12/05/2005

Unraveling College Acronyms

AP. IB. GPA. ACT. EFC. FFEL. What's it all mean? Getting lost in this alphabet soup? Never fear. We're here.

Sort of. We were contemplating writing a guide to college acronyms until we found one that was already ready to go, and online, too. Check out USNews.com glossary to college acronyms at http://www.usnews.com/usnews/edu/college/stepbystep/glossary_brief.php

This guide goes beyond the ABCs, too. And it defines key terms for both applying to college and college financial aid. So for your own cheat sheet, hop online and check it out.

 

9/06/2005

 

College Admissions Game

Feel like you're the only one out there frustrated with the entire college application process? Do you never ever want to hear the words SAT, application fee, or college visit again?

You're not alone, and now you have a place to vent.

It all started in July when InsideHigherEd.com, a fantastic source for all things college news, published a commentary article by Deirdre Henderson called "Admissions: Worse Than Ever." In the column, she compared the college application process of her two children and wrote about how much it has changed, and not in a good way. She touched on the increased emphasis on PSATs for her younger child, AP tests and application essays an the entire "admissions game."

She sure did strike a chord. InsideHigherEd.com leaves room after each article for readers to post their comments, and a debate has raged on since the column was first posted. Check it out at http://www.insidehighered.com/views/2005/07/11/henderson

Either way you feel about the topic, at least you'll know you're not alone -- and you can write about it, too

 

 

8/29/2005

 

Freshman Year Prep Experience

Getting ready to pack up your little bundle of joy for his or her first semester of college? First, grab some tissues. Second, consider what he or she is going to take along for the trip.

It's tempting to go on a big buying spree to stock up on every day essentials like soap, shampoo, toilet paper, etc. But if your child's college is far away from home, it might be a better idea to do the shopping once in town. Not only will this save space while packing, but it's also the perfect opportunity to find out where the closest retailers are to the college and start learning how to navigate the area.

This will also allow your child to get a good look at the space (or lack there of) in the dorm and determine if maybe a small book case will fit here or if something under the bed will have to do. Check with residence life about what is not allowed in the dorm (halogen lamps and open coils are usually no-nos), and they should also be able to tell you where the closest grocery store, mall, Target and Wal-Mart are. If not, you can do a search online.

The one exception to this rule is when it comes to big things, like microwaves, refrigerators and other electronics. Your child should be sent contact information of his or her roommate over the summer to coordinate on big ticket items. Tip: don't split the cost of anything pricey unless it's a microfridge rental because, when it comes time to divvy up what belongs to who at the end of the year, things could get tricky.

 

8/15/2005

The Freshman Experience

As a parent, it might be difficult to understand what your child goes through in the first year of his or her college experience. What factors are pulling them away from class? Why can't they always connect with course material? And how late do they really stay up?

Well, now you have a window inside that freshman world through My Freshman Year: What a Professor Learned by Becoming a Student, which is being published by Cornell University Press this August. Rebekah Nathan -- not her real name -- was and still is a professor of anthropology and was frustrated with how she and her colleagues couldn't connect with their students.

So she enrolled as a freshman at an unnamed school (she wanted to protect the privacy of those students), taking classes, eating in the cafeteria, living in the dorm, and also participating in extra curricular activities. Even though Nathan is 50+, she eventually slid into that college life, and her book is a compilation of that experience, plus interviews and surveys conducted through the year.

Even though the book is from an anthropologists' point of view, it is still valuable to parents who are trying to understand that first year college experience, so check it out if you want a bird's eye -- or professor's eye -- view.

 

8/09/2005

Beware of Diplomas for Sale

You've more than likely seen them: emails screaming that a bachelor's degree, MBA or PhD can be yours with a few clicks of the button. Forget endless classes, thesis papers or costly tuition fees -- why hassle when the accreditation you've been seeking has just popped up in your inbox?

Because it's illegal, that's why. Such emails are usually put out by what law enforcement agencies like to call "diploma mills" -- groups or individuals who will give you what appears to be a degree from an accredited college or university for a fee. It can be quite a racket, too. One such diploma mill reportedly earned its president $34 million. Of course, he's now under criminal investigation, and even his "Dr." title was proved to be a fake as the highest level of education he attained was a high school diploma. Still, his presentation was slick, his website glossy, and people bought in.

The point is an old one but worth saying again: if it sounds too good to be true, it probably is. It might seem like an easy out if you're under a barrage of applications, tests, papers and exams, but the degrees won't hold up under fire.

 

 

 

8/02/2005

College Cheating 

A recent incident at the University of Virginia serves as a forceful reminder of the importance of knowing and following a school's honor code.

In June, UV officials found that an "alarmingly large fraction" of its first-year class of economics graduate students had cheated. Answer keys to problem sets in a first-year economics textbook were found online by a student who then shared those results with classmates. A large chunk of the 30-student first year class used the cheat sheets and that the investigation is pending.

This might not seem like a major crime, but it is in violation of UV's strict honor code, which leaves only one outcome for a student found guilty: "permanent dismissal from the university."

Even for schools without set honor codes, cheating is a serious offense whether it's hiding notes during a test or copying a paper off another student or the internet. The least that can happen if caught is that a student fails that assignment. The worst is what the UV students are facing: expulsion and a black mark on their academic records.

