Educational Cents - Your College Resource

Ranking Shenanigans – The Drivers behind the Manipulation Temptation

2012-02-06T06:22:00.000-08:00

News broke last week that the U.S. News & World Report ninth ranked liberal arts college, Claremont McKenna College, has been fudging its reported incoming student SAT scores by ten to 20 points for the past six years. While you might not think that such a nominal overstatement in test performance would move the ranking needle materially (test scores are weighted 7.5% in the ranking formula), the inflated scores helped Claremont McKenna rise through the pack and break into the coveted top ten in 2011. Why such pressure on colleges to improve their place in the rankings pecking order, even to the extent that a highly recognized and respected admission dean would risk his job and career by perpetuating a fraud all of these years? A higher ranking translates into an increase in applications and higher yields (the number of accepted students who actually matriculate). Once colleges figured out that rankings can directly affect admission outcomes, the temptation to game the system became too much for some to resist.

After reading the Claremont McKenna news and speculation that many other colleges are finding ways to manipulate their numbers, I was struck by a thought; the group that most influences the rankings are not the colleges themselves, but rather the segment of the population that has come to rely on these rankings: parents and students. As much as I try to dissuade them, I do understand why parents focus and obsess over the low and still falling acceptance rates of the most selective colleges. Nevertheless, I encourage them to broaden their scope to include the many quality schools that are lower ranked and more robust in their admission numbers. Every time we rely on the U.S. News & World Report rankings as the quality standard bearer, we are perpetuating the misconceptions about excellence and motivating the actions that affect rankings. While reader perception of worth does not have its own separate weighting in the U.S. News & World Report formula the way that college peer opinion does, we are the ultimate drivers.

Think about this. If I use the rankings as my guide about where to apply, I, like everyone else who is employing the same skewed logic, will actually contribute to the ranking frenzy. The “top” colleges will draw more applications (good for rankings), have to reject a greater number of students (a huge boost for the rankings), which drives down their acceptance rates (a rankings game changer) and ultimately jacks up their yields (rankings home-run!). Never did I think that I would feel amazingly empowered by the realization that if I read and react to the U.S. News & World Report I could exercise such influence! Unfortunately, I am just one person. It is our collective action that will change this game.

Following Claremont McKenna’s disclosure last week, the finance magazine, Kiplinger, removed the school from its list of best buy colleges. One man erred in judgment and now this highly respected academic institution is no longer a smart educational investment? How can that be? Did anything else change at the school since last week? Sure, the average SATs are slightly lower than we thought and that, no doubt, will cause the college to fall in the 2012 rankings. Have we all been duped into thinking that Claremont McKenna was a better school than it really is? Perhaps…if you buy into the rankings.

The High Cost of Higher Ed – Do We Really Need the Climbing Wall?

2012-01-30T15:27:00.000-08:00

Last week I called a business school buddy, my annual homage to his birthday. When I asked about his kids, he shared his relief and joy at writing the final tuition check with the last of his crew graduating from college this spring. I must confess; I was suddenly struck by “final college tuition payment envy.” With twelve semesters of tuition payments left to pay (and counting!), assuming my three daughters stick to the four-year plan, I am singing the middle class college cost blues.

Like so many others looking for a ray of college affordability hope, I was wishful that President Obama would propose something truly revolutionary to help all Americans afford the dream of sending their children to college. I can’t fault our president that his proposal announced last week will barely make a dent for lower income families struggling to afford college and will provide little if any relief for the middle class. The cost of college is so alarmingly out of control that increasing the availability of Perkins loans for lower income families is like trying to protect a gaping wound with one of those pinky-size band aids. The cost of college today has put affordability out of reach for most Americans, including many who are comfortably middle class. Nothing short of a complete and drastic overhaul of the higher education system will adequately address the issue. But for that to happen we need to understand how we’ve enabled this craziness.

Colleges and universities are now on the defensive, having for years fueled an arms race enticing students with state-of-the-art athletic, academic and dining facilities, deluxe dorms, and the best amenities that their spiraling tuition and fees could buy. But before we place all of the blame on colleges for escalating costs, ask yourself if you weren’t wowed by the climbing wall and yes, lazy rivers (!) that are becoming the hallmarks of college athletic facilities across the country. Have we inadvertently sent the message that this is what we value in a college education?

When I meet a family for the first time I ask both parents and the student to prioritize their wish list for college; reputation, cost, academics, dorms, location, school spirit, Greek life, athletics, etc…what is truly important for a college experience? Why aren’t academics always at the top of the list? As the total bill at the most expensive colleges approaches $250,000, shouldn’t we be asking ourselves if our students really need the climbing wall?

