Although many people understand the value of a liberal arts education—small classes, personal attention, career networking opportunities, internships, mind-expanding research opportunities, overseas travel—many assume that such an education is beyond their financial means. Yet a private liberal arts education can become a reality for most families through the use of creative financing initiatives. Higher education is an investment that appreciates for countless years after students complete their formal education and enter the workforce. Many families are prepared to make that investment but need guidance about making it happen. Here are some issues to keep in mind as you navigate the financial complexities of attending the college of your choice.
First, many groups offer scholarships–schools, civic groups, churches, and professional organizations. Don’t ignore these opportunities! Such competitive awards add up quickly and go a long way toward helping meet the price of attendance.
Private colleges also offer an array of scholarships and grants, often subsidizing more than half the price of attendance for bright and deserving students. At Hartwick College, for instance, 90% of first-year students received an average of $15,529 in gift aid, about 45% of the cost of attendance. Despite these “discounts,” bottom-line costs cause many families to abandon their pursuit of private education. They face the challenge of financing the balance of the cost of attendance after federal student loans and federal work study are considered. Hartwick, like other private colleges, suggests using tuition payment plans, Federal PLUS loans, and alternative student loans as options.
At Hartwick, we have taken affordability a step further than most other colleges by creating QUEST—Quality Undergraduate Education with Sensible Terms, a unique financing opportunity based on the Federal Parent Loan for Undergraduate Students (PLUS). Hartwick rewards high-achieving students by offering families an interest-subsidy on their PLUS loan while their student is enrolled. Hartwick also encourages high academic performance from students who do not qualify initially for this benefit, acknowledging their efforts with an interest-subsidy after the first year of good academic performance. Hartwick pays the interest accruing on the loan, so payments from parents are applied directly to principal. Families can take advantage of a fixed payment structure that encompasses all four years of borrowing—making monthly payments and receiving a substantial interest-subsidy benefit and subsequent principal reduction. What does all of this mean? It means that the cost of attending college can be managed through sensible monthly payments that help students and their families afford a high-quality education.
There is great diversity among college students—including in levels of knowledge about financial aid and affordability. Every family can learn from trained financial aid and affordability staff and get help with the complexities of the financial aid process. Many Colleges of Distinction have programs to help you through the process and work with your needs. My goal as a financial aid professional at Hartwick College is to build a personal, supportive relationship with each family that will continue throughout a student’s four years here. I know I have done my job when a student who dreamed about college but thought it was out of reach walks across the stage to receive a Hartwick diploma.
