Making Your Financial Future a Priority when Choosing a College

While education is certainly important, and has the potential to increase a person's life time earnings, the choice one makes has consequences. It can greatly increase the potential for revenue enhancement or create crushing debt, it may take years to emerge from.

There are some several factors one needs to consider in making the decision of where to go to college. The first one involves what are you interested in going to college to study and which schools offer programs that lead to employment in those fields. Employment is often ignored in the college decision process. I realize many young people are uncertain when they start off to school about what they want to do when they get out of college, but when making a choice that could ultimately result in great debt or a sound financial future, having future employment options are important.

From there, of course, an individual must be able to gain acceptance to the educational institution of his or her choice. However, here is where the financial trap emerges. For many the honor of being accepted to a program at a prestigious institution is not matched by what the program offers in future earnings potential. For some very fortunate individuals, who can personally finance their education, regardless of cost, this is not an issue. For others, who through personal merit and financial aide, have won complete scholarships to the college of their choice, the question also, does not arise. The money question is a real issue for those who have dreams of a prestigious university education but require loans, do to a gap in personal finances and awarded financial aid and scholarships. Then the question of future employment does become a real and substantial one.

It is a tough conversation to have with parents and children about the realities of turning down a chance at a prestigious higher education. However, it is one that more children and parents need to talk honestly and openly about. There are those who argue that making the right connections and getting to participate in certain training and programs offered at certain colleges offer them something they can't get at a less expensive college. The reality check has to be do the expense incurred to attend this college trade off in employment opportunities that will clear your debt? Would you have similar opportunities if you attended another college that would allow you to graduate with no or significantly less, debt? People often believe that attendance at the more expensive school is justified because of the higher quality education, without ever considering they are often competing in job markets where their college might give them an advantage over a competitor but perhaps not a salary increase. Will you be able to pay your debts off on what you will be making at graduation? Many students have unrealistic goals of what an expensive college education translates to in terms of opportunities and income. When considering going deeply into debt, it is important to have some research date in your field to know why attending this school is going to vastly increase your income, so you can overcome the debt you will be carrying upon graduation. It is easier to convince students when they can see what the payments are going to look like. Programs that have local local bankers or other volunteers go into high schools to demonstrate what college loans look like on graduation based on how much you owe, and the interest at which you borrow are a real gift to students and parents, alike. It is an eye opener to to be forced to look at the choice they are making.

I'm a firm believer and supporter of college education. Having paid my own way through college, I continue to make a point of teaching my younger relatives the ropes regarding the college financial aide system, searching for scholarships, and how to maximize your savings while at college. However, I also encourage them to be realistic about goals and outcomes. There is nothing to stop you from attending the more expensive learning institution for graduate studies. Waiting until you are in a better financial position, or if possible you can get your employer to pay for it, stills offers you the chance to have that college listed on your resume, but you will not be paying for it in twenty years. As an undergraduate your goal truly should be to finish a degree, in a course of study ,that you can afford. The deeper in debt you are at graduation, the fewer options you have.