Initially I had planned to devote this post to a discussion of scholarship availability as the third installment of "Show Me the Money". However, I want to back up a bit and will table that topic until my next post on February 16. It may seem a little late in the game for high school seniors to re-assess their post graduation plans, but before you make a commitment that will affect your life (and credit score!) for years, I think it's worth examining your decision.
It gets real from here - acceptance letters will be received and final choices will need to be made. In Daniel Akst's review of Andrew Ferguson's Crazy U,
he writes that, "Most students (and their parents) have no clear idea why a university is the reflexive next step after high school, and yet roughly 70% of American high school graduates go on to college.". (WSJ Weekend March 5-6, 2011) Indeed, I contend that's a major reason why - "Everybody else is doing it.". Every parent of an adolescent has heard that "reasoning" from their child. In the April 2011 edition of The Costco Connection (Yes, Costco! Don't be a snob. You can find useful information in many places.), Richard Vedder who is a professor of economics at Ohio University says, "Too many persons go to college today, not too few.". Vedder is also the author of Going Broke by Degree: Why College Costs Too Much,
and director of the Center for College Affordability and Productivity - www.centerforcollegeaffordability.org. He says that by his estimates, "60% of the increase in the proportion of Americans with college degrees since 1992 has ended up doing jobs that the Bureau of Labor Statistics says do not require a college diploma". Vedder's research shows that we have about 300,000 waiters and waitresses who have college degrees as do 15 % of taxi drivers. He also states that many students should consider community college and transfer to a four year program if successful. I blogged about this in detail on January, 26, 2011 - "Two or Four Year College? - 'Pulling a Rudy'".
While we're on the topic of "why college?", there's another article worth reading. Michael Graham wrote, "College's Harsh Lesson", which was an op-ed for The Boston Herald and can be found at www.bostonherald.com (March 24, 2011). Graham contends that for many, the motivation to attend college, especially prestigious ones, is actually bragging rights. I discussed this in my post way back on September 8, 2010 - "The Scarecrow Syndrome".
High school graduation and commitment to a costly college education becomes real as you're asked to submit your deposit to the school of your choice shortly after acceptance. It's not something you should take lightly and definitely not because, "Everybody else is doing it!".
Tuesday, January 31, 2012
Wednesday, January 18, 2012
Show Me the Money! - Part II
In the last post I discussed resources where information about financial aid could be found for free. The federal website, www.college.gov, cautions against scholarship search scams and other fee based services. There are, however, reputable companies that charge for these services. Many families find reassurance in hiring someone to do the "legwork" for them. Indeed, many families pay an accountant to help them file the FAFSA.
Recently, Prudential Financial sent emails to their customers advertising a service from StudentAid.com. They offer a personalized College Cost and Planning Report for a nominal fee ($89). The report assesses the family's ability to pay for up to 10 colleges of the student's choice. Most of the information included in the report, such as estimated federal and state aid amounts, college profiles, etc., can be found for free as readers of this blog well know.
In "5 Weird Ways to Pay for College", www.smartmoney.com, 3-22-11, Jilian Mincer writes that, "...many cash-strapped states are capping grants and raising eligibility for student aid - a trend expected to continue as they shift more of the costs of college to students and their families." According to the College Board, the average cost of a private college in 2010 was $37,000 a year which included room and board. I find it an astonishing coincidence that according to Mark Whitehouse in the Wall Street Journal weekend edition of May 7-8, 2011, "average starting salaries for four year college graduates are less than $37,00." (The exact same figure!) It doesn't seem likely that in this economic climate starting salaries will surpass college costs anytime soon.
Recently, Prudential Financial sent emails to their customers advertising a service from StudentAid.com. They offer a personalized College Cost and Planning Report for a nominal fee ($89). The report assesses the family's ability to pay for up to 10 colleges of the student's choice. Most of the information included in the report, such as estimated federal and state aid amounts, college profiles, etc., can be found for free as readers of this blog well know.
