The Future of Financial Aid

Article by Matthew Matthew Maillet

Last year, universities increased spending on financial aid at an average of 9.3% while tuition rose by just 4.3%. However, there is a great deal of curiosity about what colleges plan to do for the coming academic year. While most universities report their financial aid budgets in February, most economists believe that tuition assistance spending will dramatically decline.

Private universities rely on their endowments to cover operating expenses. The economic recession of 2009 took a huge toll on many private university endowments. For example, Dartmouth reported a $835 million decline in the school endowment. Because of this, schools are forced to find other ways to meet their growing operating expenses. One easy way to raise capital is by cutting down on financial aid.

It is important that students take advantage of outlets that are still helping with tuition costs. For example, many federal financial aid programs such as the Perkins loan and SEOG grant will still be an excellent resource for tuition assistance. Beginning in January of next year, students will have the opportunity to utilize the Free Application for Federal Student Aid (FAFSA.) This will make it much more convenient for students to apply for federal and state aid while not costing them a dime.

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College costs too high to cover?

By Robert Katz



With the rising costs of college today some parents are beginning to worry about how they will ever be able to cover the costs of the schools that their kids get into. There are plenty of good strategies that both parents and kids can use to really help decrease on these costs. First, you can never apply for too many scholarships because the more you apply for the more you are likely to get, the application process gets easier the more you complete as well. Other ways are to take more classes each given semester than the average. Most schools will allow you to take well over the 15 credit minimum, so take some 18-21 credit semesters could help you graduate earlier. Transferring is also a very common option, where the costs of community college are very low if you do really well there you could get into better schools than if you apply right out of high shool, and save on 2 years of the costs. Going where you are wanted is also a very good thing to consider because they are the schools that will be more willing to provide attractive financial aid packages and merit scholarships. The government provides a lot of help with this too allowing students to do work study jobs that don't get taxed or provide very low interest loans that don't have to be paid back till your out of school. There are also tuition-free school options that require you to work a job and earn valuable experience while earning your way through school. The high costs of college shouldn't deter you from going where you want and especially from going at all. Take advantage of all the opportunities that are provided for you and put in the time and effort to provide yourself with a great future.

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State School vs. Private School

Post by David Held

Is there a real advantage sending your child to a private school over a state school? First of all state schools ultimately save a parent or a student a tremendous amount of money. When comparing Syracuse University to SUNY Binghamton, Syracuse costs an in-state resident of New York about $25,000 more a year. So a four year degree, with no financial aid or scholarships considered can save a family about $100,000!

When comparing state schools against private schools across the country, some of the best Universities/Colleges are state schools, to name a few: The University of Virginia, Michigan University, and UCLA. The first thing that comes to mind when thinking state school is you are not going to receive as good as an education as if you are in private school. This statement is false. An education depends solely upon professors and one’s ability to absorb materials. Professors in both state and private schools are pretty much the same because in the end they are teaching out of a textbook and their prior experiences. The better professors have previously worked in the field that they are teaching. Both state and private schools have these professors.

In the end it comes down to your preference and your finances.

Sources #1, #2, #3

The Financial Aid Game

Posted by Ahmed Al-Salem
The price of college, after growing faster than inflation for three decades, is enough to give all but the wealthiest families a run for their money. Four-year private colleges now charge an average of more than $37,000 a year, including tuition, fees and room and board, with expenses at the most elite colleges topping $50,000. That's the sticker price. A family's actual cost will vary depending on how much financial aid, need-based or merit-based, a student receives. Merit aid is a separate topic and intertwined with the question of admissions, since schools use this aid to attract the students they want most. It's always difficult to predict how much merit aid a student will be offered by any given school, yet it can be crucial to determining where a child goes. By contrast, need-based aid is generally based on set formulas determining a student's and parents' ability to pay for college out of both their income and some of their assets. These formulas may not be entirely fair or generous, but at least predictable. The formulas are used to come up with something known as your "expected family contribution." The EFC is subtracted from the college's total cost of attendance, including tuition, fees, room and board. If the family's EFC is less than the cost, the student is eligible for need-based aid.

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Colleges with the Highest Tuition 2009-2010

Posted by Ahmed Al-Salem
For the second year in a row, Sarah Lawrence College is the most expensive college in the nation for the 2009-2010 school year, while NYU edges out The George Washington University to take 2nd in the ranking.

Most of the colleges in the ranking of expensive colleges are private liberal arts schools located in the Northeast. Even while tuition at private colleges rose 4.3 percent for 2009-2010, the smallest increase in 37 years, many colleges have approached the $50,000 per year mark.

It is important to note that just because these schools have high tuition, doesn’t mean you will actually be paying that amount. Many of these colleges provide excellent financial aid packages. A lot of these schools offer scholarships that often cover most of the financial burden of attending the college. For example, MIT is tuition-free for families earning less than $75,000 a year.

For all the complaining that Syracuse students do, SU is not on the list for highest tuition or highest total cost of attendance. Forbes generated its own list based on tuition plus fees and number on one their list is George Washington University with Sarah Lawrence College a close second.

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Paying off Student Loans

By Leah Gorham

For many of us, student loans are a necessity to help pay our way through college, and we hope that after gradation and once we enter the working world, we will be able to pay these loans back. The average student is carrying a record debt load of more than $23,000, and unemployment rates for recent graduates are climbing. However, graduates do have options that could make the debt more manageable.

Before considering repayment you need to examine the type of loans you have and separate them by loan type. These include, Perkins loans, Subsidized Stafford loans, Unsubsidized Stafford loans, and Stafford loans issued before 2006. The loan types must be separated because each loan has different interest rates and accrues interest differently. Then you can pick repayment schedule. These include: standard repayment, which repays your loan over a 10-year period, extended repayment, which allows you to repay a significant balance over as much as 30 years, or income-based repayment, which allows you to pay what you can afford, based on your discretionary income.

There are some breaks to be aware of for Stafford loan borrowers to be aware of. You are entitled to a payment deferment if you go back to grad school, can't find a full-time job or experience economic hardship. You can also lower payments by stretching out the loan term. Lastly consider consolidating your loans for convenience. For low-income borrowers, the new federal program called the Income-Based Repayment (IBR) program, can help limit monthly payments by limiting monthly payments o to less than 15 percent of income.

Source 1, Source 2, Source 3

The Costs of College

By Eric Gursky
After our final class today I was tempted to write about the costs incurred by going to college. The estimated cost to attend a public four-year college in the academic year 2008-2009 is at least $16,914 for one year, while for a private four-year college the cost more than doubles, like here at Syracuse University. This figure includes tuition, room, and board. A student must also consider the cost of books and personal expenses when figuring college expenses. It is estimated that the figure is over $600 per year. This makes it easy to understand the need for financial aid among many college students.

There are three major types of financial aid. First off are grants and scholarships: This type of aid is generally provided by the federal government or private organizations. Grants and scholarships do not have to be paid back but usually require qualifications in certain areas. The second option is work-study. This is a program where a student in college may earn income and gain work experience at the same time. It is usually provided by the Federal Work Study program. The college financial aid office can assist you in finding a job. Lastly a student can obtain loans. Based on financial need, this type of aid may carry low interest rates and favorable repayment plans. However, every loan will require you to pay interest for as long as the debt exists.

When searching and applying for financial aid, remember to apply every year because you might become eligible even though you were not eligible the previous year. Make a note of all deadlines for financial aid and register early for aid is best. College is expensive, but there are free sources that can help you pay for school if you spend some time and effort looking.


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Financial Tips for College

By: Nicole Nelson

When students enter college, it is clear that financial responsibility is now going to be placed more onto the student than it ever has been before. Especially with the poor state of the economy and tuition prices on the rise, it is more important now that ever that students are making smart financing decisions. One way to help with college financing is to pick a bank with good checking accounts. It has been found that credit unions are more cost effective than large name backs because of lower fees and usually there is no minimum balance requirement. Another important choice to make is regarding savings accounts. Although in college most students will be spending more money than saving, it is important to learn the value of saving money. By finding a savings account with a larger interest rate, one will be able to see the benefits of saving money. When applying for loans, it has also been found that federal loans are smarter to take than loans from such companies as Sallie Mae. Federal loans have stable interest rates that are usually lower than loans from companies. A new type of student loan has also come about that is called a peer-to-peer loan. Think of this as a Facebook for student loans. Friends, family members, etc. can loan money to students that is contracted and collected for by the website. This only problem with this type of loan is the interest on this loan isn’t deductible like federal and commercial education loans. When financing your college career it is important to take all of these tips into consideration.

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College Tuition on the Rise

By, Meredith Anderson

The price of college tuition seems to be growing every year. In these hard economic times were our spending needs to be cut and our income might be suffering, it seems that tuition is on its own rising path. Public colleges are faced with an average increase of 6.5% this year and private institutions face a a 4.4% increase. More and more people are shifting over to public schools making the percentage of public school increase and the percentage of private to decrease. Still with the decline in the consumer price index of about 2.1% last year its an overwhelming statistic and reality that college tuition has surpassed the inflation rate.

Sandy Baum, a senior policy analyst with the College Board, recognizes this problem and contributes it to not only the rising prices of tuition but the fact that families incomes have seen no improvement. But even if the percentage of increase decreases during these times it doesn't change the fact that college tuition is still only rising. Some wonder if it will ever stop. In ten years will we be paying $75,000 for college? Where does all our money go? Some say that at these times were jobs are scarce and the focus should be on higher education. We need to teach a whole new generation how to turn this economy around. Our future rests essentially in the about 18.5 million students that attend college each year.

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Is College A Smart Investment?

By, Meredith Anderson


The expectations of attending college include gaining knowledge and experience but also to secure a brighter future. With college tuition being so expensive, students are hesitant to enroll. Statistically speaking however, people with college degrees earn much higher wages. In essence it was a secure investment.



With the way our economy has been the job market has been harder on recent college grads. The once secure investment is now a serious gamble. You could graduate college with thousands of dollars in student loans with no jobs lined up to start paying it back. A student recently filed a lawsuit for $70,000 against her alma mater because she felt as if the college took her money and didn't help her get a job. She stated that college was a waste of time and money.



Statistically speaking college level degrees will pay off. People that hold Associates Degrees hold an average of $8,000 more then simply high school graduates and people with Bachelor's Degrees earn an average of $23,3oo more then high school. Even higher degrees such as Masters and Doctorates earn even higher. The job market is hard on everyone now and this investment has never been immediate. In fact it takes years and even a life time to show its true value. The simple fact is that a college educated person still has better luck and odds during this rough time.


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Graduates face unfriendly Market

Posted By: Pete Hill

College is not only a time when a student first becomes independent in their living situation and experiences a major change in their life; it is also a time when students can be put under a lot of stress with trying to find jobs.

With unemployment rising and employers lowering their hiring expectations, soon to be graduates are facing the worst job market in years.
Projected hiring for the class of 2009 is only a little bit higher than 2008 levels, according to the National Association of Colleges and Employers. In October, employers said they planned to hire just 1.3% more graduates in 2009 than they hired this year

Since many graduates will have a difficult time finding a job, if at all possible, there are options that will help them be able to manage their outstanding loans. The options are pay a percentage, stretch out the loans, or cut the rates.

With millions of experienced workers seeking employment, competition is intense even at the entry level. Many college graduates are struggling with hefty debt and high monthly payments. These limit their professional options, and taking an internship simply is just not adequate to remove any loans.

Sources:
http://money.cnn.com/2009/06/18/pf/college/student_loans.moneymag/index.htm
http://money.cnn.com/2008/10/30/news/student_job_outlook/index.htm

http://money.cnn.com/2009/04/14/news/economy/class_of_2009.fortune/index.htm

Saving in College

By Laura Reginelli

Going to college can be an expensive endeavor. Not only can rising tuition costs be a heavy financial burden, but also the extra day to day costs of college can make quite a stamp on your savings. There are several ways to go about increasing funds for college and making sure that you have enough money to easily get by on a day to day basis.

One way to save properly for college is to look into student banking accounts. Generally there are both student checking and student savings accounts which can help students effectively save their hard earned cash. These bank accounts are usually easily accessible but you should check out all the available options before making a decision.

Another thing that come in handy when paying for college is those old savings bonds that your family used to give you before you were old enough to understand the concept of money. Since interest rates are likely to rise in the near future it may be smart to cash in your savings bonds and use the money for your education.

One last final tip for financially surviving college is to create a budget and stick closely to it. Make sure to allot money for any going out expenses and such along with food and extracurricular events. College can be expensive so it is smart to start budgeting early in the game.

Sources: http://www.studentfinancedomain.com/money_management.aspx

http://www.bankrate.com/finance/college-finance/granny-s-gift-a-savings-bond-at-christmas.aspx

http://www.collegeview.com/articles/CV/campuslife/student-finances.html

College Students Increase Loans

Posted By: Pete Hill

In today’s world, in which most secure jobs require a upper level education, many people are taking out loans to be able to attend college.

