college Articles

Today's parents face a daunting challenge among the rising costs of living, the high cost of raising a child and an uncertain economic future many parents are highly afraid of how they can pay for their child's college. College costs are staggering and experts predict that they will only get worse. According to the College Board, the current average cost (tuition, fees, books, room and board) for a four-year state school is $12,800 per year for an in-state resident and $19,200 for an out-of-state resident. A four-year private school is estimated to cost $27,700 per year. The result of this is that your child's college education could cost over $100,000 in today's dollars. Yet the good news is that whether you have started early or have college right around the corner there are things you can do. Here are some tips on how to pay for your child's college:

"How to pay for your child's college" »

Posted by K at 07:35 AM | Permalink | Comments (0) | TrackBacks (0)

College families applying for financial aid should complete their FAFSA (Free Application For Federal Student Aid) as soon after January 1st as possible. The financial aid process is not user-friendly, and with an endless number of pitfalls it is far too easy to lose some or all the aid they are actually eligible for.

Many fail to apply because they don't know how, assume they are not qualified, or are intimidated by this complicated and confusing process. With far more qualified applicants than desks in all of America's colleges, it is reasonable to expect a system intentionally designed to eliminate all but the most knowledgeable and persistent applicants.

According to the US Dept. of Education, over 90% of all financial aid applications submitted are rejected for errors and inconsistencies! As financial aid is awarded on a first-come, first-served basis, the time to resubmit the forms results in thousands of dollars of lost financial aid to eligible families who braved the college funding process blindly and alone.

That being the case, what's a family to do with one or more students who will face as much as $300,000 - $400,000 to send them to a 4-year college? Many rely on the advice of guidance counselors, college financial aid officers (FAO's), and even their accountants. Sadly, these families are not getting all of the guidance they need and are in for a rude awakening.

"Revealed - The Truth About College Financial Aid" »

Posted by K at 09:29 AM | Permalink | Comments (0) | TrackBacks (0)

The importance of developing strong relationships with high school teachers and counselors as early as possible cannot be overemphasized. An extremely well written, all-telling letter of recommendation (LOR) can absolutely make the difference of being accepted or rejected to any college.

Students at the top of one or more of their classes should first ask those teachers to write a great LOR and choose teachers who have expressed a genuine interest in their future. However, if a teacher balks, is the least bit hesitant or shows no enthusiasm, approach another teacher instead. A less than exemplary LOR is virtually worthless.

Most colleges require LOR's from guidance counselors, and some ask for one from an English, Science and/or Math teacher. Additional LOR's other than those requested in the school's application are also essential. Send no more than two, unless a third is absolutely extraordinary. Students with less than superior numbers stand a far better chance of being accepted with outstanding LOR's.

Unless the student is an athlete, any teacher is preferable to a coach unless they teach a core subject, such as English, Chemistry, History, or Math. In some cases, the writer actually asks the student for an outline of what they should write. Show them your resume; you do have one, don't you? The following are excellent choices for additional LOR's:

"College Letters Of Recommendation - A Must" »

Posted by K at 09:27 AM | Permalink | Comments (0) | TrackBacks (0)

The essay is the most crucial piece of writing the student will submit to a college. This is the college's first exposure to the student, and first impressions are lasting. A memorable essay contains the student's Kodak moments interlaced with some less than blissful adventures to create necessary drama.

Students must begin by choosing the right topic, one that will be well received by the admissions committee. The subject matter and its degree of difficulty say volumes about the character of the author, and the quality of the essay is dependent on their ability to respond to the subject matter.

Select a most thought-provoking, stimulating subject, as a "we dare you to compete for the privilege of attending our school" challenge. In other words, if there's a literary masterpiece inside crying out to be written, now is the time to unleash it.

Students writing about their favorite anything should be passionate about it. It's not enough just to say you love something or someone. You must explain why in no uncertain terms. If writing about how someone was admired, then how that person influenced the student's life, how the student appreciated or fashioned their lives in their light should be factored in.

Students often write about themselves, as the subject matter requires no research. However, a necessary and serious effort is sorely needed to make the journey stand out. Be it overcoming adversity or how the past summer was spent, the writing must appeal to the reader.

Students should avoid writing too vividly about any traumatizing experience. The essay can be gripping but not horrifying. Remember, the object here is to capture the reader's imagination. Highly controversial subjects such as abortion or the death penalty are best avoided.

"The All-Important College Application Essay" »

Posted by K at 09:24 AM | Permalink | Comments (0) | TrackBacks (0)

You're ready to submit your applications, and at this point, except for the waiting, the worst is basically over. However, the way you submit the student's paperwork is just about as important as what's being submitted.

