Should Cost Determine Your College Choice?

October 8th, 2009

If you are like most students, figuring out how you’re going to foot the bill has become even more important than deciding which college you will attend. But should your impending tuition bill be the ultimate factor in your big decision?

It is true that college is one of the best investments you’ll ever make—if not THE best. But that doesn’t mean that you have to wind up in the poor house while you wait for that investment to mature. Here are a few important questions to consider as you make your decision:

What is your major? Don’t panic. It’s OK if you have no idea what you want to study. But for those of you who do, make sure you take your future career aspirations into consideration. Want to be a business major? Well, once this economy behaves itself again, you’ll be able to score a good salary coming out of school. Want to become a teacher? It’s an awesome career choice, but know that you’ll never command a Wall Street salary. Plus, most states, if not all, require a master’s degree to remain certified, so grad school is not exactly a choice anymore—and that means loans, loans, and more loans for you.

A paycheck should not sway your passion, but it should give you a reality check. Yes, you might very well have the talent to be the next big thing, but as any E! True Hollywood Story will tell you, even the A-listers had some lean years before they made it big. Check out the Bureau of Labor Statistics—it’s a great source for employment and salary information.

Do you want to attend graduate school? I know, it’s frustrating to think of a second degree when you haven’t even earned your first one. But if grad school is indeed a blip on your radar at this point, then you need to weigh it as an additional cost.

In fact, that’s exactly the predicament I found myself in when I was applying to college. I was accepted to what I believed was my dream school, which just so happened at the time to not award ANY merit scholarships. So I was looking at financing all four years of college. (Note to younger self—what were you thinking?) I knew that grad school was a possibility for me, so I ultimately passed on my first choice and accepted a scholarship offer at another college on my list. To my happy surprise, that college turned out to be my dream school. Sure enough, four years later, I enrolled in grad school, and I was very glad to have fewer undergrad loans to repay.

Are you loving life in your home state? You already know that state schools offer the best bang for your buck—an excellent education with major tuition perks for state residents. But did you also know that some state schools offer even more benefits to those students who remain in the state after graduation? A number of states have noticed a massive exodus of students after graduation, and in order to keep more of those well-educated residents, state universities–and even the states themselves--are offering additional scholarships to sweeten the deal. Some states even have the endorsement of their celebrity residents. Longtime Maine resident Stephen King used his speech to the graduates of the University of Maine to encourage them to make the state their permanent home. So if you enjoy living in your home state and plan on spending some quality time there after graduation, then do yourself a huge favor and check in with the state schools to see if you can cash in on some of that loyalty.

These questions are a good start, but don’t stop there. When it comes to your (and your parents’) hard-earned money, you should have lots of questions about how best to spend it. Got any you can’t answer? Post them in the comment section below.

–Barbara Bellesi

Entry Filed under: Advice, Budgeting, Financial Aid, General