College Planning

The following article from our colleague and college financial advisor Donna Cournoyer is addressed to graduating high school seniors.

Your upcoming graduation from high school is a big deal- a REALLY big deal. Congratulations!

Now is the time when one chapter closes as you prepare for another. While it’s quite exhilarating, it can be a bit overwhelming, too. Don’t worry – you are not alone. Your future college classmates are also preparing for the transition this coming fall.

Here’s how you can get ready for college, with a few helpful tips from students who’ve been where you are:

Embrace Your Independence

College is a big step toward becoming your own person. You’ll be managing your own time, choices, and responsibilities – everything from planning your meals, your schedules, and of course your classes.

“Learning to do laundry before I moved in saved me from a lot of headaches—and colorful T-shirts,” says Emma, a sophomore at the University of Vermont. “College felt less overwhelming once I stopped waiting for someone to tell me what to do and started figuring things out for myself.”

Start with something practical this summer, like creating a budget, and managing any money you make by working a part-time job. Save what you can for spending money this fall.

Keep Your Study Habits Sharp

In college, it is likely that your classes will be moving faster and be more in-depth than high school. It is helpful to find what study methods help you most, such as group sessions, flash cards, or digital tools.

“In college, no one checks if you’ve done the reading. You’re expected to show up ready to talk about it,” says Jordan, a first-year student at a liberal arts college. “Learning how to study smarter—not longer—was a game changer.”

Start Making Connections

Start now. Don’t wait for move-in day to meet people. This helps take some of the fear of the unknown out of the equation, if you make a few new friends before you meet in fall.

Join the social media groups your school has set up for incoming freshmen. Message your roommate, attend the virtual meetings to meet some of your classmates.

“A girl I met on the college Discord server ended up being one of my best friends. We bonded over our love for Taylor Swift before classes even started,” says Aisha, a freshman at a state university.

Get Practical

From having health insurance cards to dorm shopping, there are a lot of logistics to tackle before move-in day. Make a list (or more), and don’t be afraid to ask older students what they wish they had packed- or left at home!

“I brought too many clothes and not enough extension cords,” laughs Max, a junior.

Also, know how to access your student portal and make sure your paperwork, such as immunization records, financial aid, and payment plans are squared away.

It helps to see some familiar faces when you step on campus.

Prioritize Your Well-Being

College life can be amazing, but also stressful. Make your mental health a priority. Get familiar with campus resources like counseling centers, academic support centers, student activities centers. Even wellness apps can help.

“I didn’t expect to feel homesick, but I did,” shares Leah, a second-year student. “Talking to someone—even a campus peer counselor—helped a lot.”

Remember, you are growing, you don’t need to have everything figured out! That is what college is for.

Final Thoughts

Summer this year is more than a break: it is really a launching pad. Take time to rest, plan, and dream. You are heading into one of the most impactful periods of your life. Full of life-changing experiences, discoveries and connections that will last your lifetime.

You, the Class of 2025, have already made it through a lot! Now is your time. Go out, learn, connect and experience the world around you.

“College will help you realize who YOU are. Your life will begin to take shape, and the meaning of your life will start to emerge.” -Donna

-DC

The following article was contributed by our colleague and college financial advisor Donna Cournoyer 

May 1, commonly known as National College Decision Day, marks the deadline for high school seniors across the U.S. to commit to the college they plan to attend in the fall. With multiple acceptance letters in hand, this decision can feel both exciting and overwhelming.

Here are some key considerations to help students and families make a confident choice.

1. Revisit Your Priorities
Start by reflecting on what matters most to you. Academic programs, campus culture, location, extracurricular opportunities, class sizes, and internship pipelines can all make a big impact on your college experience. While prestige and high rankings are nice, make sure the school aligns with your goals and values.

2. Compare Financial Aid Offers and Merit Scholarships Awarded
Cost is a major factor for many students. Lay out all the financial aid packages you’ve received, including scholarships, grants, loans, and work-study options. Calculate the net cost (not just the tuition sticker price) and consider long-term debt implications.

Merit scholarships (non-financial need funds) are especially important if you do not qualify for financial aid. If you are considering a school that does not offer merit scholarships, be sure to know the full price you will be responsible for.

Be sure to have a four-year financing plan in place, not just a way to “make it through paying for year one”.