No amount of government assistance can even begin to make a dent in this pricey behemoth we know as higher education. President Obama can threaten to cut off federal aid to colleges that do not meet certain cost reduction expectations. However, colleges have already been through several rounds of layoffs. For many colleges, reducing faculty further will have a detrimental impact on the quality of education that they deliver. And let’s not lose sight of the fact that most academicians teach for the love of it, not the money...they are not raking it in. (However, some college presidents’ and coaches’ salaries, in my opinion, should be fair game for the chopping block.) The more practical option for schools is to think more strategically about programs. Are colleges becoming too creative and stretched thin by the panoply of majors that they offer just to keep up with the latest trends led by their academic competition (another arms race)? Why haven’t more schools considered forming consortium with neighboring institutions as a cost effective way to continue offering many academic options, similar to the collaboration established by Wellesley (liberal arts), Babson (business) and Olin (engineering) two years ago?

Colleges will have to be creative in figuring out how to trim down their cost structures burdened with many fixed expenses. We, the consumers, can help by sending a message to the colleges about what we really value. Free laundry, palatial dorms and yes, that ubiquitous climbing wall are all nice-to-have, but not the reason we send our kids to college. The next time you are impressed by the over-the-top athletic facilities on a college campus, especially if your child is not athletic, catch yourself and ask this question instead. How will this enhance the investment return on my child's four year college education? When put in those terms, the climbing wall is no longer so impressive.

Come February 1st, Filing Your FAFSA May Become Easier

2012-01-15T14:14:00.000-08:00

FAFSA and easy are not two words that one generally finds in the same sentence. However, come February 1, families that have filed their tax returns might be able to take advantage of the IRS Data Retrieval tool which should simplify the process and allow them to complete the FAFSA form by accessing data from their 2011 return. This is good news for those who are organized and fortunate enough to receive all of their W-2 and 1099 statements early. The ability to use tax returns when completing financial aid forms is just one of several things families should know as they begin the 2012-2013 financial aid process for their students who will be enrolled in college next fall.

If you are new to the financial aid process, then you may only first be learning all of the buzz words and acronyms such as FAFSA, SAR, EFC, COA and CSS/Profile. Here’s a quick primer for beginners and a review for the financial aid veterans: All colleges require that students complete the Free Application for Federal Student Aid (FAFSA) in order to qualify for federal aid. It is available January 1 each year at http://www.fafsa.gov. Both student and a parent must complete and sign the form and each must apply for a pin (http://www.pin.ed.gov) which serves as the electronic signature. Once the form is submitted, preferably electronically, families will receive a Student Aid Report (SAR) which notifies them of their Expected Family Contribution or EFC, deemed to be the amount they can afford to put towards the Cost of Attendance, or COA. Some private colleges may also require a CSS/Profile form for allocation of their institutional aid. This form is administered by the College Board and can be found on its website: http://www.collegeboard.com. Whether you must complete the FAFSA, CSS/Profile or both, you will be required to present parent and student income (prior year only for the FAFSA, two prior years for the Profile) and assets (as of the date of filing).

When is the right time to complete financial aid forms? If you are hoping to be considered for need-based aid, the time is now! And before you put this off any longer, visit the websites for each college to which your son or daughter is applying and check to see which forms the school requires as well as the submission deadlines. They may be as early as February, so do not delay!

Pressure to simplify the financial aid process has led to the development of the IRS data retrieval feature for the FAFSA. However, before you get too excited, take note of the drawbacks which may preclude you from taking advantage of this easier filing method. Married couples must file jointly, have filed their taxes at least two weeks before the college financial aid deadline (which may mean as early as January), and any subsequent amendments to the return will not be captured. If like mine, your 1099 statements inevitably arrive late in February or even March, you may be out of luck. For those up against tight deadlines, you will need to estimate your income for 2011 and amend your financial aid documents after you file your taxes.

Even if you do not qualify for need-based financial aid, you will still need to file a FAFSA if your child will borrow through the federal Stafford loan program or if you plan to take out a PLUS loan. Though neither of these loans requires that students demonstrate need, they are part of the Federal Direct Loan program (Note that some colleges also require the FAFSA for their institutional merit aid). A college’s posted filing deadline does not apply for non-need based federal aid so timing is less critical. Therefore, I recommend waiting and submitting the FAFSA after filing a tax return to avoid having to estimate income.

I welcome reader questions and specific topics you might want me to address (jane@klemmerec.com). Check back here for future posts regarding financial aid changes and updates.

