Ep 123: Colleges, Universities, and What You're Really Paying For

Ron Lieber, author of The Price You Pay For College and NYT Your
Money columnist, clues us in on what marketing tricks your teen’s
favorite colleges might be using and how to get the best deal.


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Full show notes


With prices skyrocketing and competition for admission growing
more intense every year, applying to college can be a major
source of stress for both parents and teens! It’s enormously
difficult to decide which school offers the right dorms, classes,
and clubs. On top of all that, you and your student have to
figure out how you’re going to foot the bill.


Although families have access to resources like the FAFSA and
other financial aid, it can be incredibly difficult to figure out
how it all works. Every school offers something different, and
half the time it seems like they tack on costs out of nowhere! It
can feel like you’re being hoodwinked when you're just trying to
give your teen a brighter future.


To get to the bottom of all the college cost craziness, we’re
talking to Ron Lieber, author of The Price You Pay For College:
An Entirely New Road Map for the Biggest Financial Decision Your
Family Will Ever Make. Ron is a business expert, and writes the
wildly popular “Your Money” column in New York Times. His
expertise about money and parenting have made a twice
best-selling author!


Today, he and I are discussing some questionable methods colleges
use to entice students into attending. We’re also breaking down
the questions teens should be asking themselves when shopping for
schools, and a few key things they should be wary about when
embarking on their university journey.


Why You Should Question How Colleges Market
Themselves


College is expensive….like, really expensive. Luckily, there are
few ways parents can pay, though they’re not always easy to
navigate. Some students get scholarships based on merit, because
they have exhibited academic skill or another impressive quality.
While this may seem like a life saver, most colleges have some
tricks up their sleeve when it comes to scholarships.


Ron breaks down the deceptive nature of many of these merit based
aid programs. While they started as a way for schools to bring
smarter students to campus at a lower cost, they’ve lost their
original, intended purpose, says Ron. It’s become more and more
common for schools to offer them to the majority of students,
often even hiking up the sticker price of tuition to make it seem
as though they’re handing families a discount.


In fact, there’s a billion dollar industry behind these
discounts, with colleges finding the exact amount of financial
aid to offer students to ensure that they attend the
institution–but not a penny more. Ron and I talk about how
colleges sometimes even measure how often applicants visit their
websites or how quickly teens open their emails, to see how badly
students want to attend. If teens seem eager to go to a
particular place, schools can use this information to extract
more money out of these hopeful students.


In the episode, Ron gets into why all these tricky marketing
schemes came into being, and ways you can get around them. When
it comes to picking a school, there’s more than just the price to
think about, however. In addition to talking about financial aid,
Ron shares the questions he thinks every student should be asking
themselves before they choose a college.


Finding the College that Fits


Selecting a scholarly institution is no easy task. Ron suggests
that teens ask themselves what they really want out of college.
He sorts students into three different categories depending on
what kind of experience they prioritize. Some want to get
practical knowledge, acquiring a degree or license with the main
purpose of gainful employment. Others want to find their pack,
the people who truly get them. Some go away to school to have a
unique learning experience and expand their mind.


What kids really need to do is understand what it is exactly
they’re going to college for. If they have a notion locked down,
they’ll know what questions to ask their tour guides. Ron puts
this idea in terms of examining a college’s dorm design,
something students often don’t consider. If your kid wants to
meet as many people as possible, dorms with more closed off
quarters are likely not the right choice. If they want to engage
in a lot of quiet studying, it might be in their best interest to
look into a school where dorms are more spread out.


For students who are looking to learn as much as possible, Ron
suggests seeking out a college with small class sizes. Research
shows that these institutions have a lot of benefits, with
students getting more individual attention and forming strong
mentorships with their professors. Ron explains that this model
works especially well for women and people of color.


In the episode, Ron lays out some metrics teens can use to pit
different colleges against each other when deciding where to
apply to and attend. He shares how you and your teen can decide
if it’s worth it to fork over extra cash for a university with a
higher rate of alumni success. The college search can also be
full of hidden red flags, however. In addition to things students
should look for in a school, there are also things they should
look out for.


What to Avoid When Applying


There are a few things Ron believes families should be wary of
when trying to settle on a university. Ron explains how a lot of
colleges have a large number of adjunct professors, which are
grad students or aspiring professors who don’t work at the
university full time. He warns that adjunct professors may have
less time for students and less dedication to the school, as
their ties to the university are tenuous.


Ron also emphasises the need to make sure schools champion
diversity. By this he means not just diversity in race, religion,
and sexual orientation, but also diversity of thought. When
touring a school, he suggests asking the tour guide to recall a
time they had heated discussion with someone, either in class or
out of class. If the tour guide can’t recall a story, that’s a
sign that the school doesn't encourage vigorous thought, and
instead discourages dissent.


Is your teen interested in joining a school’s honors program? Ron
encourages them to be cautious. Only about 20 % of people who
start college in an honors program actually remain in it until
they graduate. He also warns that most honors programs show an
incredible lack of diversity. While honors programs started with
good intentions, they’ve become another way school’s market
themselves to empty student’s pockets.


There are lots of things to consider when picking a school, but
Ron is here to break down and simplify the process.


In the Episode…


It was so enjoyable to sit down with Ron this week and shed some
light on the college selection process. In addition to the topics
above, we touch on:


Why Ron thinks all students should take a gap year

How you can talk to kids about college finances

Why the top 45 colleges are so sought aftez

How having the wrong roommate can seriously wreck your
college experience



Although you and your teen might be stressed about selecting a
school, there are thin...