Financial Aid EduGuide
Content
Financial Aid EduGuide
Provided to you by:
Allan Cornell Shepherd High School MI
Provided to you by:
Allan Cornell Shepherd High School MI
Table of Contents
How to Respect (and Love) a Disrespectful Teen How to "Fight Fair" with Your Teen Hold a Family Summit on Respect How to Respectfully Disagree in a Disrespectful World Schedule a Meeting with Your Child’s Counselor Set Aside Twentyfive Dollars a Month for College Quiz: How Much Do You Know About Saving Money for College? Choose a Taxfree College Savings Account Ace the FAFSA Know How Much to Save for College Choose the Right Student Loans for College Interview a Financial Aid Advisor about Financial Aid Requirements Quiz: Do I Know How To Pay for College? Find Free College Money on the Web Save Money on Your Student Loans for College Help My High School Senior Know How to Write a College Admissions Essay Saving for College: How Are Three Families Doing It? Really Achieving Your Dreams: Take the Right High School Courses
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FAFSA Helps Families Access the Four Types of Financial Aid for School
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Saving for College: How Are Three Families Doing It? Really Achieving Your Dreams: Take the Right High School Courses FAFSA Helps Families Access the Four Types of Financial Aid for School Family Ideas: Start Saving for College in Kindergarten Three Family Ideas for College Savings Top Ten Questions to Ask College Student Financial Aid Advisors Write a National History Day Essay for High School Scholarships or Cash Prizes! Saving for College: Three Rules Saving for College: It's Never Too Late to Reduce Need for Financial Aid Loans Getting By in College: Budgets and Avoidance Spending Getting By in College: What Students Say FAFSA Student Loans Can Max Your College Cash Advice for Teenagers: Be Prepared for Extra College Expenses Money Management 101: Smart Goal Setting How I Paid for College: Thinking Outside the Box Seven Steps to Saving Money on Student Loans for College Four Factors to Compare Financial Aid, Loans Five Types of Student Loans for College College Costs Checklist Six Ways to Keep More of Your Money 4 Ways NOT to Lose Your Financial Aid Top Five Strategies for Stretching Student Aid Dollars When Is Disrespect a Sign of Something Serious? Financial Aid for Students: Coping with the Credit Crunch FERPA: Family Educational Rights Privacy Act The Real Cost of College Moneysaving College Prep Advice for Teenagers Four Ways To Lose Your Financial Aid for School Community Service Ideas That Help Students Pay College Expenses Student Loans for College: Glossary of Financial Terms
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New Student Loan Forgiveness Program Rewards Public Service Workers
Community Service Ideas That Help Students Pay College Expenses Student Loans for College: Glossary of Financial Terms New Student Loan Forgiveness Program Rewards Public Service Workers How Much Do You Know about Saving Money for College? Do I Know How to Pay for College? How Respectful Am I?
Financial Aid EduGuide
How to Respect (and Love) a Disrespectful Teen
Want more respect from your teen? Show respect: to your teen, your spouse, your community, and to yourself. You can’t force someone to respect you, but you do have the right to be treated with respect if you model respect. Modeling respect is not hard, just keep in mind the following tips:
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Be honest. If you do something wrong, admit it and apologize. Obey the law and follow the rules. Some rules are dumb and many are inconvenient. You don’t have to follow the rule—unless you want your teen to. Observe poor role models. When you see examples of disrespect, point them out and discuss them. Ask your teen how he or she would have handled the situation. Walk the talk. If you have to tell a joke about someone’s religion, culture, age, gender, sexual orientation, appearance, or politics, tell it on yourself. That way, you know you’ll only be offending one person. Be positive. When you see your teen showing respect—to you, another family member, friends, or a stranger—praise him or her. Be gentle. Teenagers are highly sensitive to criticism. Don’t embarrass, insult, or make fun of your child—especially in front of other people. Be fair. Listen carefully to your child’s side of the story. There may be a good reason why your kid behaved that way. Loosen the reins. Start adding a few new rights and responsibilities for your teen shortly before you feel ready to; he or she has probably been ready for some time. If your child doesn’t handle the new freedom well, let him or her face the consequences. Learn to compromise. Go clothes shopping together so you can see what styles your teen likes. Let your teen know from the beginning what clothes are appropriate without insulting his or her taste, and find opportunities to compromise.
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Still not sure you are modeling respect for your teen as well as you might? Take our quick quiz, "How Respectful Am I?" and find out.
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How Respectful Am I?
Financial Aid EduGuide
How to Respect (and Love) a Disrespectful Teen
Want more respect from your teen? Show respect: to your teen, your spouse, your community, and to yourself. You can’t force someone to respect you, but you do have the right to be treated with respect if you model respect. Modeling respect is not hard, just keep in mind the following tips:
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Be honest. If you do something wrong, admit it and apologize. Obey the law and follow the rules. Some rules are dumb and many are inconvenient. You don’t have to follow the rule—unless you want your teen to. Observe poor role models. When you see examples of disrespect, point them out and discuss them. Ask your teen how he or she would have handled the situation. Walk the talk. If you have to tell a joke about someone’s religion, culture, age, gender, sexual orientation, appearance, or politics, tell it on yourself. That way, you know you’ll only be offending one person. Be positive. When you see your teen showing respect—to you, another family member, friends, or a stranger—praise him or her. Be gentle. Teenagers are highly sensitive to criticism. Don’t embarrass, insult, or make fun of your child—especially in front of other people. Be fair. Listen carefully to your child’s side of the story. There may be a good reason why your kid behaved that way. Loosen the reins. Start adding a few new rights and responsibilities for your teen shortly before you feel ready to; he or she has probably been ready for some time. If your child doesn’t handle the new freedom well, let him or her face the consequences. Learn to compromise. Go clothes shopping together so you can see what styles your teen likes. Let your teen know from the beginning what clothes are appropriate without insulting his or her taste, and find opportunities to compromise.
Still not sure you are modeling respect for your teen as well as you might? Take our quick quiz, "How Respectful Am I?" and find out.
Sources Parenting Teens with Love and Logic, F. Cline and J. Fay; Dr. Martha Farrell Erickson ,director of the Univ. of Minnesota's Children, Youth and Family Consortium
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www.EduGuide.org
How to Respect (and Love) a Disrespectful Teen
Want more respect from your teen? Show respect: to your teen, your spouse, your community, and to yourself. You can’t force someone to respect you, but you do have the right to be treated with respect if you model respect. Modeling respect is not hard, just keep in mind the following tips:
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Be honest. If you do something wrong, admit it and apologize. Obey the law and follow the rules. Some rules are dumb and many are inconvenient. You don’t have to follow the rule—unless you want your teen to. Observe poor role models. When you see examples of disrespect, point them out and discuss them. Ask your teen how he or she would have handled the situation. Walk the talk. If you have to tell a joke about someone’s religion, culture, age, gender, sexual orientation, appearance, or politics, tell it on yourself. That way, you know you’ll only be offending one person. Be positive. When you see your teen showing respect—to you, another family member, friends, or a stranger—praise him or her. Be gentle. Teenagers are highly sensitive to criticism. Don’t embarrass, insult, or make fun of your child—especially in front of other people. Be fair. Listen carefully to your child’s side of the story. There may be a good reason why your kid behaved that way. Loosen the reins. Start adding a few new rights and responsibilities for your teen shortly before you feel ready to; he or she has probably been ready for some time. If your child doesn’t handle the new freedom well, let him or her face the consequences. Learn to compromise. Go clothes shopping together so you can see what styles your teen likes. Let your teen know from the beginning what clothes are appropriate without insulting his or her taste, and find opportunities to compromise.
Still not sure you are modeling respect for your teen as well as you might? Take our quick quiz, "How Respectful Am I?" and find out.
Sources Parenting Teens with Love and Logic, F. Cline and J. Fay; Dr. Martha Farrell Erickson ,director of the Univ. of Minnesota's Children, Youth and Family Consortium
How to "Fight Fair" with Your Teen
www.EduGuide.org 6 time you try to have a conversation about his drinking. You’re so mad you could scream. Welcome to the world of adolescent ONLINE EDUGUIDE
Your teenage daughter has just called you a "lazy slob" in front of her friends. Your teenage son walks out of the room every parenting.
Dr. Martha Farrell Erickson ,director of the Univ. of Minnesota's Children, Youth and Family Consortium
How to "Fight Fair" with Your Teen
Your teenage daughter has just called you a "lazy slob" in front of her friends. Your teenage son walks out of the room every time you try to have a conversation about his drinking. You’re so mad you could scream. Welcome to the world of adolescent parenting. Getting angry is perfectly normal, but it won’t get you what you want. Even if your teenager's behavior causes you to lose your temper—and it probably will—you can still control the situation. Here’s how: Buy Yourself Some Time Engage in some activities to relieve parent stress. Take a deep breath. Walk away if you have to until you can speak and act calmly. Despite how they may act, teens don’t like being unable to get parents' attention, positive or negative. Restate the Ground Rules Calmly and without shame, remind your child of the family rules for respectful interaction. For tips on how to create a Family Respect Agreement, see EduGuide ShortCut: "How to Hold a Family Summit on Respect." Give a Rerun Ask your teen if he or she would like a rerun—a chance to start over again as though the unacceptable behavior never happened. A rerun gives your child a second chance to act the way he or she should. As a parent, you are entitled to a rerun (or two) yourself. Listen—and Watch What Happens More than anything, a teen wants his or her voice to be heard. Some kids find a facetoface confrontation uncomfortable—so, if you have a teen like that, suggest taking a walk or doing an active chore together. Then wait. Don’t interrupt and don’t set the discussion topic. You may be amazed at how much your teen will say if you keep quiet. Know Your Own Strength Don’t ignore the behavior (it will get worse), but don’t give your teen an order or insist on a punishment that you can’t physically enforce. Nothing kills respect faster than an empty threat. Nothing, except failing to... Respect Yourself to Gain Your Teen's Respect You can’t expect your kid to respect you if you let others treat you disrespectfully. "As teenagers move toward greater independence and responsibility, discussing and negotiating helps them develop important reasoning, communication, and interpersonal skills. As a parent, you have a responsibility to help your teenager practice these skills within boundaries of respect and gratitude." Dr. Martha Farrell Erickson
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SOURCES
SOURCES
Foster Cline and Jim Fay, Parenting Teens with Love and Logic Dr. Martha Farrell Erickson, director of the Univ. of Minnesota Children, Youth and Family Consortium
Hold a Family Summit on Respect
Things to Do ahead of Time
1. Pick a date. Write it on a calendar that everyone in the family can see. Explain briefly that that meeting is about respect and teaching character, and make sure everyone knows the meeting is mandatory. 2. Make copies of the Respect Inventory for each family member. Do this one week before the meeting, and ask everyone to have it finished in time for the meeting. 3. Tell family members to keep a Respect Log for the week. Ask them to keep notes on the times they felt disrespected, saw disrespect, or acted disrespectfully. 4. Pick a location for the meeting that is comfortable and quiet. Turn off the TV, the computer, and the cell phones. Choose a setting where a can express his feelings. 5. Make the meeting fun. Order a pizza or make ice cream sundaes to get everyone in a relaxed mood. The topic is serious, but the meeting doesn’t have to be.
How to Conduct the Summit
6. Start the meeting by reading examples from the Respect Logs. After all family members have had a chance to share, ask each person what makes him or her feel respected and what makes him or her feel disrespected 7. Read each question on the Respect Inventory. Celebrate the areas in which all family members agree and discuss areas of disagreement, but set a time limit (for example, five minutes of discussion for every point of disagreement). If someone comes up with other categories (choice of friends, books, music, etc.), write them down and discuss them. Welcome discussion, but make sure your kids understand that as parents, you have the final say. Work hard to find compromises. 8. Create a list of consequences for disrespectful behavior. For example, first offense: apology accepted; second offense: sit down and discuss; third offense: privileges withheld (cell phone, TV, computer, friends, etc.) for a specified length of time. 9. Write up your Family Respect Agreement. Use the Respect Inventory and list of consequences. 10. End the meeting on a positive note. Talk about what everyone has learned from the meeting and what strategies you will use next time.
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Dr. Martha Farrell Erickson, director of the Univ. of Minnesota Children, Youth and Family Consortium
Hold a Family Summit on Respect
Things to Do ahead of Time
1. Pick a date. Write it on a calendar that everyone in the family can see. Explain briefly that that meeting is about respect and teaching character, and make sure everyone knows the meeting is mandatory. 2. Make copies of the Respect Inventory for each family member. Do this one week before the meeting, and ask everyone to have it finished in time for the meeting. 3. Tell family members to keep a Respect Log for the week. Ask them to keep notes on the times they felt disrespected, saw disrespect, or acted disrespectfully. 4. Pick a location for the meeting that is comfortable and quiet. Turn off the TV, the computer, and the cell phones. Choose a setting where a can express his feelings. 5. Make the meeting fun. Order a pizza or make ice cream sundaes to get everyone in a relaxed mood. The topic is serious, but the meeting doesn’t have to be.
How to Conduct the Summit
6. Start the meeting by reading examples from the Respect Logs. After all family members have had a chance to share, ask each person what makes him or her feel respected and what makes him or her feel disrespected 7. Read each question on the Respect Inventory. Celebrate the areas in which all family members agree and discuss areas of disagreement, but set a time limit (for example, five minutes of discussion for every point of disagreement). If someone comes up with other categories (choice of friends, books, music, etc.), write them down and discuss them. Welcome discussion, but make sure your kids understand that as parents, you have the final say. Work hard to find compromises. 8. Create a list of consequences for disrespectful behavior. For example, first offense: apology accepted; second offense: sit down and discuss; third offense: privileges withheld (cell phone, TV, computer, friends, etc.) for a specified length of time. 9. Write up your Family Respect Agreement. Use the Respect Inventory and list of consequences. 10. End the meeting on a positive note. Talk about what everyone has learned from the meeting and what strategies you will use next time.
After the Summit
11. Post the final list where everyone can see it. And don’t be afraid to modify the list if necessary.
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11. Post the final list where everyone can see it. And don’t be afraid to modify the list if necessary.
How to Respectfully Disagree in a Disrespectful World
Following are some suggestions to consider when you and your child disagree. Remember: disagreements are unavoidable. It’s how you disagree that matters.
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Listen carefully to your child without interrupting. Repeat the main points in your own words, and then ask whether you heard correctly. Clear up misunderstandings on the spot. Show that you are interested in what your child is saying and sympathetic to his or her feelings by using such sentences as Would you tell me more about…, Can you give me an example of…, and I can understand why you would feel that way. Use specific I statements rather than general you statements. For example, you might say I feel as though the family is incomplete when you don’t join us on visits to grandma instead of You never visit grandma with us. Support your feelings and opinions with facts. You might tell your teenager that he or she is not allowed to talk on a cell phone while driving because cell phones distract drivers and cause accidents. That’s a fact. Stick to the present. Concentrate on the issue at hand. Aim to understand and communicate rather than win. Frequently, you and your child will simply have to agree to disagree. You may not end the disagreement in smiles, but both of you should feel understood and respected. Compromise whenever possible, but recognize that a compromise may not please either you or your child completely. Don’t be discouraged! Respectful disagreement takes practice, and if your family is like every other, you’re sure to get plenty of opportunities for that.
Schedule a Meeting with Your Child’s Counselor
Do you know who your child’s counselor is? Does your child know? Now is the time to get acquainted with this person who can help you and your child make it to graduation. You want to make sure that he or she remembers your child—for the right reasons.
Schedule an Appointment
Call the school to find out the name of your child’s counselor and schedule an appointment. You don’t have to have a specific problem to solve, but in order to get the most out of your meeting, try to keep focused on a single topic. Here are some ideas:
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Getting to know you. Share your hopes and dreams for your child. Tell the counselor about her interests, activities, and jobs so the counselor can begin to create a picture of your child. Let the counselor know your child’s academic strengths and weaknesses, and ask advice about the best courses for him. Show me the money. If you’re unsure how to pay for college, the high school counselor can provide information about high school scholarships, grants, awards, and financial aid for school. They may even be able to walk you through the forms that you and your child will need to complete. So many choices. Your child’s counselor has information about hundreds of colleges. Ask which colleges might be a good fit for college student financial aid. The counselor should be able to let you know about college fairs in your area, when college admissions representatives will visit your child’s school, and even FAFSA student loans.
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opportunities for that.
Schedule a Meeting with Your Child’s Counselor
Do you know who your child’s counselor is? Does your child know? Now is the time to get acquainted with this person who can help you and your child make it to graduation. You want to make sure that he or she remembers your child—for the right reasons.
Schedule an Appointment
Call the school to find out the name of your child’s counselor and schedule an appointment. You don’t have to have a specific problem to solve, but in order to get the most out of your meeting, try to keep focused on a single topic. Here are some ideas:
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Getting to know you. Share your hopes and dreams for your child. Tell the counselor about her interests, activities, and jobs so the counselor can begin to create a picture of your child. Let the counselor know your child’s academic strengths and weaknesses, and ask advice about the best courses for him. Show me the money. If you’re unsure how to pay for college, the high school counselor can provide information about high school scholarships, grants, awards, and financial aid for school. They may even be able to walk you through the forms that you and your child will need to complete. So many choices. Your child’s counselor has information about hundreds of colleges. Ask which colleges might be a good fit for college student financial aid. The counselor should be able to let you know about college fairs in your area, when college admissions representatives will visit your child’s school, and even FAFSA student loans. On the right track. If your child is excelling in school, inquire about advanced classes, programs, and extracurricular opportunities to keep her challenged. If your child is struggling, ask about tutors, peer assistance programs, and outside help. Testing, testing. Find out what college admission and placement tests your child should be taking. The high school counselor can keep you informed about test dates, locations, costs, and can help you interpret test scores. Red flags. If your child or your family is going through a difficult time—divorce, illness or death in the family, unemployment, etc., be sure and let the counselor know, especially if these circumstances are affecting your child’s grades.
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Keep in Touch
Even if you only have one formal facetoface meeting with the counselor, be sure that she knows you are out there, active and concerned about your child’s school progress. How?
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Say “hello” when you see the counselor at school functions like open houses, parentteacher conferences, school plays and concerts, athletic events, and award ceremonies. Don’t discuss your child’s academic situation, just be friendly and visible. Attend schoolsponsored workshops and parent meetings related to course selection, graduation requirements, and college planning. You might be surprised how few parents attend these events. Your presence there will show how committed you are to your child’s educational success. Call or email with questions. Most counselors will reply to phone and email messages from parents. This respects their time and yours.
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and yours.
Set Aside Twentyfive Dollars a Month for College
Without Raiding the Sofa Cushions
Though it is hard to predict exactly what the cost of your child’s college education will be, you can commit now to saving something— anything—to help pay for it. The key is to make a plan and stick with it. Even the most modest amount of money saved regularly and consistently can grow into an important source of financial aid for school. Plus, setting up a college saving program shows your child that you expect him or her to go to college and that you believe college student financial aid is a goal worth working toward. Why twentyfive dollars? Many 529 college savings plans allow people to begin investing with only twentyfive dollars a month, so that’s a good starting place. Where will that twentyfive dollars come from? Here are some ideas.
Change You Can Believe In
Start a coin jar and ask everyone in the family to empty their pockets and/or coin purses into it at the end of the day (twentyfive dollars a month is about eightythree cents a day). One way to make sure you will have coins to contribute is always pay with paper money and never use change. That way you will get change back from every transaction.
Bank on Coupon Savings
When you use coupons to reduce your grocery bill, don’t just congratulate yourself on the money you saved. Take that amount (it’s usually listed at the end of the grocery bill) and put it aside. Coupon money will add up quickly.
Create a Game
As a family, come up with ideas for making saving fun. For instance, every time a letter from a college arrives, toss a dollar into the kitty. When the college is on your child’s dream list, increase the amount to five dollars. When your child brings home good grades on a report card, don’t pay him or her for every A or B. Pay the college fund instead.
Skip the Vending Machines
If you typically hit the vending machine for an afternoon soda or candy bar, start bringing those treats from home. Vending machine soft drinks can cost a dollar or more; a twelvepack of soda for four dollars works out to thirtythree cents a can. Ditto for candy bars, chips, and cookies. Pack your own and earmark the savings for college.
Rethink Your Lunch Plans
If you eat lunch out every day, cut back even one day to save an average of seven dollars a week. When you do eat out, order water instead of soda. You’ll save nearly two dollars.
Get to Know Your Library
Libraries have more than books. You can borrow videos, DVDs, even video games for a lot less money than you’d spend at the corner video store. Most libraries also carry magazines; if they carry your favorite, you can cancel your subscription and send that money to the college fund.
Review Your Bills
Are you paying for things you don’t use? Do you need call waiting and caller ID on your phone? Do you need your phone? (Many www.EduGuide.org 12 ONLINE EDUGUIDE people are giving up their land lines and making their cell phone their main line.) Are you paying for premium cable channels that you never watch? Will bundling your phone and Internet cost you less than paying for them separately? Is your cell phone plan the most
college fund.
Review Your Bills
Are you paying for things you don’t use? Do you need call waiting and caller ID on your phone? Do you need your phone? (Many people are giving up their land lines and making their cell phone their main line.) Are you paying for premium cable channels that you never watch? Will bundling your phone and Internet cost you less than paying for them separately? Is your cell phone plan the most cost effective choice for your family? Can you read the daily newspaper online instead of paying for a subscription? Take the time to ask questions like these, and crunch the numbers to discover where a few extras dollars may be hiding each month.
Beat the Budget
If you budgeted one hundred fifty dollars for groceries and you spent only one hundred fortysix, put that four dollar savings into the college fund. If you figured it would take forty dollars to fill up the car and it only took thirtythree dollars, put that seven dollars in the college fund.
Share Your Good Fortune
When you receive unexpected money, such as a rebate, refund, or bonus, split it between yourself and the college fund. Encourage your child to do the same with birthday and holiday money. For more moneysaving ideas, sign up for Michele Singletary’s weekly personal finance enewsletter. Do an online search for “money saving tips” and explore Web sites like these: The Simple Dollar The Dollar Stretcher Better Budgeting MoneySaving Mom
Quiz: How Much Do You Know About Saving Money for College?
EduGuide Staff
1. Have you started saving for your child’s college education? A. Of course. I’ve been putting money in a taxfree college savings plan since my kid was three. B. Sort of. When I get bonuses or gift money or tax refunds, I try to put them away for college. C. Not really. I’m hoping my child will be brilliant, or an athlete, or maybe a brilliant athlete, and get a free ride to college. Have you and your child completed the FAFSA? A. Yes. I finished my taxes as soon after January 1 as I could so we could meet the FAFSA filing deadline for our state. B. No; I don’t think we’ll qualify for financial aid, so why bother? C. What is FAFSA? Do you know where to find scholarship information? A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships that might fit my child. B. Not really. I thought that the high school guidance counselor was supposed to give students information about scholarships. C. Scholarships? My kid? I guess I can dream, can’t I?
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If most of your answers are A's, you are serious about helping fund your child’s college education. You and your child are most likely well prepared to pay for college. Even though you have a college nest egg built up and you know what scholarships your child is eligible for, you may want to read the ShortCut “Choose the Right Student Loans for College: The Pros and Cons of Five Popular Options” just in case you need to make up the difference between your child’s tuition and your current savings. The article “The Real Cost of College” will help you keep on track during your child’s senior year to meet financial aid deadlines. And read “FAFSA 101: Tips www.EduGuide.org 13 ONLINE EDUGUIDE and Lifesavers to Maximize College Student Financial Aid” to make sure your child gets the best financial aid package possible. If you answered mostly B's, you have good intentions but not a lot of cash set aside for your aspiring college student. It’s not too late,
MoneySaving Mom
Quiz: How Much Do You Know About Saving Money for College?
EduGuide Staff
1. Have you started saving for your child’s college education? A. Of course. I’ve been putting money in a taxfree college savings plan since my kid was three. B. Sort of. When I get bonuses or gift money or tax refunds, I try to put them away for college. C. Not really. I’m hoping my child will be brilliant, or an athlete, or maybe a brilliant athlete, and get a free ride to college. Have you and your child completed the FAFSA? A. Yes. I finished my taxes as soon after January 1 as I could so we could meet the FAFSA filing deadline for our state. B. No; I don’t think we’ll qualify for financial aid, so why bother? C. What is FAFSA? Do you know where to find scholarship information? A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships that might fit my child. B. Not really. I thought that the high school guidance counselor was supposed to give students information about scholarships. C. Scholarships? My kid? I guess I can dream, can’t I?
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If most of your answers are A's, you are serious about helping fund your child’s college education. You and your child are most likely well prepared to pay for college. Even though you have a college nest egg built up and you know what scholarships your child is eligible for, you may want to read the ShortCut “Choose the Right Student Loans for College: The Pros and Cons of Five Popular Options” just in case you need to make up the difference between your child’s tuition and your current savings. The article “The Real Cost of College” will help you keep on track during your child’s senior year to meet financial aid deadlines. And read “FAFSA 101: Tips and Lifesavers to Maximize College Student Financial Aid” to make sure your child gets the best financial aid package possible. If you answered mostly B's, you have good intentions but not a lot of cash set aside for your aspiring college student. It’s not too late, though. The article “FAFSA Helps Families Access the Four Types of Financial Aid for School” shows why this task is so important for collegebound families. Read the ShortCut “Know How Much To Save for College: Use a College Saving Calculator” to get an idea of how saving now can help offset college costs later. If you answered mostly C's, you need everything the EduGuide Help My Child Pay for College: Understanding College Student Financial Aid offers. Your child can still go to college; you’ll just have to work harder to make it happen financially. Take comfort in the statistics presented in the article “The Real Cost of College,” and then read “Choose the Right Student Loans for College: Pros and Cons of Five Popular Options.” Learn why completing the FAFSA is crucial for you and your child in “FAFSA Helps Families Access the Four Types of Financial Aid for School.” But don’t just rely on financial aid and loans. Read the ShortCut “Set Aside $25 a Month for College,” and begin saving today.
Choose a Taxfree College Savings Account
The Pros and Cons of Five Popular Options Eduguide Staff 14 ONLINE EDUGUIDE
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College,” and begin saving today.
Choose a Taxfree College Savings Account
The Pros and Cons of Five Popular Options Eduguide Staff
Even if your child will not be college age for quite a few years, it’s never too early to begin saving money for college. Here are five different, inexpensive ways to start a taxfree college savings account. In order to pick the one that’s right for you, weigh the pros and cons of each. But in the end, any savings program is better than none.
529 Savings Plans
Pick the state that has the best plan for you. Choosing your home state’s plan can result in tax and other benefits. In Michigan, EduGuide’s home state, families can begin with as little as twentyfive dollars in the Michigan Education Savings Program (MESP). (See related ShortCut: “Set Aside Twentyfive Dollars a Month for College: Without Raiding the Sofa Cushions.”) Pro: Contributions are eligible for state tax deductions. In Michigan, it’s a $10,000 tax deduction ($5,000 for single filers). You can use 529 funds at any accredited postsecondary college in the United States and at many schools abroad. Con: The plan’s taxfree status is up for renewal by Congress in 2010. The account value may fluctuate depending on investment options.
529 Prepaid Plans
Pay tuition now and lock in today’s rates. Most states have prepaid plans. Example: with the Florida Prepaid College Plan, you can buy your fiveyearold two years of tuition at community college (a lump sum of $4,193) with $37.14 paid every month until your child starts college. The same two years of college thirteen years from now when your child starts college could be nearly $10,000. By prepaying and locking in today’s rate, you could save $5,900. If you didn’t lock in today’s tuition rate with a prepaid plan, you’d need to save seventyseven dollars each month to pay for the same two years of college. Pro: Guarantees against rising tuition costs. Monthly payment contract will motivate you to save. Can be used to pay for tuition at out ofstate and private colleges. Some states offer tax benefits associated with these plans. Con: State residency requirements. Some plans have restrictions on transfers to another child. The money is tied up until the child starts college.
Education Savings Account
Open an account with any bank, broker, or mutual fund—much like retirement savings. Pro: Can be used for college or any educational expenses K12—including books, private school tuition, computers, and tutors. Lets you pick your own investments. Con: Limited to $2,000/year per child. Tax benefits for some plans phase out for some families making more than $95,000. May tempt you to spend before your child’s college years.
Cash Back
Buy selected goods with a registered credit card and get one to ten percent cash back for a college savings account. Upromise, EdExpress.com, Babymint.com and MBNA Fidelity credit cards offer such programs. Pro: Save while you spend. Average annual savings range from fifty to five hundred dollars. Registered friends can direct their earnings to your account. Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into your child’s account.
Roth and Traditional IRAs 15 ONLINE EDUGUIDE
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earnings to your account. Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into your child’s account.
Roth and Traditional IRAs
Tax laws now let you take money from these retirement accounts to pay for college without penalty. You can open IRA accounts at any bank or investment agency. Pro: Some experts recommend saving for retirement or a home before saving for college. This option allows you to save for both and choose how to spend later. You can pick your own investments. Con: Limited to $5,000 a year per person if you are fortynine or younger in 2008. Some restrictions apply. May confuse your retirement planning; your retirement fund may not attract contributions from family members.
Ace the FAFSA
Tips and Lifesavers for Maximizing College Student Financial Aid EduGuide Staff
Making mistakes on or leaving information out of your FAFSA could delay your application and possibly make you lose out on some financial aid for school. The National Association of Student Financial Aid Administrators (NAFSAA) has compiled a list of the most common errors people make on the FAFA. As you and your child complete the FAFSA, try to avoid these mistakes:
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Leaving blank fields–enter a "0 or "not applicable" instead of leaving a blank. Too many blanks may cause miscalculations and an application rejection. Using commas or decimal points in numeric fields; always round to the nearest dollar. Listing incorrect social security number or driver's license number; check these entries and have someone else check them too. Triple check to be sure. Entering the wrong federal income tax paid amount; obtain your federal income paid amount from your income tax return forms not your W2 form(s). Listing adjusted gross income as equal to total income; these are not the same figure. In most cases, the AGI is larger than the total income. This mistake is particularly common. Listing marital status incorrectly; only write yes if you're currently married. If you're separated, you're considered married. Enter your marital status on the day you sign the FAFSA or Renewal FAFSA. Listing parent marital status incorrectly; the custodial parent's marital status is needed; if they've remarried, you'll need the stepparent's information too. Leaving the question about drugrelated offenses blank; If you're unsure about something, find out before you submit your FAFSA instead of leaving a blank. A conviction doesn't necessarily disqualify you from getting aid. Forgetting to list the college; obtain the federal school code for the college you plan on attending and list it, along with any other schools to which you've applied. Forgetting to sign and date; if you're filling out the paper FAFSA, be sure to sign it. If you're filing electronically, be sure to obtain your PIN from www.pin.ed.gov. Your PIN is your electronic signature and will always be assigned to you only. Entering the wrong address; this is the student’s permanent address, not a campus or summer address.
Here is a list of materials that will help you and your child complete the FAFSA: Your child’s and your social security numbers (can be found on social security card) Your child’s and your driver's license (if any) l Your child’s W2 forms for the previous year and other records of money earned l Your child’s most recent federal income tax return—IRS Form 1040, 1040A, 1040EZ, 1040Telefile, foreign tax return, or tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia www.EduGuide.org ONLINE EDUGUIDE l Your (the parents’) federal income tax return for the previous year (if your student is a dependent student as defined by federal criteria)
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planning; your retirement fund may not attract contributions from family members.
Ace the FAFSA
Tips and Lifesavers for Maximizing College Student Financial Aid EduGuide Staff
Making mistakes on or leaving information out of your FAFSA could delay your application and possibly make you lose out on some financial aid for school. The National Association of Student Financial Aid Administrators (NAFSAA) has compiled a list of the most common errors people make on the FAFA. As you and your child complete the FAFSA, try to avoid these mistakes:
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Leaving blank fields–enter a "0 or "not applicable" instead of leaving a blank. Too many blanks may cause miscalculations and an application rejection. Using commas or decimal points in numeric fields; always round to the nearest dollar. Listing incorrect social security number or driver's license number; check these entries and have someone else check them too. Triple check to be sure. Entering the wrong federal income tax paid amount; obtain your federal income paid amount from your income tax return forms not your W2 form(s). Listing adjusted gross income as equal to total income; these are not the same figure. In most cases, the AGI is larger than the total income. This mistake is particularly common. Listing marital status incorrectly; only write yes if you're currently married. If you're separated, you're considered married. Enter your marital status on the day you sign the FAFSA or Renewal FAFSA. Listing parent marital status incorrectly; the custodial parent's marital status is needed; if they've remarried, you'll need the stepparent's information too. Leaving the question about drugrelated offenses blank; If you're unsure about something, find out before you submit your FAFSA instead of leaving a blank. A conviction doesn't necessarily disqualify you from getting aid. Forgetting to list the college; obtain the federal school code for the college you plan on attending and list it, along with any other schools to which you've applied. Forgetting to sign and date; if you're filling out the paper FAFSA, be sure to sign it. If you're filing electronically, be sure to obtain your PIN from www.pin.ed.gov. Your PIN is your electronic signature and will always be assigned to you only. Entering the wrong address; this is the student’s permanent address, not a campus or summer address.
Here is a list of materials that will help you and your child complete the FAFSA:
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Your child’s and your social security numbers (can be found on social security card) Your child’s and your driver's license (if any) Your child’s W2 forms for the previous year and other records of money earned Your child’s most recent federal income tax return—IRS Form 1040, 1040A, 1040EZ, 1040Telefile, foreign tax return, or tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia Your (the parents’) federal income tax return for the previous year (if your student is a dependent student as defined by federal criteria) Your child’s untaxed income records for the previous year —Social Security, Temporary Assistance to Needy Families (TANF), welfare, or veterans benefits records Your child’s current bank statements Your child’s current business and investment mortgage information, business and farm records, stock, bond, and other investment records Documentation that your child is a U.S. permanent resident or other eligible noncitizen.
Bonus tip: If you apply online, your application will be processed faster and will likely be more accurate because your application will be processed on the FAFSA Web site to catch errors. The online application also provides worksheets that will calculate amounts and enter them into the field for you. You can save and continue the FAFSA at any time online and then sign your application electronically www.EduGuide.org 17 ONLINE EDUGUIDE using a personal identification number (PIN) which you can get from the Federal Student Aid PIN Web site.
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Documentation that your child is a U.S. permanent resident or other eligible noncitizen.
Bonus tip: If you apply online, your application will be processed faster and will likely be more accurate because your application will be processed on the FAFSA Web site to catch errors. The online application also provides worksheets that will calculate amounts and enter them into the field for you. You can save and continue the FAFSA at any time online and then sign your application electronically using a personal identification number (PIN) which you can get from the Federal Student Aid PIN Web site. There are resources available if you decide you need assistance filling out the FAFSA. Check the FAQ section on the FAFSA Web site, or call the Federal Student Aid Information Center at 18004FED AID (18004333243). You can also participate in College Goal Sunday in your state for personal assistance completing the FAFSA. College Goal is held every February at a college campus near you.
Know How Much to Save for College
Use a College Savings Calculator
If you’re not sure what kind of financial goals to set to fund your child’s college education, a college saving calculator, such as this one on the TIAACREF Web site, can help as you think about saving money for college.
Information You’ll Need before You Start
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Cost of tuition for one year of college today: If you’re not sure where your child might go to school, simply pick a public four year college in your state and check its Web site for its annual tuition. Tuition inflation rate: This calculator sets a default rate of six percent. Depending on the school, the area of the country, and the current economy, this figure could be between two and eight percent. Years to save before college: Assume your child will start college at eighteen, and subtract his or her current age to arrive at this number. Initial savings: the amount of money you already have set aside for college Contribution amount: If you have a dollar amount you’d like to contribute monthly, put it in here. You can change the amount to see how the totals change on the calculator. Assumed rate of return: This calculator sets a default rate of six percent.
What the Calculator Will Tell You
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What four years of college will cost by the time your child attends How much money your savings plan will have earned by that time Your savings shortfall What you would need to do to make up the difference, either as a lump sum, additional monthly contributions, or additional yearly contributions
Keep in mind that most students do not pay full price for college (see “The Real Cost of College”). Note: This exercise focuses on tuition only. College costs usually include room and board, books, and other costs.
Putting It All Together: Three Examples
1. Aaron and Julie have a new daughter, Alicia. They want to open a 529 college savings plan for her with the hope that she will attend Big State University in eighteen years. They already have five hundred dollars to open up an account. They are not sure how much to invest monthly, but think that fifty dollars a month sounds reasonable. Let’s see: Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent ONLINE EDUGUIDE l Years to save before college: 18 l Initial savings: $500
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Know How Much to Save for College
Use a College Savings Calculator
If you’re not sure what kind of financial goals to set to fund your child’s college education, a college saving calculator, such as this one on the TIAACREF Web site, can help as you think about saving money for college.
Information You’ll Need before You Start
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Cost of tuition for one year of college today: If you’re not sure where your child might go to school, simply pick a public four year college in your state and check its Web site for its annual tuition. Tuition inflation rate: This calculator sets a default rate of six percent. Depending on the school, the area of the country, and the current economy, this figure could be between two and eight percent. Years to save before college: Assume your child will start college at eighteen, and subtract his or her current age to arrive at this number. Initial savings: the amount of money you already have set aside for college Contribution amount: If you have a dollar amount you’d like to contribute monthly, put it in here. You can change the amount to see how the totals change on the calculator. Assumed rate of return: This calculator sets a default rate of six percent.
What the Calculator Will Tell You
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What four years of college will cost by the time your child attends How much money your savings plan will have earned by that time Your savings shortfall What you would need to do to make up the difference, either as a lump sum, additional monthly contributions, or additional yearly contributions
Keep in mind that most students do not pay full price for college (see “The Real Cost of College”). Note: This exercise focuses on tuition only. College costs usually include room and board, books, and other costs.
Putting It All Together: Three Examples
1. Aaron and Julie have a new daughter, Alicia. They want to open a 529 college savings plan for her with the hope that she will attend Big State University in eighteen years. They already have five hundred dollars to open up an account. They are not sure how much to invest monthly, but think that fifty dollars a month sounds reasonable. Let’s see:
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Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent Years to save before college: 18 Initial savings: $500 Monthly contributions: $50 Rate of return: 6 percent
According to the calculator, in eighteen years, four years at Big State University will cost $112,380, or about $25,689 per year. Aaron and Julie’s 529 Plan will have $20,567, not quite enough to cover one year’s tuition. If they set their monthly contributions at $100 per month, they will have $40,550, enough to cover all of Alicia’s first year of school and $14,800 of her second year. To fully fund Alicia’s college tuition, they would need to set aside $265 per month. 2. Phil and LaDonna have a tenyearold son, Ty. They haven't really thought much about college, but now that Ty is approaching middle school, they think they should invest something toward his college education. They plan to start with the thousand dollars they www.EduGuide.org 19 ONLINE EDUGUIDE received as a federal tax refund, and then deposit one hundred fifty dollars a month in a 529 plan. Will that work? Here’s how the numbers work out:
and Julie’s 529 Plan will have $20,567, not quite enough to cover one year’s tuition. If they set their monthly contributions at $100 per month, they will have $40,550, enough to cover all of Alicia’s first year of school and $14,800 of her second year. To fully fund Alicia’s college tuition, they would need to set aside $265 per month. 2. Phil and LaDonna have a tenyearold son, Ty. They haven't really thought much about college, but now that Ty is approaching middle school, they think they should invest something toward his college education. They plan to start with the thousand dollars they received as a federal tax refund, and then deposit one hundred fifty dollars a month in a 529 plan. Will that work? Here’s how the numbers work out:
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Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent Years to save before college: 8 Initial savings: $1,000 Monthly contributions: $150 Rate of return: 6 percent
According to the calculator, in eight years, four years at Big State University will cost $62,752, or $14,345 per year. By investing one hundred fifty dollars a month, Phil and LaDonna will have saved $20,321, enough to pay for one full year and part of a second. If they were to invest $265 a month (what Aaron and Julie need to invest to fully fund their child’s education), they would have $35,609, enough to pay for about 2 1/2 years of college. To fully fund Ty’s college education, Phil and LaDonna will have to invest $455 per month. 3. James and Elise have a fifteenyearold daughter, Mandy, who just informed them that she wants to go to Big State University in three years. James and Elise have never really thought much about paying for college. Mandy is a smart girl, but they’re not sure how much she might get in scholarships. They decide to start putting something away but aren’t sure how much good it will do. Here are the numbers:
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Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent Years to save before college: 3 Initial savings: $500 Monthly contributions: $200 Rate of return: 6 percent
According to the calculator, in three years, four years at Big State University will $46,892, or $12,044 per year. By investing $200 per month, James and Elise will be able to pay $8,482 towards Mandy’s first year of college. If they invest $455 per month (what Phil and LaDonna need to invest to fully fund their child’s education), they will have $19,007, enough to pay for all of Mandy’s first year and about twothirds of her second year. To fully fund her education, they will need to invest a whopping $1,073 per month. These examples illustrate the benefits of investing early for your child’s college education. But if you haven’t started saving yet, does that mean you shouldn’t? Should James and Elise even bother if all they can put aside is two hundred dollars a month? Absolutely. The $8,482 they save is $8,482 they won’t have to borrow and pay back later. Saving is always worthwhile. You may wonder if saving now will cut your child’s financial aid later. A little for some families, but you’re still better off having money than not, just as you’re better off earning wages than not despite income taxes. Using today’s aid formula, a low or middleincome family could lose up to five dollars in aid for every one hundred dollars extra they saved in any of the current college savings tools.