Most colleges publish their honor codes in student handbooks or at least address the issue of cheating. If not, the dean's office is a good place to start. For parents with children headed to college in the fall, a talk about the implications of cheating might be a good idea because, even if it seems so easy to just use that answer key or borrow a paper from the internet, the risks involved are not even close to being worth it.

 

 

 

7/25/2005

 

Graduate Early To Save $$$

We here at College Money are concerned with all things, well, college and money. While we tend to focus on the financing of a college education, we want to take a moment to talk about what could be an alarming trend: graduating college early.

Graduating early isn't a new concept -- get the credits, and you leave. However, it's now something that colleges are using as a financial tool. Inside Higher Ed, a college news website, reports that the cost of college is, on average, jumping 4 to 5 percent from 2005 to 2006. However, they also report that Roosevelt University in Chicago is cutting tuition. Great! We think. The cost of college is dropping at least somewhere. However, that tuition break is linked to how many courses students take, meaning that students have an incentive to take more classes and graduate sooner rather than later.

Granted, Roosevelt University serves mostly working adults, but the concept is the same at any college: cram more into a semester, and then you won't have the out-of-class fees associated with going to college (room, board, entertainment, travel) for that last semester.

However, consider what the student could be missing: that last semester of college life. For many students, especially those who go to college right out of high school, the college experience is one that takes them from being a child into an adult. If those children are busy cramming as much work as possible in their lives, they might miss out on all those college memories and learning experiences. Taking away the last semester can do that, too.

Alternatives to a hyper achieving child? Suggest that he or she use one semester for an internship or studying abroad. But graduating early is one to think about more than twice.

 

 

 

7/18/2005

 

Graduation Gifts, Part 2

Last week, we recommended gifts for the college-bound freshman. We wanted to dedicate one full College Money to books for grads since there are so many. Forget Oh the Places You'll Go. While it's a wonderful book, it's not going to give the practical advice as these picks:

The Real Freshman Handbook: A Totally Honest Guide to Life on Campus by Jennifer Hanson (Houghton Mifflin Company, $10)
The key word here is "real." A glossy picture of college this is not -- but that's a good thing. It's funny, touching, and informative without having that "voice of reason" tinge.

Sharing Spaces: Tips and Strategies on Being a Good College Roommate, Surviving a Bad One, and Dealing with Everything in Between by Heather Alexander (Kaplan, $10)
An amusing, useful and short little book about the humors, horrors and sometimes joys of living with a complete stranger.

Getting Through College Without Going Broke by Theresa Fives and Holly Popowski (Natavi Guides, $8.95)
Don't want your kid calling all the time asking for money? Throw this in his or her duffle back. This is one of a series of books called "Students Helping Students," and each volume is full of useful information from those who know -- current or recent grads.

Been There, Should've Done That: Tips for Making the Most of College by Suzette Tyler (Front Porch Press, $9.95)
Another small, short one that's packed with wit but also shows why college is more than just going to class and parties.

But college isn't a scary experience for just students, so while you're at the bookstore, take a look at these, too. We think the titles say it all.

Letting Go: A Parent's Guide to Understanding the College Years by Karen Levin Coburn and Madge Lawrence Tregger, (HarperCollins, $13.95)

You're on Your Own (but I'm here if you need me): Mentoring Your Child During the College Years by Marjorie Savage (Simon & Schuster, $13)

Don't Tell Me What to Do, Just Send Money by Helen E. Johnson and Christine Schelhas-Miller (St. Martin's Press, $16.95)

 

7/7/2005

 

Graduation Gift Ideas

As with any other momentous occasion where celebration is involved, graduation is a time to bestow gifts, in this case, upon the recent graduate.

If your son or daughter is one of this lucky group with a recent high school diploma in hand, or you know someone whose child will be embarking on the college life in August, we have four, sure-fire gift ideas:

1. Money. This, like gifts, is a given, but there are ways to make cash gifts more effective. If the graduate is your child, you can hold on to the money until they are actually at college to ensure that it will be spent on college related expenses rather than summer fun. You can also set up a "mom/dad and grad" account that your college freshman can tap whenever funds at school are running low. Or you can go with:

2. Gift cards. Check out what's around the college, especially if it's in a rural area. Target, Wal-Mart and K-Mart are popular choices for budget dorm items. If your child is musically inclined, then a gift certificate to itunes will keep him or her in the musical know. Also good ideas are gift cards for drug stores, bookstores, gas stations, supermarkets and coffee houses (where isn't there a Starbucks these days?).

3. A "basics" gift basket can be useful and personal. Include items like detergent, toilet paper, favorite shampoo, conditioner, hair gel, razors, toothpaste and cleaning supplies.

4. Along the same lines, you can make a food basket. Think non-perishable items that can be enjoyed without an oven: Easy Mac, store cookies, dried fruit, pretzels, chip packets, and regional items that aren't available at the college of choice. For a longer lasting gift, make food coupons that the graduate can use whenever the cafeteria just doesn't cut it for perishable items or when nothing but home made will do.

Want to put the college graduate into academia with knowledge in hand?
Tune in next week for perfect books-as-gifts for the college bound.

