College Planning

College Students Lack Study Habits

A 2009 study conducted by professors Arum of New York University and Roska of Virginia State University, followed 2,300 students enrolled in 24 institutions over four years. This study found that the average amount of time spent studying by college students had dropped more than 50% since the early 1960s. It was found that 36% of students said they studied alone less than five hours per week while students spent 85 hours a week socializing or at extracurricular activities. This study has generated much discussion from the dining room table to office of college presidents.

For some students, research is much easier than it was 10 years ago, while for some others, it can be overwhelming with the large about of data available – ‘paralysis in the analysis.” There is an abundance of information technology – and how college students are using it is questionable. Using the Internet is convenient and accessible. Students are using the Internet for online tutoring, quizzing and online study groups. Many institutions require students to own a laptop while in attendance; this adds to the convenience factor of not having to go to the library.

When you visit a college, it is a good idea to ask the Admissions Officer about this study, and their thoughts on the average study time at their campus. During the campus tour, take note of students studying in the library and visit the learning center on campus to perhaps talk to some students.

There is evidence that professors may have “dumbed down” courses to receive more favorable ratings. There are websites that allow professor ratings to be submitted by students, where they are able to rate professors on their teaching quality, how hard the course is and how easy the course is. Many students have not learned critical thinking and reasoning skills; they are earning their degree with less effort due to the institution not mandating more. Some students are not taking courses that require substantial workload. It is important to note that not all students fall into these categories, but enough to be concerned. There are many college students working hard to earn their degrees.

The college national graduation rate is 50%. Could the issues discussed have an influence on this? These revelations will influence discussions on campuses regarding instruction and curriculum as well as campus life. This information shows that some institutions may need to modify many aspects of the learning experience.

Life is about creating balance and so is the college experience both academic and social. Having 85 hours a week devoted to socialization brings up the old adage – “an idle mind is the devil’s workshop.”

Loan Options for College

Figuring out how to pay for college can be anxiety producing and confusing for families. Student loans can be one of the most misunderstood aspects of paying for college. The number one rule of thumb is that a student should not borrow more than his/her expected first year salary upon graduation. Repayment for college can last 15 years after graduation, consideration for both the financial futures of the parents and students should be given.

When considering the options for borrowing, there are three categories of student loans: Federal student loans, Federal parent loans and private loans, for both the student and the parent(s). Stafford loans are Federal student loans that can be available to students and where the interest may be subsidized by the government. The interest rate for the 2012-2013 year for a subsidized loan is 6.8% and 6.8% for an unsubsidized loan. Stafford loans have a 1% origination fee. The government will only allow students to borrow $27,000 over four years.

Federal Parent loans have a fixed rate of 7.9% and a 4% origination fee that will be reflect the amount borrowed. The school will determine the actual amount that the parent may borrow. A 2010 report by Sallie Mae and Gallop Poll reported that parents will need to use 47% of their adjusted gross income to pay for their children’s yearly tuition, which clearly is not possible. Therefore, parents need to borrow more heavily for college than even 5 years ago.

The third category of loans is private loans. These loans are taken out in the student’s name and repayment is the responsibility of the student. The loans usually require a co-signer and have variable rates depending on the student and the cosignature. It is wise to utilize all federal aid before venturing into the world of private loans. In many cases there are predatory loads and it is not wise to use them.

If you are in doubt and have questions, call upon the Financial Aid office located at your student’s college of choice. This financial venture that you and your child are entering should not be done so lightly, employ all the resources that are available to you so that you can make informed decisions.

When a Rejection Letter is a Good Thing

The college admissions process can be a bruising affair. It's a courtship between a prospective student and the college he most desires and sometimes the relationship is over before it starts.

College seniors spend a great amount of energy, time, money  and focus applying to their choice schools. And then, they wait. And wait. And wait. For many college-bound students, when the fat envelope arrives, they're elated. But what about the recipients of the skinny envelope? How to handle that rejection?

