College Planning

College Bound Stress

For those sending a child to college in September 2013, it is now time to turn your attention beyond your child’s acceptance letter to the jitters of preparing for the first year college experience. I have spent the last 29 years working with families, and it has been through this experience that I have come to identify the 10 stages of transitional stress that families encounter between May and December of their college bound year. I call it the “Graduation Leap,” and it takes your child across the chasm from the shores of childhood to the brink of adulthood. Since there is a lot of important information on this topic, it will be continued for the next few weeks. In this blog, I will outline the first five stages. In the following weeks, I will continue to discuss the remaining stages and how to employ good preparation and coping skills when dealing with transitional stress.

Stage 1 — Separation Anxiety: The weeks surrounding your child’s graduation may be filled with a heady blend of satisfaction and nostalgia. Romantic attachments may intensify, particularly if separation is imminent. The air around your child is charged with the electricity of unknown changes to come.

Stage 2 — Special Attention: As the summer winds down your child will become more aware that they are really going to college. Some kids manage to block the reality of their impending departure until they start packing. It is at this point that they begin to acknowledge

The approaching separation from family and friends, as well as the comfort of the support system of the high school environment.  Reassurance from you will help them understand that they have their family’s support and love regardless of the outcome of their college experience. Lessening the pressure for them, or at least recognizing and understanding it, makes their success in college much more likely.

Stage 3 — “Getting to Know You”: The freshman academic program may also generate severe stress. The courses a student takes in this all-important first term have a strong influence on how their first year goes; students should avoid taking too many courses or enrolling in courses that are too advanced, either of which can make a first-term freshman miserable and discouraged.

 Stage 4 — “The Honeymoon”: Freshmen arrive on campus with a myriad of expectations influenced by such films as “Animal House” and “Revenge of the Nerds.” Perhaps the strongest influence comes through carefully choreographed admission recruitment weekends that draw your child into a heightened sense of excitement and euphoria by making them feel as if they are part of campus life while not experiencing actual day-to-day living conditions. They are ready to be enthralled by everything they see, which is good because there are indeed wonderful things to see and experience, although some students may feel they are not happening fast enough.

 The Honeymoon stage is also a time when many students experiment with or extend their

experience with alcohol, tobacco, drugs, and/or sexual activity. Campus life presents them with more opportunities to do so with two additional factors: they are not under the watchful eye of their parents, and they are influenced by older college students and more experienced peers.

 Stage 5 — “The Honeymoon’s Over”: As freshmen settle into campus life the realization dawns that much of college consists of hard work coupled with some frustration and disappointment. Nothing, however, will prepare a freshman for the shock of those first papers and quiz grades because they are almost always respectively tougher and lower than what a student was used to in high school. This can be particularly difficult for students who ‘coasted’ through high school, and some may encounter unexpected hardships during this stage.

 In next week’s blog, I will discuss the final five stages and how to best deal with transitional stress. The moral of this blog is “forewarned is forewarned.”

The Dangers of Awarding Merit Scholarships

The awarding of merit scholarships is a dangerous practice for colleges and universities in many ways. For most colleges and universities, student financial aid is the fastest growing expense item. Each year, more colleges are less able to provide full financial aid support for all admitted students who are needy. Awarding merit scholarships exacerbates these problems. 

Some higher education officials argue that merit scholarships and so-called need-based scholarships come from different pots of funds. The truth is that for the vast majority of institutions, a dollar spent on merit scholarships is a dollar that otherwise could be invested in support of the economically deserving student. I have no doubt that awarding merit scholarships to students who aren’t needy is a major factor in rising tuitions, a chicken and egg scenario.

Others in academia suggest that if scholarships based on athletic prowess are appropriate, surely scholarships based upon academic prowess are more appropriate, I think not. The system of college athletic scholarships is hardly one that we can be proud of; given widespread misuse and abuse and the dismal rate at which athletic scholarship winners earn degrees, the system provides no useful model.

