Page 8 - College Guide 2017 Digital Edition

SPECIAL PROMOTIONAL SECTION
DOLLARS
and
SENSE
Paying for college requires both.
BY LISA DUKART
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ttending a four-year college can be one of the costliest decisions anyone makes. From tuition to
room and board to transportation,
expenses pile up quickly. Having a discussion about finances can be
awkward, but it’s essential for stu- dents and parents to understand where things stand.
“It’s a very important conversation to have, and most people really don’t approach it correctly,” says Judy Sciaky, a certified college planning specialist and the founder of AP&G Financial in Bala Cynwyd. “It’s a two-way street.”
Prior to that discussion, Sciaky recommends that parents have a thorough understanding of their own finances and how much they can afford to contrib- ute. A 2014 study conducted by Sallie Mae, a bank specializing in student loans, found that nearly
20 percent of parents paid for their children’s college education solely with their own money. For those who sought some form of financial aid, the study found that parent income and savings accounted
for about 30 percent of the cost, as did grants and scholarships. Student borrowing and a student’s own income and savings made up for the rest, at
15 and 12 percent, respectively, putting a large burden on parents.
“It’s really important to be able to apply for college or think about college in a way that’s not going to completely decimate a family’s lifestyle,” says Sciaky.
“[Parents] have to sit down and explain to their child where they stand financially.”
She recommends beginning that conversation when a child starts expressing interest in college, which can be as early as middle school or as late as junior year of high school. “Some families are forth- coming, and some aren’t,” says Liz Rihl-Lewinsky, assistant vice president of enrollment management
at Arcadia University. “There are parents who haven’t shared any information with their kids and are fairly shocked to learn about the cost of college today.”