Is College Worth the Expense?

When a former United States Secretary of Education questions the value of a College education, people take notice and start talking. This is exactly the question posed by William Bennett and David Wilezol in their new book, “Is College Worth It? A Former United States Secretary of Education and Liberal Arts Graduate Expose The Broken Promise of Higher Education. “

Bennett and Wilezol both agree that College is definitely worth it, but it’s not for everyone. The authors’ cite the cost of a quality education as well as the 50% unemployment rate for 2011 graduates. Similarly, Peter Thiel, one of the original investors of Facebook, believes that too many colleges are churning out more College graduates than our economy can handle.

The statistics are upsetting. A recent study showed that 45 percent of College graduates could not think or reason critically on complex issues. In addition, the study found that they did not learn any worthwhile writing skills in their first two years of their College education.

There is no doubt that the cost of  College education is a cause for concern. Students are burdened with heavy student loans and the default rate on these educational loans is greater than ever. And the cost of education rises every year. Cost of a college education is increased 1100% since 1978. Today, one out of ten students will graduate with a student loan of $40,000 or more.

So, how can parents and prospective College students make the best decision as to whether College is right for them and how can they best minimize College costs and maximize their employability at the end of their College career?

Students should make a firm commitment to attend class and complete their degree on time

The statistics of Student loan default rates and excessive Student loan amounts are skewed as a result of Students that do not take their college career seriously and have not given serious consideration to whether they should have started College in the first place. Twenty nine percent of all students who take on student loans eventually drop out. This percentage has grown 25% in the last decade.

Less than 40% of College students graduate in four years. Fifty three percent of all Students graduate in 6 years. The extra two years in College substantially increases students’ total student loan amounts. A commitment and schedule, on the student’s part, to graduate on time would not only decrease a student’s overall loan amount, but would also mean that the student has a higher likelihood of graduating college since they will be closer to their goal.

Choose a degree plan that will serve you well into the future

We live in a different world today. With technology and the internet changing our lives daily, students should consider where the world will be in 10-20 years in deciding on their degree plan. There was a time when a student could simply study liberal arts and she would be sure to find a job. Now, with an abundance of unemployed graduates, a student should give considerable thought to her career plan.

A highly thought out degree plan will also serve to lower a student’s overall cost of education. Switching majors while in college can add years to a student’s eventual graduation date.

College is a costly commitment. Treat it as one.

Similar to a house or car, a college education is a costly expense. And just as you have to maintain a house or car, students should make a similar commitment to put the extra effort into their college education. Student should take classes that not only will allow them to graduate but also to learn things that will help them in their later career and life.

Students should also regularly attend class. After all, they are paying for this privilege. Students who are only looking to get that degree at the end will, at best, only have that degree. Students who put their heart and soul into college will come out of college a well-rounded individual who will be sought after by future employers.

A College education is still very much a worthwhile goal in 2013 as long as both parents and students sit down and establish long term academic goals. Costs can very much be minimized utilizing these goals. And with these goals in place, a student will be an employable asset for the rest of her working career.

Kimberly Lawson. Kimberly Lawson is the director of marketing at www.Boostapal.com.  Boostapal is a website where teenagers earn money when their family does their everyday shopping online.

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Scholarships and Tutoring for Military Children

The child of a military serviceman or woman spends months or years apart from a parent who’s serving the country. In order to lessen the burden that military families bear, there are military dependent scholarships available to children of service members — and educational assistance isn’t limited to college-age students either. If your child has a parent in the military, take advantage of the resources available to get your child the best education.

G.I. Bill

If you or your spouse has served at least 10 years in the military, you can transfer some or all of your G.I. Bill benefits to your dependent children. Remember that children are still considered dependent until the age of 26 if they remain unwed and are enrolled full-time in higher education.

Students must be at least 18 and have completed high school or earned a GED before they can take advantage of their parent’s G.I. Bill benefits. The serviceman or woman is essentially sharing the benefits; they can either use some of the benefits for themselves or for a spouse and some for the child, or they can give all of the benefits to the child. The parent does not have to be on active duty for the child to be eligible.