Making College Affordable - Time to Speak Up

2011-12-05T14:09:00.000-08:00

I’ve been reading a lot about the cost of college lately. The talk these days is often about how to improve transparency. Thanks to a recent government mandate, families can now go to the website of any federally funded college and try out the school’s Net Price Calculator. This new online tool will ostensibly help families and students estimate their out-of-pocket costs for a college education. That’s the good news. Yet, net cost naturally leads to a conversation about how middle and lower income families will come up with this elusive figure which is still far beyond many family budgets. In fact, Education Secretary Arne Duncan asserts that three-quarters of all Americans believe college is too expensive for most people to afford. The fact that none of this has dampened the year-over-year rise in applications is indeed mind-boggling. Even Penn State’s applications are up this year, but that’s a topic for a different post.

College has become so far out of reach for so many families that last week Mr. Duncan implored higher education officials to make college costs an urgent priority and asked that they think creatively about ways to address this profound issue for our college-going population. Meanwhile, students and families still reach for the golden ring to attend expensive and elite four year colleges, often putting themselves in debt beyond their probable ability to repay. The most recent statistics on student debt show that seniors are graduating with average loan balances in excess of $25,000. Some of this is eligible for Obama’s income-based repayment plan for federal student loans, but more and more students are forced to borrow private loans to close the gap. Interest and principal on these loans will have students repaying their student obligations for much of their adult lives, perhaps forcing them to forego or postpone putting a down payment on a home or making contributions to retirement funds. Forget about funding their own children's education.

Today the Chronicle of Higher Education published a special report, What Private College Presidents Make, which shows compensation for the leaders of our nation’s colleges and universities, and also compares the president's salary to each institution’s pay scale for its faculty. At some, not all, the gap is staggering, not unlike the discrepancies we find on Wall Street. The report is quite timely given Mr. Duncan’s remarks last week. While cutting college chief executive pay won’t in and of itself make college affordable, focusing on leadership compensation seems like a great place to start. Suffice it to say that not nearly enough has been done to stop this runaway train so that we, as parents, are not further mortgaging our own futures and watching our children do the same.

We read about the steady rise in student loan balances and defaults each year, but nothing concrete has really been done to stem the rise of what will, without a doubt, be our next sub-prime crisis. I think about this everyday as I advise families on paying for college. For many it is not really a question of whether the funds are accessible; lenders are still eager to make student loans, and there is an even more tenuous link to affordability than there was in sub-prime mortgage lending where presumably some collateral existed. It is all too easy to hide our heads in the sand and hope that miraculously our children will be able to repay the loans when the time comes and still be able to live the American Dream.

I am not suggesting that everyone go to the nearest computer and sign the Occupy Student Debt Campaign online petition which calls for student debt forgiveness, free public education and greater transparency at private colleges. However, this product of the Occupy Wall Street movement has prompted me to think about my own responsibility to my children and to the families I advise. For the first time, I am encouraged to write to my representatives in Washington and ask that they make college affordability for all students a priority. I am hoping that I can persuade others to do the same. I look down the road and wonder what will happen when college is only accessible to the truly privileged in this country while the majority is saddled with student loans they will never be able to repay. The image is painfully clear and I'm not liking what I see.

When Early Decision Makes Sense

2011-09-10T15:27:00.000-07:00

One of the greatest misconceptions perpetuated each application season is that the best way to improve your chances of getting into college is to apply Early Decision (ED). Yes, I am fully aware that colleges such as Bucknell accept double the number of applicants ED versus regular decision and that UPenn fills 50% of its freshman class with students who apply under the binding early admission process. My beef with clinging to the notion that ED will always improve your chances is that it is not so black and white, but rather depends on several factors. One must look behind the pure percentages to truly understand what drives the numbers and who is actually getting accepted early. I am not disputing some very compelling evidence; I just want students and families to understand when it makes sense to apply early and when it does not.

Here is what the numbers don’t tell you. Many in the ED pool, especially at Division III and Ivy League schools that have Early Decision, are recruited athletes. Since these colleges are forbidden to “pay to play,” coaches encourage recruits to apply early so they can assemble their teams with greater assurance. While coaches cannot guarantee acceptance, they often have a liaison in the admission office to vet athletes before they get too far into the process. Legacies, as well, may have an edge especially if they apply early, so this probably encourages a disproportionate number of applications from those with family ties.

