The college cost crunch
The Associated Press
May 15, 2005
NEW YORK — Cheryl and Glen White were certain their son, Justin, would get into the college of his choice. After all, the 18-year-old is an A student who earned perfect scores in mathematics and chemistry on his college entrance exams.
But their joy that he's been accepted to study engineering at Harvey Mudd College in Claremont, Calif., has been dampened by the realization that they've got to cover most of the $45,000 it's going to cost each year for tuition, fees, and room and board.
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Like thousands of parents around the country, the Whites are grappling with the equivalent of sticker shock as they sort through acceptance letters from colleges and universities.
According to the nonprofit College Board, families now pay an average of $11,350 a year for tuition, fees and room and board for in-state students at public, four-year colleges and universities; the costs for private colleges and universities average more than $27,500 a year.
Most families haven't saved that kind of money, so experts say it's important that they seek as much funding as they can through grants and scholarships, then look at government-backed loans, private educational loans — even home equity loans — to cover school costs.
The Whites, who live in San Diego, are looking at a combination of funding sources.
Justin has scholarships, including one from the college, and plans to take out a federal Stafford loan of $2,625. Cheryl White, who is a teacher, and her husband, a retired Navy officer who works as a defense contractor, will tap their savings and are looking into a PLUS loan, the acronym for the federally sponsored Parent Loans for Undergraduate Students.
''My son has promised to help pay back some of the loans after he graduates,'' Cheryl White said. That will help because Justin's younger brother, Joel, a high school sophomore, also hopes to go to college, she said.
Martha Holler, a spokeswoman for Sallie Mae, an educational lender based in Reston, Va., said the first thing families should do is carefully compare the financial aid offers their child has received.
''Be sure to read the fine print,'' she added. ''One college might offer a $1,000 grant, another $500 but make it renewable based on grade point average.''
Then, she said, families should make sure they respond by the college's deadline, or they could be disqualified for aid.
Holler added that families who need to borrow money ''should begin the process now'' so the funds are available when needed in the fall. Among the options:
James A. Boyle, president of College Parents of America, a parental support network with headquarters in Arlington, Va., said many parents are surprised when they find out how much they're expected to contribute to a child's educational costs.
''Many middle class families have an unrealistic expectation of their eligibility for aid,'' he said. ''They may not have a lot of cash, but they have high incomes that make them ineligible.''
On the other hand, there is aid money available at most schools, but ''unless you ask for it, you're not going to get it.'' That means it's necessary for parents or prospective students to stay in touch with a college's financial aid office.
Boyle also believes that parents should have a long talk with their children — sooner rather than later Ñ about who is going to pay for what.
''Some families don't want sons or daughters to take on debt,'' he said. ''But it makes sense for the student to take on some of the responsibility.''
College graduates likely will have the earning power to pay back student loans, he said. Their parents, meanwhile, probably have other demands on their money, including funding the educational needs of other children and saving for their own retirement.
College Parents of America offers a guidebook called ''Crunch Time: Solving the College Acceptance Dilemma.'' It's available for $4 at the group's Web site, www.collegeparents.org, or for $5 by calling 1-888-761-6702.
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