 

 

6/27/2005

 

The New SAT

It used to be the golden number: 1600. 1600 was perfect. 1600 was genius. 1600 was what every aspiring college student wanted to be.

1600 no more. This spring, the College Board rolled out its new SAT where 2400, not 1600, is now the goal. But the changes are more than in just the numbers. Some core parts of the examination have been removed, added and revolutionized too.

The biggest change -- besides the top score -- is the addition of a writing section. "This essay is similar to the type of writing required on in-class college essay exams," is the official College Board wording. Unofficial, though, is the fact that many teachers found their students came to college and couldn't write. Most blamed the fact that students could easily purchase the services of an editor to perfect their application essay, so a lack of writing ability was masked during the admissions process. Now, students are given 25 minutes to write on a given topic.

Those quirky analogy questions are gone from the test too, with more critical reading instead. The math section has been beefed up with topics from third-year college prep math, such as exponential growth, absolute value, functional notation and negative and fractional exponents.

Those at the College Board insist that the test is "different, not harder." Students may disagree -- though results aren't conclusive. Only one group of test takers has sat through the new SAT.

Two things we are sure of, though:

1. Test Prep companies already have NEW SAT GUIDES! on the bookshelves and
2. Hand cramps might be more common -- the test is now 3 hours and 45 minutes instead of the 3 hours it used to be.

 

 

6/21/2005

Caution When Visiting College Websites

 The internet can be a powerful resource when college hunting. Almost every college and university now has its own websites, and for the prospective student they serve as an interactive brochure on what colleges have to offer.

However like any piece of marketing material, we at College Money are wary of what lies beneath. These websites, like the college tour and like packets sent through traditional mail show the best and glossy sides of colleges and universities. For example: one college might list 150 student organizations on the website, but only 60 of those might be active. You'll see the 150 number on the site, but not the 60.

This doesn't mean that college or university websites are worthless. You just need to know what to look for.

Look for:

The student newspaper. Some colleges will link to this. Some won't. Either way, the website will probably at least list its name in the student activities section. If you get the name, put it and the name of the school into your favorite search engine and hit "go." The student newspaper will usually give you the most balanced view of a college in that it will express student views.

Housing. Look carefully at what is listed as freshman housing, and then call to ask about the buildings. Sure, that historic building may looking charming in the photograph online, but is it more Money Pit than Providence Mansion? Call the admissions office and ask.

Admissions. This might be under the "prospective student" area of the site. It should have information about applications, deadlines and fees.

Crime statistics. This information might be harder to find online, but schools are required to reveal crime statistics on campus. If it's not online, call and ask. They can't say no.

What to ignore: Student testimonials. Everyone has these, and they are glossed to a high buff. Move on.

Awards. It's not that we don't like awards, but just because a school is named a "Best Deal" or "Most Intriguing," doesn't mean that it should be put on top of any other school on your list. If the website doesn't list the source, be careful. If in doubt, call and ask.

News. Sure, these items may be new, but they're not the kind of news that the student newspaper usually has i.e. there won't be much that says bad things about the school here.

Like any other glossy material that comes out of a college, it's important to realize its goal: to get you to pay money to go that college, so it's your job and your child's job to find out the objective point of view. The website is a good start, but for hard facts, you just might have to dig a little deeper.

 

6/14/2005

 

 

AP Courses Revisited

The University of Pennsylvania made news recently for its proposed new curriculum that would force undergraduate students to take courses in a wider range of areas than before. While that is certainly newsworthy, what really caught our eye here at College Money was how their curriculum could affect the way Advanced Placement courses -- or AP courses -- are translated into college credits. Penn's giving them a whopping value of zero.

AP courses have long been used by high school seniors not just to keep them studying well past a normal bedtime, but as a way to jump over required college courses. If a student tested well in AP biology for example, he or she could skip over two introductory biology courses, or a perfect score on an AP English exam could leap him or her past English 101.

In an interview with Inside Higher Ed, Dennis DeTruck, dean of the college of liberal arts and sciences, said that "It gets AP back to what it literally is -- advanced placement, rather than advanced credit."

While Penn's changes don't mean a revolution in the way colleges view AP courses, it is an Ivy League school with the ability to sway opinion. Stay tuned.

 

6/07/2005

Save $$$ With Student Loan Consolidation

Big news out of the U.S. Dept of Education

They recently announced that they are making drastic changes to federal loan consolidation rules that could be a boon for hundreds of thousands of college students.

The rule changes will allow students still in college to consolidate their loans without paying those loans back right away. Rates are currently at 2.8% and are expected to jump up as much as two percentage points in July with no indication that they will ever be this low again.

If you've been reading your College Money tips, then you'll recall that we've always advised students currently in college not to consolidate while still in school because, if they did, they would have to start paying back the money now. This rule change wipes that rule out. Instead, students should request early repayment status from the lender and then ask for an in-school deferment. However, you will lose the 6-month grace period after graduation. But for a savings of nearly two percent interest, it might just be worth it.

What does this mean? If you're in college, out of college, it doesn't matter -- if you have more than one federal student loan, consolidate before July, because rates may never be this low again. Contact your loan provider for more details and how to get the ball rolling because it could save you thousands.

 

6/2/2005 

Help for Community College Grads

We've touted the value of community colleges before. They are wonderful places for students to further explore their post-high school education options if they are not sure if they want to go on to college or not. Plus, community colleges are relatively inexpensive when compared to four-year institutions.