Every year, millions of students and families must fill out the Fafsa form to apply for Pell grants, Stafford loans, Perkins loans, work-study programs and much state aid. But many are scared off by the form. Federal authorities estimate that 1.5 million students eligible for Pell grants did not apply.

And because the form is so complicated, a growing industry of paid consultants has sprung up to help families complete it. As a result, the form is being revised to remove questions and ease the process.

Borrowing has increased at many colleges and universities all over the country, but borrowing did not increase much for those earning bachelor’s degrees in public or private colleges, like Syracuse. At private four-year colleges, the median loan debt for bachelor’s degree recipients was $22,375 in 2007, an increase of five percent from $21,238 four years earlier.
The federal Department of Education says that almost all its loan forgiveness programs are safe. With this said it will allow students to feel more comfortable about taking out loans and not having to pay back a much higher amount later in life.
Sources:
http://www.nytimes.com/2009/06/24/education/24fafsa.html
http://www.nytimes.com/2009/08/12/education/12college.html
http://www.nytimes.com/2009/05/30/your-money/student-loans/30money.html

The Economic Rebound will Raise Tuition Costs

Article by Matthew Maillet

The economic turmoil of 2009 left many private colleges increasing school grants and scholarships to the prospective 2013 applicants. This was the response of many universities in an effort to keep students interested in paying the average $35,000 tuition cost of college, despite the grim economic conditions. However, since many indicators tell us that the US economy is finally rebounding, colleges across the country are cutting down on scholarship funding for prospective students.

Colleges are assuming that families will be more willing to shell out higher tuition costs than previously estimated. Aside from private colleges, public universities too are faced with higher tuition costs because tuition expenses go directly back to the state. States facing economic turmoil in recent years are looking for any way possible to generate money—an easy way of doing this is by bringing in more profit from state schools.

Since tuition costs largely cover the operating expenses for universities, schools rely heavily on high tuition costs and low scholarship funding to pay the bills. Since so many grants were offered to last year’s applicants, schools are raising tuition to make up for all of the scholarship funding lost in recent months. The incoming 2013 classes will also feel the pressure while tuition prices will most likely rise dramatically in their four years of enrollment.

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Cut Down on Textbook Costs

Article by Matthew Maillet

Aside from the growing cost of tuition, there are many ways that you can save money on many of the associated costs that come with a college education. One of the biggest costs that a student faces each and every semester is the rising costs of textbooks. Professors are making it more and more difficult for students to save money on textbooks by requiring the newest editions. However, make sure to utilize online resources the next time you purchase a textbook.

Books cost an average of $998 per year for a college student. This shockingly high expense can be cut down if you take the right measures. For example, hundreds of websites offer used textbooks such as Half.com or campusbookswap.com. There is no longer any excuse for a student to pay full price for a text book. You can also utilize a store’s return policy by preparing for a dropped class. Buying a textbook mid-semester with a 30 day return policy will allow you to get a refund if you chose to withdraw from the class.

Utilize these same resources when selling your own books. Try to keep the wear and tear down as much as possible, because used textbook dealers pay top dollar for books in good condition. Getting the most out of your used textbooks helps put more money back in your pocket.

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College Tuition Costs Continue to Rise

Posted by: Janielle Viggiano

According to BusinessWeek, “This year's College Board report shows average increases of 6.5% for public in-state tuition and 4.4% for private colleges. The consumer price index declined 2.1% between July 2008 and 2009, meaning that inflation-adjusted increases in prices this year are significantly larger than current dollar increases, the College Board says. The spiraling cost of higher education comes at a time when institutions are reeling from the aftershocks of shrinking state aid, battered endowments, and significant budgetary pressures. Schools managed to temper some of these increases by doling out more institutional aid and grants to students, a move that made the sticker price less painful for the 18.5 million students projected to attend college this year (2009).”

College prices rose again in the fall of 2009. The increases in price were due to painful cost cutting by colleges in everything from faculty to sports travel and cafeteria. Some surprising findings on the increase in college tuition include:

• Increases in spending were driven mostly by higher administration, maintenance, and student services costs. Public universities spent almost $4,000 per student per year on administration, support, and maintenance in 2006, up more than 13 percent, in real terms over 1995. And they spent another $1,200 a year on services such as counseling, which was up 23 percent. Meanwhile, they spent about $8,700 a year on classroom instruction for each student, up about 9 percent.

• Big private universities, powered by tuition and endowment increases, have increased spending dramatically while public schools have languished. Total educational spending per student at private research universities has jumped by almost 10 percent since 2002 to more than $33,000. During that same period, public university total spending was comparatively flat and totaled less than $14,000 a year.
• That growing gap between rich schools and poor schools worries observers like Wellman. The cost of attending a public university, even after subtracting out aid and inflation, rose more than 15 percent in the last five years, according to the College Board. But almost all of the recent price increases at public universities are "backfilling for cuts in state funds," Wellman says. (US News, Clark, 2009)

Sources: http://www.huffingtonpost.com/2009/10/20/college-tuition-costs-ris_n_327398.html

http://www.usnews.com/articles/education/2009/01/15/the-surprising-causes-of-those-college-tuition-hikes.html

http://www.businessweek.com/bschools/content/oct2009/bs20091020_667493.html

Paying for College

Posted by: Janielle Viggiano

When the economy started to fall, colleges started to panic thinking that they wouldn’t find any students that would be willing to pay their tuitions. So most colleges dramatically increased the amount of grants and scholarships they offered to their students accepted for the class of 2013. Now college aid officers are planning on cutting back on the amount of offers they give out because they feel more families can afford more now than they had estimated last year.

Many families and/or students have to take out loans to pay for their educations. Student loans are classified as “good” debt because it can be a smart investment in your future. On the other hand sometime debt can get out of control and by the time you graduate you’re stuck with hundreds of dollars a month of bills that will last 30 years.

In 2007 The College Cost Reduction and Access Act was signed into law which created the new Income-Based Repayment Program to help make student loans more manageable. According to CNN, “The Income-Based Repayment program is designed specifically for those students who have high loan amounts and low income. To continue to qualify for the repayment plan, every year borrowers will have to provide information on their income and family size. When income increases, the payments will revert back to the standard amounts (2009).”

Sources: http://www.usnews.com/articles/education/paying-for-college/2009/12/01/why-the-rebound-in-the-economy-is-bad-for-scholarship-applicants.html

http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/HowMuchCollegeDebtIsTooMuch.aspx

http://www.cnn.com/2009/US/06/24/college.loans/index.html

Harvard University Suspends Free Tuition Program

Posted by: Christina Dove

Two years ago, Harvard University annoouced that they would be offering full tuition to third year law students who agreed to work a non profit organization or the government for 5 years after graduating. However, the university recently annnounced that they would have to cut this program. This is devastating news to the low income students who were depending on these funds.

The main reason for the decision is that twice as many students than expected signed up for the offer. Many Harvard Law graduates go on to corporate Wall Street and make millions of dollars. So the university did not anticipate so many students being interested in the free tuition program.

“This was always an experiment and just one of many ways we were trying to encourage students to explore public interest careers,” said Martha Minow, the dean of the law school, adding, “What we found is that we had less trouble than we thought encouraging that.” In addition to the influx of interested law students, the recession was also a determining factor in the cancellation of the free tuition. The university has received 27% less in endowments and this made it difficult to fund such a generous program.



Sources:

http://www.nytimes.com/2009/12/03/education/03harvard.html?_r=1&em

http://www.google.com/hostednews/ap/article/ALeqM5g4jW0HJ_2gBUR2XXLIhNqD0WCcCwD9CBECFO1
http://www.good.is/post/No-More-Free-Tuition-At-Harvard-Law

Paying for Law School during the Recession

Posted by: Christina Dove

During the recession it has become increasingly difficult for many college students to afford the costs of college and higher education. In particular law school prices have skyrocketed and many students are struggling to finance the costs and pay back student loans. Many qualified and aspiring lawyers are at a crossroads in continuting their education in law or finding another job that will not require as much financing and repayment in the future.

Some of the financing options include seeking any scholarships that you think you may qualify for. The worst that can happen is that you do not get it and the best case scenario would be that you do get a substantial amount of money to cover the costs. In addtion, some schools offer private loan options that may cost less that a traditional bank loan and be much easier to qualify for. Another option is to be a TA for an undergraduate class that you have already taken or a TA for a first year law class during your second or third year of law school.

Despite the rising costs and less available financing, there are many students still applying to law school suprisingly. The number of law school applications have risen by 4.3% in the last year. However the number of graduating law students getting jobs has not increased at the same rate. Many aspiring lawyers are looking for the high paying jobs upon completing such a rigorous program and they are just not out there in this struggling economy.


Sources:

http://www.howtodothings.com/education/a4441-how-to-pay-for-law-school.html

http://www.salliemae.com/get_student_loan/find_student_loan/grad/law_school_loans/

http://www.citytowninfo.com/career-and-education-news/articles/recession-hammering-law-firms-but-not-law-schools-09072902

Hiring Is Rising in One Area: Low-Paid Interns

By Lingxiao Li



The new variation, now called an internship, is not the painstaking, multiyear experience it once was, but it still offers the same advantages: a chance for a worker to gain knowledge at little or no cost to the employer. In boom times, companies with too much work for existing employees — yet not enough work to justify another hire — may have turned to temporary workers. But with the economy still in the doldrums, companies again are opting for unpaid or low-paid internships to get the extra work done. And internships are no longer just the province of college students. More unemployed professionals are seeking them — whether to test-drive a new career or simply to keep themselves occupied, according to internship placement services. Mr. Rodems, of Fast Track Internships, said 10 percent of his clients were college graduates changing professions, compared with just 1 percent in 2008.
For employers, setting up an internship program is relatively easy and inexpensive. Veterans of the hiring process say business owners interested in offering internships should develop relationships with local college professors who can choose good intern candidates and seek legal advice to ensure that federal and state labor laws are followed. Business owners should have a clear idea of what they want from an intern and then interview candidates in the same way they do potential regular employees.

http://www.nytimes.com/2009/11/28/your-money/28interns.html?pagewanted=2&em
http://community.nytimes.com/comments/www.nytimes.com/2009/11/28/your-money/28interns.html
http://www.nytimes.com/gst/mostpopular.html

Positive changes coming for college loans

Posted By: Scott Graulich

If you've been to college, it's likely that you have them. Nobody likes them. They're confusing. They're annoying. They're a little scary. And they'll follow you until death (yes, even when you file for bankruptcy). If you haven't already guessed, they're student loans and they're on the docket for reform.

Two types of federal government guaranteed loans are available to help finance educational expenses: Federal Stafford Loans are provided directly to students and PLUS loans do the same for parents of current students. Currently, two federal programs offer these loans. In the Federal Family Education Loan (FFEL) program, banks provide the loans to students with the loans guaranteed by the federal government, which allows the loans to be offered at low interest rates. In contrast, funds for the Ford Federal Direct Loan (Direct Loan) program come directly from the federal government. Since the passage of the Omnibus Budget Reconciliation Act of 1993, which created the Direct Loan program, higher education institutions have been able to decide whether to provide student loans through private lenders (FFEL), directly from the federal government (Direct Loan) or from both sources.

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Five Best Financial Choices For College Students

Posted by: Scott Graulich

When it comes to financial matters like selecting a bank, college students tend to be copycats and follow their parents' lead. That can be a mistake, given that the financial institutions with the best deals for well-endowed people may not offer the smartest choices for students who are just starting out. With that in mind, we've picked the best options for college students in five broad areas: checking accounts, savings accounts, credit cards, student loans and investment accounts. By best, we mean products that charge the lowest fees and require the smallest minimum balances.

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Students Relying on Loans Wonder Whether Forgiveness Will Last

By Lingxiao Li


The good news here is that the federal Department of Education says that almost all its loan forgiveness programs are safe. “It doesn’t depend on some future Congress for us to come through on most of these,” said Robert Shireman, deputy undersecretary of education. “The majority of them get appropriations for the life of the programs.”
But many states say that financing their loan forgiveness programs depends on state budgets. Given declining tax revenues, that doesn’t inspire much confidence. On Thursday, for instance, Gov. M. Jodi Rell of Connecticut proposed cutting the state’s minority teacher grant program, which awards a stipend that is intended to help students pay off their loans, said Constance Fraser, a Connecticut Department of Higher Education spokeswoman.
The states’ changes — or the mere threat of them — are the latest of several ugly financial developments that have shaken individuals of all ages who thought they were playing by the rules. There are the investors close to retirement who thought they were being conservative only to watch their savings decline 25 percent before bouncing back a bit recently. And then there are homeowners in Miami and Las Vegas with plain mortgages who have found the value of their properties plummeting because of the bad behavior of many banks and their customers.
As for the loan forgiveness programs, they have been around since at least the late 1960s, according to Mark Kantrowitz, publisher of the financial aid site finaid.org. States sponsored them first, to keep residents from moving or to encourage graduates to enter careers where there was a shortage of professionals in particular locations or in certain lower-paying fields. Now, the federal government is involved, too.
So loan forgiveness programs are not some sinister form of social engineering. Nor do they encourage overindebtedness, per se. Education costs what it costs, and if you need to borrow to attend and intend to eat while doing so, then borrow you must. In fact, borrowing to prepare for a career in nursing or law enforcement makes perfect sense if governmental entities are promoting loan forgiveness programs.


http://www.nytimes.com/2009/05/30/your-money/student-loans/30money.html?pagewanted=2
http://www.nytimes.com/pages/your-money/index.html
http://www.nytimes.com/2009/05/27/your-money/student-loans/27forgive.html?scp=3&sq=glater%20and%20kentucky&st=cse

Colleges Struggle to Preserve Financial Aid

by Geraldine Fabrikant
posted by Lily Mei

For years, as the stock market roared, educational endowments swelled, helping private secondary schools and colleges provide more financial aid, expand and attract better faculty. But with the financial markets in crisis, those days are over.

