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college costs

A Parent’s Guide to Controlling College Costs

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controlling college costs

This past week, regular decisions began rolling out from colleges and universities around the country. With them, financial aid packages. With both those important decisions, parents are beginning to look ahead to the fall and how they will pay for this expensive education.

In addition to tuition, room and board, there will be travel expenses, clothing, dorm supplies, textbooks and entertainment. Each year, these expenses will increase. How can parents put a vice grip on their wallets by controlling college costs apart from all the incidental expenses?

Four tactics

I gave my best advice to Collegiate Parent recently in the form of four simple tactics:

  1. Take advantage of scholarships.
  2. Apply for financial aid.
  3. Borrow wisely.
  4. Graduate on time.

To find out just exactly how these tactics work, read the article. But these four tactics alone can save you thousands of dollars over the next four years of college.

Other savings tips

In addition to saving money on basic college costs, parents can save even more on tuition, room and board and incidentals by taking advantage of these five cost-saving tactics:

  • Get credit for AP or IB courses in high school
  • Become an RA after freshman year
  • Use the bare minimum student meal plan
  • Take advantage of student discounts
  • Rent, buy used, or exchange textbooks
  • Spread out your tuition payments

Get creative. Save on dorm accessories by sharing with roommates. Book hotels and travel in advance of parent’s weekend before the rates skyrocket. Teach your student to budget wisely before leaving for college. Encourage your student to work part-time during college to contribute to the college expenses. Studies show that students who work manage their time wisely and study more.

Every little bit helps when it comes to paying for college. By using these simple cost-cutting techniques, you can protect your savings and help your student control costs.

 

college costs

5 Ways To Get Your College Student Home on the Cheap

 

college studentOver 3 million college students will attend universities outside of their home state this year. With the yearly costs of a private or out-of-state education starting at $24,000, any added expenses beyond room and board, books and tuition can be a real burden. Yet, not having your kids home for the holidays is unimaginable for many parents, so they find a way to make it happen.

For those already thinking about how to get back home “from” school, here are five tips to help your college student get home on the cheap:

  • Rack up miles and earn free flights. While fares during peak season can cost hundreds, earning free flights is easier, and simpler, than many think. RewardExpert helps travelers create easy-to-follow strategies by developing customized earning plans and maximizing frequent flyer rewards. The service makes it easy to earn free tickets in just a few months, making now the perfect time to enroll.
  • Carpool with someone headed the same direction.  College Carpool is amongst a handful off services that allow students to connect with others driving the same direction through private pages for each college. Through forums, students can find available rides, or proactively request one.
  • Enroll in a car share. Many traditional rental car services have restrictions for those under 25, however ride car services like Zipcar andEnterprise CarShare are available to university students. Monthly fees are low, and once registered, students can reserve a car whenever they need one.
  • Hop on the bus… Sure, the bus might not be the most glamorous option, but Bolt Bus, Megabus and Greyhound are cheap options with surprising amenities. Most have free wifi, power outlets and even reclining seats. Smaller-scale regional buses also offer student discounts, such as Short Line.
  • … Or the train. Taking the train home is another great option, withAmtrak providing service from 500 destinations in 46 states. The company offers a 15% student discount, along with the opportunity to earn points towards free travel.

No matter how far away or son or daughter may be, there are some creative ways to get them home without breaking the bank.

college costs, college planning, financial aid

Paying for College: The Best Strategy

 

paying for college

Last night I spoke with a relative whose son just had a baby. The parents were already developing a strategy for paying for college. When she told me they were planning to enter their child in beauty pageants to foot the bill, I had to interject. I told her this was certainly going to cost the parents money and  the rewards would probably not be worth the effort. Then I told her the best strategy to pay for college: good grades.

According to an NACAC survey, colleges rank the grades in college prep courses, the strength of curriculum, and grades in all courses as the top factors in the admissions decision. But here’s the added bonus, those grades can also net a student huge rewards in financial aid. Many colleges will award automatic full-ride scholarships to students with high GPAs and class rank.

Instead of placing all your college money “eggs in one basket”, in addition to saving, use these three strategies to create a plan that will pay the college tuition bill:

Focus on academics

The tone is set freshman year. Make it a goal to choose the pre-college courses (AP and Honors) and get the best grades possible in these courses. If your student does poorly freshman year, it makes it difficult to catch up later. All throughout high school, your student should place high value on academic progress: commit to study, prepare for class and tests, seek help when needed, and put academics before any other activity.

Apply for outside scholarships

Start applying for scholarships as early as possible. Waiting until senior year is a poor decision. There are scholarships available for all ages. It should be your student’s “job” during high school to search and apply for scholarships. An hour a day can produce huge rewards and start racking up funds each year to make a huge dent in the tuition bill.