As fans of the community college system here at College Money, we're excited to learn about a new research program that is aimed at increasing the number of community college graduates transferring not just to four year institutions but into the best four year institutions.

The Jack Kent Cooke Foundation, along with the Nellie Mae Education Foundation and the Lumina Foundation for Education, has initiated a $7 million grant project designed to increase the number of low-income students that top universities enroll. Right now, the program is just in the research and development phase, but its goal is to determine by 2006 the number of low-income community college students that selective four-year colleges and universities admit each year, how these students perform, and what successful models exist at selecting four-year schools for recruiting, admitting, retaining and graduating these students.

The study is a spurred on by schools such as Harvard, Princeton, Yale and the University of Virginia beginning to enroll qualified low-income community college graduates into their schools without forcing them to saddle themselves with student loan debt. The Jack Kent Cooke Foundation, which has been helping community college graduates move on into four year programs since 2000, wanted to take it a step further by helping elite universities around the country to actively recruit, admit, enroll and offer scholarships to the best community college graduates.

With the cost of colleges spiraling out of the reach of many, especially at these elite institutions where tuition can be over $40,000 a year, we're excited about the program and to learn the results of their study. Too bad we have to sit tight for another year -- but it's a step in the right direction.

 

 

5/24/2005

Divorce and Financial Aid, Part III

 With the face of the typical American family changing through divorce, remarriage, and sometimes divorce and remarriage again, it's important to consider the role that a step-parent's income might play in a child receiving financial aid.

Scenario: The custodial parent has remarried. Answer: Yes, the stepparent's income applies if they are married at the time that you are filling out financial aid forms. According to finaid.org, the stepparent's income must be included on the financial aid form even if they weren't married during the previous year.

Scenario: The non-custodian parent has remarried. Answer: It depends. For Federal financial aid forms, the stepparent's income does not play a role since the non-custodian parent's income does not count. For private schools, it depends on their guidelines and if the non-custodian parent's income plays a role in determining financial aid.

Scenario: The custodian parent has remarried with a pre-nuptial agreement stating that the stepparent doesn't have financial responsibility for the child. Answer: Yes, the stepparent's income applies because the federal government does not consider itself bound to the laws of pre-nuptial agreements.

Still confused? That's okay. Divorce and remarriage can be a tricky situation even without financial aid thrown in. Consult your financial aid planner or finaid.org for more information.

 

5/16/2005

Divorce and Financial Aid, Part II

 In a previous tip, we started a discussion on how divorced parents should file for financial aid, starting with who should be considered the child or children's "guardian" or "custodial parent."

Now for the next step: whose income applies?

The answer depends on who's asking. For the Federal Government, the income of the non-custodial parent does not weigh in as a factor in determining a child's financial aid. However, child support does. In the case of private colleges, it's a case-by-case basis. Some private colleges consider the non-custodial parent's income and some don't. Rest assured though, that while it may affect what kind of financial aid the private college provides, it will in no way affect your financial aid from the state or federal government, even if the private college makes the non-custodial parent fill out separate forms, as many do.

As for the legal obligation for the non-custodial parent to help pay for college, it depends on the state in which the divorce was filed. You can contact your state government or the financial aid office of your child's college of choice for more information. A partial list of states is also online at http://www.finaid.org/questions/divorce.phtml

 

05/09/2005

They come through your mail in piles. "REDUCE YOUR STUDENT LOAN DEBT!!!" they might say or "CONSOLIDATE NOW!!!" or the ever present "DON'T MISS OUT ON THIS OPPORTUNITY!!!"

Students and parents with student loans sometimes find more of these "official" notices in the mail than credit card applications. The reason? Consolidation right now is hot, and everyone wants a piece of the pie.

But what to choose? Where to go? A few ground rules:

1. If you or your child is still in college, DO NOT consolidate unless you want to start paying back the loans now. For most people still taking out loans, paying them back ASAP is probably the best option. Wait until the diploma in hand before you even think about consolidating.

2. Don't be fooled by official packaging. It may say it's "first class" or "priority." Heck, it might even look like a Fed Ex packing slip, but, like credit card applications, these are marketing techniques to get you to look at their offer first.

3. Check them out. Do they have a website? Go to it. Are they linked to a major financial institution? Ask the parent company. Still not sure? Call the Better Business Bureau.

4. Don't just throw these notices out. Shred them to protect yourself against identity fraud.

This isn't to say that everyone looking to help you consolidate a charlatan, and consolidating is a good idea if you or your child are finished with school. Rates are at an all-time low, and putting your loans into one easy payment can only make life easier. It won't stop the flood of "NOW NOW NOW" mail, but it will keep a few extra dollars in your pocket. Like always, do the research and make sure that the one you pick is the one with your best interests in mind.

 

5/03/2005

Religious Needs for College Students It's not what you think students would consider when choosing a college, but it's something that is important to many: the availability of religious services.

This appears to be a growing trend, too. According to a recent UCLA study, 80 percent of freshman going into college are interested in spirituality, 81 percent attend religious services and 69 percent pray. The same percentage consider it "essential" or "very important" that their college enhance their self understanding, and 67 percent rate highly the role they want their college to play in developing personal values.

