
College Inquiries
College Preparation Checklist for Students
Financial Preparation Checklist for Parents
Charts
Chart 1: Examples of Jobs Requiring College Preparation
Chart 2: High School Courses Recommended for a Four-Year
College
Chart 3: Questions To Ask Guidance Counselors
Chart 4: Distribution of College Students by the Amount of
Tuition and Fees Charged
Chart 5: Typical College
Chart 6: Average Tuition and Fees By Type of College,
School Year 1991-1992
Chart 7: Amount You Would Need To Save To Have $10,000
Available When Your Child Begins College
Chart 8: Examples of Savings Instruments and Investments
Chart 9: How Much Need-Based Financial Aid Can My Child
Get?
Chart 10: Military Postsecondary Education Opportunities
Why attend college?
A college degree can provide your child with many
opportunities in life. A college education can mean:
Greater Knowledge
A college education will increase your child's ability to
understand developments in science and in society, to think
abstractly and critically, to express thoughts clearly in
speech and in writing, and to make wise decisions. These skills
are useful both on and off the job.
Greater Potential
A college education can help increase your child's
understanding of the community, the Nation, and the world--as
he or she explores interests, discovers new areas of knowledge,
considers lifelong goals, and becomes a responsible citizen.
More Job Opportunities
The world is changing rapidly. Many jobs rely on new
technology and already require more brain power than muscle
power. In your child's working life, more and more jobs will
require education beyond high school. With a college education,
your child will have more jobs from which to choose.
More Money
A person who attends college generally earns more than a
person who does not.
For example, in 1989, a person with a college degree from
a four-year college earned approximately $10,000 more in that
year than a person who did not go to college. With a college
education, your child can earn higher pay.
Some of these benefits of college may not be obvious to
your child. Even though he or she has to make the final
decision to attend college, you can help in the decision-making
process by learning about all aspects of college yourself and
sharing what you learn with your child.
What types of colleges* exist?
* Throughout this document, the term "college" is used to
refer to all collegiate institutions--both colleges and
universities.
More than half of all recent high school graduates in the
United States have had some type of postsecondary education. In
many other countries, a smaller percentage of students go on
for more schooling after high school. One reason so many U.S.
students seek postsecondary education is that American students
have a wide choice of colleges to consider. For this reason,
your child is likely to find a college well-suited to his or
her needs.
There are two basic types of colleges that offer academic
programs:
Two-Year Colleges
These schools offer two-year programs leading to a
certificate, an associate of arts (A.A.) degree, an associate
of science (A.S.) degree, or an associate of applied science
(A.A.S.) degree.
Four-Year Colleges and Universities
These schools usually offer a bachelor of arts (B.A.) or
bachelor of science (B.S.) degree. Some also offer graduate and
professional degrees.
Two-Year Colleges
For students who want a practical education aimed at a
specific career in such areas as bookkeeping, dental hygiene,
etc., a two-year program is probably the answer. In many cases,
two-year degrees can be transferred to four-year schools and
credited toward a B.A. or B.S. degree. Two-year programs vary
from school to school, but, in general, are offered by:
Junior Colleges: These are generally private institutions,
some of which are residential and attended by students who
may come from other parts of the country; and
Community Colleges: These are public institutions, mostly
serving people from nearby communities. Public
institutions are supported by state and local revenues.
Many junior and community colleges offer
technical/vocational training, as well as academic courses.
Many offer such programs in cooperation with local businesses,
industry, public service agencies, or other organizations.
Two-year colleges often operate under an "open admissions"
policy, which can vary from school to school. At some
institutions, "open admissions" means that anyone who has a
high school diploma or GED certificate can enroll. At other
schools, anyone over 18 years of age can enroll or, in some
cases, anyone deemed able to benefit from the programs at the
schools can enroll.
Application requirements at some two-year colleges may
include a high school transcript--a list of all the courses
your child took and grades earned in four years of high
school--and college entrance examination scores as well. Some
schools have programs that allow "open admissions," while other
programs in the same school--particularly in scientific or
technical subjects--may have further admission requirements.
Since requirements vary widely, it is important to check into
schools and programs individually.
Four-Year Colleges and Universities
Students who wish to pursue a general academic program
usually choose a four-year college or university. Such a
program lays the foundation for more advanced studies and
professional work. Four-year colleges and universities offer
bachelor's degrees (the B.A. and B.S.)in most areas in the arts
and sciences, such as English literature, foreign languages,
history, economics, political science, biology, zoology,
chemistry, and in many other fields.
Here are the main differences between four-year colleges
and universities:
Four-Year Colleges: These are postsecondary schools that
provide four-year educational programs in the arts and
sciences. These colleges confer bachelor"s degrees.
Universities: These are postsecondary schools that include
a college of arts and/or sciences, one or more programs of
graduate studies, and one or more professional schools.
Universities confer bachelor's degrees and graduate and
professional degrees.
