Should You Pay for Your Freshman's College Education?
Bills, bills and more bills—you may feel like all you do is pay bills. College tuition just adds another strain to your budget. You love your college freshman, but the cost of college is overwhelming. How can you afford to pay for college?
A college education carries a sizable price tag. The average college freshman does not fully fathom the financial cost of a college education. But the college parent is fully aware of the required financial commitment. Before determining who should pay the bill for college, parents of freshmen should consider 3 important questions.
3 Important Questions About Your Freshman’s College Education
1. What is the value of a college education?
From a strict numbers standpoint, college is costly. The College Board estimated that the average tuition and fees cost for the 2017-2018 school year varied: private colleges charged all students $34,740 while public college charged state residents $9,970 and out-of-state residents $25,620. Multiply those costs by four years, and you can see why many students graduate with large loans.
Beyond the actual financial cost, what is your child’s college education worth to you? You may consider your child’s education as a check off the been-here-done-that list, a mandatory requirement for a successful future or as an unnecessary use of money. In any case, deciding what your child’s college education is worth to you is important.
Determine how badly you want your child to attend that college. Yes, Ivy League schools provide great networks for your freshman. Yes, Ivy League schools carry prestige and rigor in the education process. But how much are you truly willing to pay for your child to attend that school?
You also need to consider how much your freshman values a college education. While grades and attendance are certainly not the only indicators of valuing college, they are important indicators. So, if your child is constantly skipping classes and rarely doing homework, your freshman probably does not truly value her education.
Carefully consider how much you and your freshman value a college education.
2. What is the state of your financial preparations?
Some parents start a savings account soon after their child’s birth. From the beginning they dedicate all those funds to a college education. Other parents prepare less intentionally for a college education. While neither parent is “better” than the other, your level of preparedness does affect your college freshman’s finances.
How much have you set aside for your freshman’s college education? My parents did their best to provide for my needs and many of my wants. But with a large family, they were not able to invest much financially to my college education. (They helped in other ways.) As a result, most of the burden for my college bills rested on me.
Your freshman likely has a bank account of some sort. But how much has your freshman designated for college? In high school, your child may have worked a part-time job. While this experience taught her much about the value of a dollar, her paychecks probably did not provide enough money for her college education.
A college education is a considerable investment for a young adult. I’m imagining you wouldn’t want your 18-year-old child signing papers to buy a new Maserati. However, when you consider the cost of 4-year degree, college is similarly sized investment.
If you are not able to help your freshman pay school bills, be sure your child is fully aware of the commitment she is making when she agrees to get school loans. Remember with federal loans your debt can only be canceled if you die, and failing to pay private loans can result in being sued. So, agreeing to a school loan is a serious commitment.
Many people successfully pay off school loans, but a lack of financial preparedness for college can impact your child’s finances well into her 30s.
3. What is the payoff for your freshman’s education?
What is the end goal? Do you want your child to be more employable? To earn a higher income? To have a better quality of life? Identifying what is the end goal can help provide valuable perspective.
As a side note, realize that your goals may not be your child’s goals. Your freshman may have no idea why she’s getting a college education (other than that going to college is the next step after high school). Helping your child think through what is her end goal can help her with her major and future career.
If the ideal outcome is to earn a certain dollar-amount, be sure your child is in a major that makes that dollar-amount. If the ideal outcome is to have a certain quality of life, be sure your child’s experiences and education can provide that. If your goal is for your child to love her job, encourage your freshman to get some hands-on experience in this field before committing to four years of college.
So, who should pay for your freshman’s college education? Honestly, the answer is up to you and your freshman. College education is expensive! I think it’s important to discuss money with your freshman. These conversations should not be guilt-trips or stress-induced panic attacks, but they should be informative.
My only specific advice would be this: be sure your child understands the financial investment involved in a college education. Your child needs to understand the value, cost and payoff of a college education.
