Rhode Island Student Loan Authority College Planning Center offers ways to keep college costs under control

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College Planning Center offers ways to keep college costs under control
01:00 AM EDT on Sunday, May 17, 2009
By NEIL DOWNING

Journal Staff Writer
BRISTOL — Throughout the college-search process, high school students should focus, at least in part, on the cost involved, according to experts at the College Planning Center of Rhode Island, which provides free counseling to students and parents about college applications, admissions, and finding financial aid.

The process should start early on, when students are juniors in high school, and include an emphasis on affordability, said William D. Bianchi, the center’s manager. “It’s got to be reasonable,” he said.

David DeBlois, the center’s director, said he urges students and parents involved in the college-selection process to set aside such factors as peer pressure, family expectations and emotional considerations.

“You’ve got to have that tough conversation and be realistic,” he said. For example, if a student plans to become a certified schoolteacher or a nurse, the student may not need to attend a private college or university; a less-costly public school may be a better choice, DeBlois said.

Bianchi added, “It’s not ultimately where you’re going to school. It’s what you’re going to do with that education.”

And parents must keep in mind their own needs, balancing education spending with saving for their retirement, DeBlois said. “I tell parents all the time: There’s no financial aid for retirement,” he said.

The College Planning Center, with offices in Warwick and Bristol, is operated by the Rhode Island Student Loan Authority, a nonprofit agency in Warwick that provides education loans for students and families. Officials from both organizations offered some tips on ways that families can make college more affordable, and keep loan balances under control:

•Study hard in high school, and prepare in advance for standardized tests such as the SAT. Some colleges and universities give special emphasis to academic performance when it comes to financial aid, said Charles P. Kelley, executive director of the Rhode Island Student Loan Authority. “There is a significant amount of academic, or merit-based, aid at some schools that should not be overlooked,” he said. Many private scholarships are based on merit, too. “We tell students, A’s are worth money,” he said.

•Consider studying first at a community college, which is usually far less costly than a four-year college or university, Kelley said. Then you can transfer to a four-year school to finish your education, he said.

•Some students at four-year schools trim their costs by taking courses at a community college in summers, said Gail Bessette, director of school relations at the Rhode Island Student Loan Authority.

•Consider schools that fit your budget as well as your academic requirements. Even if you are accepted by one of your “reach” schools — one that you were not sure would admit you — keep in mind that such a school may challenge you not only academically, but also financially, DeBlois said. •If you need to borrow, avoid high-cost borrowings, such as credit card debt, DeBlois said.

Of about 6,600 students with credit card balances that the Rhode Island Student Loan Authority could get data on, the average credit card balance earlier this year was about $3,400. About 5.4 percent of the students had average credit card balances exceeding $26,000.

•Look to federally backed loans before private loans. Federal loans — such as the subsidized Stafford loan for students — typically come with more favorable terms and conditions.

No matter the type of loan, think about how you will pay it back, Kelley said. “People need to know, up front, what the monthly payments are going to be,” he said. Also make sure you understand all the terms and conditions up front, including interest rates and repayment options, he said.

Check on special arrangements that may be available — from lenders, state governments or the federal government — regarding debt forgiveness for students preparing for certain types of careers, such as schoolteachers, nurses and nurse educators, Kelley said.