In "5 Weird Ways to Pay for College", www.smartmoney.com, 3-22-11, Jilian Mincer writes that, "...many cash-strapped states are capping grants and raising eligibility for student aid - a trend expected to continue as they shift more of the costs of college to students and their families." According to the College Board, the average cost of a private college in 2010 was $37,000 a year which included room and board. I find it an astonishing coincidence that according to Mark Whitehouse in the Wall Street Journal weekend edition of May 7-8, 2011, "average starting salaries for four year college graduates are less than $37,00." (The exact same figure!) It doesn't seem likely that in this economic climate starting salaries will surpass college costs anytime soon.
Wednesday, January 4, 2012
Show Me the Money!
"If you don't know where you're going, you might end up some place else."
Lawrence Peter Berra (AKA - Yogi)
By now seniors should have some idea of what their plans are after high school. Optimally, applications should have been sent and efforts now should be focused on finding the money to fulfill your goals. You should have made alternate choices for reach and safety schools, not just academically, but also financially. The letter most anxiously awaited after the one from the admissions office is the one from the office of financial aid. We'll be discussing different sources of aid in the next few posts. FAFSA forms are currently available in high school guidance offices. All schools from whom you wish to receive aid will require this form to be filed before they will offer a financial aid package. The sooner you can send in a complete and accurate form the better, as schools award monies available as they receive requests from eligible accepted students.
There is an excellent resource to help you estimate your financial aid needs and determine your Expected Family Contribution (EFC). FinAid, the Smart Student Guide to Financial Aid, provides an explanation of the methodology colleges use to determine a student's financial aid and an EFC calculator. The website is: http://www.finaid.org/calculators/finaidestimate.phtml
On the www.college.gov site I first blogged about in 2010, there is a section titled, "How to Pay". There is also a portal to completing the FAFSA online. A simple and brief explanation of the financial aid process is provided as well. Links are available to federal and state scholarship searches. On the Federal Student Aid site there is also a "Student Aid on the Web's Financial Aid Wizard" which takes you through the process in "8 easy steps". "State Higher Education Agency Listings" on www.college.gov provides links to each state's Higher Education Agency sites. These agencies provide information on programs specific to each state. Under the "How to Pay" tab there is a "be money smart" heading. It includes tips on how to avoid fee based scholarship scams and where to find more FREE sources of financial aid assistance.
The financial aid process may seem daunting but all the information is within easy reach. With some effort and perseverance, you may be able to find the money you need so you won't "end up some place else".
Lawrence Peter Berra (AKA - Yogi)
By now seniors should have some idea of what their plans are after high school. Optimally, applications should have been sent and efforts now should be focused on finding the money to fulfill your goals. You should have made alternate choices for reach and safety schools, not just academically, but also financially. The letter most anxiously awaited after the one from the admissions office is the one from the office of financial aid. We'll be discussing different sources of aid in the next few posts. FAFSA forms are currently available in high school guidance offices. All schools from whom you wish to receive aid will require this form to be filed before they will offer a financial aid package. The sooner you can send in a complete and accurate form the better, as schools award monies available as they receive requests from eligible accepted students.
There is an excellent resource to help you estimate your financial aid needs and determine your Expected Family Contribution (EFC). FinAid, the Smart Student Guide to Financial Aid, provides an explanation of the methodology colleges use to determine a student's financial aid and an EFC calculator. The website is: http://www.finaid.org/calculators/finaidestimate.phtml
On the www.college.gov site I first blogged about in 2010, there is a section titled, "How to Pay". There is also a portal to completing the FAFSA online. A simple and brief explanation of the financial aid process is provided as well. Links are available to federal and state scholarship searches. On the Federal Student Aid site there is also a "Student Aid on the Web's Financial Aid Wizard" which takes you through the process in "8 easy steps". "State Higher Education Agency Listings" on www.college.gov provides links to each state's Higher Education Agency sites. These agencies provide information on programs specific to each state. Under the "How to Pay" tab there is a "be money smart" heading. It includes tips on how to avoid fee based scholarship scams and where to find more FREE sources of financial aid assistance.
The financial aid process may seem daunting but all the information is within easy reach. With some effort and perseverance, you may be able to find the money you need so you won't "end up some place else".
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