Students begin to build a list of colleges that they are interested in before they apply for college admissions.

Students should consider academic fit and financial fit when creating a balanced college list. Students should choose three schools that offer financial aid and at least one safety school.

Here are some tips to help you create a college list that is both academically and financially sound.

Apply to a Variety of Colleges

It is a common error to limit your choices to colleges that are highly selective. Even the most talented students are rejected by top colleges. Even if your high school valedictorian, you may not be accepted to Ivy League colleges. College admission is not based solely on your grades or test scores.

To ensure that students are capable of succeeding in college, colleges consider their academic performance. Higher test scores and grades do not usually increase the chances of admission once that threshold has been met. Colleges instead focus on extracurricular activities such as volunteering, hobbies and playing musical instruments.

"Colleges don't want well-rounded students. They want a well-rounded student body." "

Colleges don't want well-rounded students. It would be difficult to put together an orchestra if everyone at the college played the picolo. Colleges value a variety of talents.

More important than breadth is depth. It is more important to choose a few activities, pursue them for years, and achieve excellence than being part of many groups.

The college list should be determined based on the student’s talents and interests. You should shop around to find the best colleges.

Academic Fit: Reach, Match and Safety Schools

Colleges that match the student's academic abilities should be included on the college list. This is often done by applying to multiple colleges, also known as reach, match, and safety schools.

The U.S. Department of Education's College Navigator tool gives information about the scores of first-year students at each college on their 25th and 75th percentile admissions tests.

A college can be classified by comparing its academic performance to the scores of the 25th, 75th, and 30th percentile tests.

• Reach Schools. A college considered a reach school if the student's test scores fall below the 25th percentile. The student will likely be among the lowest quarter of college students and have difficulty keeping up with peers if they are admitted. Reach schools are some of the most selective colleges, so admission is not likely.
• Match Schools. The college will accept students whose test scores fall between the 25th-75th percentiles and the college's 75th percentiles. There are good chances of being admitted.
• Safety Schools. Colleges that have student test scores above the 75th percentile are considered safety schools. Because the student is in the top quarter of their college classes, safety schools will likely admit them. If the college is second- or third-tier, the college might offer scholarships to attract students.

Academic fit is also dependent on the college's ability to offer the student the major they want and the average class size.

Financial Aid Safety Schools

A financial aid safety school should be one of the safety schools.

A financial aid safety school allows students to be admitted even if they do not receive financial aid.

A public college located in your state is usually the cheapest option.

Sixty-six colleges also have generous "no loan" financial aid policies. These policies replace loans with grants and are available at about half the colleges. These colleges with no loans are among the most exclusive, making it harder to get in.

Public colleges offer a high-quality education, sometimes even better, at a fraction of the cost of private colleges.

Related:Student Loans and Financial Aid Programs by State

The Pick 3 Approach

Students often have one college in mind. Students can experience great disappointment if they don't get into their dream school or if they are unable to afford it.

Better to choose three dream colleges and not all reach schools.

The American Freshman Survey (HERI) by UCLA's Higher Education Research Institute (HERI) shows that more than 93% American freshmen are enrolled in one of their top three choices.

Pick-three increases the chance that the student will be accepted to a college of their dreams and can afford to pay for it.

Students should also apply for other colleges so they have an alternative plan in the event they are not accepted to their dream school.

The American Freshman Survey found that half of high school seniors apply for 4 to 6 colleges. This is a fair number of applications. 11% of applicants apply to only one college. This is too many. A mere 18% of students apply to more than 10 colleges. This will make it more difficult for them to visit all the colleges. It's better to narrow down your college list before you apply for admission.

Financial Fit: Net Price

When creating a college list, parents and students should take into account financial fit.

Sometimes parents will tell their child that if they get in, they'll pay. But, many parents don't realize the cost of college today is higher than it was 20 years ago. The parents aren't able to say no when their child is accepted into a prestigious college. You can practice saying no to little things so it is easier to say no to big-ticket items later. Even if you are crying, this will help. The child will run out of money if they enroll in this college. They may have to drop out or transfer to another college that is less expensive.