3. Attend Accepted Student Events
Many colleges offer virtual or in-person events for admitted students during April. These are great opportunities to ask questions, meet future classmates, and get a real feel for the campus environment.
Have your questions ready and seek out those who can help to give you important information to help you make this decision.

4. Talk to Current Students and Alumni
Hearing honest perspectives from current students or recent graduates can offer insights you won’t find with college brochures and marketing materials. Those leading the tours are going to “sell” you on choosing their school, usually no matter the cost.

Be sure to ask about academic rigor, social life, career support, and anything else important to you.

5. Trust Your Gut
At the end of the day, this is your decision. You might not have all the answers, and that’s okay. Consider where you felt the most comfortable, excited, or inspired. Your instinct can be a powerful guide.

Final Tip: Don’t Miss the Deadline

Once you’ve made your choice, be sure to submit your enrollment deposit by May 1 to secure your spot. Also, notify the schools you’re not attending so they can offer spots to wait-listed students.

Choosing a college is a milestone—and while it’s a big decision, it’s just the beginning of an exciting new chapter. Take a deep breath, weigh your options, and take the next step with confidence. By this time, you have put in the hard work both in high school and in your college search.

Finally, celebrate your decision. This is a major milestone! Enjoy the remainder of senior year and rest up this summer (maybe work to earn a few extra dollars) so that you are ready for move-in day this fall.

Additional Pointers for Parents

Right now, you are not alone. Many families across the country are working together to help their high school seniors make one of the most important decisions of their academic journey: choosing which college to attend. As a parent, your guidance, support, and perspective can play a vital role.

Here’s how you can help your student make a thoughtful, confident choice:

• Now is the time to remind your student about their priority list and to help them focus on where they will thrive. While attending a school of prestige has certain attractions, the reality is that most of the time, other schools on their list will offer everything your student needs to have a great career and make connections that will last a lifetime.
• Hopefully you have already had a conversation about finances. However, now is a good time to review with your student their financial responsibilities, including costs, loans, etc. It’s also important to discuss what you are willing to finance as their parent. Be sure it is a realistic plan and makes sense for all of you. If it is not a smart decision financially, it may be wise to consider another choice.
• Offer support, give guidance and perspective, but give your student space to use their own judgement. Your reassurance can go a long way to helping them feel confident and excited about the way forward.

Best of luck to students and parents in making the big decision!

Our colleague and college specialist Donna Cournoyer shares her thoughts on the shake up at the Department of Education, and what it means for colleges and universities, and students

When the new administration took office on January 20, they swiftly took action, making big changes to multiple US government agencies, including the US Department of Education.

Layoffs, mass firings, and talk of eliminating some departments altogether. The US Department of Education is at the top of that list.

Linda McMahon was confirmed on March 3 as the next Secretary of Education, seemingly with the sole purpose of dismantling the entire US Department of Education.

As of March 6, President Trump is expected to issue an executive order soon- aimed at abolishing the Education Department, according to people briefed on the matter, as reported in the Wall Street Journal.

However, it appears that eliminating the department would take an act of Congress.

 Background

What is the US Department of Education?

Federal agency created by Congress in 1979

• Responsible for overseeing education policies and programs across the country
• Employs more than 4,000 people
• Annual budget of $79 Billion
• Overseen by the US Secretary of Education

Main Roles of the US Department of Education

 Funding for US Public Schools

While most funding comes from state and local governments, the US Department of Education provides between 6-13% of funding for public schools, according to a 2018 report from the U.S. Government Accountability Office.

• Title I-Helps serve lower-income communities. In 2023, the Education Department received more than $18 billion for Title I.
• IDEA (Individuals with Disabilities Education Act)-Provides money to help districts serve students with disabilities. In 2024, the department received more than $15 billionfor IDEA.

Created by separate acts of Congress, Title I was signed into law in 1965, and IDEA signed into law in 1975. It is highly unlikely that these acts would be undone. An act of Congress would be needed, and they have broad bipartisan support.

Tracking of Student Achievement Through the “Nation’s Report Card”

The department oversees the National Assessment of Educational Progress (NAEP) known as the “Nation’s Report Card”.

• Congress mandated this assessment in 1969, and tests students in reading, math, science and other subjects
• It also offers insights into attendance, economic conditions, and students’ educational backgrounds
• Educators, policymakers, and researchers use this data to work toward improving the K-12 education across the US

Oversight of Federal Grants and Federal Student Loans for College Students

The department manages federal aid programs, including Pell Grants and student loans which helps students afford higher education.