Choose the Right Student Loans for College
The Pros and Cons of Five Popular Options EduGuide Staff
Student loan information can seem overwhelming. Here is a quick review of the five types of student loans for college and the pros and cons of each. www.EduGuide.org 20 ONLINE EDUGUIDE
family could lose up to five dollars in aid for every one hundred dollars extra they saved in any of the current college savings tools.
Choose the Right Student Loans for College
The Pros and Cons of Five Popular Options EduGuide Staff
Student loan information can seem overwhelming. Here is a quick review of the five types of student loans for college and the pros and cons of each.
Perkins
Best federal government needbased loan for students. Pro: Lower fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need.
Stafford
Most common federal student loan. Pro: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan.
PLUS (Parent Loans for Undergraduate Students)
Most common federal parent loan. Also used by grad students. Pro: Fixed interest rate. Can cover full cost of attendance minus other aid. Con: Subject to credit approval. Not as good a deal as Perkins or Stafford.
Sponsored
Provided by some colleges, states, employers, and scholarship groups. Pro: Can be a better deal than some federal loans. Con: Harder to find. Ask around and use scholarship directories.
Private
Provided by banks and credit unions independent of the federal system. Pro: May cover expenses beyond aid award. Con: Subject to credit approval. Read the fine print—some private loans may compete with PLUS loans, but some are way more expensive than federal loans.
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expensive than federal loans.
Interview a Financial Aid Advisor about Financial Aid Requirements
A Dozen Questions You Need to Ask EduGuide Staff
Take the time to meet with your college’s financial aid adviser to ask questions about financial aid requirements and student loan information. Don’t be embarrassed: it’s their job to explain this complex topic and to help you (not prevent you) from attending their college. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. What is the total annual cost to attend this college? Are there any extra costs that I need to plan for? What employment opportunities (including workstudy) are available for students? What scholarships might I be eligible for? What reduced cost, sponsored student loans am I eligible for? What loans have the lowest interest rates and fees? When would I have to start paying back the loans, and how flexible is the repayment plan? Will the school reduce my financial aid or loans if I also get a private scholarship? What would cause me to lose my financial aid? Depending on what degree I earn, what kind of loan forgiveness programs are available? Would the loans I’m considering be eligible for loan forgiveness? Based on the amount I’m borrowing, what will I owe at the time I graduate? What will my monthly payments be? How much does the average student owe when at graduation?
Source: Christine MacDonald, The Detroit News.
Quiz: Do I Know How To Pay for College?
Have you thought about ways you can help make college more affordable? A. Yes. I’m taking some AP classes so I can get some college credits out of the way early, and I’m take challenging classes in my senior year so I don’t have to take any noncredit remedial classes in college. B. Well, I’m trying to keep my grades up so that I might get a scholarship or two, and I’m considering attending community college for a couple of years to keep costs down. C. What can I do? I’m assuming my parents have a sort of college fund for me. 2. Have you completed the FAFSA? A. Yes. My parents and I attended a College Goal Sunday event and filed the FAFSA in plenty of time to meet both state and federal deadlines. B. Me? Aren’t my parents supposed to do that? I don’t understand all that financial stuff. C. What is FAFSA? 3. Do you know where to find scholarship information? www.EduGuide.org ONLINE EDUGUIDE A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships I might qualify for. 1.
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Source: Christine MacDonald, The Detroit News.
Quiz: Do I Know How To Pay for College?
1. Have you thought about ways you can help make college more affordable? A. Yes. I’m taking some AP classes so I can get some college credits out of the way early, and I’m take challenging classes in my senior year so I don’t have to take any noncredit remedial classes in college. B. Well, I’m trying to keep my grades up so that I might get a scholarship or two, and I’m considering attending community college for a couple of years to keep costs down. C. What can I do? I’m assuming my parents have a sort of college fund for me. Have you completed the FAFSA? A. Yes. My parents and I attended a College Goal Sunday event and filed the FAFSA in plenty of time to meet both state and federal deadlines. B. Me? Aren’t my parents supposed to do that? I don’t understand all that financial stuff. C. What is FAFSA? Do you know where to find scholarship information? A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships I might qualify for. B. I stopped into the guidance counselor’s office to see if she had any information about scholarships, but didn't have much. I guess I should see if she has any new information. C. Scholarships? I’m not a brain or an athlete. Who’s going to give me free college money? Do you know what types of college student financial aid is available to help you pay for school? A. Yes. I have a pretty good idea of how much my parents have saved; I’ve completed the FAFSA; I’ve looked into scholarships and grants offered by community groups, my state, and the college I plan to attend; and I’ve done some research on student loans. B. I know there’s financial aid out there, but I’m not sure what I qualify for. I think I could get a student loan, but I’m not really sure how to do that. It’s very confusing. C. I keep hoping my folks have a nice college fund for me. Otherwise, we’d better win the lottery or I’m out of luck. College is just too expensive.
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If you answered mostly A's, you’re well on your way to paying for college. Get some ideas for managing your student loans the EduGuide ShortCut “Save Money on Your Student Loans for College: Six Tips that Help Keep Costs Down.” Learn how to keep your financial aid once you have it by reading the Article “Four Ways to Lose Your Financial Aid for School.” If you answered mostly B's, you have a general idea about college funding possibilities, but you need more information to proceed with confidence into the world of financial aid, loans, and scholarships. The ShortCuts “Choose the Right Student Loans for College: The Pros and Cons of Five Popular Options,” “Find Free College Money on the Web: The Top Ten Sites,” and “Ace the FAFSA: Tips and Lifesavers for Maximizing College Student Financial Aid” will get you started. If you answered mostly C's, you need everything in the EduGuide Help Me Pay for College: With or without My Parents' Checkbook. Start by reading the article “The Real Cost of College” to discover that a college education is more affordable than you think. And don’t the miss the ShortCut “Interview a Financial Aid Adviser about Financial Aid Requirements: A Dozen Questions Your Need To Ask.”
Find Free College Money on the Web
23 ONLINE EDUGUIDE www.EduGuide.org
The Top Ten Sites
the miss the ShortCut “Interview a Financial Aid Adviser about Financial Aid Requirements: A Dozen Questions Your Need To Ask.”
Find Free College Money on the Web
The Top Ten Sites
Scholarships provide millions of dollars of free college money to students that they don’t have to pay back. The Web makes searching for the right scholarship easy—but it helps to know where to look: 1. www.fafsa.ed.gov In addition to being the place to fill out the FAFSA online, this site provides worksheets, information on financial aid requirements and scholarships, a college savings calculator, and more. www.fastweb.com This is a thorough database featuring thousands of scholarships affiliated with Monster, an online career finder. Match your profile to scholarships to save time. www.scholarshipexperts.com Want to search 2.4 million scholarships worth $14 billion? This is the place. http://apps.collegeboard.com/cbsearch_ss/welcome.jsp The College Board (the folks who run the SATs) provides a search for $3 billion worth of scholarships. www.collegetoolkit.com This site features a searchable scholarship database as well as cool features such as “Can I Get In?” Type in your dream college and qualifications and this feature will calculate your chances of getting accepted. www.collegenet.com/mach25/app This allows you to search scholarships by keyword. Try using keywords that describe your interests and background. www.mappingyourfuture.org Run by the National Association of Student Financial Aid Administrators (NASFAA), this site lists loans, grants, scholarships, and workstudy programs with helpful links to other resources. www.finaid.org With information on financial aid and search tips, the site is a complement to www.fastweb.com www.scholarshiphelp.org If you're looking for a breakdown of the process—from writing scholarship application essays to rating scholarship search sites—look no further. www.collegegoalsundayusa.org Another site by NAFSAA where you can find links to College Goal Sunday sites by state. Go to College Goal Sunday and let the pros help you get it done, for free, on time.
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Content by Susan J. Demas, a 2006 Knight Foundation Fellow in Nonprofits Journalism.
Save Money on Your Student Loans for College
Six Tips That Help Keep Costs Down
www.EduGuide.org 24 ONLINE EDUGUIDE Finding your way through the maze of loan choices can be intimidating but it will pay off in the long run: the difference between the best loans and the worst can be thousands of dollars.
Content by Susan J. Demas, a 2006 Knight Foundation Fellow in Nonprofits Journalism.
Save Money on Your Student Loans for College
Six Tips That Help Keep Costs Down
Finding your way through the maze of loan choices can be intimidating but it will pay off in the long run: the difference between the best loans and the worst can be thousands of dollars. Use the following seven tips from the experts offer important student loan information to keep you out of trouble and on the path to saving money: 1. File the FAFSA federal aid form as soon as possible in February after you get your tax forms. The ShortCut “Ace the FAFSA: Tips and Lifesavers for Maximizing College Student Financial Aid” will show you how. For background on the benefits of filing the FAFSA, read “FAFSA Helps Families Access Four Types of Financial Aid for School.” Don’t borrow more than you really need. Your financial aid award letter will tell you how much loan aid you qualify for. Some students borrow less than the maximum to save themselves future payments; some borrow more. Before doing either, ask for advice from a financial aid counselor at your college. Note: Borrowing more than the standard maximum without the approval of your school’s financial aid office can put your other aid at risk. Investigate sponsored loans. Some colleges, states, employers, and scholarship groups provide special private loans at rates that are even better than some federal loans. But you’ll have to check scholarship directories to find them. A good place to start looking is the ShortCut “Find Free College Money on the Web: The Top Ten Sites.” Apply for loans accurately and on time, or you might not get the money before your first college payment is due. Also, if you’re applying for private loans or the federal PLUS loan, make sure there are no errors on your credit report that can affect the rates you’re eligible for. You can get your report free at Annual Credit Report.com. Consider career choices in your loan plan. Some careers will pay better than others and make it easier to make your monthly payments. And some service opportunities such as the Peace Corps, Teach for America, and the military may provide loan forgiveness programs for special public service. Compare loans. Knowing how much money you can borrow may seem like the most important piece of student loan information you need, but consider all these factors to save the most money in interest and fees over time: Interest rate. The lower the better, but also consider whether the rate is fixed (stays the same throughout the life of the loan) or variable (can increase or decrease based on federal interest rates and other factors) Interest accrual. Subsidized loans don’t begin to accrue interest until graduation, which saves a lot of money. Subsidized loans are awarded based on need, however. Fees. Some lenders charge processing fees that you either pay up front or that are taken out of the amount that you’ve borrowed. So make sure you know the exact dollar amount of your fees. Repayment options. For some loans, repayment starts sixty days after the first loan check is sent, but others can be delayed until months after graduation—or longer if the borrower encounters an economic hardship. Flexibility is good, but it comes at a price: find out how much this option adds to the loan amount. When comparing repayment options, be sure to ask the following questions: When does repayment start? Is the date flexible? How long will I have to pay off the loan? Are there any penalties for paying off the loan early? And are there any incentives for ontime payment?
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Source: Christine MacDonald, The Detroit News.
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Source: Christine MacDonald, The Detroit News.
Help My High School Senior Know How to Write a College Admissions Essay
College Essay Tips That Work
Use the following tips to help your teen learn how to write a college admissions essay. The essay doesn’t have to mention every high school success or extracurricular activity (the rest of the college application will do this). Instead, it should show admissions officials why your kid and their school are a great match.
Choose a Topic
If your teen is struggling to choose an essay topic, have him or her create a chart that lists one outstanding character trait, one interest, one ability, and one value. Next, have your teen write down a life experience that illustrated this trait/interest/ability/value. Finally, write a brief description of an outcome or a lesson learned. Here’s an example: Trait/Interest/ Example from Life Ability/Value Loyalty Outcome/Lesson Learned
I stuck by my best I learned that being a good friend comes at a cost: friend when she driving my friend to rehab meant I missed rehearsals injured her knee and lost the lead in the senior play, but it was worth it to help a friend.
Completing this chart should give your teen four good essay topics to choose from.
Connect with the College
In the essay, make sure your teen connects his or her talents and passions to a program or focus of the college (review the college brochure or Web site for ideas). If, for example, the college has a strong tradition of community outreach and your teen has just completed a servicelearning project, work that information into the essay. Remember: the purpose of the college essay is to convince the admissions folks that your teen and their school are a perfect match.
Draft the Essay
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Match the essay’s structure to the topic. Traditional essay form—with an introduction, body, and conclusion—works well for an essay that defends a position (for example, “The U.S. should never negotiate with terrorists”). Story, or narrative, form is very effective in describing a personal experience (for instance, how a teacher changed your life). “Show” rather than “tell,” by using specific examples and concrete language (words that describe things you can see, hear, touch, feel, and smell). Use facts to prove an assertion or support an opinion. Keep the writing focused. If the essay seems to drift into a different subject area, it may be that your teen would rather write on that topic instead.
Revise and Proofread
Have your teen read the draft aloud to you. Can you name the main idea and point of view? Does the first sentence grab your attention? Is there a conclusion and does it summarize the important points? l Keep an eye out for unnecessary words. For example, replace “in the modern world of today,” with “today” and shorten “because of the fact that” to “because.” Edit out clichés like “in the blink of an eye” or “in the heat of the moment.” l After your teen has revised the draft, make sure he or she proofreads it for spelling, grammar, and punctuation errors. Then www.EduGuide.org ONLINE EDUGUIDE proofread the revised draft yourself by reading it aloud. Take your time; some errors can be tough to spot. Don’t expect a computer’s spelling and grammar check software to catch all the mistakes. It won’t. l
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Have your teen read the draft aloud to you. Can you name the main idea and point of view? Does the first sentence grab your attention? Is there a conclusion and does it summarize the important points? Keep an eye out for unnecessary words. For example, replace “in the modern world of today,” with “today” and shorten “because of the fact that” to “because.” Edit out clichés like “in the blink of an eye” or “in the heat of the moment.” After your teen has revised the draft, make sure he or she proofreads it for spelling, grammar, and punctuation errors. Then proofread the revised draft yourself by reading it aloud. Take your time; some errors can be tough to spot. Don’t expect a computer’s spelling and grammar check software to catch all the mistakes. It won’t.
Sources: essayedge.com/college/essayadvice/course collegeboard.com/student/apply/essayskills The College Application Essay by Sarah Myers McGinty
Saving for College: How Are Three Families Doing It?
Lisamarie Sanders
Experts estimate that the price tag for today’s kindergartener to attend four years of college will be between $50,000 and $300,000. Right now colleges and taxpayers cover some of the cost, but the average family still pays about seventy percent through loans and direct payments. Poor families pay even less. Here’s how three families are saving for college. India Rose from Rapidan, Virginia, is the mother of four children from one to seven years old. She doesn’t think she saves a lot, but she adds to her children’s college funds what she can when she can. “It’s hard because you have to take care of your family’s needs now, but you also have to take care of their future,” she explains. India is also using the UPromise program to add to her children’s accounts. Kevin Karplus of Santa Cruz, California, chose his state’s 529 savings plan for his son. “I wanted to be able to accumulate a reasonable amount of money in a taxadvantaged way with relatively low risk and little need for active management,” he says. He set up an automatic payroll deduction to meet his savings goal. Carl Peters from Allentown, Pennsylvania, picked his state’s 529 prepaid tuition plan for his three children. “We didn’t go to college,” explains Carl, “but we want to make sure our kids have that option.” He adds that the regular monthly payment contract helps him keep on track. What advice do these families have for others? They all agree on one thing: start early. “But even if you’re too late to start early, start anyway,” advises Rose. "Try using your old daycare dollars." Although most of us won’t be able to foot the entire bill, saving now will do three things. It will tell your kids and everyone else that you’re betting on their future. It will also
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give your child more opportunities and cut the number of years that you and your child will be paying back student loans.
The returns on your investment will be worth it. College graduates make an average of a million dollars more during their careers than their peers who have only a high school diploma. Both two and fouryear degrees open doors to good jobs that are closed to kids whose education ended in high school.
Lisamarie Sanders is a Virginia elementary teacher who worked previously with the U.S. Department of Education. She has two children in elementary school.
27 ONLINE EDUGUIDE www.EduGuide.org
collegeboard.com/student/apply/essayskills The College Application Essay by Sarah Myers McGinty
Saving for College: How Are Three Families Doing It?
Lisamarie Sanders
Experts estimate that the price tag for today’s kindergartener to attend four years of college will be between $50,000 and $300,000. Right now colleges and taxpayers cover some of the cost, but the average family still pays about seventy percent through loans and direct payments. Poor families pay even less. Here’s how three families are saving for college. India Rose from Rapidan, Virginia, is the mother of four children from one to seven years old. She doesn’t think she saves a lot, but she adds to her children’s college funds what she can when she can. “It’s hard because you have to take care of your family’s needs now, but you also have to take care of their future,” she explains. India is also using the UPromise program to add to her children’s accounts. Kevin Karplus of Santa Cruz, California, chose his state’s 529 savings plan for his son. “I wanted to be able to accumulate a reasonable amount of money in a taxadvantaged way with relatively low risk and little need for active management,” he says. He set up an automatic payroll deduction to meet his savings goal. Carl Peters from Allentown, Pennsylvania, picked his state’s 529 prepaid tuition plan for his three children. “We didn’t go to college,” explains Carl, “but we want to make sure our kids have that option.” He adds that the regular monthly payment contract helps him keep on track. What advice do these families have for others? They all agree on one thing: start early. “But even if you’re too late to start early, start anyway,” advises Rose. "Try using your old daycare dollars." Although most of us won’t be able to foot the entire bill, saving now will do three things. It will tell your kids and everyone else that you’re betting on their future. It will also
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give your child more opportunities and cut the number of years that you and your child will be paying back student loans.
The returns on your investment will be worth it. College graduates make an average of a million dollars more during their careers than their peers who have only a high school diploma. Both two and fouryear degrees open doors to good jobs that are closed to kids whose education ended in high school.
Lisamarie Sanders is a Virginia elementary teacher who worked previously with the U.S. Department of Education. She has two children in elementary school.
Really Achieving Your Dreams: Take the Right High School Courses
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school.
Really Achieving Your Dreams: Take the Right High School Courses
Christine MacDonald
Cutting down the rising cost of college isn’t as easy as clipping coupons or waiting for an “everything must go” sale. Everyone is worried about financial aid for school. But there are smart ways to save, starting as early as the freshman year of high school. Your parents can worry about financial aid for students later. By taking a tough high school course load, you’ll avoid paying for nocredit remedial college classes later. You’ll also be more likely to end up in Advanced Placement courses in high school that could land you college credit and help you with high school scholarships before you ever move into the dorms. And it can help with really achieving your dreams. I missed that lesson during my high school senior year 11 years ago when I skipped a fourth year of math for what I thought were more interesting creative writing classes. For my choice, I spent my first semester of college in a refresher math class and still feel the sting whenever I get my monthly college loan bill.
High School Counts
Emily Sole shares my pain. The 18yearold from Traverse City, Michigan, handed over more than $600 this fall to Wayne State University for a nocredit remedial math class. She blames her high school sophomore year when she had an Algebra II class full of her best friends. “I goofed off,” she admits. She took Geometry her junior year but passed on math her senior year because she wanted to take more classes that matched her interests, primarily business. Now as a college freshman, studying business administration, she regrets the move. She spends five hours a week in a computer lab going over basics she should have mastered already. “High school counts, and you don’t really think about that all the time,” she said.
Unprepared College Freshmen
Colleges now routinely test all students upon arrival to gauge how prepared they are for college level work. According to a report published by the American Diploma Project and Achieve, Inc. in 2005, 70 percent of college instructors report spending some or a significant amount of time reviewing material that should have been learned in high school. The same professors estimate that half of the incoming freshman class is unprepared for collegelevel math and writing. Why? College freshmen who feel unprepared for college admit that they weren't challenged by their high school program. Taking "bird courses" may seem like a great idea in the tenth grade but if you're planning to attend college, you'll regret that choice, for many reasons, later on. 29
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Why? College freshmen who feel unprepared for college admit that they weren't challenged by their high school program. Taking "bird courses" may seem like a great idea in the tenth grade but if you're planning to attend college, you'll regret that choice, for many reasons, later on.
Smart Goal Setting
Planning ahead to maximize your course schedule in high school does pay off. Jim Levasseur, an 18yearold from Mount Carmel, Illinios, knows that for a fact. His six Advanced Placement classes got him into Bowling Green University this fall as a sophomore with 33 credits. His freshman year would have cost an estimated $21,700 in outofstate tuition and room and board at the school. The savings didn’t really affect Levasseur though. As it turns out, students who take more challenging courses also improve their test scores on college entrance exams by an average of seven percent. So because of his high scores on the PSAT, the National Merit Scholarship Corporation is paying his way through school.
A Big Head Start on Goals to Set
But he said the financial savings isn’t the most important benefit of earning college credit early. Having the work behind him lets him take classes he is more interested in earlier, including more in his major of computer animation. It also gave him a first crack at registering for courses as a sophomore honors student, practically guaranteeing he wouldn’t get shut out of any classes. Most importantly, it calmed his nerves about making the transition to college. “It’s sort of like a big head start,” Levasseur said. “You are confident in your ability to do work at the college level.” His advice to high schoolers today: “Work as hard as you can without running yourself into the ground,” Levasseur said. “You always have to be thinking about where you are headed.”
Christine MacDonald covers education for The Detroit News.
FAFSA Helps Families Access the Four Types of Financial Aid for School
EduGuide Staff
Paying for college can be expensive. But about two of every three students get financial aid for school to help cover the cost. Even more would get financial aid for students if they only filled out the FAFSA student loans form. The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of education financial aid. Unfortunately, about onethird of college students fail to complete it. That means that as many as 1.5 million qualified students threw away a Federal Pell grant worth up to $4,050 a year just because they never got around to submitting a form.
www.EduGuide.org 30 ONLINE EDUGUIDE Why don’t more families do the FAFSA? Some are intimidated by the IRSstyle questions. Thankfully, colleges and universities provide free help completing the FAFSA— just ask. Other families think they make too much money to qualify for needbased aid but don’t
Christine MacDonald covers education for The Detroit News.
FAFSA Helps Families Access the Four Types of Financial Aid for School
EduGuide Staff
Paying for college can be expensive. But about two of every three students get financial aid for school to help cover the cost. Even more would get financial aid for students if they only filled out the FAFSA student loans form. The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of education financial aid. Unfortunately, about onethird of college students fail to complete it. That means that as many as 1.5 million qualified students threw away a Federal Pell grant worth up to $4,050 a year just because they never got around to submitting a form. Why don’t more families do the FAFSA? Some are intimidated by the IRSstyle questions. Thankfully, colleges and universities provide free help completing the FAFSA— just ask. Other families think they make too much money to qualify for needbased aid but don’t realize they need the FAFSA to qualify for almost any student loans, jobs, or scholarships. Still other families put it off because they’re not sure their kids will go to college. For example, they miss the Michigan FAFSA priority date to qualify for some state scholarships and never get around to completing the form to get other aid. Sadly, they don’t realize that everyone should do the FAFSA as soon as possible after January 1 of their senior year, even if they’re not yet sure they want to go to college. The FAFSA is free and puts you in line to qualify for hundreds, even thousands, of dollars. All you need to do is click on FAFSA. Financial aid comes from the federal government, state government, private donors and colleges. It takes four basic forms: 1. Grants. Needbased aid that you don’t have to pay back; two examples include the Federal Pell Grant which pays between $400 and $4,050 per year and the Federal Supplemental Educational Opportunity Grant which pays between $100 and $4,000. 2. Scholarships. Merit aid that you don’t have to pay back; it’s based on your achievements, affiliations, and sometimes your needs too. A range of businesses, civic organizations, places of worshiop, professional associations, foundations and colleges offer scholarships. You can search for them free on Web sites like Fastweb.com and CollegeAnswer.com. 3. Work Study. Jobs supported with federal funds that help students pay for college while doing minimum wage or better work on campus or in the community 4. Student Loans. Money for college that you’ll need to pay back with interest after you leave college; the three federal loan programs include Perkins, Stafford, and PLUS.
Family Ideas: Start Saving for College in Kindergarten
EduGuide Staff
www.EduGuide.org 31 ONLINE EDUGUIDE Your child will not be college age for years. But the earlier you begin a college savings plan, the better. Here are five different,
include Perkins, Stafford, and PLUS.
Family Ideas: Start Saving for College in Kindergarten
EduGuide Staff
Your child will not be college age for years. But the earlier you begin a college savings plan, the better. Here are five different, inexpensive family ideas to start a taxfree college savings account. Don't rely on financial aid loans and hope for high school scholarships!
529 Savings Plans
Pick which state has the best plan for you, but most offer tax and other benefits for using your home state’s plan. In Michigan, EduGuide's home state, for instance, families can begin with as little as $25 in the Michigan Education Savings Program (MESP).
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Pro: Contributions are eligible for state tax deductions. In Michigan, it's a $10,000 tax deduction ($5,000 for single tax filers). Use 529 funds at any accredited postsecondary college in the U.S. and at many schools abroad. Con: The plan’s tax free status is up for renewal by Congress in 2010. Account value may fluctuate depending on investment options.
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529 Prepaid Plans
Pay tuition now; lock in today’s rates. Most states have prepaid plans. Example: With the Florida PrePaid College Plan you can buy your 5yearold two years of tuition at community college (a lump sum of $4, 193) with $37.14 paid every month until she starts college. Cash up front for four years of tuition and mandatory fees at a public university is $12, 494.40. Four years of room and board adds another $18, 890 and the tuition differential fee adds $4,265.04.
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Pro: Guarantees against rising tuition costs. Monthly payment contract will motivate you to save. Can be used to pay for tuition outofstate and private colleges. Some states offer tax benefits associated with these plans. Con: State residency requirements. Some plans have restrictions on transfers to another child. The money is tied up until the child starts college.
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Education Savings Account
Open an account with any bank, broker or mutual fund, like retirement savings.
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Pro: Can be used for college or any educational expenses K12 – including books, private school tuition, computers, tutors. Lets you pick your own investments. Con: Limited to $2,000/year per child. Tax benefits phase out for some families making more than $95,000. May tempt you to spend before child’s college years.
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Cash Back
Buy selected goods with a registered credit card and get 1 to 10% cash back for college savings account. Upromise, EdExpress.com, Babymint.com and MBNA Fidelity credit cards offer such programs. Pro: Save while you spend: Average annual savings range from $50 to $500. Registered friends can direct their earnings to your account. www.EduGuide.org ONLINE EDUGUIDE
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Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into
Buy selected goods with a registered credit card and get 1 to 10% cash back for college savings account. Upromise, EdExpress.com, Babymint.com and MBNA Fidelity credit cards offer such programs.
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Pro: Save while you spend: Average annual savings range from $50 to $500. Registered friends can direct their earnings to your account. Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into your child’s account.
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Roth and Traditional IRAS
Tax laws now let you take money from these retirement accounts to pay for college without penalty. You can open IRA accounts at any bank or investment agency.
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Pro: Some experts recommend saving for retirement or a home before saving for college; this allows you to save for both and choose how to spend it later. Lets you pick your own investments. Con: Limited to $5,000/year per person if you're 49 or younger in 2008. Some restrictions apply. May confuse your retirement planning; your retirement fund may not attract contributions from Grandpa.
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Three Family Ideas for College Savings
EduGuide Staff
Three Family Ideas for College Savings:
1. 2. 3. Start early. When your child is 5, start saving $100/month for 13 years. With 8% annual return, that’s $27,000. Waiting until the child is 12 requires investing $240/month over 7 years to get the same amount. Invest often. Commit now to set aside $5, $50 or $250/month. Or have it withdrawn from your paycheck. Send refunds, rebates, loose change to the fund. Ask relatives to contribute to the college fund instead of buying toys. Don’t wait. Earmarking even $25 makes a difference. Telling your kids will inspire them. Ask them to help and drop a dime in their college jar for every dollar they get. It will teach them to work towards a goal.
Will Saving Now Cut My Child’s Financial Aid Later?
A little for some student loans for college, but you’re still better off having money than not, just as you’re better off earning wages than not, despite income taxes. Using today’s aid formulas, a low or mediumincome family could lose up to $5 in aid for every $100 extra they saved in any of these tools. But higherincome families probably won’t qualify for needbased aid anyway.
Top Ten Questions to Ask College Student Financial Aid Advisors
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Christine MacDonald
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www.EduGuide.org
planning; your retirement fund may not attract contributions from Grandpa.
Three Family Ideas for College Savings
EduGuide Staff
Three Family Ideas for College Savings:
1. 2. 3. Start early. When your child is 5, start saving $100/month for 13 years. With 8% annual return, that’s $27,000. Waiting until the child is 12 requires investing $240/month over 7 years to get the same amount. Invest often. Commit now to set aside $5, $50 or $250/month. Or have it withdrawn from your paycheck. Send refunds, rebates, loose change to the fund. Ask relatives to contribute to the college fund instead of buying toys. Don’t wait. Earmarking even $25 makes a difference. Telling your kids will inspire them. Ask them to help and drop a dime in their college jar for every dollar they get. It will teach them to work towards a goal.
Will Saving Now Cut My Child’s Financial Aid Later?
A little for some student loans for college, but you’re still better off having money than not, just as you’re better off earning wages than not, despite income taxes. Using today’s aid formulas, a low or mediumincome family could lose up to $5 in aid for every $100 extra they saved in any of these tools. But higherincome families probably won’t qualify for needbased aid anyway.
Top Ten Questions to Ask College Student Financial Aid Advisors
Christine MacDonald
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What is the total annual cost of attendance? Are there any extra costs that I might need to plan for? What is the average student debt of the school’s graduates? What careerrelated or high school scholarships might I be eligible for? What sources do you know of for reducedcost sponsored financial aid loans? What financial aid floans that I’m eligible for have the lowest interest rates and fees? When would I start paying back the financial aid loans and how flexible is the repayment plan? Will the school reduce my grant aid or loans because of private scholarships? What would cause me to lose my financial aid for school? What kind of loan forgiveness programs are available depending on the degree I graduate with? Would the student loans for college I’m considering be eligible for loan forgiveness? Based on borrowing this much, what will I owe at the time I graduate? What will my monthly payments look like?
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they saved in any of these tools. But higherincome families probably won’t qualify for needbased aid anyway.
Top Ten Questions to Ask College Student Financial Aid Advisors
Christine MacDonald
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What is the total annual cost of attendance? Are there any extra costs that I might need to plan for? What is the average student debt of the school’s graduates? What careerrelated or high school scholarships might I be eligible for? What sources do you know of for reducedcost sponsored financial aid loans? What financial aid floans that I’m eligible for have the lowest interest rates and fees? When would I start paying back the financial aid loans and how flexible is the repayment plan? Will the school reduce my grant aid or loans because of private scholarships? What would cause me to lose my financial aid for school? What kind of loan forgiveness programs are available depending on the degree I graduate with? Would the student loans for college I’m considering be eligible for loan forgiveness? Based on borrowing this much, what will I owe at the time I graduate? What will my monthly payments look like?
Write a National History Day Essay for High School Scholarships or Cash Prizes!
EduGuide Staff
Calling all students! Calling all students! How would you like the chance to win a fullride scholarship for college, or any of 20 other prizes? Enter the National History day contest, and you're eligible for their high school scholarships! National History Day is a challenging and rewarding program for American students. For more than twentyfive years the program has promoted the learning of history in the high school and middle school classroom with a combination of creativity and scholarship. "The National History Day contest is the best kept secret in history education," said Mark Robinson, development and public relations coordinator for the event. NHD is a yearlong education program that engages students in grades 612 in the discovery and interpretation of historical topics. Students produce dramatic performances, exhibits, documentaries and research papers. The projects are then evaluated at local, state, and national competitions.
How Do I Get Involved?
To get involved with NHD, students choose a history topic related to NHD's annual theme. They conduct, research, and create a presentation to enter in competition. If NHD is not already in their school, students should ask teachers and administrators for help in joining the competition.
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Is NHD Only a Contest?
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Based on borrowing this much, what will I owe at the time I graduate? What will my monthly payments look like?
Write a National History Day Essay for High School Scholarships or Cash Prizes!
EduGuide Staff
Calling all students! Calling all students! How would you like the chance to win a fullride scholarship for college, or any of 20 other prizes? Enter the National History day contest, and you're eligible for their high school scholarships! National History Day is a challenging and rewarding program for American students. For more than twentyfive years the program has promoted the learning of history in the high school and middle school classroom with a combination of creativity and scholarship. "The National History Day contest is the best kept secret in history education," said Mark Robinson, development and public relations coordinator for the event. NHD is a yearlong education program that engages students in grades 612 in the discovery and interpretation of historical topics. Students produce dramatic performances, exhibits, documentaries and research papers. The projects are then evaluated at local, state, and national competitions.
How Do I Get Involved?
To get involved with NHD, students choose a history topic related to NHD's annual theme. They conduct, research, and create a presentation to enter in competition. If NHD is not already in their school, students should ask teachers and administrators for help in joining the competition.
Is NHD Only a Contest?
No. Because history is happening every day, the NHD program provides teachers with tools and curricula to encourage student enthusiasm for history. Students can enter the contest by submitting work they have done while studying history at any timeeven outside of school. "Preparing for History Day is like putting together a huge jigsaw puzzle," said Leslie Odelber, a parent in Korbel, California. "Each piece of information uncovered brings a clearer understanding of the whole."
Is NHD Just for Kids?
One of the best things about the NHD program is that it involves the whole family! In exploring their own culture and community, students learn more about their family. One student did a project on her family's tomato industry and its history. Another researched his grandfather's role on the railroad. "We are very thankful for the quest for discovery that NHD has instilled in our children, as well as ourselves. The thrill of learning is indeed contagious," said Angela and John Butvich, parents in Corona, California. "The NHD contest is not about winning a prize; the real reward is learning." For more information and competition dates, see the National History Day Web site, or call 3013149739.
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real reward is learning." For more information and competition dates, see the National History Day Web site, or call 3013149739.
Saving for College: Three Rules
Thinking about saving for college? These three rules will help you focus on what counts. 1. Start early. The earlier you start, the more your small seed will grow. Start saving one hundred dollars a month when your child is in fifth grade for nine years with an eight percent annual return, and you’ve got almost $15,750—about half of which is from return on your investment. Invest often. Big projects are done best piece by piece. Commit now to set aside five dollars, fifty dollars, or two hundred fifty dollars a month. Better yet, have that amount taken out of your paycheck. Send refunds, rebates, and loose change straight to the college fund. Once you’ve started, you’ll be surprised how fast your savings can grow when you let others know that instead of buying your child a toy that will soon be broken, gifts can be made directly to the college fund. Don’t wait. Yes, you should consider saving for retirement or a home a higher priority. But even if all you can set aside right now is twentyfive dollars, pick up the phone or hop online and do it today. Telling your kids that they’ve got money set aside for college will give them something to pin their dreams to. Asking them to contribute something to the pot will double their commitment to realizing that dream while teaching them to save. Ask them to drop a dime in their college jar for every dollar they get. No matter how little it adds up to, it will teach them to work toward a goal.
2.
3.
Will saving now cut my child’s financial aid later? A little for some people, but you’re still better off having money than not—just like you’re better off earning wages than not despite income taxes. Using today’s aid formulas, a low or middleincome family could lose up to five dollars in aid for every one hundred dollars extra that they save in many financialaid tools. But higher income families should save all they can because they probably won’t qualify for needbased aid anyway.
Saving for College: It's Never Too Late to Reduce Need for Financial Aid Loans
Chastity Pratt
It’s never too late to start saving for college, even if your child is already in middle school. Whatever can be squirreled away today will offset rising college costs and financial aid loans tomorrow. Even parents who don’t have much money to spare can start a fund. Many states allow you to buy a few semesters or even a few years’ worth of college tuition at today’s lockedin rates under plans, such as with the Michigan Education Trust. Or you can open an account, such as the Michigan Education Savings Program, for as little as $25 to cover tuition and other expenses. If you’re starting late, the key is to keep saving, even if you can’t save enough to cover all college costs by the time your child graduates. At the very least, every penny saved now will reduce loan payments down the line and lessen the amount of financial aid for school that is needed.
37 ONLINE EDUGUIDE Savings Help Reduce Need for Financial Aid Loans www.EduGuide.org
save all they can because they probably won’t qualify for needbased aid anyway.
Saving for College: It's Never Too Late to Reduce Need for Financial Aid Loans
Chastity Pratt
It’s never too late to start saving for college, even if your child is already in middle school. Whatever can be squirreled away today will offset rising college costs and financial aid loans tomorrow. Even parents who don’t have much money to spare can start a fund. Many states allow you to buy a few semesters or even a few years’ worth of college tuition at today’s lockedin rates under plans, such as with the Michigan Education Trust. Or you can open an account, such as the Michigan Education Savings Program, for as little as $25 to cover tuition and other expenses. If you’re starting late, the key is to keep saving, even if you can’t save enough to cover all college costs by the time your child graduates. At the very least, every penny saved now will reduce loan payments down the line and lessen the amount of financial aid for school that is needed.
Savings Help Reduce Need for Financial Aid Loans
Terry Gallagher of Ann Arbor said he knows he will not have enough in his two children’s MESP accounts to cover all of their college costs. His daughter, Mary, is in sixth grade and his son just entered high school. Mary’s college account was opened shortly after her birth. By the time she graduates, it will be at about $20,000. The family income is already stretched because his wife just went back to college. “It’s not enough. [But] it’s not the only option,” Gallagher said. “The MESP is just to give us a little more cushion.” Gallagher said the college fund money is drawn directly from his bank account every month. He likes it because it makes the payments invisible and painless. Another advantage is that other family members have been able to contribute to the fund. The children can also drop a few dollars into their accounts.
Financial Aid for Students is Common
There are always options to offset small savings. More than two in three students receive financial aid in college. Loans are a typical route for middle income families. “A financial planner reminded us that you can always borrow for college,” Gallagher said. “People are not afraid to borrow money for a car. College is something you only pay for once, usually.” As children get older, some costs such as day care disappear; that money can be put into a college plan, Gallagher suggested. “The more you can save, however you do it, the better,” he said.
Chastity Pratt has two young children and covers education for the Detroit Free Press.
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Chastity Pratt has two young children and covers education for the Detroit Free Press.
Getting By in College: Budgets and Avoidance Spending
EduGuide Staff
Here's what research says about your college budget.
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Know the conditions of your financial aid. Financial aid counselors see it all the time: a student loses financial aid and has no idea why. Know that your parents are not receiving any information about your college life once you are eighteen. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether in the form of loans, scholarships, or grants — comes with strings attached. You have to show adequate progress toward your degree. You should maintain at least a 2.0 GPA overall — not just in your major — and you must finish at least seventy percent of the classes you take. (Check for specific guidelines at your college; some schools require more than these minimums.) In other words, go to class. Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike, or walk. Between payments, insurance, and gas prices, a car will drain your bank account and create pressure you don’t need. If possible, work no more than fifteen to twenty hours a week. About seventy five percent of fulltime students work at least some of the time. But research shows that working more than twenty hours a week impedes your academic progress. Working too much can force you to drop or fail classes, which just costs you more money when you have to take them again. You also should try to find a job on or near campus so that you don't spend a lot of time getting back and forth. Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university, or point you toward federal work /study programs. They will help you remember that, for the most part, you have to apply for financial aid every year. Sometimes they can even find scholarships that have extra funds available. Aim for a full load of classes. Parttime students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on fulltime enrollment. Embrace poverty. Being poor is part of the drill for most students. Acquire a taste for macaroni and cheese, make fun of your old clothes, and consider penny pinching part of the complete college experience. If you must withdraw from classes, do so the right way. Sometimes life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missinginaction approach and simply stop attending classes. Not withdrawing formally can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Learn to budget. Loan or grant funds arrive early in the school year. Be sure to use the money carefully throughout the term. Understand what the loan or grant covers and what it does not cover. Keep the amount you borrow as low as possible; graduating with a fifty thousand dollar debt will affect your life choices for years. Avoid credit cards. Talk about a money pit. Just because you can get a credit card doesn't mean that should get one. It’s better to learn to live without shopping jaunts and midnight pizzas than to find yourself in debt. If you do get a credit card for emergency expenses and to establish credit find one with a very low credit limit and pay off the balance promptly every month.