Today educational institutions are cutting spending, delaying projects and holding off on hiring. While many schools and colleges say their commitment to helping families pay the costs of education will not waver, some experts maintain that as investments shrink and donations fall, some institutions will be forced to cut back on financial aid.

Morton Schapiro, president of Williams College in Massachusetts, which has long had a commitment to accepting students without considering their financial situation, said he doubted that all colleges with such full need-blind policies would be able to hold to them.

"The major dial you turn for most financial crises is that you admit more students who can pay, as a way of increasing revenues," Mr. Schapiro said. "With the tremendous decline in wealth, I think fewer people will hold on to needs blind."

Molly Corbett Broad, president of the American Council of Education, a group of 1,800 public and private colleges, said the problems would be worse where endowments are smaller and enrollments larger, like at some public universities. "The farther down the food chain you go in terms of endowment per student," she said, "the harder it will be to sustain need-blind admissions."

One of the few college presidents speaking publicly about making some adjustment is Douglas Bennett of Earlham College in Indiana. About 18 percent of its students are from families with less than $60,000 in income and receive financial aid.

"If you are truly need-blind, you can go broke," Mr. Bennett said bluntly during a telephone interview. "It is like writing a blank check to the world."

The relative share of financial aid that is picked up by the government is declining as well, he added. As the burden is shifted to families and institutions, Earlham is trying to figure out what to do. The college is particularly concerned about students that it accepts and enrolls but whose financial needs it may not be able to meet.

Mr. Bennett said Earlham, which had a $350 million endowment at the end of June, was considering limiting its need-blind admissions policy to three-quarters of the class. The college would then know how much it had committed in financial aid and would be able to take that into account in admitting the remaining 25 percent.

Endowment management at most colleges involves a "smoothing strategy" that tries to blend spending over good years and bad in the hope of avoiding abrupt layoffs or other cuts if the endowment falls precipitously.

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Common College Expenses

Posted by Lindsey Connell

An important thought for many high school graduates is how much money they will need for their first year at college. Although this amount varies from person to person, the expenses are generally the same. Some major expenses to consider are who will pay for gas if the child has a car or who will pay for their phone bill. It is also to be expected that expenses will be more at the beginning of the school year and at the beginning of the college experience. Other costs are book fee which can be extremely expensive as well as parking passes. Besides this, students may need money for gifts for friends, for tolls or other expenses during traveling, and new clothes or essential hygienic products. Food is another major expense because not only do students go out to eat every now and then, they also have to pay for meal plans or pay for buying their own food from the grocery store. Although most students don’t turn 21 until their junior or senior year, many college students of all ages spend a significant amount of money going to parties or the bars. Although small purchases such as buying an outfit or movie ticket here or there eventually add up and can create financial issues if not budgeted for correctly.

http://www.encyclopedia.com/doc/1G1-200558578.html
http://college.lovetoknow.com/Amount_of_Spending_Money_a_College_Student_Needs
http://www.collegeanswerguy.com/index.phpoption=com_content&view=article&id=134:spending-money&catid=35:money&Itemid=45

Tips For Paying For College

Posted by: Janielle Viggiano

Paying for college could potentially not only put your parents in debt but also yourself if you’re the one bearing the loans. The first thing you need to do is to start planning early! Begin organizing and planning college visits either before or by your junior year of high school, you should have a general idea of the schools you will be applying to. After narrowing down your choices you need to figure out how much it will cost you. Use the calculator from Sallie Mae to estimate your cost. Start saving small amounts over a long period of time early on.

There are also other options to think about when paying for college. The first being: accelerate your degree. Accelerated classes can cram a semesters worth of classes into a six to eight week class, which can help you to move up your graduation date. Second, be a transfer student. In many cases the credits taken at a less expensive school can be transferred and applied to a more elite and expensive school. Third, go where you’re wanted. There’s always a school out there that is dying to have you as a student. Fourth, choose a tuition free school. Tuition free schools only require that you work 10 – 15 hours a week on campus and in jobs related to their majors. Fifth, get a sponsor. Federal loans are the best way to borrow money for school. Sixth, lock in tuition. Some colleges offer a locked in tuition, so that you will pay the same rate for all four years. Seventh, work off debt with community service. According to Bankrate, “Recent college grads can cancel part or all of their federal-education debt by working in public-service jobs -- lower-paying professional jobs that serve low-income communities -- or by volunteering (2009).”

There are also four rules of paying for college in a recession which include:

1. Grades matter more than ever- According to US News, “The better the student, the more college options the student will have and the more likely it is the student will receive scholarships or win admission to a low-cost school (2009).”
2. Early birds will get more scholarship worms
3. Students should apply to at least a couple affordable schools
4. Students should apply to at least a couple generous schools- Some of the most expensive schools by sticker price also give out huge scholarships and can actually be cheaper, in the long run, than public schools for many students.

Sources:http://www.washingtonpost.com/wp-srv/business/longterm/mym/college/college.htm

http://www.bankrate.com/brm/news/cheap/20030528a1.asp

http://www.usnews.com/blogs/college-cash-101/2008/12/15/the-4-rules-of-paying-for-college-in-a-recession.html

Graduate Degrees With the Best Futures

By Lingxiao


In a tough job market, it makes sense to look for ways to set yourself apart from the competition. This year, 26 percent of graduating seniors headed for a graduate or professional degree, up from 24 percent last year, according to the National Association of Colleges and Employers, a professional association. Add to those ranks people who are working but want to go back to school -- or who are simply not working and are applying to school as a back up -- and enrollment swells even more.
In this blog, I will be sharing some great information for Business related industry job seekers. Employment of executives expected to show little or no change between 2006 and 2016; employment of management analysts expected to grow more than 21 percent between 2006 and 2016. Statistically, graduates of MBA programs do earn more than those without the degree, Haefner says. But that observation "doesn't necessarily mean you're going to get, dollar for dollar, in your salary what you paid in tuition," she says. Prospective students interested in an MBA should keep in mind that career opportunities, particularly in finance, are changing rapidly, making it all the more important to do careful research, including informational interviews, Sims says. "An MBA might not have the same meaning in three to five years that it had in the past 10," she says. Over the last few years, workers with MBAs have found opportunity in a greater variety of fields than they typically did in the past, says Haefner. And among the class of 2009, more students in MBA programs had found jobs before graduation than in other programs, according to research from the National Association of Colleges and Employers.

http://finance.yahoo.com/college-education/article/108203/graduate-degrees-with-the-best-futures?mod=edu-collegeprep
http://finance.yahoo.com/college-education/article/107863/mba-pay-riches-for-some-not-all?mod=edu-continuing_education

Tuition Costs Increase Despite Sour Economy

Posted By Christopher Johanning


The College Board’s latest study on college tuition shows that the price for college has risen by 6.5% — right in the teeth of the recession. But all is not lost. For students and families, there are some more pleasant figures in the study, too.
BankingMyWay will open this — the week before Thanksgiving break for collegians — with a look at college prices going into 2010.
The Big Kahuna of college cost barometers is the College Board’s annual tuition report. This year, the study says that the average price for four-year public colleges climbed $29 on a year-to-year basis to $7,020. Tuitions at private four-year colleges rose 4.4% for 2008-2009 bringing the average yearly cost to $26,273, the College Board says

to read more....

10 Secrets to Raising More Than $15,000 for College

Posted by Nick Porcell

Grandparents are pitching in. Students are working more, and eating less. Parents are taking out more and bigger federal loans.

As the economy has declined and college costs have risen, families have buckled down and become more resourceful to pay for college.

They have been so successful at funding tuition that college enrollment is up dramatically. A record 40 percent (or 11.5 million) of 18- to 24-year-olds are taking at least one college course this year. Add in all the adults returning to school because of the lousy job market, and the total number of college students is likely to exceed 19 million this year.

How are more students affording tuition even though many colleges' prices are at record highs and many scholarship programs, private lenders, and family savings accounts have been wiped out?

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Paying for College 101

By Jorden Meltz

The past year and a half has affected the finances of everyone and the impact it had on colleges was no different. Creditors have begun to downgrade some Universities debt and now nearly one in every three private universities in planning for a decrease in tuition for the next year. This comes after the Student Aid and Financial Responsibility Act was passed in September, which will now eliminate college and universities need to rely on private sources for student loans and instead the loans will now come directly from the government. In response, Bank of America has suspended its federally-backed student loan program, as the U.S. prepares to phase out the Federal Family Education Loan Program. The new act will help to further ensure that families in need of loans to pay for college will have access to them through this federally backed program. The act comes as no surprise as the past year has seen both a decline in private sources making themselves available to give loans and a heavier reliance upon federal loans. Although students will not receive better interest rates on the loan, the act helps to make sure their is a larger pool of money to make loans with and that a greater number of people will have assistance in paying for their education if they need it.

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College loans could contribute to tuition hikes

By Jeremy Davis

Posted by Leah Gorham

It’s safe to say the hardest part to stomach about college is the tuition fees.

In order to combat the rising tuition rates, students engage in a staple ritual of college life: obtaining student loans.

Without them, most of us wouldn’t be able pursue a college career or afford the outrageous tuition. But most of us never thought one major culprit contributing to rising college costs may actually be the loans themselves, government-guaranteed student loans in particular.

College tuition increases all the time, and as we know, UC is no different, with a possible increase in tuition for the 2010-11 school year.

As it stands now, yearly tuition rates at UC for the 2009-10 academic years are currently $9,399 for in-state undergraduates and $12,723 for in-state graduates. Only a decade ago, yearly tuition rates were $4,998 for in-state undergraduates and about $5,880 for in-state graduates for the 1999-2000 academic year. Tuition has nearly doubled in 10 years; that’s a painful and significant difference.

So the more tuition goes up, the more loans students take out, which in turn will contribute to future increases, keeping the cycle going.

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College Tuition: Going for Broke

Posted by Jorden Meltz

Cash-strapped families were dealt another blow this fall as tuition at public and private colleges for the 2009-10 academic year continued to outpace inflation, the College Board said in a report released on Oct. 20.

This year's College Board report shows average increases of 6.5% for public in-state tuition and 4.4% for private colleges. The consumer price index declined 2.1% between July 2008 and 2009, meaning that inflation-adjusted increases in prices this year are significantly larger than current dollar increases, the College Board says. At the same time, family net income has barely budged over the past decade, says Sandy Baum, a senior policy analyst with the College Board.

The spiraling cost of higher education comes at a time when institutions are reeling from the aftershocks of shrinking state aid, battered endowments, and significant budgetary pressures. Schools managed to temper some of these increases by doling out more institutional aid and grants to students, a move that made the sticker price less painful for the 18.5 million students projected to attend college this year. Last year, about two-thirds of full-time undergraduates received grants, with students receiving on average $5,041 in grant aid, up from $4,656 the year before, the report says.

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Covering college-tuition loans -- somebody give me some credit!

Posted by Nick Porcell

With two daughters in college, tuition loan repayments were stacking up, and my wife and I felt the weight of multiple monthly payments kicking in. We began to realize what a job it was to keep track of all the loans, and figured there had to be a better way.

Remembering we'd gotten good advice from the credit union on retirement accounts and mortgage refinancing, and eager to avoid any lender that smelled like last year's banking industry meltdown, we called our adviser to set up a new strategy for squeezing tuition payments into the family budget.


The good news came quickly. "Call the loan office in the morning," our adviser said. He agreed that using the equity we'd built up in our home to pay tuition bills would liberate us from the structured federal loan programs. If things went as expected, it would allow us to repay on our own terms, at 3.99 percent (I know!), and 'defer' if we needed to, by making only minimum payments in tight months.