Key Functions Include:

• Managing the federal student loan portfolio, approximately $1.6 Trillion, including oversight of outside contracted companies who manage the loans.
• Managing the FAFSAapplication (Free Application for Federal Student Aid) which determines eligibility for grants, loans, and work-study programs for college students.
• More than 17 millioncurrent students and new applicants fill out the FAFSA each year.
• FSA (Federal Student Aid) provides approximately $120.8 billion in grant, work-study, and loan funds each year to help students, and their families, afford a college education.
• This includes $33 Billion in Pell Grants for low/middle-income undergraduates.
• The FSA also prevents fraud and abuseby ensuring that schools and borrowers comply with federal regulations to prevent financial mismanagement.

Data Collection on Colleges and Students

Through the IPEDS (Integrated Postsecondary Education Data System), the US Department of Education gathers independent research, statistics, and evaluations of colleges throughout the country. Schools are required to complete detailed reports each year.

• This information helps students and parents analyze and compare different schools through admissions statistics, academic outcomes, graduation rates, need-based eligibility data and more.

Although the current administration has said it would close the Department of Education, and return “all education, and education work and needs back to the states”, it is already up to the states and local agencies to determine what is taught in classrooms. The department does not dictate what is taught at K-12 schools, colleges, or universities.

Recent Changes to the Department of Education Since the Inauguration and Their Potential Implications

Repayment of Federal Student Loans

If federal student loans face disruptions, students may have to move to private lenders, where they may be subject to higher interest rates and fewer repayment or forgiveness options.

• The current administration has already paused applications for some income-driven repayment plans.
• If the administration moves the loan repayment for the $1.6 Trillion in loans to another agency, such as the Treasury department, (an idea that has been discussed) it likely won’t be a quick or smooth process.
• The future of the loan repayment plans is unsure, students could see a higher monthly payment if the plan options change.
• One extreme possibility is the privatization of the entire student loan system, which would have wide-spread financial implications for loan holders.

University Research Funding Proposed Cuts

The current administration has proposed significant reductions in federal funding for university research, particularly targeting the National Institutes of Health (NIH).

Legal Actions have been initiated. A federal judge in Massachusetts issued a preliminary injunction blocking the implementation of the 15% cap on indirect cost reimbursements.

Despite the legal challenges, this has created widespread concerns among research institutions.

• Stanford Universityhas implemented a hiring freeze with leadership citing the potential NIH funding reductions and increased taxes on large private university endowments as factors necessitating these precautionary measures.
• Rice University anticipates that this will jeopardize critical projects, including innovative cancer treatments and detection technologies. They warn that without sufficient support for indirect costs, they may be faced with difficult choices of raising tuition or halting certain research endeavors altogether.

These proposed cuts pose significant challenges to universities, and could disrupt essential research, lead to job losses, and potentially affect the ability of the US to have a competitive edge in global scientific and technological arenas.

Other broader implications beyond individual universities, is a growing concern that reduced research investment could hinder scientific innovation and diminish the US global leadership in technological advancement.

Some analysts caution that this may allow other nations, notably China, to surpass the US in critical areas like artificial intelligence and quantum computing.

Federal Grants and Loans- Eligibility and Processing at Colleges and Universities

• The FAFSA has already gone through a horrible two years of a new form rollout. Changing oversight of this form, (a possibility) or eliminating the US Department of Education, would likely result in more upheaval of the application process for college students.
• Eligibility –It is unsure at this point if any actions will be taken to change how eligibility is calculated by the FAFSA form.

 Federal Employee Layoffs or the Elimination of the US Department of Education

• Fewer employees at the department and FSA (Federal Student Aid) could mean a disruption of the processing and flow of Federal aid including federal grants and student loans.
• Note that federal aid resources such as Pell Grants and student loans are established by Congress, and an executive order to end them is not a legal option and highly unlikely.
• If the processing of federal aid changes hands, this may cause significant challenges for the timely disbursement and processing of aid for students.

Final Thoughts

As an insider in the Higher Education sphere for much of my career, I understand the processes and intricacies of how colleges and universities operate on many levels.

Colleges are run like a business and rely on tuition to meet budgetary needs. Any federal cuts can have significant impacts.

Endowments (the funds collected from donors) are designed to be a permanent source of income and are used to make long-term investments.