Chose the colleges with the best financial aid footprint

What does this mean? Look for colleges with a high percentage of financial aid. Every college reports the statistics related to their financial aid profile. These statistics can tell you how generous they are with their scholarships and grants and also the percentage of students who receive help with their tuition.

The best resource available for these statistics is College Navigator. You can enter the name of the college, or search using criteria such as location, size, and degree plans. Once you’ve pulled up the data, you can use it to compare colleges.

If you use these three “paying for college” strategies, no matter where you are in the process, your student should be able to graduate from college with little or no debt. Additionally, you should be able to pay for college without borrowing or dipping into your retirement (which I never recommend).

college costs, college guidance, college planning

10 Tips to Help Cut College Costs

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cut college costs

During these tough economic times, everyone is finding ways to cut costs. Pinching pennies and forgoing that latte can add up, but what about paying less for those college expenses: tuition, room and board, books, and meals. Until our economy picks up and catches up with the rising cost of tuition, parents and students need to find creative ways to cut college costs. These ten tips might help you keep a little more money in your pocket and graduate with little or no debt.

1.Consider private college

Some people believe that if you forgo the high-priced private universities, you can save some bucks. But is that really the case? The simple truth is that many private colleges give great financial aid in the form of grants and scholarships. They can do this because of their generous alumni who reinvest in their alma maters. Many times, you could end up paying less at an expensive private university than you would at a local state college.

2. Choose EA or regular decision

If you apply early decision, letting colleges know that they are your first choice college, you lose your bargaining power. That bargaining power can mean huge dividends when it comes to financial aid. If your teen is accepted to several colleges and each offers them some grants and/or scholarships, you can use those offers to negotiate more aid with the college of your choice. Early decision robs you of that negotiation.

3. Take Dual Credit and/or AP Classes

If you take dual credit classes during high school, you can get college credit at the same time you receive high school credit. In many cases, you can get enough credit to enter college as a sophomore. Additionally, if you take AP classes, be sure to take the AP tests which many colleges count as credit if you test well. By choosing either option, you can save on the cost of tuition. For more information on how this works, you can order or download a free copy of the National Center for Education Statistics’ publication: Dual Credit and Exam Based Courses.

4. Work during college

Studies show that working during college helps you with time management and organization. If you work while you’re in college you can use that money for textbooks, living expenses, and even put some it toward tuition expense. It makes better sense to work than borrow and pile up your student loan debt.

5. Don’t buy new textbooks

With all the websites offering textbook options, think before you plunk down top dollar for those new textbooks. Consider buying used, renting, or even downloading e-textbooks. All these options will save you hundreds of dollars every semester. Barnes and Noble has made this easy by providing a link where you can search for new, used, rentals and e-textbooks all in one location.

6. Live at home or become an RA (Resident Assistant)

Room and board can be a huge portion of your college expense. One option is to live at home if the college is within driving distance. If you aren’t interested in living at home, here’s another option: apply to become an RA (Resident Assistant). Some colleges allow RA’s to live rent free (which means a huge cost saving on room and board). Others give substantial discounts.

7. Use your student ID card for discounts

That student ID is useful for more than just getting into your college dorm. Use it everywhere for substantial discounts at restaurants, on clothing, on books and even groceries. Ask local businesses if they honor the student ID if you don’t see a sign at the cash register or drive-thru.

8. Consider community college

Community college is considerably cheaper and can offer you an opportunity to get some of your core subjects out of the way. The difference between $3000 for a college credit at a university and $300 a credit at a community college can add up to substantial savings. Don’t forget to check with your college first and make sure they will accept credits from the community college.

9. Take a look at your meal plan

Most students don’t need the full meal plan (3 meals a day). If you knock your meal plan down to the minimal one meal a day you can save thousands of dollars per semester. Most college students roll out of bed in the morning, grab a red bull or coffee, snack during the day and often order out late at night. Why pay for three meals a day when you don’t eat them?

10.Graduate in three years

Imagine the money you can save if you graduate in three years instead of the 4-6 years required by most college students. How is that done? First, if you were wise and took those dual credit or AP classes it’s possible to chalk up 12-15 credit hours before you ever set foot on campus. For some excellent tips on why and how to graduate in three years, check out this amazing post by a guy who advises parents on how to pay less for college: How to Graduate in 3 Years! The economy has forced all of us to tighten those belts and eliminate wasteful spending. These 10 tips can potentially save you hundreds and even thousands of dollars on college costs.

academics, admissions, college costs, college majors

Payscale’s 2015 College Salary Report

 

salary reportWith college costs rising, along with student debt, it’s more important than ever for parents and students to look carefully at college ROI (return on investment) when creating the college list. Payscale recognizes the importance of choosing a college major that will be a good return on investment and has released their 2015 College Salary Report.

