I’d like to share with you a very real story, although the names have been changed. You’ll hear variations of this story every year, from different sources. It’s a real shame because the college application process shouldn’t be like this, but all too often it is. Here’s the story:

Susie is a junior thinking about what college she wants to attend. But, here’s the problem: Susie hasn’t got the first clue what she wants to study or what she might want to do career-wise and isn’t planning on making any time to think about it.

BUT she has taken a lot of time to investigate one particular college (the one her friend told her that the cute boy in her AP Lit class was interested in, too – an added plus) and has decided that “Costalotta University” is the right one for her.

Susie’s reasons for choosing Costalotta U are flimsy at best (she tactfully decides not to mention the cute boy from her AP class), saying that the campus looks nice and it “ranks well.”

Susie’s parents, Jake and Kathy, feel “they’ve got this covered.” They make a good living, they’ve saved some for college. Cost-a-lotta U lists their costs at $55,000. They decide they can handle about $18,000 – $20,000 in college costs per year.

And, they figure Susie is smart, she’s sure to get a scholarship, right? They believe they can exit from the college experience with some money left in their pocket.

Susie’s “dream college” is about to become her parents’ financial nightmare.

She applies early decision and gets in, with lots of celebrating and “high fives” through the holiday season. In late March, Costalotta U sends Susie her financial aid package. Susie did get a scholarship for $6,000 per year. That plus a federal student loan of $5,500.

The college bill Susie’s parents have to pay: $43,500.

They’re now faced with three choices:

1. Tell Susie they tried their best but it’s not enough and she’ll have to go to the community college for a year (because Susie failed to apply to any other college thanks to Early Decision);
2. Drain their savings or deplete their retirement;
3. OR, borrow $23,000 for her freshman year - and every year she’s at Costalotta U. That’s $92,000 PLUS interest (an additional $44,000 in interest) to be paid off before they want to retire.

Are you worried that this could happen to you? How will you guarantee this won’t happen to you? What steps can you take right now to ensure that your outcome isn’t the same – or worse?

It’s time for an intervention – now, at the start of the college process. It’s too late at the end of the college process – after you’ve made the mistakes. Without one, you could be facing a college bill that is far more than you can reasonably afford.

“We’ve got this covered” may not be true. Jake and Kathy believed they “had it covered.” And they still made mistakes that are now depleting their savings, racking up expensive loans and jeopardizing not only their retirement but their younger son’s college opportunities. All to pay for Susie’s dream college, “Cost-A-Lotta U”.

You can’t fix it AFTER it happens; the key is avoiding the mistakes that will end up with you paying more for college than is absolutely necessary.

Your Assignment:

If even a tiny bit of Susie’s family’s story worries you, you need to start creating a smarter plan for college. The single most important step to get you started is to know where you’re at – you need to know the minimum amount of money the colleges are going to expect you to pay. In financial aid lingo it’s called your Expected Family Contribution. It provides the answers to a ton of planning questions, like:

- Should my child work? If so, how much?

- Should he/she take SAT prep?

- What kinds of financial aid will we qualify for?

- What types of colleges should we be looking at? Which ones should we avoid?

These are just a few of the questions that you should be answering if you want to get on track. The key to the questions you need to be answering are linked to your EFC – learn it NOW before you find yourselves in Susie’s family’s shoes.

Author's Bio: 

Jeanmarie Keller has helped thousands of students get into colleges they love while making sure their parents save a fortune on the bill. Jeanmarie is the creator of the Smart Plan For College System which teaches her client-families how to get noticed in the admissions office, get in at the colleges right for them and how to get the money they need to help pay the bill.

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