Recommended order: (1) The application; (2) the essays, attached to the application unless there are specific instructions to the contrary; (3) a resume (you do have one, don't you?), stapled together, but not to the application or the essays; (4) a special essay titled, Why I Must Attend the University of ---, or We All Know What XYZ U Has to Offer the World, Here's What I Have to Offer XYZ; paper clipped to the resume. Attach a large paper clip to all of the above to ensure everything stays in the proper order and send the entire package overnight or 2nd day with a signature confirmation. Whew!

If your plan is to submit the application electronically - don't, unless it's the only alternative. You may accidentally send the application before it's completed, send it with errors, or worse, into cyberspace. What will you do then? Be sure to print a copy first, or you'll have no record of what was sent.

There are other electronic pitfalls such as: the transmission could arrive incomplete, get garbled with your name on the "address" line and all the rest of your information pushed down, out of place, never to be processed. If anything goes wrong, it will not be acceptable to the school, and an otherwise qualified applicant will be called out on strikes before they even get up to bat. Don't let this happen to you - mail it.

"Read This Before Submitting College Applications" »

Posted by K at 09:21 AM | Permalink | Comments (0) | TrackBacks (0)

Sending your kids to college has never been more difficult or more expensive, and outstanding grades no longer guarantee admission. With student competition at an all-time high, students are facing the toughest admissions committees in history, and parents are reeling at soaring tuition costs, and a financial aid system designed to eliminate all but the most knowledgeable and persistent applicants.

America's unsung higher education crisis affects families from all walks of life. Most parents are not skilled in college admissions, and the vast majority braving the financial aid process without professional help fall victim to a system plagued by complication and confusion. According to the Dept. of Education, nine out of ten applying for financial aid are initially rejected for errors and inconsistencies. Misinformation is rampant, and from so-called reliable sources which adds to the problem.

Yet, despite these obstacles, and contrary to what most college-bound families believe, paying for college is not your main concern! Getting accepted to college is the number one priority! All the financial in the world aid is useless without that coveted admission ticket.

"Getting Into College Is No Longer A Numbers Game" »

Posted by K at 09:19 AM | Permalink | Comments (0) | TrackBacks (0)

1. In the financial aid formulas, students have an income protection allowance of $3,000, but every dollar earned over that it will cost them 50 cents in lost financial aid.

Example: $5,000 earned, 3,000 exempt; $2,000 @50% = $1,000 lost in financial aid; $383 lost in social security and medicare taxes @7.65%.

If the student earns more than $5,000, in addition to ss and medicare taxes, there is also federal income tax.

Example: $8,000 earned, 3,000 exempt; $5,000 @50% = $2,500 lost in financial aid. Tax consequences: $5,000 exempt; 3,000 @10% federal + 8,000 @7.65% ss & medicare = $912 lost in taxes.

2. In the financial aid formulas, students have no asset protection allowance. Every dollar they have will be assessed at 20% per year which only compounds the problem if they don't plan properly.

Sadly, virtually no student is aware of these consequences, and too few parents are.

3. Here's a real zinger. In the financial aid process, if the student will attend one of 225 elite colleges, that in addition to the FAFSA require the CSS Financial Aid Profile, and they didn't work, there will be an automatic income assessment of $1,000! The secret to avoiding this assessment, and much, much, more are all included in Getting Into College And Paying For It!

"Issues that affect every college or college-bound student who works" »

Posted by K at 01:19 PM | Permalink | Comments (0) | TrackBacks (0)

There's only one moment in time when the student's paperwork shows up in the admissions office, and it better shine. Contrary to popular belief, colleges initially look to reject students, as far more qualified applicants apply than can attend. Qualified students must become acceptable and gain that decisive edge, because even those with stellar grades and SAT's can face rejection. This past year, Harvard rejected 80% of all valedictorians who applied; the reason - sameness.

It all begins in the 9th grade, when students enter high school, and here's what they must accomplish by the time they apply to college: successfully negotiate for the best grades; learn a minimum of ten new words weekly; only belong to a few clubs, but be an officer in each one; amass 100's of hours of community service (strive for more than 1,000); obtain extraordinary letters of recommendation; write dozens of practice essays; excel in AP and Honors classes, and make official college visits. When a student accomplishes all this, they are guaranteed that all-important edge when it comes time to apply.

"How To Apply To College With That All-Important Edge" »

Posted by K at 09:17 AM | Permalink | Comments (0) | TrackBacks (0)

Most families confuse Early Admission, Early Read, Early Decision, Early Action and Early Notification. Learning these and other admissions tactics will determine the cost and location of your student's college years.