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The Price of Education

By Jorden Meltz

At a time when figuring out how to more efficiently save money and follow a budget have become a priority for a majority of the country, the one thing that has become more difficult to plan for is college. This past year tuition and fees at public universities increased by 6.5% and at private universities increased by 4.4%. This comes at a time when many families have seen their college savings decrease in value and a continued growth of number of students applying to college. According to the College Board at least fifty-eight private colleges and universities charge at least $50,000 a year for tuition, room and board, and fees. Although the 2% decrease in the consumer price index has brought relief to many, for those in the college planning stages these growth rates will be very difficult to account for. With Healthcare reform at the forefront of many political discussion and legislation, it seems that discussion about how to make college more affordable if these tuition rates continue cannot be too far away.

College President Salaries Continued to Climb

Some salaries increased by 15 percent before the economic crunch hit
By Kim Clark

In the year before the economy collapsed, the paychecks of private college presidents continued to climb, according to a new analysis by the Chronicle of Higher Education. The typical president of a private college got a raise of more than $26,000, or 6.5 percent, to bring the total pay package up to $358,746. Pay was higher and rose even faster at major private research universities: The median pay of $627,750 at those institutions represented a one-year jump of 15.5 percent. In addition, the Chronicle found that 85 of the 419 private colleges surveyed were paying at least one former employee more than $200,000.

Chronicle researchers noted that the numbers were for the fiscal year ending June 30, 2008—the most recent data available—and the salary inflation might have been reined in since the recession began. For example, many university presidents have accepted pay cuts or reduced bonuses in the past year.

News of the rising costs of administrators comes as colleges continue to raise their tuition faster than inflation. The College Board reported last month that the average private university has raised tuition by almost $4,000 since 2006 to $26,273, 10 percentage points faster than inflation.

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Higher higher ed

Posted by Jorden Meltz

CONSUMER PRICES fell 2.1 percent between July 2008 and July 2009, but college tuition kept going up. Students entering public four-year institutions this fall confront published tuition rates more than 6 percent higher than they were a year ago. Private colleges and universities ticked up 4.4 percent. To be sure, these figures apply to the "sticker price" of college only: grants and loans (many of them subsidized) cover much of the tab. But the contrast between the country's belt-tightening and higher ed's price hikes is striking nonetheless.

The recession itself is a major cause. The downturn forced state governments to slash support for the public systems that more than 70 percent of undergraduates attend; it also shrank the endowments of private institutions. Congress and the Obama administration supplied aid to the states in the stimulus bill, plus $30.8 billion in extra tax credits and Pell grants for students. But this only partially mitigated the impact.

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New law to help in paying back college loans

By Sally Holland
Posted by Leah Gorham

WASHINGTON (CNN) -- As a graduate from Syracuse University with a master's degree in international relations, Jana Morgan was hoping to help victims of human rights violations caused by resource wars.

The tight job market, though, has made her put those dreams aside for now while she pays her bills -- by waiting tables at The Barrack's Inn in Sackets Harbor, New York.

Morgan is realistic about her future income options. "If you are going into public service, you aren't going there to make money, you are going there to help people," she said in a recent interview.

Her less-than-anticipated income means that it is difficult for her to make her student loan payments for the nearly $80,000 in debt she accumulated getting through college. Morgan is looking at a new law that goes into effect July 1 that would help her cap her student loans at 15 percent of her adjusted gross income.

Then, if she completes 10 years of public service, her loans would be dropped completely. Based on her current income, her $800 payments would go away for the time being, according to calculations she did on the Department of Education's Web site.

The College Cost Reduction and Access Act that created the new Income-Based Repayment program was signed into law in 2007 to help make student loan payments more manageable.

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Banks, credit unions offer help saving for college

Posted by Jorden Meltz

As the volatile market batters college nest eggs, a growing number of financial institutions are rolling out incentives to help families save or pay for higher education.

Citizens Bank is giving a $1,000 bonus to consumers who open a college savings account by a child's sixth birthday. Justice Federal Credit Union — which serves Department of Justice and Homeland Security employees — is offering a discount on a loan to pay for college costs. And Grow Financial Federal Credit Union in Tampa is donating money to student scholarships based on a local university football team's "return yards," which is how far players run with the ball after receiving a punt or kick.

The incentives won't significantly ease the pain of surging tuition or shrinking investment portfolios. Yet banks and credit unions hope that their efforts will provide some comfort to consumers as they struggle to finance their children's education.

Yearly tuition and fees at public four-year colleges have risen 62% in the past decade, to $7,020 in 2009, after adjusting for inflation, the College Board says.

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7 Alternatives to Pay for College

Posted by Nick Porcell

The news on college costs is mighty grim, but there are plenty of creative ways to keep your college dream on track.

Dwindling state and federal aid, lower endowments and drops in fund raising have forced many colleges and universities to raise tuition prices and cut back on financial aid programs.

What's a cash-strapped student to do?

Never Give Up on Scholarships

You don't have to be a stellar student to land a big scholarship. Unless it's strictly an academic scholarship, your grades don't really matter. As long as your grades make the cutoff, often a 2.5 GPA or higher, you have as good a chance as any applicant of bagging a scholarship.

And there's no reason your scholarship search can't continue through four years of college.

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Rising College Tuition and How to Handle It

By Leah Gorham

According to a survey released by the College Board Tuesday, tuition and fees at private 4-year schools rose 4.4% in the current school year to $26,273. Charges at public 4-year universities spiked as well, over 6% for both in-state and out-of state students. There are several reasons why tuition costs are going up. Private schools have seen their endowments shrink and public schools are suffering from a drop in state funding, which decreased 5.7% per student this year. Moreover, the availability of financial aid isn't keeping up with these climbing costs. Grant funding grew only 4.7% in the 2008-2009 academic year. As a result, student loans are also up, with total borrowing increasing by 5% between the 2007-2008 and 2008-2009 school years.

Looking at these numbers we may wonder, why even during a recession do college tuition rates continue to rise and where does all the money we pay for tuition really go? At many colleges with tuition rates on the rise, management is more similar to a political environment then that of a private corporation. In other words, colleges are not good at cutting programs when they add. For example, it is hard to cut faculty members because of tenure and many colleges also spend more on nonfaculty salaries than it does on pay for the teachers.

There are several strategies one can use to make paying for college a little bit easier on the wallet. It is important to use savings strategically, such as pulling money out of a 529 savings account before borrowing, even if the account has been devalued over the past year. It is also important to borrow smart by using Stafford loans and PLUS loans and check for available tax breaks for paying college tuition. Also, always encourage someone applying to college to apply to several safety schools and to apply to two or three schools with average GPA and SAT scores lower than theirs. They may be able to get more financial aid from these schools, who are looking to boost their reputation by attracting smarter students.

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College Costs Jumped $1,000 in 2009

Posted by Leah Gorham

On the bright side, scholarships totaling an estimated $71.2 billion were handed out last year

By Kim Clark

The total sticker price of a year at a typical university rose by more than $1,000 in 2009, even though living costs, as measured by the consumer price index, fell.

The average asking price for tuition, room, board, books, and all other expenses at public universities jumped by $1,062, or 5.8 percent, to $19,388 for the academic year that has just started. The total student budget for private colleges rose by $1,638, or 4.4 percent, to $39,028, the College Board reported today as a part of its annual analyses of college prices and financial aid trends.

The tuition prices have risen even faster than recent and significant increases in federal grants and education tax breaks, the College Board calculates. That means the net out-of-pocket costs of a year at college rose several hundred dollars in 2009, while families struggled through a recession.

"Families are facing these prices with incomes that are not making any progress at all," Sandy Baum, a College Board analyst, noted. Considering how public colleges and universities, especially, have had their state subsidies slashed over the years, however, Baum said the tuition increases could easily have been worse.

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5 Tips for College Students to Boost Credit Scores

By Leah Gorham

It is important to being keeping an eye on your credit score in college because once you graduate and are on your own, you will need to have a good credit score in order to open new bank accounts, get a new apartment, condo, or house, or buying a new car. Here are 5 tips from CollegeCandy.com to build a good credit score:

1 .Get a Credit Card
You can't build credit without having a credit card. Get a credit card and charge a couple small things on it each month, making sure to pay off the bill in full. Paying your bill in its entirety will show you are responsible and handle money well.

2. Put Your Name on the Bills
Although your parents may be paying many of your bills during college, you won’t have very strong credit references when it’s time to get out on your own if nothing is in your name. Start small by putting bills such as the cell phone bill in your name.

3. Pay What You Can and Pay on Time
Pay more than the minimum payment on credit card bills. Paying only the minimum payment will result in large finance charges and higher balances, causing your credit score to suffer.

4. Keep Old Accounts Open
Do not constantly open credit cards and then close them or build up large amounts of debt and transfer your funds to a new card, and close the first account. This type of activity will show that you are a sporadic and unorganized spender. Instead, find one or two really good credit card deals that you can use for years and stick with them.

5. Keep an Eye on Your Credit Score
Regularly check and monitor your credit score so that if it starts to slip you’ll be aware and can re-anaylze your spending and try to get those numbers back into good standing. You’ll also be able to monitor your activity and prevent fraud, identity theft, or unwarranted charges. Use a service such as FreeCreditReport.com or speak to a financial expert to find out your current situation.

For more information on these 5 tips click here.

How to Build Your Credit Score in College

Posted by Mary Clare McGraw

First, a good way to get started is to open a checking and savings account. If you are going to take out a small loan, while still in college, try to co-sign on the loan with someone who has great credit. You basically get to piggyback on their good credit. The thinking is that if someone with great credit is willing to cosign with you, and you pay your bills on time each month, you’re probably very credit worthy. It’s like getting someone to vouch for you. It’s an excellent way to build credit extremely fast. You can try a student credit card but make sure to be careful about the card you sign up for. Don’t take a credit card offer that you get in the mail because they can charge as high as 21% interest! Signing up for a store credit card at your favorite store could be a way to ease into building your credit by only having to pay a bill when you shop at that one store. It minimizes the amount of bills you will have to deal with at first and it is more difficult to rack up a large amount of debt at one store than at various stores you may shop at in one day even. Getting a loan is a good way to build credit in college, even if it is subsidized and there is a grace period until after you graduate. Lastly, if you have a credit card, be sure to use it every month but try not to charge more than 30% of your credit limit. Keeping your balance below this amount shows creditors that you are responsible with credit and are not very likely to overextend yourself financially.

GoCollege.com

Paying For College In Tough Times

Posted by Nick Porcell

If there's one thing that might take your mind off the sorry state of your own retirement, it's worrying about how you'll pay for your kids' college education. Even parents who thought they'd saved enough are coming up short and wrestling with financial aid forms that make tax returns look like child's play.


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Great efforts on College Finance

Posted By Shawn Gao

Let Obama help students in the recession. Students do not need borrow money from private companies anymore. And bigger range covers more low and middle-income families. Although students are still bearing, they could try to trust the government. Don’t afraid of taking loans from the government because it is more legislate and affordable than private companies. By taking loans from the government, students would have lower interest rate than any private companies. Also, there are 529 plans available for students to take. Moreover, wherever the students are, they can choose those 529 plans all over the United States. In order to let students directly borrow money from government, it eliminated repayments for private companies. More and more low and middle-income family students could join in these plans. Thus, the students don’t have to worry about paying off their tuition again. The responsible government will help them. The new proposals are released just help more students. Obama government release billions of money in order to make sure big range of low-income family students can be benefited by the new proposals. By taking advantages of the proposals, students are taking the loans without more debts. Students are more glad to take loans.
reference:
1.http://www.forbes.com/2009/09/10/college-fafsa-529-plan-personal-finance-obama-overhaul.html
2.http://www.onlineathens.com/stories/092709/opi_497788246.shtml
3.http://www.google.com/hostednews/ap/article/ALeqM5jlMpJGn28kqCcgU-aGcYE_ZHW-ywD9AP7STG0

Obama put effort on college finance

Obama Proposes College Finance Overhaul

Posted by Shawn Gao

The Obama administration released two proposals on Wednesday that may change how middle-class families pay for college. The goal of the suggested changes is to expand the use of state and federal programs by low- and middle-income earners by making them easier to use. The proposals would affect 529 college savings plans and the federal application required for almost all financial aid.
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Finding Your Way Around College Finance

by Quang Nguyen




Many students go through their college years thinking they will repay their debts after graduation. They think that there is nothing they can do right now. However, budgeting is the most important thing college students should do right away when they get into college. The first step you should do is keeping your receipts from shopping at either the bookstore or the local market. After keeping them for a month, you can put the information down on a spreadsheet and see your expenses for yourself. From your expense information, you can create a short term and long term goal for yourself in term of financing. Short term goals would be paying rent, meals, and books. Medium term goals would be paying for the vacation you will take during spring break, or how to be financial confident when you study abroad in Europe next year. Finally, long term goal would be paying off your college loans and maybe investing in the stock market or a mutual funds that will give you a good starting budget for your expenses after college.

When you get a job after college, there are some quick steps that you should do in order to ease your college loans payment. First off, you should set up a direct deposit so that your wage go straight into your account. This way, you don't have a receive your money late. A couple of days does matter since you might be getting a new higher interest on your college loans. Then you should enroll in a benefits from work right away. Some say that benefits might worth more than wage since you have to pay income taxes with your wage but not benefits. You also might want to open a saving account that generate interests. In addition, as soon as you start working, you should think about your retirement plan right away because the sooner you start, the more money you will get at the end.

