Choosing The Right University
With little time remaining in the school year, many high school seniors are attempting to make the largest financial decision of their lives—where to go to college. Not only is this a huge upfront decision, but the lifetime implications are immense. Making matters more difficult, visits to universities are on hold due to the coronavirus.
I have a degree from a small private university as well as a mega-university. I have also taught at both types of institutions. There are important differences to consider before making such an important decision.
State universities can offer a variety of paths with many fields of study. Parts of a public school can be cheaper. However, it is easy to get lost in the crowd and the opportunities to be involved in many activities are difficult.
Private universities can offer exclusivity and a more personalized education. They can offer many experiences. It is not uncommon to see students in the band and student government and play sports. However, many are scared off by the sticker price.
If considering the “online” route lured by going to class in your pajamas—then a word of caution. Employers know that sitting at home Googling the answer to something is not the same thing as having critical thinking or the ability to work with others. Furthermore, students often pay a premium for the luxury of sitting at home.
Unless you are a Division One athlete, the excitement and allocation of precious resources to a semi-pro football program should not factor into your decision making. The periodic table is the same at all schools as are Generally Accepted Accounting Principles.
Identify what separates one school from another.
Take the Johnson O’Connor Aptitude Assessment (www.JOCRF.org). It is one of the best ways to know where to focus your major and identify a school that excels in that field.
State schools are not necessarily cheaper than private schools. Develop a spreadsheet of actual costs associated with tuition and fees, as well as housing, food and financial aid. On a regular basis, our clients are surprised that state schools and private schools are very similar once all expenses are factored in. Do not believe that state schools are automatically cheaper.
Private universities have a “sticker price.” However, based upon SAT/ACT scores and class rank, this is often heavily discounted.
Ask about financial aid– not just loans. There are grants, on-campus jobs and other work-study programs.
How can you improve financial aid? Most schools have a matrix that cross-references class standing with SAT/ACT score. Take the SAT/ACT multiple times (I took it five times) and improve your financial aid for the next four years. However, be satisfied with your test scores before applying for financial aid as some schools may not update your improved scores.
Since there are no on-campus visits right now go online and do research. It is amazing what you can find by looking at YouTube, Facebook, Instagram, etc. Many schools offer virtual tours.
Find current students at a school you are interested in. Ask why they made that decision and how it is working out. Ask the university for references. Get five current students to speak with. Quiz them about what is good, bad or indifferent about that school. If you are getting the canned “sales pitch” ask the first five students for another student to speak with. The second layer will often offer a better understanding.
Can you survive and thrive in a lecture hall with 600 students? Or, do you need a smaller, more focused environment? I am the first to admit I would not have done well in a huge lecture hall. I needed help from engaged professors.
Find alumni who graduated within the past five years. How was their experience? Were professors available to mentor? Did they find a job in their field? Did their education provide critical thinking skills leading to employment or graduate school?
Due to grade inflation and online education, employers do not necessarily know who has the mental toughness to perform and get along in the real world. With many disciplines, there is a national licensing board. CPA’s, CFP’s and Professional Engineers have licensing exams showing not only graduation from a university, but the brains to operate at the requisite level.
Determine if there are licensing designations in your field. If yes, how many from a given university took and passed the exam?
What internships or work/study programs are available?
What percentage of students in your field graduate within six years?
What percentage of students obtain employment in their field within one year of graduation?
Now is the time to ask these critical questions. You are making one of the largest financial decisions of your life. As such, take the time to determine the best place to go, the best path of study and the cost associated with making this critically important decision.
Dave Sather is a Certified Financial Planner™ and owner of Sather Financial Group. His column, Money Matters, publishes every other week.