With economic pressure growing, college students might opt to save some money and stay out of debt by staying closer to home and attending a local community college or state university. While gas is expensive, the short commute is almost certainly less expensive than paying for room and board when compared to living with the parents for a few more years.
Most local public colleges are subsidized with state or local taxes, so the price of tuition is almost certain to be lower than any comparably sized private school. Classes may be a little bit more crowded and the professors are probably less known, but that doesn't necessarily mean that the quality of education and opportunity isn't a good deal. Much of what you'll get out of college is directly related to the time and effort you put in - whether or not you read thoroughly, seek out additional sources of information, and/or participate in the organizational experiences the school offers.
Finding money for college through scholarships can be a lot easier at the local level, too. This is especially true if you've been active in the community and established a record of service and participation in events and projects and clubs. These groups love to recognize and assist their members who continue to grow professionally and support the causes that bring the individuals together - and a college education is one of the best ways to support a person's professional development. City and state funds might also offer public scholarships for residents, for example Florida's Bright Futures Scholarship pays for 75% or 100% of the tuition bill of Florida students who meet eligibility requirements (Bright Futures Scholarship).
If there's a specific school for a certain major or education niche that you're set on and completely dedicated to, then it might just be worth the extra cost. If you're looking for a general introduction to higher studies, then there's no reason to mortgage your future income through student loans so you can spend time in college classes trying to decide what you actually want to do.
Saturday, May 31, 2008
Student Loans in Short Supply
Economic problems and financial sector problems aren't only affecting the job market. Students looking for college loans might be in for a surprise next year as many companies and lenders leave the business altogether. After Congress reduced subsidies and the subsequent profitability of the federal lending program, a wave of credit defaults threatened to freeze all liquidity and usher in a new era of corporate and municipal bond failures.
While the deflationary doomsday scenario has been averted by creative (and expensive) Federal Reserve actions, many banks and student lending companies are hesitant to get into a risky loan business at low interest rates and few safeguards against the every increasing risk that many of these graduates won't necessarily find jobs that can afford to pay back their student loans.
The typical response of an investor (lender) under these economic circumstances is to raise interest rates for risky borrowers - and this means getting out of the federal program and getting into more private loan offerings. The downside is this becomes a lot more expensive for the student, and family credit history may end up influencing costs and eligibility.
If student loans become scarce, colleges may face declining enrollment. The chain would then reduce budgets, and force the institutions into cost-cutting measures. Perhaps if rationing needs to take place, it might make sense for it to be aimed at the most academically focused college students rather than the most financially secure. The best way to achieve this is to let the student loan industry operate in a free market without federal supports, and allow private and public merit-based and need-based scholarships provide an outlet for students needing financial assistance.
Like housing, perhaps its time for tuition prices to come down a bit. We like to think that spending more means better results, but sometimes the economic cycle calls for a contraction and a re-evaluation of priorities. Is our priority to make college so expensive that most graduates have student loan debt for 20+ years? I don't think so.
While the deflationary doomsday scenario has been averted by creative (and expensive) Federal Reserve actions, many banks and student lending companies are hesitant to get into a risky loan business at low interest rates and few safeguards against the every increasing risk that many of these graduates won't necessarily find jobs that can afford to pay back their student loans.
The typical response of an investor (lender) under these economic circumstances is to raise interest rates for risky borrowers - and this means getting out of the federal program and getting into more private loan offerings. The downside is this becomes a lot more expensive for the student, and family credit history may end up influencing costs and eligibility.
If student loans become scarce, colleges may face declining enrollment. The chain would then reduce budgets, and force the institutions into cost-cutting measures. Perhaps if rationing needs to take place, it might make sense for it to be aimed at the most academically focused college students rather than the most financially secure. The best way to achieve this is to let the student loan industry operate in a free market without federal supports, and allow private and public merit-based and need-based scholarships provide an outlet for students needing financial assistance.
Like housing, perhaps its time for tuition prices to come down a bit. We like to think that spending more means better results, but sometimes the economic cycle calls for a contraction and a re-evaluation of priorities. Is our priority to make college so expensive that most graduates have student loan debt for 20+ years? I don't think so.
Friday, May 30, 2008
College Graduates Face Tough Job Market
Its that time of year for another class of college graduates to celebrate the success of a completed diploma.
Unfortunately for many graduates, the transition from school to the working world might not be as pleasant as it has been for Americans in the past. Nominal wages are flat across the entire economy, and versus inflation that really indicates that wages are down relative to the cost of living. Entry-level wages are down in nominal terms, which means they're significantly down in real terms. Graduates in investment and financial sectors might not find many job openings after the recent string of layoffs, mergers, and cost-cutting in the banking sector. Real estate continues to slow down as well...But demand remains strong in medicine, education, and the sciences.