While the study didn't offer any conclusions on whether or not a student would reject a college because of a lack of religious services, it is important that you or your child asks before making a choice. If your student's college of choice is in an urban setting, it's more than likely there will be the appropriate religious services in the area. But in a rural setting? Check with the admissions office to see if there are services in the area, and if there is transportation, especially if that campus does not allow freshmen to have cars.

You or your child could also check with the college's student activities office to see if there are any religious-affiliated student groups on campus.

 

 4/18/2005

 If you've been filling out a flurry of financial aid forms or trolling the internet and college books for scholarship opportunities, it's more than likely you're running into one question over and over again: Have you or your parents served or are currently serving in the United States Military? Good question. If you can answer yes, by all means do, because options for financial aid may improve.

For example: there are programs for members, children, and spouses of those in the Army, Air Force, Navy and Coast Guard. The Military Officers Association of America offers educational assistance programs, including interest free loans, grants and the American Patriot Scholarship. The Department of Veterans Affairs provides information on educational opportunities for Veterans and their dependents. There are also programs for survivors and their dependents. There programs might mean special loans or better rates on those loans.

Being part of the United States Military or a dependent or spouse of someone in the United States Military can also open scholarship doors. More information about these scholarships and programs can be found at www.military.com.

A warning, though: don't try to fool the military. There can be steep consequences for claiming a relation that isn't there.

 

4/11/2005

 Defaulting on your loans is not a good thing.at all. Defaulting on a student loan means that you do not make a payment on your student loans for 270 days and do not make special arrangements with your lender for deferment or forbearance. Almost three-quarters of students who default on their loans are those who have withdrawn from school. It doesn't matter whether you leave with your degree or not -- the loans still need to be paid back.

The consequences? Many. Your loans will be turned over to a collection agency; you'll be liable with the costs associated with collecting your loan, including court costs and attorney fees; you can be sued for the entire amount of your loan; your wages may be garnished (they can take as much as 10% of your take-home pay directly from your wages); your federal taxes may be intercepted; your defaulted loans will appear on your credit record, making it difficult for you to obtain an auto loan, mortgage, or even credit cards, and it can affect your ability to find a job; you won't receive any more federal aid; federal interest benefits will be denied; you may not be able to renew a professional license you hold.

And you'll still owe the full amount of the loan.

Now that we've painted the doom and gloom, here's the light. Default is not imminent, even if you run into financial trouble. You have two options: deferment or forbearance.

During deferment, the lender allows you to postpone repaying the principle of your loan for a specific period of time. Deferments are commonly granted for students who are enrolled in undergraduate or graduate school; disabled students who are participating in a rehabilitation training program; students faced with unemployment; or students who face economic hardship.

For Perkins and Subsidized Stafford Loans, you won't accrue interest during a deferment period. However, for other loan programs, such as unsubsidized Stafford Loans, that interest will accrue, but it's better than going into default.

During forbearance, the lender allows you to postpone or reduce your payments, but the interest charges continue to accrue. The federal government does not pay the interest charges on the loan during the forbearance. That's left up to you. There are also limits on time for forbearance, usually granted at 12-month intervals for up to three years.

Forbearance and deferments are not catch-all solution to default. If you go into default, these will not be available options, so if you think you might be headed for trouble, contact your lender. It's more than worth it.

 

 

4/06/2005

Divorce can be a tricky thing, on more than one level. The level that we're worried about here at College Money is just that: college money. How will a divorce change the way that forms are filled out, aid is applied for, aid is awarded or whether the non-guardian parent is required to pay?

We're going to tackle this one in a few parts, so let's start at the beginning: the Free Application for Federal Student Aid, or FAFSA. We've talked about how important this form is in the past, but we never miss an opportunity to drive that point home. You must fill out a FAFSA, even if you don't think you'll qualify for financial aid. Many schools require a FAFSA to consider a student for scholarships, whether those scholarships are need based or not.

So who's going to fill out the form? If a student's parents are separated or divorced, the custodial parent is responsible for filling out the FAFSA. What's a custodial parent? The parent the child has lived with for the past 12 months (the FAFSA application date ends that year, not December 30).

Note that the custodial parent is not necessarily the same parent as the parent who has legal custody or the parent who gets the tax deduction. If the student splits time equally between both parents, the parent who provided the student with the most financial support during that 12 month period should fill out the FAFSA (hint: this is usually the parent who claimed the child on his or her tax return).

This seems pretty cut and dried on paper, but we know how the "who more supported the child financially" argument can become a pretty messy battle. We stress here that the best thing for divorced parents to do to maximize student loans is to cooperate. It will circumvent a lot of problems before they start.

 

 

 

3/21/2005

 

Mobility. It's an important thing, especially for students who are used to having their own vehicle. That all changes though, when Jane or Johnny goes to college. The first thing to do is look at freshman rules. On many campuses, freshman are not allowed to have cars on campus. Problem solved. If a school makes this a rule, you can bet that they'll have student transportation.

If the college does allow freshman to have cars, though, consider the following:

-- If the school is in the middle of a corn field, having a car probably isn't a bad idea. But if the school is in a city, a car becomes a luxury with how expensive it is to park it. Check with your school about a parking fee or if your child will need to find a spot him or herself, which could cost hundreds of dollars a month. The good news for city-campus dwellers is that if it's expensive to park, there's usually decent public transportation to back it up. Again, check with your school about what buses and trains are in the area.

