College Planning Mythbusters
Families with teenagers believe the craziest things about college. And parents who can separate the myths from reality will increase their odds of finding good schools at discounted prices.
Here are some of the top college myths, debunked:
Myth: Merit scholarships are reserved for “A” students.
Reality: Students don't need to be the absolute best of the best to earn scholarships.
It's been a long time since valedictorians and other extreme overachievers enjoyed a near lock on college merit scholarships. There is fierce competition for good students among colleges today, and merit aid is a popular tool that schools use to assemble each year's freshmen class. At private colleges and universities, for instance, 85 percent of students receive some type of merit scholarship.
State universities are dispensing tons of merit aid, too, and much of it is heading to affluent students. A 2010 study from the Education Trust, for instance, concluded that the amount of merit aid that state flagship universities awarded to students with family incomes of $115,000 and higher jumped 28 percent in a five-year period.
Myth: High school counselors are college experts.
Reality: Most counselors don't receive appropriate training.
Many families assume that their high school counselors can provide them with all the answers if they could only manage to get enough face time with them. In reality, many high school counselors aren't qualified to help. Public high school counselors typically must earn Master's degrees in counseling, but only a fraction of the 466 graduate counseling programs offer even one course in college admission counseling.
There is also no guarantee that college counselors at private high schools are up to speed either. Private high schools often hire young college admission staffers, but these staffers are often not privy to the sort of hard financial decisions that colleges make when deciding who gets to attend and who wins awards.
Myth: It's getting even harder to get into college.
Reality: Not for the majority of colleges.
A new UCLA study shows that 79 percent of the current crop of college freshmen got into their No. 1 choice. That doesn't sound so onerous of a hurdle. The reason why this myth persists is because a tiny percentage of institutions in this country — mostly in the Northeast — are nearly impossible to crack.
Myth: It's a great sign if a prestigious college sends your child unsolicited mail.
Reality: Don't count on it.
I wouldn't celebrate if your child receives an enthusiastic letter from an elite college. Chances are it won't mean anything.
Here's why: schools are always eager to burnish their names or protect their already stellar reputations. Institutions believe they can accomplish this by rejecting even more applicants than in previous years. US News & World Report rewards colleges that maintain high rejection rates, and families pay attention to these figures too.
Schools can attract more applicants (victims) by pretending they love them. Ivies and other elite schools will send out literature to candidates who don't measure up to their standards. Meanwhile, colleges further down on the pecking order are sending out what are called “fast apps.” These fast-track applications are intended to make applying to college incredibly easy by stripping out such requirements as an essay, teacher recommendations or filing fee. High school seniors are flattered by these application invitations, which often arrive via email. They shouldn't be.
Myth: Saving for colleges hurts your chances for financial aid.
Reality: College savings is rarely a financial aid deal breaker.
Less than 4 percent of families have saved enough money to impact a financial aid award. If this seems strange, keep this in mind: financial aid formulas don't count qualified retirement assets when calculating what an individual family can afford to pony up for college. If a school only requires the Free Application for Federal Student Aid (FAFSA), a family's home equity is also irrelevant.
In addition, every family receives an asset allowance to shelter some of their cash that's based on the age of the oldest parent. If you are 55, for example, you can shelter $60,200 in college savings or any taxable account assets. In addition, remaining parent assets are only assessed at a maximum of 5.64 percent for financial aid purposes.
Myth: Your child will graduate in four years.
Reality: Five- and six-year graduations are the norm.
Actually, only 57 percent of full-time college students earn a bachelor's degree within six years. Private colleges enjoy the best grad rates. Close to 48 percent of students at private schools graduate in the traditional four years. In contrast, just 27 percent of students at public universities graduate on time.
While I don't know any parents who want their children to linger in college, it's tough to find published four-year grad rates. I head to the Education Trust's College Results Online (www.collegeresults.org) to locate these important stats. Obviously, attending a school where a child will graduate in four years can save a family tens of thousands of dollars.
WRITER'S BIO:
Lynn O'Shaughnessy is a college consultant, author and speaker. She writes three college blogs for CBSMoneyWatch, U.S. News & World Report and TheCollegeSolutionBlog.com.
