Posts filed under 'Budgeting'
Halloween is coming up in a few short days, and with the box-office battle between Paranormal Activity and Saw VI, there’s no shortage of chills and thrills in sight. So imagine my surprise when I found that the real terror comes from the seemingly tame College Board and its college cost calculator.
WARNING! THE INFORMATION BELOW IS NOT FOR THE FAINT OF HEART. 
Here’s how the calculator works. Let’s say you are gearing up to go to a private college in two years. Plug in the average cost of tuition for a public or private college, along with the rate of inflation, how many years you plan to attend the school, the percent of tuition you will finance from your savings, and how many years you have before you enroll. Then click “calculate.” Try not to scream.
We already know that college tuition costs are climbing, but when you are faced with actual numbers, it can be downright frightening. A friend of mine recently had a baby, and just for kicks, I decided to find out what kind of tuition bill that tiny little newborn would face 18 years from now. The future cost is close to $90,000 a year at a private institution. Creepy.
Try it yourself . . . if you dare.
I hear that the producers of Paranormal Activity are already planning a sequel, but really, they could save the time and trouble by just directing viewers to the College Board’s calculator. Seriously—there’s a reason they call it sticker shock.
The good news is that students rarely pay the full price colleges demand. Scholarships, grants, and loans all help to make the finances more manageable. And just as the oblivious people in horror movies are not alone in their homes, you’re not alone in your struggle to fund your college degree.
College finances giving you nightmares? The CollegeBound Network can help you figure it all out.
–Barbara Bellesi
October 27th, 2009
If you are like most students, figuring out how you’re going to foot the bill has become even more important than deciding which college you will attend. But should your impending tuition bill be the ultimate factor in your big decision?
It is true that college is one of the best investments you’ll ever make—if not THE best. But that doesn’t mean that you have to wind up in the poor house while you wait for that investment to mature. Here are a few important questions to consider as you make your decision:
What is your major? Don’t panic. It’s OK if you have no idea what you want to study. But for those of you who do, make sure you take your future career aspirations into consideration. Want to be a business major? Well, once this economy behaves itself again, you’ll be able to score a good salary coming out of school. Want to become a teacher? It’s an awesome career choice, but know that you’ll never command a Wall Street salary. Plus, most states, if not all, require a master’s degree to remain certified, so grad school is not exactly a choice anymore—and that means loans, loans, and more loans for you.
A paycheck should not sway your passion, but it should give you a reality check. Yes, you might very well have the talent to be the next big thing, but as any E! True Hollywood Story will tell you, even the A-listers had some lean years before they made it big. Check out the Bureau of Labor Statistics—it’s a great source for employment and salary information.
Do you want to attend graduate school? I know, it’s frustrating to think of a second degree when you haven’t even earned your first one. But if grad school is indeed a blip on your radar at this point, then you need to weigh it as an additional cost.
In fact, that’s exactly the predicament I found myself in when I was applying to college. I was accepted to what I believed was my dream school, which just so happened at the time to not award ANY merit scholarships. So I was looking at financing all four years of college. (Note to younger self—what were you thinking?) I knew that grad school was a possibility for me, so I ultimately passed on my first choice and accepted a scholarship offer at another college on my list. To my happy surprise, that college turned out to be my dream school. Sure enough, four years later, I enrolled in grad school, and I was very glad to have fewer undergrad loans to repay.
Are you loving life in your home state? You already know that state schools offer the best bang for your buck—an excellent education with major tuition perks for state residents. But did you also know that some state schools offer even more benefits to those students who remain in the state after graduation? A number of states have noticed a massive exodus of students after graduation, and in order to keep more of those well-educated residents, state universities–and even the states themselves--are offering additional scholarships to sweeten the deal. Some states even have the endorsement of their celebrity residents. Longtime Maine resident Stephen King used his speech to the graduates of the University of Maine to encourage them to make the state their permanent home. So if you enjoy living in your home state and plan on spending some quality time there after graduation, then do yourself a huge favor and check in with the state schools to see if you can cash in on some of that loyalty.
These questions are a good start, but don’t stop there. When it comes to your (and your parents’) hard-earned money, you should have lots of questions about how best to spend it. Got any you can’t answer? Post them in the comment section below.
–Barbara Bellesi
October 8th, 2009
The lines have been out the door; the requests for help have significantly increased in a short period of time; the demand has increased, but the supply has stayed the same. This is the current financial aid climate, as students and parents rush to get their FAFSA in as soon as possible. And the sentiments throughout the education realm all seem to be the same when it comes to financial aid: the earlier you file, the better your chance is to secure some much-needed cash in a downward economy.