The Wall Street Journal reports that college students borrows more than ever. The U.S. Department of Education claims that student loan disbursement grew as much as 25 percent from last year to as high as $75.1 billion. It is reported that two-thirds of college students have debts in average $23,186 each. This is a huge amount of money that they have to pay back. Furthermore, students who go to grad schools incur a debt as much as hundreds thousands of dollar. In this economy it is a good question if they will be able to pay back their debts and still keeping up with other expenses one must have like rent and food. This is why students need to look at their financial situation more seriously and start budgeting as early as possible.

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Invest into your prosperous future!

By Alma Zhumagulova

A study done by College Board in 2007, Education Pays, found out that “people with a bachelor's degree earn over 60% more than those with only a high school diploma.” And later on this difference gets even wider – the “earning potential between a high school diploma and a B.A. [exceeds] $800,000”. Therefore, even though these times might not seem as the most conducive for going to college, students should still consider the long-term advantages that it will provide. There are plenty of ways to get the education you want at a much lower price than you expect.
According to bankrate.com, even average students should never give up on scholarships, and search for scholarship sources on sites such as FastWeb, College Board, Wiredscholar.com and ScholarshipCoach.com. If you did well in high school then most likely you will have more options to consider and more chances to get scholarships. As I read on the usnews.com, “some of the most expensive schools by sticker price also give out huge scholarships and can actually be cheaper, in the long run, than public schools for many students.” So study hard in high school!
In addition, there are many colleges that offer accelerated degree programs, so that you can have your bachelor degree in 3 years, or receive your master’s degree along with your bachelors at no additional cost. You should also consider transferring from a cheaper college or a community college to your dream college in your junior year, which will definitely save you a lot. There are even some tuition-free colleges where you need to work in your major-related area 10-15 hours per week to compensate. By going into the public service sector after you graduate or by volunteering you can cancel a significant amount of your federal education loans.
Overall, whatever the times are, education is a huge investment that will well pay off in the long run, keeping in mind you make wise decisions!

References:
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Students Get Creative to Pay Off Tuition

by Jameel Murray

Because of the rising tuition costs, students are forced to take out loans that can have them in debt for the majority of their lives. However, some students are becoming increasingly creative in order to pay off the large tuition bill. Students like Corey Walker, an aspiring anesthesiologist who attends Palm Balm Atlantic University, started a blog that asks sponsors to help pay off his college tuition. The blog, helppay4college.blogspot.com offers visitors the opportunity to donate money and also gives Walker the opportunity to do something in his free time.
Many students like Corey Walker are discovering new and creative ways to paying off their huge tuition bill. Tuition has skyrocketed out of control, often leaving students with limited options. According to Krista Walker, a student attending Idaho State University, students are sharing books so they don’t have to buy them. Other students are simply working part time jobs to help purchase food supplies and other necessities. Some students are even selling their sporting event tickets, cashing in on money that can possibly help pay off some tuition or debt. According to Rachel Klosterman, a senior at The Ohio State University, she got $475 for selling her Michigan-OSU game ticket.
We are all aware that college tuition has gone out of control but there are solutions. Students are needed to begin their own ventures that will assist in paying off tuition.

Sources: http://uweekly.com/newsmag/09-23-2009/12370
http://www.localnews8.com/global/story.asp?S=10989269
http://www.wpbf.com/money/21092791/detail.html

Money, money here I come!

By Jonathan Tse



Choosing a college major may often seem like a very tough decision because there are so many factors involved. Often most people think that the major they choose will have to be the career that they pursue, but that is not always the case. Still, choosing a college major is still a very important decision of every college student.
Recent studies have shown that the most money-making majors involved mathematics. The major that topped the list of the best paying jobs was chemical engineering. Research shows that only around 4% of all college graduates pursue a major that involves math. This trend in the need for college graduates with proficiencies in mathematics is mainly due to the technology-driven society that we live in today. The five worst-paying jobs turned out to be social work, special education, elementary education, home economics, and music/dance.
The key to making money does not always depend on the major chosen due to the various skills and interest of different people. Passion and desire to progress are more important. If one is interested and works hard to pursue in a certain field, money can still be made. Also, undergraduate degrees do not bind one to the field of the major chosen. Most of the time, if one decides to go to graduate school, the major of the undergraduate degree is rarely a concern. So one can choose to study a completely different topic in graduate school and still succeed. One must understand where one’s passion lies and pursue it no matter what. There is no specific major to choose or way to make money. It all depends on where one’s interests and skills lie.

http://money.cnn.com/2009/07/24/news/economy/highest_starting_salaries/index.htm?postversion=2009072404

http://encarta.degreesandtraining.com/articles.jsp?article=featured_5_lowest_paying_majors_and_what_you_can_do_about_it

http://www.salary.com/learning/layouthtmls/leal_display_nocat_Ser285_Par409.html

For-profit colleges' increased lending prompts concerns

Posted by Quang Nguyen




Some of the nation's biggest for-profit colleges and vocational schools are boosting enrollment in tough times by making more loans directly to cash-strapped students, knowing full well many of them probably won't be able to repay what they borrowed.

The schools still make money because the practice boosts their enrollment and brings in tuition dollars subsidized by the government. But some of these students could end up saddled with high interest rates and loan payments they can't handle, a burden that could damage their credit for years to come.

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Most lucrative college degrees

posted by Jonathan Tse

Hint: Grab a pencil, calculator, protractor ... or a drill. Engineering majors snag most of the top spots.




(CNNMoney.com) -- Math majors don't always get much respect on college campuses, but fat post-grad wallets should be enough to give them a boost.

The top 15 highest-earning college degrees all have one thing in common -- math skills. That's according to a recent survey from the National Association of Colleges and Employers, which tracks college graduates' job offers.

"Math is at the crux of who gets paid," said Ed Koc, director of research at NACE. "If you have those skills, you are an extremely valuable asset. We don't generate enough people like that in this country."

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More Help With College Expenses

by Jill Boynton
posted by Jameel Murray

As part of the American Recovery and Reinvestment Act of 2009, computer equipment and technology has been added to the list of qualified expenses that are eligible to be paid from money in a 529 plan. For the years 2009 and 2010, the cost of purchasing any computer technology, equipment or internet access and related services are approved expenses.

529 plans are used to save money for college tuition, room and board and other expenses. When used for a qualified expense, withdrawals from a 529 plan account are tax free.

The IRS said covered computer and related peripheral equipment includes any supporting equipment designed to be placed under the control of the computer, such as a printer. Education software also qualifies although computer games do not, unless educational in nature. The beneficiary must use the item while enrolled in an eligible educational institution.

Be aware however that expenses for computer technology are not qualified expenses for the American Opportunity credit, Hope credit,Lifetime Learning credit, or tuition and fees deduction.

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Caught in the college arms race, students and parents pay more and more

By Nick Perry

Posted by Alma Zhumagulova

COLLEGES ARE like the cookie monster. They seek and devour every resource in sight, with few constraints and even less restraint. At least that's how Ronald Ehrenberg describes it when explaining the big question on the minds of so many parents:
Why does college cost so much?
"Our sole goal is to find cookies and stuff our mouths," says Ehrenberg, who directs the Higher Education Research Institute at Cornell University. "Colleges and universities like to grab as many resources as they can. We want to make ourselves as good as we can. We want the best facilities, students, resident halls and labs, so there's this tremendous drive to be better, and that costs money." For a long time, he says, "there's been no check on this drive to get better, because the lines of students wanting to get into institutions keep getting longer."
Of course, the U.S. higher-education system has long been the envy of the world. A college degree has become a requirement to enter almost any profession, and can increase lifetime earnings by a million dollars or more.

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Time To Change Student Loan Program

Posted By Shawn Gao

Relationship between federal government and private lenders are going to change. There is no more "heads the corporation wins, tail the government loses” business model played in recession time. New policies of Student Loan Program, issued by the government, is pushing the private lenders out of marktet.
The goverment is making bill which will make student loan program by itself, and wipe out any other private lenders in the industry. Also, if the bill becomes true, Federal Family Education Loan program - also known as FFELP (Under FFELP, a wide variety of private firms make loans to college students and are guaranteed a certain return on those loans, with the government making an allowance payment if the interest paid by students isn't sufficient to meet those guarantees.)will be eliminated.
It was not the beginning of the change. Ever since Clinton years, the government had already been trying to make student loan program directly by itself. "According to the Bush Administration’s own figures, it costs the government four times as much to back private loans as to make the loans itself, and the Obama Administration estimates that getting rid of the subsidies and guarantees will save close to $90 billion." (James Surowiecki) It is no doubtful that high profit time for those private lenders are ending, but bring new conflicts between government and them.
This conflict made private lenders go on strike. Their issues are making student progame by the government would cause 35,000 to 50,000 people lose their jobs in lending industry. Meanwhile, they do not believe that the government could make the business as well as they did in the past time. On the governemtn' side, making the bill would benefit low- income families students in order to make sure that any student in U.S could handle expensive tuition fees while saving enough billions money to government. Just in recent days, "The U.S. House voted 253 to 171 on Thursday to approve the legislation, which would get rid of a popular student loan program and in its place provide for direct government lending."( Michael Collins). if bill becomes true, many students will be benefited by the new changes.
Preference:
1.http://www.newyorker.com/online/blogs/jamessurowiecki/2009/09/finally-some-real-action-on-student-loans.html
2.http://www.knoxnews.com/news/2009/sep/18/college-loan-program-on-the-ropes/
3.http://www.galesburg.com/news/news_state/x1358732460/Student-loan-default-rates-on-the-rise

Community College Students Also Struggle with Financial Aid

by Quang Nguyen




Most people would think that community college students have a much easier time than their peers when coming to financing for their education. However, the fact is that they struggle as much as any four years college students, if not more. Community college students made made up of 25% of all college students and they generally have less access to college fund than a full time students in a four year school. For those who applied for financial aid, 80% of them do not get it. Although the tuition is much lower than the average university, the costs for books, fees, and other expenses for these students are pretty close to the normal student. This resulting in these students have to borrow high interest loan from private funds and credit card debts to pay for their education.

According to the Institution for College Access and Success, 24% of full time undergraduate students spent their time at community college before attending university. The study also points out that even after receiving financial aid, 80% of community college students still need more aid in comparison to 54% of public four year schools and 53% of private four year schools. The most important fact that the Institute was able to find is that the amount of money that community college students face in financial gap is very close to those in public four year schools, which is $5,277 for community and $5,286 for public. The Institute suggests that community college students do not have enough information to access to financial aid since the number of students who applied to funds they are qualified is much lower than those in four year schools.

Overall, community college students should have as much opportunity as any other college students for their education. We usually think of community college students as working while take a couple of easy classes when comparing to four year schools students. However, most community college students are full time students who spend as much time studying as any other four year students. The issue would be solved if there are more resources at community colleges showing their students how to get access to funds.

References:
http://blogs.wsj.com/wallet/2009/06/01/getting-help-paying-for-community-college/
http://www.citytowninfo.com/career-and-education-news/articles/study-says-community-college-students-need-more-financial-aid-09051403
http://ticas.org/files/pub/cc_fact_sheet.pdf

Government Attempts to Handle High Tuition Costs

By Jameel Murray

Along with the woes and blunders of the sluggish economy, Americans are also forced to worry themselves of the uncontrollable rise in college tuition. According to the biennial report from the National Center for Public Policy, the drastic increases in higher education may be out of reach for most Americans. While increases in family income are somewhat persistent, college tuition has increased 147 percent from 1982 to 2007. According to Patrick M. Callahan, the president of the center, the education gap between the American workforce and the rest of the world will make it difficult to be competitive.
Even though college tuition will consistently increase, the government has acknowledged the situation, implementing many plans in hope of providing higher education for all students. The stimulus bill, which was passed by President Obama, has set aside $90 billion for higher education initiatives. Because the money would allow more students to receive a college education, the Obama administration believes that this money would eventually enhance the American economy. Vice President Joe Biden also conducted a town hall meeting at Syracuse University to discuss the progress being made toward handling the increases in college education. According to Biden, the administration has simplified the federal loan process and is also pushing to increase grants and loans paid for by reduced subsidies to private lenders. Government officials are immediately making an attempt to grapple with the outrageous costs of college tuition. We have already seen some states like Michigan offering free college tuition to students.

References: http://www.aralifestyle.com/article.aspx?UserFeedGuid=790f937a-c021-4f40-b71d-51b495ef27d1&ArticleId=2103&ComboId=4225&title=Obama-s-stimulus-bill-pays-for-education

http://www.detnews.com/article/20090915/POLITICS02/909150354/State-plan-urges-free-college-tuition

http://thegovmonitor.com/world_news/united_states/saving-and-paying-for-college-needs-to-be-fair-simple-and-more-efficient-4426.html

College ate my life savings!

