Strategies to Help High Earners Pay College Fees

As college costs continue to rise, it’s not only families with financial struggles that are worried about paying the bill.  Even high-income families can be caught off guard when they realize that the costs of many top colleges now exceeded $75,000 a year for tuition, room and board – not including expenses for travel, a social life, and other amenities.  Schools in this category include Amherst College, Brown University, Columbia University, Dartmouth College, Georgetown University, University of Chicago, and University of Pennsylvania.

A recent Money article gave advice for families that are stuck in the middle, earning too much money to qualify for need-based aid but not enough to pay out-of-pocket. These families are encouraged to file a FAFSA (Free Application for Federal Student Aid) even if they feel they will be denied need-based aid. The reasons are many. First of all, the FAFSA is the only way to access low-cost federal student loans.  In addition, to apply for many state and private scholarships that are not need-based, a FAFSA must be filed.  A completed FAFSA is also helpful if a family’s situation changes in the midst of an academic year due to job loss, medical expenses, or other sudden hardship.

Money also advised students of families in all income brackets to apply for merit-based aid. Billions of dollars in merit aid is awarded each year to students who fill a niche at the college of their choice.  It could be related to sports, music, dance, academic achievement, or any impressive quality, talent, or accomplishment.  Parents are encouraged to negotiate merit-based offers, particularly if a college is recruiting their child.

Another financial strategy is to choose a different, less expensive college or one that will reward a student for his/her academic achievements.  Most public universities offer a substantial in-state discount to its residents.  The tuition and fees rate at The College of New Jersey, for example, is $17,307 for the 2021-22 academic year for New Jersey residents and $22,748 (a 31% increase) for out-of-state students. There are also many prestigious schools a tier below the institutions charging in excess of $75,000 annually. Students who are able to gain acceptance to Brown, Columbia, and Georgetown, for example, could certainly expect to gain admission to a wide range of elite schools that would reward them, financially, for their impressive academic record.   

College-bound students should consider all of the financial awards available to them before making a decision that may affect their finances, and those of their parents, for years to come.   

Susan Alaimo is the founder and director of Collegebound Review that, for the past 25 years, has offered PSAT/SAT® preparation and private college advising by Ivy League educated instructors. Visit CollegeboundReview.com or call 908-369-5362