My oldest daughter just returned from touring several colleges she’s interested in attending next year. I’m hoping the school on the top of her list will be one of my favorites, North Carolina A&T in Greensboro. I’m also pulling for my alma mater, the University of Maryland, College Park, but she says it’s too close to our home, about 17 miles away.
“You won’t think it’s too close if you have to walk,” I said.
Olivia was not amused.
My husband and I have told our daughter that she can apply to any college she likes. But we have saved just enough to cover tuition plus room, board and books for four years based on estimated in-state school expenses. If she gets accepted at a school where the cost is more than the money we have set aside, she has to get scholarships or grants to make up the difference.
She cannot take out any student loans. Nor will we.
This process should be a lot easier, thanks to the Consumer Financial Protection Bureau. It has introduced one of the best college cost tools I’ve seen, a Financial Aid Comparison Shopper.
In April, about 1.5 million students will be receiving multiple admissions letters, the bureau says. But once they’re accepted, their families have to figure out how to pay for school. With total education debt crossing the $1 trillion mark, it’s the second largest source of consumer debt after mortgages, according to CFPB Director Richard Cordray.
The problem is that the financial aid information that families receive is presented differently, and often is incomplete and hard to figure out.
“We know that putting student loan debt into context is particularly important for students and parents,” Cordray said.
The bureau’s shopping tool allows you to select three schools at once and then compare tuition, fees and other expenses. The worksheet also has a debt burden scale indicating how tough it might be to pay the loan based on the average national salary of graduates with a bachelor’s degree. People can see how much they could be paying every month if they go the student loan route.
Try out the worksheet, which is available at www.consumerfinance.gov/payingforcollege. Let the bureau know what you think and any improvements you think it could use.
“We will use public feedback to inform the development of a more robust Financial Aid Comparison Shopper,” Cordray said.