“There is a high level of anxiety and desperation at this time,” says Craig Carroll, CEO of Student Financial Aid Services Inc. (SFAS), a company that he says is a “trusted advisor, helping families across America access available financial aid to pursue their dreams.” According to SFAS, they have seen a huge increase in those applying earlier for financial aid. In fact, says Carroll, SFAS saw a 40 percent increase within the first five days of 2009 as compared to 2008. That’s huge. And, since financial aid is distributed on a first come, first serve basis, the financial aid money will disappear a lot faster this year than in years past.
Christopher Penn, Chief Media Officer at Edvisors, Inc., says that students need to jump on completing the FAFSA as soon as they can. “There are a limited amount of funds from Uncle Sam so the free money is going to run out,” he says. “So do it soon and do it correctly. There are lots of ways to make errors, but the easiest way is by not paying attention.” Penn also explains the great increase he’s seen already. He says that Boston University has seen a 41 percent increase in their mid-year financial aid applications, while the University of Arkansas burned through all their scholarship money in just 11 days.
For some, they are aware of the necessity of filling out the FAFSA early. But, the financial crisis doesn’t seem to be affecting students’ decisions to attend college. For instance, Shayla Price is a first-year law student who hopes her education will better her family. She’s been carefully considering all the decisions she makes on a daily basis. “To ensure my family can afford my education, I am searching for scholarships to pay for my expenses,” she says. “I am also spending less on leisure items […] I feel more pressure to take the burden off of my family; I just want better for us. That’s why I’m pursuing my law education.”
Other students are trying to figure out the FAFSA as quick as possible to ensure they can get the most out of their application. Jeff Marcoux is just finishing up his graduate school applications and is stressing out because both he and his fiancé will be attending school in the Fall. “Our decisions for college are not affected by the current economy because we see the value in attending a tier 1 graduate program due to the ROI [return on investment] once we have our graduate education,” he says. “However, we are VERY concerned about finances and how we are going to afford housing, food, tuition, etc. and are hoping that FAFSA will provide us with enough aid when supplemented with part-time work.”
Both Carroll and Penn give similar advice to students who are concerned about the financial aspects of their education. The earlier you apply, the more of a chance you’ll have to score the cash you need to help you through the process. The demand for financial aid continues to increase, but the supply remains the same. This gives students less of a chance to get the funding they need. So go out now and fill out the FAFSA before it’s too late!
Beyond federal aid, be sure to check out some scholarship stories as well:
And for a line-by-line helpful guide to completing the FAFSA, check out Penn’s e-book at FafsaOnline.com.
-Amanda Fornecker
January 22nd, 2009
It’s extremely thrilling to get your first piece of plastic – your very first credit card, that is. But like anything else, you need to learn how to use it properly. What’s the difference between a credit card and a debit card? How can you be sure that you stay out of financial trouble? What are finance charges? There are so many questions that may swirl throughout your mind!
In these economically-troubled times, college students have a lot to worry about. Not only is this a time to choose your business major wisely (or at all?), but it’s when many first learn the value of the credit card. It’s very easy to get into debt and with rising tuition, greater unemployment rates, and the brink of a recession, you may want to make sure your finances are in order.
Enter Extra Credit: The 7 Things Every College Student needs to Know About Credit, Debt & Ca$h by Bill Pratt. If you’ve never had a credit card before you should consider picking up a copy of this. With tips to ensure that you’re as informed as possible, this book may help you stay out of debt and prepare you for the future. One day, you’ll want to buy a house or get a full-time job and having a lot of debt can hurt your chances at getting what you want.
Some important points mentioned by Pratt:
“Your first credit card is like a “gateway drug.” Once you get used to spending more than you make, you want to spend more and more and open additional credit cards just to get by.”
“The average college graduate overestimates their starting salary by 44%. In addition, you will only get to keep about 65%-75% of your paycheck after taxes, insurances, retirement, etc.”
“The problem is that plastic is too convenient. It is too easy to spend more than you realized or wanted to because you were just swiping the card.”
So be sure to get some Extra Credit to increase your credit score when you are outside of the classroom.
-Amanda Fornecker
December 12th, 2008
This week we welcome Robin Levinson, the content editor for CampusCompare.com, as our guest blogger. If you’ve ever considered higher education in Canada, or just wondered what the fuss is about, today’s post is for you.
