Anita Martin

In the not-so-distant past, a new car cost the same as it costs to attend one year of college today. So how can you prevent the cost of college from keeping you or your child from pursuing higher education?
On Oct. 30, Steven D. Lamb and Robert DeCock presented a workshop designed for parents and students titled "Save on College: How to Effectively Prepare to Ensure College Success." It was the first of several free workshops being hosted this fall by the Madison nonprofit American College of Planners, a group committed to helping with the daunting task of preparing for college. See sidebar for upcoming workshop dates.
Lamb began by sharing why he educates people about the college-application process. Not too long ago, he said, he was a talented high school student in Sheboygan taking advanced placement and accelerated classes. "I started off with 60 credits — as a junior — when I started at UW-Madison," he said. Lamb's father, a teacher, and his mother, a part-time X-ray technician, also hoped to send his two younger siblings to college in a few years.
His first year in college, Steve Lamb received the standard $3,500 in financial aid but no scholarships or grants. He wrongly assumed that because he was denied scholarships the first year, he would be ineligible in subsequent years, which often is not the case. He came to realize that had his situation been remedied, "I could've gone almost anywhere to school for very nearly nothing."
Lamb and DeCock organized Midwest Circle of Neighbors, which has just been renamed American College Planners to more clearly reflect the group's mission, "mostly through private benefactors." There are shortfalls in the information the government provides on how to secure funding for education; there are also shortfalls in how much guidance counselors can do for individual students, especially given the high ratio of students to counselors (325:1 in the Madison Metropolitan School District), he said. Lamb and DeCock, both of whom are now certified college planning specialists, realized that "someone has to step in and fill in the gaps."      
DeCock then described how he got involved with college planning. The youngest of six, he started college in the 1980s in South Dakota. He eventually got his undergraduate degree in economics and went back to school in Germany for his master's degree. 
One year, his sister, a mother of eight kids, asked him for advice on finding the money to send her children to college. He realized that he really didn't know but decided to find the answer.

College access vs. college success
What exactly is college success? For many, the question is, will my son or daughter able to get into the college s/he wants to attend? That's college access. College success, the presenters said, is attending the most appropriate school for the career of your choice, graduating in the least amount of time (a four-year degree in four years), graduating with the fewest loans and out-of-pocket expenses, and being "successful and happy in your career."
Choosing the proper school is paramount, Lamb and DeCock stressed, since the wrong fit leads to high attrition. The freshman attrition at four-year colleges is 25 percent nationwide. Only 35 percent of students actually graduate in four years; most take five to six years to obtain a degree. Factors contributing to this trend include changing majors, changing schools, and selecting a school simply because that's where your friends are going. The current freshman attrition rate at two-year schools is 50 percent.
Then there are the rapidly rising costs. Between 1990 and 2005, college costs went up 5.9 percent, while average income in the U.S. went up less than 2 percent annually. Fewer than 4 percent of families have more than $5,000 set aside for their child's college costs. "Perceived financial means denied almost 500,000 students a college education last year," American College Planners say.

Realistic expectations
Most parents want to help their kids through college, Lamb and DeCock believe. Research shows that over 90 percent of parents expect to pay at least some college expenses, over 40 percent plan to completely cover college expenses, and many sacrifice their retirement security to do so.
Nearly 70 percent of parents think colleges will "present an award package they can reasonably afford." This is where the big discrepancies come in: between what folks "believe is going to happen when they go to college and what actually happens," with regard to funding.
Then there is the issue of job satisfaction, or, more accurately, the prevailing discontent. Studies show that over 60 percent of adults under 25 aren't happy with their jobs. "Eighty-four percent of all workers [nationwide] are not in their dream job," says Lamb. Many are underemployed, working in careers that did not require the specific degree they obtained. There's a relationship between where you go to college and what you pursue as your degree.  
The presenters encouraged people to avoid the typical path of selecting a college first and then picking a major and a career; instead, start with the end in mind. This will help ensure your job satisfaction when you enter the workforce and avoid having to go back to school because your job is boring or you can't find a job in your field.
Rather than choosing your college based on where your friends are going or where your parents think they can afford to send you, "start from within," says DeCock. He encourages young people to ask themselves: "What does my heart want to do?" Students should think about not only what they are good at, but what they enjoy doing. "Think about — four or five years down the road — what will your first job be like?"
Lamb and DeCock find that those who spend time job shadowing well before applying to colleges have "a much more accurate perception of the career they want to do. If you have an inclination to go into that field," DeCock said, "I really encourage you to try to hook up with someone in that field." Talk with them about what they actually do on a day-to-day basis, what they like and don't like about what their job and profession entail, etc. Other ways to acquire experience and exposure include volunteering while in middle school or early high school.
After deciding on a career, find out what training, schooling, and major the career requires and then look into which colleges specialize in and recruit for that particular major. DeCock and Lamb encourage students to make a large initial list of 30 to 50 colleges that fit their criteria and then spend the rest of high school narrowing the list down to 10 or 12 possibilities.  