Compare college costs using the net price of each college to assess financial fit.

The college's sticker price minus the gift aid is called the net price.

• The annual cost of attendance (or sticker price) is the total of tuition, required fees and room and board. It also includes books, supplies and equipment.
• Gift Aid is money that doesn't need to be repaid. It includes scholarships, grants, tuition waivers, and other money that doesn't have to be repaid.

Net price = Cost to Attendance - Gift Aid

The net price is a discount on the sticker price. The net price represents the sum that the family will need to save, contribute from income, and borrow money to cover college costs for the first year.

Each college has a net-price calculator that provides a customized estimate of the student's net cost based on income, dependency status and household size. The estimated net price will usually be within $500 of actual cost. Some net price calculators are based on two-year-old college costs data. Some are more current. Calculators who ask more questions are more likely to give more accurate estimates.

The net price represents a one-year estimate for college costs. You may see a different net price over the years, due to changes in family finances. Half of colleges use front-loading to grant freshmen. This allows them to mix grants and loans more favorably than upperclassmen. Even if grants are not changed after the first year of college, families may need to borrow more during subsequent years because college costs have increased.

Check the U.S. Department of Education's College Navigator tool to determine if a college front-loads grants. This tool gives data about scholarship and grant aid for undergraduates who are full-time or first-time. The decrease in the percentage of students receiving grants or the average grant could indicate that colleges are front-loading grants.

A fifth of colleges practice scholarship displacement. This is where a private scholarship results in a decrease in college grants. This means that the net price of a student does not drop despite their hard work to win a scholarship. Scholarship displacement is a common problem for about half of scholarship recipients. If the college has a vague policy, you can check its website for information about their outside scholarship policy.

There is a strong correlation between net price and student loans debt upon graduation.

College Affordability Index

The College Affordability Index (CASI) is an easy way to determine whether college is affordable.

The College Affordability Index measures the ratio of the family's total income to the net price for a year.

College Affordability Index= Total Family Income

The college is affordable if the College Affordability Index falls below 25%. The college is not affordable if it is higher than 25%.

The four-year net price can be used to fine tune the college affordability index. Resources include college savings, income contributions, and student debt. Parents don't have to share their income with their children. They can just tell them how much they make from it. You can also share your net worth with your children instead of sharing it. Instead, you could simply tell them how much money you have saved for college.

The four-year net cost is not simply the sum of the net prices for the first two years. Adjustments for price increases after the first year should be made to the four-year net. Consider the average grant amounts, differences in attendance costs, and the differences in average grants. The cost of attendance is usually 10% to 20% more than the four-year net.

If student loan debt at graduation exceeds or equals the annual starting salary, it is acceptable and manageable. The borrower should be able afford to repay student loan debt within ten years if the total amount is lower than the annual income.

The college is affordable if the total resources are equal to or greater than the four-year net cost.

Other Factors

When creating a college list, there are many other factors to consider.

• Graduation rates and retention rates, including on time graduation rates and average time to graduate
• Average debt at graduation
• Rates of job placement
• Average income after graduation

College Navigator may provide some information for the college in general, but College Scorecard provides information about specific academic majors.

Colleges are a great place for students to try the food and take in the atmosphere. You will soon hate the food if you don't like it the first time you try it. The college visit should include a campus tour. Virtual tours are not enough. Students should also stay in dorms overnight and participate in classes.

The following are other common influences on college lists:

• Distance from home
• There are many housing options
• Accessibility to extracurricular activities, intramural or extramural athletics
• Size includes student-faculty ratio, class sizes, and total enrollment
• Setting (urbane, suburbane or rural).
• Public vs. Private
• Acceptance rate
• Diversity

Students can use a decision matrix to help them weigh the effects of all the factors that impact their interest in college. Some factors will filter out colleges (e.g. if the college does not offer the student's academic major or is too expensive), while others will help students prioritize between colleges.

Encourage your children to use the net price calculator of their college choice to help them steer them towards lower-cost colleges. You can plan college visits to more expensive colleges for cloudy days or days when students don't like the food served in the cafeteria.