May 1 is unofficially known as National College Decision Day, as it is often the deadline for students to make deposits to attend the college of their choice.
We turned to our friend Chris Wills, president of Twin Cities-based College Inside Track, for three important things students should consider before sending in that check. Here's what he had to say:
1. Affordability is part of fit.
Many students choose their college based on academic and social fit-it has a good program in the field they want to study, and they like the vibe or feel of the campus. Yet many students completely overlook whether their family can realistically afford it.
No matter how great a school may seem, it simply is not a fit if you and your student need to take on unmanageable debt to attend. A good rule of thumb is that total debt should not exceed the expected first year starting salary in your desired field.
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2. How long will it take you to graduate?
Having to stay longer in school costs money, including the lost wages you are missing out on by not being able to join the working world sooner. Ask colleges what the average time to graduate is in your area of study. If it is more than four years, ask for specifics on how the institution facilitates getting it done in less time.
3. What high-impact experiences are provided?
Consider what the quality of your learning experience will be and how the institution prepares you to succeed. What does the college do to promote active involvement in campus organizations, extracurricular activities and volunteerism? What kind of internships or co-ops are offered where students can directly apply what they are learning in class? Are there any mentorship opportunities? Make sure the school you choose is committed to your success in these ways beyond the classroom.
With student loan debt becoming a significant problem for today's younger workers, it's important to ensure students take a mature stance on choosing the appropriate college for their personality, aptitudes and career interests, as well as their financial situation. Parents and grandparents can help by using this major decision as a teachable moment. Ideally, you would neither make the decision for your child, nor let them decide on their own. Involve them in the discussion.
Encourage him/her to see the realities of various degrees, experiences, occupations and financial aid packages by using the prompts above. There may even be a cost/benefit analysis at play. If you aren't comfortable framing up this situation for your child, consider enlisting the help of a professional with expertise in college planning. This is likely the first major financial decision for a college-age child: Help them make the best possible choice now, and they'll hopefully retain the information to make great financial decisions later.
Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of "Your Money" on KLKS 100.1 FM on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com .
