Lately we have been seeing an inordinate number of very talented students opting to attend a community college. Most of the reasons given for this relate to the lower cost of attending a community college. In some cases a student did not want to put in a full effort in high school or did not want to take the SAT or ACT test in order to attend a four-year school. Whatever the reason for attending a community college when considering the cost factor these colleges may not always be your best choice.
Community colleges play an important role in the education framework of the United States. Over 45% of students attending college for the first time are enrolled in community colleges. About 50% of all post secondary students are attending a community college. When you dig deeper into the statistics you also find out that 39% of all community college attendees want a four-year degree. Only 23% ever complete this degree. It would appear that starting at a community college to obtain a four-year degree has some very high risks.
When comparing the cost of attending a community college can seem like a bargain. In most cases attending the local community college will cost about one-third the cost of attending the local four-year state college or university. When comparing the cost to private colleges and universities the community college will cost anywhere from 10% to 20% of a private university education. This relative bargain makes them an alluring option.
When calculating the total cost of a community college education you also need to take into account two other factors; the transferability of credits for courses taken, and the ability to obtain financial aid. Many students who attend these colleges who go on to attend the four-year college face a hidden penalty. Some of the credits for courses taken will not transfer to the four-year college. This requires the student to retake certain classes and therefore pay for the same class twice. It also means that the anticipated two additional years of college can turn into two and one-half to three years of college. Essentially a student can end up paying for five years of college, thereby making the two-year college investment more expensive.
The second factor to consider is the amount of financial aid a talented student could obtain at a community college versus a four-year college. The most needy students are going to get the largest portion of subsidized federal and state aid. This means that low-income families stand a good chance of receiving enough aid to pay for the largest portion of the two-year college or four-year college. As we move from the most needy into the ranks of middle-income families subsidized aid diminishes rapidly and most middle-income families find that they will have to pay for the community college education out of their own pocket. These colleges usually do not offer institutional aid from their own funds.
The four-year colleges and universities typically have institutional aid to offer to talented students. This means that while a middle-income family will have to pay their Expected Family Contribution the four-year school has resources to make up the difference of the cost of attending and what the family is expected to pay. These types of schools also have extra money on hand to attract especially talented students which can further reduce the cost to the family.
Private universities, with the cost of attending at five times the cost of a two-year college, can often end up being an even better investment for a talented student. Like the local four-year colleges the private schools can provide a significant amount of institutional aid to a family, reducing the out-of-pocket cost below that of the local university and the local community college. These colleges and universities know they are losing talented students to the lower cost colleges. They will often do whatever it takes to attract a talented student.
When you take into account all of the costs, the risk of not completing a four-year degree, the risk of credits not transferring to the four-year school, and the inability of community colleges to provide institutional aid, a four-year public or private university may turn out to be the best option for a talented student. I often ask families to follow the 25% rule when determining what schools to evaluate first. If your student is in the top 25% of their class, or top 25% on the ACT or SAT tests the four-year school is likely to be your best financial aid option.
Community colleges are often the best option for a student, especially if you are looking to obtain a two-year degree or certification in a certain field. In this case the four-year school would be a waste of time. For talented students who want to complete a four-year degree the risks of attending the two-year college and not having your education subsidized are very high for middle-income families. Knowing the Expected Family Contribution, the cost of attending, and the likely financial aid options at each type of school will allow the family to make the best financial aid choice. It is best to gather all the facts before making your final choice.
Timothy Wall is a partner in the group Independent Financial Aid Advisors (IFAA, LLC) which works with families to develop strategies for achieving the best financial aid packages for their students who want to attend college. The company provides a free resource guide at http://www.achievecollegeaid.com. You may contact Tim at trwall@achievecollegeaid.com.
No hay comentarios:
Publicar un comentario