Following are just a few of the categories covered in the data:

Majors That Pay You Back (Associate and Bachelor’s Degrees)

When somebody tells you they are headed to a college or university, whether it’s for an associate degree, bachelor’s degree, master’s degree, MBA or PhD, the first question out of everybody’s mouth is “Where are you going to school?” In reality though, the choice of major can have a much bigger impact on your future earnings than the school you attend. PayScale ranks the top college majors by salary to help you figure out how much you can earn after graduation.

Most Recommended Majors (by alumni)

What makes graduates recommend their major to students trying to pick a major today? One look at this list of most recommended majors shows us that the majors that people rave about are the ones that allow them to easily find a job in their intended field. It’s not necessarily how much money a person makes, but the likelihood that they can find work doing what they want to do.

Best schools for particular majors (by earning potential)

Choosing a college and deciding to get a degree are big decisions, so do your homework and choose the degree and school that will set you up for the career of your dreams. PayScale’s 2015 College Salary Report ranks undergraduate and 2-year colleges by the highest earning graduates.

Common jobs for particular majors

Choosing a college and deciding to get a degree are big decisions, so do your homework and choose the degree and school that will set you up for the career of your dreams. PayScale’s 2015 College Salary Report ranks undergraduate and 2-year colleges by the highest earning graduates.

College Comparison Tool (compare up to 5 colleges side by side)

Trying to decide which college or university to attend? PayScale has alumni salary data about more than 1,000 schools. Select up to five schools and see how they compare based on earning potential and more.

Most Meaningful Majors

When it comes to choosing a career and picking a college major that will help you achieve your goals, money isn’t everything. Job meaning counts for a lot too. That’s why PayScale asks everybody who takes our survey if they feel like their job makes the world a better place. This list ranks 207 college majors by the percentage of graduates in each major who answer that question with a resounding “yes.”

Here’s an article published in Money Magazine, “Choosing a College Major by Age 16 Pays Off”, proposing that students should think about choosing a major early to avoid spending more for the college education than necessary.

A college choices isn’t all about the money, but it should certainly factor into such a large financial investment. Parents and students should do their homework, just as they would if purchasing any other big ticket item.

college costs, Guest Posts

How to Get In-State Tuition if You Live Out of State

 

in state tuitionIs your child considering a school that is out-of-state? More than likely, you want to give them the ability to attend any of the schools that they are considering. However, this is difficult when in-state colleges carry far less expensive tuition fees. We’ve compiled some tips for getting in-state tuition for out-of-state students to help families solve this cost dilemma.

1. Plan ahead

The more time you give yourself to plan, the more opportunities you will have to obtain tuition benefits. It pays to research, as many of your savings options can last through all four years of college. Also, it is important to apply to many of these benefits early, giving you preference over other applicants.

2. Understand the college’s rules

Some schools have stricter in-state tuition qualification requirements than others. It is important to research the rules for each school that your child may be considering. Some colleges require students to have graduated high school in the state or have a parent living in the state. Others allow in-state residency for students that live in the state for one year and are financially independent from their parents. It completely depends on each school. Check out Finaid.org for a list of links to each school’s rules regarding in-state residency requirements.

3. Fill out forms carefully

Make sure you completely understand the rules for each school so that you do not make any mistakes or omit any information when filing for residency. Be cautious when filling out forms and be sure to look them over before submitting them. If you have any questions, be sure to utilize the college’s admissions offices by giving them a call. As a result, you can be sure to submit the correct information.

4. Avoid penalties

Try to avoid the negative consequences of making a mistake. The penalties assessed to students for inaccurate in-state residency range from expulsion from school to being charged for past tuition at an out-of-state price.

5. Research academic reciprocation agreements

There are currently four regional programs that help students obtain lower out-of-state costs compared to the full out-of-state tuition. These programs are made available to students interested in specific majors. Students must qualify and there is usually a cap on how many students can receive this benefit from each college.

The Western Undergraduate Exchange helps resident of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming gain access to out-of-state schools. Students from one of these states are eligible to receive a reduced tuition rate of 150% of in-state costs at a school outside their home state. This includes two and four-year institutions. Again, this depends on how many spaces are available for WUE students at each school.

Alabama, Arkansas, Delaware, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Virginia and West Virginia all participate in The Academic Common Market. This program offers tuition savings to students if an institution in their home state does not offer them the program that they are looking to study.

