Armonk Businessman Offers College Financial Advice

ARMONK, N.Y. -- Neal Schwartz, owner of Tutoring Club, an Armonk business that tutors students and helps with college prep, will speak on reducing the cost of private college at the North Castle Public Library on Wednesday evening.

"Attending private colleges for area residents is a prestige factor. If they don't get into a handful of about 20 schools, their life is over,” Schwartz said.

The cost of a private education has risen by seven percent a year for the past 20 years and now costs about $50,000 a year at the top private schools.

"The best way to afford these rates isn't to figure out how to pay for it, but how to change the cost," Schwartz said. What he is referring to is to take advantage of discount rates that many top schools offer, and determine the best ways to get scholarships and loans from the schools.

A potential pitfall may be applying to favorite schools on an early decision basis. "One of the downsides of early decisions is if you want to apply for financial aid it's a contradiction," Schwartz said. "If the schools know they're your top choice they may not offer you the best financial aid."

Schwartz also said that parents must be aware of the financial aid forms they fill out. "Most people have been roboticized when it comes to the federal forms," he said. "They assume there's an overseeing agency but there is none because it's the school's funds they're allocating, not the government's."

Prospective students should find a school that's the right fit, combined with what's best academically and financially Shwartz says. 

He also points out that a public university might not be much cheaper than a top private school. Students attending public schools often change their majors and spend five years earning a degree. But the extra year may cost up to $50,000 and prevent the student from earning a year of income.

"If students can use the endowment and financial aid at a private college it can be at or near the cost of a public institution," Schwartz said.

 

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