Which College or University Can I Afford?

How do I know whether or not I can afford a school?

The college or university you should apply to is: any one you want! There is absolutely no reason to make cost a primary consideration in choosing where to receive your degree!

Many people shy away from applying to expensive schools. However, the irony is that attending a prestigious, expensive private university can cost the same or even less than your local college.

The true cost of attending a school isn't the tuition, room and board and textbooks. It's what you end up paying out of pocket. Here is how it works.

Make sure you have filed your FAFSA (Free Application for Federal Student Aid). When you receive your reply, you need to be aware of this number: your EFC (Estimated Family Contribution.).

This figure is what you are expected to pay toward the cost of your higher education. If your EFC is $15,000.00, and the tuition at your local college is $20,000.00, the college's student aid program could cover about $5,000.00 of the cost.

Your EFC doesn't change based on what school you're attending. If you decide to attend a prominent technical school that charges $40,000.00 for tuition, your EFC will still be $15,000.00. In that case, the student aid might pick up $25,000.00. The higher the cost, the higher the amount of aid, so there is no incentive to attend a cheap college. You can choose any school you want!

If you attend a small liberal arts college that costs $30,000 to attend, your family still pays your EFC of $10,000. If the small liberal arts college meets 100% of your financial need, you and your family will still have to pay $10,000, while you will receive $20,00 in financial aid.

The caveat here is: each scenario assumes that the college or university aid program agrees to meet 100% of your financial need according to the FAFSA calculation. Most state run schools will not pay the full 100%. Whatever percentage the school doesn't pay will be your responsibility and you may need to tap into other revenue sources such as taking out additional student loans.

However, a private college or university is not in the same position as public colleges and universities. They may not require you to pick up any percentage of the costs that exceed your EFC. You can get a more expensive education at the school of your dreams for less than you would have to pay at the local college.

So, it's crucial to look at the net cost of attendance after financial aid rather than at the initial cost of attendance of the college or university. That will give you a more realistic picture of whether or not you can afford to go to the college your looking at.

I learned this from personal experience in consulting with high-achieving college-bound students and their families. Because of the way student aid works, students are many times able to receive their degrees from some of the most exclusive and expensive institutions in the United States for less than they would have paid at a state school.

Angela Arnold, a university consultant who has helped many students get into college, has created 7 free videos about the university application process Download yours today.