My son AJ is 8, and my fear is that he truly won’t be able to afford college, even if he is a top notch student. After all, I couldn’t when I was younger.
When I received my admissions letter in 1994 to George Washington University, I was stoked. I thought my life was getting off to a great start. Then I saw the cost of attendance…and soon left school for the US Navy. I’m proud of my service, but given the fact that the cost of college then is a fraction of what it is now, I wonder how many more kids are taking a similar path as well?
It’s time to surrender the notion that our kids could ever work their way through college; research has shown its no longer possible. College cost increases in tuition are consistently outpacing inflation. For those parents with kids not in high school yet, its time to face reality. What is increasing the pressure on those of us that have young children is the fact that the educational market is beginning to bifurcate between low-cost, and high-price colleges. Right now, there is still a large mix of college that meet the needs of many student background types; high gap/sat, high net worth, low net worth, and transfer/returning students. However this is changing as smaller private “gem” colleges that borrowed heavily during the boom years of the late 90’s early 00’s are having their budgets and endowments stretched due to lower enrollment as the cost rises.
What makes this worse is that these were the great colleges where students could attend for even less than state universities with the right merit aid award for middle class families. To discuss this we interviewed Grace Nunez (@CostofCollege) ( soon to be on one of my Top 10 Financial Aid Blogs For Parents) and she talks with us about the shrinking number of colleges that will be able to offer healthy merit aid to students they admit.
Listen to the episode: [audio https://s3-us-west-1.amazonaws.com/cmmwordpress/Podcasts/episode36.mp3]
Download The Episode: CMM 036 April 30, 2014
Links Mentioned During This Episode
Cost of College – http://costofcollege.wordpress.com
Scholarship of the Week – Show Your College Love Scholarship
FinAid (a Mark Kantowitz) site – http://www.finaid.org
Paying for College Without Going Broke by Kalman Chany : via Amazon
Joy Luck Club by Amy Tan – via Amazon
transcript after the jump.
The following is a Partial Transcript of this episode
Jose “JR” Vazquez – This is episode 36 of the College Money Man Podcast