Before your child beats himself up for not being good enough, smart enough, skilled enough, take a deep breath. It may not be as bad as it seems. First of all, in my experience, if your child doesn't get at least one rejection letter, then he (or she) has probably aimed too low. In other words, the bright side is that your child has challenged himself to apply for reach schools — and that is a good thing.

It may also help your child to keep in perspective that colleges base their decisions on factors such as how much financial aid he requires or whether or not she's an athlete — it's not strictly a decision based on GPAs, class rank or community service hours.

The college application — and rejection — process is a teachable moment, even before your child steps into a college classroom. It's a chance to help your child understand that everyone experiences rejection and disappointment at some point in their lives. It's not the end of the world. And come fall, there will be a college waiting for him that will benefit from his presence.

Photo by laffertyryan via Flickr.

College Decision: Logical or Emotional?

The dilemma faced by many parents this time of year is where will their child be going to college next September. What the majority don’t realize, the problem is not getting a child into college, it is getting them out in four years.

 Many parents find themselves in a love and/or guilt position for a variety of reasons such as they (parents) did not go to college, or they went to an Ivy League school, or they told their child to do well and then they compounded the problem with no clear decision making strategy in advance. This results in a struggle of wills – the child against the parents, the mother and the child ganging up on the father, etc. In the United States only 50% of college freshmen will graduate from college. One of the reasons is how families make their decision sitting at the kitchen table.

Let’s discuss a well-thought-out plan. When a child gets accepted to a number of colleges it is wise to take a “victory lap” to the top 3 schools. I recommend that families have a written rating scale to be able to assess one school versus another. This follows the adage of if you can’t measure it, you can’t manage it. If possible, the student should schedule a mid-week overnight visit that would allow them to attend several school classes and events. If that is not possible, then extended time should be spent on campus talking to students and faculty members, as well as exploring student clubs and organizations. The cafeteria should merit lots of consideration. Flexibility in the food plan is critical to good nutrition. Many college freshmen put on 15 to 20 lbs because of the glut of junk food, lack of exercise and stress.

It goes without saying that college retention rates (the number of students that return for their sophomore year), graduation rates (4.5 or 6 years), and job placement numbers are all very important. Lastly, cost should be critical in your decision making. It is prudent not to look at how the tuition bill will be paid for just the next year, rather the cost should be viewed as a monthly bill over 15 years.

Financial Aid Appeal Revisited: The College Perspective

“I can’t believe this!” is the reaction of every parent who is lucky enough to receive a financial aid package. Unfortunately 80% of recipients don’t feel they are getting enough money from the colleges. Normally this causes a knee jerk reaction of “I’m going to call them and tell them I need more money” which is the simplest and easiest thing to do, but it won’t accomplish anything except create frustration and anger toward the financial aid counselor.

If you think about everyone doing the same thing – they are all arguing with a harried, overworked and underpaid financial aid counselor who has been instructed to give no one a break because “our college does not negotiate.” Many financial aid offices do not even have chairs for visitors because they are not encouraged to sit down and talk. Some phone calls are even blocked when their system has reached full capacity.

From my experience about 45% of financial appeals will be successful if the parent does 3 things:

1)    Determine the cost of attendance

2)    Subtract their Expected Family Contribution (EFC) to determine their eligibility

3)    Develop an approach based on what the colleges don’t know about them

There are many reasons why a college would consider revising a financial aid package. The complete list can be seen by clicking here.

There are many strategies someone can use to appeal an aid package. Since there are too many to list here, I’ll give a couple. All appeals should be in writing and addressed to the Director of Financial Aid. The appeals need to be in writing (snail mail or email) so there is a paper trail in the student’s file. Lastly, make a friend in the Aid Office. Even if you don’t have any success this person will be there in subsequent years.

How to Appeal Your College Financial Aid Award

Very few families are excited when they receive their financial aid packages and far too many are confused with the jargon and how to interpret what the aid package says. The first thing that comes to a parent’s mind is “this can’t be right, the college can’t expect me to pay this much.”  The financial aid package is a direct result of completing the complicated financial aid forms and the colleges applying their financial aid policies to your “college tax.”  It is not unusual to see Boston University giving a family $10,000 more in free scholarship money than say Northeastern.  The reason is that Boston University’s financial aid policies are more generous to those families who exhibit financial need than Northeastern’s.