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emergency expenses and to establish credit find one with a very low credit limit and pay off the balance promptly every month.
Getting By in College: What Students Say
EduGuide Staff
What students say about keeping a budget in college: My one bit of advice here is do not overwork yourself. Less than 10 to 15 hours a week is ideal in a college situation. Or, try to find a job where you can do homework on the job. Also, because of coops (cooperative education) being rather abundant, it won’t be long until a real job is offered — so quitting the crappier job isn’t that bad of an idea. — Christopher Those credit cards are a tricky thing. I had a plan, though. I only kept one credit card at a time. And since my credit was good, I’d get offers in the mail all the time for 0 percent interest for a year. Well, I’d rack up the card and then I’d pay it off before the year and then, sometimes, I’d apply for another card with the same offer. It worked well in college, but my mom told me I shouldn’t do that forever because it makes your credit look shady. So, now I’ll just manage my money better — since I have some. — Chris I worked on the weekends at my father’s business because I had to. Only work if you have to. If you don’t, spend your time getting involved with on campus organizations and/or extracurricular activities. The more you do, the more you have to put on your graduate school application or résumé. — Shawn I had about nine loans. If I had to do it over again, I would’ve made some payments on them while I was still in school. They do make that available to you. They’ll give you a payment book and you can pay $25 a month, $100, whatever you can pay. I did get a book, but I never got around to paying any money. I was too busy goofing off and being in my early 20s. I thought, ‘I’ll do it later,’ and now it’s later. Now I’m stuck with a $19,000 bill that I’ll be paying on until I’m 33. — Renee Credit cards? Don’t bother. They will lead to your doom. I never had one, but I watched my roommate run up five grand pretty quickly. —Adam In grad school, I worked three jobs: one at a bar, an office job, and TA (teaching assistant) for statistics. I’d say the working definitely took away from the learning. But I’m not in debt at all. It’s the tradeoff. I got three As and a B (from the prof that hated me) this semester, but I landed a sweet job in Houston. The (campus) jobs made me able to interact with a lot of different people, which I think will help me in life more than reading a journal article will. — Andrea During my first year at school, I continued my high school job, which was working at a theater…. At first, I was allowed to do homework while sitting in the booth starting movies. However, the job required me to work nights until 2 or 3 in the morning many times, and my boss didn’t enjoy me bringing homework to the job. So very quickly after that, I quit. — Christopher 40 ONLINE EDUGUIDE
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Ugh – working is not fun, but because I am a wife and a mom, I have to put in my share. I used to work fulltime, go to school fulltime
During my first year at school, I continued my high school job, which was working at a theater…. At first, I was allowed to do homework while sitting in the booth starting movies. However, the job required me to work nights until 2 or 3 in the morning many times, and my boss didn’t enjoy me bringing homework to the job. So very quickly after that, I quit. — Christopher Ugh – working is not fun, but because I am a wife and a mom, I have to put in my share. I used to work fulltime, go to school fulltime and be a mom, and that wasn’t working out for me. My grades fell behind and my workload was getting to be too much. I was exhausted when I would get home. Only do what your body can handle, or everything around you will suffer. When I am in school, I work parttime; and then when I am not, I go back fulltime. Being a waitress has allowed me to have that kind of a schedule. I work a lot of nights, so I am home with my baby during the day. I do my homework when he naps and when my husband gets home, that is his time with our son. — Nicole
FAFSA Student Loans Can Max Your College Cash
Michigan Guaranty Agency
Paying for college can be expensive. But about 2in3 students who apply get college student financial aid to help pay for it. Even more would get student loans for college if they only filled out the FAFSA form. What is FAFSA? The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of aid. Unfortunately, about half of college students fail to complete it. That means that as many as 850,000 qualified students throw away several thousand dollars’ worth of free money a year just because they never got around to submitting a form.
Why don’t more families make sure to fill out the FAFSA?
Some are put off by the kind of questions the FAFSA asks. Other people assume they make too much money to qualify for needbased financial aid for school. But they don’t realize that they still need the FAFSA to qualify for almost any FAFSA student loans, jobs or scholarships. The good news? Colleges and universities help you complete the FAFSA student aid form for free. All you have to do is ask. Finally, plenty of students and their families delay applying for college student financial aid because they aren’t sure they’ll even go to college. But this has a price: while they’re trying to decide, they miss their best shot at qualifying for state scholarships. When students apply late, they can miss out on funds they would have received had they applied on time. So the main message here is that every student should fill out the FAFSA as soon as possible after January 1 of their senior year, no matter what their plans are. It’s free and it puts you in line to get hundreds, even thousands of dollars. All you need to do is visit the FAFSA website.
Financial aid comes in four flavors
Financial aid comes from the federal government, state government, private donors, and colleges and universities. It takes four basic forms: 1.
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Grants. This is needbased aid that you don’t have to pay back. Two examples include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant; both pay from several hundred to several thousand dollars.
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— Nicole
FAFSA Student Loans Can Max Your College Cash
Michigan Guaranty Agency
Paying for college can be expensive. But about 2in3 students who apply get college student financial aid to help pay for it. Even more would get student loans for college if they only filled out the FAFSA form. What is FAFSA? The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of aid. Unfortunately, about half of college students fail to complete it. That means that as many as 850,000 qualified students throw away several thousand dollars’ worth of free money a year just because they never got around to submitting a form.
Why don’t more families make sure to fill out the FAFSA?
Some are put off by the kind of questions the FAFSA asks. Other people assume they make too much money to qualify for needbased financial aid for school. But they don’t realize that they still need the FAFSA to qualify for almost any FAFSA student loans, jobs or scholarships. The good news? Colleges and universities help you complete the FAFSA student aid form for free. All you have to do is ask. Finally, plenty of students and their families delay applying for college student financial aid because they aren’t sure they’ll even go to college. But this has a price: while they’re trying to decide, they miss their best shot at qualifying for state scholarships. When students apply late, they can miss out on funds they would have received had they applied on time. So the main message here is that every student should fill out the FAFSA as soon as possible after January 1 of their senior year, no matter what their plans are. It’s free and it puts you in line to get hundreds, even thousands of dollars. All you need to do is visit the FAFSA website.
Financial aid comes in four flavors
Financial aid comes from the federal government, state government, private donors, and colleges and universities. It takes four basic forms: 1. Grants. This is needbased aid that you don’t have to pay back. Two examples include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant; both pay from several hundred to several thousand dollars. 2. Scholarships. This is meritbased aid that you don’t have to pay back. It’s based on your achievements, affiliations and sometimes your financial needs, too. A range of businesses, civic organizations, churches and synagogues, professional associations, foundations and colleges offer scholarships. You can search for them free on sites like www.collegeboard.com and www.ThomsonPeterson.com.
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3. WorkStudy. This is an arrangement that allows students to help pay for college while doing minimum wage or better work on www.EduGuide.org ONLINE EDUGUIDE campus or in the community.
3. WorkStudy. This is an arrangement that allows students to help pay for college while doing minimum wage or better work on campus or in the community. 4. Student Loans. This is money for college that you’ll need to pay back with interest after you leave college. The three federal loan programs include Perkins, Stafford and PLUS.
This article is provided by the Michigan Guaranty Agency.
Advice for Teenagers: Be Prepared for Extra College Expenses
Susan J. Demas
Congratulations! You're off to college with your grants, financial aid loans, and scholarships to boot. You have a dorm room, board plan, and calling plan. Think you've got it all covered? Think again.
Financial Advice for Students
Liz Luckinbill, 26, knew she’d need a computer. But the Oakland Community College student didn’t know she’d be shelling out $1,200 for a laptop plus another $80 for the battery. “It really adds up,” said Luckinbill, who’s set to finish up her degree in cosmetology management in April at the Bloomfield Hills, Michigan school. For Caleb Miner, a 21yearold senior at Michigan State University, traveling back to New York City to visit friends and family really adds up. After he’s done paying outofstate tuition, it can be hard to scrounge up any extra cash. “I usually spend half my summers at home and half working here,” said Miner, a human biology major at the Big Ten school. And Julia Oswald, 21, couldn’t believe her bill for books, pens, and a calculator—even though she’s an accounting major at Northwood University in Midland, Michigan.
Have a Plan to Go with Student Loans for College
Yes, the freshman year of college often provides a rude financial awakening. But Oswald has some sound advice for students and parents: “The more personal planning, the better. Have a plan.” That means taking a sweeping look at all your expenses. (EduGuide’s “College Costs Checklist” can help.) Sometimes it’s the necessities that add up, especially if you’re living offcampus—such as heat, water, sewer, laundry, and food. Utilities keep records on how much a tenant paid last year. Request that so you can plan your budget. Especially with rising energy costs, turn the thermostat down and don a sweater to save some green. Bargain shop and avoid eating out all the time. If you’re living on your own, there are a whole host of expenses, from dishes to couches to the ubiquitous trademark of college, the lava lamp. When you’re on a fixed budget, try to skip the frills and shop resale and discount stores.
Financial Aid for Students Might Help with Living Expenses
www.EduGuide.org 43 ONLINE EDUGUIDE Oswald works at Northwood’s financial aid office, and she says it’s usually the offcampus students who struggle the most. Her advice is to be as detail oriented as possible and budget “everything ahead of time.” Check to see if your loans will cover living
This article is provided by the Michigan Guaranty Agency.
Advice for Teenagers: Be Prepared for Extra College Expenses
Susan J. Demas
Congratulations! You're off to college with your grants, financial aid loans, and scholarships to boot. You have a dorm room, board plan, and calling plan. Think you've got it all covered? Think again.
Financial Advice for Students
Liz Luckinbill, 26, knew she’d need a computer. But the Oakland Community College student didn’t know she’d be shelling out $1,200 for a laptop plus another $80 for the battery. “It really adds up,” said Luckinbill, who’s set to finish up her degree in cosmetology management in April at the Bloomfield Hills, Michigan school. For Caleb Miner, a 21yearold senior at Michigan State University, traveling back to New York City to visit friends and family really adds up. After he’s done paying outofstate tuition, it can be hard to scrounge up any extra cash. “I usually spend half my summers at home and half working here,” said Miner, a human biology major at the Big Ten school. And Julia Oswald, 21, couldn’t believe her bill for books, pens, and a calculator—even though she’s an accounting major at Northwood University in Midland, Michigan.
Have a Plan to Go with Student Loans for College
Yes, the freshman year of college often provides a rude financial awakening. But Oswald has some sound advice for students and parents: “The more personal planning, the better. Have a plan.” That means taking a sweeping look at all your expenses. (EduGuide’s “College Costs Checklist” can help.) Sometimes it’s the necessities that add up, especially if you’re living offcampus—such as heat, water, sewer, laundry, and food. Utilities keep records on how much a tenant paid last year. Request that so you can plan your budget. Especially with rising energy costs, turn the thermostat down and don a sweater to save some green. Bargain shop and avoid eating out all the time. If you’re living on your own, there are a whole host of expenses, from dishes to couches to the ubiquitous trademark of college, the lava lamp. When you’re on a fixed budget, try to skip the frills and shop resale and discount stores.
Financial Aid for Students Might Help with Living Expenses
Oswald works at Northwood’s financial aid office, and she says it’s usually the offcampus students who struggle the most. Her advice is to be as detail oriented as possible and budget “everything ahead of time.” Check to see if your loans will cover living expenses. Schoolrelated expenses can take their toll. Lab, computer, and student activity fees often get tacked on to your tab, so don’t just budget for tuition. As for books, shop around at different stores and buy used. And the Internet can cut your bill in half. Parking tickets are a college rite of passage—but they don’t have to be. Commuting and working students often have to drive to school, so remember to bring plenty of change or find parking garages. “I was so happy when I finally figured out where the garages were,” said Luckinbill. “I saved money and it saved me from running out all the time on breaks.” Another tip: Walk or ride your bike whenever you can to keep more money in your bank account. Your journey through college can be filled with pitfalls of unexpected expenses. But with some careful advance planning and a few words of wisdom from students who have been there before, you won’t get sidetracked. www.EduGuide.org 44 ONLINE EDUGUIDE
were,” said Luckinbill. “I saved money and it saved me from running out all the time on breaks.” Another tip: Walk or ride your bike whenever you can to keep more money in your bank account. Your journey through college can be filled with pitfalls of unexpected expenses. But with some careful advance planning and a few words of wisdom from students who have been there before, you won’t get sidetracked.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Money Management 101: Smart Goal Setting
Kathleen Hicks
Getting through college requires smart goal setting and money management. You may not be a finance major, but all college students need to learn to be in charge of their own budget. Money management was not my primary focus in high school, but as graduation approached and I became more excited at the prospect of being on my own, my parents brought me back to reality. They informed me that I would pay for many of my own expenses. They would take care of the big stuff (tuition, room and board, airline tickets home from school) but I would have to pay for everything else. Books, clothes, music, movies, pizza for study breaks and even the groceries I’d need at school, would all have to come out of my pocket. Budgeting my own money would soon become very real. The challenge for me was learning how to handle money so I’d have everything I need and still be able to see a movie once in a while. The trick was identifying the traps that keep you from saving that money. I’ve come up with lists of the biggest money wasters at school and the ways I keep my savings account from dwindling. I’ve also broken down my spending in a typical month so you can see how I manage to get by on a limited budget.
Goals To Set When Maintaining a Limited Budget
Big Money Wasters Alcohol – A lot of students leave for college excited at the prospect of no parents and neverending parties. Alcohol is really expensive, however, and if you’re not careful, you’ll blow through your money in a matter of months. Even just hitting the bars and going to parties on Wednesday, Friday, and Saturday night can cost more than $30 a week. In a 9month school year that could add up to more than $1000! Food – OK, college dining halls aren’t exactly known for dishing out fine cuisine. And on Saturday night, a slice of pizza might sound really good. That’s fine every so often. Limit these late night food runs to once a week; while $2 for a slice of pizza seems cheap, it can take away from money needed for the essentials. Online shopping – This can hurt, especially for girls. It’s OK to surf the web for shoes while on a study break. Buying one or two pairs of $95 shoes that you “can’t live without,” however, adds up fast. If you have to shop, be careful not to go overboard. Be realistic about what you’ll wear and only buy that. Coffee – It makes many a late night study session possible, but it can kill your savings. Many students don’t see it as a huge expense, and in moderation, it can work. A $4 cappuccino once in a while is fine as a treat or to boost yourself during exam week; buying one four days a week, however, will cost a latte (groan). Spending $12$15 a week on coffee means around $60 a month, or almost $240 a semester. Credit Cards – These are so dangerous. It’s easy for a college student to get one, and even easier to use. Unless you pay the entire www.EduGuide.org 45 ONLINE EDUGUIDE balance each month, however, you’ll have to deal with hefty interest rates. Stick to a debit card; it’s easier to track how much you’re
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Money Management 101: Smart Goal Setting
Kathleen Hicks
Getting through college requires smart goal setting and money management. You may not be a finance major, but all college students need to learn to be in charge of their own budget. Money management was not my primary focus in high school, but as graduation approached and I became more excited at the prospect of being on my own, my parents brought me back to reality. They informed me that I would pay for many of my own expenses. They would take care of the big stuff (tuition, room and board, airline tickets home from school) but I would have to pay for everything else. Books, clothes, music, movies, pizza for study breaks and even the groceries I’d need at school, would all have to come out of my pocket. Budgeting my own money would soon become very real. The challenge for me was learning how to handle money so I’d have everything I need and still be able to see a movie once in a while. The trick was identifying the traps that keep you from saving that money. I’ve come up with lists of the biggest money wasters at school and the ways I keep my savings account from dwindling. I’ve also broken down my spending in a typical month so you can see how I manage to get by on a limited budget.
Goals To Set When Maintaining a Limited Budget
Big Money Wasters Alcohol – A lot of students leave for college excited at the prospect of no parents and neverending parties. Alcohol is really expensive, however, and if you’re not careful, you’ll blow through your money in a matter of months. Even just hitting the bars and going to parties on Wednesday, Friday, and Saturday night can cost more than $30 a week. In a 9month school year that could add up to more than $1000! Food – OK, college dining halls aren’t exactly known for dishing out fine cuisine. And on Saturday night, a slice of pizza might sound really good. That’s fine every so often. Limit these late night food runs to once a week; while $2 for a slice of pizza seems cheap, it can take away from money needed for the essentials. Online shopping – This can hurt, especially for girls. It’s OK to surf the web for shoes while on a study break. Buying one or two pairs of $95 shoes that you “can’t live without,” however, adds up fast. If you have to shop, be careful not to go overboard. Be realistic about what you’ll wear and only buy that. Coffee – It makes many a late night study session possible, but it can kill your savings. Many students don’t see it as a huge expense, and in moderation, it can work. A $4 cappuccino once in a while is fine as a treat or to boost yourself during exam week; buying one four days a week, however, will cost a latte (groan). Spending $12$15 a week on coffee means around $60 a month, or almost $240 a semester. Credit Cards – These are so dangerous. It’s easy for a college student to get one, and even easier to use. Unless you pay the entire balance each month, however, you’ll have to deal with hefty interest rates. Stick to a debit card; it’s easier to track how much you’re spending, and since the money comes out of your account right away, it’ll remind you to hold off on expensive purchases. Keeping Your Savings Account Affloat Spend only when necessary – Many high school graduates receive gifts of money from friends and family. Instead of spending it throughout the summer on movies or lunch dates, set it aside for the end of the summer. When it comes time to buy books, clothes, and school supplies, you’ll be glad you saved.
www.EduGuide.org 46 ONLINE EDUGUIDE Get a job – If your parents aren’t regularly sending you money, then a job is the way to go. College campuses have tons of job opportunities specifically for students. I worked in a coffee shop the summer before I left for school, so the day I arrived there, I
Keeping Your Savings Account Affloat Spend only when necessary – Many high school graduates receive gifts of money from friends and family. Instead of spending it throughout the summer on movies or lunch dates, set it aside for the end of the summer. When it comes time to buy books, clothes, and school supplies, you’ll be glad you saved. Get a job – If your parents aren’t regularly sending you money, then a job is the way to go. College campuses have tons of job opportunities specifically for students. I worked in a coffee shop the summer before I left for school, so the day I arrived there, I contacted the schoolowned café in town and got a job there. Check the school’s employment section on the website; it will often list jobs for students, and may let you apply online. Keep track of where your money goes – It’s easy to forget how much you’ve spent, and I’ve had the icky experience of being surprised by my bank statement. Use online banking, so you can manage your money without having to go to a bank and can check transcripts of all your purchases. Watch out for overdraft fees, too—they’re an unnecessary and preventable waste of money. Use cash –On Friday afternoon, go to an ATM and withdraw about $30, depending upon any plans you may have for the weekend. Spend wisely, and when you’re out of cash, spend the rest of the weekend studying. When you actually have to hand money to a cashier, you’re more likely to make worthwhile purchases. Set a spending limit – For my first semester, I decided not to let my savings account dip below $1000. I started the semester with $1,900 and ended it with about $1100. Money Spent in a Typical Month Everybody has different needs and expenses, but this is how I spend in a typical month.
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Groceries: $90 (for snacks like microwave popcorn, crackers, yogurt, apples, string cheese, a couple of frozen dinners, bottled water and a few household items.) School supplies: $15 (folders rip, pens disappear, you run out of staples...) Gifts: $30 (friends and family love tshirts and mugs from your school) Fun stuff: $40 (for a movie, dinner out or gas money for an outoftown roadtrip) Transportation: $50 (for cab fare to the airport if you go to school far from home. like me. Other expenses might include bike maintenance, carpooling, parking fees, train tickets etc.)
Grand Total: $175 a month *This doesn’t include emergency money, and students with cars will have to factor in the cost of gas and maintenance. Also, special occasions, like Christmas shopping, will require some thinking ahead. I figure clothes and books are really oncepersemester things, so I don’t count them as typical spending. No matter how you cut it, college is expensive. But it’s a great time to learn how to live frugally and responsibly. For a successful college experience, every college student needs to know the basics of money management.
Kathleen Hicks is a freshman, studying English and French (not finance) at Colgate University in Hamilton, NY.
How I Paid for College: Thinking Outside the Box
Susan J. Demas
Sometimes it all comes down to answering the right question.
www.EduGuide.org 47 ONLINE EDUGUIDE Thirty years ago, Rich Schalter was struggling to make ends meet while finishing his accounting degree at Michigan Technological University. He sat down with the financial aid officer, who asked him how much he needed to get by that semester.
Kathleen Hicks is a freshman, studying English and French (not finance) at Colgate University in Hamilton, NY.
How I Paid for College: Thinking Outside the Box
Susan J. Demas
Sometimes it all comes down to answering the right question. Thirty years ago, Rich Schalter was struggling to make ends meet while finishing his accounting degree at Michigan Technological University. He sat down with the financial aid officer, who asked him how much he needed to get by that semester. “I don’t know. A couple hundred dollars,” Schalter mumbled. “I don’t think you understood me. So I’ll ask you one more time how much you need,” the officer told him. A light went on for Schalter. He said he needed $1,500. “We have $946.28,” the officer informed him. That taught Schalter the value of listening – something that not only helped him pay for his last year of college, but has proved invaluable in his role as president of Spartan Chassis, a multimilliondollar corporation in Charlotte, Mich. “I would have missed out on a lot of money,” Schalter said with a laugh. Another lesson Schalter learned: It’s all about the personal touch. Even though the Internet now offers a wealth of resources for students, he firmly believes there’s no substitute for facetoface interaction. From his time as a freshman, Schalter hung around the financial aid office. He wanted to be the first person officials thought of if a new scholarship was founded or a student left midsemester, freeing up additional aid. Persistence paid off. And he gained the added bonus of developing longterm relationships with university staff, which even helped him land his first accounting job. That’s something Kurt Reed can relate to. As a Central Michigan University transfer student, Reed faced an alltoocommon problem. “My mother made just enough money that my financial aid package was terrible,” he said with a smile. After tangling with a financial aid officer (whom he nicknamed “The Gatekeeper”), Reed saw an opening – literally. The director’s door was open and he walked right in. “I am a firm believer that you go to the top,” said Reed, a 1992 graduate of the School of Broadcast & Cinematic Arts. “I managed to get him to laugh and he agreed to meet with me.” The meeting changed his life. Not only did Reed get his own financial aid situation straightened out, but he found a “mission.” The director showed him the ropes and soon Reed was helping other students with their own college funding crises. Today, Reed works as assistant director of Michigan State University’s GEAR UP program aimed at helping lowincome students. His college days also taught him another important maxim: Creativity counts. Loans and grants only went so far, so Reed became a dormroom entrepreneur. His first venture was as a hairstylist for students of color, since Mount Pleasant, Mich., did not have any ethnic salons at the time. “I saw an opportunity,” Reed said. He also started a DJ operation for campus parties and sold sweatsuits and shoes wholesale, often flying to California and New York to find the latest styles. It was “very lucrative,” Reed said. www.EduGuide.org 48 ONLINE EDUGUIDE
color, since Mount Pleasant, Mich., did not have any ethnic salons at the time. “I saw an opportunity,” Reed said. He also started a DJ operation for campus parties and sold sweatsuits and shoes wholesale, often flying to California and New York to find the latest styles. It was “very lucrative,” Reed said. Another budding businessman was Ed Sarpolus, a 1976 Aquinas College graduate in psychology and philosophy. Sarpolus started out doing standard work/study fare at the Grand Rapids, Mich., school such as shoveling snow, cleaning dorm showers and working as a security guard. He developed a reputation as a jack of all trades, and paid for one semester by detailing an antique baby grand piano. He also started his own business ventures, photographing events and throwing dinner parties in the house he rented with friends. But it was an internal research job for the college that sparked his true passion. Sarpolus learned about data collection, polling, drawing samples, analyzing data and crosstabs. “It was love at first sight,” Sarpolus said. Soon the undergraduate was a player in state and local politics, doing polling for the congressional seat vacated by Gerald Ford when he assumed the vice presidency. Sarpolus also won a casino gambling study with the state of Michigan. “My girlfriend posed as my secretary for the meeting,” he recalled, laughing. Today, Sarpolus is vice president for the EPICMRA polling firm in Lansing, Mich., and holds the title of Michigan’s most quoted pollster. Proof that paying for college can really pay off.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Seven Steps to Saving Money on Student Loans for College
Christine MacDonald
Looking for money for college? Expect about half of it to come in the form of loans. The average Class of 2006 graduate owed $21,100, according to the Project on Student Debt. “Student loans for college are not bad if you are borrowing with a sense of how much you are taking out and a sense of the monthly payments,”said Rick Shipman, Michigan State University’s director of financial aid. “The problem is if you are borrowing in an irresponsible way just like a credit card. You could easily get yourself in trouble.” Finding your way through the maze of loan choices can be more intimidating than an AP history exam. But it can pay off. The difference between the best loans and the worst can save you thousands of dollars in the long run. Consider it the scholarship you give yourself. Here are seven steps from the experts to keep you out of trouble and on the path to saving money. 1. File the FAFSA student aid form as soon as possible in February after you get your tax forms. Even if you don’t think you’ll get much cash, students are often surprised, and you’ll still need the FAFSA to access better deals on loans. Plus the sooner you file it, the sooner you get in line for firstcome, firstserve aid programs. In most states, you can get free help completing the FAFSA at College Goal Sunday. 2. Don’t borrow more than you really need. Borrowing to finance your education can be a good investment but not if you’re using the www.EduGuide.org 49 ONLINE EDUGUIDE money for a new iPod or a spring break trip. Your college’s financial aid award letter will tell you how much loan aid you qualify for. But many students borrow less than the maximum to save themselves future payments. Some also seek loans above the maximum, but
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Seven Steps to Saving Money on Student Loans for College
Christine MacDonald
Looking for money for college? Expect about half of it to come in the form of loans. The average Class of 2006 graduate owed $21,100, according to the Project on Student Debt. “Student loans for college are not bad if you are borrowing with a sense of how much you are taking out and a sense of the monthly payments,”said Rick Shipman, Michigan State University’s director of financial aid. “The problem is if you are borrowing in an irresponsible way just like a credit card. You could easily get yourself in trouble.” Finding your way through the maze of loan choices can be more intimidating than an AP history exam. But it can pay off. The difference between the best loans and the worst can save you thousands of dollars in the long run. Consider it the scholarship you give yourself. Here are seven steps from the experts to keep you out of trouble and on the path to saving money. 1. File the FAFSA student aid form as soon as possible in February after you get your tax forms. Even if you don’t think you’ll get much cash, students are often surprised, and you’ll still need the FAFSA to access better deals on loans. Plus the sooner you file it, the sooner you get in line for firstcome, firstserve aid programs. In most states, you can get free help completing the FAFSA at College Goal Sunday. 2. Don’t borrow more than you really need. Borrowing to finance your education can be a good investment but not if you’re using the money for a new iPod or a spring break trip. Your college’s financial aid award letter will tell you how much loan aid you qualify for. But many students borrow less than the maximum to save themselves future payments. Some also seek loans above the maximum, but before doing so get the advice of a financial aid counselor on your options. That’s because borrowing more than the standard maximum without your financial aid office’s approval can put your other aid at risk. 3. Investigate sponsored loans. Some colleges, states, employers and scholarship groups provide special private loans at rates that are even better than some federal loans. But you’ll have to ask around and check scholarship directories to find them. 4. Compare loans. The easiest way to compare is based on the lowest fixed Interest rate, but other terms are important too. (See 4 Factors to Compare Loans and 5 Types of Loans for more info.) Usually federal loans, starting with Perkins, are the best deal. Private loans are more expensive. But sponsored loans can sometimes be better than both. 5. Compare federal loan providers. If you attend a college that participates in the Federal Family Education Loan Program (FFELP), you’ll also be able to choose which financial institution provides your federal loans. The basic terms are the same as Direct Federal Loans, but some institutions offer better benefits than others, such as more flexible repayment plans or rewards for ontime payments. Many of these same institutions also offer private loans on different terms. 6. Apply for loans accurately and on time or you might not get the money before your first college payment is due. Also if you’re applying for private loans or the federal PLUS loan, make sure there are no errors on your credit report, which can affect what rates you’re eligible for. You can get your report free at Annual Credit Report.com. 7. Consider career choices in your loan plan. Some careers will pay better than others and make it easier to make your monthly payments. And some jobs such as the Peace Corps, the military, and teaching may provide loan forgiveness programs for special public service.
Christine MacDonald has been a reporter for 10 years and recently paid off her own student loans.
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Christine MacDonald has been a reporter for 10 years and recently paid off her own student loans.
Four Factors to Compare Financial Aid, Loans
Christine MacDonald
1. Interest rate. The lower the better, but also consider whether the rate is fixed or variable. Today, federal loan interest rates are fixed, but many private student loans for college have variable interest rates that can increase at a later date. 2. Subsidization. Subsidized financial aid loans don’t accrue interest until graduation, which saves a lot of money. Students have to qualify for subsidized loans based on need, however. 3. Fees. Some lenders charge processing fees that you either pay up front or that are taken out of the amount that you’ve borrowed. So make sure you know how much fees would cost you and how much you’ll actually receive from the loan. 4. Repayment Options. For some student loans for college, repayment starts 60 days after the first loan check is sent, but others can be delayed until months after graduation or longer if the borrower encounters an economic hardship. Flexibility is good, but find out how much it adds to the loan amount before you use it. Also ask: “How long will I have to pay off the loan? Are there any penalties for paying off the loan early? And are there any incentives for ontime payment?"
Christine MacDonald is an education reporter. She recently paid off her student loans, nearly ten years after graduation.
Five Types of Student Loans for College
Christine MacDonald
Here's a quick review of the five types of student loans for college with pros and cons for each type of financial aid for school. Perkins Best federal government needbased loan for students. Pros: Lowest fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student financial aid loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need. Stafford Most common federal student loan. Pros: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan. PLUS Most common federal parent loan. Also used by grad students. Pros: Fixed interest rate. Can cover full cost of attendance minus other aid. 51 ONLINE EDUGUIDE Cons: Subject to credit approval. Not as good a deal as Perkins or Stafford.
www.EduGuide.org
Christine MacDonald has been a reporter for 10 years and recently paid off her own student loans.
Four Factors to Compare Financial Aid, Loans
Christine MacDonald
1. Interest rate. The lower the better, but also consider whether the rate is fixed or variable. Today, federal loan interest rates are fixed, but many private student loans for college have variable interest rates that can increase at a later date. 2. Subsidization. Subsidized financial aid loans don’t accrue interest until graduation, which saves a lot of money. Students have to qualify for subsidized loans based on need, however. 3. Fees. Some lenders charge processing fees that you either pay up front or that are taken out of the amount that you’ve borrowed. So make sure you know how much fees would cost you and how much you’ll actually receive from the loan. 4. Repayment Options. For some student loans for college, repayment starts 60 days after the first loan check is sent, but others can be delayed until months after graduation or longer if the borrower encounters an economic hardship. Flexibility is good, but find out how much it adds to the loan amount before you use it. Also ask: “How long will I have to pay off the loan? Are there any penalties for paying off the loan early? And are there any incentives for ontime payment?"
Christine MacDonald is an education reporter. She recently paid off her student loans, nearly ten years after graduation.
Five Types of Student Loans for College
Christine MacDonald
Here's a quick review of the five types of student loans for college with pros and cons for each type of financial aid for school. Perkins Best federal government needbased loan for students. Pros: Lowest fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student financial aid loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need. Stafford Most common federal student loan. Pros: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan. PLUS Most common federal parent loan. Also used by grad students. Pros: Fixed interest rate. Can cover full cost of attendance minus other aid. Cons: Subject to credit approval. Not as good a deal as Perkins or Stafford.
52 ONLINE EDUGUIDE Sponsored Provided by some colleges, states, employers and scholarship groups. www.EduGuide.org
Christine MacDonald is an education reporter. She recently paid off her student loans, nearly ten years after graduation.
Five Types of Student Loans for College
Christine MacDonald
Here's a quick review of the five types of student loans for college with pros and cons for each type of financial aid for school. Perkins Best federal government needbased loan for students. Pros: Lowest fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student financial aid loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need. Stafford Most common federal student loan. Pros: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan. PLUS Most common federal parent loan. Also used by grad students. Pros: Fixed interest rate. Can cover full cost of attendance minus other aid. Cons: Subject to credit approval. Not as good a deal as Perkins or Stafford. Sponsored Provided by some colleges, states, employers and scholarship groups. Pro: Can be better deal than some federal loans. Con: Harder to find. Ask around and use scholarship directories. Private Provided by banks and credit unions independent of federal system. Pro: May cover expenses beyond aid award. Cons: Subject to credit approval. Read the fine print — some private loans may compete with PLUS loans but some are way more expensive than federal loans.
Christine MacDonald is an education reporter who recently paid off her student loans.
College Costs Checklist
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Susan J. Demas
ONLINE EDUGUIDE
www.EduGuide.org
OK, so you know there’s tuition. But what are some other college costs that can sneak up on you? As you plan your college budget,
Christine MacDonald is an education reporter who recently paid off her student loans.
College Costs Checklist
Susan J. Demas
OK, so you know there’s tuition. But what are some other college costs that can sneak up on you? As you plan your college budget, use this list as a guide: $____ Housing. Whether you live in a dorm, apartment or fraternity or sorority house, this will be a big chunk of your budget. Having a roommate (or four) can bring the cost down, but make sure you're all on the lease so you're not legally stuck with the whole tab. $____ Food. You have a lot of options: an allinclusive board plan through the college, buy your own meals or some combination. Try to hit the grocery store for healthier, less costly staples, not expensive convenience marts. And remember, living off pizza can still add up! $____ Transportation. Keeping up with car payments and rising gas prices can really add up, but this is a necessary expense for many working and commuting students. Look at taking the city and/or campus bus to alleviate some of the costs and hoof it or ride your bike when you can. $____ Parking. Few students can make it through four years of college without a collection of parking tickets as souvenirs. Carry lots of change with you – an extra quarter is worth avoiding a $20 ticket. Better yet, map out where parking garages are – they’re usually a better deal. And you don’t have to run out in the middle of class to plug the meter! $____ Fees. Check your college statements carefully and you’ll probably notice activity, computer and miscellaneous fees. Usually, these are separate from tuition, so students don’t know they have to shell out an extra $50 to $300 per semester. $____ Books. There’s no way around this one if you don’t want to flunk your classes, but it does pay to shop around. Students can pay upward of $500 per semester, so comparison shop between bookstores and browse online. Don’t be afraid to go with used texts – you can save more than 50 percent sometimes. $____ Utilities. If you don’t live on campus, or even if you live in family housing, chances are you’ll have to pay for at least one of these: electric, gas, water, phone, cable, Internet and sewer. Look for apartments where some or all utilities are included. Think about if you really need ESPN or HBO and if you can get by with going online when you’re on campus. $____ Computers. This is a costly purchase, ranging from $500 to $1,500. If you can feasibly research and write your papers at computer labs, you may be able to skip this one. But increasingly, as students take online classes and more courses incorporate online elements, a personal computer is becoming a necessity. Don’t forget the additional costs of a printer, ink cartridges and paper. The good news is many colleges offer discounted computers and software. And you can use these for years to come in the working world. $____ Housewares. So you’re living on your own. If you’re in the dorms, you might not need more than an extra blanket, toiletries and a reading lamp. But if you’re offcampus, you could have to buy everything from a bed to utensils to a vacuum cleaner. See if you can get a furnished apartment. If not, hit resale shops like Goodwill and watch for sales at discount stores. Don’t worry about interior design – mismatched décor is all the rage in college. $____ Travel. Don’t forget to budget how much it costs to go back home, whether it’s gas for your car, or a train, bus or plane ticket. Especially for outofstate students, this can make a dent in your bank account. $____ School supplies. It’s amazing how much you can pay for a few pens, highlighters, notebooks and folders at the student bookstore. Don’t lop those on for convenience – go to an office supply or discount store offcampus and cut your bill in half. $____ Lab fees. Students in certain fields, especially sciences and engineering, will have additional costs. Usually, they’re minimal, perhaps $25 per class. But like anything, it can add up. www.EduGuide.org 54 ONLINE EDUGUIDE $____Clothes. Luckily, college is not a fashion show. In fact, it’s one of the few places where you regularly encounter people clad in
bookstore. Don’t lop those on for convenience – go to an office supply or discount store offcampus and cut your bill in half. $____ Lab fees. Students in certain fields, especially sciences and engineering, will have additional costs. Usually, they’re minimal, perhaps $25 per class. But like anything, it can add up. $____Clothes. Luckily, college is not a fashion show. In fact, it’s one of the few places where you regularly encounter people clad in pajamas. Make sure you have appropriate attire for work, but don’t spend a lot of your budget dressing to impress in the classroom. $____ Laundry. Don’t skimp on this one, no matter how tempting. Washing and drying a load is only about $2.50. Of course, you can always bring the bag back to your folks when you visit, as a college cliché. $____ Entertainment. College campuses and towns typically offer a dizzying array of options in music, movies, art, parties, sports and restaurants – that’s part of the fun! But it’s also a great way to drain your wallet. The bar scene is especially good for busting a student budget, so spend wisely.
Susan J. Demas is a 2006 Knight Foundation fellow in nonprofits journalism and contributing editor to EduGuide.
Six Ways to Keep More of Your Money
EduGuide Staff
1. Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike or walk. Between payments, maintenance, insurance and gas prices, a car will drain your bank account and create pressure you don’t need. 2. If possible, work no more than 15 hours per week. Most fulltime students work at least some of the time. But the benefits outweigh the costs at some point. Research shows that students who work more than 15 hours often begin falling behind academically. Those who work more than 20 hours are at much higher risk of dropping or failing classes — which, of course, just costs more money when they have to be taken again. 3. Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university or point you toward federal work/study programs. They will help you remember that for the most part, you have to apply for financial aid every year. Sometimes they can even point you to scholarships that have extra funds available. 4. Aim for a full load of classes. Parttime students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on fulltime enrollment. 5. If you must withdraw from classes, do so the right way. Sometimes, life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missinginaction approach and just stop attending classes. It can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Not all places have the same rules. 6. Avoid credit cards. Talk about a money pit. The fact that you can get a credit card doesn’t mean you should get one. It’s better to learn to live without shopping jaunts and midnight meals at Denny’s than to find yourself in debt. If you need a card consider a debit card that just draws money from your account. If you do go for a credit card, get one with a low credit limit like $500, to keep you out of trouble, and pay the full amount of the bill, not just the minimum.
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Susan J. Demas is a 2006 Knight Foundation fellow in nonprofits journalism and contributing editor to EduGuide.
Six Ways to Keep More of Your Money
EduGuide Staff
1. Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike or walk. Between payments, maintenance, insurance and gas prices, a car will drain your bank account and create pressure you don’t need. 2. If possible, work no more than 15 hours per week. Most fulltime students work at least some of the time. But the benefits outweigh the costs at some point. Research shows that students who work more than 15 hours often begin falling behind academically. Those who work more than 20 hours are at much higher risk of dropping or failing classes — which, of course, just costs more money when they have to be taken again. 3. Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university or point you toward federal work/study programs. They will help you remember that for the most part, you have to apply for financial aid every year. Sometimes they can even point you to scholarships that have extra funds available. 4. Aim for a full load of classes. Parttime students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on fulltime enrollment. 5. If you must withdraw from classes, do so the right way. Sometimes, life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missinginaction approach and just stop attending classes. It can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Not all places have the same rules. 6. Avoid credit cards. Talk about a money pit. The fact that you can get a credit card doesn’t mean you should get one. It’s better to learn to live without shopping jaunts and midnight meals at Denny’s than to find yourself in debt. If you need a card consider a debit card that just draws money from your account. If you do go for a credit card, get one with a low credit limit like $500, to keep you out of trouble, and pay the full amount of the bill, not just the minimum.
4 Ways NOT to Lose Your Financial Aid
EduGuide Staff
Financial aid counselors see it all the time: A student loses her financial aid and has no idea why. Know that your parents are not receiving any notices about your college life once you are 18. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether it is loans, scholarships or grants — comes with strings attached. Here are the most common ways for students to lose their financial aid.
1. Not showing adequate progress toward your degree. 56 ONLINE EDUGUIDE
www.EduGuide.org
2. Not maintaining at least a 2.0 GPA overall — not just in your major. For academic scholarships, the standards can be even higher.
trouble, and pay the full amount of the bill, not just the minimum.