These funds are used to sustain the operating costs and to offer discounts on tuition to attract students to enroll. If other funding is reduced, more strain may be put on endowments going forward.

Financial aid offices coordinate the awarding and disbursement of funds through many systems to get the funds for students disbursed in a timely manner while also complying with federal regulations.

During a time when colleges are still rebounding after the pandemic, and enrollment is on a steady decline due to a shrinking birth rate.

Along with FAFSA application issues, the upheaval caused by the current administration’s decisions, particularly to the US Department of Education, will likely creating more challenges.

Since the Covid-19 pandemic, seventy-four colleges have closed, merged, or announced plans to close, according to bestcolleges.com.

Institutions may become even more unaffordable, research and learning opportunities may be of less quality, and the already complicated, opaque process of applying to college is likely to become even more challenging and complicated.

The biggest immediate effect for students likely will have to do with financial aid.

Many fewer employees at the Department of Education (or of its demise) will make the processing and disbursement of federal funds challenging and likely create disruption and delays. Exactly how this plays out is yet to be seen.

As students and families approach applying to college (and for those in college), it is a good practice to remain informed, particularly as significant changes are likely on the horizon.

Seeking professional advice when possible and keeping calm as you approach college planning will pay off when it comes time to make the four-year commitment, and decide on financing options.

-DC

Our colleague and college specialist Donna Cournoyer contributed the following update for college planning

Searching for private college scholarships is not always viewed as an effort with a lot of pay off – no pun intended!

Considering high college costs, complicated preparation and application processes, and jam-packed schedules, many students and parents don’t feel like private scholarship dollars are worth the extra effort and time.

I strongly believe, however, that most college applicants should dedicate some time researching and applying for private scholarships before college, and continue to do so during their college years as well.

There are many private scholarships available, and if you use a targeted approach, it can pay off.

The Search

What types of scholarships are available?

Private scholarships are awarded by many different types of businesses, organizations, schools, and other entities based on a variety of criteria.

These criteria may include academic achievements, artist talent, athletic talent, leadership roles, career aspirations, a written essay, and many more.

When you begin to consider searching and compiling a list of private scholarships you will apply for, think about your personal strengths and interests and abilities and how those have shown through in high school, and focus on these along with your intended area of study if you have chosen a path and a major.

This will help you sort through the many scholarships available, and help you with a targeted approach.

When to Apply

Start doing research in your junior year in high school and make a list with application dates and deadlines to be ready for your senior year.

Senior year– Applications open during a wide time range- anywhere from November to submission deadline of sometime through about April for the following Fall college start.

Once you start your college freshman year, many colleges have internal, non-financial need scholarships available to apply for in your second to fourth year. Some can be major specific, or GPA based, etc.

Be sure to find the office who awards them. Start by asking your financial aid office (if it is not them, they will know where to direct you to). You can also search for private scholarships as well. Do this during your winter break.

Where to Apply

First, check your high school guidance office and your school website– they are likely to have information on many local scholarships.

Use recommended sites for your search, from trusted college advisors, high school guidance staff, etc.

Use ONLY free scholarship search sites. If a fee is requested, move on. Qualified sites do not charge a fee.

Check the websites of the colleges and universities you are applying to– they will likely have scholarships you can apply for as well that are outside of merit scholarships.

BEST SOURCE: Local Scholarships from local businesses and organizations- Inquire at local groups, organizations- social, religious, etc., that you belong to or may know you and your family. There is less competition than online national databases.

• Download my list of qualified search sites here to begin: Private Scholarships

Why It’s Worth It

A few $200-$500 scholarships may seem inconsequential when peering up at the high costs of college.

However, there are plenty of opportunities to receive scholarships with higher dollar amounts attached, and they can add up.

If the time researching and applying is targeted and well spent, it may be fruitful in turning up additional significant resources for college, which is beneficial regardless of your financial situation.

Every dollar you receive in scholarships means a lower out-of-pocket cost for college, and therefore a greater opportunity to save and invest or increase spending capacity for other necessary items.

Other Tips for High School Students

• When essays are required, write your own. Do not have a parent or adult write them and do not use AI. It will be noticed and could get you disqualified!
• Write your personal story from the heart. Write about your personal struggles and triumphs, growth and dreams. Let the committees get to know YOU.
• You can build these essays from your college admission essay. Use the work you have already done (hopefully) and create your scholarship essays from the considerable thought you have already given to your admission essay, and tailor for each scholarship application.
• Think of applying for scholarships as a part-time job. Once you receive some awards, think about how many hours you have spent working on applications, and do the math: it is likely a decent return.

