Financial Planning and Transferring, Part I

One of the primary considerations to make when choosing a transfer institution is whether or not your school of choice is financially affordable. In this regard, there is much more to consider than you might think.

First, you need to determine the cost of attendance, which may well be different from the "sticker price" of tuition and fees at various institutions. Cost of attendance- at minimum - takes into account all of the scholarships, grants, and work-study funds included in your financial aid award. This will likely vary from one school to the next, and differ from one individual applicant to the next.

Did you know, for example, that elite private schools commonly offer large financial aid packages to well-qualified, lower income students? While the "sticker price" might be over $30,000 per year, you may be offered $20,000 or more in grants and scholarships.

Also, cost of attendance includes all other fees and expenses. There may be differences in housing expenses, transportation costs, health fees, and school fees. These need to be taken into account to determine the affordability of an institution.

Second, you need to determine the return on investment offered by different schools. Though one school may be more expensive to attend, it may also allow you to land a better job and earn a higher salary after graduation. In this case, the best value - in the long term - may be a school that is more expensive to attend.

It is important to note that there is no simple correlation between the cost of tuition and the return on investment. It is up for you to decide the value of one particular school over another by determining any unique opportunities, strengths, or resources (such as alumni connections) available through an institution.

Also, if a school is a better fit for you - in terms of degrees offered, location, support services, campus community, et cetera - you are likely to do better academically, which will likely increase your return on investment as well.

Third, you need to consider the transferability of your coursework at each respective institution, especially if you are concerned about hitting your lifetime financial aid limits. Different schools and different academic programs may count fewer or more of your credits. The question is: how many credits will you need to complete in order to earn your Bachelor's degree? If you need to take more classes at one school over another, that may well change which is more affordable.

In sum, you need to look at the whole picture to determine the affordability of various colleges. Furthermore, you must consider the long-term value and return on investment of different institutions, which may make it a "better deal" to pay more now.

In Part II, we examine financial strategies for lowering your transfer expenses, regardless of where you choose to attend.