-- Live in California but going to school in Maine? Sure, you could drive there, but what about wear and tear on the car? Transporting it could be expensive, too. It might be cheaper to fly. If you're living on campus, the essentials (food and laundry) should be in walking distance. Never underestimate the power of friends, either. Just make sure you offer to pay for gas if you've found your own personal taxi cab.

Everyone's situation is different, so the best plan is to talk to the school about how much it would cost to keep a car there, what's in the area, and the quality and safety of local public transit.

 

 

3/14/2005

 

 

Let's play a game of make believe, just for a moment: John Doe, Sr. set up a great college savings plan when his John Doe, Jr. was born. He consulted a financial planner, researched options on his own and even read a book about the future of college financial planning. He signed the papers on the dotted line, put those papers in a file, and left it at that.

What's wrong with this picture? Too much to mention! While John Doe was responsible and financially savvy enough to consult a financial planner right when his first child was born, he didn't keep up with changes to the college system. In the 18 years between John Doe Jr.'s birth and John Doe Jr.'s first day of college, John Doe Sr. had three other children. That changes the savings plan radically, and that's not even taking into account the government changes that have affected tax regulations, new college planning options or college inflation.

The moral of the story? Even the best laid plans can run awry, so make sure that your college savings plan evolves with the times.

 

 

 

3/7/2005

 

Now that the applications have been sent and high school students across the country wait eagerly to see which colleges will accept them, it's time to think about another form that needs to be filled out: The Free Application for Federal Student Aid (FAFSA).

 

If you are planning on using any kind of financial aid to pay for you or your child's tuition, you MUST fill out a FAFSA. Even if you think that you won't qualify for aid, fill one out anyway since most colleges require a FAFSA before they will consider the student for school awards, financial need based or not.

 

You can pick up a FAFSA at a high school guidance counselor's office, or you can fill out the forms online at www.fafsa.ed.gov. Through this website, you can also track the status of your application and find out answers to most questions about the financial aid process.

 

FAFSA aren't just for high school students moving on to college, either. Adults returning to school, graduate students or those students going to law or medical school should also fill out FAFSAs.  Be sure to check the application deadlines for each school, they may differ.

 

 

3/1/2005

It used to be that not everyone went to college. Only the very rich and/or very smart reached those upper echelons of education. However, in the 1970s, colleges and universities started popping up all over the place, and for the most part, offering good, solid degrees.

 

What's the outcome? Now a college degree is almost a necessity in order to begin a professional career where before it was optional. Most students come out of college to find that they don't just need a BA or a BS but an advanced degree as well. But is it worth it? After all, graduate school isn't cheap, especially if you're leaving college with student loans.

 

The answer we can give noncommittal: it depends. If you want to be a doctor or a lawyer, it's a necessity. You can't practice without a degree, and the price is steep, climbing up and over $250,000. The benefit is that we'll always need doctors and lawyers, so there is some sort of job stability, even though the medical field might seem less lucrative because of the rising cost to insure doctors. However, it's a fact: doctors and lawyers must be certified.

 

What about an MBA? Again, it depends on what you want to do. Most pundits agree that it's a good idea to get a job first and go in with some experience under your belt. Not only will it increase your chances of being accepted into an MBA program, but there's also the possibility that your employer will pay part, if not all, of your tuition and fees. For some employers, an MBA matters. For others, it doesn't. It's best to get advice from those currently making decisions in the field where you want to go.

 

What about an MA? Depends on what you want to do with your degree. Want to teach art at a community college? You probably need a master’s. Want to just get a more rounded education? It's up to you, really, and the balance between your desire and need to learn and what it's going to cost. No one can answer those questions but you.

 

As for PhDs, the answer again is: it depends. The jobs for PhDs on college campuses are on the decline, especially as colleges rely more and more on part time instructors rather than full time, tenured faculty to teach their students. PhDs, especially in the humanities, might have the toughest road to climb with no guarantee that there will be a job waiting for them.

 

Again, though, no one can tell one person if it's right for him or her. It depends on each field and drive and desire in each person. Some might think their MA in Literature has helped fuel their career in another albeit related field. Some might say it's worthless. But only that person knows. The choice is up to you.

 

 

2/21/05

Every student with wanderlust or a need to succeed at least thinks about it, and thousands of American students do it every year: study abroad. Even when international relations are tense and unsure, students from around the country and around the world pack their bags and head into a foreign world looking for a different perspective.

 

But how safe is it, really? The answer lies in where you'd like to go. England? France? Spain? Even if Europeans might not be as happy with Americans as they used to be, Europe still welcomes American students (and their money, too). The Middle East? That's a whole different set of parameters. A lot of schools have stopped accepting applications and have pulled students out of war torn countries. It depends on where the school is and what the current climate is, and how volatile.

