FAFSA Delays Don’t Have To Mean Rushed Decisions: College Money Matters Shows How Families Can Use The Time To Gain A Clear Perspective On College Choice.

April 1, 2024, Larchmont, NY – With the US Department of Education’s recent announcement that colleges will not receive the FAFSA (Free Application for Federal Student Aid) information they need to determine financial aid offers until Spring, it may be a long wait before students learn how much financial aid they’ll receive from the schools that accepted them. The result may be that students and their families experience a great deal of pressure to make a quick decision on which college to choose.

However, there are productive ways that college-bound students and their families can use this time to their advantage. According to Nancy Goodman of College Money Matters, a nonprofit dedicated to helping high school students and their families make informed decisions about paying for college, “This time is best used to objectively evaluate each school on the basis of how well they serve the student’s future – as opposed to how much aid they may offer in student loans.”

The College Money Matters approach comes down to asking these three critical questions:

1. The Loan Question: How much will the student need to borrow to attend each school?
2. The College Choice Question: Can the student gain as valuable an experience from a lower-priced choice versus a higher-priced one?
3. The Career Question: Will the student’s likely major result in a career that justifies the cost of each school – and will that career also require an advanced degree, and therefore more years of college?

The Loan Question focuses on how much a school will require in loans, and the idea is to try to avoid as much debt as possible. As Ms. Goodman notes, “For many people, a loan may be necessary, because it’s just not possible for them to pay the full cost of college upfront. But it’s very important to remember that except for scholarships and grants, financial aid doesn’t lower the price of a college. In fact, financial aid in the form of a student loan actually increases the cost of college, because of all the added interest that accumulates over time.”

For that reason, College Money Matters suggests using the time before receiving financial aid offers to figure out the cost of attending a college as if no financial aid was offered. This takes away the temptation to see loan offerings as gifts or a way to save money. Only grants, scholarships or discounts can make a college a better financial deal.

How can families find out the potential cost of a college? One way is to go to that institution’s website, where colleges and universities are required to post their Cost of Attendance (COA) including tuition, room and meals. In addition, a helpful video and worksheet for estimating these costs in more detail can be found at this link: https://collegemoneymatters.org/calculate-your-costs-of-college.

The College Choice Question is a matter of deciding how much more a student will gain from attending one of the more expensive schools on their list versus one that costs less. Ms. Goodman acknowledges that there are a few “big name” schools that offer significant advantages in terms of credibility and connections, but that’s not the case for most of the more than 4,000 accredited colleges and universities in the United States. The factor that’s usually more important to employers is how well a student’s field of study in college relates to the career they’re aiming to pursue.

The Career Question. Perhaps the most fundamental way to determine if a particular college is worth the investment is by estimating the salary a student is likely to earn after they graduate, provided they get a job in their field of study. Ms. Goodman adds that students and families should also keep in mind which professions tend to require an advanced degree, as that will involve extra years of going to and paying for college.

To gain some insight into expected salaries, College Money Matters suggests accessing the most recent report from the National Association of Colleges and Employers, which is available through this link. Students can go to pages 14 and 15 and select their appropriate career area, which will display the “Average Salary” or “Adjusted Average Salary” for that profession. This amount should then be compared to the expected cost for each school, which can help in deciding which choice represents the best investment.

Ms. Goodman notes, “It’s not unexpected that people would feel the FAFSA delays are forcing them into a rushed decision about something that has a major financial impact on their lives. But this waiting time can be an opportunity, because it gives students and their families the chance to step back and consider their options from a more clear, objective, and unhurried point of view.” College Money Matters’ mission is to provide free and easy-to-understand information about paying for college to students and their families. The organization does not feature advertisements or sell user information; is unaffiliated, and does not sell any products or services. College Money Matters and its website, collegemoneymatters.org, rely on contributions and grants so that we are not beholden to private lenders, universities or other interested parties. College Money Matters is a 501 c 3 organization.

For more information or interviews, contact:
Nancy Goodman
Founder, College Money Matters
914 833-9234
ngoodman@collegemoneymatters.org