It used to be that parents panicked when they received the first tuition bill. But today, the proverbial shoe is on the other foot. Now colleges are panicking they won’t have enough students who enroll this fall. College financial aid apps are down 17% overall from a year ago.
As a result, we are seeing colleges employ aggressive marketing strategies like never before.
In the past few years, to attract students, private colleges have been raiding their endowments to come up with more and larger tuition discounts.
We believe that colleges will continue to negotiate with students from higher-income families and increase the student’s tuition discount (reducing out-of-pocket college costs) provided the correct strategic plan is executed by the family. More about that below.
Historically, of all appeals made for additional funds, only about 1% are successful. However, that percentage goes up dramatically if the student has applied to ten competing private colleges in the same academic and cost range.
The more schools a student targets with similar characteristics, the greater the odds of having at least two significantly better offer packages, thus enabling you to negotiate a better deal from the favored college. A successful outcome could easily save your family $5k to $15k per year at your students’ preferred school.
Colleges know that if you’re taking the time to ask for more money, your student has pretty much made up their mind to go to their school. If turned down, there’s a 90% chance the student will enroll anyway. That’s why an extensive and well-conceived college list is so important.
If students and parents proactively take on their college search from a marketing perspective, they would be targeting schools where they are in the top 20% of applicants, the cost of attendance would be about the same, and the amount of merit aid they offer students with similar “college capital” is above average.
When negotiating a better price for a car, new home, or college, you need to come from a position of strength. Having multiple offers is your best bet to increase the odds of getting the price you want (or closer than you would have been).
Because the college list is the single most important factor in executing a game plan that will result in a student going to the RIGHT COLLEGE, for the RIGHT REASONS, and at the RIGHT PRICE is why we stress Career Cruising and speaking with Teresa about college choices.
Does your student need help to create their college list, figuring out a career choice that matches their innate abilities, writing an essay that stands out from the rest, and/or preparing for SAT/ACt tests?
Schedule your First Consultation below.
Article by: CFS