Paying for college when you can’t pay for college

Every year I consult with clients who have children applying to college and who don’t have enough saved–or don’t have anything saved–to cover the costs of a higher education.

In The New York Times, Ron Lieber has a good piece guiding parents–savers and non-savers alike–to figuring out how much a school might actually cost you and how you might pay for it.

People wanting to get a handle on both the cost of schools and the financial aid process can get started by going to the College Board and learning how to calculate how much you might be expected to pay for college.

The initial sticker shock guaranteed when you first see the cost for a year of studying and living at one of our finer institutions (I’m looking at you, $61,920-per-year Bennington!) shouldn’t stop you from learning more and having your child apply to schools. As Lynn O’Shaughnessy, a college consultant and friend of JoeTheTaxGuy, points out, the average grant to freshmen receiving aid now tops 50% of the cost of tuition & fees.

Another good site, from the National Center for Educational Statistics, is loaded with information on not just how much schools cost, but also what percentage of their students receive aid. Seeing that more than 85% of students at a school your child likes get at least some aid may help put a slightly rosier frame on this exercise.