Early Admission: Typically, the student applies at the beginning of the junior year and goes through the entire process earlier. However, Early Admission is seldom used, as it only applies to the most exceptional students who complete all high school requirements any time prior to the 12th grade. It is strongly recommend that the student demonstrate a college level of social and emotional maturity before implementing this strategy. Schools often get into a bidding contest for the truly exceptional student, some offering full scholarships for the privilege of having such an accomplished young man or woman. Use with caution!

Early Read: Many colleges offer to calculate your EFC, (expected family contribution; the minimum the federal government determines your family will pay for college). Without obligating the student to apply, simply send them all your financial information at the beginning of the 12th grade. If the student eventually applies, the aid offer has already been predetermined. Surely, you wouldn't want the IRS to calculate your taxes, so why let a college determine your EFC? Avoid this at all costs!

Early Decision: A program with earlier deadlines and notification dates than regular decision. Students sign a binding contract and commit to attending that school. If accepted, they must immediately notify all other schools to withdraw their applications. If money is not an issue, Early Decision is highly recommended, because it will give the student a decided advantage in the admissions process. However, if financial aid is an issue, beware, for the student must attend that college regardless of financial aid offered. While Early Decision adds some leverage for acceptance, devastating financial consequences can result as an inadequate financial aid package must be accepted. Always recommended at Princeton, as they no longer offer loans. Use with extreme caution!

"You Must Know The Early Bird Menu Before Applying to College" »

Posted by K at 09:15 AM | Permalink | Comments (0) | TrackBacks (0)

Here are some unique sources of aid for non-traditional Hispanics, etc.

1. The ambiguous non-custodial parent strategy, which has reduced the cost of college in some cases by as much as 90%;

2. The winter clothing allowance for students from the South attending college in the frigid North netted one student an additional $2,600;

3. The "no work" work-study award has been worth as much as $8,000 by graduation

"College Financial Aid for Hispanics" »

Posted by K at 01:22 PM | Permalink | Comments (0) | TrackBacks (0)

America's colleges can no longer accommodate all the qualified students who apply. As a result, schools reject far more applicants than they accept. Their goal is to weed through the qualified masses and fill their halls with resourceful, well-rounded, acceptable students. In today's intensely competitive admissions process, knowing how to make a student acceptable greatly increases one's chances of being admitted. As no two schools follow the same guidelines, it's safe to assume that they go about it something like this:

The admissions committee assembles around a large conference table. Everyone receives a huge pile of folders containing transcripts, applications, essays, countless letters of recommendations, etc., and no more than 15 to 20 minutes can be spent on any one applicant. They begin by eliminating unqualified students - those deficient in the numbers.

Next, they look for professionally prepared applications with thought provoking, interesting, and grammatically flawless essays. A Resume detailing academic life, extra curricular activities including community service hours, and a cleverly written special essay, perhaps entitled, "Why I Must Attend The University of..." will weigh heavily in the final decision.

Acceptable college students are made, not born, by families determined to see them succeed. To create one and ensure they have every possible advantage to succeed, the stage must be set early in preparation for high school. Academic achievement is no accident; acceptable status is the sole responsibility of the student and their family.

"How To Be An Acceptable College Applicant" »

Posted by K at 09:13 AM | Permalink | Comments (0) | TrackBacks (0)

Those families who made their best guess as to which of the Education Tax Incentives would save them the most on their income taxes have put their 2005 tax returns to bed. However, for many, a sigh of relief is a bit premature. Countless families, even many assisted by professional tax preparers, chose incorrectly and have significantly overpaid the IRS - AGAIN!

Mark Twain once said, "No man's life, liberty, or property are safe while the legislature is in session," and never have truer words been spoken.

On June 6, 2001, President Bush signed HR 2014 into law. This created The Tuition and Fees Deduction, based on Senator Charles E. Schumer's (D-NY) Make College Affordable Act. However, the president signed a watered down version and consequently, it doesn't work for the families who need it the most.

Senator Schumer had been tirelessly championing legislation that would have allowed college families, including independent students, to deduct a major portion of their college expenses on their tax returns. The Senator's Make College Affordable Act would have given millions of American families the opportunity to deduct up to $12,000 per year to help reduce the rising costs of tuition and related expenses. Unfortunately, and to the detriment of untold numbers of taxpayers, the Tuition and Fees Deduction allowed a mere deduction of $3,000 for tax years 2002-2003, $4,000 for tax years 2004-2005, and in 2006 it expired.

"College Families Overpaid The IRS - Again" »

Posted by K at 09:11 AM | Permalink | Comments (0) | TrackBacks (0)

Contrary to popular belief, much of that anticipated debt can be legally eliminated, and before it's too late. While so many families stress out over the prospect of how much they and their student(s) will incur during the college years, there are a number of strategies, all legal, to make any college affordable.

