Over the years the cost of higher education has increased dramatically and, at times, the financial burden on families can seem unbearable. When the advantages of a Colby education are evaluated, and particularly when the profound effect on each student's life is considered, Colby offers genuine value. Still, a Colby education is costly, and we recognize that meeting expenses can present a complex challenge. In order to help you devise the best financial plan for your family, we have prepared this page to answer some basic questions.
How much does a Colby education cost?Each year, a portion of the College's budget is paid through gifts, grants and endowment income. In 2007-08, for example, those subsidies averaged approximately $18,100 per student. The actual 2008-09 comprehensive fee, charged by the College for tuition, fees, room and board is expected to be $48,520. In addition, financial aid, in the form of grants and student loans, is available to help eligible students further reduce the bill. All families may apply for either a monthly payment program or a parent loan to pay the annual charges.
Unlike some colleges, Colby's comprehensive fee covers all basic student charges, including tuition, room, board, and health center services, all on-campus athletic events (except NCAA and conference championships), lab fees, unlimited use of College computers, Student Association activities, and individual music instruction for music majors. In addition to these basic charges, students are responsible for the study abroad program's administrative fee and fees for off-campus January terms, music lessons (for students who are not music majors), admission to away athletic events, some concerts and performing arts events, Colby Outdoor Orientation Trips (COOT), and an estimated $1,600 in personal expenses, books, and supplies.
It is important to plan ahead and budget realistically for the full four-year term of enrollment. Personal expenses may be slightly higher in the first and senior years. Optional expenses such as room decoration and computers will not necessarily be repeated after the first year, but the cost of graduate school applications, exams or job interviews, and senior week dues should be included for seniors. Books and supplies will vary from semester to semester.
Which loan or payment plan is best for us?There are many factors that will affect your decision on how you pay your college bills, including the size of the required payment, your current income, other obligations, future expenses, and employment plans. We suggest that you start by estimating the amount you can pay per year and then comparing that amount to the "amount to be paid by parents" in the payment worksheet.
If you think that the total amount is manageable and that you will be able to pay half in August and half in January, then you may choose the standard semester payment plan. If the amount is manageable, but it would be more convenient to spread the payments over 10 months, you may select the monthly payment plan. If you would prefer to borrow rather than to pay the entire bill in one year, it may be helpful to ask yourself the following questions as you consider a parent loan:
How much am I currently paying per month on existing debts? Have I been able to maintain a good credit history with previous loans?
What will my income be during the next 10 to 20 years? Would I need to modify my retirement plans if I take a loan?
If I itemize deductions for federal or state tax purposes, would deducting the interest paid on the loan allow me to reduce my federal or state income taxes? An attorney or tax expert would be the best person to help you answer this question and questions you may have about the Hope Scholarship and Lifetime Learning Credit, and the IRS "tuition and fees" adjustment. Additional information on these, and other tax benefits, is available on the
IRS web site.
What other major expenses do I expect to have within the next few years? Will other family members enter college in the near future? How will that affect my ability to repay the loan? How will the loan affect my ability to pay the college bills for my other enrolled dependents? Is it better to pay now with existing assets and borrow later for other family members, or to borrow now and save assets for later expenses?
When considering parent loans, keep in mind that Federal law now permits each student to borrow an unsubsidized loan through the Federal Stafford Loan Program if the student is ineligible for a maximum subsidized Ford/Stafford Loan. Eligibility for subsidized Stafford Loans is need-based, determined from financial information provided on the Free Application for Federal Student Aid (FAFSA). No payment is required on a subsidized Stafford Loan during the period of enrollment; on an unsubsidized Stafford Loan, the student is responsible for the interest during the period of enrollment. Federal Stafford Loans are limited to $3,500 for first-year students, $4,500 for sophomores, and $5,500 for juniors and seniors. Please contact either the Colby Student Financial Services Office or the Office of Admissions and Financial Aid if you have not already completed a FAFSA and need to obtain that form, or file electronically through the
FAFSA Website. No additional application is required for the Federal Stafford Loan.
What payment plans does Colby offer?The standard payment plan at Colby is by semester. Half of the comprehensive fee is paid in August and half in January. The Semester Plan includes
no initial fees or interest.
In order to provide flexibility, Colby also accepts the monthly
TuitionPay payment plan, administered by Sallie Mae, which enables families to divide the total charges into 10 equal payments beginning in May. A $55 fee is charged at the time of application, but there are no interest or finance charges. This plan also offers, at no additional cost, life insurance coverage on the person responsible for making payments. You can estimate your monthly payment by calculating the base figure for monthly payment plans in the worksheet and dividing it by ten.
- Interest rates will differ - lower rates may reduce the amount of the monthly payment.
- Some rates are fixed rather than variable - fixed rates will protect you from rising interest rates.
- The length of the repayment term will vary - a longer term of repayment usually results in lower monthly payments.
Some programs permit interest-only payments during periods of enrollment. Interest-only payments enable you to keep the monthly payments as low as possible during the period of enrollment but will increase either the length of repayment or the size of the monthly payment after graduation. Some programs permit the capitalization of interest during enrollment; that is, no interest payments are required until after graduation, but the total debt will be much larger at that time.
Some programs provide the option of home equity security, which may enable you to deduct the interest on your federal income tax return. The fees you will pay for the paperwork necessary to secure the loan with home equity will vary.
We encourage you to call Student Financial Services or the Office of Admissions and Financial Aid if you would like to discuss the questions listed here or if you have other concerns. We understand the importance of your decision about how best to meet college costs, and we will be happy to help in any way we can as you plan for the coming years' expenses. Please refer to the directory below for the phone number of the office that will best be able to serve you.
Entering Students
The Admissions and Financial Aid Office works with members of the Class of 2012, transfer students, and their parents throughout the aid application and decision-making process until June 30. All financial questions from entering students should be directed to this office until June 30, 2008.
Location: Lunder House
Address:
Office of Admissions and Financial Aid
4800 Mayflower Hill
Waterville, Maine 04901-8848
After June 30, 2008, entering students will begin working with the Student Financial Services Office and should use the phone numbers and address below.
Currently Enrolled StudentsThe
Student Financial Services Office handles all aspects of student account payments and financial aid for enrolled students. This office provides students and parents with financial service and information, from payment of the initial deposit through enrollment and final repayment of student loans.
Services include:
- Payments on the Colby bill
- Monthly payment plans
- Parent loans
- Grants and student loans
- Financial aid transcripts
- Student employment
- Colby and Perkins loan repayment
Location: Garrison-Foster, first floor
Address:
Student Financial Services
4130 Mayflower Hill
Waterville, Maine 04901-8841
Phone: 800-723-4033 or 207-859-4132
Fax: 207-859-4122
E-mail:
sfs@colby.edu