Student Satisfaction with Financial Aid

It always good to get current students’ perspectives on topics at any college that you visit.  How happy are students with the financial aid system at this school? Obviously, you might not get a reliable answer from the school, so ask current and former students (try using Facebook and MySpace college discussion pages). The Princeton Review does offer a ranking of 20 schools with the happiest and unhappiest students about financial aid, but you’ll want to find out about other schools too.

Paying for a college education has become an overwhelming feat for many students and their families, and the more information you have about a school’s bottom line, the better. Asking questions on campus of current students will give you a better sense of the “big picture” when it comes to what a school will really cost.

Mary Linkhurst, a senior last year from Elkton, MD, was a 3.38 student and did well throughout her schooling career. She did a lot of research on colleges that she thought were good matches for her and her major.  Once narrowed down to 14 schools, it was time to choose and send in applications.  The one aspect that she didn’t research was; how much in financial aid each college awarded to students that demonstrated need.

Consequently, the seven schools that she finally applied to were good choices, in that she had 3 colleges that she considered safety schools, 2 colleges that were middle tier schools and 2 colleges that were reach schools.  The only problem is that six if the seven schools didn’t meet most of her financial need, meaning that Mary’s parents were going to have to come up with much more money than her Expected Family Contribution. With her sister going to college in three years, Mary and her parents were facing hundreds of thousands of dollars in college costs. A situation they could not afford nor was a lender going to let happen. It was a mistake that most people make when they search for colleges to apply to: Not knowing how much need is met and of the need that is met, how much comes in grants and scholarships versus loans.  

Too many students apply to schools, get their hopes up, and are thrilled when they get accepted only to realize the crushing reality that the college doesn’t offer enough or the right kind of financial aid making the actual cost well in excess of a family’s budget.  This is a waste of time, money and in Mary’s case; a catastrophe because she got wait-listed at the college that was affordable devastating her and putting her entire future in jeopardy.

“It doesn’t have to be that way,” says Terrence Garvey from Tuition Solutions.  “Your college selection must take into consideration the amount you will ultimately spend- not just a student’s criteria.  College selection is a calculated decision.  Let’s face it; it’s a $100,000+ decision that a high school child is expected to make with absolutely no experience. I’ve seen schools picked by students based solely on a football team mascot.”

“Long before you apply, there is work to be done,” he continued. “First, you have to calculate your EFC. Then you need to dig up the closely guarded information of 1-how much need the college typically awards to a student with a similar EFC, 2-how much of the award comes in loans and 3-how much comes in grants, scholarships and tuition discounts. Otherwise, your child could have devastating results from huge student loan debt (that experts now claim does not justify the profession’s income) to dropping out –which, by the way, is the number one reason children don’t graduate- lack of money,” Garvey says. 

He states that high school guidance counselors, although well trained in college guidance, can’t give financial aid advice to students or to parents and assemble college lists based exclusively on a student’s merit and personal criteria, not financial responsibility. 

“The lists are good to begin your search,”  he says, “but this is only a starting point. Unless you are prepared to write checks totaling $100,000 and up, it is imperative to learn the process and the facts for each school or you will be wasting money or possibly ruining your child’s future and/or your retirement.” 

Terrence Garvey is a published author and leading expert on college selection, funding and financial aid.  He is the featured speaker for the 15^th annual College Selection and Funding Night hosted by the Towne House in Media on Tuesday, 9/ 21 and Thursday, 9/23 at 7PM.  The seminar is free but because of limited seating, reservations are required. For more information, call: 610-357-6012 or e-mail to tuitionsolutions@comcast.net

Student Credit Cards

From helping you build your credit to giving you a fallback for financial emergencies, college student credit cards can be a valuable resource when you’re away at school and on your own.

Whether your car suddenly breaks down on your way to class and needs emergency repairs or you’re looking for grocery money to tide you over until you get your student loan check, a student credit card could be the back-up you need to keep you from ending up financially stranded.

Of course, you want to be smart about how you use those college credit cards. The last thing you want to do, especially when you have tuition and college bills to worry about, is rack up tons of credit card debt that you can’t pay off. But as long as you manage your credit card use wisely and responsibly, college credit cards and prepaid credit cards can be a good way for you to start building a solid credit history.

