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5 Ways to Make College More Affordable

The value of a college degree isn’t what it used to be, but its importance certainly hasn’t diminished. In fact, in Sallie Mae’s report, “How America Pays for College,” 90% of families expect their student to earn at least a bachelor’s degree, with 54% expecting a graduate degree. Of course, if you’ve read any recent news about the financial details of college education, you’ll know that it’s also a foreboding prospect: there is nearly $1.3 trillion in total U.S. student loan debt, ongoing wage stagnation, and the prospect of enduring years of underemployment.

But it’s not all bad news. A notable paradigm shift is taking place: this year, a whopping 98% of current students are actively engaging in ways to make their education more affordable.

So how does a student and their family better prepare themselves? Here’s our list of the top five ways families can make college more affordable:

Understanding College Financial Aid Awards

by Judy Dahl

Helping your son or daughter choose a college is a complex process. Your student likely applied to several schools and completed the Free Application for Federal Student Aid (FAFSA) to see, based on your family's income and expenses, what you're expected to pay out of pocket for his or her first year of college. That amount is called the expected family contribution (EFC).

Each college that accepts your student sends a financial aid award letter that specifies what federal and institutional grants, institutional scholarships, federal loans, and work study funds your son or daughter would receive for attending that school freshman year. Be aware that financial aid offers might expect your family to pay more out of pocket than your EFC specifies. (See sidebar for definitions).

You compare the letters to determine which school is offering the best award package so you can make an informed decision about which college to attend. Sounds simple, right? Well, not really.