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“Paying for College Without Going Broke” author Kalman Chany on the steps to getting a college education without breaking the bank.
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-- we -- before the brag about how the cost of colleges skyrocketed.
Shooting up 57% twelve years in an effort to stem it.
The president today proposed linking federal aid to colleges and universities to their ability to control to -- costs.
But what can you do to bring down the cost of going to college joining me now cal Cheney president of campus consultants and author of the book.
Paying for college without going broke that's something great idea that I'm sure our viewers who -- -- -- I wanna start with this idea that the president had these -- gonna penalize institutions.
That don't do the right thing can now work.
It's gonna be hard I think to pull it off especially but the state schools they're dependent part of on this state legislatures.
To provide them with funding.
That is used to -- meet those course the private colleges is also difficult because there's concerns how -- they going to.
Maintain their quality are they gonna have to increase class -- is.
I can imagine they'll be a lot of screaming and crying if it when they try to do that let's look at take a look at the costs -- and and we have that full screen here at public four year schools.
In state students paying an average of 171000 dollars in in tuition fees room and board.
You see how this number goes up to 29000 per out of state students at private four year college -- pay nearly 40000 dollars a year.
They simmers just go up and up it and the amount they go up is completely and it and connected to inflation is much more than inflation.
Why did these costs spiral so quickly.
A higher education first was very labor intensive.
Type of service that's offered teaching students and also parents for what they want the students the amenities.
There's competition there are many people also with -- free pricing but those sticker prices on what people actually pay.
Many people get -- -- of that but there's perceived.
That if you charge more of the quality education is better in some schools have raised a tuition large amounts private colleges and applications have skyrocketed.
Because the perception that -- county -- a lot of fancy schools provide services that kids don't have to have wouldn't have to pay for.
People -- some -- that that offerings are frivolous.
It's difficult it's keeping up with the Jones is somewhat you know students they want better food in the cafeteria they want.
The -- that looked around for our -- -- want to rock climbing war in the lunch room right but the key is to realize in terms of the sticker price that's not what family should focus on.
And and the majority of people act colleges don't pay those prices that you -- -- well -- get -- -- -- -- -- that this -- -- figure out how to do that right now.
So the first thing you -- to take into consideration is the sticker price vs the net price -- you mean by ballistic price again is higher education is somewhat discounting industry's most people don't pay the full sticker price.
Sold to schools that these high prices but then they discount off of that in terms of -- offering financial aid grants.
Scholarships.
And other financial aid opportunities so what's really the key is not -- -- -- the sticker prices but what are you gonna pay of that.
How much do you pay after the grants and scholarships -- -- -- how much you pay out.
You just say be savvy about financially the what do you mean by that what what do I not know right now and I need to.
Think most people are clueless when they apply for financially.
They don't understand the forms -- understand the questions in my book paying for college without going broke we go over line by line.
What the answers how they impact how much -- you get and more important when -- child missing ninth to tenth -- what steps you can take.
To position yourself so when it is time to apply -- you're gonna demonstrate higher need in the eight formulas -- about tax benefits.
That's very important in a lot of people they forget to do that there are tax deductions there are tax credits.
There's some fine print involved with them.
But that's something also to to be savvy about there's some people may be that don't qualify.
For any financial -- but they may be able to get up to 2500 dollars a year and a tax credit that's on a deduction that's a full credit wolf -- Federal tax liability to pay for college so you need to view in terms of paying for college that there -- barriers.
Parts together there's no one magic 12.
Sorry I do want to ask you though about in the earlier you start saving the better off you're gonna be.
Right many people think if I don't -- -- all all just get more financially but rarely -- in the aid formulas.
Provide the assets are put that certain places basically kept in the parents' name vs the students.
That has a very minimal impact on someone's eligibility -- so as we say in the -- Earning interest on your money while it's grown to pay for college is a lot better than paying interest on -- -- the student comes out of that that's really true.
Quickly.
-- the last couple of years federal government has had to pull back on his loans how tough is it now to get Federalist.
Federal student loans virtually all students can get Stafford loans provided during the degree program at a school in making suspect and academic progress.
Those loans are still there parents can get plus loans if need be.
But of course the key is not so much -- about getting the -- -- wanna get the free money to grants in the scholarships so you wanna know how to position yourself.
When you apply freight the best advantage to he had the best shot up getting the lowest net price -- thank you great stuff and and well delivered I really appreciate your help thank you.
