College Costs: Two Key Terms to Know
Cost is obviously a factor when applying to college, especially if it’s a top college. Can I afford this school? What kind of financial aid can this school offer me? Will I qualify for any grants or scholarships? These are some of the questions you’re asking yourself while you whittle down your list of potential schools. While Ivy Link does not offer financial advice, and we are not financial aid experts, we do want you to be familiar with a few terms as you prepare to apply for college.
Two terms you need to understand in this process are Need-Blind and Need-Aware. Need-Blind colleges will make admissions decisions without considering your ability to pay or any financial needs. Need-Aware colleges will take into account your ability to pay when determining whether or not to accept you as a student.
Before you decide one approach is better than the other, there are a few things to consider:
It’s true that, all things being equal, Need-Aware colleges might favor students who can pay outright without aid. This could be a problem for you if you’re not in that position. However, there are plenty of Need-Aware schools who will offer you great financial aid packages because they know of your financial needs upfront. On the other hand, Need-Blind colleges will accept you based on more academic factors even if you don’t have the ability to pay. But they may not offer you any financial aid. This means you’re accepted, but may not be able to actually attend.
Consider when looking at the cost of college the effective price vs. the sticker price of the education. The sticker price is the price you see when you look up the cost of school. But the effective price is the actual price you will pay given your family’s unique financial situation. The very top colleges will often offer great financial aid packages because of their generous endowments. So while their sticker price looks higher, you might actually pay much less than you would at a lower-ranked school. And even if you end up taking out student loans, you would still benefit from the higher-ranked school. Yes, the loans may seem like more in the short term, but the return on investment (career opportunities with higher salaries, network connections, etc.) will make up for the higher loans. That is, if you take your education seriously and make the most of the opportunities presented to you at the higher-ranked school.
Ultimately, the choices you make are up to you. Do what works for you in your situation. But just keep these factors in mind when looking at colleges. Again, we do not offer financial advice and we don’t know your family’s unique financial situation. All we can do is offer our opinion and expertise based on years of experience working in this field.
If you would like help discussing college options, or you would like help with test prep and tutoring to prepare for your upcoming exams, reach out to Ivy Link!