4 Ways NOT to Lose Your Financial Aid
EduGuide Staff
Financial aid counselors see it all the time: A student loses her financial aid and has no idea why. Know that your parents are not receiving any notices about your college life once you are 18. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether it is loans, scholarships or grants — comes with strings attached. Here are the most common ways for students to lose their financial aid.
1. Not showing adequate progress toward your degree. 2. Not maintaining at least a 2.0 GPA overall — not just in your major. For academic scholarships, the standards can be even higher. 3. Not finishing at least 70 percent of the classes you take. 4. Not knowing all of the conditions of your aid. Some aid goes beyond these common minimums.
Top Five Strategies for Stretching Student Aid Dollars
Susan J. Demas
1. Search high and low. Talk to your school guidance counselor. The Internet is a wealth of information on loans, scholarships and grants. But this takes a lot of time, so start early—even in middle school. Zero in on what your strengths and unique characteristics are—academic performance, parents’ union membership, family income, ethnic background, family alumni status, etc. That will narrow down your search and help you net the most money. And keep searching during your college career. Things are always changing, which means new opportunities. Get personal. Get to know the folks in the college financial aid office and make sure they know you. They are your link to funding that comes in—sometimes unexpectedly in a new scholarship or if a student leaves midsemester. Make sure you are the first person they think of to help. Get a job or two. Working and going to school can be tough—there’s no doubt about it. But working students actually perform better than those who don’t have a job in college. Work during breaks and summers and sock away as much as you can.
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3.
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Get creative. Look offcampus for jobs, where they’re often better paying. Start your own business—many successful startups have their roots in college dorm rooms. If you have to work multiple jobs during the school year, try to pick at least one position related to your major. Think about student work programs that allow you to study geysers at Yellowstone for some handson experience. This will help build your resume, as well as your bank account. www.EduGuide.org ONLINE EDUGUIDE 5. Eat more Ramen. Thrifty is nifty when it comes to a college student budget. Do whatever you can to cut corners on spending—
4.
4. Not knowing all of the conditions of your aid. Some aid goes beyond these common minimums.
Top Five Strategies for Stretching Student Aid Dollars
Susan J. Demas
1. Search high and low. Talk to your school guidance counselor. The Internet is a wealth of information on loans, scholarships and grants. But this takes a lot of time, so start early—even in middle school. Zero in on what your strengths and unique characteristics are—academic performance, parents’ union membership, family income, ethnic background, family alumni status, etc. That will narrow down your search and help you net the most money. And keep searching during your college career. Things are always changing, which means new opportunities. Get personal. Get to know the folks in the college financial aid office and make sure they know you. They are your link to funding that comes in—sometimes unexpectedly in a new scholarship or if a student leaves midsemester. Make sure you are the first person they think of to help. Get a job or two. Working and going to school can be tough—there’s no doubt about it. But working students actually perform better than those who don’t have a job in college. Work during breaks and summers and sock away as much as you can. Get creative. Look offcampus for jobs, where they’re often better paying. Start your own business—many successful startups have their roots in college dorm rooms. If you have to work multiple jobs during the school year, try to pick at least one position related to your major. Think about student work programs that allow you to study geysers at Yellowstone for some handson experience. This will help build your resume, as well as your bank account. Eat more Ramen. Thrifty is nifty when it comes to a college student budget. Do whatever you can to cut corners on spending— clip coupons, ride your bike or walk, buy used books, don’t dine out, eat Ramen noodles (what would college be without them?). Every penny helps.
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When Is Disrespect a Sign of Something Serious?
Barbara Rickard
Your sweet baby has turned into a defiant teen, and you’re left wondering where the handbook for teenage discipline is. You ask yourself questions like these: Is there anything teens respect? Is there a trick when it comes to dealing with teenagers? Is this kind of aggression in children considered normal behavior? When is this disrespectful teenager's behavior going to end? Is disrespectful behavior normal? Sometimes. Is it acceptable? No. You can expect all defiant teens to be mouthy and grumpy sometimes. But how can you tell if your teen’s manners, or lack thereof, is “normal,” or if your kid has a more serious problem? Severe aggressive behavior in children can be a sign that your teen needs help from a professional. Here are ten warning signs that your teenager’s behavior may be cause for concern:
1. Your teen's behavior puts him or her or other family members in physical danger. www.EduGuide.org ONLINE EDUGUIDE 2. Your teen's behavior has become abnormal for her or him: sleeping too little or too long; hating what was once loved or loving what was once hated; avoiding friends or spending too much time with them.
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them?). Every penny helps.
When Is Disrespect a Sign of Something Serious?
Barbara Rickard
Your sweet baby has turned into a defiant teen, and you’re left wondering where the handbook for teenage discipline is. You ask yourself questions like these: Is there anything teens respect? Is there a trick when it comes to dealing with teenagers? Is this kind of aggression in children considered normal behavior? When is this disrespectful teenager's behavior going to end? Is disrespectful behavior normal? Sometimes. Is it acceptable? No. You can expect all defiant teens to be mouthy and grumpy sometimes. But how can you tell if your teen’s manners, or lack thereof, is “normal,” or if your kid has a more serious problem? Severe aggressive behavior in children can be a sign that your teen needs help from a professional. Here are ten warning signs that your teenager’s behavior may be cause for concern:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Your teen's behavior puts him or her or other family members in physical danger. Your teen's behavior has become abnormal for her or him: sleeping too little or too long; hating what was once loved or loving what was once hated; avoiding friends or spending too much time with them. Your teen is increasingly disrespectful, dishonest, or disobedient without any regard to the consequences. Your teen completely ignores or rebels against the family rules. Your teen makes outright or suggested threats of suicide, cuts or injures him or herself, or takes excessive risks (physical, sexual, or by drug/alcohol use). Your teen begins treating people or pets in a threatening manner. Physically harming animals is a sign of a serious problem. Your teen thinks he or she is the center of your family, disregarding the feelings, time, or belongings of other family members. Your teen has had months of counseling with little or no positive progress. Your teen refuses to do anything with the family. Your teen can’t stay away from friends who have destructive behavior and attitudes.
If your teenager has been exhibiting at least five of the behaviors described above for more than six months, contact a school counselor or principal, a teacher your child respects, your family doctor, or a professional therapist. If you have tried counseling and it isn’t working, ask for a referral to a different counselor. Trust your instincts—no one knows your child better than you do. If you need to, get help for both of you.
Sources: sciencenewsforkids.org www.4parents.gov www.askdrsears.com kidshealth.org
Barbara Rickard holds a B.S. from Michigan Technological University and is the mother of three children in elementary, middle, and high school. She has volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
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volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
Financial Aid for Students: Coping with the Credit Crunch
Susan J. Demas
The current credit crunch has hit college student financial aid hard, with some institutions shutting off the lending spigot and leaving families high and dry. “It’s weighing more on students’ minds now than before. They listen to the news; they hear their parents struggling,” said Carol Mountjoy, assistant director of outreach for Western Michigan University. “The economy affects students emotionally and mentally.” There’s a perfect financial storm right now. Despite the fact that Congress this fall authorized $700 billion to bail out banks on Wall Street, many still aren’t lending. That especially hurts students who have private loans, disproportionately impacting those at private colleges. Experts expect that even when banks do start lending in the future, terms will be stricter and rates will be higher. But the economic news gets worse. There’s the foreclosure crisis. Unemployment is on the rise. Health care costs are soaring. Many families are already struggling with major financial issues in the recession on top of putting their kids through college. While people used to be able to borrow against their homes for financial aid for school, that’s largely a thing of the past: home values are declining and the credit crisis has stopped the practice. The bottom line is it’s a scary world out there right now for college students, who are struggling to get loans and facing a shrinking job market. Here’s the good news. If you get your financial aid through federal loans and grants, you shouldn’t be affected by the financial meltdown. Still, Mountjoy has seen more students turn to credit cards to make ends meet, and they’re racking up debt quickly. Instead of acting rashly and taking on risk, students should go straight to their financial aid office. When students run out of money and consider dropping out, the WMU staff is “proactive,” Mountjoy says, doing whatever it can to keep kids in school. Financial aid staff may be able to help identify untapped scholarship money or help students secure loans with reputable lenders. Another new option emerging is peertopeer loans. When banks won’t lend, people ask families and friends to do so. The new twist on this is that there are services, like greennote.com, that take care of the legal paperwork. Lending money can tear friendships and families apart, so more people are turning to services to make the process official and protect the lender. The financial picture is changing rapidly. Most economists believe the recession will get worse and continue to impact college students. The best strategy is to keep on top of your finances and in touch with financial aid officials at school. They’re on top of the latest changes and are there to help.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
FERPA: Family Educational Rights Privacy Act
Barbara Rickard
Many parents pride themselves on keeping up with their kids' grades in high school. Some even take advantage of programs that let them monitor their child’s grades online. If you are keeping close tabs on your high school student's homework now, enjoy this while it lasts, because once she heads off to college, the privacy rules change. And there’s a good chance you won’t like them. When your child goes to college, your right to access his educational records—including grades, billing statements (even if you are the one paying the bills), and health records—may change dramatically. Because of restrictions outlined in a law known as FERPA (the family educational and privacy rights act), colleges may require that you get your adult student’s written permission to access his www.EduGuide.org 60 ONLINE EDUGUIDE private information.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
FERPA: Family Educational Rights Privacy Act
Barbara Rickard
Many parents pride themselves on keeping up with their kids' grades in high school. Some even take advantage of programs that let them monitor their child’s grades online. If you are keeping close tabs on your high school student's homework now, enjoy this while it lasts, because once she heads off to college, the privacy rules change. And there’s a good chance you won’t like them. When your child goes to college, your right to access his educational records—including grades, billing statements (even if you are the one paying the bills), and health records—may change dramatically. Because of restrictions outlined in a law known as FERPA (the family educational and privacy rights act), colleges may require that you get your adult student’s written permission to access his private information.
Protecting Students' Educational Privacy Rights
The Family Educational Rights and Privacy Act (FERPA) is a federal law that was passed in 1974 to protect the rights of every student who is attending an institution of learning beyond the high school level. You may still consider your college freshman your “child,” but once he enrolls in college the federal government considers him an adult with full rights to manage his own privacy. All colleges and universities that receive funding from the U.S. Department of Education must follow the FERPA guidelines before releasing “education records.” Education records are defined as “those records that are directly related to a student and are maintained by an educational agency or institution or by a party acting for the agency or institution.”
Understanding Parents’ Rights
Once a year, schools have to notify parents and eligible students of their FERPA rights. You or your child may request, in writing, that the school not disclose directory information (usually including name, address, telephone number, etc.) to other people or organizations, and the school must honor the request. Some schools only allow this request to be made at the beginning of each school year, so it’s best to ask questions up front. Parents who claim a student as a dependent on their federal income tax forms may have the option of accessing that student’s records. FERPA allows institutions this option, but you must check with every school your child is considering, as policies vary by institution.
Special Circumstances Academic Probation
What happens if your child is placed on academic probation (because of low grades or poor class attendance) or flunks out of school? Again, it varies by institution. For example, when a student at the University of Michigan (U of M) is placed on academic probation the parents are not contacted. All information about grades and academic standing is sent directly to the student. At Connecticut College, however, parents are contacted, so long as they claim the student on their federal income tax statement. Not all public universities follow the same procedures; the same goes for private colleges. You have to ask.
Emergencies
Recent incidents of violence on college campuses have changed the way colleges deal with emergencies. New FERPA guidelines make it clear that colleges are not limited by FERPA in situations where the health and safety of the student or others is in question. Colleges have different definitions of who needs to know. Many have threatassessment teams who are responsible for making these decisions. The University of Michigan, for example, will reach out to parents and whomever else they determine to be appropriate to help prevent harm to the student or others.
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FERPA and HIPAA
Recent incidents of violence on college campuses have changed the way colleges deal with emergencies. New FERPA guidelines make it clear that colleges are not limited by FERPA in situations where the health and safety of the student or others is in question. Colleges have different definitions of who needs to know. Many have threatassessment teams who are responsible for making these decisions. The University of Michigan, for example, will reach out to parents and whomever else they determine to be appropriate to help prevent harm to the student or others.
FERPA and HIPAA
Specifics on how FERPA and HIPAA (Health Insurance Portability and Accountability Act) affect student health records (including mental health records) can be found online in the Joint Guidance on the Application of FERPA and HIPAA To Student Health Records.
Where to go for more information
FERPA is not only strict, it is complicated. To completely understand the guidelines, you may want to contact some other sources for additional information. At your local high school, contact your student’s guidance counselor; at the colleges and universities, contact the registrar, dean of students' office, or student legal services department. Most colleges and universities post FERPA information on their websites. The following sites have additional information:
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Barbara Rickard holds a B.S. from Michigan Technological University and is the mother of three children in elementary, middle, and high school. She has volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
The Real Cost of College
Financial Aid for Students Can Ease the Sticker Shock EduGuide Staff
This chart (based on a 2008–2009 College Board survey) shows the national average tuition fees at three types of schools and illustrates that hardly anyone pays the advertised rate.
College Type 2Year Public 4Year Public 4Year Private
Price Tag $2,402 $6,585 $25,143
Cost to Family $102 $2,885 $14,493
Some of the most expensive schools actually cost the least because they have set aside substantial funds to provide financial aid for students. For example, Harvard provides free tuition for all admitted students with family incomes of $60,000 or less. To find out what the actual annual cost of tuition and room and board will be at the colleges your child is considering, call each school's admissions and financial aid offices. Ask about scholarships, grants, and other discounts that may apply to your family’s situation. College may be a lot more affordable than you think. www.EduGuide.org 62 ONLINE EDUGUIDE These four financial aid tips come from Lloyd Peterson, Vice President of Academic Strategy at College Coach:
volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
The Real Cost of College
Financial Aid for Students Can Ease the Sticker Shock EduGuide Staff
This chart (based on a 2008–2009 College Board survey) shows the national average tuition fees at three types of schools and illustrates that hardly anyone pays the advertised rate.
College Type 2Year Public 4Year Public 4Year Private
Price Tag $2,402 $6,585 $25,143
Cost to Family $102 $2,885 $14,493
Some of the most expensive schools actually cost the least because they have set aside substantial funds to provide financial aid for students. For example, Harvard provides free tuition for all admitted students with family incomes of $60,000 or less. To find out what the actual annual cost of tuition and room and board will be at the colleges your child is considering, call each school's admissions and financial aid offices. Ask about scholarships, grants, and other discounts that may apply to your family’s situation. College may be a lot more affordable than you think. These four financial aid tips come from Lloyd Peterson, Vice President of Academic Strategy at College Coach: 1. 2. 3. 4. Don’t wait until your kids are admitted to a college before they apply for financial aid. Begin the financial aid process by November 1 of your child’s senior year. Financial aid almost always comes in the form of a package. It is rare that kids get a scholarship that covers everything. Typically aid is divided into two parts: a scholarship or grant and student loans and/or a parttime job. Financial aid awards are not final. You apply in November, and awards are made in April. If your financial situation changes, you can appeal the award amount. Never take a college off your list because you think it’s too expensive. Apply, get accepted, and then let the financial aid office fight for you.
Moneysaving College Prep Advice for Teenagers
The Classes You Take in High School Can Save You Money on College Tuition
63 ONLINE EDUGUIDE Christine MacDonald www.EduGuide.org
fight for you.
Moneysaving College Prep Advice for Teenagers
The Classes You Take in High School Can Save You Money on College Tuition Christine MacDonald
While you can’t control the cost of college tuition, there are smart ways of saving money for college that can start as early as your freshman year of high school. Read on to see how your high school academics can affect your college bottom line.
High School Academics Counts
Emily Sole of Traverse City, Michigan, handed over more than six hundred dollars to Wayne State University for a remedial math class that won’t even count toward graduation. She blames herself for not taking her high school math seriously. “I took Algebra II with a bunch of my friends and I just goofed off,” she admits. She took geometry her junior year but passed on math her senior year because she wanted to take more classes that matched her interests, primarily business classes. Now as a college freshman studying business administration, she regrets that decision. She spends five hours a week in a computer lab going over math basics she should have mastered already.
Unprepared College Freshmen
Colleges routinely test incoming freshmen to gauge how prepared they are for college work. According to a report published by the American Diploma Project and Achieve, Inc., almost seventy percent of college instructors reported spending time reviewing material with their students that students should have learned in high school. The same professors estimate that half of the incoming freshman class is unprepared for collegelevel math and writing. Why? Many college freshmen who feel unprepared for college admit that they didn’t work hard in high school.
How Difficult Courses Can Pay Off
Jim Levasseur from Mount Carmel, Illinois, took six Advanced Placement classes in high school and entered Bowling Green University with thirtythree credits. Since thirtythree credits is the equivalent of a whole year of college credit, he entered school not as a freshman but as a sophomore and saved himself an estimated $21,700 in outofstate tuition and room and board at the school. Since tackling these challenging courses also helped Levasseur improve his scores on the PSAT, he earned a full ride National Merit Scholarship that will pay the rest of his way through school. Having the required courses behind him lets Levasseur take classes he is more interested in sooner, including classes in his major of computer animation. He can also register for courses as a sophomore honors student, practically guaranteeing he won’t get shut out of any classes. This calmed his nerves about making the transition to college. “It’s sort of like a big head start,” Levasseur explains. “I was confident in my ability to do work at the college level.”
Christine MacDonald covers education for The Detroit News.
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www.EduGuide.org
Christine MacDonald covers education for The Detroit News.
Four Ways To Lose Your Financial Aid for School
EduGuide Staff
Your parents won’t receive any notices about your college life once you turn 18, so it’s up to you to know and understand your school’s financial aid requirements. Financial aid—whether loans, scholarships, or grants—comes with strings attached. Here are the most common ways for students to lose their financial aid. 1. 2. 3. 4. Not showing adequate progress toward your degree by taking less than a full courseload. Not maintaining at least a 2.0 GPA overall — not just in your major. For academic scholarships, the standards can be even higher. Not finishing at least 70 percent of the classes you take. Other conditions specific to your aid package. Some aid requirements go beyond the common minimums listed above.
Community Service Ideas That Help Students Pay College Expenses
Elizabeth Johnson
Many students who take out student loans for college hope to land highpaying jobs after graduation to help make their loan payments. However, several organizations offer repayment or forgiveness of federal student loans (such as Perkins, Stafford, Direct Loans, and FFEL loans) in exchange for a commitment to work in areas that need professional skills and services. Here are six community service ideas that help pay for college.
Community Service Project Ideas
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Who has a program? Working in the Peace Corps or AmeriCorps VISTA (Volunteers in Service to America) allows you to use your knowledge and skills to help needy people in the United States and internationally. What will I do? AmeriCorps VISTA programs provide opportunities for people to serve through a network of partnerships with local and national nonprofit organizations. During a year of AmeriCorps service, you might: ¡ Tutor disadvantaged youth ¡ Fight illiteracy ¡ Provide health services ¡ Build affordable housing ¡ Teach computer skillsClean parks and waterways ¡ Operate afterschool programs Respond to disasters In the Peace Corps, you’ll do similar jobs in one of seventysix developing countries throughout the world. The Peace Corps asks members to make a twoyear commitment, but you can work longer if you desire.
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l How much can I earn toward college? If you have not yet gone to college, AmeriCorps VISTA will award you $1,200 that can be www.EduGuide.org ONLINE EDUGUIDE applied to your college expenses. Peace Corps members can receive scholarships, reduced tuition, and academic credit toward advanced degrees at many universities.
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Other conditions specific to your aid package. Some aid requirements go beyond the common minimums listed above.
Community Service Ideas That Help Students Pay College Expenses
Elizabeth Johnson
Many students who take out student loans for college hope to land highpaying jobs after graduation to help make their loan payments. However, several organizations offer repayment or forgiveness of federal student loans (such as Perkins, Stafford, Direct Loans, and FFEL loans) in exchange for a commitment to work in areas that need professional skills and services. Here are six community service ideas that help pay for college.
Community Service Project Ideas
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Who has a program? Working in the Peace Corps or AmeriCorps VISTA (Volunteers in Service to America) allows you to use your knowledge and skills to help needy people in the United States and internationally. What will I do? AmeriCorps VISTA programs provide opportunities for people to serve through a network of partnerships with local and national nonprofit organizations. During a year of AmeriCorps service, you might: ¡ Tutor disadvantaged youth ¡ Fight illiteracy ¡ Provide health services ¡ Build affordable housing ¡ Teach computer skillsClean parks and waterways ¡ Operate afterschool programs Respond to disasters In the Peace Corps, you’ll do similar jobs in one of seventysix developing countries throughout the world. The Peace Corps asks members to make a twoyear commitment, but you can work longer if you desire.
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How much can I earn toward college? If you have not yet gone to college, AmeriCorps VISTA will award you $1,200 that can be applied to your college expenses. Peace Corps members can receive scholarships, reduced tuition, and academic credit toward advanced degrees at many universities. How much of my student loans will be forgiven? When you serve full time with AmeriCorps VISTA after college, you’ll receive $4,725 toward payment of your federal student loans. Parttime workers get a partial award. In the Peace Corps, after a year of service, you can apply for deferment of Stafford, Perkins, and consolidation loans, as well as partial cancellation of Perkins Loans—fifteen percent for each year of service, up to seventy percent total. Where do I find out more? Visit www.americorps.gov or www.peacecorps.gov for complete details on applying for a service position.
Teaching
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Who has a program? The federal government created the Stafford Loan Forgiveness Program for teachers to encourage teachers to work in low income schools or schools in areas with teacher shortages. What will I do? Teachers who serve in certain low income elementary or secondary schools for five years and who have an outstanding Direct Loan or FFEL loan balance can apply for loan repayment after completing their fifth year of teaching. How much can I earn toward college? This program is only for repayment of loans after college. How much of my student loans will be forgiven? Teachers who qualify may be eligible for up to $5,000 repayment of their remaining student loan balances. Certain highly qualified math and science teachers working in eligible secondary schools or highly qualified special education teachers may qualify for forgiveness of up to $17,500. People with a bachelor’s degree in early childhood education working in eligible nonprofit child care facilities could have up to one hundred percent of their student loans repaid. Where do I find out more? The federal student aid Web site has a page with extensive information about the Stafford Loan Forgiveness Program for Teachers, including a list of eligible low income schools and the application for loan forgiveness.
Medicine
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Who has a program? The National Health Service Corps and the Nursing Education Loan Repayment Program both offer loan
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Where do I find out more? The federal student aid Web site has a page with extensive information about the Stafford Loan Forgiveness Program for Teachers, including a list of eligible low income schools and the application for loan forgiveness.
Medicine
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Who has a program? The National Health Service Corps and the Nursing Education Loan Repayment Program both offer loan repayment programs for medical professionals who work in areas that need medical help, which are called Health Professional Shortage Areas. Some hospitals and health care facilities have loan forgiveness programs for occupational and physical therapists. What will I do? Medical professionals can either apply to work at eligible medical sites or check the national database to see if their current employer is on the list. These people commit to working at the site for at least two years in order to qualify for loan reimbursement. Current or prospective medical students can apply for scholarships in exchange for service commitments. How much can I earn toward college? The National Health Service Corps Scholarship provides several scholarships for students in training to become primary care physicians, dentists, nurse practitioners, certified nursemidwives, and physician assistants who agree to provide two to four years of service in an NHSC approved site in a Health Professional Shortage Area of greatest need. The scholarship covers tuition, fees, and a living stipend. How much of my student loans will be forgiven? Medical professionals who work for two or more years in areas with critical medical shortages can have as much as sixty percent of their student loan balances forgiven. Doctors, nurse practitioners, dentists, dental hygienists, mental health professionals, and physician assistants who agree to work in areas that lack adequate medical care as identified by the National Health Service Corps could have up to $50,000 in student loan repayments in exchange for two years of service. Where do I find out more? Check out the Nursing Education Loan Repayment Program and the National Health Service Corps. The American Physical Therapy Association and the American Occupational Therapy Association have information on loan forgiveness programs, and the American Association of Medical Colleges has a database of state and other nonfederal repayment programs for medical school students.
Law
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Who has a program? Many states, law schools, and employers have loan repayment and forgiveness programs for law school graduates who work in public interest or nonprofit positions. What will I do? People working as state or local prosecutors, public defenders, civil legal aid, or legal advocates in low income communities at nonprofit organizations may qualify for loan repayment assistance. Criteria vary by program. How much can I earn toward college? These programs assist law school graduates who are working in lowerpaying public interest law positions. The Equal Justice Works Web site (see below) has a list of law schools that offer grants and scholarships to those studying public interest law. How much of my student loans will be forgiven? Loan repayment amounts vary from program to program. Proposed national repayment programs may pay an average of $2,000 to $10,000 per year for qualified service in public interest law. Where do I find out more? Equal Justice Works, formerly the National Association for Public Interest Law, has information about law school loan repayment assistance programs, including a list of participating schools. It also has information about employerbased and statebased loan repayment assistance programs and the Higher Education Reauthorization Act loan repayment assistance programs.
Military
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Who offers a program? Each of the five branches of the military (Army, Navy, Air Force, Marine Corps, and Coast Guard) offers tuition assistance, scholarships, and student loan forgiveness plans of various types. What will I do? Serve your country for a specified number of years through a branch of the military, the reserves, or the National Guard either before or after college to receive tuition assistance and loan repayment benefits. How much can I earn toward college? If you want to go to college first and serve in the military later, the Reserve Officer Training Corps (ROTC) has meritbased scholarships in return for a three or fouryear military commitment upon graduation. If you want to serve in the military first, you can earn or save up to $50,000 toward college expenses. Students who serve part time in the Reserves can receive up to $24,000 toward college in exchange for a commitment of one weekend Reserve service each month, plus two training weeks a year. How much of my student loans will be forgiven? If you enroll in the military after graduation, the military will make payments directly to your student loan lender to help you pay for college. Each branch has its own criteria for loan repayment, so it’s important to ask a recruiter for information. For instance, soldiers can qualify to have onethird of their loan repaid for each year of fulltime service, up to a maximum of $65,000. The Air Force’s College Loan Repayment Program has a maximum payment of $10,000. Where do I find out more? The tuition support page of the Web site Today’s Military explains many ways the military can help you pay for college or repay your loans.
Public Service
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you pay for college or repay your loans.
Public Service
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Who offers a program? The federal government’s new Public Service Loan Forgiveness Program helps employees in public services jobs pay their student loans. What will I do? You may be eligible for this program if you work full time in a public service job such as a federal, state, local, or tribal government organization, agency, or entity; public child or family service agency; tribal college or university; organization that provides emergency management, military service, public safety, law enforcement, public interest law services, early childhood education, services for individuals with disabilities and the elderly, public health, public education, public library service, or school library services. How much can I earn toward college? This program is available only to college graduates. How much of my student loans will be forgiven? The amount will vary. The program forgives remaining student debt after ten years of eligible employment and qualifying loan payments, as long as you are still working full time in an eligible job and have debt remaining after one hundred twenty qualifying payments. Where do I find out more? Visit Public Service Loan Forgiveness or The SmartStudent Guide to Financial Aid for additional details.
Bonus tip: Many states have loan forgiveness programs for teachers, medical and legal professionals, and other workers. Check with your employer to see if you qualify for any state loan forgiveness programs.
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
Student Loans for College: Glossary of Financial Terms
Elizabeth Johnson
For most people the worst part of applying for student loans for college is trying to make sense of the paperwork, with its complicated legal language and confusing terms. To help you figure out student loan information, here are plainlanguage definitions and explanations of financial terms you may encounter. Consolidation: If you have more than one federal student loan, sometimes you can combine them, meaning that you would have one payment instead of several payments per month. The good news is that there is generally no minimum or maximum loan amount that you can consolidate; the bad news is that not all student loans are eligible for consolidation. Your college’s financial aid office or the lender who provided your loans will be able to tell you if your loans can be consolidated. Deferment: Having a deferment means that you can postpone paying back your loan or loans. It may be possible for you to get a deferment if you are:
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Enrolled in college at least half time (typically no fewer than six credits) Enrolled in graduate school Getting job training to help you change careers Unemployed or facing a severe economic hardship Enlisted in the military
This is an extremely useful option particularly for subsidized (See Subsidized Loan) Stafford loans, because you won’t be charged interest during the deferment period. Deferment options vary depending on the type of loan and date you took out the loan. Forbearance: Forbearance means that your loan holder agrees to let you temporarily stop making loan payments, gives you more time to make payments, or lets you make smaller payments. Unlike deferment, the interest on your loan continues during forbearance. If you're unable to make payments on your loan for reasons such as unexpected personal problems like divorce or illness and you don't qualify for a deferment, you may request forbearance of loan payments. Forgiveness: You can reduce or eliminate your federal student loans (such as Perkins or Stafford loans) with forgiveness programs that help you pay off your loans in exchange for one or more years of public or community service. To qualify, you must perform www.EduGuide.org 68 ONLINE EDUGUIDE volunteer work; serve in the military; teach, practice medicine, or practice law or law enforcement in certain types of communities; or meet other criteria outlined by the forgiveness program. Some programs, such as AmeriCorps VISTA, pay a specific dollar amount
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
Student Loans for College: Glossary of Financial Terms
Elizabeth Johnson
For most people the worst part of applying for student loans for college is trying to make sense of the paperwork, with its complicated legal language and confusing terms. To help you figure out student loan information, here are plainlanguage definitions and explanations of financial terms you may encounter. Consolidation: If you have more than one federal student loan, sometimes you can combine them, meaning that you would have one payment instead of several payments per month. The good news is that there is generally no minimum or maximum loan amount that you can consolidate; the bad news is that not all student loans are eligible for consolidation. Your college’s financial aid office or the lender who provided your loans will be able to tell you if your loans can be consolidated. Deferment: Having a deferment means that you can postpone paying back your loan or loans. It may be possible for you to get a deferment if you are:
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Enrolled in college at least half time (typically no fewer than six credits) Enrolled in graduate school Getting job training to help you change careers Unemployed or facing a severe economic hardship Enlisted in the military
This is an extremely useful option particularly for subsidized (See Subsidized Loan) Stafford loans, because you won’t be charged interest during the deferment period. Deferment options vary depending on the type of loan and date you took out the loan. Forbearance: Forbearance means that your loan holder agrees to let you temporarily stop making loan payments, gives you more time to make payments, or lets you make smaller payments. Unlike deferment, the interest on your loan continues during forbearance. If you're unable to make payments on your loan for reasons such as unexpected personal problems like divorce or illness and you don't qualify for a deferment, you may request forbearance of loan payments. Forgiveness: You can reduce or eliminate your federal student loans (such as Perkins or Stafford loans) with forgiveness programs that help you pay off your loans in exchange for one or more years of public or community service. To qualify, you must perform volunteer work; serve in the military; teach, practice medicine, or practice law or law enforcement in certain types of communities; or meet other criteria outlined by the forgiveness program. Some programs, such as AmeriCorps VISTA, pay a specific dollar amount toward your loan; other programs pay a certain percent of your loan for each year of service up to a certain limit. (See “Community Service Ideas That Help Students Pay College Expenses.”) Default: Defaulting on a loan means that you stop making payments as you agreed to when you took the loan. Federal student loans consider you to be in default if you don’t make payments for nine months. Private loans from lenders other than the government may be considered in default sooner than nine months; check with your lender so you know how they define terms. When your loan is in default, the entire amount of the loan becomes due. Delinquent: When you miss or are late with your loan payment, you are considered delinquent on your loan. Your lender may charge a late fee or set some other penalty when you are delinquent with your loan. If you are delinquent for too many months, you may be considered in default. Exit Counseling/Exit Interview: If you have a federal student loan, such as a Perkins, Stafford, or GradPLUS loan, you are required to complete exit counseling when you graduate, leave school, or drop to less than halftime status (fewer than six credit hours). The exit counseling will explain the terms of your loan, repayment requirements, and penalties for delinquency and default. Your school’s financial aid office can conduct the exit interview, or you can do it online at the U.S. Department of Education’s student loan website (https://www.dl.ed.gov/borrower/BorrowerLogin.jsp) Grace period: A grace period is the time between when you leave school (or become less than a halftime student—usually six credits) and when you have to begin making payments on your student loan. For federal loans, the grace period is usually six or nine www.EduGuide.org 69 ONLINE EDUGUIDE months. Some private loans may require you to begin making loan payments as soon as you leave school. Be sure and check with your lender to know for sure when you are supposed to begin repaying your loan.
counseling will explain the terms of your loan, repayment requirements, and penalties for delinquency and default. Your school’s financial aid office can conduct the exit interview, or you can do it online at the U.S. Department of Education’s student loan website (https://www.dl.ed.gov/borrower/BorrowerLogin.jsp) Grace period: A grace period is the time between when you leave school (or become less than a halftime student—usually six credits) and when you have to begin making payments on your student loan. For federal loans, the grace period is usually six or nine months. Some private loans may require you to begin making loan payments as soon as you leave school. Be sure and check with your lender to know for sure when you are supposed to begin repaying your loan. IBR (IncomeBased Repayment): As of July 1, 2009, federal student loans include a repayment option called IncomeBased Repayment (IBR). The program helps borrowers keep their loan payments affordable by setting payment limits based on income and family size. For most eligible borrowers, IBR loan payments will be less than ten percent of their income—and even less for borrowers with low earnings. IBR will also forgive any remaining debt after twentyfive years of qualifying payments. Subsidized Loan: The federal government pays the interest on subsidized loans while you are in college, during the grace period, and during any authorized deferment periods. Having the government pay the interest on the loan during these times keeps the loan amount steady at the amount you borrowed until it is time to repay the loan. Stafford loans in the FFEL (Federal Family Education Loan) and William D. Ford Federal Direct Loan programs can be subsidized up to a certain amount based on your financial need. Unsubsidized Loan: This is the part of a federal Stafford (FFEL or Direct Loan) that is not based on financial need. You are responsible for paying the interest on this loan during inschool, grace, and deferment periods, as well as during normal repayment. You can either make interest payments on the loan while you are in school, or you can have the interest added on to the loan and begin repaying the total once you are out of school.
Additional terms related to student loans: http://www.studentloanborrowerassistance.org/glossary/ Recommended Web sites The National Consumer Law Center’s “Student Loan Borrower Assistance Project” at http://www.studentloanborrowerassistance.org/ provides information and answers to frequently asked questions about student loans and loan repayment. Federal Student Aid Ombudsman of the U.S. Department of Education: http://www.ombudsman.ed.gov/ helps resolve disputes and solve problems with federal student loans.
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
New Student Loan Forgiveness Program Rewards Public Service Workers
Incomebased Repayment and Loan Forgiveness Programs Provide Combined Benefits Elizabeth Johnson
The good news: people who take jobs in public service (such as teaching, government, or AmeriCorps/Peace Corps) could be eligible for a new federal student loan forgiveness program that would help them reduce payments on some financial aid loans. The nots o good news: it could take up to ten years for people to find out if the work they’ve been doing qualifies for the program. The Public Service Loan Forgiveness program enables people to have the balance of their federal financial aid loans forgiven if they are employed full time by a public service organization and have made at least 120 monthly payments on their student loans at the time they apply for loan forgiveness. The program is effective for payments beginning after October 1, 2007; therefore, the first cancellations of loan balances will not be made until October 2017. Details of the program were finalized in October 2008 as part of the College Cost Reduction and Access Act of 2007. The program became widely publicized beginning in July 2009, when the federal government’s incomebased repayment program was launched. The two programs together provide the greatest benefit for student www.EduGuide.org 70 ONLINE EDUGUIDE borrowers in lowpaying public service careers.
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
New Student Loan Forgiveness Program Rewards Public Service Workers
Incomebased Repayment and Loan Forgiveness Programs Provide Combined Benefits Elizabeth Johnson
The good news: people who take jobs in public service (such as teaching, government, or AmeriCorps/Peace Corps) could be eligible for a new federal student loan forgiveness program that would help them reduce payments on some financial aid loans. The nots o good news: it could take up to ten years for people to find out if the work they’ve been doing qualifies for the program. The Public Service Loan Forgiveness program enables people to have the balance of their federal financial aid loans forgiven if they are employed full time by a public service organization and have made at least 120 monthly payments on their student loans at the time they apply for loan forgiveness. The program is effective for payments beginning after October 1, 2007; therefore, the first cancellations of loan balances will not be made until October 2017. Details of the program were finalized in October 2008 as part of the College Cost Reduction and Access Act of 2007. The program became widely publicized beginning in July 2009, when the federal government’s incomebased repayment program was launched. The two programs together provide the greatest benefit for student borrowers in lowpaying public service careers. Not all federal student loans are included in the Public Service Loan Forgiveness program. Only those loans made through the William D. Ford Federal Direct Loan program (Direct Loan) are eligible: this includes subsidized and nonsubsidized Stafford/Ford Loans, Direct PLUS Loans for parents and professional students, and Direct Consolidation Loans. Other federal loans may qualify if they are consolidated into the Direct Consolidation Loan. It is not available for private or alternative student loans, state loans, or federal loans in the Guaranteed or FFEL program. Under the forgiveness program, the scope of public service jobs is broad, potentially enabling many graduates to apply. According to Federal Student Aid, an office of the U.S. Department of Education, qualifying jobs include those in:
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Federal, state, local, or tribal government organizations, agencies, or entities (including most public schools, colleges, and universities) AmeriCorps and Peace Corps jobs Public child or family service agencies Nonprofit, 501c3, tax exempt organizations, whether public or private Tribal colleges or universities Labor unions Partisan political organizations Organizations engaged in religious activities Public services such as emergency management, military service, public safety, law enforcement, public interest law, early childhood education, public service for individuals with disabilities and the elderly, public health, and public library services.
For this program, “fulltime employment” is defined as thirty hours a week or the number of hours an employer considers full time (whichever is greater), or thirty hours per week total if working for multiple employers. For teachers, fulltime employment is considered eight or nine months (a school year). Under a typical student loan repayment program, loans would be paid off in 120 payments, or ten years. However, the Public Service Loan Forgiveness program also assumes that the borrower is participating in either an incomebased repayment or income contingent repayment plan, which allows the borrower to make smaller payments or even no payment over a longer period of time. Under one of these programs, it is possible that one’s student loan would not be paid in full at the end of ten years. In that case, someone working in one or more public service jobs during that time could have the balance of his or her loan forgiven. The U.S. Department of Education does not currently have a formal process for registering for public service loan forgiveness or for confirming eligible employment. Borrowers who think they may qualify should save records that identify their employer, as well as their dates and hours of employment. This checklist can help borrowers gather the documentation they will need for the program. www.EduGuide.org 71 ONLINE EDUGUIDE This web site includes overviews of the Public Service Loan Forgiveness program, incomebased repayment and incomecontingent
someone working in one or more public service jobs during that time could have the balance of his or her loan forgiven. The U.S. Department of Education does not currently have a formal process for registering for public service loan forgiveness or for confirming eligible employment. Borrowers who think they may qualify should save records that identify their employer, as well as their dates and hours of employment. This checklist can help borrowers gather the documentation they will need for the program. This web site includes overviews of the Public Service Loan Forgiveness program, incomebased repayment and incomecontingent repayment programs. Other places to get more information about Public Service Loan Forgiveness include:
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www.FederalStudentAid.ed.gov http://www.finaid.org/loans/publicservice.phtml
Due to the dynamic nature of our quizzes, they are only available on the web. Follow the addresses below to take a quiz on our website.
How Much Do You Know about Saving Money for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/30/view/StepTakeQuiz/Default.aspx
Do I Know How to Pay for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/31/view/StepTakeQuiz/Default.aspx
How Respectful Am I?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/32/view/StepTakeQuiz/Default.aspx
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http://www.finaid.org/loans/publicservice.phtml
Due to the dynamic nature of our quizzes, they are only available on the web. Follow the addresses below to take a quiz on our website.