 

What about paying for study abroad? Most schools have programs built into their curriculum that will allow students to pay the same tuition to their home school but study somewhere else as a visiting student. Another option is to take a semester off from the home school and then pay tuition at the foreign school. Your school's Study Abroad Office will be key in ironing out these kinds of details. They'll know the ins and outs of overseas travel and study, especially when it comes to forms. They can also point you to students who have been through the program and who will give you practical advice like this tidbit we heard from a student who studied in Greece: sew a Canadian flag on your backpack. It'll keep the anti-American sentiment off your back, at least on the surface. Sneakers and baseball caps are dead giveaways.

 

Students will also have to pick up the tab for flights and expenses while living abroad which can really add up, so they should again turn to their study abroad office to see if they offer scholarships. If not, they might know where scholarships are available. Loans are also an option, as is, of course, saving up in advance.

 

Seems like a lot of work, right? But the vast majority of students who do study abroad or spend a semester at sea say the experience is more than worth it, if not for what they learn, but to get a better view and perspective of what it's like to be a global citizen.

 

 

 

2/14/2005

 

Last time around, we told you about what your child can expect on an overnight visit to the college. Your child might not have time to spend a night at every college on his or her list, but he or she could try to make at least one visit to each campus. But what to ask? What to look for? Make a list first and make sure you ask every question. If your child is shy, pipe up and ask. The tour isn't going to help anyone make a decision unless you have the right information.

Stumped for questions? Here are our suggestions:

2. What's the student/teacher ratio?

3. How many students graduate in four years?

4. Do most of the students stay on campus over the weekend?

5. Is housing guaranteed all four years, and, if not, is there affordable housing in the area?

6. What kinds of student activities does the college offer?

7. How safe is the school? Colleges are required by law to give you that information, so get it.

We also recommend that you pick up the student paper. They're a lot more likely to report on what's really going on at the college than the admission brochure. Also keep in mind that those giving the tours are going to give the campus its shiniest sheen. Try to dig a little deeper to get the real answers.

When all is said and done, go back to your original list and rate each selection factor for each school. Even though it will be impossible to give each school a quantitative value, it will help put them on some sort of scale. Don't be afraid to go on another visit, either. Sometimes students need second impressions to make that final decision.

 

2/7/2005

Overnight campus visits are nice. They allow students to get an idea of what campus life is like without a tour guide who will take them through well-worn, PR laden tracks; but we'll get to the campus tour a little later in our College Planning series.

There are a few things your child should keep in mind before going on the overnight campus visit. The students who host prospective students are usually hand picked by the admissions office. That's not necessarily a bad thing. There's nothing wrong with young people spending time with someone else who has done a lot of good things in his or her time at college. However, your child should realize that not every student is going to be like this and that they still are prompted to spout what the university wants them to. Encourage your child to ask questions.

That's not to say however, that everyone who hosts overnight students is going to be a perfect angel. Believe it or not, some take pride in bringing the high school kid out for a night. It's important that your child know that he or she can say no, and if they feel pressured in any way, they should report it to their admissions counselor.

Here are a few things we recommend that your child look for and ask.

What's the area like? This is very important if the school is away from home. Will your northeast kid enjoy the south? Will the transition be enough to out weight the positives about the school?

What's open at night? Some colleges have 24-hour dining options while others only offer vending machine fare.

Drinking/drug scene. Don't be afraid to ask questions, either. Even if your host is tight-lipped, an overnight stay will give you a good idea of how many students are going out and coming in late.

The area at night. While the campus might look pleasant during the day, what does the surrounding area look like at night? Schools are required to give out crime statistics to those who ask, but an overnight visit will give your child a chance to look past what's on the paper.

Daytime highlights. The overnight stay is as much about the nightlife as getting a closer look at how the campus functions. Your child should visit the student center, department where he or she wants to major, the recreation facilities, and even talk to presidents of clubs they're interested in joining.

And, probably the most important thing of all: eat in the cafeteria. While there are no colleges that serve five star meals in their cafeteria, your child might as well know what he or she is getting into! It's also a great place to survey the student body.

 

1/31/2005

Here's another great website that fell outside our radar last time we did great internet hits for college loans: http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html

It's an interactive calculator provided by Direct Loans for both recent grads and current students. It lets someone enter in every expense they have, from housing to food all the way down to entertainment. Then they also enter in their income, from work to money from parents to loans. The calculator ads up and subtracts down to show the student/grad what's left.

It's a simple conceit, really, but something that few young people have actually done. Plus, with links on the four ways to pay back your student loans right there, the recent grad can make a more educated decision as to what they can or cannot afford to start putting towards their debt. It works for the new student too, so that they see in black and white what they have. It's a good tool to use in an education on credit cards, too, because new students will be slammed with vendors on campus begging them to sign up, which can lead to dangerous debt.

Such a simple tool for some very important lessons. We give it an A+

 

1/24/2004

Maybe you have a little entrepreneur on your hands. Little John or Jane plays the stock market like their friends play board games, and they have more money in their bank accounts than you had through your 20s. Heck, they put in more hours at the office than you do. While it's wonderful that so many teens are concerned about their money, it could harm them in the financial aid game. Why? Let's take a quick look at how the formulas work. The forms will ask for two types of financial information from our student, who much did he make, and how much does he have in the bank.

Student income is assessed at 50% by the financial aid formulas. Your child's safe if they make under $2,440 a year. After that, though, they will be penalized 50 cents for every dollar they go over.

