Planning for College

A connection between thinking about college and actually planning for college can sometimes be forgotten during family discussions about college attendance. College and career paths are unique to each individual, but with research and a variety of tools, the connection can be made using an informed and customized guide along the way.

Why It Matters

Planning and saving are essential for a successful postsecondary journey.
Results of a 2023 annual survey found that families’ out-of-pocket contributions covered half of college costs with parents’ income and savings funding 40%, followed by free money from scholarships and grants. Additionally, only 53% reported having a plan for how to pay for all years of college before the student enrolled, a decrease from 2022. Families confess to being confused about completing the Free Application for Federal Student Aid (FAFSA), which provides access to grant, work-study and federal loans each year. About 30% of them bypass it altogether, claiming the form is too complicated or believing their income is too high to submit the FAFSA.*
College is worth the cost.
College isn’t only about achieving a degree or certificate. When a student graduates, society benefits with a more knowledgeable and experienced employee who is more likely to volunteer and participate in community and civic life, including voting. Studies show that college graduates live a healthier lifestyle and have a longer life expectancy. They are also more likely to engage their family members in educational activities and have an improved lifestyle with a higher degree of personal satisfaction and well-being. Additionally, the same annual survey in 2022 found that families who made the investment in education believe that a college degree will create opportunities that the student wouldn’t have had otherwise (88%). However, families are very mindful of the cost of college with 78% of the number surveyed in 2023 saying they eliminated a school from consideration based on its cost, which is a decrease from 2022.
There are personal financial benefits.
Findings continue to show that degree holders earn more over their lifetimes than those with a high school diploma. According to 2021 research from Georgetown University’s Center on Education and the Workforce, a high school graduate earns $1.6 million, while an associate degree holder earns $2 million. However, at least one quarter of high school graduates earn more than an associate degree holder. A bachelor’s degree holder earns $2.8 million during their career, 75% more than if they had only a high school diploma. Lifetime earnings increase for advanced degree holders. However, one quarter of workers with a bachelor’s degree earn more than half of workers with a master’s or a doctoral degree. These findings indicate that lifetime earnings vary due to a number of factors, including occupation, industry, gender, race, ethnicity and field of study.
The college major matters.
There is a great deal of variation in median lifetime earnings between different college majors. Additionally, there is a variation in lifetime earnings by gender. A Georgetown’s Center on Education and the Workforce paper in 2018 (PDF) reported that a woman with a bachelor’s degree earns the equivalency of a man with an associate’s degree, indicating the gender wage gap persists.
There is value beyond the degree.
Findings from a recent study performed by Strada Education Network revealed that alumni who developed key skills during college earned $8,700 more in their first year after graduation than peers who reported lower levels of skill development through college. Skills are gained both inside and outside the classroom, with quantitative skills, critical thinking and problem-solving being associated with higher earnings. While beneficial for everyone, strong skill development does not appear to be associated with income gains for Black alumni. Consequently, Strada recommends that colleges ensure that all student populations have access to experiences that produce valuable skills.
Some scholarships are specific to a declared major.
With applications completed and a final college decision perhaps awaiting the anticipated financial aid offers in February or March, your student can delve further into each school’s departmental scholarship listings that pinpoint the degree program your student has declared. National free scholarship searches can be conducted as well using specialized filters. Avoid paying a fee to find scholarships, as all scholarship searches should be free.

What Your Student Can Do Now

Experience the Return on College Investment tool.
This ISL Education Lending tool has functionality where users can select both a degree type and the career field they are interested in. It then displays specific jobs that fall into that category. For example, selecting a bachelor’s degree and a career in elementary education returns multiple career options in addition to elementary teacher. Choosing a particular job will display more information about that career, its approximate starting salary and projected future openings, as well as the potential financial return on investment in multiple educational scenarios. Your student will also find out the percentage of college graduates from related majors who are currently working in the career.
Explore the Occupational Outlook Handbook.
The Bureau of Labor Statistics manages this vast Handbook, where occupations can be selected by median pay, education level, on-the-job training and job projections. Users are able to select a variety of education levels from high school diploma to doctorate or professional degree. With limited time remaining to plan high school coursework and decide on the proper educational path, there is some urgency now in defining the future career.

What Your Student Can Do Later

Enter for a chance at a $1,000 college savings deposit.
The ISL Education Lending Scholarship is a good place to start a scholarship search. Registration will open January 8, 2024 (through March 29, 2024) for Iowa high school students and their parent or guardian at https://www.iowastudentloan.org/scholarships/isl-education-lending-scholarship.aspx. The scholarship awards $1,000 College Savings Iowa deposits, which can be used when your student is ready to pay educational expenses.
File the FAFSA later this month!
Federal Student Aid has indicated the 2024-2025 FAFSA will be available at the end of December, which severely shortens the timeframe that financial aid offices have to send financial aid offers in order for students to make college decisions this spring. It is absolutely imperative that you and your student create your FSA accounts and obtain your individual FSA IDs NOW. Then complete the FAFSA as soon as it opens later this month.
Plan to earn while learning.
If your student has held a job during high school, this early work experience has most likely formed good habits and strong time management skills. These good habits should continue into college, if your student attends. Many times, college freshmen delay getting a part-time job citing the need to acclimate to academic expectations. However, research shows that college students who work have higher overall grade point averages. Additionally, the common perception for decades has been that of a full-time residential student enrolling in a four-year college immediately after high school graduation. As circumstances and expectations changed, this norm is no longer the case. Work skills and competencies are an important commodity in today’s 21st century economy and can give your student an edge in the job market later on.

What You Can Do

Customize your plan.
Career and educational pathways have varying costs and experiences. By now, your family discussions with your senior have included college attendance — most families agree that it’s an investment in their student’s future. There’s no better time to evaluate the return on that investment by inserting a financial component into your postsecondary discussions to be confidently prepared for the costs.

How America Pays for College 2022
How America Pays for College 2023

Next Steps

Be sure to complete the survey questions at the end of this article to be entered into the 529 deposit giveaway!

Additional references, handouts and talking points are available in the right sidebar to use at your leisure. They may prove beneficial to reference now or after receiving future emails – we’ll leave it completely up to you. Use our emails like a recipe for a successful outcome — assemble the recommended ingredients and then follow accompanying directions to add flavor and depth.