There's a risk of increased defaults on student loans, as the loans were issues when students were expected to enter an ever-increasing labor/wage market. Students without much debt can adjust consumption, costs, and expectations, but if they're loaded with loans already they may not have any way out of the cycle at this point. Unfortunately, this is just going to create an additional drag on financial sectors and lending companies!
Enjoy the graduation, the ceremonies, the parties. Don't get upset if you're not rich as soon as you graduated, its definitely not your fault that the economy is slowing down and under the weight of heavy public debt. Imagine, things would probably only be worse trying to secure a job without that degree.
Make use of all resources available, from online job searches to campus placement programs. It might not be too late to take on an internship if you can live at home for a few extra months. Jobs at the upper level of institutions will be opening up in the coming decade as more baby-boomers retire from the work-force.
Unfortunately for many graduates, the transition from school to the working world might not be as pleasant as it has been for Americans in the past. Nominal wages are flat across the entire economy, and versus inflation that really indicates that wages are down relative to the cost of living. Entry-level wages are down in nominal terms, which means they're significantly down in real terms. Graduates in investment and financial sectors might not find many job openings after the recent string of layoffs, mergers, and cost-cutting in the banking sector. Real estate continues to slow down as well...But demand remains strong in medicine, education, and the sciences.
There's a risk of increased defaults on student loans, as the loans were issues when students were expected to enter an ever-increasing labor/wage market. Students without much debt can adjust consumption, costs, and expectations, but if they're loaded with loans already they may not have any way out of the cycle at this point. Unfortunately, this is just going to create an additional drag on financial sectors and lending companies!
Enjoy the graduation, the ceremonies, the parties. Don't get upset if you're not rich as soon as you graduated, its definitely not your fault that the economy is slowing down and under the weight of heavy public debt. Imagine, things would probably only be worse trying to secure a job without that degree.
Make use of all resources available, from online job searches to campus placement programs. It might not be too late to take on an internship if you can live at home for a few extra months. Jobs at the upper level of institutions will be opening up in the coming decade as more baby-boomers retire from the work-force.
Friday, February 8, 2008
Don't be Discouraged: Financial Aid can only Help
Financial aid can be a time-consuming and complicated process, but try to not get discouraged. There are a lot of forms, essays, interviews, and research involved, but try to keep focused on what the real goal is. A college education is more than a piece of paper: Its a chance to meet new people, experience new things, and take your knowledge to the next level. College graduates will typically make a lot more money than those who don't get a degree, and all the extra opportunities you'll be able to afford in your lifetime will all just be residual benefits of your college diploma.
Even if you're working hard and keeping your grades up, money issues can get in the way of this goal and the financial benefits of your education.
FAFSA is like the entry point for the financial aid process, and many consider it the most frustrating, as well. Don't let the hype get you worried: filing a FAFSA online has never been faster or easier. Check out the link to the official federal FAFSA website, and make a note of the items you'll need before finishing the application. Mostly, you'll need last year's income and tax forms so you can offer proof of your income and/or your family's income if that applies.
Go ahead and register for your unique, individual PIN number. Although they have sped up the process this year, it can still take a little while for the request to be processed and the number issued.
Once you have your annual income statements and related financial information - and your PIN - you're ready to get the application going. It won't take long if you're prepared, and you can receive a Student Aid Report (SAR) that includes your Expected Family Contribution (EFC) in just another day or two!
Remember, organize and prepare so you don't get frustrated. Don't dwell on horror stories or complaints from people who had troubles with it. Every cent of aid you get is helping you toward your goal and you can't get any aid without trying.
Even if you're working hard and keeping your grades up, money issues can get in the way of this goal and the financial benefits of your education.
FAFSA is like the entry point for the financial aid process, and many consider it the most frustrating, as well. Don't let the hype get you worried: filing a FAFSA online has never been faster or easier. Check out the link to the official federal FAFSA website, and make a note of the items you'll need before finishing the application. Mostly, you'll need last year's income and tax forms so you can offer proof of your income and/or your family's income if that applies.
Go ahead and register for your unique, individual PIN number. Although they have sped up the process this year, it can still take a little while for the request to be processed and the number issued.
Once you have your annual income statements and related financial information - and your PIN - you're ready to get the application going. It won't take long if you're prepared, and you can receive a Student Aid Report (SAR) that includes your Expected Family Contribution (EFC) in just another day or two!
Remember, organize and prepare so you don't get frustrated. Don't dwell on horror stories or complaints from people who had troubles with it. Every cent of aid you get is helping you toward your goal and you can't get any aid without trying.
Thursday, February 7, 2008
Ivy League Grades and Scholarships
So, you say you want to go to an ivy league college? Well, you're going to need great grades. Heck, you might need perfect grades unless you have a good excuse like advanced placement (AP) and honors courses as well as a full list of extra-curricular activities.