How Much Do You Know about Saving Money for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/30/view/StepTakeQuiz/Default.aspx
Do I Know How to Pay for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/31/view/StepTakeQuiz/Default.aspx
How Respectful Am I?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/32/view/StepTakeQuiz/Default.aspx
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Allan Cornell Shepherd High School MI
Provided to you by:
Allan Cornell Shepherd High School MI
Table of Contents
How to Respect (and Love) a Disrespectful Teen How to "Fight Fair" with Your Teen Hold a Family Summit on Respect How to Respectfully Disagree in a Disrespectful World Schedule a Meeting with Your Child’s Counselor Set Aside Twentyfive Dollars a Month for College Quiz: How Much Do You Know About Saving Money for College? Choose a Taxfree College Savings Account Ace the FAFSA Know How Much to Save for College Choose the Right Student Loans for College Interview a Financial Aid Advisor about Financial Aid Requirements Quiz: Do I Know How To Pay for College? Find Free College Money on the Web Save Money on Your Student Loans for College Help My High School Senior Know How to Write a College Admissions Essay Saving for College: How Are Three Families Doing It? Really Achieving Your Dreams: Take the Right High School Courses
2 ONLINE EDUGUIDE
FAFSA Helps Families Access the Four Types of Financial Aid for School
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Saving for College: How Are Three Families Doing It? Really Achieving Your Dreams: Take the Right High School Courses FAFSA Helps Families Access the Four Types of Financial Aid for School Family Ideas: Start Saving for College in Kindergarten Three Family Ideas for College Savings Top Ten Questions to Ask College Student Financial Aid Advisors Write a National History Day Essay for High School Scholarships or Cash Prizes! Saving for College: Three Rules Saving for College: It's Never Too Late to Reduce Need for Financial Aid Loans Getting By in College: Budgets and Avoidance Spending Getting By in College: What Students Say FAFSA Student Loans Can Max Your College Cash Advice for Teenagers: Be Prepared for Extra College Expenses Money Management 101: Smart Goal Setting How I Paid for College: Thinking Outside the Box Seven Steps to Saving Money on Student Loans for College Four Factors to Compare Financial Aid, Loans Five Types of Student Loans for College College Costs Checklist Six Ways to Keep More of Your Money 4 Ways NOT to Lose Your Financial Aid Top Five Strategies for Stretching Student Aid Dollars When Is Disrespect a Sign of Something Serious? Financial Aid for Students: Coping with the Credit Crunch FERPA: Family Educational Rights Privacy Act The Real Cost of College Moneysaving College Prep Advice for Teenagers Four Ways To Lose Your Financial Aid for School Community Service Ideas That Help Students Pay College Expenses Student Loans for College: Glossary of Financial Terms
3 ONLINE EDUGUIDE www.EduGuide.org
New Student Loan Forgiveness Program Rewards Public Service Workers
Community Service Ideas That Help Students Pay College Expenses Student Loans for College: Glossary of Financial Terms New Student Loan Forgiveness Program Rewards Public Service Workers How Much Do You Know about Saving Money for College? Do I Know How to Pay for College? How Respectful Am I?
Financial Aid EduGuide
How to Respect (and Love) a Disrespectful Teen
Want more respect from your teen? Show respect: to your teen, your spouse, your community, and to yourself. You can’t force someone to respect you, but you do have the right to be treated with respect if you model respect. Modeling respect is not hard, just keep in mind the following tips:
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Be honest. If you do something wrong, admit it and apologize. Obey the law and follow the rules. Some rules are dumb and many are inconvenient. You don’t have to follow the rule—unless you want your teen to. Observe poor role models. When you see examples of disrespect, point them out and discuss them. Ask your teen how he or she would have handled the situation. Walk the talk. If you have to tell a joke about someone’s religion, culture, age, gender, sexual orientation, appearance, or politics, tell it on yourself. That way, you know you’ll only be offending one person. Be positive. When you see your teen showing respect—to you, another family member, friends, or a stranger—praise him or her. Be gentle. Teenagers are highly sensitive to criticism. Don’t embarrass, insult, or make fun of your child—especially in front of other people. Be fair. Listen carefully to your child’s side of the story. There may be a good reason why your kid behaved that way. Loosen the reins. Start adding a few new rights and responsibilities for your teen shortly before you feel ready to; he or she has probably been ready for some time. If your child doesn’t handle the new freedom well, let him or her face the consequences. Learn to compromise. Go clothes shopping together so you can see what styles your teen likes. Let your teen know from the beginning what clothes are appropriate without insulting his or her taste, and find opportunities to compromise.
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Still not sure you are modeling respect for your teen as well as you might? Take our quick quiz, "How Respectful Am I?" and find out.
ONLINE EDUGUIDE
www.EduGuide.org
How Respectful Am I?
Financial Aid EduGuide
How to Respect (and Love) a Disrespectful Teen
Want more respect from your teen? Show respect: to your teen, your spouse, your community, and to yourself. You can’t force someone to respect you, but you do have the right to be treated with respect if you model respect. Modeling respect is not hard, just keep in mind the following tips:
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Be honest. If you do something wrong, admit it and apologize. Obey the law and follow the rules. Some rules are dumb and many are inconvenient. You don’t have to follow the rule—unless you want your teen to. Observe poor role models. When you see examples of disrespect, point them out and discuss them. Ask your teen how he or she would have handled the situation. Walk the talk. If you have to tell a joke about someone’s religion, culture, age, gender, sexual orientation, appearance, or politics, tell it on yourself. That way, you know you’ll only be offending one person. Be positive. When you see your teen showing respect—to you, another family member, friends, or a stranger—praise him or her. Be gentle. Teenagers are highly sensitive to criticism. Don’t embarrass, insult, or make fun of your child—especially in front of other people. Be fair. Listen carefully to your child’s side of the story. There may be a good reason why your kid behaved that way. Loosen the reins. Start adding a few new rights and responsibilities for your teen shortly before you feel ready to; he or she has probably been ready for some time. If your child doesn’t handle the new freedom well, let him or her face the consequences. Learn to compromise. Go clothes shopping together so you can see what styles your teen likes. Let your teen know from the beginning what clothes are appropriate without insulting his or her taste, and find opportunities to compromise.
Still not sure you are modeling respect for your teen as well as you might? Take our quick quiz, "How Respectful Am I?" and find out.
Sources Parenting Teens with Love and Logic, F. Cline and J. Fay; Dr. Martha Farrell Erickson ,director of the Univ. of Minnesota's Children, Youth and Family Consortium
5 ONLINE EDUGUIDE
www.EduGuide.org
How to Respect (and Love) a Disrespectful Teen
Want more respect from your teen? Show respect: to your teen, your spouse, your community, and to yourself. You can’t force someone to respect you, but you do have the right to be treated with respect if you model respect. Modeling respect is not hard, just keep in mind the following tips:
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Be honest. If you do something wrong, admit it and apologize. Obey the law and follow the rules. Some rules are dumb and many are inconvenient. You don’t have to follow the rule—unless you want your teen to. Observe poor role models. When you see examples of disrespect, point them out and discuss them. Ask your teen how he or she would have handled the situation. Walk the talk. If you have to tell a joke about someone’s religion, culture, age, gender, sexual orientation, appearance, or politics, tell it on yourself. That way, you know you’ll only be offending one person. Be positive. When you see your teen showing respect—to you, another family member, friends, or a stranger—praise him or her. Be gentle. Teenagers are highly sensitive to criticism. Don’t embarrass, insult, or make fun of your child—especially in front of other people. Be fair. Listen carefully to your child’s side of the story. There may be a good reason why your kid behaved that way. Loosen the reins. Start adding a few new rights and responsibilities for your teen shortly before you feel ready to; he or she has probably been ready for some time. If your child doesn’t handle the new freedom well, let him or her face the consequences. Learn to compromise. Go clothes shopping together so you can see what styles your teen likes. Let your teen know from the beginning what clothes are appropriate without insulting his or her taste, and find opportunities to compromise.
Still not sure you are modeling respect for your teen as well as you might? Take our quick quiz, "How Respectful Am I?" and find out.
Sources Parenting Teens with Love and Logic, F. Cline and J. Fay; Dr. Martha Farrell Erickson ,director of the Univ. of Minnesota's Children, Youth and Family Consortium
How to "Fight Fair" with Your Teen
www.EduGuide.org 6 time you try to have a conversation about his drinking. You’re so mad you could scream. Welcome to the world of adolescent ONLINE EDUGUIDE
Your teenage daughter has just called you a "lazy slob" in front of her friends. Your teenage son walks out of the room every parenting.
Dr. Martha Farrell Erickson ,director of the Univ. of Minnesota's Children, Youth and Family Consortium
How to "Fight Fair" with Your Teen
Your teenage daughter has just called you a "lazy slob" in front of her friends. Your teenage son walks out of the room every time you try to have a conversation about his drinking. You’re so mad you could scream. Welcome to the world of adolescent parenting. Getting angry is perfectly normal, but it won’t get you what you want. Even if your teenager's behavior causes you to lose your temper—and it probably will—you can still control the situation. Here’s how: Buy Yourself Some Time Engage in some activities to relieve parent stress. Take a deep breath. Walk away if you have to until you can speak and act calmly. Despite how they may act, teens don’t like being unable to get parents' attention, positive or negative. Restate the Ground Rules Calmly and without shame, remind your child of the family rules for respectful interaction. For tips on how to create a Family Respect Agreement, see EduGuide ShortCut: "How to Hold a Family Summit on Respect." Give a Rerun Ask your teen if he or she would like a rerun—a chance to start over again as though the unacceptable behavior never happened. A rerun gives your child a second chance to act the way he or she should. As a parent, you are entitled to a rerun (or two) yourself. Listen—and Watch What Happens More than anything, a teen wants his or her voice to be heard. Some kids find a facetoface confrontation uncomfortable—so, if you have a teen like that, suggest taking a walk or doing an active chore together. Then wait. Don’t interrupt and don’t set the discussion topic. You may be amazed at how much your teen will say if you keep quiet. Know Your Own Strength Don’t ignore the behavior (it will get worse), but don’t give your teen an order or insist on a punishment that you can’t physically enforce. Nothing kills respect faster than an empty threat. Nothing, except failing to... Respect Yourself to Gain Your Teen's Respect You can’t expect your kid to respect you if you let others treat you disrespectfully. "As teenagers move toward greater independence and responsibility, discussing and negotiating helps them develop important reasoning, communication, and interpersonal skills. As a parent, you have a responsibility to help your teenager practice these skills within boundaries of respect and gratitude." Dr. Martha Farrell Erickson
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SOURCES
SOURCES
Foster Cline and Jim Fay, Parenting Teens with Love and Logic Dr. Martha Farrell Erickson, director of the Univ. of Minnesota Children, Youth and Family Consortium
Hold a Family Summit on Respect
Things to Do ahead of Time
1. Pick a date. Write it on a calendar that everyone in the family can see. Explain briefly that that meeting is about respect and teaching character, and make sure everyone knows the meeting is mandatory. 2. Make copies of the Respect Inventory for each family member. Do this one week before the meeting, and ask everyone to have it finished in time for the meeting. 3. Tell family members to keep a Respect Log for the week. Ask them to keep notes on the times they felt disrespected, saw disrespect, or acted disrespectfully. 4. Pick a location for the meeting that is comfortable and quiet. Turn off the TV, the computer, and the cell phones. Choose a setting where a can express his feelings. 5. Make the meeting fun. Order a pizza or make ice cream sundaes to get everyone in a relaxed mood. The topic is serious, but the meeting doesn’t have to be.
How to Conduct the Summit
6. Start the meeting by reading examples from the Respect Logs. After all family members have had a chance to share, ask each person what makes him or her feel respected and what makes him or her feel disrespected 7. Read each question on the Respect Inventory. Celebrate the areas in which all family members agree and discuss areas of disagreement, but set a time limit (for example, five minutes of discussion for every point of disagreement). If someone comes up with other categories (choice of friends, books, music, etc.), write them down and discuss them. Welcome discussion, but make sure your kids understand that as parents, you have the final say. Work hard to find compromises. 8. Create a list of consequences for disrespectful behavior. For example, first offense: apology accepted; second offense: sit down and discuss; third offense: privileges withheld (cell phone, TV, computer, friends, etc.) for a specified length of time. 9. Write up your Family Respect Agreement. Use the Respect Inventory and list of consequences. 10. End the meeting on a positive note. Talk about what everyone has learned from the meeting and what strategies you will use next time.
8 ONLINE EDUGUIDE After the Summit www.EduGuide.org
Dr. Martha Farrell Erickson, director of the Univ. of Minnesota Children, Youth and Family Consortium
Hold a Family Summit on Respect
Things to Do ahead of Time
1. Pick a date. Write it on a calendar that everyone in the family can see. Explain briefly that that meeting is about respect and teaching character, and make sure everyone knows the meeting is mandatory. 2. Make copies of the Respect Inventory for each family member. Do this one week before the meeting, and ask everyone to have it finished in time for the meeting. 3. Tell family members to keep a Respect Log for the week. Ask them to keep notes on the times they felt disrespected, saw disrespect, or acted disrespectfully. 4. Pick a location for the meeting that is comfortable and quiet. Turn off the TV, the computer, and the cell phones. Choose a setting where a can express his feelings. 5. Make the meeting fun. Order a pizza or make ice cream sundaes to get everyone in a relaxed mood. The topic is serious, but the meeting doesn’t have to be.
How to Conduct the Summit
6. Start the meeting by reading examples from the Respect Logs. After all family members have had a chance to share, ask each person what makes him or her feel respected and what makes him or her feel disrespected 7. Read each question on the Respect Inventory. Celebrate the areas in which all family members agree and discuss areas of disagreement, but set a time limit (for example, five minutes of discussion for every point of disagreement). If someone comes up with other categories (choice of friends, books, music, etc.), write them down and discuss them. Welcome discussion, but make sure your kids understand that as parents, you have the final say. Work hard to find compromises. 8. Create a list of consequences for disrespectful behavior. For example, first offense: apology accepted; second offense: sit down and discuss; third offense: privileges withheld (cell phone, TV, computer, friends, etc.) for a specified length of time. 9. Write up your Family Respect Agreement. Use the Respect Inventory and list of consequences. 10. End the meeting on a positive note. Talk about what everyone has learned from the meeting and what strategies you will use next time.
After the Summit
11. Post the final list where everyone can see it. And don’t be afraid to modify the list if necessary.
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11. Post the final list where everyone can see it. And don’t be afraid to modify the list if necessary.
How to Respectfully Disagree in a Disrespectful World
Following are some suggestions to consider when you and your child disagree. Remember: disagreements are unavoidable. It’s how you disagree that matters.
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Listen carefully to your child without interrupting. Repeat the main points in your own words, and then ask whether you heard correctly. Clear up misunderstandings on the spot. Show that you are interested in what your child is saying and sympathetic to his or her feelings by using such sentences as Would you tell me more about…, Can you give me an example of…, and I can understand why you would feel that way. Use specific I statements rather than general you statements. For example, you might say I feel as though the family is incomplete when you don’t join us on visits to grandma instead of You never visit grandma with us. Support your feelings and opinions with facts. You might tell your teenager that he or she is not allowed to talk on a cell phone while driving because cell phones distract drivers and cause accidents. That’s a fact. Stick to the present. Concentrate on the issue at hand. Aim to understand and communicate rather than win. Frequently, you and your child will simply have to agree to disagree. You may not end the disagreement in smiles, but both of you should feel understood and respected. Compromise whenever possible, but recognize that a compromise may not please either you or your child completely. Don’t be discouraged! Respectful disagreement takes practice, and if your family is like every other, you’re sure to get plenty of opportunities for that.
Schedule a Meeting with Your Child’s Counselor
Do you know who your child’s counselor is? Does your child know? Now is the time to get acquainted with this person who can help you and your child make it to graduation. You want to make sure that he or she remembers your child—for the right reasons.
Schedule an Appointment
Call the school to find out the name of your child’s counselor and schedule an appointment. You don’t have to have a specific problem to solve, but in order to get the most out of your meeting, try to keep focused on a single topic. Here are some ideas:
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Getting to know you. Share your hopes and dreams for your child. Tell the counselor about her interests, activities, and jobs so the counselor can begin to create a picture of your child. Let the counselor know your child’s academic strengths and weaknesses, and ask advice about the best courses for him. Show me the money. If you’re unsure how to pay for college, the high school counselor can provide information about high school scholarships, grants, awards, and financial aid for school. They may even be able to walk you through the forms that you and your child will need to complete. So many choices. Your child’s counselor has information about hundreds of colleges. Ask which colleges might be a good fit for college student financial aid. The counselor should be able to let you know about college fairs in your area, when college admissions representatives will visit your child’s school, and even FAFSA student loans.
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opportunities for that.
Schedule a Meeting with Your Child’s Counselor
Do you know who your child’s counselor is? Does your child know? Now is the time to get acquainted with this person who can help you and your child make it to graduation. You want to make sure that he or she remembers your child—for the right reasons.
Schedule an Appointment
Call the school to find out the name of your child’s counselor and schedule an appointment. You don’t have to have a specific problem to solve, but in order to get the most out of your meeting, try to keep focused on a single topic. Here are some ideas:
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Getting to know you. Share your hopes and dreams for your child. Tell the counselor about her interests, activities, and jobs so the counselor can begin to create a picture of your child. Let the counselor know your child’s academic strengths and weaknesses, and ask advice about the best courses for him. Show me the money. If you’re unsure how to pay for college, the high school counselor can provide information about high school scholarships, grants, awards, and financial aid for school. They may even be able to walk you through the forms that you and your child will need to complete. So many choices. Your child’s counselor has information about hundreds of colleges. Ask which colleges might be a good fit for college student financial aid. The counselor should be able to let you know about college fairs in your area, when college admissions representatives will visit your child’s school, and even FAFSA student loans. On the right track. If your child is excelling in school, inquire about advanced classes, programs, and extracurricular opportunities to keep her challenged. If your child is struggling, ask about tutors, peer assistance programs, and outside help. Testing, testing. Find out what college admission and placement tests your child should be taking. The high school counselor can keep you informed about test dates, locations, costs, and can help you interpret test scores. Red flags. If your child or your family is going through a difficult time—divorce, illness or death in the family, unemployment, etc., be sure and let the counselor know, especially if these circumstances are affecting your child’s grades.
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Keep in Touch
Even if you only have one formal facetoface meeting with the counselor, be sure that she knows you are out there, active and concerned about your child’s school progress. How?
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Say “hello” when you see the counselor at school functions like open houses, parentteacher conferences, school plays and concerts, athletic events, and award ceremonies. Don’t discuss your child’s academic situation, just be friendly and visible. Attend schoolsponsored workshops and parent meetings related to course selection, graduation requirements, and college planning. You might be surprised how few parents attend these events. Your presence there will show how committed you are to your child’s educational success. Call or email with questions. Most counselors will reply to phone and email messages from parents. This respects their time and yours.
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and yours.
Set Aside Twentyfive Dollars a Month for College
Without Raiding the Sofa Cushions
Though it is hard to predict exactly what the cost of your child’s college education will be, you can commit now to saving something— anything—to help pay for it. The key is to make a plan and stick with it. Even the most modest amount of money saved regularly and consistently can grow into an important source of financial aid for school. Plus, setting up a college saving program shows your child that you expect him or her to go to college and that you believe college student financial aid is a goal worth working toward. Why twentyfive dollars? Many 529 college savings plans allow people to begin investing with only twentyfive dollars a month, so that’s a good starting place. Where will that twentyfive dollars come from? Here are some ideas.
Change You Can Believe In
Start a coin jar and ask everyone in the family to empty their pockets and/or coin purses into it at the end of the day (twentyfive dollars a month is about eightythree cents a day). One way to make sure you will have coins to contribute is always pay with paper money and never use change. That way you will get change back from every transaction.
Bank on Coupon Savings
When you use coupons to reduce your grocery bill, don’t just congratulate yourself on the money you saved. Take that amount (it’s usually listed at the end of the grocery bill) and put it aside. Coupon money will add up quickly.
Create a Game
As a family, come up with ideas for making saving fun. For instance, every time a letter from a college arrives, toss a dollar into the kitty. When the college is on your child’s dream list, increase the amount to five dollars. When your child brings home good grades on a report card, don’t pay him or her for every A or B. Pay the college fund instead.
Skip the Vending Machines
If you typically hit the vending machine for an afternoon soda or candy bar, start bringing those treats from home. Vending machine soft drinks can cost a dollar or more; a twelvepack of soda for four dollars works out to thirtythree cents a can. Ditto for candy bars, chips, and cookies. Pack your own and earmark the savings for college.
Rethink Your Lunch Plans
If you eat lunch out every day, cut back even one day to save an average of seven dollars a week. When you do eat out, order water instead of soda. You’ll save nearly two dollars.
Get to Know Your Library
Libraries have more than books. You can borrow videos, DVDs, even video games for a lot less money than you’d spend at the corner video store. Most libraries also carry magazines; if they carry your favorite, you can cancel your subscription and send that money to the college fund.
Review Your Bills
Are you paying for things you don’t use? Do you need call waiting and caller ID on your phone? Do you need your phone? (Many www.EduGuide.org 12 ONLINE EDUGUIDE people are giving up their land lines and making their cell phone their main line.) Are you paying for premium cable channels that you never watch? Will bundling your phone and Internet cost you less than paying for them separately? Is your cell phone plan the most
college fund.
Review Your Bills
Are you paying for things you don’t use? Do you need call waiting and caller ID on your phone? Do you need your phone? (Many people are giving up their land lines and making their cell phone their main line.) Are you paying for premium cable channels that you never watch? Will bundling your phone and Internet cost you less than paying for them separately? Is your cell phone plan the most cost effective choice for your family? Can you read the daily newspaper online instead of paying for a subscription? Take the time to ask questions like these, and crunch the numbers to discover where a few extras dollars may be hiding each month.
Beat the Budget
If you budgeted one hundred fifty dollars for groceries and you spent only one hundred fortysix, put that four dollar savings into the college fund. If you figured it would take forty dollars to fill up the car and it only took thirtythree dollars, put that seven dollars in the college fund.
Share Your Good Fortune
When you receive unexpected money, such as a rebate, refund, or bonus, split it between yourself and the college fund. Encourage your child to do the same with birthday and holiday money. For more moneysaving ideas, sign up for Michele Singletary’s weekly personal finance enewsletter. Do an online search for “money saving tips” and explore Web sites like these: The Simple Dollar The Dollar Stretcher Better Budgeting MoneySaving Mom
Quiz: How Much Do You Know About Saving Money for College?
EduGuide Staff
1. Have you started saving for your child’s college education? A. Of course. I’ve been putting money in a taxfree college savings plan since my kid was three. B. Sort of. When I get bonuses or gift money or tax refunds, I try to put them away for college. C. Not really. I’m hoping my child will be brilliant, or an athlete, or maybe a brilliant athlete, and get a free ride to college. Have you and your child completed the FAFSA? A. Yes. I finished my taxes as soon after January 1 as I could so we could meet the FAFSA filing deadline for our state. B. No; I don’t think we’ll qualify for financial aid, so why bother? C. What is FAFSA? Do you know where to find scholarship information? A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships that might fit my child. B. Not really. I thought that the high school guidance counselor was supposed to give students information about scholarships. C. Scholarships? My kid? I guess I can dream, can’t I?
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If most of your answers are A's, you are serious about helping fund your child’s college education. You and your child are most likely well prepared to pay for college. Even though you have a college nest egg built up and you know what scholarships your child is eligible for, you may want to read the ShortCut “Choose the Right Student Loans for College: The Pros and Cons of Five Popular Options” just in case you need to make up the difference between your child’s tuition and your current savings. The article “The Real Cost of College” will help you keep on track during your child’s senior year to meet financial aid deadlines. And read “FAFSA 101: Tips www.EduGuide.org 13 ONLINE EDUGUIDE and Lifesavers to Maximize College Student Financial Aid” to make sure your child gets the best financial aid package possible. If you answered mostly B's, you have good intentions but not a lot of cash set aside for your aspiring college student. It’s not too late,
MoneySaving Mom
Quiz: How Much Do You Know About Saving Money for College?
EduGuide Staff
1. Have you started saving for your child’s college education? A. Of course. I’ve been putting money in a taxfree college savings plan since my kid was three. B. Sort of. When I get bonuses or gift money or tax refunds, I try to put them away for college. C. Not really. I’m hoping my child will be brilliant, or an athlete, or maybe a brilliant athlete, and get a free ride to college. Have you and your child completed the FAFSA? A. Yes. I finished my taxes as soon after January 1 as I could so we could meet the FAFSA filing deadline for our state. B. No; I don’t think we’ll qualify for financial aid, so why bother? C. What is FAFSA? Do you know where to find scholarship information? A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships that might fit my child. B. Not really. I thought that the high school guidance counselor was supposed to give students information about scholarships. C. Scholarships? My kid? I guess I can dream, can’t I?
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If most of your answers are A's, you are serious about helping fund your child’s college education. You and your child are most likely well prepared to pay for college. Even though you have a college nest egg built up and you know what scholarships your child is eligible for, you may want to read the ShortCut “Choose the Right Student Loans for College: The Pros and Cons of Five Popular Options” just in case you need to make up the difference between your child’s tuition and your current savings. The article “The Real Cost of College” will help you keep on track during your child’s senior year to meet financial aid deadlines. And read “FAFSA 101: Tips and Lifesavers to Maximize College Student Financial Aid” to make sure your child gets the best financial aid package possible. If you answered mostly B's, you have good intentions but not a lot of cash set aside for your aspiring college student. It’s not too late, though. The article “FAFSA Helps Families Access the Four Types of Financial Aid for School” shows why this task is so important for collegebound families. Read the ShortCut “Know How Much To Save for College: Use a College Saving Calculator” to get an idea of how saving now can help offset college costs later. If you answered mostly C's, you need everything the EduGuide Help My Child Pay for College: Understanding College Student Financial Aid offers. Your child can still go to college; you’ll just have to work harder to make it happen financially. Take comfort in the statistics presented in the article “The Real Cost of College,” and then read “Choose the Right Student Loans for College: Pros and Cons of Five Popular Options.” Learn why completing the FAFSA is crucial for you and your child in “FAFSA Helps Families Access the Four Types of Financial Aid for School.” But don’t just rely on financial aid and loans. Read the ShortCut “Set Aside $25 a Month for College,” and begin saving today.
Choose a Taxfree College Savings Account
The Pros and Cons of Five Popular Options Eduguide Staff 14 ONLINE EDUGUIDE
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College,” and begin saving today.
Choose a Taxfree College Savings Account
The Pros and Cons of Five Popular Options Eduguide Staff
Even if your child will not be college age for quite a few years, it’s never too early to begin saving money for college. Here are five different, inexpensive ways to start a taxfree college savings account. In order to pick the one that’s right for you, weigh the pros and cons of each. But in the end, any savings program is better than none.
529 Savings Plans
Pick the state that has the best plan for you. Choosing your home state’s plan can result in tax and other benefits. In Michigan, EduGuide’s home state, families can begin with as little as twentyfive dollars in the Michigan Education Savings Program (MESP). (See related ShortCut: “Set Aside Twentyfive Dollars a Month for College: Without Raiding the Sofa Cushions.”) Pro: Contributions are eligible for state tax deductions. In Michigan, it’s a $10,000 tax deduction ($5,000 for single filers). You can use 529 funds at any accredited postsecondary college in the United States and at many schools abroad. Con: The plan’s taxfree status is up for renewal by Congress in 2010. The account value may fluctuate depending on investment options.
529 Prepaid Plans
Pay tuition now and lock in today’s rates. Most states have prepaid plans. Example: with the Florida Prepaid College Plan, you can buy your fiveyearold two years of tuition at community college (a lump sum of $4,193) with $37.14 paid every month until your child starts college. The same two years of college thirteen years from now when your child starts college could be nearly $10,000. By prepaying and locking in today’s rate, you could save $5,900. If you didn’t lock in today’s tuition rate with a prepaid plan, you’d need to save seventyseven dollars each month to pay for the same two years of college. Pro: Guarantees against rising tuition costs. Monthly payment contract will motivate you to save. Can be used to pay for tuition at out ofstate and private colleges. Some states offer tax benefits associated with these plans. Con: State residency requirements. Some plans have restrictions on transfers to another child. The money is tied up until the child starts college.
Education Savings Account
Open an account with any bank, broker, or mutual fund—much like retirement savings. Pro: Can be used for college or any educational expenses K12—including books, private school tuition, computers, and tutors. Lets you pick your own investments. Con: Limited to $2,000/year per child. Tax benefits for some plans phase out for some families making more than $95,000. May tempt you to spend before your child’s college years.
Cash Back
Buy selected goods with a registered credit card and get one to ten percent cash back for a college savings account. Upromise, EdExpress.com, Babymint.com and MBNA Fidelity credit cards offer such programs. Pro: Save while you spend. Average annual savings range from fifty to five hundred dollars. Registered friends can direct their earnings to your account. Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into your child’s account.
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earnings to your account. Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into your child’s account.
Roth and Traditional IRAs
Tax laws now let you take money from these retirement accounts to pay for college without penalty. You can open IRA accounts at any bank or investment agency. Pro: Some experts recommend saving for retirement or a home before saving for college. This option allows you to save for both and choose how to spend later. You can pick your own investments. Con: Limited to $5,000 a year per person if you are fortynine or younger in 2008. Some restrictions apply. May confuse your retirement planning; your retirement fund may not attract contributions from family members.
Ace the FAFSA
Tips and Lifesavers for Maximizing College Student Financial Aid EduGuide Staff
Making mistakes on or leaving information out of your FAFSA could delay your application and possibly make you lose out on some financial aid for school. The National Association of Student Financial Aid Administrators (NAFSAA) has compiled a list of the most common errors people make on the FAFA. As you and your child complete the FAFSA, try to avoid these mistakes:
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Leaving blank fields–enter a "0 or "not applicable" instead of leaving a blank. Too many blanks may cause miscalculations and an application rejection. Using commas or decimal points in numeric fields; always round to the nearest dollar. Listing incorrect social security number or driver's license number; check these entries and have someone else check them too. Triple check to be sure. Entering the wrong federal income tax paid amount; obtain your federal income paid amount from your income tax return forms not your W2 form(s). Listing adjusted gross income as equal to total income; these are not the same figure. In most cases, the AGI is larger than the total income. This mistake is particularly common. Listing marital status incorrectly; only write yes if you're currently married. If you're separated, you're considered married. Enter your marital status on the day you sign the FAFSA or Renewal FAFSA. Listing parent marital status incorrectly; the custodial parent's marital status is needed; if they've remarried, you'll need the stepparent's information too. Leaving the question about drugrelated offenses blank; If you're unsure about something, find out before you submit your FAFSA instead of leaving a blank. A conviction doesn't necessarily disqualify you from getting aid. Forgetting to list the college; obtain the federal school code for the college you plan on attending and list it, along with any other schools to which you've applied. Forgetting to sign and date; if you're filling out the paper FAFSA, be sure to sign it. If you're filing electronically, be sure to obtain your PIN from www.pin.ed.gov. Your PIN is your electronic signature and will always be assigned to you only. Entering the wrong address; this is the student’s permanent address, not a campus or summer address.
Here is a list of materials that will help you and your child complete the FAFSA: Your child’s and your social security numbers (can be found on social security card) Your child’s and your driver's license (if any) l Your child’s W2 forms for the previous year and other records of money earned l Your child’s most recent federal income tax return—IRS Form 1040, 1040A, 1040EZ, 1040Telefile, foreign tax return, or tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia www.EduGuide.org ONLINE EDUGUIDE l Your (the parents’) federal income tax return for the previous year (if your student is a dependent student as defined by federal criteria)
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planning; your retirement fund may not attract contributions from family members.
Ace the FAFSA
Tips and Lifesavers for Maximizing College Student Financial Aid EduGuide Staff
Making mistakes on or leaving information out of your FAFSA could delay your application and possibly make you lose out on some financial aid for school. The National Association of Student Financial Aid Administrators (NAFSAA) has compiled a list of the most common errors people make on the FAFA. As you and your child complete the FAFSA, try to avoid these mistakes:
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Leaving blank fields–enter a "0 or "not applicable" instead of leaving a blank. Too many blanks may cause miscalculations and an application rejection. Using commas or decimal points in numeric fields; always round to the nearest dollar. Listing incorrect social security number or driver's license number; check these entries and have someone else check them too. Triple check to be sure. Entering the wrong federal income tax paid amount; obtain your federal income paid amount from your income tax return forms not your W2 form(s). Listing adjusted gross income as equal to total income; these are not the same figure. In most cases, the AGI is larger than the total income. This mistake is particularly common. Listing marital status incorrectly; only write yes if you're currently married. If you're separated, you're considered married. Enter your marital status on the day you sign the FAFSA or Renewal FAFSA. Listing parent marital status incorrectly; the custodial parent's marital status is needed; if they've remarried, you'll need the stepparent's information too. Leaving the question about drugrelated offenses blank; If you're unsure about something, find out before you submit your FAFSA instead of leaving a blank. A conviction doesn't necessarily disqualify you from getting aid. Forgetting to list the college; obtain the federal school code for the college you plan on attending and list it, along with any other schools to which you've applied. Forgetting to sign and date; if you're filling out the paper FAFSA, be sure to sign it. If you're filing electronically, be sure to obtain your PIN from www.pin.ed.gov. Your PIN is your electronic signature and will always be assigned to you only. Entering the wrong address; this is the student’s permanent address, not a campus or summer address.
Here is a list of materials that will help you and your child complete the FAFSA:
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Your child’s and your social security numbers (can be found on social security card) Your child’s and your driver's license (if any) Your child’s W2 forms for the previous year and other records of money earned Your child’s most recent federal income tax return—IRS Form 1040, 1040A, 1040EZ, 1040Telefile, foreign tax return, or tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia Your (the parents’) federal income tax return for the previous year (if your student is a dependent student as defined by federal criteria) Your child’s untaxed income records for the previous year —Social Security, Temporary Assistance to Needy Families (TANF), welfare, or veterans benefits records Your child’s current bank statements Your child’s current business and investment mortgage information, business and farm records, stock, bond, and other investment records Documentation that your child is a U.S. permanent resident or other eligible noncitizen.
Bonus tip: If you apply online, your application will be processed faster and will likely be more accurate because your application will be processed on the FAFSA Web site to catch errors. The online application also provides worksheets that will calculate amounts and enter them into the field for you. You can save and continue the FAFSA at any time online and then sign your application electronically www.EduGuide.org 17 ONLINE EDUGUIDE using a personal identification number (PIN) which you can get from the Federal Student Aid PIN Web site.
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Documentation that your child is a U.S. permanent resident or other eligible noncitizen.
Bonus tip: If you apply online, your application will be processed faster and will likely be more accurate because your application will be processed on the FAFSA Web site to catch errors. The online application also provides worksheets that will calculate amounts and enter them into the field for you. You can save and continue the FAFSA at any time online and then sign your application electronically using a personal identification number (PIN) which you can get from the Federal Student Aid PIN Web site. There are resources available if you decide you need assistance filling out the FAFSA. Check the FAQ section on the FAFSA Web site, or call the Federal Student Aid Information Center at 18004FED AID (18004333243). You can also participate in College Goal Sunday in your state for personal assistance completing the FAFSA. College Goal is held every February at a college campus near you.
Know How Much to Save for College
Use a College Savings Calculator
If you’re not sure what kind of financial goals to set to fund your child’s college education, a college saving calculator, such as this one on the TIAACREF Web site, can help as you think about saving money for college.
Information You’ll Need before You Start
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Cost of tuition for one year of college today: If you’re not sure where your child might go to school, simply pick a public four year college in your state and check its Web site for its annual tuition. Tuition inflation rate: This calculator sets a default rate of six percent. Depending on the school, the area of the country, and the current economy, this figure could be between two and eight percent. Years to save before college: Assume your child will start college at eighteen, and subtract his or her current age to arrive at this number. Initial savings: the amount of money you already have set aside for college Contribution amount: If you have a dollar amount you’d like to contribute monthly, put it in here. You can change the amount to see how the totals change on the calculator. Assumed rate of return: This calculator sets a default rate of six percent.
What the Calculator Will Tell You
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What four years of college will cost by the time your child attends How much money your savings plan will have earned by that time Your savings shortfall What you would need to do to make up the difference, either as a lump sum, additional monthly contributions, or additional yearly contributions
Keep in mind that most students do not pay full price for college (see “The Real Cost of College”). Note: This exercise focuses on tuition only. College costs usually include room and board, books, and other costs.
Putting It All Together: Three Examples
1. Aaron and Julie have a new daughter, Alicia. They want to open a 529 college savings plan for her with the hope that she will attend Big State University in eighteen years. They already have five hundred dollars to open up an account. They are not sure how much to invest monthly, but think that fifty dollars a month sounds reasonable. Let’s see: Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent ONLINE EDUGUIDE l Years to save before college: 18 l Initial savings: $500
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Know How Much to Save for College
Use a College Savings Calculator
If you’re not sure what kind of financial goals to set to fund your child’s college education, a college saving calculator, such as this one on the TIAACREF Web site, can help as you think about saving money for college.
Information You’ll Need before You Start
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Cost of tuition for one year of college today: If you’re not sure where your child might go to school, simply pick a public four year college in your state and check its Web site for its annual tuition. Tuition inflation rate: This calculator sets a default rate of six percent. Depending on the school, the area of the country, and the current economy, this figure could be between two and eight percent. Years to save before college: Assume your child will start college at eighteen, and subtract his or her current age to arrive at this number. Initial savings: the amount of money you already have set aside for college Contribution amount: If you have a dollar amount you’d like to contribute monthly, put it in here. You can change the amount to see how the totals change on the calculator. Assumed rate of return: This calculator sets a default rate of six percent.
What the Calculator Will Tell You
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What four years of college will cost by the time your child attends How much money your savings plan will have earned by that time Your savings shortfall What you would need to do to make up the difference, either as a lump sum, additional monthly contributions, or additional yearly contributions
Keep in mind that most students do not pay full price for college (see “The Real Cost of College”). Note: This exercise focuses on tuition only. College costs usually include room and board, books, and other costs.
Putting It All Together: Three Examples
1. Aaron and Julie have a new daughter, Alicia. They want to open a 529 college savings plan for her with the hope that she will attend Big State University in eighteen years. They already have five hundred dollars to open up an account. They are not sure how much to invest monthly, but think that fifty dollars a month sounds reasonable. Let’s see:
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Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent Years to save before college: 18 Initial savings: $500 Monthly contributions: $50 Rate of return: 6 percent
According to the calculator, in eighteen years, four years at Big State University will cost $112,380, or about $25,689 per year. Aaron and Julie’s 529 Plan will have $20,567, not quite enough to cover one year’s tuition. If they set their monthly contributions at $100 per month, they will have $40,550, enough to cover all of Alicia’s first year of school and $14,800 of her second year. To fully fund Alicia’s college tuition, they would need to set aside $265 per month. 2. Phil and LaDonna have a tenyearold son, Ty. They haven't really thought much about college, but now that Ty is approaching middle school, they think they should invest something toward his college education. They plan to start with the thousand dollars they www.EduGuide.org 19 ONLINE EDUGUIDE received as a federal tax refund, and then deposit one hundred fifty dollars a month in a 529 plan. Will that work? Here’s how the numbers work out:
and Julie’s 529 Plan will have $20,567, not quite enough to cover one year’s tuition. If they set their monthly contributions at $100 per month, they will have $40,550, enough to cover all of Alicia’s first year of school and $14,800 of her second year. To fully fund Alicia’s college tuition, they would need to set aside $265 per month. 2. Phil and LaDonna have a tenyearold son, Ty. They haven't really thought much about college, but now that Ty is approaching middle school, they think they should invest something toward his college education. They plan to start with the thousand dollars they received as a federal tax refund, and then deposit one hundred fifty dollars a month in a 529 plan. Will that work? Here’s how the numbers work out:
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Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent Years to save before college: 8 Initial savings: $1,000 Monthly contributions: $150 Rate of return: 6 percent
According to the calculator, in eight years, four years at Big State University will cost $62,752, or $14,345 per year. By investing one hundred fifty dollars a month, Phil and LaDonna will have saved $20,321, enough to pay for one full year and part of a second. If they were to invest $265 a month (what Aaron and Julie need to invest to fully fund their child’s education), they would have $35,609, enough to pay for about 2 1/2 years of college. To fully fund Ty’s college education, Phil and LaDonna will have to invest $455 per month. 3. James and Elise have a fifteenyearold daughter, Mandy, who just informed them that she wants to go to Big State University in three years. James and Elise have never really thought much about paying for college. Mandy is a smart girl, but they’re not sure how much she might get in scholarships. They decide to start putting something away but aren’t sure how much good it will do. Here are the numbers:
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Today’s tuition at Big State U: $9,000 Tuition inflation rate: 6 percent Years to save before college: 3 Initial savings: $500 Monthly contributions: $200 Rate of return: 6 percent
According to the calculator, in three years, four years at Big State University will $46,892, or $12,044 per year. By investing $200 per month, James and Elise will be able to pay $8,482 towards Mandy’s first year of college. If they invest $455 per month (what Phil and LaDonna need to invest to fully fund their child’s education), they will have $19,007, enough to pay for all of Mandy’s first year and about twothirds of her second year. To fully fund her education, they will need to invest a whopping $1,073 per month. These examples illustrate the benefits of investing early for your child’s college education. But if you haven’t started saving yet, does that mean you shouldn’t? Should James and Elise even bother if all they can put aside is two hundred dollars a month? Absolutely. The $8,482 they save is $8,482 they won’t have to borrow and pay back later. Saving is always worthwhile. You may wonder if saving now will cut your child’s financial aid later. A little for some families, but you’re still better off having money than not, just as you’re better off earning wages than not despite income taxes. Using today’s aid formula, a low or middleincome family could lose up to five dollars in aid for every one hundred dollars extra they saved in any of the current college savings tools.
