When choosing a college, consider it a major consumer purchase—like a house. You would not tour million-dollar homes with a $500K budget.
For cost-conscious families, affordability should be a key factor early in a college search since colleges now range from $20K to 100K a year.
ACC Tips:
North Carolina (NC) students typically pay less to attend NC public colleges even when they have very strong academic profiles.
Most ACC families earn too much to qualify for need-based aid beyond federal student loans (self-help aid).
NC public colleges do not give much merit aid beyond the “instate scholarship” or very selective scholarships (NCSU Park, UNC Morehead Cain, UNC Charlotte Levine, and ECU Honors/Brinkley-Lane).
Keys to Success:
Understand the Two Types of Financial Aid
o Merit Aid: Awarded based on student achievements, talents, or other qualifications within the college’s institutional priorities.
§ Some nonbrand private schools award most students “merit” aid, like a Kohl’s coupon (AKA discounting).
§ Some schools use merit aid to recruit strong students or the type of student they need. In some cases, that can be a full-pay family.
o Need-Based Aid: Determined by a family’s financial strength, as assessed through required financial aid forms.
Understand the FAFSA and CSS Profile Methodology and Purpose
o Colleges require the Free Application for Federal Student Aid (FAFSA) and sometimes the more invasive and longer form, the CSS Profile, to assess family wealth and financial strength.
§ FAFSA-only schools tend to offer little, if any, need-based aid.
§ CSS Profile schools tend to offer primarily need-based aid.
§ Check out this podcast for more info on types of aid.
Reality:
Colleges Consider Ability to Pay, Not Willingness
o Financial aid offices assess what your family can pay rather than what you want to pay. This plays a significant role in how much need-based aid you receive.
Prestige vs. Merit Money: Students rarely get both!
o Students often must decide between chasing a prestigious college brand or maximizing merit scholarships. Rarely can you get both prestige and merit.
Ivy League Schools Offer Only Need-Based Aid
o Unlike many nonbrand private colleges, Ivy League institutions and many of their friends do not offer merit scholarships. Their financial aid packages are solely based on financial need.
Most “free money” comes from the school a student attends.
o Outside scholarships account for less than 7% of all awarded aid since most financial assistance comes directly from a student's college.
o There is no magic scholarship pinata that a student hits and out drops free aid beyond discounts or auto-merit.
ACC TIP: Chasing outside scholarships takes energy, effort, and essays!
Nonbrand Private Colleges: Sticker Price vs. Net Price
o Most nonbrand private colleges significantly markup tuition costs and then discount them—sometimes up to 55%.
o However, even after discounts, their final net price often does not typically fall below the cost of a North Carolina public university. Think of it like shopping at Kohl’s with a coupon!
Colleges are businesses that depend on revenue to stay in business. Few students (beyond revenue sport athletes) go to college for “free" unless they have an amazing academic profile well above others at the college or demonstrate a lot of need.
Families are expected to pay for college through a combination of:
o Savings (529 plans, investments)
o Current income (monthly payments)
o Future income (student and parent loans)
For planning purposes, keep in mind costs are going up 2-8% a year and expect:
o NC publics to cost $20-30K per year.
o Out-of-state publics - $40-80K per year.
o Nonbrand privates - $30-70K per year
o Brand Privates - $60-100K per year.
Final Thoughts
By treating college as a consumer purchase and learning opportunity for your student, families can make choices that align with educational goals and financial well-being.
Start by researching financial aid options, running cost estimates, and understanding the difference between merit-based and need-based aid.
Do not assume that your hardworking and gifted student will get lots of financial aid at every college. Colleges are businesses that care about revenue, rankings, bond ratings, and meeting their institutional priorities within their budget.
Most importantly, be upfront about the “family scholarship” and do not allow your beloved child to emotionally blackmail you into buying an education your family cannot afford.
Finally, remember that calm is contagious, and knowledge is power. Where a student goes is less important than what they do where they go!
Want more info? Check out: Want an affordable college? Shop like you are buying a car!
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