Lock in Tuition or negotiate

Tuition just about always moves in the same direction: up. So wouldn't it be great if students could lock in tuition at their college and know they will pay the same amount for four years?

It seems like a no-brainer, especially now. But some colleges have tried the strategy only to find it hard to convince families that it's a good idea.

That hasn't stopped colleges from trying. The University of Texas at Dallas began its Guaranteed Tuition Rate Plan in the fall of 2007, as a way to "provide simplicity, predictability, and clarity for our students," says Curt Eley, the university's vice president for enrollment management.

Under the plan, incoming students are promised that their tuition and mandatory fees will remain the same for four years from the time they begin their studies. "It takes what I call the inflation risk out of tuition and fees for each individual student," Mr. Eley says. The university even offers the guarantee to students enrolling in Texas community colleges who plan to transfer. Those students sign a document that binds the university to charge them the university's current tuition rate but doesn't obligate them to attend.

The Dallas campus's program began before the economy tanked, but it could be even better for families now. Many households don't expect their incomes to go up in the next year, and it would be especially helpful if their college expenses remained flat.

Let me ask you a question...when you went to purchase or lease your car - did you accept the first offer they made you, or did you look at their price as a "starting point" for negotiation?

What about when you bought your home? Did you purchase it at list price, or did you muster up all of your negotiating skills to try to get the seller to come down in price? You get my point?

Why should college be any different?
Even the cheapest state schools today will cost you about $10,000 between tuition, fees, books, room and board, and miscellaneous expenses.

A private university can easily cost you $30,000 a year and up.
Now multiply those amounts by 4. A college education for your child (or children) is one of the single biggest investments you will ever make in your entire lifetime!
Doesn't it make sense to treat it like any other major purchase, and do your best to negotiate the best possible financial aid package for your child?
So Where Do You Begin?

For starters, your children should be doing their best to get good grades in school.
In addition, they should be taking some type of review course to get a good score on their SAT's/ACT's (it's a little late for seniors, but not for juniors).
Second, you must start narrowing down your school choices to colleges and universities where your child lies in the top 25% of the applicant pool - this will significantly increase your chances of getting a good financial aid package.

Next, you must start researching schools that have the best policies on giving good financial aid packages. You want your child to apply to schools that will meet most or all of your family's financial need. It is also important to pick schools that have a history of giving more FREE money, fewer loans.

Hint - Pick schools that are well endowed and have a lot of money to give out to students. Private schools tend to have far more money available than state schools do. I recommend picking a couple of state schools as "safety" schools and the rest should be well-endowed private schools.

Fourth, you must apply to, at least, 6 - 8 schools to insure that your child gets a good offer from 1 or 2 of them. If all the schools are the same academic caliber, and some give you a good financial aid package while others give you poor packages - it will allow you to pit one college against the other when negotiating for a better financial aid package.

Schools of equal caliber will often times compete for the same student by offering aggressive financial aid packages. Be sure to take advantage of this.
Lastly, you must know your numbers in advance.
For example, do you know/remember what your "Expected Family Contribution" is?
It is the minimum amount that the government expects you to pay towards ANY school.
Schools determine what they are going to offer you by subtracting your Family Contribution from their "Cost of Attendance".
This provides them with your family's "Financial Need".