By Jonathan Tse




Everyone knows that the price of attending college is continuing to skyrocket as the years go by. Why is this monster called college continually growing in appetite, and charging such high tuition rates? Tuition rates have increased 10-fold since 1977, and have been increasing by around 4-6% every year. This year, tuition rates have increased by a 37-year low of 4.3%, which is just a little bit higher than the current inflation rate. The problem is that a third of students do not get scholarships, grants, or financial aid and have no choice but to pay the full tuition price. What is the reason for this outrageous inflation of college tuition?

Everyone seems to think that the correlation between a high ranking college and price is linear. This type of thinking has created a trend in colleges and universities in which all schools want to look like mansions. Colleges are spending more and more money to improve their appearance and facilities so that they can attract more students to their school. This works because people think that since a school looks great and costs a lot of money, it must be a great school and worth the cost. This increase in prices would be more acceptable if schools were using the money to improve the value of the education that they provide, but this is not the case. Also, colleges are unwilling to cut their spending. They continually add departments and professors, but due to political and other issues, they are not willing to cut any of the more expensive and small departments. Also, it seems that there is a problem with the productivity of the professors. They are more interested in research than their classes and are not willing to take on more classes and do a little less research. Also, many professors are found to not change their teaching styles and teach courses in the same manner, over and over again.

There is clearly many things going wrong with the rise of college tuition prices, but luckily some seem to sense this. Some colleges and universities like Harvard and University of California-Berkeley have created rules in which people under certain income levels do not have to pay tuition or pay a discounted fee. The richer schools have slowly begun to cut costs and offer incentives but for now this is still not enough to stop this upward trend.



http://www.usnews.com/education/paying-for-college/articles/2007/10/23/college-tuition-prices-continue-to-rise.html
http://money.cnn.com/2008/08/20/pf/college/college_price.moneymag/
http://www.nytimes.com/2009/09/05/your-money/paying-for-college/05money.html

Uncle Sam’s educational initiatives

By Alma Zhumagulova




As the country is slowly coming out of the recession, the US government is coming up with a range of various initiatives to facilitate the future economy by helping the US teenagers get one of the most valuable assets – higher education. President Barack Obama, Vice President Biden and the Secretary of Education Arne Duncan are all actively seeking for the solutions to the problems in the US education system. Many students are dropping out of school because of the rapidly increasing tuition costs especially in these times of severe recession, when their parents are being laid off, house prices plummeted and future employment prospects seem to be very dim. According to columbiaspectator.com “the U.S. has fallen to sixth in the world in number of people attending college." However, the ultimate plan is for the US to “produce” the highest number of university graduates in the world by the 2020. This will result in the larger share of American population being at least in the middle class and, thus, to a much more competitive economy. With the new Income Based Repayment plan that came into force in July many American students will have a chance to graduate from a respectable college and have large percentage of their federal student loans to be waived (usnews.com). Furthermore, Arne Duncan along with two members of Congress is proposing the Student Aid and Fiscal Responsibility Act of 2009 to Congress this week. Together the administration and the Department of Education are working on making the federal loan application process easier, advancing 529 college savings plans, progressing Federal Direct Loan Program to all US universities and colleges, investing into community colleges (Obama’s American Graduation Initiative) and many other educational initiatives (columbiaspectator.com). Providing the US population with more options to get quality higher education is currently one of the primary goals of the government, and community colleges can help reach the 2020 target. Many community college graduates state that choosing community colleges over 4-year colleges was the much cheaper education alternative was one of the best decisions they have made (usnews.com). For many of them community colleges became doors to four-year colleges, by providing access to partial and full scholarships and financial aid as well as quality education at an affordable cost.

References:

1. http://thegovmonitor.com/world_news/united_states/saving-and-paying-for-college-needs-to-be-fair-simple-and-more-efficient-4426.html
2. http://www.columbiaspectator.com/2009/09/15/new-act-proposed-house-help-send-more-kids-college
3. http://www.usnews.com/blogs/college-cash-101/2009/07/01/pay-off-your-student-loan-with-help-from-uncle-sam.html
4. http://www.usnews.com/blogs/letters-to-the-editor/2009/09/14/dont-count-out-community-college.html
5. http://www.bnd.com/business/story/914234.html

The New Card On Campus: Prepaid Debit

Posted by Quang Nguyen




Many colleges have tightened rules on credit-card marketing on campus in order to discourage students from racking up huge amounts of debt. Now another kind of card is being pushed on campus -- with its own set of issues.

This fall, financial-services companies are focusing more of their campus marketing on "prepaid debit cards," which work like standard debit cards except that they aren't linked to a traditional checking account. Among the issuers aggressively marketing their cards this year: U.S. Bancorp and Wal-Mart Stores Inc.

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Obama Proposes College Finance Overhaul

by David K. Randall
posted by Jameel Murray

The Obama administration released two proposals on Wednesday that may change how middle-class families pay for college. The goal of the suggested changes is to expand the use of state and federal programs by low- and middle-income earners by making them easier to use. The proposals would affect 529 college savings plans and the federal application required for almost all financial aid.

Currently, only 5% of families defined as middle class are enrolled in 529 plans, according to the Treasury Department. The majority of 529 savers have incomes in the 90th percentile or higher.

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4 Ways to Get College Textbooks Free

And several other ways you can save money before you start studying
By Kim Clark; September 2, 2009

Posted by Alma Zhumagulova

As students return to college campuses, one of the biggest price shocks they face will be at the bookstore. Dozens of science, engineering, and business textbooks now list for more than $300 apiece. Students, professors, college officials, and entrepreneurs are fighting back against these rising textbook prices and are developing new ways to distribute textbooks free of charge without requiring students to violate copyright laws or download big files illegally from BitTorrent sites.

Even students whose professors continue to assign the big, expensive, traditional textbooks can still cut out several hundred dollars from the typical $700-to-$1,000-a-year bookstore bill by using new textbook rental services, reading books online, or just following tried-and-true techniques such as borrowing textbooks from libraries.

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Is college still worth the price?

Posted by Jonathan Tse
By Penelope Wang, Money Magazine senior writer
Last Updated: April 13, 2009: 12:36 PM ET

Costs are soaring twice as fast as inflation, even as salaries for graduates are falling. Time to examine the old belief that college is worth whatever you can pay.



(Money Magazine) -- In May, more than 20,000 spectators gathered under blue skies at Wesleyan University in Middletown, Conn. to hear Democratic presidential candidate Barack Obama deliver the commencement address.

After recalling his days as a low-paid community organizer, Obama urged the graduates to consider careers in public service. "I ask you to seek these opportunities when you leave here," Obama declared. "The future of this country - your future - depends on it." His message was received with enthusiastic applause.

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Trying to Save for the Kids' College? It's a Bear

posted by Shawn Gao

If the bear market has kept you from setting money aside for your child's college education, you're not alone.

Because of the economic crisis, 47% of parents are saving less or aren't saving at all for their kids' education, according to a Gallup survey released in May by student-loan provider Sallie Mae.

While not saving for that degree may have felt like a smart move while the stock market was crashing, the need to fund your kid's college account has only grown. For the 2008-2009 school year, the average cost of attending a four-year public school for in-state residents -- including tuition and room and board -- rose 5.7% to $14,333, according to the College Board. The cost was up 5.6% to $34,132 for a private university. (These numbers aren't adjusted for inflation.)
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Say Yes to Education initiative

By Quang Nguyen




This past week, SU alumnus and U.S. Vice President went to Syracuse for a meeting on the Say Yes to Education initiative. The program is the White House’s effort to reform the current education system. The program hopes to increase the graduation rates of students both in high schools and colleges. According to Biden, it is important for parents and teachers to expect more from kids. Along with Vice President Biden, the Secretary of Education Arne Duncan estimates that the drop out rate every year is as high as 30 percent.

The first step of the Say Yes to Education initiative has been implementing in Syracuse. Many different organizations has donated money in order to improve the current education system. For instant, the Community Foundation donated as much as $1,000,000 to support the Say Yes to Education within the Syracuse Demonstration Program. In addition, the contributions to the Say Yes to Education Fund announced that it would match the amount of donation that the Community Foundation pledged.

Secretary of Education Duncan said that this program is the collaboration between the government, the school district, and middle class family that would only bring benefits. He really believes that Syracuse would be the lesson for the rest of the U.S. to look at and improve their graduation rates. Furthermore, the program is proved successful and has been implemented in other areas of the country such as Harlem, Massachusetts, and Connecticut.

References:

http://media.www.dailyorange.com/media/storage/paper522/news/2009/09/10/News/Biden.Ties.Education.Reform.To.Say.Yes.Initiative-3767735.shtml

http://www.cnycf.org/cnycf/SayYestoEducation/tabid/161/Default.aspx

http://news10now.com/content/top_stories/481961/say-yes-to-education/?RegionCookie=1013&ap=1&MP4

Learn To Save Money

Posted By Shawn Gao

Facing the recession time, college students are wondering how hard their future will be. At same time, they still need to think about how to save money and pay off tuitions immediately. By getting those loans from credit companies, students will bear the pain of paying off their tuitions in future ten years. So far, It is a common mission for all of college to keep their wallet. From those online news, state college students may find some ways of get their way out of the loans.
Obviously, students are able to save their money by themselves. For example, getting scholarships, going to community college and purchasing used textbooks,etc. Those might be the simplest way to let us be as affordable as possible. Above all, keeping away from desirable product could be effective. Anyway, it is important to ensure that students can be care of swiping their cards each time when they purchase.
Differ from individuals, colleges find that it is the greatest time to boost personal finance courses. "A personal finance course at Wellesley College in Massachusetts is one of America’s 10 Hottest College Classes, proclaims The Daily Beast."(Ismat Sarah Mangla). However, students do not need to spend extra in order to take that course. The saying might be sign that will change future ways of consuming.
Moreover, government releases policies for those middle and low classes families on perfect time. "The Obama administration released two proposals on Wednesday that may change how middle-class families pay for college. "(David, K. Randall) It is not hard to believe that Obama government would put such hard efforts on the families. Balancing the rich and the poor may let U.S get out the recession quicker.

Preference:
1,http://www.ethiopianreview.com/articles/29850
2,http://moneyfeatures.blogs.money.cnn.com/2009/09/09/teach-your-children-wealth/
3,http://www.forbes.com/2009/09/10/college-fafsa-529-plan-personal-finance-obama-overhaul.html

The Cost of Education in Tough Times

By Alma Zhumagulova


As an international student I was first very amazed by how people in the US go to such expensive colleges and universities. In Kazakhstan, where I come from, average tuition is about $3,000-4,000 per year. Of course, the tuition level is based on the income level of the population, which is much lower in Kazakhstan. However, in my culture it is not widespread to borrow money for education that one obviously cannot afford, while it is a common practice in the US. This is due to the fact that American people are in general very confident and optimistic about their future, which is an extremely helpful trait, the one that makes the US one of the leading countries in the world. On the other hand this is the trait that got the American people into so much debt. About two-thirds of American students take out student loans which accumulate to an average of $23,186 by their graduation (Chaker, A.M.) and last academic year amounted to $75 billion in federal loans (Cornatzer, M.). Aside from the loans students have credit cards, about 4.6 per student on average according to Sallie Mae (Buck, C.). All this financial pressure affects students’ lives in various ways. 75-85% of American teenagers stress about paying for their education as it was found in the survey by Bank of America and Seventeen magazine (Buck, .). However, this is nothing compared to the problems these students will face after the graduation. “In a 2006 survey of 1,508 graduates under age 35, 39% of college graduates say it will take them more than 10 years to pay off their household's education-related debt” (Chaker, A.M.). This in turn affects the natural progression of life of these graduates. Some say they postpone the purchase of their own home; others delay their marriage and having kids (Chaker, A.M.). However, not going to college at all or dropping out of school is not an answer to these problems. In order to maximize one's career opportunities while avoiding long-term financial effects, one has to balance and plan ahead, e.g. go to a public school instead of a private, search for more funding, work part-time, and make a strict budget and stick to it. In other words, where there is a will, there is a way!


References:

BUCK, C. Saving on college expenses gets priority now. Mcclatchy Newspapers
Http://www.bnd.com/business/story/914234.html

CHAKER, A.M. Students Borrow More Than Ever for College. The Wall Street Journal.
Http://online.wsj.com/article/SB10001424052970204731804574388682129316614.html?Mod=rss_com_mostcommentart

CORNATZER, M. 529 ways to pay for college. The Newsobserver.
Http://www.newsobserver.com/2923/story/1675964.html

My College Brochure Has Misled Me

By Jameel Murray

As I sat in excitement reading through my Syracuse University brochure, I sifted through the peaceful and relaxing visuals of the vibrant quads, the exuberant students, and the exciting environment of college life. Now that I am currently in my third year at Syracuse, I never remembered that brochure mentioning anything about extreme student debt. With college tuition consistently increasing and a tough economic situation, more and more students are forced to drop out or increase their borrowing. According to various sources, two thirds of college students are borrowing money to pay for college. On average, each student would graduate to face $ 23, 186 worth of unpaid student loans. Because of the sudden influx of student loan applications, award letters were delayed and caused a number of students to miss out on there first day of classes.
According to Daniel H. Weiss, the president at Lafayette University, it is utterly difficult to regulate the rise in college tuition. Weiss pleads that the rise in tuition is due to the funding of ongoing professor research and on- campus improvement. If colleges and universities can reduce funding in secondary priorities such as campus aesthetics and stadiums, college tuition may be affordable someday, and students would not have to spend the rest of their lives paying off student loans.

