I’m not sure I agree with all the answers, but it’s a good primer for students and parents starting out!
I wouldn’t want to follow their advice.
Yes, that was one of the questions I got wrong too, @Mom2aphysicsgeek!
I don’t really agree with their advice to apply for as many scholarships as possible. Since the best scholarships typically come from the colleges themselves, many colleges don’t stack merit aid, and most scholarships you apply for are only for a year, I think the focus is better spent on standardized test studying instead of scholarship applications because that will likely give the most benefit in getting merit scholarships from the college.
I don’t think their advice is very good at all, but they do ask the right question. A problem is that they may create a false sense of security that they “know the answers”.
I got 6 out of 8 . . . imho the best suggestion was to check the Net Price Calculator. I had never heard of this feature until I came to College Confidential.
I disagree with the advice to borrow 100% of expected first year income. In my experience, young people far overestimate their initial earnings. Even if they were to estimate correctly, I think it’s bad advice. Most likely, they will end up going into an income driven repayment plan, extend the time required to pay the loan back, and wind up paying a whole lot more than that first-year salary when interest is factored in.
I disagreed with several of their answers too, but I posted the link mainly for those who are just starting out and don’t even know what questions to ASK.
I absolutely disagree with the suggestion to borrow based on your “expected” first-year income. How on earth can anyone do that reliably? Too many things can go wrong to derail the best laid plans of mice and men. I’d stick with maxing out on Stafford loans and, even then, only borrow if the student has a track record of working hard at his or her studies.
I did get a good chuckle that I’m more fiscally conservative than the WSJ!
Since the expected income of about 50 percent of college graduates is zero – since they remain unemployed at graduation – guess that means students should take out zero loans.
Us too @LucieTheLakie. Very against any undergraduate debt for our son.