What happens if this family wants to appeal their package from Northeastern?  Most parents’ first inclination is to call Northeastern touting the Boston University package and asking for more money. This is not a good idea for a number of reasons; the primary one being the parent is treating the financial aid counselor at Northeastern as they would a used car salesman. The chances of that appeal strategy netting them more money is minimal.

If a parent wants a fighting chance to get more money from a college on an appeal, they need to do three things. The first is to resell their child, not to Admissions, but to the Financial Aid office, so they will know that if they do “budge,” the student will attend their school.  The second thing is to do the math to determine the amount of unmet need. As in the example of the family at Northeastern it is $10,000.  The third thing is to determine what the colleges don’t know about their particular family situation. The only thing a college knows about a family is what they put on their financial aid form, verified by their taxes. There could be a number of extenuating circumstances that the college would not be privy to, such as a loss of income, care for an elderly parent, etc.

Financial Aid Forms Galore - CSS Profile

Students who apply to a private college will need to complete two financial aid forms to qualify for financial aid and free scholarship money.  In addition to the Free Application for Federal Student Aid form (FAFSA), 90% of private colleges will require a family to fill out their own financial aid form or the College Board form which is called the CSS Profile form.

The Profile form asks over 250 financial questions, including tax information for the most recent two-year period. The basic difference between the two forms is that the Profile form asks questions regarding the value of your primary residence, and all mortgages and equity loans against it. In addition, you are not required to electronically sign it.  There are many intrusive questions (a.k.a. nosy ones). For example, some schools will ask your religion, which in any other situation is illegal. But as the colleges have found, there is no harm in asking and the majority of parents will answer the questions, even though they are not legally required to do so.

The most glaring difference between the FAFSA and the Profile form is that a family does not receive a report stating their Expected Family Contribution (EFC) as with the FAFSA form. More importantly, what happens after the form is completed? This is where it gets complicated. Every college in the country has a different financial aid policy, therefore making it next to impossible to compare and contrast “packages.” Some schools will only send the “aid package” and will not include the cost of attendance (the all in cost). Other schools will include the cost of attendance making it easier for parents to determine the families’ cost.  It’s all very complicated and confusing. Unfortunately, there is no dictionary to make the translations from “government-ease” to the parents’ language. If a family does not like the aid package, they can appeal the financial aid decision to the Financial Aid office. Again, each school has their own policy on how to handle appeals. Our next blog will deal with appeals.

Please keep in mind that a Financial Aid office is there to take in money, not to give it out.

The Government’s Response to the FAFSA: It’s The Student Aid Report (SAR)

  If you’ve managed to survive the perplexity and stress of completing the Free Application for Federal Student Aid form (FAFSA), then congratulations are in order. It’s a complex journey and we can help you with all of the confusion. Once you’ve submitted your FAFSA you’ll receive a student aid report (SAR).  The SAR gives you your expected family contribution number (EFC). This is the dollar amount the government believes you can afford to spend on your child’s education for one year. The number is in five digits. For example, if your EFC says 15540, this reads fifteen thousand, five hundred forty dollars. If your EFC number is 03333; this is three thousand, three hundred thirty-three dollars.   

People are often confused by the EFC, they think it’s the amount of student aid they will get; in fact, it’s the dollar amount that Uncle Sam thinks you can afford to spend on college. Understanding your EFC can help you establish a financial plan. The lower your EFC, the more financial aid you should be eligible for. Carefully review your SAR for mistakes.  You will be able to correct any mistakes on the Information Review Form, which is on the back side of a paper version and is the last page of a computerized SAR report. If you need to make corrections to your information, click “Make FAFSA Corrections on the ‘My FAFSA’ page. You must use your Federal Student Aid PIN to access your record online. If you need additional help with your SAR, contact your school’s financial aid office or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If your mailing address or e-mail address changes, you can make the corrections online or call 1-800-4-FED-AID and ask a customer service representative to make the change for you.

