What College Really Costs

I just got the bill for my daughter's upcoming college semester.  I was expecting it, even what it said, but still, the actual dollar amount on that computer screen can sometimes take me aback.  My daughter is going into her sophomore year of college and she loves it.  Since she didn't particularly like high school, I am especially thrilled she likes college. Even though it is expensive.

A lot of people are confused about college costs. Parents assume that in state schools are the most economical choice. For many, this may be true. But for this New Jersey-ite, in state tuition, room, and board at Rutgers, our state university, is about $26,000 a year.  For about that same cost, my kids could go to any of the New York state public colleges, Salisbury University of Maryland, and a number of other colleges as out of state students.

Many people think that out of state tuition, room, and board at public colleges are cheaper than private colleges every time. This also isn't necessarily true. I am paying less to send my daughter to a private college than I would have paid had she gone to an out of state public school at some of the more popular out of state colleges on the East Coast, such as University of Delaware and University of Maryland, among many, many others.

My daughter's college costs $60,000 a year. Now that's the sticker price -- literally the price they stick on the costs page on their web site and in their glossy brochures. But private colleges know that many, if not most, of their students will not be able to afford a $60,000 a year sticker price for college. They have endowments that they use to help bring costs down for individual students, and it's easier to qualify for financial aid at a private college that asks $60,000 a year than a college like, say, Rutgers, that asks $26,000 a year.

Each year, my daughter receives scholarship money and grant money from her school. This is free money that she does not have to pay back. She also has work/study as well as some loans.  But it's important to note that private college is not out of reach for many students.

In the end, you have to do what is right for your situation. But don't assume you can't afford a more expensive school, or that your state school offers the least expensive education or that your state school is the only option.  Investigate, you might be surprised!