The Midwest Student Exchange Program offers students in Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, or Wisconsin a similar benefit.

The New England Board of Higher Education offers a tuition break program referred to as the New England Regional Student Program. This allows students that are permanent residents in the states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont to receive tuition aid. With this program, students may qualify if the out-of-state college they would like to attend is closer to home than an in-state college that offers the same academic program.

6. Hire an expert

In-State Angels helps students and families navigate the often confusing process of establishing residency in a different state. Avoid the risk of going at this by yourself and employ an Angel to help. ISA helps students gain residency in the fastest and most legal way possible, saving families like yours tens of thousands of dollars.

These tips can help you and your student by opening up as many college options as possible, even those you originally thought to be too expensive. Like we’ve been saying, it pays to do your research, so get searching and start saving!

______________________________________

About the Author – Jake Wells founded In-State Angels in 2009 after graduating from the University of Colorado-Boulder with more debt than seemed reasonable. He is on a mission to prevent others from suffering a similar fate, and now advises students on how to get in-state tuition in the fastest way legally possible.

 

college costs, financial aid, Uncategorized

10 Ways to attend college for free (or almost free)

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attend college for freeAs students begin applying to colleges, and juniors begin narrowing down their college choices, consider that there are many options available that allow your student to attend college for free (or almost free), excluding expenses like books, fees, and possibly room and board. But free tuition is nothing to scoff at. Many of these colleges cost upwards of $100,000 for four years.

Here are 10 ways your student might be able to attend college for free;

1. Get good grades and score well on the SAT

Many colleges offer free rides to valedictorians, top 10 percent, and other academic distinctions. High SAT scores help as well—where many colleges offer merit-based free tuition.

Students at Macaulay Honors College, part of the City University of New York system, don’t stress about the high price of tuition. That’s because theirs is free. At Macaulay and a handful of other service academies, work colleges, single-subject schools and conservatories, every student receives a full merit-based tuition scholarship for all four years. Macaulay students also receive a laptop and $7,500 in “opportunities funds” to pursue research, service experiences, study abroad programs and internships.

2. Be a PSAT Merit finalist

Scoring high enough on the PSAT to become a Scholar, a Finalist or a Semi-Finalist can equal big money at some schools-public and private. That means your student may only need to score high enough to make it to the last round; he or she doesn’t even have to be the last one standing.

Here’s a list of automatic (and full-ride) scholarships for National Merit finalists and semi-finalists: http://thecollegematchmaker.com/52-colleges-offering-full-tuition-scholarships-national-merit-finalists/

3. Win Scholarships

With work and a tested method (How 2 Win Scholarships) your student can cruise into college with multiple scholarships. Start early with the research, register on scholarship search sites, and look locally.

4. Work while you attend

There are several colleges that let you work while you attend and pay your tuition. In exchange for free tuition, students at the College of the Ozarks work on campus 15 hours a week. Possible jobs at this Missouri college include dairy farming and custodial work.

5. Pursue a specific career path

Colleges offer free tuition to students who pursue specific career paths or areas of interest. For instance, prospective students must audition for enrollment into Philadelphia’s Curtis Institute of Music. Those accepted receive full-tuition scholarships.

6. Use your location

A number of cities, counties, and states offer free tuition to students who either excel in their studies, or demonstrate a serious need.

7. Go overseas

Believe it or not, there are colleges overseas that offer free tuition to international students. For instance, students at KTH Royal Institute of Technology can get a free technological education at the Royal Institute of Technology. At Lund University in Sweden, you will not have to pay tuition fees.

8. Attend college online

Get free tuition from these online colleges and you’ll truly get a good deal. You won’t even need to pay for room and board! Andrew Jackson University,  Trinity College of Biblical Studies and The Diulus Institute allow you to attend college online for free.

9. Demonstrate need

Students who come from low income families can get free admission from numerous colleges and universities. Surprisingly, many colleges consider low income to be above the poverty level, so don’t think you won’t qualify. Check out each college’s income levels.

10. Serve your country

With a commitment to serve after graduation and acceptance to one of the nation’s military academies and some military colleges, you can attend college for free (and even get paid while you attend). And if you join the military before college, you can attend using the GI Bill after you are honorably discharged.