Many students like to spend a semester studying abroad, while others journey abroad for all of their college degree work. The majority of U.S. students abroad aren’t heading to Europe or some exotic locale, however; they’re traveling to our friendly neighbors to the north, Canada. So what are the perks to getting your bachelor’s in the land of maple syrup, lumberjacks, and hockey?
- Savings: The average tuition in Canada for international students hovers around 15,000 CAD, depending on your program. With the U.S. dollar currently strong, that price tag equates to just under $12,000 a year. Even room and board come at bargain rates. The cost of living in big college towns like Montreal, Toronto, and Vancouver is lower than similarly-sized U.S. cities like Boston, New York City, LA, and Chicago.
- Prestige: McGill University, the #1-rated university in Canada, was voted #12 in the world in 2008, and is often called “the Harvard of Canada.” Close contenders, University of Toronto, Queens University, and University of British Columbia, also have stellar international reputations. On CampusCompare.com, you can search colleges outside of the U.S. and get college info for many schools in Canada.
- Independence: Ask students who dorm there: Canadian college life tends to be a bit more independent than the typical American college dorm experience. The drinking age is 18 in Quebec, Manitoba, and Alberta, and 19 everywhere else. Most students live off campus after their first year, affording them even more freedom. This is not always a good thing: those of you looking for a cozy college experience might feel lost on a big campus living in an apartment. Figure out what you want in a school, and search for colleges that match your lifestyle needs.
- Diversity: Going abroad for college is an eye-opening experience to a new culture and other ways of life. Canada is a multi-ethnic bilingual country. Students who choose schools in Montreal, for instance, will be able to learn or practice French, and benefit from the almost-European character of the city.
Choosing to study in Canada is a big decision, and it is not without its repercussions. Distance is obviously a factor. There is also the added hassle of immigration: Canada requires that you apply for a student-visa if you plan to study for more than six months in the country. So is studying in Canada right for you? Only you can know for sure.
What’s your take on studying abroad? Is it something you’d consider – for one semester, two semesters? The whole endeavor?
– Robin Levinson
December 4th, 2008
You’ve probably heard of charity events where people and companies pledge to donate a certain amount if their participant can swim a mile, win a contest, or finish a marathon. Well, what about a program that awards sponsors’ money to A-students? It’s a very real deal, but is it a good idea?
In business as of November 15, the site GradeFund.com is a social network with a monetary slant. Students from middle school to graduate school can sign up and upload their transcripts every semester for the chance to earn money for their grades. And instead of looking for friends and colleagues to reconnect with, people and companies hop on and search for students and/or subjects they wish to sponsor.
All GradeFund accounts aren’t created equal though. While it may be possible for a student to earn cash for an A in a particular subject — as is the case with students who study veterinary medicine thanks to a subject-only sponsorship by ZooToo.com — many of the users will and do rely upon personal sponsorships. This means you’ll have to either stand out amongst the sea of students (currently estimated at 750) or know a lot of people who are willing to log on and fork over in your pursuit of financial aid.
Of course, there is a catch. GradeFund runs because it collects a five percent fee on all transactions. Considering how many scholarship funds are out there, and how many friends and families you could solicit on your own without the help of a site, we have to wonder, is it worth it?
– Genevieve M. Blaber
December 2nd, 2008
Recently Zac Bissonnette of “Wallet Pop” discussed the merits of attending a public college or public university instead of a pricier private alternative. We can’t argue with him. After all, we’ve long been proponents of choosing the right school to meet your academic needs and finances, and we’ve always reminded you that popular colleges and their rankings can be misleading.
In his post, Bissonnette also brings up the prospect of transferring to a private college after your second year, pointing out that it will save you much-needed funds while still netting you a big name on your degree. While it’s a great argument, he forgets to mention that most colleges have transfer rates that are considerably lower than their freshman acceptance rates — thanks to fewer open spots — and can be more competitive as a result.
That’s why, if you decide to go Bissonnette’s route, you should put your all into your classes. It’s also good to have a clear idea of what you want to major in — or have already made progress in your major — by the time you apply for transfer, as that will make you look like a stronger and more dedicated candidate.
For more info on transferring colleges and what it takes to make it happen, check out “Taming Transfer Turmoil.”
– Genevieve M. Blaber
November 6th, 2008
It’s all over the news wherever you go: layaway programs, the system that lets you set an item to the side until you can pay for it, are back in style thanks to the sagging economy. What might surprise you is that layaway programs aren’t just for department stores anymore — they can be for college too!
Thanks to the recent creation of the Texas Tuition Promise Fund, residents of Texas can start paying now for whatever Texas college or out-of-state institution their children wish to attend in the future. The perks are simple and hard to pass up: parents get to lock in today’s tuition rates and can start paying now rather than waiting for higher costs to hit them when high school graduation rolls around.