All colleges that you listed on your FAFSA will get a copy of your SAR. The financial aid offices at the indicated schools will determine your financial need, according to their own financial aid policies. That being said, your EFC may differ from school to school and from year to year.

There are catch phrases that you have to be familiar with. Another name for the COA or cost of attendance is the “all in cost”, what college is going to cost you. Your “need” is the difference between the cost of college and your EFC:          

Cost of Attendance or Your “All in Cost”
– Expected Family Contribution (EFC)
= Financial Need

This “getting my kid into college” process is complicated stuff, we understand that. Check our website www.collegeplanningservices.org where we offer helpful tips.  It’s always a good idea to hire a professional college planner; it’s his/her job to help you make sense these annoying applications and better yet, help you fill them out correctly. The College Board reports that 90% of all FAFSAs are filled out with errors or inconsistencies. A good college planner will review your finances, tell you which colleges offer the most free scholarship money and inform you about the numerous ways to pay your tuition bill.

Photo courtesy of  mymcpl.org

Divorce and the FAFSA - which parent should file?

 It all starts with FAFSA!  The Free Application for Federal Student Aid, one the most significant yet perplexing applications that parents of college bound students will encounter.  A major source of confusion for undergraduate students with divorced or separated parents is: Which parent should fill out the FAFSA? 

The custodial parent is the parent that the child has lived with the longest during the preceding twelve months; this twelve month period is the twelve month period ending on the FAFSA application date, If both parents have shared custody equally during the past twelve months, the parent who has provided the majority of the financial support is the one who should fill out the FAFSA. Biological parents who never married are considered the same as parents who are divorced or separated.  Child support received from the non-custodial parent must be included on the FAFSA.

Financial Aid is not a lottery, filing first does not increase your likelihood of receiving aid; your information must be accurate. You must apply for a PIN number when filing the FAFSA.  This information can be found at The Federal Student Aid Web site @ http://www.pin.ed.gov/PINWebApp/pinindex.jsp. Filing errors could compromise the amount of aid could be entitled to. Colleges will verify supplied information by requesting a copy of your 2010 tax return. Remember penalties for FAFSA misrepresentation include a $20,000 fine and the possibility of a felony conviction. 35% of all parents do not fill out the FAFSA because they feel that they will not qualify for any financial aid. These people are misled by their assumptions if you do not complete a FAFSA form your child will not qualify for the Federal Stafford Loans.  Don’t forget that FAFSA must be completed all four years of college, not just the first year.

Never leave a field blank on the application, if FAFSA asks for a dollar amount and you are uncertain about the figure, use a zero, never use decimal points.  Haste makes waste filing errors could compromise the amount of aid could be entitled to. The College Board reports that 95% of FAFSA forms contain errors or inaccuracies.  Therefore, using a professional to help you to complete your FAFSA is a wise decision.  

Beware of the Scholarship Scam

There are all too many hustlers out there trying to separate you from your wallet. From TV miracle gizmos to foreign email schemes, most of us are skeptical enough to avoid the come on. But in the gentrified world of scholarships where hard-working parents are looking for some help to cover tuition bills, some of us might not suspect a swindle in the making.

Scholarship scammers prey upon families who need money for college - which is just about everybody, so unless you're astute enough to know what pitfalls to watch for, anyone can be a potential target. But by informing yourself, you will be better able to discern legitimate scholarship opportunities from a swindle.

Generally speaking, if something sounds too good to be true, it most likely is. Here are some red flags that should trigger a scam alert:

"The scholarship is guaranteed or your money back."
"You can't get this information anywhere else."
"I just need your credit card or bank account number to hold this scholarship."
"We'll do all the work."
"The scholarship will cost some money."
"You've been selected by a 'national foundation' to receive a scholarship."

The Federal Trade Commission, which works to prevent fraudulent, deceptive and unfair business practices, also provides lots of information to protect parents themselves from a scholarship scam shake down. There is even a link on the FTC website to file a complaint about shady scholarship programs.

So, don't get hustled. Get help.

Photo by iChaz via Flickr.