5 Reasons Why Private Colleges May Be Cheaper!

Many parents automatically rule out private colleges as "too expensive." This is an all too common mistake among parents, especially those from lower-income households, who are even more prone to college sticker shock.

Here are 5 good reasons why a private college education may be cheaper for your child than you realize!

1) There's MORE MONEY at private colleges! The fact is, despite an average sticker price of $30,300 a year for a four-year private college and a significantly lower $12,800 for public, a family's actual expenses at either type of institutions are often comparable. Why? Because the privates are simply handing out more money than their public counterparts. There has been a tremendous increase in merit awards and need-based scholarships at private colleges.

Colleges recognize that tuition costs have gone up much faster than incomes over the past few decades, and increased financial aid helps them offset that cost.

2) Private colleges compete for good students! What's surprising to many parents is that their kid doesn't have to be a genius to receive merit-based aid. Rather, the key is finding the right school. If you can find a good institution where you're among the better students, your chances for better financial aid are going to improve dramatically!

Colleges compete for the best students they can get through "preferential packaging." The students that a school wants the most will receive financial aid comprised largely of scholarships, while less desirable candidates are offered more loans and little to no "free" money.

So...who wins? Students who are in the tope 25% of their incoming class based on their GPA and ACT or SAT test scores (in addition to high school class ranking) will be the ones who will earn the most "free" money!

3) Private Colleges meet a bigger percentage of need! In general, a private school will give you more financial aid, scholarships and grant aid while, at a public school, financial aid comes mostly in the form of loans. Private colleges typically cover between 80% and 100% of financial need. About 60% to 70% of that will be in the form of grants. Meanwhile, 75 of the nation's top private schools have a policy of meeting 100% of student need. At public colleges, between 60% and 80% of need is met, with 85% of aid offered in the form of loans.

4) They're more willing to consider special circumstances! Public colleges determine financial need by using the FAFSA form, while private colleges are more inquisitive about your personal family finances. The forms used at private colleges allows for more supplemental information about your personal situation. The interaction within the private college sector is more intimate in evaluating these special circumstances, with the possibility of some money behind the scenes if they accept your reasons. That can be helpful if you have special circumstances, such as a recent job loss or extensive medical bills. At public institutions, the process is automatic, there's really no personal review of the situation. The appeals process is much more limited in scope!

5) Your child may graduate sooner! It's an often unknown fact among parents that may add several thousand dollars to your child's public education: Students take longer to graduate from public college — an average of five years or more — than private schools, where most students graduate in four years. In 2005, 57% of private college students earned a degree within five years, compared with 42% for public, according to ACT, which administers the ACT tests.