Category Archives: financial aid

college guidance, college majors, college planning, financial aid

Why engineering degrees are still worth the resources

engineering degrees

 

There is a great deal of cynicism about the value of a collegiate degree these days, as unemployment soars and many people, even those with higher-level education, find themselves unable to find meaningful work.  While an English or Theater degree may be less valuable than the student would have hoped for, the good news is that an engineering degree can be worth every penny put into a person’s education.  The number of engineers in today’s society are far lower than the current demand for their services, making it not only easy for job placement, but also for picking and choosing where you would like to work.

The Money Talks

The National Association of Colleges and Employers suggests that there are few degrees that are more valuable to a student than engineering itself.  Four out of the five highest paid majors go to engineers, with petroleum engineering topping the scales at an average paycheck of one hundred thousand dollars for an entry-level position!

While a degree in computer engineering does not pay six figures, it is still possible to earn over fifty thousand dollars per year upon graduation.  What’s more, this value is sure to increase over the course of an entire career.  For a person who works for forty years, an engineering degree will provide half a million dollars more in salary than a person with just a high school education.

The Reason For the Pay

Why are engineering degrees and educational paths so much more valuable than other professions?  The answer is simple; it is a case of supply and demand.  Fewer and fewer students are going into engineering in all forms, with only five percent of all graduates holding these golden degrees.

In the United States, this imbalance is especially profound.  Other industrialized nations like Germany and Japan suffer from far more competition, with as many as one third of all students graduating with engineering degrees, but in the United States this particular career path is much more rarely taken. Engineering jobs are continually becoming available worldwide, such as the number of jobs that went into engineering at the Olympics every four years.

How Much Should You Pay For a Degree?

If you go to a major, well-respected technological university, you could realistically expect to pay about two hundred thousand dollars for a five-year engineering degree.  This kind of debt can keep a person in tuition bills for much of their life, even if their highly regarded degree gives them favorable job placement for a firm.  For a state school, however, you may pay only about ten thousand dollars per year for tuition (that figure is about double for out-of-state tuition).  This figure, however, does not include books, housing, fees, or other sums like parking.

How to Pay For the Education

Student loans have now eclipsed credit card debt as the number one source of owed money in the United States.  For those who want to pursue a degree in engineering, it may be necessary to take on significant debt in order to pursue a high-profile career.  For those who want to start a career, move to a new city, or purchase a house, it may be extremely difficult if they have several figures worth of student loan debt.

It is far better to get a type of aid for your education and reduce the payments as much as you are able to over the course of your schooling.  Since nearly all engineering degrees require five years of study, the financial commitment is even greater.  The good news is that the final year is usually spent in a co-op program where the student will earn money, so that it is not always necessary to take out loans for the final year of schooling.

___________

Author Bio

William Stevens is a blogger who creates informative articles relating to engineering. In this article, he explains the financial situation around a degree in this field and aims to encourage continued study with a  master of engineering in civil engineering.

college guidance, college planning, financial aid, parenting

The best tax breaks for college students

images-3As a parent, you have a lot of knowledge and experience that your kids in college still lack. And when it comes to taxes you are light years ahead of them. Even if you’re not a tax expert of some sort, chances are good that you know the basics, such as when taxes must be filed in order to avoid penalty, how to file an extension (or just that you CAN file an extension), and how to ensure that you get the most money back by maximizing deductions. However, the college students in your family likely have no way of knowing even these simple facts related to their annual income tax filings. So it may fall to you to do your research when it comes to tax breaks for college students so that you can inform them and ensure that they’re getting all the breaks they’re due.

So what are some of the best tax breaks for students? The vast majority won’t be able to take advantage of mortgage interest payments on their side, and many won’t enjoy the advantages that fall under the “married filing jointly” banner. And while some students work freelance during their time on campus to make ends meet, thus earning them the right to deduct business expenses, this situation might not apply to most students. However, there are a few write-offs related to education that could greatly benefit the college students in your family; but they may need to take advantage of some of them quickly in order to ensure that they aren’t over-taxed.

The Lifetime Learning Credit is a good place to begin because it allows students (and/or parents) to claim as much as $2,000 in expenses related to education (on the stipulation that eligible students earn less than $60,000 annually for singles or less than $120,000 for married couples). However, there are a couple of options that may serve them better. For example, the American Opportunity Credit allows students earning a single income of $80,000 or less per year (or $120,000 for married) to claim up to $2,500 a year for the first four years of an undergrad degree, with a maximum refund of $1,000. Qualifying expenses could include tuition, fees, books, and more. Students may also be eligible for tuition and fees deductions of up to $4,000 per year, although this particular credit is slated to expire at the end of 2013, so students should make sure to use it this year if possible.