When a student earns a bachelor's degree it means that he
or she has passed examinations in a broad range of courses and
has studied one or two subject areas in greater depth. (These
one or two subject areas are called a student's "major" area(s)
of study or area(s) of "concentration.") A bachelor's degree is
usually required before a student can begin studying for a
graduate degree. A graduate degree is usually earned through
two or more years of advanced studies beyond four years of
college. This might be a master's or a doctoral degree in a
particular field or a specialized degree required in certain
professions such as law, social work, architecture, or
medicine.
What kinds of jobs are available to college graduates?
Certificates and degrees earned by graduates of two- and
four-year colleges or universities usually lead to different
kinds of professional opportunities. Many professions require
graduate degrees beyond the traditional four-year degree, such
as a medical degree or a law degree. For example:
A course of study in bookkeeping at a community college
generally prepares a student for a Job as a bookkeeper.
A four-year degree in economics may prepare a student for
any one of several Jobs in a bank or a business.
A four-year degree in English may serve as background for
getting teacher certification in the subject or for being
an editor with a magazine.
In Chart 1 below there is a partial listing of different
occupations and the educational background generally required
for each. Some people who go on to acquire Jobs in the
four-year-college column obtain a graduate degree or some
graduate education, but many of these Jobs can be filled by
people who do not have more than a four-year college education.
For more information on the educational requirements of specific
jobs, contact a guidance counselor or check the Occupational
Outlook Handbook in your library. (See the last section of this
handbook for information on this book arid other publications
that discuss jobs.)
CHART I
Examples of Jobs Requiring College Preparation
Two-Year College
(Associate's Degree)
Electrician
Drafter
Dental Hygienist
Emergency Medical Technician
Computer Service Technician
Bookkeeper
Commercial Artist
Film Technician
Medical Illustrator
Four-Year College
(Bachelor's Degree)
Accountant
Teacher
Registered Nurse
Engineer
Journalist
Diplomat
Insurance Agent
More Than Four
Years of College
(Various Graduate
Degrees Required)
Lawyer
Doctor
Architect
Scientist
University Professor
Economist
Psychologist
Sociologist
Dentist
EXERCISE
Help Your Child Think About a Career
Step 1:
Using the form on the next page, sit down with your child
and make a list of jobs that sound interesting. It may help to
first think about friends or people you've read about or have
seen on television who have interesting jobs. List those jobs
in the left-hand column. If your child cannot think of
interesting jobs, have him or her list subject areas of
interest. Then try to help your child identify jobs in those
subject areas. Depending on the job, there may be courses in
middle school or high school that will give your child a
preview of the type of knowledge that is needed for the
particular job. In the right-hand "Education" column, write
down the level of education required for the job and any high
school or college courses that may help your child prepare for
such a career.
Step 2:
Take the form to your local library and, with the help of
a reference librarian, locate books on some of the careers your
child has selected. Libraries usually have directories that
list career requirements. It is not a problem if your child
does not know what career path he/she wants to follow; his or
her focus during these years should be on doing well in school.
(SEE FORM ON NEXT PAGE.)
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What can my child do to prepare academically for college?
To prepare for college, there is no substitute for your
child getting a solid academic education. This means your child
should take challenging courses in academic subjects and
maintain good grades in high school. Your child's transcript
will be an important part of his or her college application.
A college education builds on the knowledge and skills
acquired in earlier years. It is best for your child to start
planning a high school course schedule early, in the seventh or
eighth grade. Students who don't think ahead may have
difficulty completing all the required or recommended courses
that will help them qualify for college.
Most selective colleges (those with the highest admissions
requirements) prefer to admit students who have taken courses
in certain subject areas. For example, many colleges prefer
that high school students take algebra, geometry, or some other
type of specialized math, rather than general math. Some
colleges prefer three or four years of a foreign language. Your
child's guidance counselor can help your child determine the
high school courses required or preferred by different types of
colleges. If your child is interested in specific colleges, he
or she can contact those schools and ask about their admissions
requirements.
Your child should take courses in at least these core
areas:
-- English
-- mathematics
-- science
-- history and geography
A foreign language and computer science are also highly
recommended.
Chart 2 lists the high school courses that many higher
education associations and guidance counselors recommend for a
college-bound student. These courses are especially recommended
to students who want to attend a four-year college. Even if
your child is interested in attending a two-year college, he or
she should take most of these courses since they provide the
preparation necessary for all kinds of postsecondary education.
If your child is interested in pursuing a vocational
program in a two-year college, he or she may want to supplement
or substitute some of the courses listed in the chart with some
vocational or technical courses in his or her field of
interest. Your child should take at least the suggested courses
in the core areas of English, math, science, history, and
geography.
Traditional English courses such as American and English
literature will help students improve their writing skills,
reading comprehension, and vocabulary. History and geography
will help your child better understand our society as well as
societies around the world.
