by Nahlah Abdur-Rahman
April 30, 2025
Financial experts weigh in on what cost factors students and families should consider.
With National College Decision Day approaching, making a choice that prioritizes finances can make the most impact on one’s future.
While May 1 is the official deadline for most to pick a college, many students have multiple factors weighing in on the decision. Considering student loan forgiveness remains a constant battle in Congress, incoming freshman must grasp the costs of their future education.
Student loan officers are encouraging students to truly understand the monetary commitment of these institutions. One’s dream school may leave a heavy burden if they cannot afford the tuition and fees.
“It’s not just about the dream school and the academics and setting you up for the right career trajectory, it’s also about the cost — that is a real issue,” said Chris Ebeling, head of student lending at Citizens Financial Group to CNBC.
Money experts have shared their own advice to cautious students ahead of their four-year decision. They urge students and parents to get the net price, also known as total cost of attendance, one must pay.
The net price is specific to each student, considering the grants and scholarships they may receive to offset this cost.
The College Board offers a net price calculator to help families visualize the actual amount they can anticipate spending. This number can vary, with some schools coming with shockingly low net prices, such as Harvard due to its substantive financial aid awards.
Families should also read the fine print when it comes to their FAFSA awards. Once students fill out the Free Application for Federal Student Aid, knowing the difference between each option is crucial.
Experts say families should try to maximize gifts like grants and scholarships, while taking in as little in loans as possible. Understanding the eligibility requirements for each of these options can help build a financial plan for the next four years.
Merit-based scholarships are still within reach as well, with the College Board or Scholarships.com having more information on these opportunities.
“There are many different scholarships that can be based on talents and interests, membership in professional or social organizations, or even luck of the draw,” says Matt Lattman, a senior vice president at Discover. “Some scholarships are annual, others per semester, and some even provide a monthly opportunity to earn money towards your education.”
If one must take out loans, Ebeling says to start with federal direct subsidized and unsubsidized loans. For a more traditional route to preparing for college costs, a 529 college savings plan can also help.
With tuition typically rising by 5% every year, developing a financial plan to last through graduation can help lessen the potential stress of paying for college throughout and beyond one’s journey. While many should celebrate National College Decision Day, making an informed choice can lead to long-term benefits.
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