Did you just win a college scholarship? Or not? Marketing can be deceptive

Dig deep into financial aid letters to understand the true cost of going to college.(Photo: Kurt Strazdins)

What high school student wouldn't love to pick up the phone and hear that he or she  has been selected for a $20,000 scholarship?

The college wasn't on your radar. But then again, that's probably why you just got that call.

As a parent of a high school senior, I'm seeing some quirky marketing that drives up a student's hope along with, of course, fueling college applications.

I took a call for my son the other day and was told he was chosen for a scholarship that would be renewable for $20,000. The man said he was calling from Brooklyn after I asked and told me my son could get $20,000 to go to Olivet. Just go to their website and put in an application. My son was chosen supposedly because of his test scores and grades.

Really? Frankly, I wasn't certain what school was calling.

Later, my husband found the e-mail from the Illinois-based Olivet Nazarene University, which had an important P.S. that was not mentioned on the phone.

"This is an estimated award based on unofficial information. For an official award letter, please send us a copy of your high school transcript and ACT or SAT scores upon completion of your application for admission."

Let the crazy college math begin. Many college applications are due by Nov. 1 or earlier. Some private schools are even waiving $70 application fees in the marketing letters that are showing up at our house.

But what should students know about the application process and potential scholarships? I

Here are five tips:

1) Don't read too much into a marketing letter from a college.Colleges can mention potential scholarships as a recruiting tool.

"Some are trying to recruit talented students. Others are trying to recruit wealthier students," said Mark Kantrowitz, publisher of Edvisors.com and author of Twisdoms About Paying for College.

He suggests that students compare their grade point average and test scores with the requirements for the academic scholarship.

Kantrowitz said he has seen much marketing by some colleges to students who are unlikely to be admitted in the long run.

"These colleges try to increase the number of applications they receive, so that they appear to be more selective," Kantrowitz said.

2) What's the real cost here?Financial aid award letters tend to go out in late March or early April but you can go online to look at net price calculators now to get an estimate of actual prices. Net price calculators are required by the U.S. Department of Education to be on college websites.

The net price is essentially a "discounted sticker price," Kantrowitz said.

But it is an online estimate. One school's site said that 84% of the students find that the calculator brings them within $5,000 of the actual net price.

The more questions a net calculator asks, the more accurate the results, Kantrowitz said.

Be prepared to spend 20 minutes or so to fill out the online information to find out the "net price" at some schools.

One private school's site, Fordham University, asked me for my son's ACT scores in math, reading, English and science. I know his total ACT score. But I have no idea on the breakdown in categories. The site also wanted to know his ranking in his class, as well as his GPA. That's information I don't know, so you'd need to take time to get that information, too.

Net price calculators also ask questions about the family's income.

Do not to confuse terms like "net cost" with "net price." Kantrowitz noted that "net cost" can show up in bigger print and make it look like the school could be affordable. But he noted that the cost figure would include student loans.

"It's frankly misleading," Kantrowitz said. "It's characterizing loans as if they cut college costs — they don't."

Reyna Gobel, author of CliffsNotes: Parents' Guide to Paying for College and Repaying Student Loans, which is to be released in October, said high school students don't just want to apply to a state university because that school has the lowest sticker price.

Many private schools have scholarship money that can cut the cost, she said. But again, make sure you understand what kind of scholarships or grants are offered.

"Get away from the Internet and get on the phone," Gobel said. Talk to someone at the college admissions office.

The federal Consumer Financial Protection Bureau has a "College Scorecard" online that can help you compare college costs and financial aid offers. See www.consumerfinance.gov/paying-for-college.

3) Is this grant renewable?

Kantrowitz notes that about half of colleges practice what's known as front-loading grants. So a freshman could receive a good deal of money upfront. But here's the kicker: The aid could be a few hundred or a few thousand dollars less than that initial amount in future years.

What you don't know now could add thousands and thousands of dollars in student loan debt later.

If the scholarship is renewable, find out the terms. What's the minimum grade point average that you'd need to keep that grant or scholarship? Find out what money might really be a loan and need to be paid back.

4) Think about ways to pay for college before you pick a school. Pay attention to scholarship deadlines that are in the fall, long before you choose a school. CliffsNotes author Gobel said high school counselors can be incredible resources because they have a good idea of the requirements for certain scholarships.

5) Invest time in researching a potential career as you research colleges.

Gobel suggests that students contact people at places where they'd like to work. Talk to some professors at the colleges. Ask about internships and where students are working after they graduate. Be ready to put in some extra work long before you attend that first class on campus.

Contact Susan Tompor: 313-222-8876 or stompor@freepress.com. Follow Susan on Twitter @Tompor.

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