The prepaid college tuition program also has provisions for scenarios in which students earn scholarships (your payments are put into a 529 college savings plan and can be put towards graduate school or other college expenses), your child chooses a college outside of Texas (your payments still go towards the school though you’ll have to pay out-of-pocket for the difference between your locked-in-rate and the school’s tuition), or you need funds for another child (you can transfer your payments).
Enrollment for the program will generally extend from September through March, except in the case of younger children. Make sure to visit “Every Chance, Every Texan” to learn more and get enrolled.
– Genevieve M. Blaber
November 5th, 2008
Hold up! Just because classes are starting and reading lists are hitting you left and right, doesn’t mean you should head to the bookstore right now to buy every single book your professor mentioned. As upperclassmen already know, it’s not unusual for a prof or instructor to change the booklist midway through a course, leaving you stuck with an obscure publication on Austrian philosophy in the process. Your best bet is to ask your professor what books you absolutely need the first month and pick up the rest as you need them.
Don’t settle for your high-price campus bookstore or stoop to downloading materials with P2P (peer-to-peer) file sharing networks either. There are plenty of alternative ways to get the books you need for the prices you can afford, the only trouble is deciding amongst them. Enter DealOz (www.dealoz.com). Formerly known as CampusI, DealOz is an easy-to-use service for comparing the price and shipping options for tons of booksellers online. Enter the title, ISBN, keyword, or author name, and DealOz will return a list of sites that offer the book as well as the rates that they charge for shipping and the book price itself. DealOz will even give estimates on shipping times and alert you if any coupons are available — both must-haves if you’re short on time and/or money.
The perks don’t stop there either, with DealOz offering to send you e-mail alerts when a bookseller offers your ideal preset price and the ability to compare bookbuying options via text message. I test drove the service, searching for a not-exactly well-known book on Korean cinema that I had purchased for full-price when I was in college, and sure enough DealOz gave me the info and coupon code I’d need to get the same edition for six dollars less on Half.com. With no need to sign-up (the site directly links you to the bookseller when you want to order) and no additional fees, DealOz seems like a great deal for your college book needs.
– Genevieve M. Blaber
September 10th, 2008
I always think to myself that by the time I get married, have kids, and send them off to college, the price of tuition will really be astronomical. As the cost of higher education continually rises (and the average private, four-year university tuition sans room and board is already $23,712 according to the CollegeBoard), what will tuition costs be like in a few years or even next year for that matter? The cost from last year has already risen 6.3 percent so where are we headed?!?!
TuitionBids.com aims to control this problem by helping students with affordable loans. Loans are important because they help you pay for school, but you must be aware that these need to be repaid over a period of time. So picking the right loan is crucial to your post-college debt management.
TuitionBids.com was founded in 2007 to “reform the higher educational lending industry,” according to their site. The site’s co-founder and CEO, Keith Alliotts, used to work with credit reports and always saw student loans on their credit. “What bothered me was that it became common practice for me to see this debt on people’s credit well into their 30s and 40s,” he says. “This is when I decided to do something about it.”
The site provides students with loan options by having lenders “bid” on the best loan for the student. TuitionBids.com will take the student through a step-by-step process to help them understand what loans will be best for them. From there students can start the process by clicking on the “Let the Bidding Begin” button. It is at this point where the student will fill out a detailed application.
“When the application is complete, TuitionBids.com does the rest,” says Alliotts. “The borrower then has the choice of up to six lenders and can decide which they would like to speak to.”
In essence, TuitionBids.com tries to narrow down the loan choices that will get you started (and continued) on your college career. And it’s easy to find any old loan, but TuitionBids.com aims to secure the right loan especially for you. “It is extremely important for all students to make sure they get the right loan because the average student holds onto their loan for approximately 19 years,” says Alliotts. “This debt becomes tremendously burdensome for the student and in a lot of cases delays their ability to purchase a home, car, etc.”
Once the right loan becomes available, a load is certainly lifted off a student (and parent’s) shoulders. It is then that the student can go on with the educational process and apply themselves. Alliotts offers up his advice: “Students need to get educated on this process so that they can make a more informed decision when it comes to borrowing money for school.”
With the escalating costs of education, we could use help somewhere. So check out TuitionBids.com and let them alleviate some of your stress. And if you haven’t quite chosen your school yet, let us help you conduct your search now!
-Amanda Fornecker
May 22nd, 2008
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