This form of tuition discounting, not based on financial need, but on SAT scores, is overpoweringly seductive to colleges that are seeking to upgrade the academic prowess of its student body and that in the absence of such discounting, there would be an unenrollment of student with high SAT scores. If in the long term, competition requires all colleges to “buy” their best students with merit scholarships, higher education’s already formidable financial challenges may become overwhelming, particularly for the less well-endowed and under enrolled institution. 

How will administrators and governing boards respond to the chorus of criticism about excessive tuition increases, particularly when critics figure out that a major impetus for these increases is the subsidy inherent in merit scholarship programs? How effective will the pleas to legislators be for more generous funding of need-based scholarships when they realize that colleges are using their own resources to attract students who do not qualify for them?

The growing practice of granting merit scholarships is destructive to the country’s higher education system, and will, in the long run, reduce access for academically able but financially disadvantaged students. The nation can ill afford these social costs.

Perspective on College Scholarships

This nation has a long tradition of providing access to higher education to students who are academically qualified. Financial aid in the form of scholarships has been essential in assuring that access.

Three decades ago, scholarship funds came largely from the federal and state governments. In the last 10 years, colleges and universities, both private and public, have “recycled” their own tuition dollars into financial aid in what some have called a high-tuition/high-aid policy.

Such a policy can make good sense for the individual institution and for society. At both public and private institutions with reasonable endowments, tuition revenue covers less than the full cost of education. In effect, even a full-pay student receives a scholarship equivalent to the difference between the per-student cost of education and tuition. The belief that wealthier families should receive less of a subsidy so that greater subsidies can be provided to needy students is both fair and consistent with higher education’s strong commitment to broad access.

This fairness principle is achieved only if the financial aid is based on need. In the last few years, an increasing number of colleges and universities have commenced what strikes me as both unfair and a dangerous practice: using financial aid to attract the more academically qualified students, including many from affluent families who can well afford the tuition. These awards are called “merit scholarships”. 

Tuition discounts vary widely as colleges strive to increase their enrollments and thereby increase their marginal revenue. A college may adjust tuition discounts based on the perceived desirability of the student. The applicant with a 4.0 high school GPA or the student body president, can hold out for a larger discount on tuition than the applicant with a 3.5 GPA or the high school yearbook editor.

The most academically competitive colleges and universities resist this move to tuition discounting. They operate at full capacity. The teaching enterprise and student services would surely suffer if funds were shifted from them to finance merit scholarships.

In next week’s blog, I will discuss the awarding of merit scholarships and how this can be a dangerous practice for colleges and universities.

 

Plan now for the college application process if you are the parent of a high school student

Many high school seniors will be taking full advantage of applying early to college this fall, some simply because they don’t have the patience to wait until next May to know where they will be going, and some think they may have a better chance of acceptance if applying early. Early decision and early action allow students to make their applications by November 1st and receive an admission decision typically in December by the 15th, just in time for the holidays.

It is estimated that 50% of students will apply early in the fall of 2012 and 80% of this group won’t decide to make their applications until mid-September. Some high schools predict that 70% of their seniors will apply early. It is important to note that financial aid forms must be completed by November 15th, full 2-½ months earlier than the regular decision cycle.

Early decision acceptance plans are binding and students should only apply to one school via early decision (though many apply to more). If a student is accepted and the school offers an adequate financial package, the student is expected to attend. Early action acceptances are not binding; the student can apply to several schools via early action. The student can accept the offer immediately or wait until May 1 to decide. In many cases colleges accept a high percentage of students applying early, it could be as high as 40% at some elite schools, where the same schools may only accept 20% of the regular applications.

There is a new process being offered by some of the highly selective colleges. Single-choice early action is new and it is not binding. The student can only apply to one school thru this process. Students who apply single-choice early action can make applications to other colleges under regular admission and have until the regular decision deadline to decide. Yale, Harvard and Princeton have implemented the single-choice early action plan for those applying to the class of 2016. The colleges get back to students with a “likely to admit” or a “not likely to admit” response four weeks after receiving the application.