Sadly, most families are not aware of the fact that in the financial aid formulas, students have no asset protection allowance. For college year 2007-2008, they will lose 20% of every dollar they have in: cash, savings accounts, stocks, bonds, savings bonds, mutual funds, UGMA, UTMA accounts, a farm, a business, mortgages held and the net value of any real estate owned. However, if the student is about to enter college and is unfortunate enough to have a hefty bank balance or brokerage account, it already cost them 25% or 35%, depending on the college!

Parent assets are subject to a different formula, and it also depends on which school the student will attend. For eligibility purposes, there are 2 categories of schools. Category 1 includes a few state colleges plus approximately 220 elite private schools. In addition to the FAFSA (Free Application For Federal Student Aid), they also require the CSS Financial Aid Profile. If you thought the FAFSA was difficult, this form is a nightmare, and pity the poor family that's divorced, separated, owns a business or a farm! These colleges take into account all of the above plus home equity, Education IRA's, and 529 Savings Plans. Category 2 schools (all the rest) only require the FAFSA and exclude the value of the primary residence and a farm, if the family lives on it.

"How To Pay For College Without Going Broke" »

Posted by K at 09:07 AM | Permalink | Comments (0) | TrackBacks (0)

Believe it or not, most colleges salivate at the prospect of a needy student with a 529 Savings Plan. It enables these "poor" institutions of higher learning to reduce financial aid dollar for dollar and enrich their billion dollar endowment funds.

529 Savings Plans are a veritable hazard to the average family, and must be avoided at all costs. In the financial aid formulas, students have no asset protection allowance and the following are considered student assets: cash, savings accounts, stocks, bonds, savings bonds, mutual funds, UGMA, UTMA accounts, a farm, a business, mortgages held and the net value of any real estate owned. For college year 2007-2008, 20% of every dollar they have will be counted against them. However, if the student is about to enter college and is unfortunate enough to have a hefty bank balance or brokerage account, it already cost them 25% or 35%, depending on the college. Parents are more fortunate; they're only assessed at 5.6% over their allowance which increases with age. Example: older parent age 48 in a 2 parent family is $45,000; a single parent age 45 has only $19,700.

"Billion Dollar Swindle - 529 Savings Plans" »

Posted by K at 09:05 AM | Permalink | Comments (0) | TrackBacks (0)

In today's highly competitive admissions process, families must never lose sight of the fact that nothing is more important to parent or student than an acceptance letter! Your second priority is how you're going to pay for it.

Planning for college can begin as early as birth and proper financial planning in the early years can make all the difference when it comes time to have to cough up all that cash - as much as $180,000 (2006). Here are some of the best ways to save for college:

Custodial Accounts: With Uniform Gift or Uniform Transfer to Minors Act Accounts (UGMA or UTMA),
parents, grandparents, etc. can each contribute up to $12,000 per student per year (2006). This money can be used for college or any other purpose. While the money remains in the student's name, the custodian, usually a parent has absolute control over the account. UGMA accounts accept cash only. UTMA accounts accept cash and property.

The Downside: UGMA and UTMA accounts are irrevocable gifts considered student assets. In the financial aid formulas, students have no asset protection allowance, and are assessed (financial aid lost) 20% per year This option must be used with extreme caution.

Education IRA's a/k/a EIRA's: A single parent with an adjusted gross income (AGI) of up to $110,000, and joint filers with AGI's up to $190,000, can contribute up to $2,000 annually. Earnings accumulate tax-free and can be withdrawn tax-free without penalty to pay for a private elementary, secondary, or college education.

"Paying For College - Your Number Two Priority" »

Posted by K at 09:02 AM | Permalink | Comments (0) | TrackBacks (0)

Pity the poor student who dedicated several years of blood, sweat and tears to the Red Cross, YMCA, Kiwanis, Rotary, or any other non-profit organization, only to see all their well deserved scholarship money evaporate into thin air and wind up in the bank account of their alma mater. That's right! Virtually all organizations that award students private scholarships make a fatal error in having the check made payable to the student and the college. In that way the colleges consider it a resource to help pay for a student's education.

By the end of the school year most awards banquets are held, and worthy students are honored with these various scholarships. Very often their name appears in the paper as a recipient for all their hard work and dedication. Since the organization is primarily giving this money to be used for a student's education, they innocently ask the family where the student will be attending, and make out the check to both parties.

Most schools send out their financial aid offers between January and April, with a May 1st decision date. Now, enter the "poor" institutions of higher learning. What a kick in the teeth it is to find out when a revised award letter arrives, that the school's aid has now been reduced dollar for dollar, based on the amount scholarship received! It's usually listed as "private scholarship," "outside aid," or very often, "other."

"Billion Dollar Rip Off - Private Scholarships" »

Posted by K at 08:54 AM | Permalink | Comments (0) | TrackBacks (0)