Finally, students that begin paying off their loans can deduct any interest payments made throughout the course of the tax year. Since most students don’t start paying this bill until they graduate, it may not apply. But for those students willing to put a windfall towards their student loan debt, up to $2,500 in interest payments may be deducted. Students that take a gap year and work abroad may be able to claim a tax rebate when leaving the country. But if they travel abroad through a school-run program they will likely continue to pay tuition to their institution of higher learning stateside, making them eligible for the tax breaks that will give them the best chance to come out ahead financially.

college guidance, college planning, financial aid, scholarships

Thinking about student loans?

images-1As college bound teens are thinking about college social life, and perhaps their preferred courses and the subjects that motivate them, parents are often thinking about how to afford the combined costs of tutoring, accommodation, food and study materials. Student loans are usually part of the funding equation and it pays to do some investigating in advance of the time when the money is needed to be able to take advantage of the best interest rates available. Here are a few things to be mindful of when checking out the possibilities for financial aid.

Free money

In some cases students may have access to ‘free money’ – grants and scholarships that are non-repayable – and these should always be investigated first. In fact, there are many thousands of scholarships and grants available through universities and colleges, state and federal governments and other organizations, both public and private. Usually, private organizations and schools award scholarships, while governments provide grants, although some schools also provide grants. An Internet search will normally yield a number of possible sources, and reveal whether a prospective student is eligible for financial assistance.

Choosing the best loan

Once any grants or scholarships and any other types of financial aid have been taken into account, parents and prospective students are in a position to work out the requirements for a student loan. Here again, it is worth looking around for the best deals. For example, some lenders offer competitive rates for courses specific to a career, such as business administration, the health profession or law. The best institutions will lend up to 100 percent of college costs, offer both fixed and variable rates, have zero origination fees and require no in-school payments. In some cases, for example with certain law school loans, the lender will provide a reduction in the debt when automatic repayments are made from a bank account, and may also offer a reduction on successful graduation – read more information about law school loans by clicking here. 

Tips and advice

Parents and prospective students will benefit from working out a strategy to enable them to handle student loans wisely. Establishing and maintaining good credit for young people is an important starting point as this will often be used to make decisions about loans and other types of finance throughout their lives. To reduce student loan costs, one option is to prepay loans. For example, if a loan covers all the student’s costs – living expenses as well as tuition fees – and the student gets part-time work while at college, the additional money could be used to make loan repayments early. When making repayments, students should be encouraged to pay promptly and on time, as penalties for late payment will be reflected in their credit rate.

As well as taking advantage of any rewards offered by the lender, students or parents may be eligible for tax deductions if they have paid eligible student loan interest. A tax advisor will be able to offer guidance and the IRS website is a good source of tax information.

college costs, college guidance, financial aid, parenting

How much financial support should you provide for your college student?

 

 

imagesIt is estimated that by the time a single child reaches the age of 18, his parents will have spent approximately $300,000, according to the U.S. Department of Agriculture (which releases annual reports on family spending). And that doesn’t include the cost of college. Of course, this report factors in housing, childcare, food, transportation, healthcare, and a number of other elements. But it comes out to about $13,000-14,000+ per year in expenses for a child in a median-income household (earning roughly $60,000-100,000 annually in taxable income). Unfortunately, your costs don’t end when your kids head off to college. In fact, they could increase significantly. You’ll still have to pay for your own home, car, food, and more, but you’ll also be on the hook for additional living expenses for your kids since they are no longer at home, not to mention tuition, books, fees, and other costs associated with college – unless of course you decide not to pay.

In truth, you have no onus to pay for your kids’ college education. However, most parents feel that it is their duty to ensure that their children attend college so they can start a career and realize their full potential on a professional level rather than toiling away at the dead-end jobs that high-school grads are often relegated to. In short, many parents want to set their kids up for the best chances in life, and that often includes the advanced education and expanded job prospects that college can provide. But you might not have the money to pay for it all, especially if you have a limited income and a large family, and the truth is that you don’t have to. The only question is how much you should pay.

This figure can be difficult to determine. The government has some guidelines in place, which is why you’re required to submit financial information via the FAFSA(based on previous year’s tax returns) when your kids apply for federal financial aid. They expect parents to take responsibility for at least a portion of the expenses associated with sending their kids to college. However, you can always provide more or less, depending on the needs of your children and your own financial situation. A good rule of thumb, in general, is to offer what you can afford while still keeping your own budget in order. There are a couple of good reasons to do this.