Mathematical and scientific concepts and skills learned in
math classes are used in many disciplines outside of these
courses. A recent study showed that students who take algebra
and geometry in high school are much more likely to go on to
college than students who do not. Algebra and geometry are also
essential preparation for the college entrance examinations--the
SAT (Scholastic Aptitude Test) or the ACT Assessment.
These tests measure a student's aptitude in mathematical
and verbal comprehension and problem solving. Students applying
to colleges in the East and West usually take the SAT exam.
Students applying to schools in the South and Midwest often
take the ACT. (However, students should check the admission
requirements at each school to which they are applying.)
Usually, the tests are offered in the Junior and senior years
of high school and can be taken more than once if a student
wishes to try to improve his or her score. Students can get
books at libraries or bookstores to help them to prepare for
all of the tests. Some of these books are listed at the back of
this resource book. In addition, some private organizations and
companies offer courses that help students prepare for these
exams.
CHART 2
High School Courses Recommended for a Four-Year College
Although academic requirements differ across colleges, the
admissions requirements listed below are typical of four-year
colleges. The specific classes listed here are examples of the
types of courses students can take.
English -- 4 years
Types of classes:
composition
American literature
English literature
World literature
Laboratory Science -- 2 to 3 years
Types of classes:
biology
earth science
chemistry
physics
Mathematics -- 3 to 4 years
Types of classes:
algebra I
algebra II
geometry
trigonometry
precalculus
calculus
Foreign Language -- 2 to 3 years
Types of classes:
French
German
Spanish
Latin
Russian
Japanese
History & Geography -- 2 to 3 years
Types of classes:
geography
U.S. history
U.S. government
world history
world cultures
Visual & Performing Arts -- 1 year
Types of classes:
art
dance
drama
music
Appropriate Electives -- 1 to 3 years
Types of classes:
economics
psychology
statistics
computer science
communications
Many schools offer the Preliminary Scholastic Aptitude
Test/National Merit Scholarship Qualifying Test (PSAT/NMSQT) to
their students. This is a practice test that helps students
prepare for the Scholastic Aptitude Test (SAT). The PSAT is
usually administered to tenth or eleventh grade students. A
student who does very well on this test and who meets many
other academic performance criteria may qualify for the
National Merit Scholarship Program. You and your child can find
out more about the PSAT/NMSQT and the National Merit
Scholarship Program by talking to your child's guidance
counselor or by calling or writing to the number or address
provided in the back of this handbook.
Some colleges also require that an applicant take one or
more Achievement Tests in major areas of study. It is a good
idea for a student to consult a guidance counselor about this
early in high school; often the best time to take an
Achievement Test is right after the student has taken a course
in that subject. For example, many students take the Biology
Achievement Test right after they have completed a course in
biology. This could mean that your child would take his or her
first Achievement Test as a freshman or sophomore in high
school.
At the back of this handbook, in the section that lists
places where you can get additional information, you will find
the address and phone number where you can write or call for
more information about the SAT and the Achievement Tests. You
will also find the address and phone number for the
organization that administers the ACT.
Knowing what will be required for college is important;
by taking the right courses and examinations from the beginning
of high school, your child may avoid admission problems later
on. In addition, students who do not prepare well enough
academically in high school, if admitted to college, may be
required to take remedial courses. Most colleges do not offer
credit for these courses, and students may have to pay for
these extra courses and spend extra time in college to earn
their degrees. Chart 3 lists some questions that you or your
child may want to ask your child's guidance counselor.
CHART 3
Questions To Ask Guidance Counselors
* What basic academic courses do they recommend for students
who want to go to college?
* How many years of each academic subject does the high
school require for graduation?
* What elective courses do they recommend for college-bound
students?
* How does a student go about completing recommended courses
before graduating from high school?
* Can students who are considering college get special help
or tutoring?
* What activities can students do at home and over the
summers to strengthen their preparation for college?
* How much homework is expected of students preparing for
college?
* What kinds of high school grades do different colleges
require?
Course Planner for Parent and Student
This exercise will give you and your child a chance to
look ahead and choose future courses, but be aware that some
courses must be taken in sequence. On the form below, list your
child's current courses or courses he or she will take this
year. Then list courses that he or she will take during each
year of high school. If you are not sure what courses your
child should take, you should make an appointment with your
child's guidance counselor and get some advice.
[Form Omitted]
[Form Omitted]
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What can my child do outside the classroom to prepare
for college?
Interpersonal and leadership skills, interests and goals
are all important for college preparation. independent reading
and study, extracurricular activities, and work experience will
all help your child develop his or her skills, interests, and
goals.
Independent Reading and Study
Independent reading and study will help your child to
prepare academically for college. This is a good way to develop
interests, expand knowledge, and improve vocabulary and reading
comprehension skills needed for college and the SAT or ACT.
Encourage your child to read all kinds of books for
fun--fiction and non-fiction. The school library and the local
public library are good sources of books, magazines, and
newspapers.
