Don't dismiss private colleges due to cost
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Trends in private college costs
Going forward, tuition costs at private colleges and universities are expected to continue rising, though at a slower rate.

An early look at 2006-2007 tuition increases indicate an average 5.4 percent rise, the slowest rate of increase in six years, according to National Association of Independent Colleges and Universities. Better yet, some schools have actually cut sticker prices to attract students.

In December, Alliant International University in San Diego announced it would cut its tuition 26 percent this fall, joining a small but growing list of schools bucking the tuition trend. In 2005-2006, Chicago-based North Park University cut its tuition by 32 percent, while Roosevelt University, also in Chicago, reduced its fare by 12 percent. In fact, since Muskingum University in New Concord, Ohio, cut its tuition by 29 percent in 1996, 19 private institutions have followed suit.

Some private colleges and universities have cut tuition prices

• 2006-2007 Alliant International University, San Diego, will cut tuition 26 percent • 2005-2006 North Park University, Chicago, cut tuition by 32 percent Roosevelt University, Chicago, cut tuition by 2 percent • 2004-2005 Eureka College, Eureka, Ill., cut tuition by 30 percent Lourdes College, Sylvania, Ohio, cut tuition by 41 percent Salem International University, Salem, W.Va., cut tuition by 35 percent • 2003-2004 Westminster College, Fulton, Mo., cut tuition by 20 percent Albertson College, Caldwell, Idaho, cut tuition by 30 percent Waldorf College, Forest City, Iowa, cut tuition by 15 percent • 2002-2003 Heidelberg College, Tiffin, Ohio, cut tuition by 32 percent Bethany College, Bethany, W.Va., cut tuition by 42 percent • 1999-2000 Marlboro College, Marlboro, Vt., cut tuition by 8 percent Wells College, Aurora, N.Y., cut tuition by 30 percent   Source: National Association of Independent Colleges and Universities

"A lot of schools are putting in tuition freezes, which levels tuition for incoming students and guarantees them the same rate for those four years," says Mark Kantrowitz, publisher of FinAid.org. "Schools get a lot of publicity for making cuts, but they usually try to make up for the lost income by increasing enrollment. And they're usually the ones that directly compete with other schools locally."

At the same time, Princeton's no-loan program, launched in 2001, touched off a tuition price war of sorts among its competing rivals. Today, Harvard University, Yale University, Cornell University and Stanford University have their own programs in place to boost enrollment of lower-income students.

"It's largely been with institutions with large endowments and relatively few lower-income students to begin with," says Kantrowitz.

Give it the old college try
So, before you bag the idea of a brand-name degree, first determine how much it will actually cost. And, of course, employ all of the tools available to get that sticker price under control. It worked for James.

"I really made an effort to make sure the financial aid officers understood my unique family situation," she says. "I strongly encourage all students to apply to any college they think they would really like to go to, and wait until they receive a financial aid offer to seriously consider whether or not it will be financially feasible for their families. I didn't have to think about whether a better quality education was worth more debt."

To score the most financial aid dollars, become an education consumer. See "Strategies for getting college financial aid."