In an earlier post I referenced Richard Vedder, Director of the Center of College Affordability and Productivity - www.centerforcollegeaffordability.org (blogpost of Tuesday, January 31, 2012) In April 2011 he stated that nearly half of full-time students do not graduate in six years. An article, by Kelly Heyboer, published in the Sunday Star-Ledger of January 30, 2011 supports this claim and presents data about colleges and universities in the state of New Jersey. The federal Department of Education requires all schools to provide information as to how many of their freshmen graduate in either four or six years. Ms. Heyboer writes that, "A Star-Ledger analysis of the numbers shows the chances of graduating in four years are slim at many of the state's public and private schools." Public colleges and universities in NJ must post this information on their websites. The Higher Education Agency for each state should be able to provide this information for your state. www.hesaa.org Of the 27 schools featured in the article, only four had four year graduation rates better than 50% in 2008.
Colleges make the argument that the numbers are low for many reasons. Students drop out or transfer. They also say that many students change majors, thereby delaying their graduation. However, often a student needs extra time to get into all the courses required for a specific major due to overcrowding and limited offerings.
Whatever the reason, you need to know the rate at the schools in which you are interested. Unless you have the luxury of unlimited funds, this factor should certainly play a role in making your decision as to which college to attend.
Wednesday, March 21, 2012
Wednesday, March 7, 2012
Working the System
The past few posts have featured where and how to find money for college/post-secondary education. The "Weekend Investor" section of The Wall Street Journal (Saturday/Sunday, January 21-22, 2012) ran a very informative article entitled, "The College Aid Shuffle". Jessica Silver-Greenberg, with Kristen Grind, writes about ways that families who may think they're too wealthy to qualify for financial aid can "make the system work" to their advantage.
Ms. Greenberg writes that:
The single most crucial year is the one that begins
on January 1 of a student's junior year in high school.
In financial aid parlance, that's known as the
'base income year', and it's the one that counts
most in determining a family's eligibility. Any
income earned or assets acquired that year are
counted more heavily than in later years.
One of the strategies she advises is that families minimize their capital gains that year. Specifics are given as to how to reduce reported income.
Among other strategies discussed in the article, it's advised that parents don't save in a child's name as those funds are counted more heavily in financial aid formulas - 20% in contrast to 5.64% for parental assets.
In the post on January 4, I wrote about an excellent resource to help you estimate your financial aid needs and determine your Expected Family Contribution (EFC). The website is www.finaid.org/calculators/finaidestimate .
Ms. Greenberg also mentions SimpleTuition.com. This is a good site and especially helpful for loan information, providing direct application links to various banks.
If you still don't get enough financial aid, you can appeal to the school. They will reassess or review your application. I have advised parents to do this and in each case the school has adjusted the offered package in the student's favor. The families were asked to provide the school with a "running budget" which often showed how assets that looked healthy on paper were already committed to and offset by living expenses.
Ms. Greenberg writes that:
The single most crucial year is the one that begins
on January 1 of a student's junior year in high school.
In financial aid parlance, that's known as the
'base income year', and it's the one that counts
most in determining a family's eligibility. Any
income earned or assets acquired that year are
counted more heavily than in later years.
One of the strategies she advises is that families minimize their capital gains that year. Specifics are given as to how to reduce reported income.
Among other strategies discussed in the article, it's advised that parents don't save in a child's name as those funds are counted more heavily in financial aid formulas - 20% in contrast to 5.64% for parental assets.
In the post on January 4, I wrote about an excellent resource to help you estimate your financial aid needs and determine your Expected Family Contribution (EFC). The website is www.finaid.org/calculators/finaidestimate .
Ms. Greenberg also mentions SimpleTuition.com. This is a good site and especially helpful for loan information, providing direct application links to various banks.
If you still don't get enough financial aid, you can appeal to the school. They will reassess or review your application. I have advised parents to do this and in each case the school has adjusted the offered package in the student's favor. The families were asked to provide the school with a "running budget" which often showed how assets that looked healthy on paper were already committed to and offset by living expenses.
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