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Friday, January 3, 2014

The More You Pay for College, the Better the College Education

How to Decrease College Costs
It's called the Chivas Regal Effect. This is the assumption that people equate high price with high quality. This marketing ploy has affected everything from soda to automobiles, and the cost of a college education. The reality is that most families do not pay full sticker price for college. For decades now, most colleges have been setting high prices, and then offering huge discounts. We like it. We're feel like we're getting a bargain.

However, change may be coming....

As families look to lower college costs, some schools are decreasing their prices, while others are offering fixed rate tuition for the entire time a student is enrolled. Concordia University in St. Paul, Minnesota cut tuition by 33% for the class entering in 2013-14. Sewanee, the University of the South, decreased tuition by 10% two years ago and will freeze the current costs for the freshmen class entering this fall. Colleges like University of Kansas are offering tuition guarantees. Students will know when they enter as freshmen, what their costs will be for the next four years. Other colleges, such as Juniata College in Huntingdon, PA offer an on-time graduation guarantee. If the students hasn't finished, the college will pay for the remaining classes needed to get the degree.
Juniata College Tuition Guarantee

Sometimes you really do get what you pay for, but when it comes to a college education, families and students need to carefully consider costs-vs-value. Think in terms of a four-year investment and consider programs like those mentioned above. If more college consumers ask for these special programs, more colleges will begin to offer them. Let us not be fooled by a marketing effect when it comes to paying for college. We're smarter than that!