Five Summer To-Dos for the College Bound Student

Students heading off to college often take a “breather” the summer before they land on campus, but that’s a bad idea. To avoid becoming part of the 30% of students who drop out or fail out in their first year of school, you should do everything you can this summer to prepare for college. Start with these five strategies:

1. Plan your finances with a six year outlook. The average price of attendance for full-time students at public 4-year institutions is $15,100, and $29,500 at private not-for-profit 4-year institutions. That means a four year college degree will cost you anywhere from $39,200 to $118,000. With 63% of students now taking on average six years to graduate, the price tag will actually be $90,600 to $177,000. So the question is: how are you (and your parents) going to pay for that? How much of that will your military affiliation help you pay for exactly? How much money have your parents set aside, and how much can they set aside in coming years? You’ll likely be among the 70% of students receiving financial aid, so what types do you plan on securing in the long-term beyond your freshman year? Takeaway: Spend your summer plotting your finances over the next six years and applying for at minimum of 30 scholarships (filling out one application every 3 days).

2. Research the cost of living and other "miscellaneous fees" at your school. When school’s estimate their “total cost” or “student budget,” they typically include tuition and fees, books and materials, and an allowance for living expenses. The problem with their figures, however, is that they are typically low (this benefits them for marketing, but not you for budgeting). Schools rarely include common costs like membership fees (e.g. sororities, fraternities), car/parking expenses, health expenses, and, of course, partying expenses. Takeaway: Know how much cash you’ll be spending so you can save, budget, and avoid Ramen noodles for breakfast, lunch, and dinner.

3. Work over the summer and have a job lined up for Fall. A summer job will accomplish three things for you. First, it helps you better appreciate the value of money, which you’ll be spending a LOT of soon. Second, it puts you on a schedule and develops your time management skills. Third, it prepares you for what’s coming—you’ll likely be a member of the 60% of students who work in college. It’s also important that you have a job lined up on campus or in your college community before school starts. By doing so, you can earn spending money, sign-up for classes that fit into your schedule, and, most importantly, not end up having to choose between the “leftover” jobs on campus (the good jobs are almost always  snapped up before the start of the year). Takeaway: Work to earn so you can pay to learn.

4. Open checking, savings, and credit card accounts. Too many students wait to get these basic financial accounts until college. The problem is that the banks and credit unions on campus take advantage of that, charging higher fees and providing less than attractive rates. You should do your research and open up checking, savings, and credit card accounts with attractive rates before landing on campus. Over the course of six years, bad rates grow into big headaches. Takeaway: Get your finances squared away now, or taken away later.

5. Ensure you’re ready, and know the costs of dropping out. 30% of new college students will drop out in their first year, and 50% of college students will drop out or fail out before graduating. Drop outs have to shoulder an extraordinary financial burden. Financial aid and interest repayment often begins immediately, which causes many dropouts to default on their loans, which leads to bad credit. Dropouts also earn 62% less in the workforce, amounting to a loss of over $1 million over the course of their lifetime. Takeaway: Do everything you can this summer to prepare yourself for school emotionally, socially, academically and financially. Read books, attend college readiness seminars, interview current college students. The more you know now, the less likely you will be to drop out later.