Army Emergency Relief

The Army Emergency Relief Dependent Children Scholarship is a need-based program; however, the parent need not be on active duty for the child to qualify. The child must be at least 18, unwed, and enrolled in an undergraduate program, an associate program or an accreditation program. If the child gets married after receiving the benefits but before the school year for which the benefits were awarded ends, he/she may lose the benefits. 

The Army Emergency Relief program is also open to children of deceased members of the military, whether or not they died while on active duty. The child must maintain a 2.0 GPA or better while receiving the benefits.

Private Scholarships

Individual institutions and private organizations alike provide financial assistance for children of active servicemen and women, as well as children of veterans and deceased servicemen and women. Contact the office of student financial planning at the school of your choice to discuss your options.

Financial counselors at your school may also be able to direct you to nationally based scholarships, such as the Folds of Honor Foundation and the Freedom Alliance Scholarship Fund. These organizations specialize in providing scholarships to children of servicemen and women wounded or killed while on active duty. Active-duty military parents may also qualify students for scholarships provided by organizations such as the ThanksUSA program.

Tutoring

If your child is still in elementary, middle or high school, you might not yet be concerned with college scholarships, especially if your child is struggling. Tutoring can help. Many schools provide free tutoring, but professional tutoring centers that can give your child the kind of intense, one-on-one education they may need to succeed often provide free or discounted tutoring to military families. This tutoring can take place either at the tutoring center or even online, via video chats and interactive online lessons. 

You may already be overwhelmed with your service or your spouse’s service, so if your child is struggling in school, don’t be afraid to take advantage of professionals who are willing to help you at no charge or at little cost. Foundations such as the DoD MWR Library Program, the Navy General Library Program, the Yellow Ribbon Reintegration Program and the Army General Library Program work together to sponsor children of military families via these tutoring centers.

Remember, both the military and private organizations are willing to help dependents of military servicemen and women, so be sure to take advantage of this assistance for your child. The assistance isn’t limited to higher education scholarships, so even if your children are years away from college there are resources available, all you have to do is apply.

About the Author: Aubrey Fooks is a contributing writer and former military brat. She currently works in the office of student financial planning at a state university.

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FInance Tips for College Students and Their Parents

The price tag on a college education is a key factor for many parents. It is also one of the main elements of a long-term planning process for one's financial security. A college education can be an extremely valuable resource, as well as a rewarding experience, but it can also be very expensive; if students and parents do not plan the financial aspect of college carefully, they may wind up jeopardizing their financial future.

Occasionally parents find it difficult to pay the college tuition for a single child. The whole situation gets worse when they have multiple children. Under such conditions, one has to be properly educated in certain topics of personal finance to overcome the obstacles and send one's children to college without any worries. Read ahead to understand some tips that may be useful in accomplishing this goal.

Applying for financial aid

About two-thirds of all college students are eligible for some forms of financial aid, and this enables a family to spend less on college education. The aid is usually provided based on the family's income level. There are even times when family with an annual income of more than $100,000 can be eligible. In order to receive financial aid, the student should fill up the FAFSA (Free Application for Federal Student Aid) forms to apply for financial aid.

Financial Education

As a parent, it is very important to educate one's kids on topics in personal finance. Being able to manage one's personal finance is going to be useful during a student's academic career. Parents should also make sure that they have enough resources for their children's continuing education. With some concepts in personal finance, a student is able to utilize the money in the right way. In addition, teaching one's children to balance their checkbooks will also be of great help. It is important to teach your kids to be responsible when they are using a debit or credit card for the first time. Understanding the advantages and disadvantages is going to be very helpful for the students. This tactic also helps the parents stay in the safe zone.

Tips for parents

It is a bad idea to allocate savings for one's retirement for the college tuition of one's children. If one is in a situation where it is becoming increasingly difficult to cover the expenses with one's regular income, it is a good idea to take a look at Stafford Loans, Parent PLUS Loans and other student loans. This helps protect a family's financial security for the long term. Also, it is advisable to look at other assets that are available to meet the expenses associated with a college education.