Following is an additional resource:

The College Solution listed colleges that provide 100 percent of need:

http://www.thecollegesolution.com/list-of-colleges-that-meet-100-of-financial-need/

 

Uncategorized

Rising college costs = student loan debt

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student loan debtRising college costs put the student loan debt at an all time high. Paying for college is one of the greatest challenges when it comes to securing a college education for your children. While it seems that getting accepted into a college is the biggest hurdle, once they have received the acceptance letter, you can stop worrying about that and start worrying about how to pay for it. With tuition costs rising every year (nearly 500 percent in the last 60 years), most families find it difficult to cover college expenses. Financial assistance from the college is available to a lucky few, as are private and federal grants and scholarships. However, the vast majority of students will end up taking out student loans in order to pay for their education.

Picking which loan to take out is key. A loan, regardless of what kind, is something that will need to be repaid—which means your children will be in debt before they even start working. So, before you start applying for any and all student loans, find out more about the reality of the debt management post-graduation. This infographic clearly lays out the past, present and future of student loans and consider how it would impact your children’s financial outlook.

Continue reading Rising college costs = student loan debt →

college costs, financial aid

5 Creative ways to finance a college education

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financing collegeAs a parent, you are probably willing to go to great lengths to ensure that your kids make it to (and through) college. You have no doubt tried hard to instill in them an understanding of the different options available to them should they complete a degree. And if you’re like most parents, you’ve likely been contributing to a college fund and you plan to help support your kids during their time in college. But even so, you simply might not have the money on hand to cover all the bills. Between tuition, books, a dorm, and other living expenses, you’re basically supporting two households–a tall order for any parent. So your children might have to take out loans, get a job, and find a few other creative ways to get the money required to pay for their education.

Here are five creative ways to finance a college education:

1. Crowdsourcing.

Random strangers probably aren’t going to help your kids pay for tuition and books. But their loved ones might be willing to kick in, especially if they stand to see a return on their investment. The way crowdsourcing generally works is that a business presents an idea to the public, which then decides if it will move forward via their donations (talk about putting your money where your mouth is). In return, those that donate may get free product, swag, or even cash back with interest (like a loan) when the idea comes to fruition (and to market). Your kids could make the same deal with aunts and uncles, grandparents, and so on. The real upside is that they’ll likely get better interest rates and more lenient terms all around than banks might offer.

2. Grant money.

Many kids apply for scholarships offered by their school and by outside organizations, but many forget that they can also apply for grant money (like the Pell grant) as a way to get additional funds for their schooling. These offerings are generally need-based, so your earnings could play a role in whether or not kids are able to get grants. But it’s definitely worth a try since they do not require repayment.

3. Scholarships.

Most families don’t realize that millions of dollars in scholarship money goes unused every year simply because students aren’t doing their homework to find available funds that they qualify for. Although your kids may be busy with their studies, they won’t be for long if they can’t pay their tuition. So encourage them to sign up for sites like Fastweb, Zinch, and Scholarships.com. If they apply for just one scholarship each week their odds of winning greatly improve.

4. Save everywhere.

There are so many ways for students to save money that they have no one to blame but themselves if they’re paying full price for anything. Textbooks, for example, can be purchased at a discount online (on sites like Chegg, PhatCampus, and so on) or even rented for a semester at a fraction of the cost of new (at BookRenter, eCampus, etc.). They can get numerous discounts using their student I.D., as well; all they have to do is ask to get deals on travel, entertainment, and food. This won’t exactly allow them to earn more money, but it can definitely help them to save some and put it towards college expenses.

5. Consider using other funds.

Suppose you have received structured settlements. You might want to consider selling the structured settlement for a lump sum (there are companies that buy them) as a way to send your kids to college. Yes, you will lose some money in the long run, but if you’re able to avoid student loan payments (and the interest that comes with them) it may just even out.

Get creative with college funding, especially with money that won’t have to be paid back. Don’t, however, use 401K money to finance college. It’s a poor financial decision and compromises plans for your future.

 

college costs, financial aid, scholarships

The True Cost of College

 

How much is the average American spending on higher education? More than you might expect. This infographic goes beyond tuition and offers a comprehensive breakdown of the real costs of college, as well as what goes into financing a degree, including the realities of student loan debt. What is the true cost of college?

Did you know?

  • The total annual expense of attending an in-state public four-year institution averages $22,261 (only $8,655 of which is tuition and fees, the rest is room and board, books and supplies, transportation and other expenses)
  • Attending an out-of-state four-year public institution averages $35,312 and a private non-profit college or university averages $43,289 each year
  •  $237 billion in financial aid was given during the 2012-13 school year; the average student received $13,218 in financial aid
  • 67 percent of 2009 college graduates are in debt with student loans
  • Total student loan debt exceeds $1 trillion and increases nearly $3K every second

These are just a few statistics that emphasize how important it is to understand all the expenses of college and identify potential funding opportunities while budgeting for higher education. The full infographic can be seen at VarsityTutors.com.

college costs