It comes as no surprise that college
tuition costs are exceedingly steep
and have been so for some time. A
small reprieve is that costs for higher
education have been slowing. Since the
pandemic of 2020, tuition and associated
college costs have increased less than
5%, while all items tracked by consumer
price indexes have increased over 15%.1
Despite this, for many families, the
sticker shock of seeing the annual tuition
costs of most colleges has been just that
– shocking. While the posted tuition
costs can be staggering, it is important
to know that most families do not end up
paying the sticker price when factoring
in tuition discounts, scholarships, and
student financial aid.
The first step in finding out the true cost
of college for your family is to complete
a FAFSA each year of attendance. This
form is an application for federal student
aid and offers insights into your student’s
eligibility for federal grants, work-study
opportunities, and loans.2 Additionally,
many colleges use information on the
FAFSA to determine eligibility for state
and school financial aid. Recent changes
to the FAFSA form have made it less
cumbersome to complete by reducing
the number of questions and the amount
of time needed to complete the form.
Once you have determined how much
your family’s expected cost of college will
be, the next step is to look at scholarships
that are available. College scholarships
come in all sizes and from many different
sources. Some scholarships can cover
all or most of tuition but there are many
that, while smaller in dollar amount,
can still cover a few hundred dollars or
more in costs and are worth applying
for. Good places to start searching for
scholarships include college financial
aid offices, federal and state agencies,
and organizations that your family
already has associations with including
local businesses, religious organizations,
and demographic-based organizations.3
Another option to reduce tuition
costs when looking towards obtaining
a bachelor’s degree is starting at a
community college. Tuition is often much
lower than compared to traditional fouryear colleges and many students choose
to commute from home which saves on
the cost of room and board. According
to LendingTree, college students save an
average of more than $11,000 by going to
community college before transferring
on to a four-year school.4 In the Greater
Rochester area, we are fortunate to have
both Monroe Community College and
Finger Lakes Community College within
commuting distance, both of which are
ranked in the top 20% of public schools
in New York for having least expensive
tuition, according to Community College
Review.5
Navigating the college enrollment
process doesn’t have to be an unsettling
experience. By making use of the FAFSA
financial aid application, proactively
seeking scholarship opportunities, and
considering cost-effective options such
as starting at a community college,
students can put themselves on the track
to see their higher education dreams
become a reality. If you need assistance
getting started, please reach out to our
team at CNB Wealth Management and
we will be happy to help.
Sources: 1) https://www.bls.gov/opub/ted/2023/college-tuition-and-fees-up-4-7-percent-since-february-2020.htm 2) https://studentaid.gov/help/fafsa 3) https://studentaid.gov/understand-aid/types/scholarships 4) https://www.lendingtree.com/student/community-college-cost-study 5) https://www.communitycollegereview.com/monroe-community-college-profile; https://www.communitycollegereview.com/finger-lakes-community-college-profile
This material is provided for general information purposes only. Investments and insurance products are not FDIC insured, not bank deposits, not obligations of, or guaranteed by Canandaigua National Bank & Trust or any of its affiliates. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please consult your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.