It is also important to check for expenses that emerge during the first semester. By recording the amount of money the students spend, parents can make sure that their children won't run out of money after the first month of college. As the students should have some prior knowledge in personal finance, the whole process should not be tedious for the parents. Families who have multiple children can consider sending them to college all at once. This removes the need to pay for multiple tuition bills, and it lowers the contribution as a whole. Parent EFC takes into account when one's children are attending college. For one dependent, if the EFC is $40,000, the same amount will be split when there are two children who are attending college. As a result, the total number goes down as a parent no longer has to apply for another EFC.

In most colleges, students have the chance to work while completing their educations. As they work through their schooling, they get to understand the importance of good money management and are more likely to spend their money more carefully. Finally, it is also advantageous to take out student loans early in a student's academic career. A student who faces the prospect of debts takes his or her courses and responsibilities more seriously. As it creates a sense of urgency, this procedure reduces the overall cost of college expenses.

This article was written by Karl Stockton for the team at Kanetix. If students need help with other financial issues, such as new mortgage rules, Kanetix can be of great value.

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Students Told to Empty Their Pockets

--> Generation of Students Told to Put Hands in their Pockets  

So school fees have become an election issue. Obama was even ‘slow jamming’ on the topic last week on the Jimmy Fallon show. It is an issue for Republicans too. The threat of interest doubling on federal student loans in July has seen rejection from both parties, though they differ on the detail.

The issue is hot but not just because there are voters to win over. Debt has always been problem for graduates and Obama for one says he remembers leaving college with a ‘mountain’ of it. The existing problem has been made worse because the two traditional sources of funding (state/federal contributions and tuition fees) are both facing downward pressures in this economic climate. Add to that the general negative economic backdrop and you have a situation where student loan debt has exceeded a trillion dollars!

If your grades and teachers are indicating that you are a potential college student, how on earth are you going to get through a three, four or possibly more-year course? Most parents have not been in a position to be stashing away funds for as long as would have been necessary to fund the current cost of a college education.

Given the fact that, on average graduates with a bachelor’s degree earn 45% more than non-graduates, studying still might be the right financial decision. The fact is that you need to do your homework, both while you’re still at high school to keep up your grades and while you’re looking for funding to make sure you know about what is on offer. So what are the options?

Grants

Grants don’t have to be paid back. College offer their own grants with various criteria but also various federal grants are available, such as the Pell Grant and Teacher Assistance Grant. Whether you qualify to apply and the amount of the grant varies according to individual circumstances.

Scholarships

Scholarships are the only ticket for some people to study at the college of their choice and, like grants, do not have to be repaid. Those provided by colleges usually have to be competed for and are won on the grounds of factors such as academic achievement, musical or sporting talent, personal background and so on.

You might also be associated with an organization that awards scholarships. Awarding bodies range from church bodies to the company that one of your parents might work for. If you qualifying to make an application for one of the many scholarships available, the key to winning one is to make sure your form is filled in well and gets in on time.

Loans

Sadly, this is the way most students have to cover a lot of their fees. Federal and private loans are available to students. Federal loans include the Perkins and Stafford loans and are likely to be relatively friendly with low interest rates and high flexibility. In some cases the interest is subsidized, which might mean it is paid for you while you are still a student. Private loans, being more expensive and less flexible, are available to those for whom other avenues may have failed and options should be researched thoroughly.

Part-time work    
                
To help pay your way or to chip away at any loans during college, you can find a job. If you are lucky it might be relevant to your study programme. Alternatively, you might be able to sign up for a programme like the Federal-Work Study programme, which aims to provide undergraduates with work that serves the community or is along the lines of their studies. It pays at least at the minimum wage, possibly on campus or is otherwise based off campus with a public organization or non-profit organization that works in the public interest.