References

http://media.www.bsudailynews.com/media/storage/paper849/news/2009/09/09/News/Student.Loan.Applications.Increase.By.50.Percent.Cause.Delays-3766237.shtml

http://www.nytimes.com/2009/09/05/your-money/paying-for-college/05money.html?pagewanted=2&em

http://online.wsj.com/article/SB10001424052970204731804574388682129316614.html?mod=rss_com_mostcommentart

New law to help in paying back college loans (By Sally Holland)

Posted by Alma Zhumagulova


The College Cost Reduction and Access Act that created the new Income-Based Repayment program was signed into law in 2007 to help make student loan payments more manageable.

However, the Department of Education warns that making smaller loan payments may actually increase the amount that borrowers will need to pay back in the long run because interest will accrue for a longer period of time. On the other hand, if the borrowers meet certain criteria, their remaining student loan debt can be dropped after 25 years.

Morgan is not the only one struggling in the weak economy. According to Rep. George Miller, the Democratic chairman of the House committee that worked on the bill, "The U.S. college affordability crisis is only worsening and to top it off, this year's graduating class is about to enter the toughest job market for college graduates in 25 years."

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Student Borrow More Than Ever For College

Posted by Xiao Gao

Students are borrowing dramatically more to pay for college, accelerating a trend that has wide-ranging implications for a generation of young people.

New numbers from the U.S. Education Department show that federal student-loan disbursements—the total amount borrowed by students and received by schools—in the 2008-09 academic year grew about 25% over the previous year, to $75.1 billion. The amount of money students borrow has long been on the rise. But last year far surpassed past increases, which ranged from as low as 1.7% in the 1998-99 school year to almost 17% in 1994-95, according to figures used in President Barack Obama's proposed 2010 budget.

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Saving On College Expenses Gets Priority Now

posted by Jameel Murray


When Paul McGinnis heads back to college in Spokane today, he'll be packing more than his CDs, laptop and favorite sports posters. He's also carrying some newfound financial awareness.

Money's tight this year in the McGinnis family, and it's made the 19-year-old college sophomore think twice before whipping out his debit card for every little purchase. Earlier this year, his dad, Greg, was laid off from a 20-year job in the building materials industry and his mom, Nancy, took a pay cut from her administrative job at Kaiser.

Everyone's watching the wallet, including Paul, who will be living in a dorm at Whitworth University.

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Don’t let college kill you

By Jonathan Tse


Due to the current recession that the American economy is experiencing, there has been a great increase in the borrowing of money by students to pay for their college tuition. The total amount borrowed by students has increased by about 25% from the last year. This, in effect, has led to the increase of young people who are in debt by the time they graduate from college. In 2006 there was a survey taken of young people under age 35 and around 39% state that it will take them more than 10 years to repay their college loans. The good news is that the rapid increase in college graduates with large debts is expect to start to slow down between the 2009 and 2010 academic year due to predictions of a recovering economy.

The key to prevent being “eaten” by college debts is to borrow wisely. One should always try to borrow from the government rather than private loaners and banks. The interest rate is always much lower with federal loans and the government pays the interest while the student borrowing the loan is in college. Around 25% of students borrow from private loaners who end up being loan sharks charging high interest rates and cause them to become deeper in debt. Also, don’t bite more than you can chew. Students should compare the amount of the loan to the approximate amount that they expect to make in their field once they graduate from college. Even though one only borrows from the government, the buildup of too much loans and interest can still be difficult to repay, so one should not try to borrow the federal government maximum. Students should only borrow as much as they can repay and apply to schools within their budget. Borrowing wisely will prevent the risk of long-term debts from college.

http://moneywatch.bnet.com/saving-money/blog/devil-details/college-finance-101-beware-of-toxic-debt/590/
http://www.usnews.com/articles/education/paying-for-college/2009/06/09/how-much-money-should-i-borrow-for-college.html
http://online.wsj.com/article/SB10001424052970204731804574388682129316614.html

How Much Money Should I Borrow for College?

Posted by Jonathan Tse


Thousands of college students have borrowed too much and doomed themselves to lives of big bills and collectors' calls. But thousands, perhaps millions, of other Americans have been so scared of debt that they've avoided or quit college altogether and likewise doomed themselves to financial struggles. The research is clear: A bachelor's degree, while no guarantee of success, is often a credential needed to win a good job, a raise, a promotion, or even employer-provided health insurance.

The answer then, most financial analysts say, is for students who can find no other way to pay for college to take out modest student loans—no more than $5,000 a year, say—while also cutting costs and working part time (no more than 15 hours a week during the school year) to limit the need for cash. The average recent college graduate with debt owes a total of $21,000, which analysts say should be payable for most of them.

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Let Uncle Sam help pay for college

Posted by Quang Nguyen of Group 5A



Congratulations on your new baby! Have you started saving for college yet?

It's not too early. Children do grow up quickly, and higher education costs go up even faster. The good news is that you have several tax-advantaged ways to come up with college cash.

529 plans get their name from the Internal Revenue Code section under which they were created. These plans are the overwhelming favorite of families and financial planners alike. Your contributions to a 529 plan are not deductible on your federal return, but the money invested in the plan accumulates tax-free. Even better, when you withdraw account funds to pay for qualified education costs, those distributions are not taxed.

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College Admissions & Student Credit Card Debit

Posted By C. Brown

College is a big step for most high school students. The question now of days is, how are you going to pay for your college education? Statics show that not only are students and their parents assuming that their child will get into college, they assume that "public" schools are much cheaper than private colleges, so everyone is trying to apply to public colleges. This could be false for a number of reasons. Since everyone is applying to public colleges, it's making the admissions harder, and the number of applicants they select smaller. Public schools are starting to change their requirements for aspiring applicants to apply, while private schools can actually offer more financial help in some occasions. It has also been reported that current college student credit card debit has gone up significantly since the falling economy as well. You will rack up more credit card bills for each grade that you complete. Students and parents need to do as much as possible to make sure the student and the parent can pay the least amount possible for the student to receive an outstanding college application.

References:

http://www.usatoday.com/money/perfi/credit/2009-04-12-college-credit-card-debt_N.htm

http://ezinearticles.com/?College-Admissions---How-the-Current-Economy-Will-Make-it-Harder-to-Get-into-College&id=2089832

http://www.newsweek.com/id/83159

Saving for you College Future

Posted By C. Brown

College is a big step for most young individuals and their families. Now, you have made the big choice, what college you're going to and all the new friends you're going to make, but you forgot that the economy isn't doing to well, so where are you going to get the money to go to college from? The Obama Administration is proposing to give more ad in student loans, grants and financial aid. Not only are they trying to help the students and families with the financial burdens of going to school, he is trying to persuade teachers to help the kids excel in class by giving them incentives like bonuses. Now there are many ways students and their parents can save for college, but, how nice would it be for more students to be able to receive more grants and scholarships because of their academics provided by their school/teachers. But something good to look forward to is all the options that are out their for the students. Even though it seems like tuition is rising, the family contribution is slightly staying the same and not increasing dramatically. Also, there are many websites that have helpful tips of what to do from the beginning all the way until the end to save for college, and to save as much money as possible.

References:

http://www.mortgageloan.com/college-financing-2009-tips-for-getting-aid-2913

http://blogs.wsj.com/washwire/2009/03/10/obama-outlines-education-plan/?mod=relevancy

http://www.collegeboard.com/student/pay/add-it-up/4494.html

10 ways to land more college financial aid

Post By: Dana Sunderlin

When most high school students start looking at colleges, they think about what the college offers in terms of academics and extracurriculars. But when the financial aid packages from schools come in the mail this spring, the final decision will likely be made with dollars and cents in mind.

"A good financial aid package is as important as the major, course of study and geographic location," says Bob Friedman, the university director of student finance at Yeshiva University in New York. "It comes at the end of the search, and it's absolutely a top concern."

Though financial aid officers have some latitude in how much they can offer students, don't expect that securing a better aid package will be as easy as snaring a deal on a vacation or a flat-screen TV, says Marty Carney, DeLand, Fla.-based Stetson University's director of financial aid.

"Don't come in with the expectation that financial aid offices are in the business of negotiating like used-car salesmen," he says. "In many cases, schools don't negotiate financial aid awards."

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Stimulus gives students financial boost

Post By: Dana Sunderlin

A jump-start for the economy means a helping hand for many new college students entering the 2009-10 school year.

Thanks to the recent passage of the 2009 American Recovery and Reinvestment Act, students from both low- and middle-income households will receive increased financial help this year.

However, the financial breaks won't last forever. One major problem with the stimulus bill is that the changes are temporary, says Lauren Asher, director of the Berkley, Calif.-based student finance think tank The Project on Student Debt.

What will happen in future years remains uncertain, Asher says. But she hopes the bill will provide a springboard for further boosts in federal financial aid.
"Students need access to even more need-based aid," she says. "But hopefully this (bill) will help families continue to invest in education so when the economy does bounce back, they're well-positioned to benefit instead of go deeper in the hole."

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Paying for college through loans

By Jeffrey Kam

Many high school seniors faces the most challenging problem with their parents in the month of April, how to pay for college. This year college funds have been taking hits this year due to the stock markets. Parents might not have amount saved up for college tuition. Although there is a portion of the stimulus bill from the Obama Administration are aiming to give some cash to save the mess, but it takes time. Below are two tips that will help families to pay for college.

Limit your student loans, this year freshman’s are allow to borrow up to $5000, $6,500 sophomores and $7,500 for seniors this year. Although these are small loans, parents can borrow from the federal PLUS loans for the rest of the college fees. Banks also offer loans but at a higher rates and more expensive, these are mostly for families that can afford to repay in the future, or school that are worth the extra debt.

Parents can also use some home equity or their house for helping the loan. Home equity interest rates are 5.5 percent on average, but you can find rates that is as low as 3.3% when you have a good credit score or have a good amount of home equity. These loans are tends to be cheaper than other students loans. The down side to these loans is that debt might carry over into their retirement plan.

http://www.reuters.com/article/reutersComService4/idUSTRE53L4SE20090422

http://www.collegeboard.com/student/pay/index.html

http://www.bankrate.com/news/cheap/20030528a1.asp

Resources: Money for college

Written by Amina Isakovic

We all know that Syracuse University tuition has been rising 5% per year, and with this economy and recession most of us are already struggling to pay our tuition. Maybe you have used up all of your parents college savings or you had loans from the beginning, but still have one or two more years to invest in your diploma. Where do you go for resources?

One of the first places to look at is the College Planning Network, a website that guides you through different steps of attaining money for college. It helps with student positioning, cash flow planning, and much more. Check out the website here.

Another website that I used when I was applying for colleges was College Planning, which is actually a more detailed website from the College Planning Network, but based out of the Northwest. Since I am from Seattle, I found this to be a great site when I was a senior in college. Although most of the website doesn’t pertain to Syracuse students, it help direct us to the next step and what to look out for. Click here to browse the site.

And lastly, check out our very own Syracuse University Office of Financial Aid and Scholarships office and website. Although it seems impossible sometimes to win a scholarship or receive more financial aid, you’d be surprised how much our school really wants to help. Never think that you won’t receive any more money because your parents are in a high income bracket. Always ask!

Well Hope this helps and good luck in the years to follow.

Grad School Money!!!

by D. Babbs

When applying to graduate school, one really needs to figure out whether this option is worth the time and of course, money. Just like paying for undergraduate degree, grants and fellowships, work-study, and loans are available. However there are three additional sources of financial aid that can cover the costs of grad school. Many colleges and universities offer assistantships. Assistantships provide students with a stipend to help them cover the expense of their education, while in return providing their institution with a source of labor for teaching and performing research. Individuals may consider early withdrawals from their IRAs. Withdrawals for qualified postsecondary educational expenses are not subject to the 10% penalty. Potential grad students may also want to consider having employers pay for their college expenses. Some employers offer some type of tuition reimbursement plan. This benefit is a classic win-win situation for employers, as they are essentially investing in the competency of their employees while their employees enjoy a free benefit.

Considering graduate school, of course, requires a lot of research but before you commit to a program, or an education loan, check out:

• What salaries people in your intended field are earning.
• What your monthly payments will be on your student loans.
• How quickly graduates from your school got jobs.
• What salaries graduates from your program are earning.

