The "best" college for your student isn't the college with the highest ranking in a magazine or online poll. It's the school where the investments of time and money that you and your student make will generate the highest ROI and Return on Life (ROL).
Talk to your student about whether the schools on their short list find this ideal balance between tangible and intangible returns.
The Tangible Returns: Calculating ROI
According to Bankrate, the average cost of tuition and fees at public in-state schools was $11,610 per year in 2004-05. Out-of-state students paid an average of $30,780 per year. At private schools students paid an average of $43,350 per year.
And that's just fees and tuition. Room and board, books, a computer, and transportation can easily add tens of thousands of dollars to annual college costs.
To cope with those costs, the average student working towards a bachelor's degree is carrying over $29,000 in student loan debt, according to NerdWallet. For doctors, dentists, attorneys, and other professions that require advanced degrees, those figures soar well into six figures.
Ideally, the educational and professional benefits of a college degree should outweigh these costs -- and the sooner, the better. For example, doctors and dentists are generally high earners. But the extra years of schooling might delay their earning potential for a decade.
Do a little research about prospective schools and find out:
• What percentage of graduates are employed in their field or in graduate school within a year of graduation?
• How robust is the career services department?
• Does the school offer internship programs, co-op opportunities, and job fairs with top employers?
• How does the school connect students to its alumni network? Are there well-known businesspeople, companies, or government bodies that have particularly strong relationships to the school?
• Who are the professors in your student's intended school/department? What kind of research, publications, or industry recognition are they known for?
The Intangible Returns: Maximizing ROL
Yes, even with the staggering statistics around tuition costs and student loan debt, college should still be fun. As your child takes their first steps out of your home and into adult life, they should have opportunities to explore their interests, build relationships, and broaden their understanding of the world.
Some key factors to consider include:
Size: While big schools are exciting on gamedays, some students may have an easier time progressing academically and making connections at a smaller school.
Diversity: Will your student have opportunities to connect with people who have different perspectives and life experiences?
Location: Being close to major cities can make transportation easier and give students broader cultural experiences. Going to school closer to home might also cut down on some costs while still giving your student room to learn and grow independently.
Campus Life: College sports, intramurals, clubs, student organizations, volunteer opportunities, and fraternities and sororities will play a big role in how your student spends their time.
Wellness: Does the school have on-campus medical facilities, as well as counselling and other mental health resources? What's included in your student's meal plan? Are healthy eating and shopping options within walking distance?
Safety: Where are dorms, apartments, and houses located relative to campus? Are student safety programs (including shuttles) and campus police easily accessible?
College is a major transition point in your child’s life and on your $Lifeline. You may want to work together on a pros and cons list to help your child narrow down their options.
We would also love to be a part of this important dialogue. Let’s talk about how you’ve been preparing for college and if there are any adjustments to your Life-Centered Financial Plan that could help to set up your student for success.
