Taking the Emotion out of College Selection
Chris and Susan are going to buy a car for their son, Julian. They have developed a list of criteria including safety features, gas mileage, and a target price range. Let’s assume for a moment, though, that you can’t just select and purchase any car you want, you have to apply and be accepted by the car dealer. Julian makes a list of possible vehicles including a Toyota, a Subaru, and a Ford that all meet the defined criteria. Just for fun, Julian throws in a Ferrari. “I probably won’t get accepted anyway,” he says. Chris and Susan agree to see what happens..
When car acceptance decisions are announced, all of Julian’s applications are accepted including the Ferrari! Chris and Susan are so proud of Julian and tell all their friends. Now they have a decision to make. How can they turn down the Ferrari after Julian has been accepted? Maybe it doesn’t tick all the boxes like gas mileage and safety, not to mention being way over budget, but it’s a Ferrari - and they have accepted Julian! They set to work looking for loans to make the dream a reality…
This scenario may sound ridiculous in the context of cars, but it is a common approach that families take in choosing a college. Some parents dictate where the student will attend from birth, often the parents’ alma mater. Others leave the decision entirely up to the student and have the financial means to support that choice, whatever it may be. But most fall somewhere in the middle, providing guidance, but letting the student take the lead in the search and selection process.
This is often the first major life decision a young person will make with some degree of autonomy. During the process, the student is developing a reference for how future decisions will be made. It is a learning experience – a great opportunity to teach objective, financially responsible decision-making skills. Later in life, when the student is booking a vacation, planning a wedding, or buying their first home, their decision process – consciously or subconsciously – will draw on this training. Will they buy a home that meets their needs and fits their budget? Or will they be lured by the dream home their realtor shows them that leaves them living paycheck to paycheck for years to come?
This is not to say that students should rule out every college that would require financial assistance. Many seemingly high-priced private schools give generous amounts of need-based and merit-based financial aid. Likewise, many out-of-state public schools have reciprocal arrangements or offer incentives to top students. Researching the practices of the colleges the student is interested in can reveal how affordable they may prove to be.
In addition, while it may be alluring to attend a college with a prestigious name, that may not be the school that would best serve the student. Some lesser-known schools excel in specific areas of study. In certain professional circles, those schools may be the better choice – not only from an immediate financial perspective, but also in how they support future career prospects based on a niche reputation and a supportive alumni network in the chosen field.
The key to taking the emotion out of the college decision process is having open and honest discussions about selection criteria, including budget guardrails, and sticking to them. There are over 5,000 colleges and universities in the US. Chances are that more than a few of them offer a great education in the chosen field, and some of those will be more affordable – or more willing to incentivize your student to attend – than others. Avoiding these discussions up front can also lead to more difficult conversations later. If a budget is never established, it will be much more disappointing to decide that Ferrari University is out of reach after receiving that acceptance letter.
Families can shift the narrative away from finding a “dream school” and hoping for admission at any price, and instead treat college like any other major purchase. Which schools offer the required features at the best value? Planning ahead and developing a college funding strategy early on will provide for more flexibility down the road. But when the time comes, if parents guide the student through a sound selection process based on objective criteria that include the family’s financial means, the result will be a better college choice for that student, and they will have a foundation for making good financial decisions later in life.
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