Remember that income from the year before application for financial aid is what counts. For example, a student entering college in September of 2005 will have to supply income information from 2004. The following year (2006) when the student applies for financial aid again, he will have to supply his income information from 2005. This process is repeated every year.

Asset values are counted as of the day the financial aid forms are being completed. For federal financial aid, 35 percent of the account value will be counted against financial aid. How to get around this? One way is to reduce the impact of your child's savings account by opening a joint checking account with your student -- that uses your social security number. This way, your student will have access to the funds in the joint account, but since his or social security number is not on the account, it will not be counted as his asset, it will be counted as yours. Parent assets are not nearly as damaging to financial aid as student assets.

Consider using your student's money for expenses that are not considered parental responsibility, such as a computer or a car and the car insurance. If you are uncomfortable about asking your child to pay for these things, you can always take the money you would have spent on it and put that aside in an account in your own name to be used for college.

Tricky? No. Smart? Yes, if you don't want your child's hard work to be used against them.

 

01/17/2005

We all know that college is expensive, and we expect that for the price we pay, our students will be given the best the college has to offer, including access to their school's touted professors.

This, however, is not always the case. Most colleges and universities rely on part-time faculty, also known as adjuncts, to teach introductory courses. Recent budget cuts at colleges across the country have forced many colleges and universities to rely on this part-time workforce to teach the bulk of those classes on the 100 level. The university doesn't pay adjuncts as much as full time professors, and many of those professors don't want to teach introductory course filled with students who are only there to fill a requirement. As disheartening as it sounds, it's the reality of higher education.

Adjuncts come in a few different forms:

1. Teacher's Assistants, also known as TAs. These are graduate students working on their masters or doctorate degrees who teach as part of their financial aid package. They also teach to gain experience. Their duties might range from sponsoring out-of-class study groups to teaching an entire course. While it might seem a rip off to be taught by people who haven't finished their degrees yet, consider that most if not all of the tenured faculty who teach your son or daughter were at one time TAs. So they are benefiting from this traditional way of preparing graduate students to become faculty members in their higher level courses.

2. Professors with doctorates who haven't yet found tenured faculty positions. There are a lot of very qualified students who finish with their PhD but haven't found full time jobs because of the hiring crunch that most colleges now face. A temporary solution is to teach as an adjunct, sometimes at more than one campus.

3. Working professionals. This is the most unique group, people who typically work a full time job but also teach classes in their professional specialties or who have masters degrees and teach to stay up to date in their own jobs skills. These adjuncts can offer students practical experience and advice that a faculty member who has never worked outside academia could offer.

There are ups and downs to being taught by adjuncts. The biggest negative is that they are usually not on campus as much as full time faculty, especially if they are adjuncting at more than one campus. But if they are new to the profession they might also be eager and willing to spend more time with students while an established faculty member might choose only to associate with graduate students. It depends on the adjunct.

If your son or daughter feels as if they are being shortchanged or have a serious complaint about a TA or an adjunct, they should report it to the department chair. If it's early enough in the semester, they can switch classes. If enough people complain about a particular teacher, he or she might not be invited back to teach the following year.

 

01/10/2005

Some students receive the opportunity to partake in "Work Study" as part of their financial aid package. "Work Study" is a program that sets aside on-campus jobs for those students who qualify. It's a sideways loan. It's not for the cost of tuition, rather it is money set aside for the cost of living for students to earn, money they will never need to pay back.

What can a work study job be? Well, anything. Some can be the mundane: desk attendant, library book shelver, tutor. Then there's some that might be more appealing: intramural sports referee, student newspaper reporter, radio DJ. It all depends on your campus.

Most colleges hold a job fair as part of freshman orientation so that work study students can apply for those on-campus jobs. But the good ones might be gone by then. What you can do is contact your school's financial aid office, which will point you in the right direction for starting your work-study job hunt now.

Keep in mind, too, that some of the best jobs require a bit of extra skill, just like they would in the real world. You wouldn't have someone who's never seen a basketball game working a scoreboard. But since college campuses are so broad in their interests, there's likely to be something for everyone.

One thing to remember, though: work study is a valuable thing. Not everyone gets it, and there are jobs put to the side just for you. They're also a great way to network, even if your job is answering the phones in an academic department. Use work study to its fullest advantage

 

 

01/06/2004

Before everything is stamped and sealed on your children's financial aid, they will need to go through Entrance Counseling. This is a session that outlines what the money is, what it means, how it will need to be paid back and what happens if that money is not paid back. They will need to do Entrance Counseling for each type of loan they take. While most 18 year olds won't want to pay attention and figure that their parents are going to handle all those middling details, this is an important session for them, even if it's their first interaction with their own student loans. There's nothing wrong with parents handling the money to start, but it's the student who is going to have to handle it in the end. So encourage your child to pay attention and to become familiar with his or her student loans because it is, after all, part of his or her financial future.

Some schools hold the entrance counseling as a group session in freshman orientation, but you can also do it online at http://www.dlssonline.com/exitcounseling/ecec-main.asp for Federal Aid and at http://www.mapping-your-future.org/oslc/index.cfm?act=Intro&OslcTypeID=1 for Stafford Loans. This way, you can go over it together and discuss what it all means.

They will have to go through the same kind of session when they graduate or leave school called Exit Counseling.