While three out of four students are saving money for college, many are still weary of getting enough to cover the costs of higher education. According to a new survey from college career and connections platform Tallo, 22% of students said picking out a school with financial aid and scholarship options ranks as their top priority for making a higher ed selection. More specifically Hispanic and Black students had a bigger concern than their peers when it comes to financial aid, with 27% and 26%, respectively, listing it as their No. 1 priority.
In August, Tallo conducted a survey of 2,501 students about their plans for college. As many as 74% reported saving money for college, 15% said they were not saving at all, and 11% replied that they did not know. When asked about family contributions, almost half (46%) of respondents had a parent or guardian saving up money for their college tuition, while 5% said their parents were not saving and 19% were unsure.
“I was surprised to learn that nearly one-in-five students are unsure if their families are currently saving money for college,” Casey Welch, CEO of Tallo, told Fierce Education. “It’s encouraging to learn that 74% of survey respondents are currently saving money for their own college tuition but having conversations about the cost of higher education with families as early as possible is an important step for students to become knowledgeable about what their options are for pursuing a college degree.”
Looking at racial and ethnic breakdowns, 60% of respondents who identified as Asian said a family member or guardian was saving money for tuition, versus 448% of their white peers, and 40% of Blacks and Hispanics.
Despite its importance, financial aid and scholarship opportunities ranked second behind academics or a major for the No. 1 thing students look for when choosing a college.
Further tightening financial restrictions and family obligations, COVID-19 forced many students to take a step back and reevaluate their higher education plans. According to Welch, some students were able to find part-time jobs that provided tuition assistance, but others realized a less expensive or alternative education pathway such as apprenticeships, a two-year degree or a learning bootcamp.
Welch offers students this advice: “It is never too early to start saving for college, and it’s always a good idea to begin applying for scholarships, grants, and other financial aid packages earlier than you think you may need to. Navigating the different components of paying for tuition can be complicated, from the FAFSA process, to scheduling payments, to various types of student loans.”
Still, a large portion of the funding burden should lie on the higher-ed institutions as well, according to Kelly Hover, Executive Vice President of Operations and Student Success at MedCerts, a continuing ed partner of Tallo.
“Higher ed can do a better job of partnering with employers, professional associations and philanthropic organizations to secure scholarships for attending students,” Hover told Fierce Education. “Today it’s wholly on a student to navigate how to pay for school and apply/win scholarships. Colleges and training schools should work with organizations that want to provide funding for students and bridge the gap.”
Hover recommends that institutions offer flexible, no-interest or little interest payment plans. Plus, they should work with employers who have open positions and tuition assistance programs for a student’s journey. For example, MedCerts partners with large employers who sponsor candidates to complete a training program and have a guaranteed job for them upon completion—a win-win for the student and the employer.
In addition, Hover recommends that students monitor the return-on-investment on program outcomes.
“Many degrees at traditional institutions tend to cost the same because they are charging based on credit hours; however, different degree programs lead to very different outcomes and future earnings. Program cost should more closely reflect what a student can earn with their degree or certification,” Hover said.
No matter the financial needs, postsecondary institutions should feel obligated to reach out and partner with students in order to make their college dreams a reality.
“Students need to know that they’re not alone in this process, and there are people out there who want to help,” Welch added. “If you’re a first-generation college student and your family doesn’t have much experience with higher education, reach out to your high school guidance counselor, or even a representative from the admissions office of the school you’re interested in.”