Like with any major decision, brainstorm the pros and cons of your decision. People with graduate degrees tend to make more money than those with just bachelor degrees, which is an advantage. Now finish the list of pros and cons.

http://www.usnews.com/articles/business/paying-for-graduate-school/2008/03/21/the-grad-school-payoff.html

http://www.petersons.com/education_planner/paying_article.asp?sponsor=2859&articleName=Paying_for_Graduate_School

http://articles.moneycentral.msn.com/Investing/HomeMortgageSavings/WillGradSchoolPayOff.aspx

529 Plans: What Lies Ahead?

529 plans are savings accounts that allow for two main benefits that differentiate them from other types of savings accounts:
1) Tax-free growth of investment
2) Tax-free withdrawals from the account
The only catch is that you have to use the money in the 529 account for college expenses. Both main attributes of the account allow for more money to be saved and spent on college which is a very good thing if you are looking to save some money on expensive tuition. 529 plans became extremely popular when president Bush made attribute #2, (the tax-free withdrawals from the account) a part of the 529 plans in his 2001 tax package. However, the tax-free withdrawal benefit that was activated in 2001 is due to expire in 2010. This means that people who hold 529 college savings accounts may not be able to withdraw from their accounts in a tax-free manor. They will still be avoiding taxes on their growth of investment, but the benefits may be seriously lowered. Because of this possible change, the growth rate of new 529 plan users has decreased to 4% from 22% in 2002. Speculators estimate that congress may make the tax-free withdrawal benefit of the 529 plans a permanent part of the plans, however there is uncertainty over the matter.
When considering whether or not to invest in a 529 plan to save for college, it is important also to recognize that 529 plans are different in every state and have many complicated clauses and benefits that you need to read and understand before you invest. However, for the most part, 529 plans are very helpful and will almost always be beneficial to someone who is saving for college - regardless of whether the tax free withdrawals benefit dissapears or becomes permanent.

Written by: Matt Smith


Sources:
https://uii.nysaves.s.upromise.com/content/programfeatures.html
http://www.nytimes.com/2006/05/07/business/yourmoney/07coll.html

Student Loans: Default Rates Are Soaring

Posted By C. Brown

Defaults on student loans are skyrocketing amid a weak job market for graduates and steadily rising tuition costs.
According to new numbers from the U.S. Department of Education, default rates for federally guaranteed student loans are expected to reach 6.9% for fiscal year 2007. That's up from 4.6% two years earlier and would be the highest rate since 1998.
The situation is mirrored in the smaller private student-loan market. In 2008, SLM Corp. also known as Sallie Mae, wrote off 3.4% of its private loans that were already considered troubled, according to its latest annual report -- more than double the figure in 2006. Student Loan Corp., a unit of Citigroup Inc., wrote off 2.3% of those loans in 2008, compared with 1.5% a year earlier.

To Read More Click Here:

http://online.wsj.com/article/SB124027600001437467.html

Planning Ahead for College

By Daniel Powell

Getting a game plan together before starting college is often a good idea and can be very beneficial to not only your education but your financial health.  A good place to start is looking at all colleges to choose from and seeing which ones are the most affordable.  A way to begin planning for the cost of college is using the ACT Financial Need Estimator.  The tool can help you to more effectively plan on meeting your college costs.  The tool also shows your eligibility for federal aid.  There are also a lot of savings programs and tax credits that need to be looked into to help determine the real cost of college.

When people do not plan ahead, many get trapped into still paying on their student loans while attempting to pay for college for their kids as well.  Another thing to remember, especially if starting to plan on how to pay for college for a young child, it must be remembered that educational expenses are increasing at an alarming rate.  It it estimated that the cost of an education for someone who is currently 2 years old to attend a private college will be nearly $400,000 by the time they are ready to go to school.

Other than in a financial sense, students need to start planning earlier in High School on what colleges they may want to attend.  Many wait until their senior year to try and make the decision.  The problem with this is that many colleges have specific admissions requirements.  Other colleges have specific ACT and SAT requirement scores to be considered for admission.  There may also be an early application deadline which is important to know because some students may be applying their junior year in high school.  If these important facts are not discovered early, paying for college will not be a problem because you may not be attending!

View the Original Articles Here:

Prepare for College: Planning Ahead Pays Off

Planning Ahead for College Will Save You Money Down the Road

Planning Ahead for the Cost of College

The FAFSA and You

By Steven Muller

If you are about to enter or still in college, it's time to start filling out the Free Application for Federal Student Aid form, also known as the FAFSA. The document is the starting point for applying to almost all student financial assistance programs and determines eligibility for federal financial aid. Many schools also use it as part of their application for nonfederal aid. But the form has been so daunting that many students just don't bother applying for financial aid. That's kept 40 percent of college students from seeking financial aid

You should submit your FAFSA to the Department of Education as soon as possible after Jan. 1 of the year in which you're trying to get federal financial aid, though you do have until the end of the academic year to complete it. Also, meet your school's deadline for scholarships and low-interest loans. Federal financial aid includes need- and non-need-based grants, scholarships, work/study and low-cost student loans. When seeking financial aid, first seek free money through grants and scholarships. Supplement that with your income, college savings, and a monthly tuition payment plan. Then look for federal loans for students and parents because they offer low, fixed interest rates and flexible repayment options. Use private education loans made by financial institutions as a last resort. They tend to cost more than federal loans and typically have variable interest rates.

There's money out there to help finance your college education. Don't let paperwork prevent you from claiming your share of it.

Sources:
http://www.ehow.com/how_2197971_fill-out-fafsa.html
http://education-portal.com/articles/Applying_for_Student_Aid_-_Filling_out_the_FAFSA.html
http://ezinearticles.com/?Filling-Out-the-FAFSA&id=1827263

How to Stay on RIght Track Financially

By: Alcides Hoy Jr.

As we slowly approach the end of this coming semester we must start planning for next upcoming year. Many times parents send their children away and don't provide them with the knowledge and tools in order to form the right financial plan. So we don't lose our minds financially we must consider a few options in order to live good in college. First you want to get some estimates of your possible expenses so you could guess about how much money you will need. The more time you have spent in college, the easier it will be to start the estimate process because you will already have a sense of what how much you spend. If you plan on getting a job or have one already set a standard amount of hours you will work in order to make a set amount of money weekly. If you sense that you spending habits will get out of control try to work more hours in order to support your habit. Secondly if needed get a credit card or set aside an account strictly for emergency just in case money isn't coming in. Many people don't realize how quick something negative could change everything. And lastly get a timetable to figure out exactly when during every month you will need to pay certain bills.

http://money.cnn.com/2003/08/01/pf/college/school_moneytrouble/index.htm

http://money.cnn.com/2002/12/10/commentary/everyday/sahadi/index.htm

http://www.bankrate.com/brm/news/sav/20000814b.asp

Paying for College: What to Do with a Tanking 529

Copied and Pasted by Jeffrey Kam

Buoyed by a run of good news in the stock market, I recently decided to check the balance in my son's 529 college savings account for the first time in many months. To my dismay, the account was still down some 40% from a year ago, far below the amount my husband and I had originally invested. Given the extent of the losses, I couldn't help but wonder: would it make sense to just ditch this thing? (Read "Investing in a 529 College Savings Plan.")

I'm sure I'm not the only one contemplating this question. Named after section 529 of the Internal Revenue Code, these plans can be a terrific tax-advantaged way to save for college, but many of these accounts have been seriously thwacked in the bear market. As of Feb. 28, half of 529 portfolios had one-year returns of -30%, and a third had returns of -40% or less, according to Morningstar, which tracks the performance of over 3,600 plan portfolios. In some cases, 529 investors may not have been well informed of the risks. On April 13, the state of Oregon sued the managers of its 529 plan, OppenheimerFunds, alleging that Oppenheimer took too much risk with its "ultra-conservative" and "conservative" portfolios, alleged mismanagement that Oregon claims resulted in a $36.2 million loss for 529 plan investors. (See how students are paying for college.)

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3 tips for College

Posted by Amina Isakovic

In an appeal to parents reeling from steep losses incurred in their 529 savings plans, several states are offering safer, government-insured investment options like savings accounts and CDs. But going the "safe" route may not be worth it for many college savers.

On Wednesday, Utah launched an FDIC-insured savings account in its Educational Savings Plan, becoming the sixth state to offer these more risk-averse investment options. (Each of the states allows nonresidents to contribute to their 529 plans. For more information on the individual plans, see our table below.)

At first glance, the investments sound enticing: With FDIC insurance of up to $250,000 per account this year (normally it’s $100,000), parents who put their kids’ college savings in a savings account or CD can rest assured that the money is protected from market meltdowns. And, with that investment as part of their 529 plan, they still get the benefit of tax-free growth if the money is used for college expenses.

Click here for more.

Ditch That

by D. Babbs

NEW YORK (CNNMoney.com) -- Many college graduates are struggling with heavy student loan debt and steep monthly payments that limit their professional options. But for some, choosing the career of their dreams could actually lift that burden.

Two-thirds of college graduates leave school nearly $20,000 in debt, according to the National Postsecondary Student Aid study. With mounting job losses and unemployment at a 25-year high, those considering changing careers and pursuing passions must weigh the risk of a pay cut.

But now some students can reduce - or even wipe out their debt - just by following their calling. More liberal loan forgiveness programs are adding a financial incentive to working in traditionally low-paying fields.

Under certain circumstances, the federal government will reduce payments, and ultimately forgive all or part of an educational loan for those who choose a career in the military, volunteering, teaching or practicing law or medicine in low-income communities. And some may even be able to reduce their payments, based solely on their income and family size.

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what to do about college tuition

By Po-cheng Huang

For some parents, their children, despite all other wonderful things about them, are black holes for money especially when it comes to paying for college. Ordinary American on average has $40000 of annual income and take home about $35000 in cash. The top colleges in the U.S. cost about $45000 per year all together. So we are looking at about 8 years of take home income without spending anything, not even living expenses. This is serious money that we are talking about and when many suggest investing, just look at those who got hit hard by the financial crisis, even financial products rated AAA can fail proved there are risks associate with whatever you invest in. So what should you do? Just let the child take the loan and carry that debt himself? For you, that will be the best solution for you financially if paying for the child’s college gives you a headache or else, just don’t even let the kids go to college if you can’t afford it or let a child goes to college knowing he can’t finish at the top. The way I look at this is don’t spend beyond your budget, especially not to raise debt, and should only borrow for investing purposes knowing the return will far exceeds the debt.

Reference
http://www.scholarships.com/Why-Students-dont-go-to-college.aspx
http://www.bankrate.com/brm/news/Financial_Literacy/Sept07_college_poll_results_a1.asp?caret=60a
http://www.thatonecaveman.com/2008/08/dont-pay-your-childrens-college-tuition-if-you-want-them-to-succeed.html

Even More Creative Ways to Pay for College

Submitted By Daniel Powell

The original video can be seen HERE

Obama Budgeting for College

By Steven Muller

Here's what's perhaps most unusual about President Obama's big budget proposals for higher education: That he's thinking about higher education at all. Delineated in a handful of brash proposals Thursday, Obama's plan to make college more affordable and within reach of more students represents a break from the approach that President Bush took — he focused much of his energy from Day 1 on improving K-12 education, most notably with his signature No Child Left Behind law.

"It was unusual for President Bush to make higher education a significant part of his budget," said Terry Hartle of the American Council on Education, a lobbying group for college presidents. "President Obama has made this a very substantial part of his first budget." Education, at both the K-12 and college level, was a huge beneficiary of the $787 billion congressional stimulus, accounting for about $106 billion. So a $5.3 billion increase, as Obama wants for education spending, is largely symbolic this year. But Obama proposes significant changes that advocates say could benefit students in the long run.

Click Here to Continue Reading

College Tuition Rising As Economy Sinks

Posted by Po-cheng Huang

How to Pay for College

By: Jeremy Radnor

David Rochon, president of UPromise, gives tips on how to save for a college.

Link:

http://www.youtube.com/watch?v=cjWo27QWGLw

How to Pay for Your Degree

By Alcides Hoy Jr.

You've been waiting for this moment for nearly 18 years: Your baby is almost ready for college. Your finances, not so much. The market's protracted free fall means that your college fund is now worth just a fraction of what you need. Your home's value has no doubt dropped sharply too - no help there. The only thing that keeps going up, you guessed it, is college tuition. So it's goodbye, Dream School U., hello, Central State, right?

Wrong. While there's no denying times are tough, you have more options to help pay for that BA than you think. From targeting the right schools to taking advantage of new financial aid rules and tax breaks, you can get the price to a manageable level. These steps will ensure your kid ends up at a great school you can really afford.

1. Use your savings strategically

The typical 529 college savings plan of a high school junior or senior has dropped 12.5% in value over the past year. And if you didn't invest in an age-based portfolio that automatically shifted into safer investments as your child got older, your losses may be far worse. The big question before you: Should you try to hold off withdrawing money from the account to give your savings time to bounce back?

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Pay Less for your College Education