For one thing, it’s important to teach your kids to live within their means, and you can set a good example by doing so yourself. This could mean that your kids end up attending a less expensive institution or living at home so that they can save on living expenses and put that money towards higher tuition costs at their school of choice. Or they might be forced to work a part-time job to pay a portion of their own expenses so that they can attend their dream school. Either way, you avoid financial ruin and your kids learn some very adult lessons. Whether you are able to send them overseas to attend Oxford or they stay home and attend colleges like the University of Cincinnati, the most important thing is that you be honest about what you are willing and able to offer in terms of financial support so that your kids can make an informed decision about their future.

college planning, financial aid

FAFSA time means NOW!

 

February means FAFSA. Parents of teens all across the country are filing out their Free Application for Federal Student Aid. As Jerry Maquire said…SHOW ME THE MONEY. Here’s something every parent needs to know–the money does run out. If you snooze your lose.

financial-aid-FAFSA

Here are 4 articles you should read NOW about filing out the FAFSA:

Got your FAFSA done yet? Here’s why you need to hurry. (from Dr. Strange College blog)

10 Good Reasons to file the FAFSA (from my blog)

6 Ways to Get help on the PROFILE and FAFSA (from The College Solutions blog)

Tools to help you complete the FAFSA (from Education Quest)

If you haven’t done it, time is running out. Don’t wait until your taxes are filed (use last year’s figures if necessary–you can always update the figures once you file). The FREE money goes quickly and you want your piece of the pie.

college costs, college guidance, college planning, financial aid

Website Heads Up: Frugal Dad

frugal dad

When I come upon a website that I think is a valuable resource for parents I like to spread the word. I came across this site: FrugalDad and found it loaded with parent resources. According to the “About” page:

What we at FrugalDad have noticed is that our readers were largely worried about two things in the aftermath of the financial meltdown: their retirements and their kids’ educations. A lot of very smart people are out there offering retirement, investment and personal financial advice. We didn’t want to become just another voice in the crowd, so FrugalDad.com has decided to focus its subject matter more narrowly on issues of higher education and how to pay for it. Although there are other sites that offer advice on the same types of topics, FrugalDad.com brings its own unique voice to the conversation – a voice that has been featured and profiled in the national media ever since it appeared on the scene.

FrugalDad is a blog, news, and research site that aims to inform the public on financing for higher education. The site offers a prolifera of news that can and will affect how families will save and pay for college as well as tips on how to finance an education in a way that makes sense for most people. This site is special because it was created by a father who had trouble financing a university education for his children. Along with life lessons and insights, this blog brings you news and tips that will be beneficial to parents and families with children who are planning to go to college.

Spend a few minutes browsing the site, checking out the blog posts and using their “find a cheap college” search tool.

admissions, college guidance, college planning, financial aid, parenting

FREE “Plan for College” Videos

PlanForCollegeVideos5

When we see the word FREE, we automatically ask ourselves, “What’s the catch?” The promise of FREE usually includes statements like “pay shipping and handling” or “a small subscription cost”. This time FREE means FREE!

My good friend and colleague,Paul Hemphill, is offering to my parent and student readers the opportunity to get his time-honored and valuable video series for FREE. There’s no catch. He’s  doing it because he believes in them and he believes that parents and students need some help with the college process. Paul has sold these videos in the past, but he’s willing to GIVE THEM AWAY to anyone who subscribes to this email link.

http://forms.aweber.com/form/29/616398929.htm

He’s not going to sell your email or contact you about his coaching services. As hard as it is to believe (in this skeptical, not trust anyone culture) there is NO CATCH. Every week, you will receive two emails with video coaching related to the college admissions process. He has unique insight on how to “market” your student to the college and he knows how to get results with this tactic. While counseling clients over the last several years, he has developed this series to share with them during the coaching process. My readers get it FREE!

