Release date: June 27, 2002
Contact: Elaine Justice, Associate Director, Media Relations,
at 404-727-0643 or ejustic@emory.edu

Families Can Deal With Rising College Costs, says Emory’s Perreault

College costs may be rising and the need gap widening, but that’s no reason to give up thinking of college as a good investment, says Julia Perreault, director of financial aid at Emory University. "Even in the current climate, education is still the best investment you can make.

"Families need to think of college as they would any investment," says Perreault. While traditional business ventures may or may not pay off (let’s say you open a restaurant on the wrong corner), there’s really no downside to investing in education. "The benefit doesn’t go away. A college education puts you in the best position for the best jobs. It’s with you for life."

For families with years to plan ahead, Perreault cites the 529 college savings plans as the best vehicle right now. She recommends going online to collegesavings.org, a web site of the National Association of State Treasurers that has links and information on college savings plans for all 50 states. (This spring Georgia and South Carolina became the final states to adopt 529 plans.)

Families also need to reexamine the whole concept of paying for college over time, says Perreault. "As of July 1, interest rates on some educational loans are less than five percent. There’s never been a better time to borrow, if that’s what you decide to do. Liquidating assets may not be a wise move, given the current state of the stock market. So what’s the best way to make the most of the resources you have?"

Perreault admits that for many families, getting financial aid for college can still be a confusing, frustrating experience. Emory is a member of a group of colleges and universities that are trying to reduce that confusion by developing a common approach to the methodology used to assess a family’s ability to pay.

Referred to as the 568 President’s Group, participating schools also will use consistency in requesting forms and setting deadlines. Their philosophy, she says, "is to look at things in a more realistic vein when it comes to need analysis and to be very up-front with families on how eligibility for aid is calculated." The schools that are part of the group are all "need-blind" in their admissions, meaning "the admission decision is not affected by the family’s financial status."

Even in tough economic times, parents shouldn’t rule out private colleges and universities due to cost, says Perreault. Tuition may be higher, "but more aid may also be available at a private school." Plus, families need to look at what Perreault calls the "indirect costs" or bottom line of paying for college. That may mean taking a closer look at a school’s graduation rate, a signal of how long it takes most students to complete their degrees.

"If the state school you’re considering has a four-year graduation rate of 50 percent, you may need to figure in the cost of an extra two or more years of tuition, room and board," Perreault points out. "You need to weigh the entire price tag. How many years will it really take to get that degree? Matching the right kids with the right school, keeping them on track and having them be successful in their college career has a big impact on the final cost."

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