This work itself will help prepare you for college, because it helps build skills with regard to time allocation, organization, research, self-reflection, and more.

All the work and preparation done in high school is a resource to help you shine on your scholarship applications.

Good Luck!

-DC

A new year often brings with it a chance to review and renew plans and aspirations and to take action on important items and goals.

January is a good time to solidify college planning goals and to start taking action on steps toward the goals you have for seeing your student off to college.

It may seem like a long way off, but the next year and a half likely will be a blur!

Junior year is important for admissions applications, so keep your high school Junior’s focus on their studies and activities.

Here are some steps you can add to your checklist and start completing now:

January-March

• Register for Spring SAT and/or ACT exams. Consider the SAT Subject Test.
• Make a list of important criteria for which college you will attend: do you want a large university? A small community? What majors interest you? What sports and activities? Are there unique services you need? Will the school have these? What is the Cost of Attendance? And so on.
• Make your college list and find out when they have Spring tours- begin visiting schools on your list. Start with the closer schools.
• Do some online research on your school list and see if they measure up to your criteria and find out all you can and make lists of comparisons, including price!

April-May

• Finish your year well! Keep your grades up- schools will be requesting your junior transcripts for college applications.
• Consider adding activities to your schedule if you are not involved in many.
• Continue to visit colleges. Many Open Houses are in Spring. Make any travel plans ahead of time, if needed. Make a list of questions to ask beforehand.
• Read some college applications so it is not all new to you in Fall.
• Make a list of potential people you may want to ask for letters of recommendation. Teachers, employers, counselors, etc.
• Explore summer opportunities for work and include college campuses if you are near one.

For more information on checklists for Summer, Fall and Senior Year, please see previous articles:

• College Planning in the Summer: A Focus for High School Seniors
• Seniors: Financial Aid & Admissions Checklist + Tips for College Applications

-DC

Your student has submitted the Common App. Congratulations – it’s a big step! So, what’s next?

While it may feel like you have crossed the finish line, college planning is not over yet. In fact, some of the most important steps begin now.

Some of the decisions you’ll make in the months ahead will have a great impact on not just the next four years, but for years after your college student receives that well-earned diploma.

Below are key areas of focus for staying on track financially.

If You Have Not Started a Plan to Pay, Begin Now

• Make a list of your “likely schools” and their Cost of Attendance
• Use college cost online calculators to give you an idea of how much each school will cost after financial aid and merit scholarships. Schools are required to have a Net Price Calculator on their website.
• Use salary calculators to get an idea of what kind of salary you will make after graduation
• If you are going to use loans for any part of payment, do your research now and definitely consider the Federal Student Loansthat each student is eligible for
• Review parent college savings and assets intended to cover college costs and make a four-year cost estimate (remember costs increase an average of 5% per year)

Submit Your Financial Aid Forms

You likely have submitted the CSS Profile for your schools who require it by now (not all schools require this form).

Be sure to complete the FAFSA form (Free Application for Federal Student Aid) which is now open for the 2025-2026 academic year.

Plan Your Private Scholarship Search

There are many private scholarships available for students. A good place to begin this search is with your high school guidance office.

Search for local scholarships and use online tools. Be sure to never pay a fee, because legitimate scholarship websites do not charge a fee for application.

Here are a few websites to begin your private scholarship search:

• Fast Web
• Scholarship America
• College Board BigFuture

Maintain Grades and Academic Focus

Colleges will be requesting final transcripts for review, so students should stay focused and keep grades up. Significant drops in grades could put college acceptance in jeopardy.

Consider Visiting or Revisiting Top Choice Schools

Since there are many factors that make a school the right fit (including if a student feels like they are at home on campus and with other students), make another visit, or be sure to visit if you haven’t already done so to decide if the college campus is right for your student.

Check out school resources, student activities, and even the geography and area of the school.

Take any opportunities to speak with students, faculty, advisors and department chairs.

Prepare for Acceptance Letters (and Possibly Rejection Letters)

In the coming weeks you will start to receive decision letters.

This is exciting! However, it can be stressful.

It is good to remember for your peace of mind that even if there are rejections, there is a school out there for your student where they will have a place to connect with peers and have the resources to succeed and enjoy the next four-year chapter of college life.