Here’s what you can look forward to over the next 52 weeks:

  1. Relevance: The videos are topical and address the immediate concerns of most parents and students. By contrast, you will never see a video on how to get into an Ivy League college since the great majority of students will never apply to the Ivys. “My approach”, says Paul, “is not to waste the viewer’s time.”
  2. Controversial: Some of these college admission tips on video are disturbing to colleges, but this isn’t the market for which the videos are designed. Colleges will repel at the suggestion in one video that parents make multiple deposits on the standard May 1 deadline. Another video suggests that a student should absolutely apply to at least 10 colleges.
  3. Short: These videos are no longer than 2 minutes in length; long enough to contain a lot of useful information and short enough to satisfy short attention spans in a fast-pace culture.
  4. Content: The focus is on what will work for both parents and students. For example, a video will suggest what topics must be avoided in writing the college application essay. Or, how a parent can save $11,000 by what a student does with free time.
  5. Humor: It may be in the form of a funny story that drives the point home, or a one-liner, maybe even a facial expression. Introductions to the video’s topic are intended to grab your attention. One video starts this way: “I’m going to show you how to be shallow and superficial in a college admissions office!”
  6. Approach: Each video presents a problem and then suggests a viable solution. Some  solutions are so simple that you’ll conclude you haven’t seen or read about this anywhere else. “My own clients,” says Paul, “are universal in their opinion that these videos are to-the-point and no-nonsense all the way.”
  7. Themes: The easier ways to pay less for college and the easier way to get in. Paul looks for every angle that will make it easier for you to pay for college, and he leaves no stone unturned on some original and creative ways to get into college without appearing brass or slick.

If you still aren’t convinced, listen to all of Paul’s testimonials from current and past clients.

 

http://www.collegehelp.biz/my-testimonials.html

 

What’s the best part? For you, it’s absolutely FREE. And if you aren’t interested or don’t find these videos helpful, you can unsubscribe at any time. I know, however, that you will be so impressed that you will contact Paul to help you and your student personally with the process.

What have you got to lose? The thousands of dollars you will save by watching these videos and FREE help with the college admissions process!

 

admissions, college costs, college guidance, college planning, financial aid

University of savings: financial aid tips

mini college graduation cap on cashBig college dreams have a big price tag. Most students use some form of aid to pay for college. According to CollegeBoard, more than $207 billion in aid is available. From federal loans to scholarship contests, opportunities to knock down college costs appear to those who search. Leave no stone unturned and look into these college aid resources to cover the costs.

FAFSA

With the potential for grants, loans and work-study incentives, the Free Application for Federal Student Aid (FAFSA) is square one when it comes to paying for college. The FAFSA analyzes family financial information through the federal-need formula. Among other things, FAFSA takes tax information into account, so Collegeboard.org recommends filing tax returns before starting the application. However, if your taxes aren’t ready, file with estimated amounts from last year and update with correct amounts after filing.

Aimed at providing a path to college for any student, the FAFSA is particularly advantageous for disadvantaged students, who have a better chance to receive free grants and scholarships.

Students can fill out this lengthy application at Fafsa.ed.gov.

Scholarship Contests

Students with 4.0 GPAs and high SAT scores aren’t the only ones who can take advantage of scholarship money. Scholarship contests offer students an equal playing field to show their stuff. Whether it’s an essay, video or presentation, these performance-based contests highlight talent in any field.

Scholarships.com lists news opportunities in various categories, including minority scholarships, corporate scholarships and even non-academic scholarships. A quick Google News search for “scholarship contests” will return the latest contents and deadlines.

Ask your guidance counselor for additional local opportunities, and explore the internet for the latest scholarship offers.

Student Loans

Free money is preferable, but loans enable students to have a classic college experience even if they can’t pay for it up front. This growing trend in financial aid is putting thousands of students through college and collecting payments from millions. In early January, student loan debt in the U.S. surpassed $1 trillion, according to Foxbusiness.com, and that number is expected to grow even more.

The FAFSA provides opportunities for federal student loans. Sallie Mae bank offers a private option to compete with these government offerings.

Loans can provide a worry-free college experience, but don’t over-borrow and saddle yourself with too much debt. Once graduation comes, failing to make payments can compromise your financial stability. The rule of thumb with student loans–borrow wisely.

Unconventional Aid

Some scholarship opportunities don’t fit into traditional molds. Unique scholarships give students that may not otherwise stand out a chance at college aid. The vertically-challenged student, for example, can take advantage of the Little People of America Association’s scholarship for students 4’10” or shorter. Left-handed students that have had to deal with awkward desks and sloppy writing are in luck, too. The Frederick and Mary F. Beckley Scholarship Program offers money for southpaws who demonstrate leadership skills.

Every student has something unique about him or her. Search for the scholarships that separate you from the crowd.

Work and pay as you go

Many students are choosing to work and pay as they go. High school students work during the summers and save for textbooks and other essentials not covered in tuition. Some students choose the community college route, attending classes as they can afford to pay for them. Other students opt to use the work study program at their college to supplement tuition expenses.

