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.

Source 1

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Source 3

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:
Source 1
Source 2
Source 3

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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