You can’t help but recognize a common theme throughout this piece—the need to speed up the process. This adversely affects the guidance counselor because they can’t meet with students during this critical period since they are too busy processing the paperwork for one student who wants to apply to one school early decision as well as for early action. Parents are affected because they have to modify their summer plans to visit schools and more importantly they will need to get their financial house in order.

This generation of students needs immediate results and answers, when entering into the process of applying early to college, make certain that the student is prepared, organized and able to meet deadlines in order to be successful in their application process.

All parents need to do is be prepared to pay for it.

Don't let stress invade your college decision-making process

This is the time of year when students are thinking, stressing and ultimately making their college choice. Most colleges have May 1 as their deadline for making a decision. 

When it comes time to choose the college, cost, location and programs tend to be areas of major focus. Committing to a college requires reanalyzing your priorities. This will assist in determining which college will be the right choice personally and financially.

Finances should be a major part of the decision making process. Some parents decide to appeal their package, especially if there are wide discrepancies between schools. Michael Stridel, the director of undergraduate admission at Carnegie Mellon University, stated that “his school sets aside slightly under $1 million a year of freshman aid allocation” to be used for renegotiation. Parents need to tell the schools something that they do not know in order to be successful in the renegotiation process, such as a change as a change in job or family medical condition. Also, it is risky to send a copy of another school’s financial aid package for comparison, as that could backfire.

Another important last step is to revisit the student’s college of choice, its campus and its student life. Feel free to talk with a professor in the desired field of study, have lunch with the students and arrange for an overnight stay if it is an option.

Lastly, don’t let the college decision cause short-term satisfaction with long-term repercussions. The repayment for college is typically spread over 15 years after graduation. The federal government limits the amount an undergraduate can borrow to $27,000 over four years. The amount borrowed should not exceed the expected first year salary of the student.

The importance of a well-thought-out financial plan is vital and should be included as part of the overall plan and decision.  When making this life decision, do so intelligently and informed. Remember to consider the plan, the goals and the future results.

Is the education worth the risk at for-profit colleges?

There are approximately 3,000 for-profit colleges spread across the United States. The recent growth in career colleges has been huge. Enrollment has grown about 9% per year over the last thirty years. The colleges are seen as a threat to the public and private colleges and to those who work with adult students returning to college.

In 2011, the University of Phoenix, owned by the Apollo Group, reported 455,6000 students. This University has 200 locations in 39 states as well as internationally. More than 90% of the student base is enrolled in a degree program with 70% studying full time. The cost of tuition this academic year averages $14,000. This can be significantly higher than two-year colleges and public colleges.

You will find that most of these career profit education systems are owned by large parent companies. There are 13 parent companies with the Apollo Group being the largest.  This business arena reporting earning $26 billion in 2009.

There are a large number of non-profit colleges that do not place much faith in the for-profit college sector.  Professors and members of the tradional campuses believe that this alternative is too expensive and the quality of education received is inferior likewise students are not obtaining work and are defaulting on their student loans.

The for-profit schools develop course models and timeframes that suit specific markets i.e.: working people and at home mothers. The colleges claim to put the needs of the students first, by never closing a course and by being able to make quick student focused decisions.

For-profit colleges spend large amounts of money on marketing their products. In 2009, the Apollo Group reported spending $275 million on “selling and promotional expense.” They hosted a super bowl game several years ago, but they don’t have a football team. Commercials dominate the television and the pushy recruitment techniques have made only more money for the industry. The admission recruiters are known to play on the emotions of fear and pain while attracting low-income students. The recruiters are paid on commission only, the more students they enroll the more money they make.

The students who are enrolled in the for-profit schools have the largest student-loan default rates. They are serving lower-income students, immigrants, and working adults. These students are experiencing a tough economic cycle of high debt, low credit scores, difficulty finding a job and a place to live. Upon graduation they can’t provide for themselves, pay back on their loans or take care of their families. Those receiving Bachelor’s degrees carry an average debt of $31,190 and filing bankruptcy doesn’t work, student loans are not dischargeable debt.