And Finally, Celebrate!

Over the coming weeks and months, especially during the holidays, you will likely have the opportunity to celebrate some acceptance decisions from your college list.

Be proud of this accomplishment and share with your family and friends. You (students and parents) have earned it!

-DC

Our colleague and college specialist Donna Cournoyer contributed the following update for college planning

The topic of the FAFSA (Free Application for Federal Student Aid) has made frequent appearances in our client letters, especially since the major changes from the FAFSA Simplification Act were rolled out last year in the 2024-2025 application.

Many would say the FAFSA rollout could not have gone worse.

Late opening, lack of accessibility, and late communication of data to schools made for a very unpleasant year for financial aid applicants, as well as financial aid administrators.

There is hope for some improvement this year, although the opening is again delayed with the Department of Education aiming for a December 1 launch for the 2025-2026 form, instead of the usual October 1.

For first-time applicants, this can add additional stress to the already onerous process of preparing and applying to college and applying for financial aid.

Below is a breakdown of the information needed on the financial aid forms, with a focus on asset reporting requirements.

The Application Forms

FAFSA: The Federal application used to determine eligibility for any Federal funds, including Pell Grants, Federal Work Study and Federal Student Loans.

• Required by every school for financial aid applicants
• More limited questions on assets for parents

CSS Profile: The application provided by the College Scholarship Service, which schools can require for their applicants with additional questions for eligibility review.

• Required for approximately 250 schools, mostly private, as a secondary form in addition to the FAFSA for determining eligibility for school grants and funds
• More questions on parent assets which can lower a student’s eligibility for college specific need-based funds

Positive changes to the simplified FAFSA include fewer questions and some changes for 529 college savings account reporting.

• Applicants’ sibling 529 accountslonger need to be reported
• Distributions from any 529 accountfor educational expenses no longer need to be reported as untaxed income

Parents often have a lot of uncertainty about how assets are reported and weighed on the FAFSA and CSS Profile applications. And rightly so, as there are significant inconsistencies on how the Federal government looks at parental assets compared with how colleges view those assets.

Colleges have their own funds and awarding policies and can award their funds as they wish to their applicants.

Asset Comparison and Requirements for the FAFSA and CSS Profile

Parent Assets are counted at 5.64%, and Student Assets are counted at 20% (and in some cases up to 25%) on the CSS Profile.

Home Equity

• FAFSA – Not required
• CSS Profile – Required and considered in eligibility calculation

Equity in Other Investment Real Estate

• Required on both FAFSA and CSS Profile and considered in eligibility calculation

Family Businesses

• Required for both FAFSA and CSS Profile and considered in eligibility calculation

Cash Values of Life Insurance Policies and Qualified Annuities

• Not required on FAFSA
• CSS Profile – Non-Qualified Annuities are countedas assets

529 College Savings Accounts

• Parent or Student Accounts required for both FAFSA and CSS Profile
• Accounts in other names, such as grandparents or relatives are NOT required on the FAFSA, the CSS Profile may ask for this information
• Withdrawals used to pay for college are not included on the forms

Parent Retirement Accounts

• Parents’ personal retirement accounts, such as 401(k), IRA, Roth IRA, pensions, Keough Plans, are NOT required on the FAFSA, but the CSS Profile will ask for these, and could consider them

Other Parent Investments

• Other investments which are non-retirement accounts, such as mutual funds, brokerage accounts and any other non-retirement accounts are required and considered on the FAFSA and CSS Profile

UGMA/UTMA Account

• Required on the FAFSA and CSS Profile, and are in the Student’s Asset section, if the student is the custodian

Interest and Capital Gains

• Will be considered, as they will show in income on your Federal Tax Return

Planning Ahead

If you are a few years or more away from your student applying to college, work with your accountant and financial advisor if you have expected one-time fluctuations in your income, such as the sale of a business.

Your financial advisor and accountant may also have suggestions on how to lower your adjusted gross income (within adherence to any tax laws) in the years leading up to the financial aid applications, which may help increase your eligibility for financial aid.

Final Thoughts

My general advice for completing these forms, especially the CSS Profile:

• Report Accurately
• Don’t Overestimate
• Don’t Overshare

Parents may have conflicted feelings and concerns on sharing their personal information.

