The average total estimated cost (pre-financial aid) to attend a UC school for 2024-25 is $39,236. This includes direct costs like tuition, fees, housing and meals, books/supplies, and transportation.

The average cost of a private college equivalent is $60,420. 

It is a lot of money, especially when you multiply it by four years (or more; don’t assume anything!)

Most families apply for financial aid. To do the topic justice, I will break financial aid into a series of articles.

First up, The Conversation.

In future articles, I’ll cover the basic forms — FAFSA and the CSS Profile, scholarships, loans and debt, net price calculators, and 10 ways to make college more affordable. 

If you are still catching your breath over those initial numbers, take heart. About 85% of college students receive some sort of financial aid.

But before we even get there, parents have homework to do. You need to assess what YOU think you can afford to pay for a single year of college.

I can’t overemphasize this point: Managing expectations is essential to a successful application process both financially and otherwise.

Before anyone gets emotionally invested in a “dream school,” have this basic math conversation with your student:

— Cost of college minus any financial aid a family receives.

— What college expects us to pay minus what we are prepared to contribute; this is the parent homework piece.

— Money we don’t have — student will have to either pay or make another choice.

Please do not be that parent who says, “If you get in, I will figure out how to pay for it,” unless you have a spare $80k/year to dedicate to college.

Be realistic, transparent, and proactive to avoid disappointing your child. Let them apply to the elite, expensive schools if it’s a fit. Sometimes financial aid can surprise you, or just getting in is satisfying.

Regardless, manage expectations from the start. Be aware that students are limited in what they can borrow, and even parent loan eligibility varies based on a credit score.

There isn’t unlimited money out there waiting for you.

Every year I hear stories about “my roommate had to leave after freshman year because they couldn’t afford it.” This likely means they are leaving without a degree, and with debt to return to their local community college or maybe drop out entirely.

Planning ahead can prevent this scenario.

Elite schools rarely offer any merit aid. They can fill their classes many times over and don’t need to incentivize anyone.

There are schools that offer some sort of financial aid to 100% of students who apply, or private schools that try to cost-compete with UCs and offer a more personal education.

With the recent FAFSA revision, middle-class families, especially those with more than one kid in college, did not fare well. Don’t rule out private schools based on sticker price; they may offer better financial aid.

It isn’t all gloom and doom, I promise! Get beyond the popular 50-100 colleges, and things can change pretty quickly.

Jeff Selingo, author of “Who Gets In and Why,” will soon release his updated “Buyers and Sellers” list.

“Sellers” are schools that accept 20% of applicants or less. They have a market advantage and do not need to discount their rates.

“Buyers” are every other school and, if they can afford it, try to “buy” students’ with financial-aid incentives. Consider trading brand name recognition for excellent college options with less debt.

But have The Conversation first!

Resource of The Week: Measuring The Return on Investment of Individual Institutions