Category Archives: financial planning

college costs, college planning, financial aid, financial planning

10 Ways to Pay for College Without Incurring Debt

pay for college

Debt from college tuition has skyrocketed over the last several years. Parents and students are weighing their ROI (return on investment) before making their college choices. As college costs have shot up, so has student debt. How can you pay for college without incurring debt?

According to the latest Quarterly Report on Household Debt and Credit, outstanding student loan debt stood at $1.58 trillion in the fourth quarter of 2021, an $8 billion decline from the third quarter. About 5 percent of aggregate student debt was 90+ days delinquent or in default in the fourth quarter; the lower level of student debt delinquency reflects a Department of Education decision to report current status on loans eligible for CARES Act forbearances. 

That’s the bad news. But if you’re a savvy consumer and research the costs before signing on the dotted line, you should be able to go to college without incurring debt. Zac Bissonnette, author of DebtFree U, is proof that it can be done. He graduated from college with zero debt.

Believe it or not, you may be able to graduate without debt if you use these 10 ways to pay for college:

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admissions, financial aid, financial planning

5 Lessons We Learned From an Award Letter

award letter

After my daughter applied to colleges, we waited with anticipation to receive those offers of admission. But just as important, was the financial aid award letter. That letter could mean the difference between attending a college, deciding to incur debt, or attending a less expensive college.

When the letter finally began to trickle in, I realized that choosing the colleges to apply to was only the beginning of some very tough decisions. We learned some lessons along the way.

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college costs, college planning, financial planning

5 Reasons why College Costs So Much

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college

There is one thing you can be sure of in life: college tuition will rise every year. Prices rise and fall all around us, but tuition never seems to go down.

College tuition prices are a lot higher today compared with two decades ago. For instance, the average cost for tuition and fees among ranked public and private National Universities – schools that are often research-oriented and offer bachelor’s, master’s and doctoral degrees – has risen significantly since 2001, according to U.S. News data.

From the 2008 edition of the U.S. News Best Colleges rankings to the current 2022 edition, in-state tuition prices among public National Universities grew by almost 79%. Experts say state schools have typically had more room to increase tuition levels compared with their private counterparts, and finding a bargain price at the state level is becoming harder.

The economic downturn resulting from the coronavirus pandemic may also affect tuition costs in the years to come.

In just comparing the 2020-2021 school year to the current 2021-2022 academic year, tuition rates at both private and public National Universities have increased by at least 2%, according to U.S. News data.

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financial planning, Student debt

Teach Your Teen Financial Literacy

financial literacy

With all the talk of having student loan debt erased, I wonder what are we teaching our children? For students to think it’s perfectly fine to refuse to pay a debt, a debt that paid for their education, something has gone horribly wrong.

I agree. Student debt is crippling this generation of students. But instead of forgiving the debt, wouldn’t it be better to teach these students some basic financial literacy? Where is the disconnect? Did the parents not explain the ramifications of debt? Did the colleges not take the time to discuss repayment amounts and the consequences of borrowing too much to pay for college? I think both are at fault.

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admissions, college planning, financial aid, financial planning

Deep Diving for College Bargains

COLLEGE BARGAINS

Not all colleges are created equal. But are you looking for the college bargains?

Community college. State University. Private liberal arts college. Trade or technical college. Top-tiered business college. Ivy League college. Not all colleges are created equal.

If that’s the case, what makes a good college? Some might think it’s a #1 rated NCAA football team, or a college with an Ivy League designation, or even a school that is highly selective. A good college (as in good fit) meets the following three criteria: academic, social, and financial. The college that meets or excels in all three should be the college your student chooses. Even the best college (based on reputation) isn’t a good college if the student neglects the opportunities he is given while attending.

In terms of financial fit, does the college fit into your family’s college budget?

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college costs, college planning, financial planning

10 Ways to Save Money in College

save money

College is expensive. However, college students tend to take a casual attitude toward spending; hence they waste money in college. After tuition, room and board, students often find themselves tapped out and living on ramen noodles. But it doesn’t have to be that way. Students can save money by making wise choices and being cognizant of their spending. 

Following are 10 ways to save money in college:

1. Create a budget

Any smart spender creates a monthly budget, especially college students who have limited discretionary funds. Even if you’re being subsidized by your parents and have a work-study job for expenses, it’s smart to watch your spending. Pizza and fast food delivery can add up.

2. Take on a job

If you qualify for financial aid, most colleges will offer work study. This allows you to work on campus during school and use that money for college expenses. Even if you don’t qualify, get a job while you’re in college. Not only will it subsidize your spending but studies show students who work in college get better grades.

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college guidance, college planning, college prep, financial aid, financial planning, parenting

Searching for The Most Generous Colleges

This article was originally written for University Parent as a part of their parent program.

generous colleges

Everyone likes a good bargain.

We rush out on Black Friday to get the best deals for Christmas — we stand in line in the freezing cold to save money! But do parents put as much effort and attention into finding a college bargain? Student debt statistics would say they don’t. Would you want your student graduating from college saddled with that debt? I imagine not!

College bargains do exist and if you have a student who intends to start college in the fall, it’s your job as a parent to point him in their direction. College is a huge consumer purchase which you can and should approach much as you would the purchase of a home or car. Do your research, compare the prices, and help your student choose a school that gives you the best bang for your buck.

One of my favorite movies is Mr. Blandings Builds His Dream House. In it, Mr. Blandings tells his lawyer that “some purchases you make with your heart and not your head.” As I said, I love the movie, but this is bad advice. When it comes to your college “purchase,” use your head first and then listen to your heart.

I understand that it can be challenging to get students to look at the college choice from this point of view. When my daughter was applying, all her choices were east coast private schools with huge price tags. As a parent, I wanted her to have her dream but, also as her parent, I wanted her to graduate without being burdened with debt. Her heart told her to go to the college that offered the least amount of merit aid. Her head, after a long “money talk” and re-evaluation of her second choice, led her to a school that allowed her to graduate with a small amount of student loan debt. She’s grateful every day that I guided her in that direction.

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college planning, financial planning

Working During College

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working during college

Studies have shown that students who spent time working during college actually do better in the classroom. Students who work must learn how to structure and manage their time to work around class assignments. This translates into not delaying assignments and scheduling time to study for exams. However, many experts suggest that freshmen students wait until the second semester to take on the added responsibility of a job. This allows them time to ascertain their academic strengths and decide whether or not a job would detract from their study time.

When college students do decide to work, there are three options available to them: on-campus jobs, off-campus jobs and internships. Each of these job opportunities has its own set of advantages.

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college costs, college planning, financial aid, financial planning

Using College Calculators

college calculators

Parents and students who understand and plan for the cost of college are wise consumers. Before applying to college, it makes sense to plan ahead and know your options before making a decision about college. The College Board and FinAid.org provide parents and students with several different college calculators to determine college costs, the expected family contribution for financial aid, and how much student loan payments will be upon repayment. Knowing these figures will help you better plan for the costs associated with college.

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financial aid, financial planning

Understanding State Financial Aid

Many families are aware of the aid the federal government provides to college students. But did you know that states also have financial aid available for college students?

In 2018-2019, states awarded an average of $930 per full-time-equivalent undergraduate student in the U.S., according to the College Board’s Trends in College Pricing and Student Aid 2020 report. This continues a seven-year trend of rising state grant aid. But as state budgets see significant cuts in response to the economic impact of the coronavirus pandemic, experts say the trend may pause or reverse.

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