What This Handbook Is About

This handbook shows how families in various income groups manage to pay for college. The handbook is based on real experiences of a large number of actual families, as described by national surveys.¹ While some figures date back to the 1995-96 school year, they are the most current available, and they will give you a general answer to the question, "How do people like me manage to pay for college?" Of course, to find out exactly what it will cost you to go to a particular college, you will have to apply to that college and for financial aid. This handbook gives you some idea of what to expect.

We use the term college in this report to refer to all kinds of institutions of higher education, including large research universities, small liberal arts colleges, and community colleges. But this handbook does not address the experiences of students at all levels of study. We only describe the costs for students pursuing either an associate's or bachelor's degree. These students are generally referred to as "undergraduates." We do not attempt to describe costs for masters and doctoral programs (graduate programs), vocational schools, nor for professional programs, such as law and medicine. Vocational schools and programs beyond the 4-year level of study are priced differently and are paid for differently. Part-time students are not covered in this handbook either; their financial circumstances and level of enrollment are too varied and complicated to fit into the framework presented in this handbook. Finally, we focus exclusively on the costs of dependent students, that is, college students who are financially dependent on their parents.

But if you wish to go to college full time, and if you are supported by your parents, this handbook will give you a ready overview of how people in different circumstances covered their college expenses. First, you will see how likely you are to receive financial aid. Next you will see typical amounts of financial aid received by students like you at various types of colleges. Finally, you will see how much financial aid was left over after paying for tuition to cover the cost of living and other expenses related to your education (things like laboratory fees).

Before looking at the tables that show the up-front price of your college investment, consider the payoff. Today, more than ever before, college is the key to financial and overall success. Recent figures show that, on average, college graduates earn approximately twice what high school graduates do.

In the long run the trend is clear: more education, higher earnings. College is usually your best investment, whether you pay from your savings or whether you borrow money to attend.

When you look at the tables in this handbook, you may be surprised. Many students and families think the price is much higher than it really is. Such misunderstandings are often fueled by the media, which tend to emphasize the tuition at the nation' s most expensive colleges and universities--those with the $30,000 price tags.