Are you someone who still thinks that only “poor” people get financial aid for college?
Let’s debunk that silly myth right now…
In today’s college world, demonstrating financial ‘need’ does not mean that you’re poor. It just means that you can’t necessarily pay the whole sticker price (anywhere from about $20,000 — $70,000 per year).
Ummm…almost no one (as in less than 3%).
The good news is that you’re NOT really expected to. College is a business.
Two-thirds of all college students are getting a ‘tuition discount’ and 40% of families earning more than $100,000 are getting five-figure discounts for college.
Shouldn’t yours be one of them?
We certainly think so.
According to a report released today by the National Association of College and University Business Officers, the average institutional tuition discount rate rose to it’s HIGHEST LEVEL EVER in 2015-16: an estimated 48.6 percent.
Now, Here’s What That Means in Plain English and Why It Matters
– There is an intentionally significant difference between college pricing today and the way it was done back in the 1980s.
– Today there is a sticker price and a net price for college.
– Many colleges deliberately set their sticker prices high to appear prestigious and to attract more applicants…and then they offer steep discounts to make their school more affordable. (Note that both attracting more applicants and offering lots of financial aid as discounts are metrics that can boost a college’s ranking).
– Now, the difference between that sticker price and net price is known as the ‘DISCOUNT RATE’, and it is provided to you in what is commonly known as a scholarship or a grant.
– So, if a college has a sticker price of $65,000 and you get the average discount rate of 48.6%…you should pay a net price of $33,410. Therefore your discount—or your child’s scholarship/grant—is $31,590 per year. Not bad, right?
– You might want to think of the whole thing as you would think about ‘buying a car’. There’s a manufacturer’s suggested retail price (sticker), and then there’s the actual negotiated LOWER price that the dealer is expecting you to pay (net). The difference reflects the discount rate you get.
– In college, the discount rate is often far more significant (as in better). It’s been going up steadily for a decade to what is now 48.6% on average at private universities. It can be even greater at some colleges and for some students.
So Pete and Jill, what’s the catch?
While ALL COLLEGES DISCOUNT, they do not necessarily do so in the same amount or for the same reasons.
Many students fail to maximize their opportunities in college because they start off making the wrong college list in high school.
They wind up applying to the wrong colleges (meaning, the ones that are less likely to offer a discount to them), or to too many colleges, or to the same 15 colleges everybody else in their school is considering.
We’re not going to let that happen to your student.
That’s why this month’s Charter Club action plan, our new LIST BUILDING TOOL and our live coaching call is all about building a college plan the right way…one that includes colleges that meet your child’s needs AND your budget.
Members and clients can go here to log in and sign up for Wednesday’s call. If you can’t make it live, don’t worry—a replay will be posted in your private member area and emailed to you on Friday.
Want to join the call but not yet a College Concierge Member?
Go here to join RISK FREE and gain instant access to Wednesday’s live coaching, our list building tools and the right advice that you’ll need to help your child build the most affordable and appropriate college plan for him or her.