Extracurricular Activities
Many school, community, and religious organizations enable
high school students to explore their interests and talents by
providing activities outside the classroom. Colleges are often
interested in a student's extracurricular activities such as
school clubs, the student newspaper, athletics, musical
activities, arts, drama, and volunteer work, especially if a
student has excelled in one or more of these areas.
Work Experience
Work experience--paid or volunteer--can teach students
discipline, responsibility, reliability, teamwork, and other
skills. Some students tutor elementary school children or
fellow students in a subject they have mastered themselves.
Others help the disadvantaged or volunteer in hospitals. Many
colleges are interested in knowing about this type of
experience.
A summer job is a good way to gain experience and earn
money for college as well. If your child works during the
school year, he or she should not work so many hours that the
job interferes with school work.
Creating a Good Place To Study
Your child needs a quiet and comfortable place to study.
Here are a few things that you can do:
(1) Help him or her find a quiet place with some privacy.
(2) Set up a desk or large table with good light and place
reference books such as a dictionary on the desk or
nearby.
(3) Make sure your child studies there on a regular basis.
How can my child go about choosing a college?
Colleges are located in big cities, suburbs, and small
towns throughout the country. Some enroll tens of thousands of
students; others enroll only a few hundred. Some are public;
others are private. Some private institutions are affiliated
with religious institutions; others are not. Some schools
enroll only women, others only men.
The type of institution best suited to your child depends
on his or her individual needs and talents. Your child can
begin focusing on the choice of a college by considering the
following questions:
-- Why do I want to go to college?
-- What do I hope to achieve in college?
-- Do I have some idea of what I want to study or for which
job I want to prepare?
-- Do I want to live at home or go away to school?
-- Do I prefer an urban or suburban environment?
-- Would I be happier in a small college or at a large
university?
In order to choose a college, you and your child should
ask the following questions about the nature and qualify of the
schools in which your child has an interest.
The Nature of the Education Offered
* What is the philosophy of the particular college and what
kinds of educational programs does this college offer?
Ask about the college's specialties, which types of
classes the school offers, and in which fields students can
earn a degree or certificate. How many students study in each
area, and what do they do when they graduate?
* How long does it take to earn a certificate or degree at
this college?
Students should know how much time it takes to complete a
program before they enroll in it. Programs can last anywhere
from a few months to several years. Also ask whether the time
involved reflects full-time or part-time attendance.
* What do students do when they graduate from this school?
Do they get jobs in the areas that they were trained for?
Do they pursue further education?
Job placement rates are particularly important for
vocational programs. If a very low percentage of students are
employed in their area of training a year after completing the
program, there may be a problem. It can also be useful to ask
about beginning salaries of program graduates and the
institution's career advising and placement services for its
students.
Students who enroll in two-year colleges plans to transfer
to four-year colleges should inquire about the possibility of
doing so and about the number of graduates who transfer each
year. Students applying to four-year colleges may want to know
how many graduates go on to graduate or professional education.
The Quality of the College
* How many students who start at this school earn a
certificate or degree? How many drop out?
A high drop-out rate may suggest that students are
dissatisfied with the education an institution provides. Be
particularly careful about having your child enroll in a school
that graduates a very low percentage of its students. Also ask
about tuition refund policies for students who drop out in the
first weeks of an educational program.
* What is the default rate at this college? Do students
repay their loans?
The default rate is the percentage of students who took
out student loans to help pay their expenses but did not repay
them properly. A high default rate may suggest that students
who borrowed never completed their educational program, or that
they were unable to find jobs and repay the loans when they
graduated. Colleges with consistently high default rates may be
barred from student loan programs, and students attending these
institutions may thus be ineligible for Federal loans.
* Have other students who have gone to this college liked
it? What has their experience been?
Colleges should be able to refer you to current students
or recent graduates of their programs. These individuals can
give you their opinion about classes, facilities, the faculty
(teachers), and the skills they have learned.
* What kinds of facilities does this college have? Are they
adequate for my child's needs?
You and your child should consider the condition of
classrooms, libraries, and dormitories when choosing a college.
The types of facilities appropriate for a college depend on the
type of education provided. For example, a college offering
classes in the sciences should have modern laboratories, and an
institution that offers computer education classes should have
adequate computer facilities.
Admissions Requirements and Financial Aid
* What admissions requirements does this college have?
Each institution can require students to take certain high
school classes and submit certain items with their
applications. Make sure you know what is required by the
schools that interest your child.
* Is this college accredited by an agency recognized by the
Secretary of Education and eligible to participate in
Federal student aid programs?
Federal financial aid is available only to students
attending eligible institutions. Students attending other
institutions cannot receive Federal financial aid. If you are
interested in having your child apply for Federal financial
aid, be wary of unaccredited institutions and those with high
default rates. You can call the Federal Student Financial Aid
Information Center toll-free to find out if a particular
college is an eligible institution. The number is
1-800-4FED-AID.
EXERCISE
College Inquiries
Using the form on the next page, help your child list the
colleges he/she knows about and might be interested in
attending. Write down whether they are two-year or four-year
colleges or universities. Ask your child why these schools are
appealing to him or her. You and your child may want to contact
the colleges to get more information.
