In case you haven’t heard, the economy is in a bit of a “downward spiral.” Banks have collapsed, stocks are falling faster than Jack OR Jill, and mortgages are about as valuable as last year’s iBook. If you are listening to the news, you might be thinking that we are headed for the next Great Depression. Start standing in line NOW folks, because bread is going to be the hottest ticket in town.

I’m thinking, it’s a pretty good time to be in college.

When I was in High School, I watched every single Sex-in-the-City religiously. It looked like soon my life would be filled with high-heeled pumps and hip nightclubs. Turns out it was a pretty inaccurate college guide.

Instead, my independent urban student (and post-student) life is filled with Payless BOGO and Pabst Blue Ribbon. And you know what? I like it better that way. In spite of college loans, life is great when you are single, 21, and live with 4 other roommates in a 2 bedroom apartment. We just bought a Foreman Grill. It’s pretty pimp.

So long as I can pay my rent, I consider myself well-off. Sure the job market is a little tight, but at least I don’t have an actual career to be laid-off from. If your idea of a job is working at Starbucks or the Gap, than chances are, you’re going to be okay. Hey, even ex-exec’s can’t kick their caffeine habit.

For ye who sleep on futons and eat Ramen sandwiches, rejoice!

Now is a great time to have absolutely no money saved! I thank the day I was never able to accumulate enough capital to invest in the stock market.

Like Chit Chat with Brit said in “Bail Out, Schmail Out”, quit whining college students. Be thankful we have four years to get out of this mess. And last time I checked, Ramen noodle prices are not rising.

So boohoo, the Dow is falling, the Dow is falling. Shut-up Chicken Little, I’m busy drinking my PBR.

Dear Babs,

I worry that if my son is accepted to his “reach” school I won’t be able to afford it. Help!

-Fear of Success

Dear Fear,

When economic times are tough and jobs are scarce, investing in education matters more than ever. Don’t get me wrong; I am in as much sticker shock as you are in regard to the spiraling costs of college tuition. However, I also feel that education is one of the most valuable assets you can have, and therefore, to quote the ubiquitous MasterCard commercials, it’s priceless.

I will assume that this school is high on your son’s list because it has one of the best academic programs for his chosen career path. If this is the case, then he can expect to receive an excellent education that will prepare him well for life after college—and a job that will enable him to start paying back those students loans ASAP. On the other hand, if your son has chosen this school because it has the coolest dorms, the best sports teams, and close proximity to the beach or ski slopes, then we should instead be discussing how to make your son rethink his views on college, rather than how to pay for his admission to a four-year-long party. But Babs is an optimistic kind of gal, and she will assume that your son has the best of intentions for the next four years.

Back to our story. You are certainly not alone in your concern about affording college. Banks are in the news far too often these days, which makes the idea of taking out a loan a dismal affair. I do have faith that things will get better, but instead of waiting around for that day, you will have to do your homework. Keep a file of every financial aid brochure you pick up—and there will be lots of them, as schools know that parents are feeling the crunch and are finding more and more ways to help you pay.

Don’t wait for an acceptance letter before you start exploring financing options. You mentioned that you are a single mother. Are there benefits to single parents trying to finance their child’s education? Talk to a financial advisor and see if there are benefits for single-income families.

Fill out the FAFSA as soon as you can and mail it in right away; ditto for any other loans, like the Parent PLUS loan and your son’s student loans. When I was in college, it was a given that I could resign for my loans each year, but that’s another story these days. It might be that you will have numerous smaller loans signed—a pain in the neck, for sure, but at least you are covered. These loan sources are not proverbial money trees—when the money runs out, so does your luck for that year.

Find a good financial aid calculator online and crunch some numbers. It may be that things aren’t as bad as they seem, but on the flip side, your son’s dream school could become a financial nightmare.

Have a heart-to-heart talk with your son about his top pick. Is it love or infatuation? Does his future career include an advanced degree that will incur another tuition bill? Is his career known for a hefty paycheck? What is the demand for educated professionals in his chosen field? These are practical questions that need to be answered honestly in order to figure out if this school is going to be worth your hard-earned money—and his—in the long run.

Financially yours,

Babs

Dear Babs,

I worry that if my son is accepted to his “reach” school I won’t be able to afford it. Help!

-Fear of Success

Dear Fear,

When economic times are tough and jobs are scarce, investing in education matters more than ever . . .

Check back with CampusCompare’s financial aid blog tomorrow to get tips from Babs about financing college.