Getting qualified guidance for planning for any upcoming income changes in the years prior to college applications, along with guidance on how to answer FAFSA and CSS questions, will go a long way in contributing to your confidence in receiving accurate awards and talking to school counselors about your personal financial situation.

Our colleague and college specialist Donna Cournoyer contributed the following update for college planning, as a follow-up to her April article, Shifting the “Dream School” Mindset

There are many factors that shape the philosophies, policies, and practices of colleges throughout the US. However, the overarching key factor is this: colleges are businesses that need revenue to exist.

Most of this revenue comes in the form of tuition and housing fees that families pay each year. And of course, fundraising and building upon existing endowments are significant contributors, too.

Endowments are permanent funds, used as a self-sustaining funding source for the school’s mission, including funding for scholarships and grants for students.

However, endowments are invested funds and only a small portion is consumed each year. In many cases most universities spend only the interest that accrues annually from the investments.

The need for colleges and universities to enroll a certain number of students each year, in order to stay within their operating budgets, drives institutional goals and determines how the schools market to students they want to attract.

The Enrollment Cliff

Another factor driving the enrollment policies of universities is the significant decline in the number of college-bound students expected in the years ahead.

This drop in predicted enrollment is a function of a declining birth rate; fewer high school graduates choosing to go to college (related to price and value perception, among other reasons); and predicted lower high school graduation rates.

This puts a lot of pressure on colleges and universities to meet their enrollment goals each year, in an environment where it’s getting harder and harder to do.

How Colleges Entice Students

Marketing is a large expense at many colleges and universities. Schools want to entice students by creating beautiful grounds, building new dorms, providing the latest technology in classrooms, and guiding families on tours where they aim to make an emotional connection with the student.

Schools market to all students and families on the tours – even the ones who cannot afford to attend.

Think about this: as has been a common practice for decades, many families create a list of schools based on perceived elite status, reputation, location, aesthetics, amenities, and, of course, academic programs. Sometimes, price is considered before visiting. But often it isn’t.

Then families visit their chosen schools, where tour guides aim to make that highly charged emotional connection with the student (and the student’s family). They are often very successful. When you come down to it, this is the process of the sale, and tour guides are selling the school to the student.

What happens next?

The student makes a snap decision to attend one of the visited schools based on feeling and emotion (I have seen this many times in my experience working at a university) and ultimately the family agrees.

Cost might not even have factored into the decision, and this can have far-reaching financial implications for the student and parents.

Consider this: the four-year sticker price for many schools now totals nearly $400,000, which is very close to the current median price for existing-home sales in the US, according to the National Association of Realtors.

In a Bloomberg article from September 26, columnist Charlie Wells said something that resonates with me as a college planner and financial advisor:

“Financial advisers say having a budget and setting expectations is crucial to avoiding disappointment — or mountains of debt — later. (Just think: Would you let your 16-year-old decide which house you were going to buy after one walk-through? School choice is not so different.)”

Looking at a family’s plan to pay for college is intertwined with many factors including the ways in which colleges aim to attract and solidify commitments from students to attend their school.

When planning your strategy for choosing and paying for college, remember these key points:

• Rankings: Some of the factors that have been touted for years about U.S. News and World rankings, for example, are starting to take a back seat as many people no longer believe they are relevant to deciding on a college.
• Elite Status: Studies have shown that WHERE a student goes to college is not a significant factor in their success.
• Apply to Competing Schools: This may give you a chance to leverage offers from one school to gain additional funds from another, as many schools will “match offers” to get a student to commit.
• Set Financial Expectations: Have a Financial Plan and start early. Discuss together as a family what are the realistic and agreed upon financial strategies: How much are parent(s) willing and able to contribute? Will anyone need to borrow? What is the student’s responsibility? Do this BEFORE visiting and applying to schools.
• Merit Scholarships and Financial Aid: Research the financial health of the school, along with their policy and average amounts of aid and merit scholarships. This is not always transparent so call the Admissions staff to ask for average, if necessary.
• Appeals: While not everyone’s favorite process, often students may benefit from appealing their offer. Remember, schools need to make their enrollment, so offering additional incentives is a way in which they aim to do so.

One of my goals as a college financial planner is to help shift how parents perceive “what is the best school for my student”.

I’ve observed that families with well-planned strategies that consider the current landscape of college admissions are more likely to conclude their college search confidently, and are more successful in ensuring that, in the end, their college dollars are well-spent.

-DC