[Form Omitted]
How much does a college education cost?
Many people overestimate the cost of college or believe
that all schools are expensive. For example, a recent Gallup
survey indicated that 13- to 21-year-olds overestimated the
average cost of public two- and four-year colleges by more than
three times the actual figure. The same group estimated that
the costs of private four-year colleges were one-third higher
than they actually were.
Although some colleges are expensive, costs vary from
institution to institution. In addition, the availability of
financial aid--money available from various sources to help
students pay for college--can make even an expensive college
affordable for a qualified student.
College Costs
The basic costs of college are tuition, fees, and other
expenses:
* Tuition
Tuition is the amount of money that colleges charge for
instruction and for the use of some facilities, such as
libraries. Tuition can range from a few hundred dollars per
year to more than $18,000. However, there are a few
institutions that don't charge any tuition at all. As shown in
Chart 4, most students attend colleges that charge less than
$3,000 per year for tuition. This occurs because over
three-quarters of students attend public institutions whose
tuitions are much lower than those of private institutions.
[Graphic Omitted]
* Fees
Fees are charges (usually small) that cover costs
generally not associated with the student's course load, such
as costs of some athletic activities, student activities,
clubs, and special events.
* Other Expenses
Besides tuition and fees, students at most colleges and
universities pay for room, board, books, supplies,
transportation, and other miscellaneous costs. "Room and board"
refers to the cost of housing and food. Typical college costs
are listed in Chart 5 below.
CHART 5
Typical College Costs
Tuition Books
Fees Supplies
Room Transportation
Board Miscellaneous Expenses
Tuition at Public and Private Colleges
It is important to know the difference between public and
private institutions. A school's private or public status has a
lot to do with its tuition.
* Public Institutions
Over three-quarters of all students in two- and four-year
colleges attend State or other public colleges. Since these
schools receive a large proportion of their budgets from State
or local government, they can charge students who live in that
State (in-state students) relatively low tuition. Students from
other States (out-of-state students) usually pay higher
tuition.
In 1991-92, in-state students attending public four-year
colleges faced an average tuition and fees of $2,137 per year.
in-state students at public two-year colleges faced an average
tuition and fees of $1,022 per year in 1991-92.
If the costs of room, board, books, supplies, and
transportation are added to tuition and fees, the average total
cost of attending a public four-year college was $6,437 in
1991-92. Since many students who attend two-year public schools
live at home, the average total cost of attending a two-year
public college in 1991-92 was $2,404. This includes the cost of
tuition, fees, books, supplies, and transportation for a
commuter student.
* Private Institutions
Private (sometimes called "independent") institutions
charge the same tuition for both in-state and out-of-state
students. Private college tuitions tend to be higher than those
of public colleges because private schools receive less
financial support from States and local governments.
Most private colleges are "non-profit." Other private
postsecondary schools-mostly vocational and trade schools--are
"proprietary." Such institutions are legally permitted to make
a profit. Students at private colleges in 1991-92 faced an
average tuition and fees of $10,017 per year at four-year
colleges and $5,290 per year at two-year non-profit colleges.
If the costs of room, board, books, supplies, and
transportation are added to tuition and fees, the average total
cost of attending a private four-year college was $15,381 in
1991-92. If these same kinds of costs are added to the tuition
and fees of a two-year private college, the average total cost
of attending such a school was $10,019 in 1991-92.
Chart 6 below shows the average tuition and fees faced by
students at four different kinds of colleges in school year
1991-92.
Future College Costs
By the time your child is ready to attend college, the
tuition, fees, and costs of room, board, and other expenses
will be larger than the amounts discussed in this handbook.
Because there are many factors that affect the costs of a
college education, it is impossible to know exactly how much
colleges will charge when your child is ready to enroll. Be
cautious when people tell you a particular amount; no one can
be sure how much costs will change over time. In addition, as
college costs increase, the amount of money you earn, and thus
the amount you will have available to pay for college, will
also rise.
[Graphic Omitted]
How can I afford to send my child to college?
Saving money in advance and obtaining financial aid are
common ways for parents to make their child's education
affordable. Other ways of making college affordable, such as
attending college part time, will be discussed later in this
handbook. (See the section beginning on page 32.)
Saving Money
Saving money is the primary way to prepare for the costs
of college. Setting aside a certain amount every month or each
payday will help build up a fund for college. If you and your
child begin saving early, the amount you have to set aside each
month will be smaller.
In order to set up a savings schedule, you'll need to
think about where your child might attend college, how much
that type of college might cost, and how much you can afford to
save. Keep in mind that colleges of the same type have a range
of costs and your child may be able to attend one that is less
expensive. You can also pay part of the costs from your
earnings while your child is attending school. In addition,
your child may also be able to meet some of the costs of
college by working during the school year or during the summer.
Finally, some Federal, State, or other student financial aid
may be available, including loans to you and to your child.
