The Options and How to Pay for Them

There are a variety of education and training options available for students to consider after high school graduation. Whether or not your high school junior has already determined a pathway, it’s time to begin narrowing the list of options and discussing college affordability if it is in your student’s future. Our articles will help you and your student along this pathway.

Why It Matters

Knowing what options exist provides a starting point.
Solid decisions begin with an analysis of all of the available options. After high school, your student can explore an apprenticeship or certificate program, as well as a two-year associate degree or a four-year bachelor degree. The U.S. military has seven branches from which to choose, along with military academies and preparatory schools. Iowa is now a State Apprenticeship Agency, with the Iowa Office of Apprenticeship overseeing all Registered Apprenticeship programs across the state. Registered Apprenticeship (RA) is an industry-driven, high-quality pathway that helps Iowans advance in their careers and employers develop their workforce.
Knowing each option’s cost can narrow the list.
As with any long-term investment, it’s important to understand the costs involved before signing on the dotted line. The majority of people will first look at the price tag of a car or house before even considering taking additional steps to purchase it. This same approach can be used when comparing the costs of different types of higher education institutions — community college, public four-year, private four-year, graduate school, etc.

What Your Student Can Do Now

Revisit career assessment results.
By now, your student may have completed several career assessments, either at school or alone using a resource like the CareerOneStop website. Have your student revisit those results, paying close attention to what type of education is required to pursue each occupation or career.
Identify five or six potential careers.
Paring the list to five or six careers will provide direction when researching higher education options. If college isn’t required, your student’s research will take a different direction, gravitating more toward training programs or registered apprenticeships. If a college degree is required, your student’s research will focus on which type of college provides the best outcome for the major or program of choice.
Research each type of college.
With a potential major and career plan in place, your student can begin the college search process. Community colleges typically offer certificate and two-year associate degrees at a significantly lower tuition cost than a four-year college. If one is located within your area, living at home eliminates room and board costs your student has to pay. The college may also have an articulation agreement with a four-year college, which makes for a seamless transition, reduces borrowing, and gives your student junior status immediately upon entering. Starting at either a four-year public or private institution means your student begins as a freshman and graduates after four years of attendance.
Envision the outcome.
Would you want your student buying a car that quits working within a year of purchasing it? Similarly, would you want your student investing thousands of dollars in a college degree only to find that it doesn’t provide a return on that investment? Your student should find the post-graduation data for every college under consideration. This data includes placement rates and is found on the school’s website, usually within a career center’s website. Or use ISL Education Lending’s Return on College Investment tool to select a major that offers a clear career track and identify jobs that pay well enough to cover future expenses and debts.

What Your Student Can Do Later

Use an objective and analytical approach.
Now that a list of majors and colleges has been created, it’s time to consider what is affordable for your student. Have your student review each college’s Admissions website for information regarding current costs and find the school’s Net Price Calculator, which is a tool to estimate the total amount — out-of-pocket costs — you and your student are expected to pay. The out-of-pocket costs are also referred to as the gap —difference — between what your student will be charged for attending the school and the estimated financial aid that can be received.
Find free money for college.
The best source of money to pay for college is scholarships and grants. Start looking for scholarships offered by local businesses or organizations. This is free money that doesn’t need to be repaid, and even small, one-time scholarships are worth pursuing, because they can add up to significant amounts. Check out ICAN’s website for reputable scholarship searches and a database of selective scholarships.
Calculate how much money can be saved and earned for college.
Have your student add up how much money has already been saved for college and run a rough estimate of how much more can be earned from a part-time job from now until college begins. Any college savings accounts and potential graduation gifts can also be included in this figure.
Determine if the college is affordable.
Now that college costs and potential financial aid figures are known, it’s time to plug the accumulated figures into ISL Education Lending’s College Funding Forecaster to determine what you and your student can expect to pay for the first year of college for each college on your student’s list. This tool provides opportunities to make adjustments to the initial entries in order to forecast the cost of attending over four years to six years. The tool shows the total estimated funding gap, as well as the estimated forecasted student loan debt. Results can be printed and used for a side-by-side comparison of each school. If the total funding gap is significantly larger than the funds you and your student can contribute, then the college is most likely not an affordable option

What You Can Do

Be your student’s co-pilot.
Assist your student by providing practical advice and guidance along the way. If you attended college, acknowledge that the process is very different from your own experience with a number of factors to consider other than just liking the “feel” you got from visiting your alma mater’s campus the first time. Offer reasonable suggestions and research the types of federal financial aid your student could potentially receive by completing the FAFSA — the Free Application for Federal Student Aid.
Determine your contribution toward college costs.
Discuss with your student how much you are willing to contribute toward college expenses every year of attendance. It’s important not to confuse how much you can afford to pay with how much you are able to borrow toward those costs. Under the Federal Direct Parent Loan for Undergraduate Students (PLUS) program, there are no protective limits on how much parents can borrow. Most financial experts agree you should not sacrifice your retirement savings to pay for a child’s college costs. Carefully consider the amount you can afford after paying for all of your own expenses and contributing toward your retirement account. Also consider if any discretionary assets can be sold to help with college costs.
Determine if the college is affordable for all of you.
Add your contribution to the College Funding Forecaster and discuss the results with your student. The “bottom line” figure shown in the tool may provoke a realistic discussion about college affordability and perhaps show a different pathway for your student than entering a four-year college immediately after high school graduation.

Next Steps

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