College Planning

Are you planning more for your 4th of July than your child’s college education?

Many high school students are taking full advantage of applying early to college, some simply because they don’t have the patience to wait until 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 1^st and receive an admission decision typically in December by the 15^th, just in time for the holidays.

It is estimated that 50% of students will apply early in the fall of 2011 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 15^th, 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.

 

 

Stress invades the 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.

For-Profit colleges, is the education worth the risk?

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 February of this year, the University of Phoenix¸ owned by the Apollo Group, reported 455,6000 students. This University has 200 campuses located 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.

Financial Aid Stress

The level of stress within college financial aid offices this time of year can be high, with families and their students are 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.