Choose the Right Student Loans for College
The Pros and Cons of Five Popular Options EduGuide Staff
Student loan information can seem overwhelming. Here is a quick review of the five types of student loans for college and the pros and cons of each. www.EduGuide.org 20 ONLINE EDUGUIDE
family could lose up to five dollars in aid for every one hundred dollars extra they saved in any of the current college savings tools.
Choose the Right Student Loans for College
The Pros and Cons of Five Popular Options EduGuide Staff
Student loan information can seem overwhelming. Here is a quick review of the five types of student loans for college and the pros and cons of each.
Perkins
Best federal government needbased loan for students. Pro: Lower fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need.
Stafford
Most common federal student loan. Pro: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan.
PLUS (Parent Loans for Undergraduate Students)
Most common federal parent loan. Also used by grad students. Pro: Fixed interest rate. Can cover full cost of attendance minus other aid. Con: Subject to credit approval. Not as good a deal as Perkins or Stafford.
Sponsored
Provided by some colleges, states, employers, and scholarship groups. Pro: Can be a better deal than some federal loans. Con: Harder to find. Ask around and use scholarship directories.
Private
Provided by banks and credit unions independent of the federal system. Pro: May cover expenses beyond aid award. Con: Subject to credit approval. Read the fine print—some private loans may compete with PLUS loans, but some are way more expensive than federal loans.
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expensive than federal loans.
Interview a Financial Aid Advisor about Financial Aid Requirements
A Dozen Questions You Need to Ask EduGuide Staff
Take the time to meet with your college’s financial aid adviser to ask questions about financial aid requirements and student loan information. Don’t be embarrassed: it’s their job to explain this complex topic and to help you (not prevent you) from attending their college. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. What is the total annual cost to attend this college? Are there any extra costs that I need to plan for? What employment opportunities (including workstudy) are available for students? What scholarships might I be eligible for? What reduced cost, sponsored student loans am I eligible for? What loans have the lowest interest rates and fees? When would I have to start paying back the loans, and how flexible is the repayment plan? Will the school reduce my financial aid or loans if I also get a private scholarship? What would cause me to lose my financial aid? Depending on what degree I earn, what kind of loan forgiveness programs are available? Would the loans I’m considering be eligible for loan forgiveness? Based on the amount I’m borrowing, what will I owe at the time I graduate? What will my monthly payments be? How much does the average student owe when at graduation?
Source: Christine MacDonald, The Detroit News.
Quiz: Do I Know How To Pay for College?
Have you thought about ways you can help make college more affordable? A. Yes. I’m taking some AP classes so I can get some college credits out of the way early, and I’m take challenging classes in my senior year so I don’t have to take any noncredit remedial classes in college. B. Well, I’m trying to keep my grades up so that I might get a scholarship or two, and I’m considering attending community college for a couple of years to keep costs down. C. What can I do? I’m assuming my parents have a sort of college fund for me. 2. Have you completed the FAFSA? A. Yes. My parents and I attended a College Goal Sunday event and filed the FAFSA in plenty of time to meet both state and federal deadlines. B. Me? Aren’t my parents supposed to do that? I don’t understand all that financial stuff. C. What is FAFSA? 3. Do you know where to find scholarship information? www.EduGuide.org ONLINE EDUGUIDE A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships I might qualify for. 1.
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Source: Christine MacDonald, The Detroit News.
Quiz: Do I Know How To Pay for College?
1. Have you thought about ways you can help make college more affordable? A. Yes. I’m taking some AP classes so I can get some college credits out of the way early, and I’m take challenging classes in my senior year so I don’t have to take any noncredit remedial classes in college. B. Well, I’m trying to keep my grades up so that I might get a scholarship or two, and I’m considering attending community college for a couple of years to keep costs down. C. What can I do? I’m assuming my parents have a sort of college fund for me. Have you completed the FAFSA? A. Yes. My parents and I attended a College Goal Sunday event and filed the FAFSA in plenty of time to meet both state and federal deadlines. B. Me? Aren’t my parents supposed to do that? I don’t understand all that financial stuff. C. What is FAFSA? Do you know where to find scholarship information? A. Yes, I’ve bookmarked several free scholarship search Web sites and check them frequently for scholarships I might qualify for. B. I stopped into the guidance counselor’s office to see if she had any information about scholarships, but didn't have much. I guess I should see if she has any new information. C. Scholarships? I’m not a brain or an athlete. Who’s going to give me free college money? Do you know what types of college student financial aid is available to help you pay for school? A. Yes. I have a pretty good idea of how much my parents have saved; I’ve completed the FAFSA; I’ve looked into scholarships and grants offered by community groups, my state, and the college I plan to attend; and I’ve done some research on student loans. B. I know there’s financial aid out there, but I’m not sure what I qualify for. I think I could get a student loan, but I’m not really sure how to do that. It’s very confusing. C. I keep hoping my folks have a nice college fund for me. Otherwise, we’d better win the lottery or I’m out of luck. College is just too expensive.
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If you answered mostly A's, you’re well on your way to paying for college. Get some ideas for managing your student loans the EduGuide ShortCut “Save Money on Your Student Loans for College: Six Tips that Help Keep Costs Down.” Learn how to keep your financial aid once you have it by reading the Article “Four Ways to Lose Your Financial Aid for School.” If you answered mostly B's, you have a general idea about college funding possibilities, but you need more information to proceed with confidence into the world of financial aid, loans, and scholarships. The ShortCuts “Choose the Right Student Loans for College: The Pros and Cons of Five Popular Options,” “Find Free College Money on the Web: The Top Ten Sites,” and “Ace the FAFSA: Tips and Lifesavers for Maximizing College Student Financial Aid” will get you started. If you answered mostly C's, you need everything in the EduGuide Help Me Pay for College: With or without My Parents' Checkbook. Start by reading the article “The Real Cost of College” to discover that a college education is more affordable than you think. And don’t the miss the ShortCut “Interview a Financial Aid Adviser about Financial Aid Requirements: A Dozen Questions Your Need To Ask.”
Find Free College Money on the Web
23 ONLINE EDUGUIDE www.EduGuide.org
The Top Ten Sites
the miss the ShortCut “Interview a Financial Aid Adviser about Financial Aid Requirements: A Dozen Questions Your Need To Ask.”
Find Free College Money on the Web
The Top Ten Sites
Scholarships provide millions of dollars of free college money to students that they don’t have to pay back. The Web makes searching for the right scholarship easy—but it helps to know where to look: 1. www.fafsa.ed.gov In addition to being the place to fill out the FAFSA online, this site provides worksheets, information on financial aid requirements and scholarships, a college savings calculator, and more. www.fastweb.com This is a thorough database featuring thousands of scholarships affiliated with Monster, an online career finder. Match your profile to scholarships to save time. www.scholarshipexperts.com Want to search 2.4 million scholarships worth $14 billion? This is the place. http://apps.collegeboard.com/cbsearch_ss/welcome.jsp The College Board (the folks who run the SATs) provides a search for $3 billion worth of scholarships. www.collegetoolkit.com This site features a searchable scholarship database as well as cool features such as “Can I Get In?” Type in your dream college and qualifications and this feature will calculate your chances of getting accepted. www.collegenet.com/mach25/app This allows you to search scholarships by keyword. Try using keywords that describe your interests and background. www.mappingyourfuture.org Run by the National Association of Student Financial Aid Administrators (NASFAA), this site lists loans, grants, scholarships, and workstudy programs with helpful links to other resources. www.finaid.org With information on financial aid and search tips, the site is a complement to www.fastweb.com www.scholarshiphelp.org If you're looking for a breakdown of the process—from writing scholarship application essays to rating scholarship search sites—look no further. www.collegegoalsundayusa.org Another site by NAFSAA where you can find links to College Goal Sunday sites by state. Go to College Goal Sunday and let the pros help you get it done, for free, on time.
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Content by Susan J. Demas, a 2006 Knight Foundation Fellow in Nonprofits Journalism.
Save Money on Your Student Loans for College
Six Tips That Help Keep Costs Down
www.EduGuide.org 24 ONLINE EDUGUIDE Finding your way through the maze of loan choices can be intimidating but it will pay off in the long run: the difference between the best loans and the worst can be thousands of dollars.
Content by Susan J. Demas, a 2006 Knight Foundation Fellow in Nonprofits Journalism.
Save Money on Your Student Loans for College
Six Tips That Help Keep Costs Down
Finding your way through the maze of loan choices can be intimidating but it will pay off in the long run: the difference between the best loans and the worst can be thousands of dollars. Use the following seven tips from the experts offer important student loan information to keep you out of trouble and on the path to saving money: 1. File the FAFSA federal aid form as soon as possible in February after you get your tax forms. The ShortCut “Ace the FAFSA: Tips and Lifesavers for Maximizing College Student Financial Aid” will show you how. For background on the benefits of filing the FAFSA, read “FAFSA Helps Families Access Four Types of Financial Aid for School.” Don’t borrow more than you really need. Your financial aid award letter will tell you how much loan aid you qualify for. Some students borrow less than the maximum to save themselves future payments; some borrow more. Before doing either, ask for advice from a financial aid counselor at your college. Note: Borrowing more than the standard maximum without the approval of your school’s financial aid office can put your other aid at risk. Investigate sponsored loans. Some colleges, states, employers, and scholarship groups provide special private loans at rates that are even better than some federal loans. But you’ll have to check scholarship directories to find them. A good place to start looking is the ShortCut “Find Free College Money on the Web: The Top Ten Sites.” Apply for loans accurately and on time, or you might not get the money before your first college payment is due. Also, if you’re applying for private loans or the federal PLUS loan, make sure there are no errors on your credit report that can affect the rates you’re eligible for. You can get your report free at Annual Credit Report.com. Consider career choices in your loan plan. Some careers will pay better than others and make it easier to make your monthly payments. And some service opportunities such as the Peace Corps, Teach for America, and the military may provide loan forgiveness programs for special public service. Compare loans. Knowing how much money you can borrow may seem like the most important piece of student loan information you need, but consider all these factors to save the most money in interest and fees over time: Interest rate. The lower the better, but also consider whether the rate is fixed (stays the same throughout the life of the loan) or variable (can increase or decrease based on federal interest rates and other factors) Interest accrual. Subsidized loans don’t begin to accrue interest until graduation, which saves a lot of money. Subsidized loans are awarded based on need, however. Fees. Some lenders charge processing fees that you either pay up front or that are taken out of the amount that you’ve borrowed. So make sure you know the exact dollar amount of your fees. Repayment options. For some loans, repayment starts sixty days after the first loan check is sent, but others can be delayed until months after graduation—or longer if the borrower encounters an economic hardship. Flexibility is good, but it comes at a price: find out how much this option adds to the loan amount. When comparing repayment options, be sure to ask the following questions: When does repayment start? Is the date flexible? How long will I have to pay off the loan? Are there any penalties for paying off the loan early? And are there any incentives for ontime payment?
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Source: Christine MacDonald, The Detroit News.
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Source: Christine MacDonald, The Detroit News.
Help My High School Senior Know How to Write a College Admissions Essay
College Essay Tips That Work
Use the following tips to help your teen learn how to write a college admissions essay. The essay doesn’t have to mention every high school success or extracurricular activity (the rest of the college application will do this). Instead, it should show admissions officials why your kid and their school are a great match.
Choose a Topic
If your teen is struggling to choose an essay topic, have him or her create a chart that lists one outstanding character trait, one interest, one ability, and one value. Next, have your teen write down a life experience that illustrated this trait/interest/ability/value. Finally, write a brief description of an outcome or a lesson learned. Here’s an example: Trait/Interest/ Example from Life Ability/Value Loyalty Outcome/Lesson Learned
I stuck by my best I learned that being a good friend comes at a cost: friend when she driving my friend to rehab meant I missed rehearsals injured her knee and lost the lead in the senior play, but it was worth it to help a friend.
Completing this chart should give your teen four good essay topics to choose from.
Connect with the College
In the essay, make sure your teen connects his or her talents and passions to a program or focus of the college (review the college brochure or Web site for ideas). If, for example, the college has a strong tradition of community outreach and your teen has just completed a servicelearning project, work that information into the essay. Remember: the purpose of the college essay is to convince the admissions folks that your teen and their school are a perfect match.
Draft the Essay
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Match the essay’s structure to the topic. Traditional essay form—with an introduction, body, and conclusion—works well for an essay that defends a position (for example, “The U.S. should never negotiate with terrorists”). Story, or narrative, form is very effective in describing a personal experience (for instance, how a teacher changed your life). “Show” rather than “tell,” by using specific examples and concrete language (words that describe things you can see, hear, touch, feel, and smell). Use facts to prove an assertion or support an opinion. Keep the writing focused. If the essay seems to drift into a different subject area, it may be that your teen would rather write on that topic instead.
Revise and Proofread
Have your teen read the draft aloud to you. Can you name the main idea and point of view? Does the first sentence grab your attention? Is there a conclusion and does it summarize the important points? l Keep an eye out for unnecessary words. For example, replace “in the modern world of today,” with “today” and shorten “because of the fact that” to “because.” Edit out clichés like “in the blink of an eye” or “in the heat of the moment.” l After your teen has revised the draft, make sure he or she proofreads it for spelling, grammar, and punctuation errors. Then www.EduGuide.org ONLINE EDUGUIDE proofread the revised draft yourself by reading it aloud. Take your time; some errors can be tough to spot. Don’t expect a computer’s spelling and grammar check software to catch all the mistakes. It won’t. l
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Have your teen read the draft aloud to you. Can you name the main idea and point of view? Does the first sentence grab your attention? Is there a conclusion and does it summarize the important points? Keep an eye out for unnecessary words. For example, replace “in the modern world of today,” with “today” and shorten “because of the fact that” to “because.” Edit out clichés like “in the blink of an eye” or “in the heat of the moment.” After your teen has revised the draft, make sure he or she proofreads it for spelling, grammar, and punctuation errors. Then proofread the revised draft yourself by reading it aloud. Take your time; some errors can be tough to spot. Don’t expect a computer’s spelling and grammar check software to catch all the mistakes. It won’t.
Sources: essayedge.com/college/essayadvice/course collegeboard.com/student/apply/essayskills The College Application Essay by Sarah Myers McGinty
Saving for College: How Are Three Families Doing It?
Lisamarie Sanders
Experts estimate that the price tag for today’s kindergartener to attend four years of college will be between $50,000 and $300,000. Right now colleges and taxpayers cover some of the cost, but the average family still pays about seventy percent through loans and direct payments. Poor families pay even less. Here’s how three families are saving for college. India Rose from Rapidan, Virginia, is the mother of four children from one to seven years old. She doesn’t think she saves a lot, but she adds to her children’s college funds what she can when she can. “It’s hard because you have to take care of your family’s needs now, but you also have to take care of their future,” she explains. India is also using the UPromise program to add to her children’s accounts. Kevin Karplus of Santa Cruz, California, chose his state’s 529 savings plan for his son. “I wanted to be able to accumulate a reasonable amount of money in a taxadvantaged way with relatively low risk and little need for active management,” he says. He set up an automatic payroll deduction to meet his savings goal. Carl Peters from Allentown, Pennsylvania, picked his state’s 529 prepaid tuition plan for his three children. “We didn’t go to college,” explains Carl, “but we want to make sure our kids have that option.” He adds that the regular monthly payment contract helps him keep on track. What advice do these families have for others? They all agree on one thing: start early. “But even if you’re too late to start early, start anyway,” advises Rose. "Try using your old daycare dollars." Although most of us won’t be able to foot the entire bill, saving now will do three things. It will tell your kids and everyone else that you’re betting on their future. It will also
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give your child more opportunities and cut the number of years that you and your child will be paying back student loans.
The returns on your investment will be worth it. College graduates make an average of a million dollars more during their careers than their peers who have only a high school diploma. Both two and fouryear degrees open doors to good jobs that are closed to kids whose education ended in high school.
Lisamarie Sanders is a Virginia elementary teacher who worked previously with the U.S. Department of Education. She has two children in elementary school.
27 ONLINE EDUGUIDE www.EduGuide.org
collegeboard.com/student/apply/essayskills The College Application Essay by Sarah Myers McGinty
Saving for College: How Are Three Families Doing It?
Lisamarie Sanders
Experts estimate that the price tag for today’s kindergartener to attend four years of college will be between $50,000 and $300,000. Right now colleges and taxpayers cover some of the cost, but the average family still pays about seventy percent through loans and direct payments. Poor families pay even less. Here’s how three families are saving for college. India Rose from Rapidan, Virginia, is the mother of four children from one to seven years old. She doesn’t think she saves a lot, but she adds to her children’s college funds what she can when she can. “It’s hard because you have to take care of your family’s needs now, but you also have to take care of their future,” she explains. India is also using the UPromise program to add to her children’s accounts. Kevin Karplus of Santa Cruz, California, chose his state’s 529 savings plan for his son. “I wanted to be able to accumulate a reasonable amount of money in a taxadvantaged way with relatively low risk and little need for active management,” he says. He set up an automatic payroll deduction to meet his savings goal. Carl Peters from Allentown, Pennsylvania, picked his state’s 529 prepaid tuition plan for his three children. “We didn’t go to college,” explains Carl, “but we want to make sure our kids have that option.” He adds that the regular monthly payment contract helps him keep on track. What advice do these families have for others? They all agree on one thing: start early. “But even if you’re too late to start early, start anyway,” advises Rose. "Try using your old daycare dollars." Although most of us won’t be able to foot the entire bill, saving now will do three things. It will tell your kids and everyone else that you’re betting on their future. It will also
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give your child more opportunities and cut the number of years that you and your child will be paying back student loans.
The returns on your investment will be worth it. College graduates make an average of a million dollars more during their careers than their peers who have only a high school diploma. Both two and fouryear degrees open doors to good jobs that are closed to kids whose education ended in high school.
Lisamarie Sanders is a Virginia elementary teacher who worked previously with the U.S. Department of Education. She has two children in elementary school.
Really Achieving Your Dreams: Take the Right High School Courses
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Christine MacDonald
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Really Achieving Your Dreams: Take the Right High School Courses
Christine MacDonald
Cutting down the rising cost of college isn’t as easy as clipping coupons or waiting for an “everything must go” sale. Everyone is worried about financial aid for school. But there are smart ways to save, starting as early as the freshman year of high school. Your parents can worry about financial aid for students later. By taking a tough high school course load, you’ll avoid paying for nocredit remedial college classes later. You’ll also be more likely to end up in Advanced Placement courses in high school that could land you college credit and help you with high school scholarships before you ever move into the dorms. And it can help with really achieving your dreams. I missed that lesson during my high school senior year 11 years ago when I skipped a fourth year of math for what I thought were more interesting creative writing classes. For my choice, I spent my first semester of college in a refresher math class and still feel the sting whenever I get my monthly college loan bill.
High School Counts
Emily Sole shares my pain. The 18yearold from Traverse City, Michigan, handed over more than $600 this fall to Wayne State University for a nocredit remedial math class. She blames her high school sophomore year when she had an Algebra II class full of her best friends. “I goofed off,” she admits. She took Geometry her junior year but passed on math her senior year because she wanted to take more classes that matched her interests, primarily business. Now as a college freshman, studying business administration, she regrets the move. She spends five hours a week in a computer lab going over basics she should have mastered already. “High school counts, and you don’t really think about that all the time,” she said.
Unprepared College Freshmen
Colleges now routinely test all students upon arrival to gauge how prepared they are for college level work. According to a report published by the American Diploma Project and Achieve, Inc. in 2005, 70 percent of college instructors report spending some or a significant amount of time reviewing material that should have been learned in high school. The same professors estimate that half of the incoming freshman class is unprepared for collegelevel math and writing. Why? College freshmen who feel unprepared for college admit that they weren't challenged by their high school program. Taking "bird courses" may seem like a great idea in the tenth grade but if you're planning to attend college, you'll regret that choice, for many reasons, later on. 29
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Why? College freshmen who feel unprepared for college admit that they weren't challenged by their high school program. Taking "bird courses" may seem like a great idea in the tenth grade but if you're planning to attend college, you'll regret that choice, for many reasons, later on.
Smart Goal Setting
Planning ahead to maximize your course schedule in high school does pay off. Jim Levasseur, an 18yearold from Mount Carmel, Illinios, knows that for a fact. His six Advanced Placement classes got him into Bowling Green University this fall as a sophomore with 33 credits. His freshman year would have cost an estimated $21,700 in outofstate tuition and room and board at the school. The savings didn’t really affect Levasseur though. As it turns out, students who take more challenging courses also improve their test scores on college entrance exams by an average of seven percent. So because of his high scores on the PSAT, the National Merit Scholarship Corporation is paying his way through school.
A Big Head Start on Goals to Set
But he said the financial savings isn’t the most important benefit of earning college credit early. Having the work behind him lets him take classes he is more interested in earlier, including more in his major of computer animation. It also gave him a first crack at registering for courses as a sophomore honors student, practically guaranteeing he wouldn’t get shut out of any classes. Most importantly, it calmed his nerves about making the transition to college. “It’s sort of like a big head start,” Levasseur said. “You are confident in your ability to do work at the college level.” His advice to high schoolers today: “Work as hard as you can without running yourself into the ground,” Levasseur said. “You always have to be thinking about where you are headed.”
Christine MacDonald covers education for The Detroit News.
FAFSA Helps Families Access the Four Types of Financial Aid for School
EduGuide Staff
Paying for college can be expensive. But about two of every three students get financial aid for school to help cover the cost. Even more would get financial aid for students if they only filled out the FAFSA student loans form. The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of education financial aid. Unfortunately, about onethird of college students fail to complete it. That means that as many as 1.5 million qualified students threw away a Federal Pell grant worth up to $4,050 a year just because they never got around to submitting a form.
www.EduGuide.org 30 ONLINE EDUGUIDE Why don’t more families do the FAFSA? Some are intimidated by the IRSstyle questions. Thankfully, colleges and universities provide free help completing the FAFSA— just ask. Other families think they make too much money to qualify for needbased aid but don’t
Christine MacDonald covers education for The Detroit News.
FAFSA Helps Families Access the Four Types of Financial Aid for School
EduGuide Staff
Paying for college can be expensive. But about two of every three students get financial aid for school to help cover the cost. Even more would get financial aid for students if they only filled out the FAFSA student loans form. The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of education financial aid. Unfortunately, about onethird of college students fail to complete it. That means that as many as 1.5 million qualified students threw away a Federal Pell grant worth up to $4,050 a year just because they never got around to submitting a form. Why don’t more families do the FAFSA? Some are intimidated by the IRSstyle questions. Thankfully, colleges and universities provide free help completing the FAFSA— just ask. Other families think they make too much money to qualify for needbased aid but don’t realize they need the FAFSA to qualify for almost any student loans, jobs, or scholarships. Still other families put it off because they’re not sure their kids will go to college. For example, they miss the Michigan FAFSA priority date to qualify for some state scholarships and never get around to completing the form to get other aid. Sadly, they don’t realize that everyone should do the FAFSA as soon as possible after January 1 of their senior year, even if they’re not yet sure they want to go to college. The FAFSA is free and puts you in line to qualify for hundreds, even thousands, of dollars. All you need to do is click on FAFSA. Financial aid comes from the federal government, state government, private donors and colleges. It takes four basic forms: 1. Grants. Needbased aid that you don’t have to pay back; two examples include the Federal Pell Grant which pays between $400 and $4,050 per year and the Federal Supplemental Educational Opportunity Grant which pays between $100 and $4,000. 2. Scholarships. Merit aid that you don’t have to pay back; it’s based on your achievements, affiliations, and sometimes your needs too. A range of businesses, civic organizations, places of worshiop, professional associations, foundations and colleges offer scholarships. You can search for them free on Web sites like Fastweb.com and CollegeAnswer.com. 3. Work Study. Jobs supported with federal funds that help students pay for college while doing minimum wage or better work on campus or in the community 4. Student Loans. Money for college that you’ll need to pay back with interest after you leave college; the three federal loan programs include Perkins, Stafford, and PLUS.
Family Ideas: Start Saving for College in Kindergarten
EduGuide Staff
www.EduGuide.org 31 ONLINE EDUGUIDE Your child will not be college age for years. But the earlier you begin a college savings plan, the better. Here are five different,
include Perkins, Stafford, and PLUS.
Family Ideas: Start Saving for College in Kindergarten
EduGuide Staff
Your child will not be college age for years. But the earlier you begin a college savings plan, the better. Here are five different, inexpensive family ideas to start a taxfree college savings account. Don't rely on financial aid loans and hope for high school scholarships!
529 Savings Plans
Pick which state has the best plan for you, but most offer tax and other benefits for using your home state’s plan. In Michigan, EduGuide's home state, for instance, families can begin with as little as $25 in the Michigan Education Savings Program (MESP).
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Pro: Contributions are eligible for state tax deductions. In Michigan, it's a $10,000 tax deduction ($5,000 for single tax filers). Use 529 funds at any accredited postsecondary college in the U.S. and at many schools abroad. Con: The plan’s tax free status is up for renewal by Congress in 2010. Account value may fluctuate depending on investment options.
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529 Prepaid Plans
Pay tuition now; lock in today’s rates. Most states have prepaid plans. Example: With the Florida PrePaid College Plan you can buy your 5yearold two years of tuition at community college (a lump sum of $4, 193) with $37.14 paid every month until she starts college. Cash up front for four years of tuition and mandatory fees at a public university is $12, 494.40. Four years of room and board adds another $18, 890 and the tuition differential fee adds $4,265.04.
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Pro: Guarantees against rising tuition costs. Monthly payment contract will motivate you to save. Can be used to pay for tuition outofstate and private colleges. Some states offer tax benefits associated with these plans. Con: State residency requirements. Some plans have restrictions on transfers to another child. The money is tied up until the child starts college.
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Education Savings Account
Open an account with any bank, broker or mutual fund, like retirement savings.
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Pro: Can be used for college or any educational expenses K12 – including books, private school tuition, computers, tutors. Lets you pick your own investments. Con: Limited to $2,000/year per child. Tax benefits phase out for some families making more than $95,000. May tempt you to spend before child’s college years.
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Cash Back
Buy selected goods with a registered credit card and get 1 to 10% cash back for college savings account. Upromise, EdExpress.com, Babymint.com and MBNA Fidelity credit cards offer such programs. Pro: Save while you spend: Average annual savings range from $50 to $500. Registered friends can direct their earnings to your account. www.EduGuide.org ONLINE EDUGUIDE
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Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into
Buy selected goods with a registered credit card and get 1 to 10% cash back for college savings account. Upromise, EdExpress.com, Babymint.com and MBNA Fidelity credit cards offer such programs.
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Pro: Save while you spend: Average annual savings range from $50 to $500. Registered friends can direct their earnings to your account. Con: Limited dollar value. Fewer investment options. May tempt you to chase rebates and eat up savings you could put into your child’s account.
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Roth and Traditional IRAS
Tax laws now let you take money from these retirement accounts to pay for college without penalty. You can open IRA accounts at any bank or investment agency.
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Pro: Some experts recommend saving for retirement or a home before saving for college; this allows you to save for both and choose how to spend it later. Lets you pick your own investments. Con: Limited to $5,000/year per person if you're 49 or younger in 2008. Some restrictions apply. May confuse your retirement planning; your retirement fund may not attract contributions from Grandpa.
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Three Family Ideas for College Savings
EduGuide Staff
Three Family Ideas for College Savings:
1. 2. 3. Start early. When your child is 5, start saving $100/month for 13 years. With 8% annual return, that’s $27,000. Waiting until the child is 12 requires investing $240/month over 7 years to get the same amount. Invest often. Commit now to set aside $5, $50 or $250/month. Or have it withdrawn from your paycheck. Send refunds, rebates, loose change to the fund. Ask relatives to contribute to the college fund instead of buying toys. Don’t wait. Earmarking even $25 makes a difference. Telling your kids will inspire them. Ask them to help and drop a dime in their college jar for every dollar they get. It will teach them to work towards a goal.
Will Saving Now Cut My Child’s Financial Aid Later?
A little for some student loans for college, but you’re still better off having money than not, just as you’re better off earning wages than not, despite income taxes. Using today’s aid formulas, a low or mediumincome family could lose up to $5 in aid for every $100 extra they saved in any of these tools. But higherincome families probably won’t qualify for needbased aid anyway.
Top Ten Questions to Ask College Student Financial Aid Advisors
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Christine MacDonald
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planning; your retirement fund may not attract contributions from Grandpa.
Three Family Ideas for College Savings
EduGuide Staff
Three Family Ideas for College Savings:
1. 2. 3. Start early. When your child is 5, start saving $100/month for 13 years. With 8% annual return, that’s $27,000. Waiting until the child is 12 requires investing $240/month over 7 years to get the same amount. Invest often. Commit now to set aside $5, $50 or $250/month. Or have it withdrawn from your paycheck. Send refunds, rebates, loose change to the fund. Ask relatives to contribute to the college fund instead of buying toys. Don’t wait. Earmarking even $25 makes a difference. Telling your kids will inspire them. Ask them to help and drop a dime in their college jar for every dollar they get. It will teach them to work towards a goal.
Will Saving Now Cut My Child’s Financial Aid Later?
A little for some student loans for college, but you’re still better off having money than not, just as you’re better off earning wages than not, despite income taxes. Using today’s aid formulas, a low or mediumincome family could lose up to $5 in aid for every $100 extra they saved in any of these tools. But higherincome families probably won’t qualify for needbased aid anyway.
Top Ten Questions to Ask College Student Financial Aid Advisors
Christine MacDonald
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What is the total annual cost of attendance? Are there any extra costs that I might need to plan for? What is the average student debt of the school’s graduates? What careerrelated or high school scholarships might I be eligible for? What sources do you know of for reducedcost sponsored financial aid loans? What financial aid floans that I’m eligible for have the lowest interest rates and fees? When would I start paying back the financial aid loans and how flexible is the repayment plan? Will the school reduce my grant aid or loans because of private scholarships? What would cause me to lose my financial aid for school? What kind of loan forgiveness programs are available depending on the degree I graduate with? Would the student loans for college I’m considering be eligible for loan forgiveness? Based on borrowing this much, what will I owe at the time I graduate? What will my monthly payments look like?
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they saved in any of these tools. But higherincome families probably won’t qualify for needbased aid anyway.
Top Ten Questions to Ask College Student Financial Aid Advisors
Christine MacDonald
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What is the total annual cost of attendance? Are there any extra costs that I might need to plan for? What is the average student debt of the school’s graduates? What careerrelated or high school scholarships might I be eligible for? What sources do you know of for reducedcost sponsored financial aid loans? What financial aid floans that I’m eligible for have the lowest interest rates and fees? When would I start paying back the financial aid loans and how flexible is the repayment plan? Will the school reduce my grant aid or loans because of private scholarships? What would cause me to lose my financial aid for school? What kind of loan forgiveness programs are available depending on the degree I graduate with? Would the student loans for college I’m considering be eligible for loan forgiveness? Based on borrowing this much, what will I owe at the time I graduate? What will my monthly payments look like?
Write a National History Day Essay for High School Scholarships or Cash Prizes!
EduGuide Staff
Calling all students! Calling all students! How would you like the chance to win a fullride scholarship for college, or any of 20 other prizes? Enter the National History day contest, and you're eligible for their high school scholarships! National History Day is a challenging and rewarding program for American students. For more than twentyfive years the program has promoted the learning of history in the high school and middle school classroom with a combination of creativity and scholarship. "The National History Day contest is the best kept secret in history education," said Mark Robinson, development and public relations coordinator for the event. NHD is a yearlong education program that engages students in grades 612 in the discovery and interpretation of historical topics. Students produce dramatic performances, exhibits, documentaries and research papers. The projects are then evaluated at local, state, and national competitions.
How Do I Get Involved?
To get involved with NHD, students choose a history topic related to NHD's annual theme. They conduct, research, and create a presentation to enter in competition. If NHD is not already in their school, students should ask teachers and administrators for help in joining the competition.
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Is NHD Only a Contest?
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Based on borrowing this much, what will I owe at the time I graduate? What will my monthly payments look like?
Write a National History Day Essay for High School Scholarships or Cash Prizes!
EduGuide Staff
Calling all students! Calling all students! How would you like the chance to win a fullride scholarship for college, or any of 20 other prizes? Enter the National History day contest, and you're eligible for their high school scholarships! National History Day is a challenging and rewarding program for American students. For more than twentyfive years the program has promoted the learning of history in the high school and middle school classroom with a combination of creativity and scholarship. "The National History Day contest is the best kept secret in history education," said Mark Robinson, development and public relations coordinator for the event. NHD is a yearlong education program that engages students in grades 612 in the discovery and interpretation of historical topics. Students produce dramatic performances, exhibits, documentaries and research papers. The projects are then evaluated at local, state, and national competitions.
How Do I Get Involved?
To get involved with NHD, students choose a history topic related to NHD's annual theme. They conduct, research, and create a presentation to enter in competition. If NHD is not already in their school, students should ask teachers and administrators for help in joining the competition.
Is NHD Only a Contest?
No. Because history is happening every day, the NHD program provides teachers with tools and curricula to encourage student enthusiasm for history. Students can enter the contest by submitting work they have done while studying history at any timeeven outside of school. "Preparing for History Day is like putting together a huge jigsaw puzzle," said Leslie Odelber, a parent in Korbel, California. "Each piece of information uncovered brings a clearer understanding of the whole."
Is NHD Just for Kids?
One of the best things about the NHD program is that it involves the whole family! In exploring their own culture and community, students learn more about their family. One student did a project on her family's tomato industry and its history. Another researched his grandfather's role on the railroad. "We are very thankful for the quest for discovery that NHD has instilled in our children, as well as ourselves. The thrill of learning is indeed contagious," said Angela and John Butvich, parents in Corona, California. "The NHD contest is not about winning a prize; the real reward is learning." For more information and competition dates, see the National History Day Web site, or call 3013149739.
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real reward is learning." For more information and competition dates, see the National History Day Web site, or call 3013149739.
Saving for College: Three Rules
Thinking about saving for college? These three rules will help you focus on what counts. 1. Start early. The earlier you start, the more your small seed will grow. Start saving one hundred dollars a month when your child is in fifth grade for nine years with an eight percent annual return, and you’ve got almost $15,750—about half of which is from return on your investment. Invest often. Big projects are done best piece by piece. Commit now to set aside five dollars, fifty dollars, or two hundred fifty dollars a month. Better yet, have that amount taken out of your paycheck. Send refunds, rebates, and loose change straight to the college fund. Once you’ve started, you’ll be surprised how fast your savings can grow when you let others know that instead of buying your child a toy that will soon be broken, gifts can be made directly to the college fund. Don’t wait. Yes, you should consider saving for retirement or a home a higher priority. But even if all you can set aside right now is twentyfive dollars, pick up the phone or hop online and do it today. Telling your kids that they’ve got money set aside for college will give them something to pin their dreams to. Asking them to contribute something to the pot will double their commitment to realizing that dream while teaching them to save. Ask them to drop a dime in their college jar for every dollar they get. No matter how little it adds up to, it will teach them to work toward a goal.
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Will saving now cut my child’s financial aid later? A little for some people, but you’re still better off having money than not—just like you’re better off earning wages than not despite income taxes. Using today’s aid formulas, a low or middleincome family could lose up to five dollars in aid for every one hundred dollars extra that they save in many financialaid tools. But higher income families should save all they can because they probably won’t qualify for needbased aid anyway.
Saving for College: It's Never Too Late to Reduce Need for Financial Aid Loans
Chastity Pratt
It’s never too late to start saving for college, even if your child is already in middle school. Whatever can be squirreled away today will offset rising college costs and financial aid loans tomorrow. Even parents who don’t have much money to spare can start a fund. Many states allow you to buy a few semesters or even a few years’ worth of college tuition at today’s lockedin rates under plans, such as with the Michigan Education Trust. Or you can open an account, such as the Michigan Education Savings Program, for as little as $25 to cover tuition and other expenses. If you’re starting late, the key is to keep saving, even if you can’t save enough to cover all college costs by the time your child graduates. At the very least, every penny saved now will reduce loan payments down the line and lessen the amount of financial aid for school that is needed.
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save all they can because they probably won’t qualify for needbased aid anyway.
Saving for College: It's Never Too Late to Reduce Need for Financial Aid Loans
Chastity Pratt
It’s never too late to start saving for college, even if your child is already in middle school. Whatever can be squirreled away today will offset rising college costs and financial aid loans tomorrow. Even parents who don’t have much money to spare can start a fund. Many states allow you to buy a few semesters or even a few years’ worth of college tuition at today’s lockedin rates under plans, such as with the Michigan Education Trust. Or you can open an account, such as the Michigan Education Savings Program, for as little as $25 to cover tuition and other expenses. If you’re starting late, the key is to keep saving, even if you can’t save enough to cover all college costs by the time your child graduates. At the very least, every penny saved now will reduce loan payments down the line and lessen the amount of financial aid for school that is needed.
Savings Help Reduce Need for Financial Aid Loans
Terry Gallagher of Ann Arbor said he knows he will not have enough in his two children’s MESP accounts to cover all of their college costs. His daughter, Mary, is in sixth grade and his son just entered high school. Mary’s college account was opened shortly after her birth. By the time she graduates, it will be at about $20,000. The family income is already stretched because his wife just went back to college. “It’s not enough. [But] it’s not the only option,” Gallagher said. “The MESP is just to give us a little more cushion.” Gallagher said the college fund money is drawn directly from his bank account every month. He likes it because it makes the payments invisible and painless. Another advantage is that other family members have been able to contribute to the fund. The children can also drop a few dollars into their accounts.
Financial Aid for Students is Common
There are always options to offset small savings. More than two in three students receive financial aid in college. Loans are a typical route for middle income families. “A financial planner reminded us that you can always borrow for college,” Gallagher said. “People are not afraid to borrow money for a car. College is something you only pay for once, usually.” As children get older, some costs such as day care disappear; that money can be put into a college plan, Gallagher suggested. “The more you can save, however you do it, the better,” he said.
Chastity Pratt has two young children and covers education for the Detroit Free Press.
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Chastity Pratt has two young children and covers education for the Detroit Free Press.
Getting By in College: Budgets and Avoidance Spending
EduGuide Staff
Here's what research says about your college budget.
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Know the conditions of your financial aid. Financial aid counselors see it all the time: a student loses financial aid and has no idea why. Know that your parents are not receiving any information about your college life once you are eighteen. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether in the form of loans, scholarships, or grants — comes with strings attached. You have to show adequate progress toward your degree. You should maintain at least a 2.0 GPA overall — not just in your major — and you must finish at least seventy percent of the classes you take. (Check for specific guidelines at your college; some schools require more than these minimums.) In other words, go to class. Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike, or walk. Between payments, insurance, and gas prices, a car will drain your bank account and create pressure you don’t need. If possible, work no more than fifteen to twenty hours a week. About seventy five percent of fulltime students work at least some of the time. But research shows that working more than twenty hours a week impedes your academic progress. Working too much can force you to drop or fail classes, which just costs you more money when you have to take them again. You also should try to find a job on or near campus so that you don't spend a lot of time getting back and forth. Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university, or point you toward federal work /study programs. They will help you remember that, for the most part, you have to apply for financial aid every year. Sometimes they can even find scholarships that have extra funds available. Aim for a full load of classes. Parttime students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on fulltime enrollment. Embrace poverty. Being poor is part of the drill for most students. Acquire a taste for macaroni and cheese, make fun of your old clothes, and consider penny pinching part of the complete college experience. If you must withdraw from classes, do so the right way. Sometimes life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missinginaction approach and simply stop attending classes. Not withdrawing formally can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Learn to budget. Loan or grant funds arrive early in the school year. Be sure to use the money carefully throughout the term. Understand what the loan or grant covers and what it does not cover. Keep the amount you borrow as low as possible; graduating with a fifty thousand dollar debt will affect your life choices for years. Avoid credit cards. Talk about a money pit. Just because you can get a credit card doesn't mean that should get one. It’s better to learn to live without shopping jaunts and midnight pizzas than to find yourself in debt. If you do get a credit card for emergency expenses and to establish credit find one with a very low credit limit and pay off the balance promptly every month.
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emergency expenses and to establish credit find one with a very low credit limit and pay off the balance promptly every month.