You will also want to think about what kind of savings
instrument to use or what kind of investment to make. By
putting your money in some kind of savings instrument or
investment, you can set aside small amounts of money regularly
and the money will earn interest or dividends. Interest refers
to the amount that your money earns when it is kept in a
savings instrument. Dividends are payments of part of a
company's earnings to people who hold stock in the company.
A savings instrument has an "interest rate" associated
with it; this refers to the rate at which the money in the
instrument increases over a certain period of time. Principal
refers to the face value or the amount of money you place in
the savings instrument on which the interest is earned.
Chart 7 shows how much you would need to save each month
in order to have $10,000 available when your child begins
college. As the chart demonstrates, the amount varies depending
on the interest rate you obtain and the number of years that
you save. The higher the interest rate and the earlier you
begin to save, the less you need to set aside each month.
For example, if you start saving when your child is born,
you will have 18 years to save. As shown on the chart, each
month you will only have to deposit $32 in an account earning 4
percent interest in order to save $10,099 by the time your
child is 18. However, if you use the same savings instrument
but do not start to save until your child is 16, you will have
to save $401 each month. In addition, if you use the instrument
with the higher interest rate--8 percent--you will only have to
put away $21 each month starting when your child is born.
Remember, by starting to save early and by using
instruments with higher interest rates, you can put aside
smaller amounts. If you wait until later to start saving, you
may not be able to afford to put away the larger amounts of
money needed to meet your savings goals.
CHART 7
Amount You Would Need To Save To Have $10,000 Available
When Your Child Begins College
Amount Available When Child Begins College
If you start Number
saving when of years Monthly
your child saving Savings Principal Earned Savings
(Assuming a 4 percent interest rate.)
Newborn 18 $32 $6,912 $3,187 $10,099
Age 4 14 45 7,560 2,552 10,112
Age 8 10 68 8,160 1,853 10,013
Age 12 6 124 8,928 1,144 10,072
Age 16 2 401 9,624 378 10,002
(Assuming an 8 percent interest rate.)
Newborn 18 $21 $4,536 $5,546 $10,082
Age 4 14 33 5,544 4,621 10,165
Age 8 10 55 6,660 3,462 10,062
Age 12 6 109 7,848 2,183 10,031
Age 16 2 386 9,264 746 10,010
When deciding which type of savings instrument or
Investment is right for you and your family, you should
consider four features:
-- Risk: The danger that the money you set aside could be
worth less in the future.
-- Return: The amount of money you earn on the savings
instrument or investment through interest or dividends.
-- Liquidity: How quickly you can gain access to the money in
the instrument or investment.
-- Time Frame: The number of years you will need to save or
invest.
When you select one or more savings instruments or
investments, you should balance these factors by minimizing the
risk while maximizing the return on your money. You will also
want to be sure that you will be able to access the money at
the time you need to pay for your child's education.
If you start early enough, you may feel confident about
making some long-term investments. Some investments are riskier
than others but can help you earn more money over time. Chart 8
lists some of the major kinds of savings instruments and
investments that you may want to use. You can get more
information on these and other savings instruments at local
banks and at your neighborhood library.
Don't forget that you won't necessarily have to save for
the entire cost of college. The following section tells about
student financial aid for which you and your child might
qualify and other ways to keep college costs down.
[Graphic Omitted]
Financial Aid
Financial aid can help many families meet college costs.
Every year millions of students apply for and receive financial
aid. In fact, almost one-half of all students who go on for
more education after high school receive financial aid of some
kind. In school year 1990-91, postsecondary students received
about $28 billion in financial aid.
There are three main types of financial assistance
available to qualified students at the college level:
-- Grants and Scholarships;
-- Loans; a
-- Work-Study.
* Grants and Scholarships
Grants and scholarships provide aid that does not have to
be repaid. However, some require that recipients maintain
certain grade levels or take certain courses.
* Loans
Loans are another type of financial aid and are available
to both students and parents. Like a car loan or a mortgage for
a house, an education loan must eventually be repaid. Often,
payments do not begin until the student finishes school, and
the interest rate on education loans is commonly lower than for
other types of loans. For students with no established credit
record, it is usually easier to get student loans than other
kinds of loans.
There are many different kinds of education loans. Before
taking out any loan, be sure to ask the following kinds of
questions:
-- What are the exact provisions of the loan?
-- What is the interest rate?
-- Exactly how much has to be paid in interest?
-- What will the monthly payments be?
-- When will the monthly payments begin?
-- How long will the monthly payments lost?
-- What happens if you miss one of the monthly payments?
-- Is there a grace period for paying bock the loan?
In all cases, a loan taken to pay for a college education
must be repaid, whether or not a student finishes school or
gets a job after graduation. Failure to repay a student loan
can ruin a person's credit rating and make finances much more
difficult in the future. This is an important reason to
consider a college's graduation and job placement rates when
you help your child choose a school.
