College Choice: How Important is Financial Fit?
Seniors: Acceptance letters are in! Seniors have less than a month to finalize their college choice. Most seniors have applied to multiple colleges, and potentially found two, three, or more acceptance letters sitting in their mailbox or popping up in their inbox. While some find the choice is a no-brainer, others are stumped. Out of five acceptances, perhaps not a single one stands out as the golden opportunity. So, how do you choose? Does the cost matter? How do you measure your ROI (return-on-investment)?
Your choices may be pitted against one another as equally good academic and social fits, but what about the financial fit? Which college measures up as the best investment based on financial returns for your student?
ROI, as defined by PayScale, refers to the college’s net cost combined with the length of time required to earn that amount after securing a job.
Recently, PayScale released their yearly list of top colleges based upon ROI. They offer a quick review of their top performers in their “Best Value Colleges.” According to PayScale, majors and career choices matter as well as college choice. Science majors would see Cal Poly and San Jose State topping the chart, while students of Economics would mull over Rank #1 University of Pennsylvania and UC Berkeley at #2.
“Results May Vary”
The report lists estimated ROI, the average 4 year cost (with and without financial aid), graduation rate, and more. Keep in mind the data is mined from average statistics at each college, not data down to the individual student.
Results do vary by student. Every student will pay a different amount for college (it’s true!), so you’ll need to calculate your own ROI, using PayScale’s salary estimates for the career you are seeking. ROI provides an analytical, practical means to assist in determining your final college choice.
We recommend keeping financial fit in the forefront of your decision making process, along with academic and social fit. The cost of college does matter to the majority of families. Consider ROI as one determining factor to make your ultimate decision.
Westface College Planning can help you navigate the college planning process from start to finish. To learn how we can help you call us at (650) 587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.
Photo Credit: circulating
Ready for your own success story?
If you’re a typical parent with college-bound students, you’re probably overwhelmed. You want to help your sons and daughters make the right choices and prevent overpaying for their education. You’re not alone! We’re here to help. Schedule your free consultation today – click below to get started!
Catch our free, on-demand webinar:
How to Survive Paying for College
Join Beatrice Schultz, CFP® for our on-demand webinar, where she provides parents with the exact steps that often greatly lower the cost of college, even if there’s little time to prepare.