Getting By in College: What Students Say
EduGuide Staff
What students say about keeping a budget in college: My one bit of advice here is do not overwork yourself. Less than 10 to 15 hours a week is ideal in a college situation. Or, try to find a job where you can do homework on the job. Also, because of coops (cooperative education) being rather abundant, it won’t be long until a real job is offered — so quitting the crappier job isn’t that bad of an idea. — Christopher Those credit cards are a tricky thing. I had a plan, though. I only kept one credit card at a time. And since my credit was good, I’d get offers in the mail all the time for 0 percent interest for a year. Well, I’d rack up the card and then I’d pay it off before the year and then, sometimes, I’d apply for another card with the same offer. It worked well in college, but my mom told me I shouldn’t do that forever because it makes your credit look shady. So, now I’ll just manage my money better — since I have some. — Chris I worked on the weekends at my father’s business because I had to. Only work if you have to. If you don’t, spend your time getting involved with on campus organizations and/or extracurricular activities. The more you do, the more you have to put on your graduate school application or résumé. — Shawn I had about nine loans. If I had to do it over again, I would’ve made some payments on them while I was still in school. They do make that available to you. They’ll give you a payment book and you can pay $25 a month, $100, whatever you can pay. I did get a book, but I never got around to paying any money. I was too busy goofing off and being in my early 20s. I thought, ‘I’ll do it later,’ and now it’s later. Now I’m stuck with a $19,000 bill that I’ll be paying on until I’m 33. — Renee Credit cards? Don’t bother. They will lead to your doom. I never had one, but I watched my roommate run up five grand pretty quickly. —Adam In grad school, I worked three jobs: one at a bar, an office job, and TA (teaching assistant) for statistics. I’d say the working definitely took away from the learning. But I’m not in debt at all. It’s the tradeoff. I got three As and a B (from the prof that hated me) this semester, but I landed a sweet job in Houston. The (campus) jobs made me able to interact with a lot of different people, which I think will help me in life more than reading a journal article will. — Andrea During my first year at school, I continued my high school job, which was working at a theater…. At first, I was allowed to do homework while sitting in the booth starting movies. However, the job required me to work nights until 2 or 3 in the morning many times, and my boss didn’t enjoy me bringing homework to the job. So very quickly after that, I quit. — Christopher 40 ONLINE EDUGUIDE
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Ugh – working is not fun, but because I am a wife and a mom, I have to put in my share. I used to work fulltime, go to school fulltime
During my first year at school, I continued my high school job, which was working at a theater…. At first, I was allowed to do homework while sitting in the booth starting movies. However, the job required me to work nights until 2 or 3 in the morning many times, and my boss didn’t enjoy me bringing homework to the job. So very quickly after that, I quit. — Christopher Ugh – working is not fun, but because I am a wife and a mom, I have to put in my share. I used to work fulltime, go to school fulltime and be a mom, and that wasn’t working out for me. My grades fell behind and my workload was getting to be too much. I was exhausted when I would get home. Only do what your body can handle, or everything around you will suffer. When I am in school, I work parttime; and then when I am not, I go back fulltime. Being a waitress has allowed me to have that kind of a schedule. I work a lot of nights, so I am home with my baby during the day. I do my homework when he naps and when my husband gets home, that is his time with our son. — Nicole
FAFSA Student Loans Can Max Your College Cash
Michigan Guaranty Agency
Paying for college can be expensive. But about 2in3 students who apply get college student financial aid to help pay for it. Even more would get student loans for college if they only filled out the FAFSA form. What is FAFSA? The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of aid. Unfortunately, about half of college students fail to complete it. That means that as many as 850,000 qualified students throw away several thousand dollars’ worth of free money a year just because they never got around to submitting a form.
Why don’t more families make sure to fill out the FAFSA?
Some are put off by the kind of questions the FAFSA asks. Other people assume they make too much money to qualify for needbased financial aid for school. But they don’t realize that they still need the FAFSA to qualify for almost any FAFSA student loans, jobs or scholarships. The good news? Colleges and universities help you complete the FAFSA student aid form for free. All you have to do is ask. Finally, plenty of students and their families delay applying for college student financial aid because they aren’t sure they’ll even go to college. But this has a price: while they’re trying to decide, they miss their best shot at qualifying for state scholarships. When students apply late, they can miss out on funds they would have received had they applied on time. So the main message here is that every student should fill out the FAFSA as soon as possible after January 1 of their senior year, no matter what their plans are. It’s free and it puts you in line to get hundreds, even thousands of dollars. All you need to do is visit the FAFSA website.
Financial aid comes in four flavors
Financial aid comes from the federal government, state government, private donors, and colleges and universities. It takes four basic forms: 1.
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Grants. This is needbased aid that you don’t have to pay back. Two examples include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant; both pay from several hundred to several thousand dollars.
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— Nicole
FAFSA Student Loans Can Max Your College Cash
Michigan Guaranty Agency
Paying for college can be expensive. But about 2in3 students who apply get college student financial aid to help pay for it. Even more would get student loans for college if they only filled out the FAFSA form. What is FAFSA? The FAFSA, which stands for Free Application for Federal Student Aid, is required to receive almost any form of aid. Unfortunately, about half of college students fail to complete it. That means that as many as 850,000 qualified students throw away several thousand dollars’ worth of free money a year just because they never got around to submitting a form.
Why don’t more families make sure to fill out the FAFSA?
Some are put off by the kind of questions the FAFSA asks. Other people assume they make too much money to qualify for needbased financial aid for school. But they don’t realize that they still need the FAFSA to qualify for almost any FAFSA student loans, jobs or scholarships. The good news? Colleges and universities help you complete the FAFSA student aid form for free. All you have to do is ask. Finally, plenty of students and their families delay applying for college student financial aid because they aren’t sure they’ll even go to college. But this has a price: while they’re trying to decide, they miss their best shot at qualifying for state scholarships. When students apply late, they can miss out on funds they would have received had they applied on time. So the main message here is that every student should fill out the FAFSA as soon as possible after January 1 of their senior year, no matter what their plans are. It’s free and it puts you in line to get hundreds, even thousands of dollars. All you need to do is visit the FAFSA website.
Financial aid comes in four flavors
Financial aid comes from the federal government, state government, private donors, and colleges and universities. It takes four basic forms: 1. Grants. This is needbased aid that you don’t have to pay back. Two examples include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant; both pay from several hundred to several thousand dollars. 2. Scholarships. This is meritbased aid that you don’t have to pay back. It’s based on your achievements, affiliations and sometimes your financial needs, too. A range of businesses, civic organizations, churches and synagogues, professional associations, foundations and colleges offer scholarships. You can search for them free on sites like www.collegeboard.com and www.ThomsonPeterson.com.
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3. WorkStudy. This is an arrangement that allows students to help pay for college while doing minimum wage or better work on www.EduGuide.org ONLINE EDUGUIDE campus or in the community.
3. WorkStudy. This is an arrangement that allows students to help pay for college while doing minimum wage or better work on campus or in the community. 4. Student Loans. This is money for college that you’ll need to pay back with interest after you leave college. The three federal loan programs include Perkins, Stafford and PLUS.
This article is provided by the Michigan Guaranty Agency.
Advice for Teenagers: Be Prepared for Extra College Expenses
Susan J. Demas
Congratulations! You're off to college with your grants, financial aid loans, and scholarships to boot. You have a dorm room, board plan, and calling plan. Think you've got it all covered? Think again.
Financial Advice for Students
Liz Luckinbill, 26, knew she’d need a computer. But the Oakland Community College student didn’t know she’d be shelling out $1,200 for a laptop plus another $80 for the battery. “It really adds up,” said Luckinbill, who’s set to finish up her degree in cosmetology management in April at the Bloomfield Hills, Michigan school. For Caleb Miner, a 21yearold senior at Michigan State University, traveling back to New York City to visit friends and family really adds up. After he’s done paying outofstate tuition, it can be hard to scrounge up any extra cash. “I usually spend half my summers at home and half working here,” said Miner, a human biology major at the Big Ten school. And Julia Oswald, 21, couldn’t believe her bill for books, pens, and a calculator—even though she’s an accounting major at Northwood University in Midland, Michigan.
Have a Plan to Go with Student Loans for College
Yes, the freshman year of college often provides a rude financial awakening. But Oswald has some sound advice for students and parents: “The more personal planning, the better. Have a plan.” That means taking a sweeping look at all your expenses. (EduGuide’s “College Costs Checklist” can help.) Sometimes it’s the necessities that add up, especially if you’re living offcampus—such as heat, water, sewer, laundry, and food. Utilities keep records on how much a tenant paid last year. Request that so you can plan your budget. Especially with rising energy costs, turn the thermostat down and don a sweater to save some green. Bargain shop and avoid eating out all the time. If you’re living on your own, there are a whole host of expenses, from dishes to couches to the ubiquitous trademark of college, the lava lamp. When you’re on a fixed budget, try to skip the frills and shop resale and discount stores.
Financial Aid for Students Might Help with Living Expenses
www.EduGuide.org 43 ONLINE EDUGUIDE Oswald works at Northwood’s financial aid office, and she says it’s usually the offcampus students who struggle the most. Her advice is to be as detail oriented as possible and budget “everything ahead of time.” Check to see if your loans will cover living
This article is provided by the Michigan Guaranty Agency.
Advice for Teenagers: Be Prepared for Extra College Expenses
Susan J. Demas
Congratulations! You're off to college with your grants, financial aid loans, and scholarships to boot. You have a dorm room, board plan, and calling plan. Think you've got it all covered? Think again.
Financial Advice for Students
Liz Luckinbill, 26, knew she’d need a computer. But the Oakland Community College student didn’t know she’d be shelling out $1,200 for a laptop plus another $80 for the battery. “It really adds up,” said Luckinbill, who’s set to finish up her degree in cosmetology management in April at the Bloomfield Hills, Michigan school. For Caleb Miner, a 21yearold senior at Michigan State University, traveling back to New York City to visit friends and family really adds up. After he’s done paying outofstate tuition, it can be hard to scrounge up any extra cash. “I usually spend half my summers at home and half working here,” said Miner, a human biology major at the Big Ten school. And Julia Oswald, 21, couldn’t believe her bill for books, pens, and a calculator—even though she’s an accounting major at Northwood University in Midland, Michigan.
Have a Plan to Go with Student Loans for College
Yes, the freshman year of college often provides a rude financial awakening. But Oswald has some sound advice for students and parents: “The more personal planning, the better. Have a plan.” That means taking a sweeping look at all your expenses. (EduGuide’s “College Costs Checklist” can help.) Sometimes it’s the necessities that add up, especially if you’re living offcampus—such as heat, water, sewer, laundry, and food. Utilities keep records on how much a tenant paid last year. Request that so you can plan your budget. Especially with rising energy costs, turn the thermostat down and don a sweater to save some green. Bargain shop and avoid eating out all the time. If you’re living on your own, there are a whole host of expenses, from dishes to couches to the ubiquitous trademark of college, the lava lamp. When you’re on a fixed budget, try to skip the frills and shop resale and discount stores.
Financial Aid for Students Might Help with Living Expenses
Oswald works at Northwood’s financial aid office, and she says it’s usually the offcampus students who struggle the most. Her advice is to be as detail oriented as possible and budget “everything ahead of time.” Check to see if your loans will cover living expenses. Schoolrelated expenses can take their toll. Lab, computer, and student activity fees often get tacked on to your tab, so don’t just budget for tuition. As for books, shop around at different stores and buy used. And the Internet can cut your bill in half. Parking tickets are a college rite of passage—but they don’t have to be. Commuting and working students often have to drive to school, so remember to bring plenty of change or find parking garages. “I was so happy when I finally figured out where the garages were,” said Luckinbill. “I saved money and it saved me from running out all the time on breaks.” Another tip: Walk or ride your bike whenever you can to keep more money in your bank account. Your journey through college can be filled with pitfalls of unexpected expenses. But with some careful advance planning and a few words of wisdom from students who have been there before, you won’t get sidetracked. www.EduGuide.org 44 ONLINE EDUGUIDE
were,” said Luckinbill. “I saved money and it saved me from running out all the time on breaks.” Another tip: Walk or ride your bike whenever you can to keep more money in your bank account. Your journey through college can be filled with pitfalls of unexpected expenses. But with some careful advance planning and a few words of wisdom from students who have been there before, you won’t get sidetracked.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Money Management 101: Smart Goal Setting
Kathleen Hicks
Getting through college requires smart goal setting and money management. You may not be a finance major, but all college students need to learn to be in charge of their own budget. Money management was not my primary focus in high school, but as graduation approached and I became more excited at the prospect of being on my own, my parents brought me back to reality. They informed me that I would pay for many of my own expenses. They would take care of the big stuff (tuition, room and board, airline tickets home from school) but I would have to pay for everything else. Books, clothes, music, movies, pizza for study breaks and even the groceries I’d need at school, would all have to come out of my pocket. Budgeting my own money would soon become very real. The challenge for me was learning how to handle money so I’d have everything I need and still be able to see a movie once in a while. The trick was identifying the traps that keep you from saving that money. I’ve come up with lists of the biggest money wasters at school and the ways I keep my savings account from dwindling. I’ve also broken down my spending in a typical month so you can see how I manage to get by on a limited budget.
Goals To Set When Maintaining a Limited Budget
Big Money Wasters Alcohol – A lot of students leave for college excited at the prospect of no parents and neverending parties. Alcohol is really expensive, however, and if you’re not careful, you’ll blow through your money in a matter of months. Even just hitting the bars and going to parties on Wednesday, Friday, and Saturday night can cost more than $30 a week. In a 9month school year that could add up to more than $1000! Food – OK, college dining halls aren’t exactly known for dishing out fine cuisine. And on Saturday night, a slice of pizza might sound really good. That’s fine every so often. Limit these late night food runs to once a week; while $2 for a slice of pizza seems cheap, it can take away from money needed for the essentials. Online shopping – This can hurt, especially for girls. It’s OK to surf the web for shoes while on a study break. Buying one or two pairs of $95 shoes that you “can’t live without,” however, adds up fast. If you have to shop, be careful not to go overboard. Be realistic about what you’ll wear and only buy that. Coffee – It makes many a late night study session possible, but it can kill your savings. Many students don’t see it as a huge expense, and in moderation, it can work. A $4 cappuccino once in a while is fine as a treat or to boost yourself during exam week; buying one four days a week, however, will cost a latte (groan). Spending $12$15 a week on coffee means around $60 a month, or almost $240 a semester. Credit Cards – These are so dangerous. It’s easy for a college student to get one, and even easier to use. Unless you pay the entire www.EduGuide.org 45 ONLINE EDUGUIDE balance each month, however, you’ll have to deal with hefty interest rates. Stick to a debit card; it’s easier to track how much you’re
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Money Management 101: Smart Goal Setting
Kathleen Hicks
Getting through college requires smart goal setting and money management. You may not be a finance major, but all college students need to learn to be in charge of their own budget. Money management was not my primary focus in high school, but as graduation approached and I became more excited at the prospect of being on my own, my parents brought me back to reality. They informed me that I would pay for many of my own expenses. They would take care of the big stuff (tuition, room and board, airline tickets home from school) but I would have to pay for everything else. Books, clothes, music, movies, pizza for study breaks and even the groceries I’d need at school, would all have to come out of my pocket. Budgeting my own money would soon become very real. The challenge for me was learning how to handle money so I’d have everything I need and still be able to see a movie once in a while. The trick was identifying the traps that keep you from saving that money. I’ve come up with lists of the biggest money wasters at school and the ways I keep my savings account from dwindling. I’ve also broken down my spending in a typical month so you can see how I manage to get by on a limited budget.
Goals To Set When Maintaining a Limited Budget
Big Money Wasters Alcohol – A lot of students leave for college excited at the prospect of no parents and neverending parties. Alcohol is really expensive, however, and if you’re not careful, you’ll blow through your money in a matter of months. Even just hitting the bars and going to parties on Wednesday, Friday, and Saturday night can cost more than $30 a week. In a 9month school year that could add up to more than $1000! Food – OK, college dining halls aren’t exactly known for dishing out fine cuisine. And on Saturday night, a slice of pizza might sound really good. That’s fine every so often. Limit these late night food runs to once a week; while $2 for a slice of pizza seems cheap, it can take away from money needed for the essentials. Online shopping – This can hurt, especially for girls. It’s OK to surf the web for shoes while on a study break. Buying one or two pairs of $95 shoes that you “can’t live without,” however, adds up fast. If you have to shop, be careful not to go overboard. Be realistic about what you’ll wear and only buy that. Coffee – It makes many a late night study session possible, but it can kill your savings. Many students don’t see it as a huge expense, and in moderation, it can work. A $4 cappuccino once in a while is fine as a treat or to boost yourself during exam week; buying one four days a week, however, will cost a latte (groan). Spending $12$15 a week on coffee means around $60 a month, or almost $240 a semester. Credit Cards – These are so dangerous. It’s easy for a college student to get one, and even easier to use. Unless you pay the entire balance each month, however, you’ll have to deal with hefty interest rates. Stick to a debit card; it’s easier to track how much you’re spending, and since the money comes out of your account right away, it’ll remind you to hold off on expensive purchases. Keeping Your Savings Account Affloat Spend only when necessary – Many high school graduates receive gifts of money from friends and family. Instead of spending it throughout the summer on movies or lunch dates, set it aside for the end of the summer. When it comes time to buy books, clothes, and school supplies, you’ll be glad you saved.
www.EduGuide.org 46 ONLINE EDUGUIDE Get a job – If your parents aren’t regularly sending you money, then a job is the way to go. College campuses have tons of job opportunities specifically for students. I worked in a coffee shop the summer before I left for school, so the day I arrived there, I
Keeping Your Savings Account Affloat Spend only when necessary – Many high school graduates receive gifts of money from friends and family. Instead of spending it throughout the summer on movies or lunch dates, set it aside for the end of the summer. When it comes time to buy books, clothes, and school supplies, you’ll be glad you saved. Get a job – If your parents aren’t regularly sending you money, then a job is the way to go. College campuses have tons of job opportunities specifically for students. I worked in a coffee shop the summer before I left for school, so the day I arrived there, I contacted the schoolowned café in town and got a job there. Check the school’s employment section on the website; it will often list jobs for students, and may let you apply online. Keep track of where your money goes – It’s easy to forget how much you’ve spent, and I’ve had the icky experience of being surprised by my bank statement. Use online banking, so you can manage your money without having to go to a bank and can check transcripts of all your purchases. Watch out for overdraft fees, too—they’re an unnecessary and preventable waste of money. Use cash –On Friday afternoon, go to an ATM and withdraw about $30, depending upon any plans you may have for the weekend. Spend wisely, and when you’re out of cash, spend the rest of the weekend studying. When you actually have to hand money to a cashier, you’re more likely to make worthwhile purchases. Set a spending limit – For my first semester, I decided not to let my savings account dip below $1000. I started the semester with $1,900 and ended it with about $1100. Money Spent in a Typical Month Everybody has different needs and expenses, but this is how I spend in a typical month.
l l l l l
Groceries: $90 (for snacks like microwave popcorn, crackers, yogurt, apples, string cheese, a couple of frozen dinners, bottled water and a few household items.) School supplies: $15 (folders rip, pens disappear, you run out of staples...) Gifts: $30 (friends and family love tshirts and mugs from your school) Fun stuff: $40 (for a movie, dinner out or gas money for an outoftown roadtrip) Transportation: $50 (for cab fare to the airport if you go to school far from home. like me. Other expenses might include bike maintenance, carpooling, parking fees, train tickets etc.)
Grand Total: $175 a month *This doesn’t include emergency money, and students with cars will have to factor in the cost of gas and maintenance. Also, special occasions, like Christmas shopping, will require some thinking ahead. I figure clothes and books are really oncepersemester things, so I don’t count them as typical spending. No matter how you cut it, college is expensive. But it’s a great time to learn how to live frugally and responsibly. For a successful college experience, every college student needs to know the basics of money management.
Kathleen Hicks is a freshman, studying English and French (not finance) at Colgate University in Hamilton, NY.
How I Paid for College: Thinking Outside the Box
Susan J. Demas
Sometimes it all comes down to answering the right question.
www.EduGuide.org 47 ONLINE EDUGUIDE Thirty years ago, Rich Schalter was struggling to make ends meet while finishing his accounting degree at Michigan Technological University. He sat down with the financial aid officer, who asked him how much he needed to get by that semester.
Kathleen Hicks is a freshman, studying English and French (not finance) at Colgate University in Hamilton, NY.
How I Paid for College: Thinking Outside the Box
Susan J. Demas
Sometimes it all comes down to answering the right question. Thirty years ago, Rich Schalter was struggling to make ends meet while finishing his accounting degree at Michigan Technological University. He sat down with the financial aid officer, who asked him how much he needed to get by that semester. “I don’t know. A couple hundred dollars,” Schalter mumbled. “I don’t think you understood me. So I’ll ask you one more time how much you need,” the officer told him. A light went on for Schalter. He said he needed $1,500. “We have $946.28,” the officer informed him. That taught Schalter the value of listening – something that not only helped him pay for his last year of college, but has proved invaluable in his role as president of Spartan Chassis, a multimilliondollar corporation in Charlotte, Mich. “I would have missed out on a lot of money,” Schalter said with a laugh. Another lesson Schalter learned: It’s all about the personal touch. Even though the Internet now offers a wealth of resources for students, he firmly believes there’s no substitute for facetoface interaction. From his time as a freshman, Schalter hung around the financial aid office. He wanted to be the first person officials thought of if a new scholarship was founded or a student left midsemester, freeing up additional aid. Persistence paid off. And he gained the added bonus of developing longterm relationships with university staff, which even helped him land his first accounting job. That’s something Kurt Reed can relate to. As a Central Michigan University transfer student, Reed faced an alltoocommon problem. “My mother made just enough money that my financial aid package was terrible,” he said with a smile. After tangling with a financial aid officer (whom he nicknamed “The Gatekeeper”), Reed saw an opening – literally. The director’s door was open and he walked right in. “I am a firm believer that you go to the top,” said Reed, a 1992 graduate of the School of Broadcast & Cinematic Arts. “I managed to get him to laugh and he agreed to meet with me.” The meeting changed his life. Not only did Reed get his own financial aid situation straightened out, but he found a “mission.” The director showed him the ropes and soon Reed was helping other students with their own college funding crises. Today, Reed works as assistant director of Michigan State University’s GEAR UP program aimed at helping lowincome students. His college days also taught him another important maxim: Creativity counts. Loans and grants only went so far, so Reed became a dormroom entrepreneur. His first venture was as a hairstylist for students of color, since Mount Pleasant, Mich., did not have any ethnic salons at the time. “I saw an opportunity,” Reed said. He also started a DJ operation for campus parties and sold sweatsuits and shoes wholesale, often flying to California and New York to find the latest styles. It was “very lucrative,” Reed said. www.EduGuide.org 48 ONLINE EDUGUIDE
color, since Mount Pleasant, Mich., did not have any ethnic salons at the time. “I saw an opportunity,” Reed said. He also started a DJ operation for campus parties and sold sweatsuits and shoes wholesale, often flying to California and New York to find the latest styles. It was “very lucrative,” Reed said. Another budding businessman was Ed Sarpolus, a 1976 Aquinas College graduate in psychology and philosophy. Sarpolus started out doing standard work/study fare at the Grand Rapids, Mich., school such as shoveling snow, cleaning dorm showers and working as a security guard. He developed a reputation as a jack of all trades, and paid for one semester by detailing an antique baby grand piano. He also started his own business ventures, photographing events and throwing dinner parties in the house he rented with friends. But it was an internal research job for the college that sparked his true passion. Sarpolus learned about data collection, polling, drawing samples, analyzing data and crosstabs. “It was love at first sight,” Sarpolus said. Soon the undergraduate was a player in state and local politics, doing polling for the congressional seat vacated by Gerald Ford when he assumed the vice presidency. Sarpolus also won a casino gambling study with the state of Michigan. “My girlfriend posed as my secretary for the meeting,” he recalled, laughing. Today, Sarpolus is vice president for the EPICMRA polling firm in Lansing, Mich., and holds the title of Michigan’s most quoted pollster. Proof that paying for college can really pay off.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Seven Steps to Saving Money on Student Loans for College
Christine MacDonald
Looking for money for college? Expect about half of it to come in the form of loans. The average Class of 2006 graduate owed $21,100, according to the Project on Student Debt. “Student loans for college are not bad if you are borrowing with a sense of how much you are taking out and a sense of the monthly payments,”said Rick Shipman, Michigan State University’s director of financial aid. “The problem is if you are borrowing in an irresponsible way just like a credit card. You could easily get yourself in trouble.” Finding your way through the maze of loan choices can be more intimidating than an AP history exam. But it can pay off. The difference between the best loans and the worst can save you thousands of dollars in the long run. Consider it the scholarship you give yourself. Here are seven steps from the experts to keep you out of trouble and on the path to saving money. 1. File the FAFSA student aid form as soon as possible in February after you get your tax forms. Even if you don’t think you’ll get much cash, students are often surprised, and you’ll still need the FAFSA to access better deals on loans. Plus the sooner you file it, the sooner you get in line for firstcome, firstserve aid programs. In most states, you can get free help completing the FAFSA at College Goal Sunday. 2. Don’t borrow more than you really need. Borrowing to finance your education can be a good investment but not if you’re using the www.EduGuide.org 49 ONLINE EDUGUIDE money for a new iPod or a spring break trip. Your college’s financial aid award letter will tell you how much loan aid you qualify for. But many students borrow less than the maximum to save themselves future payments. Some also seek loans above the maximum, but
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
Seven Steps to Saving Money on Student Loans for College
Christine MacDonald
Looking for money for college? Expect about half of it to come in the form of loans. The average Class of 2006 graduate owed $21,100, according to the Project on Student Debt. “Student loans for college are not bad if you are borrowing with a sense of how much you are taking out and a sense of the monthly payments,”said Rick Shipman, Michigan State University’s director of financial aid. “The problem is if you are borrowing in an irresponsible way just like a credit card. You could easily get yourself in trouble.” Finding your way through the maze of loan choices can be more intimidating than an AP history exam. But it can pay off. The difference between the best loans and the worst can save you thousands of dollars in the long run. Consider it the scholarship you give yourself. Here are seven steps from the experts to keep you out of trouble and on the path to saving money. 1. File the FAFSA student aid form as soon as possible in February after you get your tax forms. Even if you don’t think you’ll get much cash, students are often surprised, and you’ll still need the FAFSA to access better deals on loans. Plus the sooner you file it, the sooner you get in line for firstcome, firstserve aid programs. In most states, you can get free help completing the FAFSA at College Goal Sunday. 2. Don’t borrow more than you really need. Borrowing to finance your education can be a good investment but not if you’re using the money for a new iPod or a spring break trip. Your college’s financial aid award letter will tell you how much loan aid you qualify for. But many students borrow less than the maximum to save themselves future payments. Some also seek loans above the maximum, but before doing so get the advice of a financial aid counselor on your options. That’s because borrowing more than the standard maximum without your financial aid office’s approval can put your other aid at risk. 3. Investigate sponsored loans. Some colleges, states, employers and scholarship groups provide special private loans at rates that are even better than some federal loans. But you’ll have to ask around and check scholarship directories to find them. 4. Compare loans. The easiest way to compare is based on the lowest fixed Interest rate, but other terms are important too. (See 4 Factors to Compare Loans and 5 Types of Loans for more info.) Usually federal loans, starting with Perkins, are the best deal. Private loans are more expensive. But sponsored loans can sometimes be better than both. 5. Compare federal loan providers. If you attend a college that participates in the Federal Family Education Loan Program (FFELP), you’ll also be able to choose which financial institution provides your federal loans. The basic terms are the same as Direct Federal Loans, but some institutions offer better benefits than others, such as more flexible repayment plans or rewards for ontime payments. Many of these same institutions also offer private loans on different terms. 6. Apply for loans accurately and on time or you might not get the money before your first college payment is due. Also if you’re applying for private loans or the federal PLUS loan, make sure there are no errors on your credit report, which can affect what rates you’re eligible for. You can get your report free at Annual Credit Report.com. 7. Consider career choices in your loan plan. Some careers will pay better than others and make it easier to make your monthly payments. And some jobs such as the Peace Corps, the military, and teaching may provide loan forgiveness programs for special public service.
Christine MacDonald has been a reporter for 10 years and recently paid off her own student loans.
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Christine MacDonald has been a reporter for 10 years and recently paid off her own student loans.
Four Factors to Compare Financial Aid, Loans
Christine MacDonald
1. Interest rate. The lower the better, but also consider whether the rate is fixed or variable. Today, federal loan interest rates are fixed, but many private student loans for college have variable interest rates that can increase at a later date. 2. Subsidization. Subsidized financial aid loans don’t accrue interest until graduation, which saves a lot of money. Students have to qualify for subsidized loans based on need, however. 3. Fees. Some lenders charge processing fees that you either pay up front or that are taken out of the amount that you’ve borrowed. So make sure you know how much fees would cost you and how much you’ll actually receive from the loan. 4. Repayment Options. For some student loans for college, repayment starts 60 days after the first loan check is sent, but others can be delayed until months after graduation or longer if the borrower encounters an economic hardship. Flexibility is good, but find out how much it adds to the loan amount before you use it. Also ask: “How long will I have to pay off the loan? Are there any penalties for paying off the loan early? And are there any incentives for ontime payment?"
Christine MacDonald is an education reporter. She recently paid off her student loans, nearly ten years after graduation.
Five Types of Student Loans for College
Christine MacDonald
Here's a quick review of the five types of student loans for college with pros and cons for each type of financial aid for school. Perkins Best federal government needbased loan for students. Pros: Lowest fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student financial aid loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need. Stafford Most common federal student loan. Pros: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan. PLUS Most common federal parent loan. Also used by grad students. Pros: Fixed interest rate. Can cover full cost of attendance minus other aid. 51 ONLINE EDUGUIDE Cons: Subject to credit approval. Not as good a deal as Perkins or Stafford.
www.EduGuide.org
Christine MacDonald has been a reporter for 10 years and recently paid off her own student loans.
Four Factors to Compare Financial Aid, Loans
Christine MacDonald
1. Interest rate. The lower the better, but also consider whether the rate is fixed or variable. Today, federal loan interest rates are fixed, but many private student loans for college have variable interest rates that can increase at a later date. 2. Subsidization. Subsidized financial aid loans don’t accrue interest until graduation, which saves a lot of money. Students have to qualify for subsidized loans based on need, however. 3. Fees. Some lenders charge processing fees that you either pay up front or that are taken out of the amount that you’ve borrowed. So make sure you know how much fees would cost you and how much you’ll actually receive from the loan. 4. Repayment Options. For some student loans for college, repayment starts 60 days after the first loan check is sent, but others can be delayed until months after graduation or longer if the borrower encounters an economic hardship. Flexibility is good, but find out how much it adds to the loan amount before you use it. Also ask: “How long will I have to pay off the loan? Are there any penalties for paying off the loan early? And are there any incentives for ontime payment?"
Christine MacDonald is an education reporter. She recently paid off her student loans, nearly ten years after graduation.
Five Types of Student Loans for College
Christine MacDonald
Here's a quick review of the five types of student loans for college with pros and cons for each type of financial aid for school. Perkins Best federal government needbased loan for students. Pros: Lowest fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student financial aid loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need. Stafford Most common federal student loan. Pros: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan. PLUS Most common federal parent loan. Also used by grad students. Pros: Fixed interest rate. Can cover full cost of attendance minus other aid. Cons: Subject to credit approval. Not as good a deal as Perkins or Stafford.
52 ONLINE EDUGUIDE Sponsored Provided by some colleges, states, employers and scholarship groups. www.EduGuide.org
Christine MacDonald is an education reporter. She recently paid off her student loans, nearly ten years after graduation.
Five Types of Student Loans for College
Christine MacDonald
Here's a quick review of the five types of student loans for college with pros and cons for each type of financial aid for school. Perkins Best federal government needbased loan for students. Pros: Lowest fixed interest rate. No fees. Credit history not a factor unless you are in default on prior student financial aid loans. Subsidized, so interest doesn’t start until after graduation. Con: Funding limited to those with greatest need. Stafford Most common federal student loan. Pros: Fixed interest rate better than PLUS loan. Can be subsidized depending on need. Repayment is more flexible for disability or job loss than most private loans. Con: Limit on how much can be borrowed using this loan. PLUS Most common federal parent loan. Also used by grad students. Pros: Fixed interest rate. Can cover full cost of attendance minus other aid. Cons: Subject to credit approval. Not as good a deal as Perkins or Stafford. Sponsored Provided by some colleges, states, employers and scholarship groups. Pro: Can be better deal than some federal loans. Con: Harder to find. Ask around and use scholarship directories. Private Provided by banks and credit unions independent of federal system. Pro: May cover expenses beyond aid award. Cons: Subject to credit approval. Read the fine print — some private loans may compete with PLUS loans but some are way more expensive than federal loans.
Christine MacDonald is an education reporter who recently paid off her student loans.
College Costs Checklist
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OK, so you know there’s tuition. But what are some other college costs that can sneak up on you? As you plan your college budget,
Christine MacDonald is an education reporter who recently paid off her student loans.
College Costs Checklist
Susan J. Demas
OK, so you know there’s tuition. But what are some other college costs that can sneak up on you? As you plan your college budget, use this list as a guide: $____ Housing. Whether you live in a dorm, apartment or fraternity or sorority house, this will be a big chunk of your budget. Having a roommate (or four) can bring the cost down, but make sure you're all on the lease so you're not legally stuck with the whole tab. $____ Food. You have a lot of options: an allinclusive board plan through the college, buy your own meals or some combination. Try to hit the grocery store for healthier, less costly staples, not expensive convenience marts. And remember, living off pizza can still add up! $____ Transportation. Keeping up with car payments and rising gas prices can really add up, but this is a necessary expense for many working and commuting students. Look at taking the city and/or campus bus to alleviate some of the costs and hoof it or ride your bike when you can. $____ Parking. Few students can make it through four years of college without a collection of parking tickets as souvenirs. Carry lots of change with you – an extra quarter is worth avoiding a $20 ticket. Better yet, map out where parking garages are – they’re usually a better deal. And you don’t have to run out in the middle of class to plug the meter! $____ Fees. Check your college statements carefully and you’ll probably notice activity, computer and miscellaneous fees. Usually, these are separate from tuition, so students don’t know they have to shell out an extra $50 to $300 per semester. $____ Books. There’s no way around this one if you don’t want to flunk your classes, but it does pay to shop around. Students can pay upward of $500 per semester, so comparison shop between bookstores and browse online. Don’t be afraid to go with used texts – you can save more than 50 percent sometimes. $____ Utilities. If you don’t live on campus, or even if you live in family housing, chances are you’ll have to pay for at least one of these: electric, gas, water, phone, cable, Internet and sewer. Look for apartments where some or all utilities are included. Think about if you really need ESPN or HBO and if you can get by with going online when you’re on campus. $____ Computers. This is a costly purchase, ranging from $500 to $1,500. If you can feasibly research and write your papers at computer labs, you may be able to skip this one. But increasingly, as students take online classes and more courses incorporate online elements, a personal computer is becoming a necessity. Don’t forget the additional costs of a printer, ink cartridges and paper. The good news is many colleges offer discounted computers and software. And you can use these for years to come in the working world. $____ Housewares. So you’re living on your own. If you’re in the dorms, you might not need more than an extra blanket, toiletries and a reading lamp. But if you’re offcampus, you could have to buy everything from a bed to utensils to a vacuum cleaner. See if you can get a furnished apartment. If not, hit resale shops like Goodwill and watch for sales at discount stores. Don’t worry about interior design – mismatched décor is all the rage in college. $____ Travel. Don’t forget to budget how much it costs to go back home, whether it’s gas for your car, or a train, bus or plane ticket. Especially for outofstate students, this can make a dent in your bank account. $____ School supplies. It’s amazing how much you can pay for a few pens, highlighters, notebooks and folders at the student bookstore. Don’t lop those on for convenience – go to an office supply or discount store offcampus and cut your bill in half. $____ Lab fees. Students in certain fields, especially sciences and engineering, will have additional costs. Usually, they’re minimal, perhaps $25 per class. But like anything, it can add up. www.EduGuide.org 54 ONLINE EDUGUIDE $____Clothes. Luckily, college is not a fashion show. In fact, it’s one of the few places where you regularly encounter people clad in
bookstore. Don’t lop those on for convenience – go to an office supply or discount store offcampus and cut your bill in half. $____ Lab fees. Students in certain fields, especially sciences and engineering, will have additional costs. Usually, they’re minimal, perhaps $25 per class. But like anything, it can add up. $____Clothes. Luckily, college is not a fashion show. In fact, it’s one of the few places where you regularly encounter people clad in pajamas. Make sure you have appropriate attire for work, but don’t spend a lot of your budget dressing to impress in the classroom. $____ Laundry. Don’t skimp on this one, no matter how tempting. Washing and drying a load is only about $2.50. Of course, you can always bring the bag back to your folks when you visit, as a college cliché. $____ Entertainment. College campuses and towns typically offer a dizzying array of options in music, movies, art, parties, sports and restaurants – that’s part of the fun! But it’s also a great way to drain your wallet. The bar scene is especially good for busting a student budget, so spend wisely.
Susan J. Demas is a 2006 Knight Foundation fellow in nonprofits journalism and contributing editor to EduGuide.
Six Ways to Keep More of Your Money
EduGuide Staff
1. Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike or walk. Between payments, maintenance, insurance and gas prices, a car will drain your bank account and create pressure you don’t need. 2. If possible, work no more than 15 hours per week. Most fulltime students work at least some of the time. But the benefits outweigh the costs at some point. Research shows that students who work more than 15 hours often begin falling behind academically. Those who work more than 20 hours are at much higher risk of dropping or failing classes — which, of course, just costs more money when they have to be taken again. 3. Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university or point you toward federal work/study programs. They will help you remember that for the most part, you have to apply for financial aid every year. Sometimes they can even point you to scholarships that have extra funds available. 4. Aim for a full load of classes. Parttime students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on fulltime enrollment. 5. If you must withdraw from classes, do so the right way. Sometimes, life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missinginaction approach and just stop attending classes. It can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Not all places have the same rules. 6. Avoid credit cards. Talk about a money pit. The fact that you can get a credit card doesn’t mean you should get one. It’s better to learn to live without shopping jaunts and midnight meals at Denny’s than to find yourself in debt. If you need a card consider a debit card that just draws money from your account. If you do go for a credit card, get one with a low credit limit like $500, to keep you out of trouble, and pay the full amount of the bill, not just the minimum.
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Susan J. Demas is a 2006 Knight Foundation fellow in nonprofits journalism and contributing editor to EduGuide.
Six Ways to Keep More of Your Money
EduGuide Staff
1. Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike or walk. Between payments, maintenance, insurance and gas prices, a car will drain your bank account and create pressure you don’t need. 2. If possible, work no more than 15 hours per week. Most fulltime students work at least some of the time. But the benefits outweigh the costs at some point. Research shows that students who work more than 15 hours often begin falling behind academically. Those who work more than 20 hours are at much higher risk of dropping or failing classes — which, of course, just costs more money when they have to be taken again. 3. Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university or point you toward federal work/study programs. They will help you remember that for the most part, you have to apply for financial aid every year. Sometimes they can even point you to scholarships that have extra funds available. 4. Aim for a full load of classes. Parttime students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on fulltime enrollment. 5. If you must withdraw from classes, do so the right way. Sometimes, life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missinginaction approach and just stop attending classes. It can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Not all places have the same rules. 6. Avoid credit cards. Talk about a money pit. The fact that you can get a credit card doesn’t mean you should get one. It’s better to learn to live without shopping jaunts and midnight meals at Denny’s than to find yourself in debt. If you need a card consider a debit card that just draws money from your account. If you do go for a credit card, get one with a low credit limit like $500, to keep you out of trouble, and pay the full amount of the bill, not just the minimum.
4 Ways NOT to Lose Your Financial Aid
EduGuide Staff
Financial aid counselors see it all the time: A student loses her financial aid and has no idea why. Know that your parents are not receiving any notices about your college life once you are 18. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether it is loans, scholarships or grants — comes with strings attached. Here are the most common ways for students to lose their financial aid.
1. Not showing adequate progress toward your degree. 56 ONLINE EDUGUIDE
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2. Not maintaining at least a 2.0 GPA overall — not just in your major. For academic scholarships, the standards can be even higher.
trouble, and pay the full amount of the bill, not just the minimum.
4 Ways NOT to Lose Your Financial Aid
EduGuide Staff
Financial aid counselors see it all the time: A student loses her financial aid and has no idea why. Know that your parents are not receiving any notices about your college life once you are 18. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether it is loans, scholarships or grants — comes with strings attached. Here are the most common ways for students to lose their financial aid.