I reccomend the Discover Student Card.  After yers of research, I found them to be not only competitively low in the interest rate but very accessable and dependable for students.  Click on the icon to the right and get yours before you leave for school.

There are a few strategies that can be employed if you know the system and start in plenty of time.  Check out my Divorced/Seperated web page by clicking  here

The average full-time student at a U.S. four-year college only “hits the books” about 14 hours per week, according to recent research — down from the average of 24 hours that most students spent in the library studying back in 1970… and 16 hours less than what most colleges and universities declare that you really need.

The dramatic decline in study times occurred for both kinds of students – those who worked and those who did not.  And that takes into account all four-year colleges of every type, degree structure and level of selectivity.  So, the way I see it, it only cuts into your beer pong applied science and research time when you have to dedicate some otherwise down-time to a job. 

You won’t be hurting your grades if you come up with a part-time job that actually pays a few bucks to help with your expenses.  A job could put you into the real world and give you an incentive to study because if you don’t graduate, your chances of getting a better paying job- with all of the competition out there- looks like, well, slim to none.

So, it’s my opinion that you probably should find a job that doesn’t interfere with your schedule.  The many benefits outweigh the few detriments.  Here are  a some justifications that come to mind:  First, as a parent, I know it will take up some of your down-time and lessen the chances of getting into trouble….which can happen to anybody- 2) You’ll have extra cash in your pocket, which is good for obvious reasons- 3) As any mature, hard working parent will tell you, there are always lessons to be learned in life and helping to support yourself and working while you are in school not only give you a sense of accomplishment but the duties your employer has you preform might even teach you a talent or  two that could come in handy some day.

Terry

College students cash-strapped by the high cost of textbooks can now rent from Barnes & Noble’s college textbook division.

The world’s largest retailer said Monday it is expanding a pilot rental program it tested last year at three colleges.

The service will be offered on 25 campuses that have Barnes & Noble bookstores, including the University of Maryland. Students can order directly from their bookstores or order online and pick the books up at the bookstore.

Renting will save students as much as 50 percent than if they were to buy the textbooks. Renting textbooks has become popular as the cost of textbooks has skyrocketed in recent years.

Both domestic priorities came in one bill, pushed through by Democrats in the House and Senate and signed into law by a beaming president.

The new law makes a series of changes to the massive health insurance reform bill that he signed into law with even greater fanfare last week. Those fixes included removing some specials deals that had angered the public and providing more money for poorer and middle-income individuals and families to help them buy health insurance.

But during an appearance at a community college in suburban Virginia, he emphasized the overshadowed part of the bill: education.

In this final piece of health reform, Democrats added in a restructuring of the way the government handles loans affecting millions of students.

The law strips banks of their role as middlemen in federal student loans and puts the government in charge. The president said that change would save more than $60 billion over the next 10 years, which in turn would be used to boost Pell Grants for students and reinvest in community colleges.

“I didn’t stand with the banks and the financial industries in this fight — that’s not why I came to Washington — and neither did any of the members of Congress who are here today,” Obama said to a supportive crowd at Northern Virginia Community College. “We stood with you. We stood with America’s students.”

Private lenders still will make student loans that are not backed by the government, and they still will have contracts to service some federal loans. But the change reflected in the new law represents a significant loss in what has been a $70 billion business for the banking industry.

Among many other features, the new law is expected to make it easier for some college graduates to repay loans.

The government will essentially guarantee that workers in low-paying jobs will be able to reduce their payments. Current law caps monthly payments at 15 percent of these workers’ incomes; the new law will lower the cap to 10 percent.

About half of undergraduates receive federal student aid and about 8.5 million students are going to college with the help of Pell Grants.

Obama was effusive in his praise for the lawmakers who stood by him on the health care and education legislation. Many of them face tough sells in their home districts over the massive health care legislation, a complex mix of crackdowns on the insurance industry, coverage expansions and insurance mandates.

He was introduced by Dr. Jill Biden, the vice president’s wife, who teaches English there.