* Work-Study Programs
Many students work during the summer and/ or part time
during the school year to help pay for college. Although many
obtain jobs on their own, many colleges also offer work-study
programs to their students. A work-study job is often part of a
student's financial aid package. The jobs are usually on campus
and the money earned is used to pay for tuition or other
college charges.
The types of financial aid discussed above can be
merit-based, need-based, or a combination of merit-based and
need-based.
* Merit-based Financial Aid
Merit-based assistance, usually in the form of
scholarships or grants, is given to students who meet
requirements not related to financial needs. For example, a
merit scholarship may be given to a student who has done well
in high school or one who displays artistic or athletic talent.
Most merit-based aid is awarded on the basis of academic
performance or potential.
* Need-based Financial Aid
"Need-based" means that the amount of aid a student can
receive depends on the cost of the college and on his or her
family's ability to pay these costs. Most financial aid is
need-based and is available to qualified students.
What are the most common sources of financial aid?
Student financial aid is available from a number of
sources, including the Federal Government, State governments,
colleges and universities, and other organizations. Students
can receive aid from more than one source.
* Federal Financial Assistance
The Federal Government supplies the largest amount of all
student aid, about 75 percent or $20 billion annually. The
largest and most popular Federal student aid programs are:
-- Federal Pell Grants
These are need-based grants that will be given to over 4
million students for school year 1992-93. In school year
1992-93, the maximum Pell Grant will be $2,400.
-- Federal Stafford Loans
Starting in October 1992 there will be two Stafford loan
programs-one need-based program and another non-need-based. In
1992 approximately 4 million students will receive Stafford
Loans.
Under the need-based program, the Federal Government pays
interest on the loan while the student is in school and the
student starts paying back the loan and the interest after
graduation.
Under the non-need-based loan program, the interest
accrues while the student is in school. After graduation the
student must pay back the loan and the interest on the loan,
including the interest that accrued while the student was in
school.
Under the Stafford loan programs, the combined loan limits
are $2625 for the first year, $3500 for the second year, $5500
for the third or more years. An undergraduate cannot borrow
more than a total of $23,000.
In addition to Federal Stafford Loans for students, two
other Federal loan programs are available through which
students or their parents can borrow funds to attend school.
-- Federal Campus-Based Programs
The Federal Government also provides money to colleges to
give to needy students. There are three Campus-Based
programs--a grant program (Supplemental Educational Opportunity
Grants or SEOGs), a loan program (Perkins Loans), and the
College Work-Study Program.
Students can get aid from more than one Federal program.
For the most up-to-date information about student aid supplied
by the Federal Government, call the Federal Student Financial
Aid Information Center toll-free at the U.S. Department of
Education at 1-800-4FED-AID. You can also obtain a guide to
Federal financial aid for students, called The Student Guide,
which provides an extensive and updated discussion of all
Federal student aid programs. You can obtain the Guide by
writing to the following address:
Federal Student Aid Information Center
P.O. Box 84
Washington, D.C. 20044
Call: 1-800-4FED-AID
* State Financial Assistance
States generally give portions of State budgets to public
colleges and universities. This support lowers tuition for all
students attending these schools. Some States also offer
financial assistance directly to individual students, which can
be need-based or merit-based. To find out about State aid where
you live, call or write your State's higher education agency.
The phone numbers and addresses of all of these agencies are
listed in the last section of this handbook.
* College/University Assistance
Colleges themselves provide aid to many of their
students. Most of this "institutional aid" is in the form of
scholarships or grants. Some is need-based and some is
merit-based.
When your child wants financial aid information about
specific schools, he or she should contact the financial aid
offices of these schools and request information.
* Other Types of Assistance
Other organizations, such as corporations, labor unions,
professional associations, religious organizations, and credit
unions, sometimes award financial aid. You can find out about
the availability of such scholarships by contacting someone
from the specific organization or by directly contacting its
main headquarters.
In addition, some organizations, particularly foundations,
offer scholarships to minorities, women, and disabled students.
To learn more about such scholarships, go to the nearest public
library with a good reference section and look for directories
that list such scholarships. (The names of a few books that
list scholarships appear in the last section of this handbook.)
College admissions offices and high school guidance counselors
should also be able to provide more information about
scholarships.
* Help in Getting More Information
The guidance counselors at your child's high school should
be able to provide information on when and how to apply for
Federal, State, and other types of aid. If they cannot give you
this information, try a local college. Even if your child
doesn't plan to attend that particular institution, financial
aid officers there should have information on Federal financial
aid. Many colleges can also tell you about State aid and their
own institutional aid.
Is my child eligible for financial aid? If so, how much?
To qualify for Federal aid, you or your child must submit
a financial aid application. Applications for financial aid
request information about your family's income, savings, and
assets, as well as information on the number of children in the
family who are in college. You can get a copy of the Federal
financial aid form by calling the toll-free number that was
mentioned earlier: 1-800-4FED-AID.