Subject

Not all degrees are likely to bring high wages. Many graduates will still share part of that trillion-plus debt for years and be buying cars by the month rather than in one payment and find it difficult to secure a mortgage deal as a consequence of their high debt load. Remember though that the subject you chose and how hard you study will have a great bearing on your earnings on the other side and how quickly you free yourself of any debt. While you are deciding on a programme of study, you might want to take a look at the job market, speak to professionals and read around to see what’s out there for people who take your path. Graduation will come round sooner than you think! 

Janine Hardy is a freelance writer from England who specializes in life coaching and self improvement writing for a number of local publications. She works with many good causes including helping and advising students at local colleges and writing on behalf of an alcohol addiction center.

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Finding Scholarships for College

The Unigo Expert Network is a group of top education experts from across the US answering questions submitted by students and parents about college admissions and succeeding after high school.

See answers from the Dean of Admissions at University of Illinois, VP of The College Board, and have your questions answered at www.unigo.com/expertnetwork  

“I want to help my parents out with my tuition by landing as many scholarships as I can.  Where should I start, what do they usually require, and what are some crazy scholarships you know of?” – Aimee N., Baltimore, MD

A: Searching For Scholarships Takes Time and The Will To Do The Work
Apply for as many scholarships as you can. You need to be willing to make time because there are required essays, forms to complete, deadlines to be met, and recommendations that must be sent. Fastweb.com, Finaid.org and Scholarshipexperts.com are two reliable websites where you can begin your search.  Scholarships are available from private corporations to community organizations. Students should check with the financial aid offices at their colleges of interest to see what scholarships are available through that school. Sometimes, essay prompts are similar so you may be able to reuse one strong essay.

Jeannie Borin – Founder and President, College Connections

   
A: Want lower tuition? Look for colleges looking for you!
Some colleges award generous scholarships or “merit aid” to entice students to bring them something they want. For example, look for private colleges far from your home that have a large percentage of students from their regions—you can contribute to campus geographic diversity. Grades and test scores above or near the top of the school’s averages (which might be lower than you expect) may bring big tuition discounts along with an acceptance letter. In some cases, merit offers reduce private college tuition to near the cost of in-state tuition at public universities; so don’t be afraid to apply!

Stephanie Meade – Owner, The Collegiate Edge

A: Look locally and identify your best matches
My first tip for maximizing your scholarship search is to look locally. Visit your high school college center to get a list of local scholarships. Local scholarships have much less competition than national one's. While their dollar amount is sometimes less, the likelihood of receiving them is far higher. Also, when looking for scholarships, take some time to identify your best matches. Look for scholarships that reward your strengths. There are scholarships for almost everything including: academics, talents, interests, cultural background, religion, etc. And remember to think outside the box. I have heard of scholarships for exceptionally tall students, best duct tape prom dresses and students with specific last names.

Kathryn Favaro – Independent College Admissions Counselor, Favaro College Counseling

A: Scholarships reward what a student has done—perform and they will pay
In looking for scholarship money, one must first distinguish between the school sponsored ones and those sponsored by outside groups or organizations. Concerning the outside sources, to avoid a scam remember the general rule: if you need to pay them, they won’t pay off for you.  Meanwhile, school sponsored scholarships are the most common form of merit scholarships.  To earn them, the best thing a student can do is maximize their academic record and test scores.  Schools will reward those efforts in part because those measureable attributes help the school enhance their profile and serve as valuable marketing data. 

Bill Pruden – Head of Upper School, College Counselor, Ravenscroft School

A: Use Several Resources and think BIG!
Start with the mindset that you will need to think big and use several resources, books, websites, and personal connections.  In brief, winning scholarships requires insight, the right match between student and scholarship source, and attention to detail.  And, in terms of extra-ordinary scholarships, here’s a short list-there are more! For twins and more: http://www.twinstuff.com/college_scholarships.html, for the aspiring chef: www.theculinarytrust.org and for students interested in the study of language (really!): Klingon Language Institute, www.kli.org/scholarship

Jill Greenbaum – Founder, MajorInYou.com

   
Don’t miss answers by the Dean of Admissions at University of Illinois, VP of The College Board, and more – at www.unigo.com/expertnetwork.  To send your question to our experts, visit www.unigo.com/expertquestions

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