Private Colleges Offer Their Own Scholarships
Choosing between private and public four-year universities and colleges is a big decision that will impact your educational journey and financial future. Let’s look at how colleges are funded and the hidden aid you may not be aware of that is offered by private colleges.
Private: Privately funded schools draw from endowment funds and tuition dollars and usually list higher tuition costs than public institutions. Here’s where it gets interesting. Private colleges may be more affordable than you think since they offer financial aid based on merit or need. Don’t shy aware of applying to one or more private colleges because depending upon your situation you could be offered:
- Substantial tuition discounts. According to the National Association of College and University Business Officers (NACUBO), the estimated average undergraduate tuition discount in the 2021-22 school year was nearly 50%. These discounts can significantly narrow the cost gap between private and public schools. Additionally, many Ivy League schools, like Princeton University, meet students’ total demonstrated need. Families earning $160,000 or less can have their tuition covered, and room and board may also be discounted based on income.
- Merit-based scholarships. If you excel academically or participate in extracurricular activities, you could receive substantial aid from a private college.
- First-generation and low-income support. In the 2021-22 school year, NACUBO reported that 89.5% of first-time, full-time freshmen at private nonprofit colleges received institutional grants or scholarships.
When considering different colleges, it’s important to calculate and compare the final out-of-pocket costs you will be paying. Expenses include the cost of tuition (plus fees, books, housing, and other costs) minus any scholarships and financial aid offers. By doing so, you can make an informed decision about which school aligns best with your financial situation and educational goals. Remember, it’s not just about the initial sticker price; it’s about the aid that lies beneath.