College Planning

Three things to look at during college tours

Expansive library?  Check.  Comfortable dorm rooms?  Check.  Well-stocked dining hall?  Check. Those are just a few of the amenities prospective college students and their parents will be peeking into during a college visit.

But besides the high-speed wireless internet, availability of on-campus parking, and a well-equipped workout gym, what else should you consider during your campus tour?

1. How about picking up a copy of the school newspaper? (Or reading it online?)  The college newspaper is a great way to gain insight into the pulse of the school and to get a feel for the different campus environments.

2. Also, many parents don’t realize that since the Jeanne Clery Disclosure of Campus Crime Security Policy and Campus Crime Statistics was passed in 1990, every college is required to make available its security policies and its safety record.  How safe is this campus?  Have there been any violent assaults? Rapes? Car thefts?  This is an important element to consider when deciding what college is most suitable – and safe.

3. Expand your visit beyond a formal tour.  During your visit, take the opportunity to talk to other students you come across, beyond those who conduct the tour.  The random students you encounter are apt to be more honest in their appraisal of the pluses and minuses of a particular college.

As a general suggestion, consider a college visit to be a clue game.  You look for hints about whether or not this college is going to be a good fit and appropriate match for your child, and then decide together what makes sense.

Photo by Patricia Drury via flickr http://www.flickr.com/photos/patriciadrury/3236417577/

Manage the stress of applying to college

In my work with families, I have found that there are two periods when the stress of senior year peaks. The first occurs between November 1 and February 1, which coincides with the college application deadline process. This is when early admission, early action and regular admission applications are due — along with all the essays, transcripts, recommendations, portfolios and application fees.

This first peak period of duress also occurs over the holiday season, which itself can generate its own tension and anxieties. And, it may also coincide with a time when your child's coursework, extracurricular and social activities are reaching a crescendo — all able to overwhelm an already-exhausted senior. To help, be sure to give your child plenty of opportunity to express his frustrations around this, as well as acknowledge and celebrate when the applications are finally done and submitted.

The second most stressful period in the application process is between February and April when seniors are waiting for admission decisions. The good news is that 78 percent of students are accepted at their top choice school, but the bad news is 22 percent are not. So parents can best help their child by preparing them for both outcomes. An acceptance is great, but a rejection is only a bump in the road that will eventually lead to college.

And also, keep in mind that even if your child is accepted to every one of the schools he applied to, there is still the stress of deciding which one to choose. Parents also may feel pressure at this time, since the decision could be based on both the school itself and the financial aid package it is offering.

So get Zen and keep breathing through the deadlines and at some point you'll be on the other side of this decision.

Photo by alancleaver_2000 via Flickr.

How do you pick the right college?

The United States has many of the most prestigious institutions of higher education in the world. There are, in fact, more than 7,000 colleges and universities providing educations to more than 15 million students, according to the US Department of Education.

So, how do you find the right one and where do you begin your search?

Of course, your child’s high school guidance office is a good resource, but there are many more.  Campus Tours is an easy to navigate website that allows prospective students to use a search tool to find and virtually tour a particular campus. The site does have its share of shortcomings, such as, the listing of colleges and universities is not complete, however, in addition to a virtual tour, the website also offers a thumbnail profile of the listed schools.

Another website is Destination-U, an online service that individually matches college bound students to colleges where they are most likely to thrive based on their unique needs, interests, talents and aspirations. And the go-to guide for in depth profiles of individual colleges is Peterson’s, which has been providing information services to prospective college students since 1966 and reaches 105 million consumers each year. And finally, if your child is interested in rushing for a fraternity or sorority, there is Greek Pages which is a directory of fraternities and sororities.

Given the fact that only 56 percent of college students graduate within six years, it makes sense to try to find a strong college fit between your child and the school he or she attends to better insure a better college experience. So using the resources available is a very smart first step to narrowing the choices from 7,000 to one.

Photo by austinevans via Flickr.

Five Misconceptions About College Financing

 

It’s great fun going to a suspense flick and gripping your arm rests during the plot’s twists and turns. You want that kind of high anxiety when you watch a movie mystery. But most parents would prefer less drama when they watch the financial aid process unfold. In fact, savvy parents can save themselves much of the apprehension, worry and angst of the financial aid process by learning the truths behind the commonly-held assumptions:

“My child will get some type of merit scholarship.”
Spoiler: According to a survey by the Wall Street Journal, 92 percent of financial aid counselors say parents overestimate the availability of scholarship money. Only 1 percent of college students receive merit scholarships based on their SAT scores.

“My child will borrow the amount needed through low interest government loans.”
Spoiler: The federal government actually caps the amount undergraduates can borrow over four years to $27,000. The current interest rate for an unsubsidized Stafford Loan is 6.8%.

“Financial aid is only loan money.”
Spoiler: Between 60 to 70 percent of all financial aid packages may be free money in scholarships that don’t have to be repaid.

“We will get no financial aid.”
Spoiler: About 35 percent of parents incorrectly assume they will not get financial aid; 70% of those parents assumed incorrectly.

“With two children in college, we will have to pay twice the amount.”
Spoiler: The federal Financial Aid formula calculates the expected family contribution for the year, whether one child is enrolled in college or triplets are. That contribution is per year, not per child.

So, when it comes to financial aid, if you want less dramatic plot twists (and ultimately more money in your pocket), go behind the scenes and get the information you need. That way, there won’t be any plot surprises or spoilers

Photo by cydneycap via Flickr.

Using Home Equity to Pay for College

For most freshman college students, the transition from bedroom at home to dorm room at college is an exciting one.  It’s the first time most teens will leave the safety and security of their home and move into independent living situations.  But there is another less obvious relationship between home and campus.

First to consider is whether home equity is a hindrance to financial aid.  The answer is... that depends.  It turns out that 90 percent of private colleges do use home equity in determining financial aid, while 98 percent of public colleges do not.

And there is also another potential relationship between home and college – using home equity as a resource to pay for college.  For years, during the boom real estate market, many homeowners treated their residence like a credit card, borrowing money against the equity in their home and hoping it continued to escalate in value.  That notion came to a crashing halt after the fall of 2008 when the real estate market reversed and unemployment rose.  Then, the easy-breezy borrowing of home equity came under scrutiny.

These days, people are rightfully more cautious about borrowing home equity in order to pay for college bills, and sound college financial planners warn parents against jeopardizing their own financial future by over-borrowing home equity.  While your child has enjoyed the security of home in the past, and until the time he or she flies out of the coop to head to college, it’s important for you to manage your finances to ensure the surety of your home as collateral for stability in your future.

Photo by R. Clock via Flickr.