Lastly, the government is closely investigating the for-profit colleges. The questionable marketing techniques are being backed by internal documents that have been retrieved for the companies and the student loan defaults are being monitored. It will be the responsibility of the government to investigate and to provide legislation that will help the students at these colleges get their lives back. This work will help future students as well.

 

Why colleges are going SAT-optional

For many students learning that a college is “test optional” has been great news. There are over 800 colleges and universities in the United States that admit students without a review of their test scores. A “test optional” policy means that students can choose not to submit their standardized test scores as part of their application. The National Association of College Admission Counseling supports this recent movement yet there is much debate about the issue and policies vary greatly from school to school.

The change to become a “test optional” school is based on the thought that “test scores do not equal merit.”  You won’t find the most highly ranked schools on the growing list but you will see Bowdoin, Wake Forest and Pitzer among some of the highly selective schools making the move.

Some of the schools that have made the move to “test optional” have reported satisfaction with the results. The applicant pools have been found to be more diverse therefore creating more differences in the student body.  Schools are learning that a high school student’s academic performance is a very good indicator of future success. There are many factors that Admission representatives consider when making decisions. Writing samples, letters of recommendations, year-end exams and grades are being used as the best indicators of success. 

Saint Anselm College recently announced a test optional policy. Nancy Griffin, Dean of Admission reported, “6 years of data show that the best predictor of academic success is a record of academic achievement in rigorous high school coursework.” This change allows schools to look at the whole person to learn more about the applicants personally and academically.  Saint Michael’s College in Vermont implemented a test optional policy for the fall of 2010. Officials at the school echoing the belief of Griffin.

I must point out that at some test-optional schools like Holy Cross, test scores are received from 75% of the applicants. When making an application at a test optional school, a student can breathe a bit easier. But he needs to take the process seriously. It is important to know that these schools are looking at the whole person during the process. You should make your application as creative and relative as possible.

Lastly, each school can modify their test optional policy. It is best to check directly with the Admission office to learn of the specific requirements. When deciding whether or not to send the scores, remember that colleges tend to prefer a student with high grades and low scores over one with low grades and high scores.

Stressing Out with the College Financial Aid Process

The level of stress within college financial aid offices this time of year can be high, with families and their students feeling the same level of stress. There are many factors that can influence the stress at the financial aid office.

The downturn in the economy has forced colleges to cut back on staff at a time when there are many more applicants. In 2010, the National Association of Student Financial Aid Administrators reported more than 60% of colleges being surveyed experienced an increase greater than 10% in their financial aid applications. At a time when more people are in need the offices aren’t able to provide the necessary services on many levels.

The recent expansion in the Pell Grant program has added to the volume of work and again the level of stress. The government has made the new regulations very time-consuming and intensive. The financial aid officers are spending time on this new program, thus taking away time spent talking with parents and reviewing financial aid offers.

State and private colleges are reporting families of current students coming forward and making aid requests in the middle of the year due to tough economic situations. Colleges don’t want to loose these students therefore they are working closely with them. In 2010, during an 18-month span, Fairfield University reported 500 of their current students filing Financial Aid appeals asking for more aid. Fairfield has increased their financial aid budget by $6 million in the past two years, but not their staff.

You will find that each financial aid office can work very differently and each has their own set of policies specific to the institution. This can cause some added stress for the parents who are not aware of the policies, so when they compare and contrast aid packages, they are left confused and frustrated. The lack of information can be troubling. Some financial aid offices tend to conduct business via the internet or the phone. It can be easier to deliver bad news virtually than in person therefore guests aren’t always welcome within the offices. Some schools go so far as not having chairs in their offices.

Lastly, you should be persistent and prepare yourself as best you can about the policies within the office.  Seek information that can help you maximize your aid. Your diligence may result in a better long-term financial situation and your attentiveness may result in less stress for you and your family in the long run.

 

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 2013-2014 year for a subsidized loan is 6.8% and 3.4% for an unsubsidized loan. Stafford loans have a 1.05% 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 4.2% 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.