To apply for other aid in addition to Federal aid, you may
need additional forms. High school guidance counselors can tell
you more about applying for financial aid, including where to
get forms you might need for State aid.
From information you report on the financial aid forms,
your expected family contribution (EFC) is calculated. The EFC
is the amount of money a student and his or her family are
expected to contribute to the costs of attending college. Using
the EFC and other information that you provide, each college to
which you apply will determine your financial need. Financial
need equals the cost of education minus the EFC and represents
the maximum amount of need-based aid the student can receive.
In addition, students can borrow money to cover the EFC.
Because financial aid determinations consider both
financial need and education costs, you should not rule out a
school because you think it costs too much. In fact, with
financial aid it may cost no more to attend an expensive
institution than a cheaper one. Chart 9 below summarizes the
simple calculation that is performed to determine financial
need.
CHART 9
How Much Need-Based Financial Aid Can My Child Get?
The amount of need-based financial aid a student qualifies
for depends on his or her financial need. Financial need is
equal to the cost of education (estimated costs for college
attendance and basic living expenses) minus the family
contribution (the amount a student's family is expected to pay,
which varies according to the family's financial resources).
Expected
Cost of Family Financial
Education Contribution Needs
Includes costs
of
Tuition Students can receive
Fees Based on the financial up to this amount of
Room - resources of a student = need-based financial
Board and his or her family aid, such as Pell
Books Supplies Grants and Stafford
Transportation Loans.
To give you a better idea of how you can finance your
child's college education, examples of two college students'
financial aid packages are shown below. Note that these
financial aid packages are Just examples of the kinds of
packages that students with these profiles would receive if
they attended the schools described below.
PROFILE 1 -- FIRST STUDENT
I. Student's Background
Family Income ....................................$12,000
Family Size.............................................4
Number of Family Members in College ....................1
II. Characteristics of the College That Student Would Like To
Attend and Student's Financial Aid Package at That College
A. A 2-Year Public College. Total cost of attending this
college comes to $4,000.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$4,000
Expected Family Contribution (EFC) Parents............$0
Student**(from summer job savings) .................$700
Financial Need....................................$3,300
For this student, the total cost of education is $4,000.
When you subtract the EFC, the financial need is $3,300.
Therefore, the financial aid package below was offered to the
student.
Example of Financial Aid Package:
Financial Need....................................$3,300
Pell Grant.........................................2,400
SEOG***..............................................400
State Aid............................................500
Total Financial Aid ..............................$3,300
B. A 4-Year Public College. Total cost of attending this
institution comes to $6,500.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$6,500
Expected Family Contribution (EFC) Parents............$0
Student** (from summer job savings) ...............$ 700
Financial Need....................................$5,800
For this student, the total cost of education is $6,500.
When you subtract the EFC, the financial need is $5,800.
Therefore, the financial aid package below was offered to the
student.
Example of Financial Aid Package:
Financial Need....................................$5,800
Pell Grant.........................................2,400
SEOG***..............................................600
Work-Study...........................................800
Perkins Loan****...................................1,000
State Aid..........................................1,000
Total Financial Aid ..............................$5,800
C. A 4-Year Private College. Total cost of attending this
institution comes to $15,200.*
Student's Financial Aid Package at This College:
Total Cost of Education .........................$15,200
Expected Family Contribution (EFC) Parents............$0
Student** (from summer job savings) ...............$ 700
Financial Need ..................................$14,500
For this student, the total cost of education is $15,200.
When you subtract the EFC, the financial need is $14,500.
Therefore, the financial aid package below was offered to the
student.
Example of Financial Aid Package:
Financial Need ..................................$14,500
Pell Grant.........................................2,400
SEOG***............................................1,000
Work-Study.........................................1,200
Perkins Loan****...................................1,000
Stafford Loan......................................1,500
State Aid..........................................1,400
Institutional Aid..................................6,000
Total Financial Aid .............................$14,500
PROFILE 2 -- SECOND STUDENT
I. Student's Background
Family Income .........................................$32,000
Family Size..................................................4
Number of Family Members in College ........................ 1
II. Characteristics of the College That Student Would Like To
Attend and Student's Financial Aid Package at That College
A. A 2-Year Public College. Total cost of attending this
college comes to $4,000.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$4,000
Expected Family Contribution (EFC) Parents........$1,500
Student** (from summer job savings) ...............$ 700
Financial Need ...................................$1,800
For this student, the total cost of education is $4,000.
When you subtract the EFC, the financial need is $1,800.
Therefore, the financial aid package below was offered to the
student.
Example of Financial Aid Package:
Financial Need ...................................$1,800
Pell Grant...........................................700
SEOG*** .............................................500
Work-Study...........................................600
Total Financial Aid ..............................$1,800
B. A 4-Year Public College. Total cost of attending this
institution comes to $6,500.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$6,500
Expected Family Contribution (EFC) Parents .......$1,500
Student** (from summer job savings) ...............$ 700
Financial Need ...................................$4,300
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