Webinar Recap: Mastering College Costs 

Navigating the financial landscape of higher education can be daunting, but understanding your options and planning ahead can make a significant difference.  

In last week’s webinar in partnership with CollegeAdvisor, “Mastering College Costs: Essential Tips to Avoid Overpaying,” we broke down insights on unpacking college costs from an expert panel featuring Allie Danziger, SVP and GM of AscentUP, and Jess Klein, a seasoned college admissions and financial aid expert at CollegeAdvisor. Together, they shed light on critical strategies for managing college costs, understanding and selecting student loans, and maximizing financial aid. 

You can watch the recording here!

We discussed tips for creating a four-year financial plan, understanding both direct and indirect costs, and navigating the often-confusing world of scholarships and loans. Attendees had the opportunity to learn how to differentiate between the “sticker” price of colleges and what the student will realistically pay, explore tips for budgeting effectively, and discover the role of financial aid and scholarships in reducing out-of-pocket expenses. 

From deciphering your college bill and choosing the right student loan lender, to leveraging financial aid resources and optimizing your budget, this webinar aimed to empower families and students with practical advice and actionable strategies. We also highlighted valuable tools and opportunities, like Ascent’s Bright Futures Engine and scholarship giveaways, to help families on their educational journey.   

Understanding the different pathways on how to pay for school is an important part of preparation.  Our panelists break down the options of paying for school: 

1) Scholarships and Grants 

• Federal vs Institutional  
  • Federal grants come from the federal government (through the FASFA application), while institutional grants are specific to an institution. 
• Merit vs Need Based 
  • Merit scholarships or grants are usually earned based on a certain skill, attribute, or achievement. 
  • Need based scholarships or grants are usually based on demonstrated need. 
    • Need-based aid is determined through the formula of cost of attendance minus expected family contribution (from the FASFA) to equal financial aid eligibility. 
• Outside scholarships 
  • Not from the federal government or your educational institution.  
  • CollegeAdvisor has a lot of resources for finding these scholarships. 
  • Ascent Funding has given away over $330,000 in scholarship giveaways to date. Take a look at our no-essay scholarships: https://www.ascentfunding.com/scholarships/  

2) Payment plans 

• Payment plans are a way to make it easier for students and families to pay for school as they break up tuition into smaller, more manageable payments over time.  

3) Loans, both Federal and Private 

• Students and families can use FASFA to apply for federal student loans, federal loans are provided by the government. 
• Private loans are provided by banks, credit unions, and other financial institutions. 
• It is common to use a combination of the three methods of scholarships, payment plans, and loans to pay for school. 

It is important to understand the ROI (return of investment) of your future school and plans while going into college. Ascent Bright Futures Engine is an algorithm that does just that! 

• Ascent’s Bright Futures™ Engine powers students to evaluate the return of their educational investment by comparing the expected salary of students with their college major the first year after graduation with the cost of attendance for in state and out-of-state colleges. Ascent’s Bright Futures™ Engine college ROI calculator, empowers students to find the school and major that offers them the greatest return of their investment and is available to all. https://www.ascentfunding.com/bright-futures-engine/ 

Some other ROI related things to consider include: 

• How do all your options stack up in relation to price, location, major, etc.?  
• Be intentional in selecting a major and remain conscious of the salaries of that major. 
• Consider the faculty in your decision.  Is there a specific faculty member that you admire or share a passion with?  Are there summer opportunities or post grad opportunities to work with professors or faculty? 
• Be mindful of the location of the school, how will this enhance your educational, personal, and career experience?  What extracurricular activities are available on campus or in the area?   

We understand that looking for a private loan lender can be a daunting task.  Our panelists put some factors to consider while looking for a private student loan lender that best suits your needs: 

• What is the cost of the loan? 
  • Make sure to consider this for over the duration of your higher education timeline, not just one year. 
  • Ask questions such as what the interest rate is, what is the APR, and what are the overall fees associated with the loans/ 
• Make sure you understand the repayment options. 
  • Make sure you understand what the flexibility of repayment options are during school, post school, and immediately following graduation.  Is there a grace period after graduation before loans are due? 
• Understand what (and if) student friendly benefits are included with the loan such as ACH, grace periods, and success/ future job support. 

It is also extremely important to keep track of repayment options associated with your loan, so you do not lose track or fall behind.  Some tips include:  

• Sign up for an online account with your loan servicer (and download the mobile app). 
• Set emails from your loan servicer as high importance to avoid missing them or them getting sent to junk mail. 
• Keep a clear budget and keep updated with your payments.  A smart way to do so is to sign up for auto-payments so you don’t have to manually insert your information every time a payment is due. 
• Be sure to consolidate and track interest rates to keep on top of your loans. 
• Lastly, add due dates to your calendar and keep records so you stay organized. 

Budgeting in College is an extremely helpful way not only to stay on top of your finances, but to build lifelong healthy financial habits.  Here are some strategies discussed by our panelists to stay on top of budgeting: 

1) Understand Income and Expenses 

• Income is the money that is coming in.  Some examples of income include part time jobs, allowances, scholarship grants, and financial aid. 
• Fixed expenses are the expenses you can predict and plan for, what must you pay.  Some examples of fixed expenses include tuition rent groceries, books. 
• Variable expenses are less planned and less predictable, what is an option.  Some examples of variable expenses are food, entertainment, and shopping. 

2) Keep Track and Incentivize Yourself 

• Use your phone to track your budget.  It is an easy place to keep track of your finances and there are many apps to help you. Tracking everything is super important!! 
• Set realistic long term and short-term financial goals.   
• Turn budgeting into a game with personal rewards and incentives for good work. You can also ask a friend to be an accountability partner to keep you accountable to your goals. 

3) Budget Wisely 

• Look for student discounts, there are plenty of discounts available to students for many stores, museums, programs, etc.  
• Take advantage of campus resources (or AscentUP for Ascent borrowers)! Your educational institution will likely have many resources for student success in all areas of life. 
• Cooking, meal prepping, and using coupons are great ways to save money, eliminating little costs adds up! 

4) Increase your income and build an emergency fund 

• This sounds self-explanatory, but increasing your income even slightly can go a long way.  One option is paid internships, paid interns ultimately earn $3,096/ year or more on average as shown in a study by Strada. 
• It is important to have a cushion of money in case an unexpected cost comes up out of nowhere such as a car accident, sick pet, or weather damage.   

5) Create habits to Last a Lifetime 

• Those who create a budget are also more likely to save for retirement, pay off debt faster, and achieve their financial goals, with the bonus of being beneficial to mental health as well. 
• Only 25% of people plan their finances, while 75% do not. However, 58% say they would plan better if they knew how (Sourced from Trend and Tactics).

We know there is a lot to account for, but CollegeAdvisor and Ascent are here to help you through this process as you navigate the complex landscape of college funding and make informed decisions about your education and future.  

Keep a look out for more Ascent Scholarships and private loan information from Ascent!