Colleges are recognizing that tuition costs are rising the average family cannot afford to chunk down tens of thousands of dollars at the beginning of the school term. They offer payment plans which spread the tuition out over the school year to help parents budget and pay as they go.

College is in reach if you take the time to research the many opportunities available and use that information to make a college choice that best fits into your available budget. Don’t let financial barriers keep you from achieving your dreams; and don’t let financial barriers lure you into overwhelming debt just to pay for a high-priced college.

 

college costs, college guidance, college planning, financial aid, parenting

It’s FAFSA time!


Here’s a great post from the College Board in honor of Financial Aid Awareness month for parents, reminding all of us of the importance of the FAFSA and how to get ready for submission.

It’s time.

fafsa-on-the-web

The Free Application for Federal Student Aid (FAFSA) is how millions of students apply for federal, state and most college-based financial aid. And because government grants compose 74 percent of this $185 billion pool, it’s understandable for families to feel anxious when filling out the FAFSA.

It doesn’t have to be that way. Susan McCrackin, Senior Director Financial Aid Methodology at the College Board, offers this eight-step map to help parents and students work through the FAFSA as efficiently and effectively as possible.

1. Gather Your Documents 

It is much easier to fill out the FAFSA if you have all the needed forms in hand before you start. Here’s a list of documents to get you going. You should also get a U.S. Department of Education personal identification number (PIN.) Here’s the PIN application link.

2. Think About Taxes

Parents’ taxes are an important part in the FAFSA process. Getting taxes done by February 1st may be unrealistic, so last year’s taxes and this year’s paystubs can help create estimates. After February 3rd, the IRS Data Retrieval Tool becomes available, allowing students and parents to access the IRS tax return information needed to complete the FAFSA and transfer the data directly into their FAFSA from the IRS website. And if you owe the government money, take note: you can complete your taxes without actually filing and cutting a check to Uncle Sam.

3. Find Quiet Time  

The FAFSA has a lot of sections. Breaking them into smaller pieces makes the FAFSA easier to navigate. Consider these do’s and don’ts.

  1. Don’t sprint. Take questions one at a time and give yourself time to properly answer each question.
  2. Do read each question carefully and out loud. It will help you understand the question better.
  3. Don’t multi-task. Put your mobile phone away, and turn off the television.
  4. Do find a quiet place where the FAFSA will have your full attention.

4. Stay Student Focused

Parents often forget that the student always provides information. Parents are required to provide their information if the student is dependent.

So when parents see a question that refers to “I,” remember that “I” is the student. “You” is also the student. When questions address parents, you will see questions that refer to “your parents.”  This is where parental information goes.

5. Avoid Parent Traps

As families evolve, so do questions about who needs to provide information for the FAFSA. When you see “parents,” FAFSA is referring to the student’s biological or adoptive parents. When the parents are married, then the student and both parents complete the FAFSA.

If the parents are not together, things can get confusing.  BigFuture by the College Board created a corresponding infographic to help address some commonly asked questions. That infographic will appear on this site tomorrow.

6. Keep Track of Deadlines

Every college has a different set of deadlines based on priority, merit, early decisions etc. BigFuture by the College Board helps families sort through these deadlines with detailed college profiles and a free, customized action plan. And, should you have specific questions about specific colleges or universities, don’t be afraid to call the college’s financial aid office and ask questions.

7. Profile CSS/Financial Aid PROFILE® 

The FAFSA opens the doors to federal aid. There’s also almost $50 billion in non-federal aid available – from colleges, states and private institutions. Some colleges and programs use the College Board’s CSS/Financial Aid PROFILE to help award these monies.

CSS/Financial Aid PROFILE is an online application that collects information used by almost 400 colleges and scholarship programs to award financial aid outside sources from the federal government. Families must complete the application and the College Board sends it to the colleges and scholarship programs they have chosen.

Here’s a list of colleges that use CSS/Financial Aid PROFILE® and where you go to complete the  CSS/Financial Aid PROFILE®.  Sending your CSS/Financial Aid PROFILE® report to one college or scholarship program costs $25. Additional reports are $16 each. There are fee waivers available for low-income families.

8. Gain Experience

The more you experience something, the better you do. This free FAFSA webinar walks you section by section through an actual application with the College Board’s Senior Director for Financial Aid Methodology, Susan McCrackin. Families can access the free FAFSA webinar 24/7.

It’s time. Go after your piece of the more than $185 billion in financial aid to help make college possible. Use BigFuture for advice and to help create a customized plan for your child. Then follow the map. Chances are it will lead to an investment that provides returns for the rest of your child’s life.