Is the Price Right?

Before you go shopping for colleges, you should have some idea of whether you want a Chevy, an Audi or a Ferrari. If you want to reduce the cost of education, it helps to start in your price range to begin with. That said, you might not know what your price range is until you get some idea of what a few private schools and colleges are willing to offer in the way of financial aid. Sticker price is different than your net out-of-pocket expenses after all aid is considered.

The Price of Fame

Everyone knows that most boarding schools and Ivy League colleges are very expensive. Ivy League schools are famous for their price as much as for their prestige. Whatever the brand name is that you may be seeking, just remember that thousands of other children are in line right next to your son or daughter competing for that coveted spot on the admissions roster. At a famous private school or college, your child might not standout as much among the other students as he might at an institution with less prestige where the applicant pool might have lower average test scores and GPAs. Colleges often award bigger aid packages consisting of more grants and scholarships to those students whom they really want, whatever the attraction.

Given the student, the price of attending a more well-known college may be higher than it would be at an equally good college with a little less prestige and brand awareness.

Community College

There is no shame in attending a local community college for the first few years of college to complete the majority of the general education classes that most four-year colleges require. It gives the child the opportunity to test the college waters in a familiar environment and it saves money!

Two is Half of Four

Two-year degree programs are often an excellent way to get a great education in fast-moving fields that boast plenty of job opportunities. What's more, students get into the work force sooner than their four-year degree counterparts. However, don't be fooled into thinking that these programs are cheap, because they aren't. In some cases a family may spend more in the first two years of a two-year degree program than a comparable four-year program, but the good news is that you only have to pay that cost for two years. Overall four-year programs are almost always more expensive.

Satellite or Mother Ship?

The vast majority of state-owned university systems have one "main campus" and several "satellite" campuses located throughout the state. The cost of attending one of the satellite campuses is usually less than attending the main campus, even though the name on the diploma at graduation will be the same. For example, you can attend Penn State Altoona for about $1,500 less per year than you would pay at the University Park campus. It's just a longer commute to the football games.

College of Charleston or Stanford? - $20,000 Degrees of Separation

These colleges could fall in the famous category, but the point here is that one is a lower cost state school and the other a higher priced private school. For some common types of degrees, education, nursing and biology, for example, it might not "pay" to go to a private school that is $20,000 more per year when you might be able to get an equivalent education at a less costly college. Of course, this is no reflection on Stanford or the value inherent in a Stanford education.

When Should You Pay More?

If you start the search process with some sense of affordability and you find that perfect school where your child will mature academically and socially, then by all means pay a little extra if you have to. It will be worth it along the way and at the end.

"Sticker Price" vs. Out-of-Pocket Cost

The published price of a private school or college is not necessarily what you will end up paying, but it could be. Typically the only students who pay the full cost of attendance are those who have not received any financial aid on the basis of need or merit. Students who qualify for one or more forms of aid will have that aid amount deducted from the cost of attendance.