Some good ideas are habitat for humanity, church and religious community organizations, and other groups with a charitable focus. Not only does working with and leading within these groups provide some functional real-world experience, it shows that the student (applicant) is interested in doing good for the society. Its not like that is a requirement, but it definitely helps!
How can I afford it? College Tuition is Expensive
Many Ivy league schools have significant scholarship funds set up for bright and ambitious students. Harvard and Yale recently updated their financial aid systems to be more generous to lower-income students. Unless your parents can afford the ivy league to begin with, you'll probably find a lot of tuition assistance from these schools. That is, if you can get in!
What are the most important ivy league admission factors?
Well, all of them! No two students have the same exact application and the top variables can change. Maybe MIT is more focused on academic scores in math and science classes, and Yale is probably more interested in seeing how you've gotten experience leading people and organizing projects.
Work on your weaknesses and take your strengths to the next level.
Some good ideas are habitat for humanity, church and religious community organizations, and other groups with a charitable focus. Not only does working with and leading within these groups provide some functional real-world experience, it shows that the student (applicant) is interested in doing good for the society. Its not like that is a requirement, but it definitely helps!
How can I afford it? College Tuition is Expensive
Many Ivy league schools have significant scholarship funds set up for bright and ambitious students. Harvard and Yale recently updated their financial aid systems to be more generous to lower-income students. Unless your parents can afford the ivy league to begin with, you'll probably find a lot of tuition assistance from these schools. That is, if you can get in!
What are the most important ivy league admission factors?
Well, all of them! No two students have the same exact application and the top variables can change. Maybe MIT is more focused on academic scores in math and science classes, and Yale is probably more interested in seeing how you've gotten experience leading people and organizing projects.
Work on your weaknesses and take your strengths to the next level.
Saturday, February 2, 2008
How Colleges Benefit from Financial Aid
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Higher Ed/: Financial Aid is like Popcorn
After what looks like a small break from blogging, there's a great new post at HigherEd.blogspot.com
If you've ever wondered why higher education institutions are so willing and 'generous' with financial aid, please check out this link and review the graphs. Like any product or service, demand is highest at the lowest cost - but whoever is selling the product or service wants to maximize revenue by finding the best combination of price and demand.
Taken further, schools can apply what they know about demand and what they know about their applicants - matching the most cost-sensitive students with the best financial aid plans and by charging more to the students who are likely to be able to afford it.
I believe this post answers some questions about why colleges and universities have an incentive to provide financial aid - but it also raises more questions.
Is the net effect of financial aid to assist lower-income students, or just make a college education more expensive overall? The debate has been going on for a long time, and there's no easy answers to that one.
Higher Ed/: Financial Aid is like Popcorn
After what looks like a small break from blogging, there's a great new post at HigherEd.blogspot.com
If you've ever wondered why higher education institutions are so willing and 'generous' with financial aid, please check out this link and review the graphs. Like any product or service, demand is highest at the lowest cost - but whoever is selling the product or service wants to maximize revenue by finding the best combination of price and demand.
Taken further, schools can apply what they know about demand and what they know about their applicants - matching the most cost-sensitive students with the best financial aid plans and by charging more to the students who are likely to be able to afford it.
I believe this post answers some questions about why colleges and universities have an incentive to provide financial aid - but it also raises more questions.
Is the net effect of financial aid to assist lower-income students, or just make a college education more expensive overall? The debate has been going on for a long time, and there's no easy answers to that one.
Thursday, January 17, 2008
Scholarships for African Students in China
China has an established relationship of building diplomatic ties in Africa. Like many growing financial powers, China has an interest in promoting education on a world-wide scale. As the economy of friendly nations grows, so does the economy of their trading partners. As one of the world's largest exporters, China is always looking for ways to build new markets and strengthen international friendships, and these scholarships have been a great part of that strategy.
A new day has come: China and Africa
Is America falling behind in global financial aid and international scholarships? Lately, it has become more difficult for foreign students to enter America on education Visas. Since the economy is global now, America runs the risk of isolating itself from other developing countries. Thanks to more scholarships than ever, America's competitors will be better educated and more financially stable than they have been in the past. This means America should be offering more scholarships and encouraging more students to come to America for college. Unfortunately, we seem to have the exact opposite going on!
In keeping with this theme, check out some of these other great scholarships for study in China. In the future, I will also be adding links to scholarship programs for Chinese students who want to travel abroad.
A new day has come: China and Africa
Is America falling behind in global financial aid and international scholarships? Lately, it has become more difficult for foreign students to enter America on education Visas. Since the economy is global now, America runs the risk of isolating itself from other developing countries. Thanks to more scholarships than ever, America's competitors will be better educated and more financially stable than they have been in the past. This means America should be offering more scholarships and encouraging more students to come to America for college. Unfortunately, we seem to have the exact opposite going on!
In keeping with this theme, check out some of these other great scholarships for study in China. In the future, I will also be adding links to scholarship programs for Chinese students who want to travel abroad.
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