| Welcome to the panic room. It's more of a state | | | | career are identified. The schools offering that |
| of mind than an actual room and it usually infects | | | | major are a natural extension which allows us to |
| parents of college bound students as their children | | | | form a list of qualifying schools. From that list, the |
| enter their junior or senior year of high school; | | | | application of all other criteria may be applied. |
| the looming cloud of college selection and the | | | | These criteria may include any number of |
| daunting task of how on earth to manage the | | | | characteristics including school size, location, |
| college expense without destroying retirement. | | | | student to faculty ratio, even the quality of on |
| Interestingly, there is a very logical approach to | | | | campus food. The short list of possible college |
| this overwhelmingly expensive and complex task, | | | | choices is born. This is the logical approach to |
| which can take much of the pain and anxiety out | | | | college selection. This is the HEAD. |
| of the picture. A first things first system works | | | | Finally, and likely the most intimidating element of |
| for most any endeavor and college selection and | | | | developing a college plan is the financial aspect of |
| planning is no different. It is the Heart, Head, and | | | | higher education. Unfortunately for most parents, |
| Hands approach to college. | | | | financial advice or truths pertaining to college may |
| Think in terms of building a home. The first thing | | | | be largely myth-guided. |
| you might do is to begin imagining the qualities | | | | In general, there is a great misunderstanding of |
| that you would desire. The number of bedrooms | | | | financial aid eligibility. All too often the assumption |
| and bathrooms, the size and style of the kitchen | | | | is made that qualification for financial aid is |
| and living room, two-stories or ranch and the ideal | | | | reserved for the neediest of families. In fact, |
| location. This is the dream. This is the HEART. | | | | financial aid in some form is available for nearly |
| The next step might be to begin separating the | | | | every family regardless of wealth or income. |
| needs from the wants in order to identify the | | | | Therefore, the first financial step a family should |
| minimum standards by which our home must be | | | | make is to fully understand their eligibility. A visit |
| built. If we have a particularly large family, we | | | | to FAFSA is an excellent first step. |
| may need a certain number of bedrooms and | | | | Another common mistake is the assumption that |
| perhaps a large garage for storage of things | | | | a state school is a lesser expensive alternative to |
| other than cars. We may also expect to run a | | | | a private school. While there is great truth that |
| small business from the home in which case we | | | | the sticker price of college may adhere to that |
| must account for a home office. This is the | | | | rule, the actual out-of-pocket expense may |
| practical element. This is the HEAD. | | | | produce a significantly different picture. When aid |
| Finally, accepting that the bank account is not an | | | | eligibility is taken into consideration, the |
| unending supply of resources, we must begin to | | | | out-of-pocket expense for a private school |
| assign value to our wants and needs in order to | | | | costing $10k-$20k per year more than their state |
| recognize, prioritize and finalize the blueprints. While | | | | sponsored competitors, may in fact be less |
| we may want granite countertops, the budget | | | | expensive. Without understanding aid eligibility, an |
| may only account for textured and dyed | | | | unfortunate majority of parents and students will |
| concrete; an acceptable alternative. This process | | | | never recognize this opportunity. |
| is the financial evaluation where we define the | | | | Another factor to consider is the probability of |
| budget. This is the HAND. | | | | graduation within a 4 year time span. Statistically, |
| Now think in terms of building a college plan. The | | | | there are a number of studies which suggest that |
| Dream: What school, regardless of cost, | | | | private schools graduate their students within 4 |
| practicality, or any required measure of reason, | | | | years at a significantly higher rate than many |
| would our student wish to attend? What about | | | | state schools. Yet most families forget to include |
| the 2nd most desired school? A third and fourth | | | | the time it takes to get a degree as a cost |
| choice is welcomed. This step is simply about | | | | factor. Five or six years at a state school may |
| prioritizing the school choice based on criteria that | | | | wind up costing more than 4 years at a private |
| may or may not be rooted in any standard of | | | | school regardless of how they might offset the |
| your reality or perceived financial limitations. This is | | | | cost of education with their endowment funds. |
| the HEART. | | | | This process is the most powerful key to proper |
| With that list developed, we now take a much | | | | college selection. |
| different tack. We apply reason to our selection. | | | | Finally, a family must identify a budget for college. |
| The most efficient way of selecting a school, is to | | | | The timing of college expenses coincides very |
| first understand the desired outcome of attaining | | | | closely to the onset of retirement. If parents |
| a degree. With few exceptions, that desired | | | | overspend on college without recognizing the |
| outcome is a career in an area of particular | | | | impact to their other financial goals, particularly |
| passion for the student. Pursuit of a career in an | | | | retirement, they may not have time too recover. |
| area where the student demonstrates or | | | | This holistic approach to the financial aspect of |
| expresses no particular passion will be one that | | | | college is the HAND. |
| serves to frustrate, irritate and in the end, will | | | | Instead of an act largely dictated by convention |
| force the student to change. The change will be | | | | and the application of common lore, college |
| either to their career or their sense of happiness, | | | | selection is much better addressed with an |
| neither of which are particularly comfortable | | | | educated plan. If a family uses the HEART, HEAD, |
| undertakings. If that change is recognized while in | | | | and HAND approach, measuring wants, needs and |
| college, the degree focus may change and that | | | | financial ability, they will be handling a daunting task |
| invariably adds time and cost to the process. | | | | with great insight and will be much more likely to |
| Once the career is understood as the target, the | | | | enjoy the fruits of their labor. |
| major or majors that might best lead to that | | | | |