College entrance exams 
What about standardized tests, such as ACTs and SATs? "ACTs are a little more popular in the Midwest," Lamb explained. The SAT, he said, is more reasoning and logic-based. "Colleges can convert the ACT score to the SAT score and vice versa, but if you take them both, you know which you do best at" and can then can study and retake them to bring up your scores - if you start early.    
Colleges are classified according to whether they are international (like Yale), national (Carleton College in Minnesota), state (UW-Madison), or regional (Beloit College or Marquette University). Important factors to compare include the median SAT and/or ACT scores, the percentage of students in the top 10 percent of their high school graduating class attending the school, the student-retention rate, the four-year and six-year graduation rates, and the percentage of students from out of state. Knowing a school's average SAT and ACT scores and what percentage of students are in the top tier of their class helps you to focus on schools that are likely to accept you.
"There can be vast differences between schools that are kind of on the same level," Lamb said. "Schools that recruit essentially the same students can do substantially different things with them."

Take-home messages
One of the key take-home messages of the workshop was: "Do not limit your options based on perceived costs." Why not? There's no way of telling in advance which of the colleges you've applied to will come back with the best offer. Things also differ a lot from year to year, in terms of how your background compares to that of other candidates in a given year, something Lamb wishes he'd known when he was going to college. "Maybe it's not looking too hot this year, but maybe next year that school will be recruiting for students just like you," he said. Every year that you go to college, he said, it is essential that you fill out what's called the FAFSA (Free Application for Federal Student Aid), which is also the gateway to merit-based aid.
There are two different ways to calculate what your contributions are going to be at a college: the federal methodology and the institutional methodology. The institutional methodology involves a customized application and allows for consideration of special circumstances, such as an ill parent's anticipated medical expenses, which will impact family finances. Lamb cautions people not to assume that it's not worth filling it out.
Lamb explained how income is calculated for students and for parents and which assets need to be listed on applications. "Lots of families disqualify themselves for aid by putting parent income [such as alimony] down as student income," he said.
Lamb talked about his own search for funding for college. He wrote 100 different essays for private scholarships and was awarded zero. A lot of students spend a great deal of time and resources appealing to private sources for merit scholarships (like Knights of Columbus and Rotary clubs), he says, when their time would've been better spend focusing on appealing to the campuses. 
Knowing how much college is going to cost and knowing roughly how much financial aid you're going to get requires planning. Lamb used an example of two families of the same income level to demonstrate how having assets in the right or the wrong place can greatly impact how much college will cost a particular family. By employing correct strategies, you can maximize financial aid. This may involve moving assets or spending them, depending on the situation.

Earning, not writing checks
Lamb says kids in low-income families tend to go to state schools because they're closer, cheaper, and involve lower commuting costs. "Why didn't they apply for other schools? Sticker shock," he says. He compared UW-La Crosse (about $13,500/year) with Ripon College, a private school ($33,000/year). "What does Ripon do about three times better than UW-La Crosse?" he asked. "Get students out the door in four years … They could've been making checks; instead, you're writing checks," he lamented. 
People are often unaware of the real costs of attending college for additional years. Not only does tuition cost, on average, $18,000 to $45,000 for each extra year, but opportunity costs are also steep, i.e., income that would otherwise have been earned. Those attending public universities lose more than $65,000 for each additional year in college; folks in private schools miss out on more than $90,000 annually. (Source: National Association of Colleges and Employers, 2008; based on average starting salary of $49,224 for a college graduate.)
The presenters reviewed timelines for applying to colleges as well as applying for financial aid. It's very important to get your financial aid applications and materials out as close to Jan. 1 as possible, they stressed. Most people submit their FAFSAs after they submit their taxes; but by then, many of the funds have already been allocated to other students. Rather than waiting for your employer to send your W-2s, you can estimate your income based on the previous year for the financial aid applications and then send the schools your actual income figures, etc., after you get your taxes done.
The presenters detailed, step-by-step, the recommended way to apply for college. They encouraged students to get accepted to at least six schools. "Let's say you want to go to Edgewood College," Lamb said. "Find colleges that compete with Edgewood for the same type of students. We encourage you to apply those schools, so [that] you can get a bidding war [going] for your student."
The presenters emphasized that sound planning for college is not possible "until you know what you are expected to contribute. You cannot make up for lost ground in a few years."
More than 40 percent of folks fill out college financial aid forms incorrectly or incompletely, they also noted, which can jeopardize much-needed funding. Many folks fail to fill out FAFSA forms altogether, and less than a third of parents with college-bound kids make use of tax credits.
Note: This article just scratches the surface, when it comes to preparing for and paying for college. I strongly encourage you to attend one of the upcoming free workshops and find out how you can help your son or daughter make college a reality. See sidebar on first page of article for dates and times.   —A.M.