Ask the Office of Admission: How Much Should We Invest in College?

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February 10, 2022
Office of Admission
Falone Serna and Johnny Poet

During the college application process, students and families often place the emphasis on being admitted but, after the elation of being accepted settles in, many come to the realization that there is still a major part of this process that needs to be worked out: the financial commitment. What is this going to cost us, and how much are we willing to invest?

Investing in a higher education is usually the first and largest financial commitment a young person will make in their life and it requires both immediate and long-term considerations.

It is crucial you understand the exact out-of-pocket cost of attending the college you’re considering. We're going to be honest with you: with very few exceptions, “full ride” scholarships don’t exist so you should come into this process expecting to pay something. As you assess your out-of-pocket cost, you will need to decide if the bill will be covered by savings, income from your parent or family’s current employment, or a new, additional source of funds like a part-time job.

Keep in mind that a normal full-time college course schedule, along with labs, field work, group projects, homework, required reading, study time, and extra-curricular activities is a 40+ hour a week commitment. Trying to find time to pick up a part time job as a full-time college student can be challenging. Working 10 hours or so a week is doable but picking up a 20+ hour job to make ends meet is probably not realistic and likely a recipe for burnout.

You may also have to decide which housing arrangement makes the most financial sense for you. Whittier College prides itself on being a residential college where a good majority of our students live on campus. We believe in the value and experience this provides our students, but there is an added cost to living on campus. For many of our local students, commuting from home was the more financially sound option. 

Another decision students and their families will likely face, particularly when considering private colleges, is whether or not to take on student loan debt. Many people we meet with says their goal is to earn their bachelor degree without having to accept any student loans. We can’t disagree with the idea that graduating college without student loan debt would be the most favorable outcome, but federal loans can be a valuable tool in helping a student fund their education.

Colleges like Whittier typically cap the amount of federal loans offered to students. For example, Whittier only offers up to $5,500 in loans for first-year students and our average student indebtedness is around $25,000 after four years. If you consider that Whittier’s tuition is just under $49,000 per year, a $25,000 investment (the cost of a sedan or compact SUV) may be a sensible amount of debt to carry in exchange for a four-year private higher education. Additionally, the interest rates on federal student loans are very low and some loans don’t start accruing interest until after graduation, making them the best kind of debt that can be taken on. That said, students should be wary of how much they borrow especially if they are considering graduate school where scholarships, grants, and fellowships are scarce.

After all the numbers have been crunched, we encourage you to consider the value and return on investment for each institution. Where will you be most successful? Which school has the best resources and opportunities that fit your needs? Which school has the best track record of success for graduates in the field you’re pursuing? What is finding the best fit worth to YOU?

Our final piece of advice for families is to have a conversation about their financial reality as soon as possible. Having these conversations early on sets expectations, allows for financial planning, and minimizes the surprises and letdowns.