Deciding Who Is Paying for College
When discussing potential college attendance with your 9th grader, it’s important to be realistic about the cost of college as well as set expectations regarding who will pay for it. Rather than feel overwhelmed, arm yourself with essential information and prepare to have a more purposeful conversation with your student.
Why It Matters
- Various options have different costs.
No two colleges are alike in the programs they offer and in their individual costs. Peer, or similar, institutions (ie: community colleges) within a singular state will share some similarities, but their distinctiveness is defined more by their programs than costs. Attending college outside of your home state will most likely have higher costs for a non-resident student. - A full financial plan is essential.
Imagine telling your student that there is no more money available after the first two or three semesters. Having a plan to pay for an entire college career will help avoid that scenario. - Setting expectations early on prevents surprises later.
With a clear idea of the costs involved and who will pay them, either partially or fully, your student can plan more effectively for all four years of high school. Early planning also prevents procrastination and “sticker shock” when the first college bill arrives.
What Your Student Can Do Now
- Keep a future career goal in mind.
In a previous article (August Article One on your personal dashboard), the costs of college were defined by the types of colleges — public four-year, private four-year and community colleges. By knowing how much education is required for the career, your student can begin narrowing the options available. As your student’s interests evolve, they should re-evaluate career plans and associated training and education paths accordingly. - Become familiar with college and financial aid terminology.
As your student researches education and training options, certain terms and acronyms will be repeated. Terms such as associate and bachelor degrees, housing and meal plan, tuition and fees, and cost of attendance become more familiar as college websites are explored. Financial aid is full of acronyms like the FAFSA and EFC, as well as abbreviations like sub and unsub loans. Our handout of Important Terms to Know (PDF) is a good starting point to avoid feeling overwhelmed. Use our formula (PDF) if helpful at this early stage of college planning. Please be aware that the 2024-2025 FAFSA contains significant changes. New terminology has been introduced and is included in the handout Important Terms to Know. - Understand college costs.
An earlier article (August Article Two on your personal dashboard) pinpointed the costs that colleges typically include in their cost of attendance. Direct costs are those paid directly to the college while indirect costs — books, supplies, transportation — are other costs a typical student may incur while enrolled in college. If you haven’t already, develop a plan with your student as to which costs will be paid using savings, work earnings, a college savings plan, loans or a combination of some or all of those.
What Your Student Can Do Later
- Start a master list.
As your student explores career options, begin a list of them and match them to the level of education or training each requires. Add in the type of school that can deliver the education or training while also listing the school’s name that caught your student’s attention. Since this is only a starting point in your student’s high school career, the list will be very fluid so an electronic copy might be a more suitable way of storing it.
What You Can Do
- Keep an open mind.
You know your student the best. Consider their capabilities and strengths and research career options that are best suited to those abilities. Explore the various paths your student could potentially follow and offer encouragement and information without immediately discounting college attendance. - Don’t forget to save.
It isn’t too late to start saving. Numerous options are available with a few of the most popular being 529 college savings plans, UGMA/UTMA accounts, Coverdell Education Savings Accounts and Roth IRAs. Tax benefits exist within them, and for Iowans, the College Savings Iowa 529 plan is available through the state treasurer’s office. - Don’t compare yourself to others.
Your student and your family’s financial situation are unique. Keep in mind the goal is a successful outcome for your student, no matter which path is chosen or which school or training program is attended. Be honest with your student about how much you plan to contribute toward college. Will it be a percentage of the total costs each year? Will you pay for housing and meal costs since your student is no longer living at home for 9 months to a year? Making a plan now will help your student make informed decisions about the future.
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.