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At 18, Robyn Shemwell's heart was set on attending Loyola University in Chicago to study social work.

"I was ready to take out $40,000 each year in student loans because at 18 years old, I had no reference point for that amount of money," Shemwell, now 23, recalls. "I simply thought that all colleges would cost this amount and that this was a normal amount for students to take out in loans each year."

She feels bad when she remembers the tears in her parents' eyes as they told her they wouldn't cosign a private loan.

"My hardworking, middle-class parents were upset with themselves for not being able to provide me with a ludicrous amount of tuition money so that I could go to my dream school," Shemwell says.

After graduating from Madison West High School, Shemwell reluctantly went to a less expensive state school. She quickly grew to love it. Now an associate recruiter for ManpowerGroup RPO in Milwaukee, she has two bachelor's degrees, a certificate and student loan debt from the University of Wisconsin-Milwaukee totaling less than one year's tuition at Loyola.

"I thank them at every chance I get for helping me avoid the biggest mistake of my life," she says of her parents.

The Shemwells reflect a growing trend noted last week in the seventh annual "How America Saves for College" study by the lender Sallie Mae.

Two-thirds of families in the 2014 study said they eliminated colleges from their selection set because of cost. School choice, in-state pricing, ability to commute and accelerated coursework are all options families are choosing to control costs and avoid taking out hefty loans that could hinder students well into adulthood, the study found.

At the same time, private schools such as Marquette University are focusing more attention on fundraising for need-based scholarships to reduce net cost, make an education more affordable for families and remain competitive. Marquette has received at least $4.5 million in gifts toward scholarship aid in the past seven months alone.

Another crop of rising high school seniors is just beginning the process of applying to colleges — the online Common Application many colleges use went live on Friday. Prospective college students and their parents in coming months will wrestle with complicated decisions that will have long-term financial implications.

Avoiding debt

More families are choosing to avoid debt. Out-of-pocket contributions to cover college grew in 2014 after three years of decreases, while borrowing declined, according to the Sallie Mae report.

Parents are picking up a larger share of the cost of college — now typically 30% — from income and savings. Students typically cover 12% between income and savings. Borrowed money now covers 22%, down from 27% in the two previous years, Sallie Mae says.

"It's not that debt is the enemy; it's ability to pay for debt," said Soyeon Shim, dean of the UW-Madison School of Human Ecology, who has extensively researched college student attitudes toward money management and spending behavior.

Independent of debt, Shim said, "those who plan ahead save more. That's always the most important part of saving."

Only 41% of families have a plan for how to pay for college, Sallie Mae reports. Parents with a plan have saved 83% more in their college-savings fund ($18,518) than savers who don't have a plan ($10,105), the report suggests.

The proportion of families saving for college declined during the recession from 62% in 2009 to 50% in 2013. But it's rebounding, according to Sallie Mae. The decline has leveled at 51% of families saving for college, and the average amount saved has increased to $15,346, up from $11,781 last year.

After a year at UWM, Shemwell realized social work wasn't the field she wanted to pursue and changed degree tracks. It cost her an extra semester of time and money, but it was manageable because she attended an affordable in-state school, she says.

Shemwell graduated magna cum laude in 4.5 years and financed her UWM education mainly through unsubsidized federal loans. Most of the remaining balance each semester was covered by contributions from her parents. She also contributed her own money.

"What I've taken away from this situation — besides the fact that my parents are incredibly wise — is that high school students need better education when it comes to financing college," Shemwell says. "The average 18-year-old has no idea what it means to pay $40,000 each year in tuition, let alone what it means to accrue debt of this magnitude."

Rule of thumb for borrowing

Tom Tonnesen, director and consultant for College Admissions Pathways in Cedarburg, over the past four years has assisted nearly 200 families in southeast Wisconsin with the college admissions process — from preparing for college admissions tests to exploring financial aid and scholarships.

"I have sat at many clients' dining room tables as we have discussed the challenges of paying for college, completing financial aid forms, and weighing competing financial aid offers from various colleges," Tonnesen said.

He reminds families of the rule of thumb for college borrowing: Total debt at graduation should not exceed what young borrowers expect to earn the first year in their field.

While most of his clients tend to have higher incomes, Tonnesen said, he sees families of lesser means solely seeking help to find scholarships and fill out the federal financial aid form to apply for need-based assistance.

"It's what you don't know that will hurt you," Tonnesen said. "I've been at dining room tables where there's literally tears when the financial aid offers come in."

He cautions parents that a private school's sticker price shouldn't deter students from applying — most students at private schools receive at least some financial aid — but says families should do their homework upfront to avoid disappointment later.

He also points them to net price calculators the federal government requires schools to post on their websites for cost transparency.

Parkside recommends website

At UW-Parkside, where roughly 55% of entering students are first-generation college students, the financial aid office encourages financial awareness and smart borrowing before students decide to enroll, according to Kristina Klemens, director of scholarships and financial aid.

"In the (financial aid) award communications we send to students, we direct students to utilize our financial literacy website, Cash Course, which has tools about budgeting, understanding credit, managing student debt and a slew of other financial literacy tools," Klemens said.

In one-on-one counseling sessions, financial aid staff discuss with students the impact of loan indebtedness on their future and show them tools such as the National Student Loan Data System to help them monitor their indebtedness as they progress toward a degree, Klemens said.

UW-Parkside's Class of 2014 had an average federal loan debt of $29,886, close to the national average, Klemens said.

As she was growing up, Shemwell and her parents didn't really talk about saving for college, she recalls. But her parents were keenly focused on financial security and saving money in general.

"I think that for my family, and for many other families, it really boils down to the fact that so much has changed since our parents went to college, in terms of financing," Shemwell said. "Most higher education institutions and financial institutions market student loans as a great solution to their financing issues."

Shemwell believes colleges and financial institutions have a responsibility to put the cost of an education into the context of life after college: What will monthly payments look like; what's the average starting salary for a student's chosen field; and how long will it typically take to find a full-time job in the student's field after graduating.

"And if this isn't the responsibility of the institution," Shemwell says, "then we as communities need to start more discussions and programs so that these issues are being talked about instead of swept under a rug."