1. Not showing adequate progress toward your degree. 2. Not maintaining at least a 2.0 GPA overall — not just in your major. For academic scholarships, the standards can be even higher. 3. Not finishing at least 70 percent of the classes you take. 4. Not knowing all of the conditions of your aid. Some aid goes beyond these common minimums.
Top Five Strategies for Stretching Student Aid Dollars
Susan J. Demas
1. Search high and low. Talk to your school guidance counselor. The Internet is a wealth of information on loans, scholarships and grants. But this takes a lot of time, so start early—even in middle school. Zero in on what your strengths and unique characteristics are—academic performance, parents’ union membership, family income, ethnic background, family alumni status, etc. That will narrow down your search and help you net the most money. And keep searching during your college career. Things are always changing, which means new opportunities. Get personal. Get to know the folks in the college financial aid office and make sure they know you. They are your link to funding that comes in—sometimes unexpectedly in a new scholarship or if a student leaves midsemester. Make sure you are the first person they think of to help. Get a job or two. Working and going to school can be tough—there’s no doubt about it. But working students actually perform better than those who don’t have a job in college. Work during breaks and summers and sock away as much as you can.
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Get creative. Look offcampus for jobs, where they’re often better paying. Start your own business—many successful startups have their roots in college dorm rooms. If you have to work multiple jobs during the school year, try to pick at least one position related to your major. Think about student work programs that allow you to study geysers at Yellowstone for some handson experience. This will help build your resume, as well as your bank account. www.EduGuide.org ONLINE EDUGUIDE 5. Eat more Ramen. Thrifty is nifty when it comes to a college student budget. Do whatever you can to cut corners on spending—
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4. Not knowing all of the conditions of your aid. Some aid goes beyond these common minimums.
Top Five Strategies for Stretching Student Aid Dollars
Susan J. Demas
1. Search high and low. Talk to your school guidance counselor. The Internet is a wealth of information on loans, scholarships and grants. But this takes a lot of time, so start early—even in middle school. Zero in on what your strengths and unique characteristics are—academic performance, parents’ union membership, family income, ethnic background, family alumni status, etc. That will narrow down your search and help you net the most money. And keep searching during your college career. Things are always changing, which means new opportunities. Get personal. Get to know the folks in the college financial aid office and make sure they know you. They are your link to funding that comes in—sometimes unexpectedly in a new scholarship or if a student leaves midsemester. Make sure you are the first person they think of to help. Get a job or two. Working and going to school can be tough—there’s no doubt about it. But working students actually perform better than those who don’t have a job in college. Work during breaks and summers and sock away as much as you can. Get creative. Look offcampus for jobs, where they’re often better paying. Start your own business—many successful startups have their roots in college dorm rooms. If you have to work multiple jobs during the school year, try to pick at least one position related to your major. Think about student work programs that allow you to study geysers at Yellowstone for some handson experience. This will help build your resume, as well as your bank account. Eat more Ramen. Thrifty is nifty when it comes to a college student budget. Do whatever you can to cut corners on spending— clip coupons, ride your bike or walk, buy used books, don’t dine out, eat Ramen noodles (what would college be without them?). Every penny helps.
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When Is Disrespect a Sign of Something Serious?
Barbara Rickard
Your sweet baby has turned into a defiant teen, and you’re left wondering where the handbook for teenage discipline is. You ask yourself questions like these: Is there anything teens respect? Is there a trick when it comes to dealing with teenagers? Is this kind of aggression in children considered normal behavior? When is this disrespectful teenager's behavior going to end? Is disrespectful behavior normal? Sometimes. Is it acceptable? No. You can expect all defiant teens to be mouthy and grumpy sometimes. But how can you tell if your teen’s manners, or lack thereof, is “normal,” or if your kid has a more serious problem? Severe aggressive behavior in children can be a sign that your teen needs help from a professional. Here are ten warning signs that your teenager’s behavior may be cause for concern:
1. Your teen's behavior puts him or her or other family members in physical danger. www.EduGuide.org ONLINE EDUGUIDE 2. Your teen's behavior has become abnormal for her or him: sleeping too little or too long; hating what was once loved or loving what was once hated; avoiding friends or spending too much time with them.
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them?). Every penny helps.
When Is Disrespect a Sign of Something Serious?
Barbara Rickard
Your sweet baby has turned into a defiant teen, and you’re left wondering where the handbook for teenage discipline is. You ask yourself questions like these: Is there anything teens respect? Is there a trick when it comes to dealing with teenagers? Is this kind of aggression in children considered normal behavior? When is this disrespectful teenager's behavior going to end? Is disrespectful behavior normal? Sometimes. Is it acceptable? No. You can expect all defiant teens to be mouthy and grumpy sometimes. But how can you tell if your teen’s manners, or lack thereof, is “normal,” or if your kid has a more serious problem? Severe aggressive behavior in children can be a sign that your teen needs help from a professional. Here are ten warning signs that your teenager’s behavior may be cause for concern:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Your teen's behavior puts him or her or other family members in physical danger. Your teen's behavior has become abnormal for her or him: sleeping too little or too long; hating what was once loved or loving what was once hated; avoiding friends or spending too much time with them. Your teen is increasingly disrespectful, dishonest, or disobedient without any regard to the consequences. Your teen completely ignores or rebels against the family rules. Your teen makes outright or suggested threats of suicide, cuts or injures him or herself, or takes excessive risks (physical, sexual, or by drug/alcohol use). Your teen begins treating people or pets in a threatening manner. Physically harming animals is a sign of a serious problem. Your teen thinks he or she is the center of your family, disregarding the feelings, time, or belongings of other family members. Your teen has had months of counseling with little or no positive progress. Your teen refuses to do anything with the family. Your teen can’t stay away from friends who have destructive behavior and attitudes.
If your teenager has been exhibiting at least five of the behaviors described above for more than six months, contact a school counselor or principal, a teacher your child respects, your family doctor, or a professional therapist. If you have tried counseling and it isn’t working, ask for a referral to a different counselor. Trust your instincts—no one knows your child better than you do. If you need to, get help for both of you.
Sources: sciencenewsforkids.org www.4parents.gov www.askdrsears.com kidshealth.org
Barbara Rickard holds a B.S. from Michigan Technological University and is the mother of three children in elementary, middle, and high school. She has volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
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volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
Financial Aid for Students: Coping with the Credit Crunch
Susan J. Demas
The current credit crunch has hit college student financial aid hard, with some institutions shutting off the lending spigot and leaving families high and dry. “It’s weighing more on students’ minds now than before. They listen to the news; they hear their parents struggling,” said Carol Mountjoy, assistant director of outreach for Western Michigan University. “The economy affects students emotionally and mentally.” There’s a perfect financial storm right now. Despite the fact that Congress this fall authorized $700 billion to bail out banks on Wall Street, many still aren’t lending. That especially hurts students who have private loans, disproportionately impacting those at private colleges. Experts expect that even when banks do start lending in the future, terms will be stricter and rates will be higher. But the economic news gets worse. There’s the foreclosure crisis. Unemployment is on the rise. Health care costs are soaring. Many families are already struggling with major financial issues in the recession on top of putting their kids through college. While people used to be able to borrow against their homes for financial aid for school, that’s largely a thing of the past: home values are declining and the credit crisis has stopped the practice. The bottom line is it’s a scary world out there right now for college students, who are struggling to get loans and facing a shrinking job market. Here’s the good news. If you get your financial aid through federal loans and grants, you shouldn’t be affected by the financial meltdown. Still, Mountjoy has seen more students turn to credit cards to make ends meet, and they’re racking up debt quickly. Instead of acting rashly and taking on risk, students should go straight to their financial aid office. When students run out of money and consider dropping out, the WMU staff is “proactive,” Mountjoy says, doing whatever it can to keep kids in school. Financial aid staff may be able to help identify untapped scholarship money or help students secure loans with reputable lenders. Another new option emerging is peertopeer loans. When banks won’t lend, people ask families and friends to do so. The new twist on this is that there are services, like greennote.com, that take care of the legal paperwork. Lending money can tear friendships and families apart, so more people are turning to services to make the process official and protect the lender. The financial picture is changing rapidly. Most economists believe the recession will get worse and continue to impact college students. The best strategy is to keep on top of your finances and in touch with financial aid officials at school. They’re on top of the latest changes and are there to help.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
FERPA: Family Educational Rights Privacy Act
Barbara Rickard
Many parents pride themselves on keeping up with their kids' grades in high school. Some even take advantage of programs that let them monitor their child’s grades online. If you are keeping close tabs on your high school student's homework now, enjoy this while it lasts, because once she heads off to college, the privacy rules change. And there’s a good chance you won’t like them. When your child goes to college, your right to access his educational records—including grades, billing statements (even if you are the one paying the bills), and health records—may change dramatically. Because of restrictions outlined in a law known as FERPA (the family educational and privacy rights act), colleges may require that you get your adult student’s written permission to access his www.EduGuide.org 60 ONLINE EDUGUIDE private information.
Susan J. Demas is a contributing editor to EduGuide and 2006 Knight Foundation Fellow in Nonprofits Journalism.
FERPA: Family Educational Rights Privacy Act
Barbara Rickard
Many parents pride themselves on keeping up with their kids' grades in high school. Some even take advantage of programs that let them monitor their child’s grades online. If you are keeping close tabs on your high school student's homework now, enjoy this while it lasts, because once she heads off to college, the privacy rules change. And there’s a good chance you won’t like them. When your child goes to college, your right to access his educational records—including grades, billing statements (even if you are the one paying the bills), and health records—may change dramatically. Because of restrictions outlined in a law known as FERPA (the family educational and privacy rights act), colleges may require that you get your adult student’s written permission to access his private information.
Protecting Students' Educational Privacy Rights
The Family Educational Rights and Privacy Act (FERPA) is a federal law that was passed in 1974 to protect the rights of every student who is attending an institution of learning beyond the high school level. You may still consider your college freshman your “child,” but once he enrolls in college the federal government considers him an adult with full rights to manage his own privacy. All colleges and universities that receive funding from the U.S. Department of Education must follow the FERPA guidelines before releasing “education records.” Education records are defined as “those records that are directly related to a student and are maintained by an educational agency or institution or by a party acting for the agency or institution.”
Understanding Parents’ Rights
Once a year, schools have to notify parents and eligible students of their FERPA rights. You or your child may request, in writing, that the school not disclose directory information (usually including name, address, telephone number, etc.) to other people or organizations, and the school must honor the request. Some schools only allow this request to be made at the beginning of each school year, so it’s best to ask questions up front. Parents who claim a student as a dependent on their federal income tax forms may have the option of accessing that student’s records. FERPA allows institutions this option, but you must check with every school your child is considering, as policies vary by institution.
Special Circumstances Academic Probation
What happens if your child is placed on academic probation (because of low grades or poor class attendance) or flunks out of school? Again, it varies by institution. For example, when a student at the University of Michigan (U of M) is placed on academic probation the parents are not contacted. All information about grades and academic standing is sent directly to the student. At Connecticut College, however, parents are contacted, so long as they claim the student on their federal income tax statement. Not all public universities follow the same procedures; the same goes for private colleges. You have to ask.
Emergencies
Recent incidents of violence on college campuses have changed the way colleges deal with emergencies. New FERPA guidelines make it clear that colleges are not limited by FERPA in situations where the health and safety of the student or others is in question. Colleges have different definitions of who needs to know. Many have threatassessment teams who are responsible for making these decisions. The University of Michigan, for example, will reach out to parents and whomever else they determine to be appropriate to help prevent harm to the student or others.
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FERPA and HIPAA
Recent incidents of violence on college campuses have changed the way colleges deal with emergencies. New FERPA guidelines make it clear that colleges are not limited by FERPA in situations where the health and safety of the student or others is in question. Colleges have different definitions of who needs to know. Many have threatassessment teams who are responsible for making these decisions. The University of Michigan, for example, will reach out to parents and whomever else they determine to be appropriate to help prevent harm to the student or others.
FERPA and HIPAA
Specifics on how FERPA and HIPAA (Health Insurance Portability and Accountability Act) affect student health records (including mental health records) can be found online in the Joint Guidance on the Application of FERPA and HIPAA To Student Health Records.
Where to go for more information
FERPA is not only strict, it is complicated. To completely understand the guidelines, you may want to contact some other sources for additional information. At your local high school, contact your student’s guidance counselor; at the colleges and universities, contact the registrar, dean of students' office, or student legal services department. Most colleges and universities post FERPA information on their websites. The following sites have additional information:
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U.S. Department of Education National Academic Advising Association Inside Higher Ed.
Barbara Rickard holds a B.S. from Michigan Technological University and is the mother of three children in elementary, middle, and high school. She has volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
The Real Cost of College
Financial Aid for Students Can Ease the Sticker Shock EduGuide Staff
This chart (based on a 2008–2009 College Board survey) shows the national average tuition fees at three types of schools and illustrates that hardly anyone pays the advertised rate.
College Type 2Year Public 4Year Public 4Year Private
Price Tag $2,402 $6,585 $25,143
Cost to Family $102 $2,885 $14,493
Some of the most expensive schools actually cost the least because they have set aside substantial funds to provide financial aid for students. For example, Harvard provides free tuition for all admitted students with family incomes of $60,000 or less. To find out what the actual annual cost of tuition and room and board will be at the colleges your child is considering, call each school's admissions and financial aid offices. Ask about scholarships, grants, and other discounts that may apply to your family’s situation. College may be a lot more affordable than you think. www.EduGuide.org 62 ONLINE EDUGUIDE These four financial aid tips come from Lloyd Peterson, Vice President of Academic Strategy at College Coach:
volunteered in the public schools for 10 years, including 4 as a PTA Board Member.
The Real Cost of College
Financial Aid for Students Can Ease the Sticker Shock EduGuide Staff
This chart (based on a 2008–2009 College Board survey) shows the national average tuition fees at three types of schools and illustrates that hardly anyone pays the advertised rate.
College Type 2Year Public 4Year Public 4Year Private
Price Tag $2,402 $6,585 $25,143
Cost to Family $102 $2,885 $14,493
Some of the most expensive schools actually cost the least because they have set aside substantial funds to provide financial aid for students. For example, Harvard provides free tuition for all admitted students with family incomes of $60,000 or less. To find out what the actual annual cost of tuition and room and board will be at the colleges your child is considering, call each school's admissions and financial aid offices. Ask about scholarships, grants, and other discounts that may apply to your family’s situation. College may be a lot more affordable than you think. These four financial aid tips come from Lloyd Peterson, Vice President of Academic Strategy at College Coach: 1. 2. 3. 4. Don’t wait until your kids are admitted to a college before they apply for financial aid. Begin the financial aid process by November 1 of your child’s senior year. Financial aid almost always comes in the form of a package. It is rare that kids get a scholarship that covers everything. Typically aid is divided into two parts: a scholarship or grant and student loans and/or a parttime job. Financial aid awards are not final. You apply in November, and awards are made in April. If your financial situation changes, you can appeal the award amount. Never take a college off your list because you think it’s too expensive. Apply, get accepted, and then let the financial aid office fight for you.
Moneysaving College Prep Advice for Teenagers
The Classes You Take in High School Can Save You Money on College Tuition
63 ONLINE EDUGUIDE Christine MacDonald www.EduGuide.org
fight for you.
Moneysaving College Prep Advice for Teenagers
The Classes You Take in High School Can Save You Money on College Tuition Christine MacDonald
While you can’t control the cost of college tuition, there are smart ways of saving money for college that can start as early as your freshman year of high school. Read on to see how your high school academics can affect your college bottom line.
High School Academics Counts
Emily Sole of Traverse City, Michigan, handed over more than six hundred dollars to Wayne State University for a remedial math class that won’t even count toward graduation. She blames herself for not taking her high school math seriously. “I took Algebra II with a bunch of my friends and I just goofed off,” she admits. She took geometry her junior year but passed on math her senior year because she wanted to take more classes that matched her interests, primarily business classes. Now as a college freshman studying business administration, she regrets that decision. She spends five hours a week in a computer lab going over math basics she should have mastered already.
Unprepared College Freshmen
Colleges routinely test incoming freshmen to gauge how prepared they are for college work. According to a report published by the American Diploma Project and Achieve, Inc., almost seventy percent of college instructors reported spending time reviewing material with their students that students should have learned in high school. The same professors estimate that half of the incoming freshman class is unprepared for collegelevel math and writing. Why? Many college freshmen who feel unprepared for college admit that they didn’t work hard in high school.
How Difficult Courses Can Pay Off
Jim Levasseur from Mount Carmel, Illinois, took six Advanced Placement classes in high school and entered Bowling Green University with thirtythree credits. Since thirtythree credits is the equivalent of a whole year of college credit, he entered school not as a freshman but as a sophomore and saved himself an estimated $21,700 in outofstate tuition and room and board at the school. Since tackling these challenging courses also helped Levasseur improve his scores on the PSAT, he earned a full ride National Merit Scholarship that will pay the rest of his way through school. Having the required courses behind him lets Levasseur take classes he is more interested in sooner, including classes in his major of computer animation. He can also register for courses as a sophomore honors student, practically guaranteeing he won’t get shut out of any classes. This calmed his nerves about making the transition to college. “It’s sort of like a big head start,” Levasseur explains. “I was confident in my ability to do work at the college level.”
Christine MacDonald covers education for The Detroit News.
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ONLINE EDUGUIDE Four Ways To Lose Your Financial Aid for School
www.EduGuide.org
Christine MacDonald covers education for The Detroit News.
Four Ways To Lose Your Financial Aid for School
EduGuide Staff
Your parents won’t receive any notices about your college life once you turn 18, so it’s up to you to know and understand your school’s financial aid requirements. Financial aid—whether loans, scholarships, or grants—comes with strings attached. Here are the most common ways for students to lose their financial aid. 1. 2. 3. 4. Not showing adequate progress toward your degree by taking less than a full courseload. Not maintaining at least a 2.0 GPA overall — not just in your major. For academic scholarships, the standards can be even higher. Not finishing at least 70 percent of the classes you take. Other conditions specific to your aid package. Some aid requirements go beyond the common minimums listed above.
Community Service Ideas That Help Students Pay College Expenses
Elizabeth Johnson
Many students who take out student loans for college hope to land highpaying jobs after graduation to help make their loan payments. However, several organizations offer repayment or forgiveness of federal student loans (such as Perkins, Stafford, Direct Loans, and FFEL loans) in exchange for a commitment to work in areas that need professional skills and services. Here are six community service ideas that help pay for college.
Community Service Project Ideas
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Who has a program? Working in the Peace Corps or AmeriCorps VISTA (Volunteers in Service to America) allows you to use your knowledge and skills to help needy people in the United States and internationally. What will I do? AmeriCorps VISTA programs provide opportunities for people to serve through a network of partnerships with local and national nonprofit organizations. During a year of AmeriCorps service, you might: ¡ Tutor disadvantaged youth ¡ Fight illiteracy ¡ Provide health services ¡ Build affordable housing ¡ Teach computer skillsClean parks and waterways ¡ Operate afterschool programs Respond to disasters In the Peace Corps, you’ll do similar jobs in one of seventysix developing countries throughout the world. The Peace Corps asks members to make a twoyear commitment, but you can work longer if you desire.
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l How much can I earn toward college? If you have not yet gone to college, AmeriCorps VISTA will award you $1,200 that can be www.EduGuide.org ONLINE EDUGUIDE applied to your college expenses. Peace Corps members can receive scholarships, reduced tuition, and academic credit toward advanced degrees at many universities.
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Other conditions specific to your aid package. Some aid requirements go beyond the common minimums listed above.
Community Service Ideas That Help Students Pay College Expenses
Elizabeth Johnson
Many students who take out student loans for college hope to land highpaying jobs after graduation to help make their loan payments. However, several organizations offer repayment or forgiveness of federal student loans (such as Perkins, Stafford, Direct Loans, and FFEL loans) in exchange for a commitment to work in areas that need professional skills and services. Here are six community service ideas that help pay for college.
Community Service Project Ideas
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Who has a program? Working in the Peace Corps or AmeriCorps VISTA (Volunteers in Service to America) allows you to use your knowledge and skills to help needy people in the United States and internationally. What will I do? AmeriCorps VISTA programs provide opportunities for people to serve through a network of partnerships with local and national nonprofit organizations. During a year of AmeriCorps service, you might: ¡ Tutor disadvantaged youth ¡ Fight illiteracy ¡ Provide health services ¡ Build affordable housing ¡ Teach computer skillsClean parks and waterways ¡ Operate afterschool programs Respond to disasters In the Peace Corps, you’ll do similar jobs in one of seventysix developing countries throughout the world. The Peace Corps asks members to make a twoyear commitment, but you can work longer if you desire.
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How much can I earn toward college? If you have not yet gone to college, AmeriCorps VISTA will award you $1,200 that can be applied to your college expenses. Peace Corps members can receive scholarships, reduced tuition, and academic credit toward advanced degrees at many universities. How much of my student loans will be forgiven? When you serve full time with AmeriCorps VISTA after college, you’ll receive $4,725 toward payment of your federal student loans. Parttime workers get a partial award. In the Peace Corps, after a year of service, you can apply for deferment of Stafford, Perkins, and consolidation loans, as well as partial cancellation of Perkins Loans—fifteen percent for each year of service, up to seventy percent total. Where do I find out more? Visit www.americorps.gov or www.peacecorps.gov for complete details on applying for a service position.
Teaching
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Who has a program? The federal government created the Stafford Loan Forgiveness Program for teachers to encourage teachers to work in low income schools or schools in areas with teacher shortages. What will I do? Teachers who serve in certain low income elementary or secondary schools for five years and who have an outstanding Direct Loan or FFEL loan balance can apply for loan repayment after completing their fifth year of teaching. How much can I earn toward college? This program is only for repayment of loans after college. How much of my student loans will be forgiven? Teachers who qualify may be eligible for up to $5,000 repayment of their remaining student loan balances. Certain highly qualified math and science teachers working in eligible secondary schools or highly qualified special education teachers may qualify for forgiveness of up to $17,500. People with a bachelor’s degree in early childhood education working in eligible nonprofit child care facilities could have up to one hundred percent of their student loans repaid. Where do I find out more? The federal student aid Web site has a page with extensive information about the Stafford Loan Forgiveness Program for Teachers, including a list of eligible low income schools and the application for loan forgiveness.
Medicine
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Who has a program? The National Health Service Corps and the Nursing Education Loan Repayment Program both offer loan
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Where do I find out more? The federal student aid Web site has a page with extensive information about the Stafford Loan Forgiveness Program for Teachers, including a list of eligible low income schools and the application for loan forgiveness.
Medicine
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Who has a program? The National Health Service Corps and the Nursing Education Loan Repayment Program both offer loan repayment programs for medical professionals who work in areas that need medical help, which are called Health Professional Shortage Areas. Some hospitals and health care facilities have loan forgiveness programs for occupational and physical therapists. What will I do? Medical professionals can either apply to work at eligible medical sites or check the national database to see if their current employer is on the list. These people commit to working at the site for at least two years in order to qualify for loan reimbursement. Current or prospective medical students can apply for scholarships in exchange for service commitments. How much can I earn toward college? The National Health Service Corps Scholarship provides several scholarships for students in training to become primary care physicians, dentists, nurse practitioners, certified nursemidwives, and physician assistants who agree to provide two to four years of service in an NHSC approved site in a Health Professional Shortage Area of greatest need. The scholarship covers tuition, fees, and a living stipend. How much of my student loans will be forgiven? Medical professionals who work for two or more years in areas with critical medical shortages can have as much as sixty percent of their student loan balances forgiven. Doctors, nurse practitioners, dentists, dental hygienists, mental health professionals, and physician assistants who agree to work in areas that lack adequate medical care as identified by the National Health Service Corps could have up to $50,000 in student loan repayments in exchange for two years of service. Where do I find out more? Check out the Nursing Education Loan Repayment Program and the National Health Service Corps. The American Physical Therapy Association and the American Occupational Therapy Association have information on loan forgiveness programs, and the American Association of Medical Colleges has a database of state and other nonfederal repayment programs for medical school students.
Law
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Who has a program? Many states, law schools, and employers have loan repayment and forgiveness programs for law school graduates who work in public interest or nonprofit positions. What will I do? People working as state or local prosecutors, public defenders, civil legal aid, or legal advocates in low income communities at nonprofit organizations may qualify for loan repayment assistance. Criteria vary by program. How much can I earn toward college? These programs assist law school graduates who are working in lowerpaying public interest law positions. The Equal Justice Works Web site (see below) has a list of law schools that offer grants and scholarships to those studying public interest law. How much of my student loans will be forgiven? Loan repayment amounts vary from program to program. Proposed national repayment programs may pay an average of $2,000 to $10,000 per year for qualified service in public interest law. Where do I find out more? Equal Justice Works, formerly the National Association for Public Interest Law, has information about law school loan repayment assistance programs, including a list of participating schools. It also has information about employerbased and statebased loan repayment assistance programs and the Higher Education Reauthorization Act loan repayment assistance programs.
Military
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Who offers a program? Each of the five branches of the military (Army, Navy, Air Force, Marine Corps, and Coast Guard) offers tuition assistance, scholarships, and student loan forgiveness plans of various types. What will I do? Serve your country for a specified number of years through a branch of the military, the reserves, or the National Guard either before or after college to receive tuition assistance and loan repayment benefits. How much can I earn toward college? If you want to go to college first and serve in the military later, the Reserve Officer Training Corps (ROTC) has meritbased scholarships in return for a three or fouryear military commitment upon graduation. If you want to serve in the military first, you can earn or save up to $50,000 toward college expenses. Students who serve part time in the Reserves can receive up to $24,000 toward college in exchange for a commitment of one weekend Reserve service each month, plus two training weeks a year. How much of my student loans will be forgiven? If you enroll in the military after graduation, the military will make payments directly to your student loan lender to help you pay for college. Each branch has its own criteria for loan repayment, so it’s important to ask a recruiter for information. For instance, soldiers can qualify to have onethird of their loan repaid for each year of fulltime service, up to a maximum of $65,000. The Air Force’s College Loan Repayment Program has a maximum payment of $10,000. Where do I find out more? The tuition support page of the Web site Today’s Military explains many ways the military can help you pay for college or repay your loans.
Public Service
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l Who offers a program? The federal government’s new Public Service Loan Forgiveness Program helps employees in public services jobs pay their student loans. www.EduGuide.org ONLINE EDUGUIDE l What will I do? You may be eligible for this program if you work full time in a public service job such as a federal, state, local, or tribal government organization, agency, or entity; public child or family service agency; tribal college or university; organization
you pay for college or repay your loans.
Public Service
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Who offers a program? The federal government’s new Public Service Loan Forgiveness Program helps employees in public services jobs pay their student loans. What will I do? You may be eligible for this program if you work full time in a public service job such as a federal, state, local, or tribal government organization, agency, or entity; public child or family service agency; tribal college or university; organization that provides emergency management, military service, public safety, law enforcement, public interest law services, early childhood education, services for individuals with disabilities and the elderly, public health, public education, public library service, or school library services. How much can I earn toward college? This program is available only to college graduates. How much of my student loans will be forgiven? The amount will vary. The program forgives remaining student debt after ten years of eligible employment and qualifying loan payments, as long as you are still working full time in an eligible job and have debt remaining after one hundred twenty qualifying payments. Where do I find out more? Visit Public Service Loan Forgiveness or The SmartStudent Guide to Financial Aid for additional details.
Bonus tip: Many states have loan forgiveness programs for teachers, medical and legal professionals, and other workers. Check with your employer to see if you qualify for any state loan forgiveness programs.
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
Student Loans for College: Glossary of Financial Terms
Elizabeth Johnson
For most people the worst part of applying for student loans for college is trying to make sense of the paperwork, with its complicated legal language and confusing terms. To help you figure out student loan information, here are plainlanguage definitions and explanations of financial terms you may encounter. Consolidation: If you have more than one federal student loan, sometimes you can combine them, meaning that you would have one payment instead of several payments per month. The good news is that there is generally no minimum or maximum loan amount that you can consolidate; the bad news is that not all student loans are eligible for consolidation. Your college’s financial aid office or the lender who provided your loans will be able to tell you if your loans can be consolidated. Deferment: Having a deferment means that you can postpone paying back your loan or loans. It may be possible for you to get a deferment if you are:
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Enrolled in college at least half time (typically no fewer than six credits) Enrolled in graduate school Getting job training to help you change careers Unemployed or facing a severe economic hardship Enlisted in the military
This is an extremely useful option particularly for subsidized (See Subsidized Loan) Stafford loans, because you won’t be charged interest during the deferment period. Deferment options vary depending on the type of loan and date you took out the loan. Forbearance: Forbearance means that your loan holder agrees to let you temporarily stop making loan payments, gives you more time to make payments, or lets you make smaller payments. Unlike deferment, the interest on your loan continues during forbearance. If you're unable to make payments on your loan for reasons such as unexpected personal problems like divorce or illness and you don't qualify for a deferment, you may request forbearance of loan payments. Forgiveness: You can reduce or eliminate your federal student loans (such as Perkins or Stafford loans) with forgiveness programs that help you pay off your loans in exchange for one or more years of public or community service. To qualify, you must perform www.EduGuide.org 68 ONLINE EDUGUIDE volunteer work; serve in the military; teach, practice medicine, or practice law or law enforcement in certain types of communities; or meet other criteria outlined by the forgiveness program. Some programs, such as AmeriCorps VISTA, pay a specific dollar amount
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
Student Loans for College: Glossary of Financial Terms
Elizabeth Johnson
For most people the worst part of applying for student loans for college is trying to make sense of the paperwork, with its complicated legal language and confusing terms. To help you figure out student loan information, here are plainlanguage definitions and explanations of financial terms you may encounter. Consolidation: If you have more than one federal student loan, sometimes you can combine them, meaning that you would have one payment instead of several payments per month. The good news is that there is generally no minimum or maximum loan amount that you can consolidate; the bad news is that not all student loans are eligible for consolidation. Your college’s financial aid office or the lender who provided your loans will be able to tell you if your loans can be consolidated. Deferment: Having a deferment means that you can postpone paying back your loan or loans. It may be possible for you to get a deferment if you are:
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Enrolled in college at least half time (typically no fewer than six credits) Enrolled in graduate school Getting job training to help you change careers Unemployed or facing a severe economic hardship Enlisted in the military
This is an extremely useful option particularly for subsidized (See Subsidized Loan) Stafford loans, because you won’t be charged interest during the deferment period. Deferment options vary depending on the type of loan and date you took out the loan. Forbearance: Forbearance means that your loan holder agrees to let you temporarily stop making loan payments, gives you more time to make payments, or lets you make smaller payments. Unlike deferment, the interest on your loan continues during forbearance. If you're unable to make payments on your loan for reasons such as unexpected personal problems like divorce or illness and you don't qualify for a deferment, you may request forbearance of loan payments. Forgiveness: You can reduce or eliminate your federal student loans (such as Perkins or Stafford loans) with forgiveness programs that help you pay off your loans in exchange for one or more years of public or community service. To qualify, you must perform volunteer work; serve in the military; teach, practice medicine, or practice law or law enforcement in certain types of communities; or meet other criteria outlined by the forgiveness program. Some programs, such as AmeriCorps VISTA, pay a specific dollar amount toward your loan; other programs pay a certain percent of your loan for each year of service up to a certain limit. (See “Community Service Ideas That Help Students Pay College Expenses.”) Default: Defaulting on a loan means that you stop making payments as you agreed to when you took the loan. Federal student loans consider you to be in default if you don’t make payments for nine months. Private loans from lenders other than the government may be considered in default sooner than nine months; check with your lender so you know how they define terms. When your loan is in default, the entire amount of the loan becomes due. Delinquent: When you miss or are late with your loan payment, you are considered delinquent on your loan. Your lender may charge a late fee or set some other penalty when you are delinquent with your loan. If you are delinquent for too many months, you may be considered in default. Exit Counseling/Exit Interview: If you have a federal student loan, such as a Perkins, Stafford, or GradPLUS loan, you are required to complete exit counseling when you graduate, leave school, or drop to less than halftime status (fewer than six credit hours). The exit counseling will explain the terms of your loan, repayment requirements, and penalties for delinquency and default. Your school’s financial aid office can conduct the exit interview, or you can do it online at the U.S. Department of Education’s student loan website (https://www.dl.ed.gov/borrower/BorrowerLogin.jsp) Grace period: A grace period is the time between when you leave school (or become less than a halftime student—usually six credits) and when you have to begin making payments on your student loan. For federal loans, the grace period is usually six or nine www.EduGuide.org 69 ONLINE EDUGUIDE months. Some private loans may require you to begin making loan payments as soon as you leave school. Be sure and check with your lender to know for sure when you are supposed to begin repaying your loan.
counseling will explain the terms of your loan, repayment requirements, and penalties for delinquency and default. Your school’s financial aid office can conduct the exit interview, or you can do it online at the U.S. Department of Education’s student loan website (https://www.dl.ed.gov/borrower/BorrowerLogin.jsp) Grace period: A grace period is the time between when you leave school (or become less than a halftime student—usually six credits) and when you have to begin making payments on your student loan. For federal loans, the grace period is usually six or nine months. Some private loans may require you to begin making loan payments as soon as you leave school. Be sure and check with your lender to know for sure when you are supposed to begin repaying your loan. IBR (IncomeBased Repayment): As of July 1, 2009, federal student loans include a repayment option called IncomeBased Repayment (IBR). The program helps borrowers keep their loan payments affordable by setting payment limits based on income and family size. For most eligible borrowers, IBR loan payments will be less than ten percent of their income—and even less for borrowers with low earnings. IBR will also forgive any remaining debt after twentyfive years of qualifying payments. Subsidized Loan: The federal government pays the interest on subsidized loans while you are in college, during the grace period, and during any authorized deferment periods. Having the government pay the interest on the loan during these times keeps the loan amount steady at the amount you borrowed until it is time to repay the loan. Stafford loans in the FFEL (Federal Family Education Loan) and William D. Ford Federal Direct Loan programs can be subsidized up to a certain amount based on your financial need. Unsubsidized Loan: This is the part of a federal Stafford (FFEL or Direct Loan) that is not based on financial need. You are responsible for paying the interest on this loan during inschool, grace, and deferment periods, as well as during normal repayment. You can either make interest payments on the loan while you are in school, or you can have the interest added on to the loan and begin repaying the total once you are out of school.
Additional terms related to student loans: http://www.studentloanborrowerassistance.org/glossary/ Recommended Web sites The National Consumer Law Center’s “Student Loan Borrower Assistance Project” at http://www.studentloanborrowerassistance.org/ provides information and answers to frequently asked questions about student loans and loan repayment. Federal Student Aid Ombudsman of the U.S. Department of Education: http://www.ombudsman.ed.gov/ helps resolve disputes and solve problems with federal student loans.
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
New Student Loan Forgiveness Program Rewards Public Service Workers
Incomebased Repayment and Loan Forgiveness Programs Provide Combined Benefits Elizabeth Johnson
The good news: people who take jobs in public service (such as teaching, government, or AmeriCorps/Peace Corps) could be eligible for a new federal student loan forgiveness program that would help them reduce payments on some financial aid loans. The nots o good news: it could take up to ten years for people to find out if the work they’ve been doing qualifies for the program. The Public Service Loan Forgiveness program enables people to have the balance of their federal financial aid loans forgiven if they are employed full time by a public service organization and have made at least 120 monthly payments on their student loans at the time they apply for loan forgiveness. The program is effective for payments beginning after October 1, 2007; therefore, the first cancellations of loan balances will not be made until October 2017. Details of the program were finalized in October 2008 as part of the College Cost Reduction and Access Act of 2007. The program became widely publicized beginning in July 2009, when the federal government’s incomebased repayment program was launched. The two programs together provide the greatest benefit for student www.EduGuide.org 70 ONLINE EDUGUIDE borrowers in lowpaying public service careers.
Elizabeth Johnson is a freelance writer in Lansing, Michigan, who is navigating the world of student loans for college with her teenage son.
New Student Loan Forgiveness Program Rewards Public Service Workers
Incomebased Repayment and Loan Forgiveness Programs Provide Combined Benefits Elizabeth Johnson
The good news: people who take jobs in public service (such as teaching, government, or AmeriCorps/Peace Corps) could be eligible for a new federal student loan forgiveness program that would help them reduce payments on some financial aid loans. The nots o good news: it could take up to ten years for people to find out if the work they’ve been doing qualifies for the program. The Public Service Loan Forgiveness program enables people to have the balance of their federal financial aid loans forgiven if they are employed full time by a public service organization and have made at least 120 monthly payments on their student loans at the time they apply for loan forgiveness. The program is effective for payments beginning after October 1, 2007; therefore, the first cancellations of loan balances will not be made until October 2017. Details of the program were finalized in October 2008 as part of the College Cost Reduction and Access Act of 2007. The program became widely publicized beginning in July 2009, when the federal government’s incomebased repayment program was launched. The two programs together provide the greatest benefit for student borrowers in lowpaying public service careers. Not all federal student loans are included in the Public Service Loan Forgiveness program. Only those loans made through the William D. Ford Federal Direct Loan program (Direct Loan) are eligible: this includes subsidized and nonsubsidized Stafford/Ford Loans, Direct PLUS Loans for parents and professional students, and Direct Consolidation Loans. Other federal loans may qualify if they are consolidated into the Direct Consolidation Loan. It is not available for private or alternative student loans, state loans, or federal loans in the Guaranteed or FFEL program. Under the forgiveness program, the scope of public service jobs is broad, potentially enabling many graduates to apply. According to Federal Student Aid, an office of the U.S. Department of Education, qualifying jobs include those in:
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Federal, state, local, or tribal government organizations, agencies, or entities (including most public schools, colleges, and universities) AmeriCorps and Peace Corps jobs Public child or family service agencies Nonprofit, 501c3, tax exempt organizations, whether public or private Tribal colleges or universities Labor unions Partisan political organizations Organizations engaged in religious activities Public services such as emergency management, military service, public safety, law enforcement, public interest law, early childhood education, public service for individuals with disabilities and the elderly, public health, and public library services.
For this program, “fulltime employment” is defined as thirty hours a week or the number of hours an employer considers full time (whichever is greater), or thirty hours per week total if working for multiple employers. For teachers, fulltime employment is considered eight or nine months (a school year). Under a typical student loan repayment program, loans would be paid off in 120 payments, or ten years. However, the Public Service Loan Forgiveness program also assumes that the borrower is participating in either an incomebased repayment or income contingent repayment plan, which allows the borrower to make smaller payments or even no payment over a longer period of time. Under one of these programs, it is possible that one’s student loan would not be paid in full at the end of ten years. In that case, someone working in one or more public service jobs during that time could have the balance of his or her loan forgiven. The U.S. Department of Education does not currently have a formal process for registering for public service loan forgiveness or for confirming eligible employment. Borrowers who think they may qualify should save records that identify their employer, as well as their dates and hours of employment. This checklist can help borrowers gather the documentation they will need for the program. www.EduGuide.org 71 ONLINE EDUGUIDE This web site includes overviews of the Public Service Loan Forgiveness program, incomebased repayment and incomecontingent
someone working in one or more public service jobs during that time could have the balance of his or her loan forgiven. The U.S. Department of Education does not currently have a formal process for registering for public service loan forgiveness or for confirming eligible employment. Borrowers who think they may qualify should save records that identify their employer, as well as their dates and hours of employment. This checklist can help borrowers gather the documentation they will need for the program. This web site includes overviews of the Public Service Loan Forgiveness program, incomebased repayment and incomecontingent repayment programs. Other places to get more information about Public Service Loan Forgiveness include:
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www.FederalStudentAid.ed.gov http://www.finaid.org/loans/publicservice.phtml
Due to the dynamic nature of our quizzes, they are only available on the web. Follow the addresses below to take a quiz on our website.
How Much Do You Know about Saving Money for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/30/view/StepTakeQuiz/Default.aspx
Do I Know How to Pay for College?
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http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/32/view/StepTakeQuiz/Default.aspx
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www.EduGuide.org
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http://www.finaid.org/loans/publicservice.phtml
Due to the dynamic nature of our quizzes, they are only available on the web. Follow the addresses below to take a quiz on our website.
How Much Do You Know about Saving Money for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/30/view/StepTakeQuiz/Default.aspx
Do I Know How to Pay for College?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/31/view/StepTakeQuiz/Default.aspx
How Respectful Am I?
http://www.eduguide.org/Parents/TakeQuiz/tabid/114/quizId/32/view/StepTakeQuiz/Default.aspx
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www.EduGuide.org
