Making a list and checking it twice: Navigating the college search process

The college search and admissions process can be both exciting and overwhelming for families as they work together in hopes of identifying the “right” choice for their student. Factors including location, campus social life and academic programs all need to be considered. And with the cost of a public university four-year degree exceeding $100,000 and average private school exceeding $200,000 – these decisions can be financially life-altering for many families.[1]

This process can feel daunting for even the best planners among us. From visiting campuses to deciding which tests to take, it’s easy to bypass the basics – like factoring in a potential major or how the family plans to pay for college. The earlier a family sets the expectation in what they are looking for in a college and how much it will cost, the more confident they can feel throughout the process.

A financial professional can help

Finding the right college or university is about more than academics and the social scene—it’s also about the right financial fit. For some families, college tuition is one of the largest expenses they will have. Financial professionals can help set expectations and factor paying for school into a family’s long-term plan, earlier in the process. This can help alleviate the pressure some families feel to pay enormous sums for what they see as the “right college,” whether out-of-pocket or through financial aid and loans. For example, some discussion points:

• Have you discussed your finances as a family and how you expect to pay for college?
• If financial aid is less than expected, how might this affect school choice?
• What’s your debt tolerance and much do you want to borrow for school? One rule of thumb is that total student loan debt should not exceed expected first year’s income.
• Does the potential career path offer opportunities for loan forgiveness, such as programs available for those working in public service or nonprofit? [Learn more about Public Service Loan Forgiveness here.]

These are critical conversations to have – not only for narrowing down options, but also in understanding how important financial aid may be to you. Because financial-aid packages usually arrive after the offer of admission, families often delay honest conversations about money until it’s too late to apply elsewhere. A trusted financial professional can help factor the implications of a less-than-expected financial aid package, or how much debt to take on.

Have conversations with confidence

These conversations are a crucial step in the college search and admissions process. That’s why AIG Retirement Services is providing tools to help guide these discussions. We partnered with Jeffrey Selingo, a New York Times bestselling author and Higher Education expert, to publish?Navigating the College Search, a two-part guide:

• Part 1 – Finding the Right Fit, outlines how to prioritize wants and needs and how to best understand cost, including key terms to know and conversation starters.
• Part 2: Getting In and Determining the Value (ROI) of a Degree dives deep into the admissions process, what is most important when applying to college, and ways to determine the true value of a degree.

The true value of an education goes beyond the cost

Every school offers its own unique value to those who enroll – there’s no “one-size-fits-all” when it comes to what’s considered “best.” The emotional connection we have with our favorite schools is a part of what makes them so special – but with any long-term commitment, it’s important to collect as much information as possible, before making a decision.

I encourage everyone involved in the college search and admissions process to read and share these guides. If you spend 30 minutes on this as a family, I believe you will be much more prepared throughout the entire process.

Click here for the Navigating the College Search guides.

[1]?Education Data Initiative, https://educationdata.org/average-cost-of-college

Rob Scheinerman is CEO of AIG Retirement Services and a financial services veteran who believes that every American can have a secure retirement. Under his leadership, AIG Retirement Services is focused on helping employers design best-in-class retirement plans, delivering easy-to-understand financial education programs that help build confidence, and ensuring employees across all of the organizations it serves have access to sound financial guidance.