That may not leave as many spots as you first thought for non-athletes and those with no prior connection to a school. However, don’t despair. Colleges like students who demonstrate interest and what better way to do that than to apply ED? Moreover, a higher proportion of Early Decision acceptances improves a college’s yield, or the percentage of students who accept an offer. The yield for ED accepted students is theoretically 100% so the more students admitted under this program, the higher yield a college can report. Yet schools also want to maintain or raise their standardized test score and GPA averages which ultimately translate into better rankings. In other words, they must balance the management of yield with showing stable or improving student academic ranges.

Who should apply to college under a binding Early Decision program? Students who are certain beyond any doubt that this is where they want to go AND who are within the college’s range of accepted students for both test scores and GPA are most likely to benefit from applying ED. True, a student at the low end of the range may have a better chance of admission applying early, but that individual usually offers some other desirable attribute. If an applicant is below the college’s ranges, an early application will likely meet with an early rejection which never feels good, especially if friends are bubbling over with news of their acceptances. Not only is this wasting a possible ED option, but it means that potentially the first response from colleges will be a negative one. If a student has not completed his or her other applications, it may be tough to get motivated, a real problem if the deadlines are now only two weeks away.

Early Decision is generally not a good plan for a student who hopes to improve his or her grades. If the first semester senior year grades are especially important for showing maturity and growth, then better to wait and be considered in the regular pool of applicants. A positive trend will be favorably noted. Applying early will mean that the student gives up an opportunity to share this important piece of his or her story.

Finally, ED may not make sense for students who are dependent upon financial assistance. More and more colleges are gapping, as they are unable to fully meet demonstrated need. If there is a concern about whether the financial aid will be sufficient, I advise students to apply regular decision to be in a position to compare offers. In some cases, this might even give the student leverage with a first choice college should the package for a comparable school be materially better.

Deciding where to apply to college will likely be a young person’s most significant life decision to date. Choosing to apply Early Decision should be made with the care, deliberation and thorough evaluation of all the factors that such an important decision warrants.

Tour de North Carolina - A Great Way to Visit Colleges

2011-07-19T18:19:00.000-07:00

The first week in July I discovered that touring colleges by bike with a group of college counselors is an ideal way to experience the warmth (both literally and figuratively) and charm of the South. Towels, box lunches, water bottles, granola bars and power gel greeted us at the schools. We dined like kings and queens during our stay and were treated to accommodations worthy of upper classmen students! Though campuses are quieter during the summer months with far fewer students, we took advantage of the trade-off: lots of face time with admission deans and directors, faculty and even a college president. A chance to hear what’s on the minds of the deans can give one an interesting perspective on a university, its mission and goals. It provides a different lens into the heart and soul of a college.

North Carolina is home to wonderful state and private universities. My trip took me to eight of them, ranging in size from under 1,500 students, up to the largest, NC State, which enrolls 25,000 undergraduates. It is difficult to identify anything that all of these colleges share in common, but I managed to find that one thing. Red brick! With no exception, every college we visited sported stately brick-paved walks and old Virginia red brick structures. The ubiquitous red buildings and lush greens added a certain charm and gentility to many of the campuses we visited.

We started our tour at NC State in Raleigh which occupies a 1900 acre campus dotted with historic buildings along side modern state-of-the-art facilities. The recognized university for “techies” in the Tar Heel State, NC State offers 18 engineering majors and boasts strength in textiles and design. The university, well regarded for its basketball, is eager to make known its academic brawn too, and attract more students from outside North Carolina. Students who get their applications in by the November 1 early action date will automatically be considered for merit aid.

Leaving NC State, we headed west to UNC Chapel Hill. One of the newcomers this year to the CommonApp, Chapel Hill is anticipating a 20% increase in applications, making this highly selective school all that more competitive, especially for out-of-state students for whom enrollment is capped at 18%. There is better news for transfers, however, where the cap does not apply. Despite the university’s selectivity, Steve Farmer, Associate Provost and Director of Undergraduate Admissions, emphasized that they do not seek out the highly competitive Type A personality students. “A lot of smart kids and a great heart” is how he would characterize the student body which has an especially high commitment to community service. UNC Chapel Hill is now encouraging students to take a gap year with its newly formed Global Gap Year Fellowship Program, made possible with an anonymous $1.5 million grant, giving 30 admitted students the opportunity to do a year of international service. At this most prestigious UNC, every student gets a liberal arts education, regardless of field of study. For financial assistance, the university describes itself as “need conscious,” meaning that it makes every effort to make UNC affordable to admitted students who would otherwise be unable to attend.

We arrived at Elon after a 40 mile ride and just ahead of sunset which meant we had to wait until the morning to explore this beautifully lush and expansive campus. A midsize university with just over 5,000 students, Elon has a clear mission, founded on five principles: leadership, research, internships, international and service. Like UNC Chapel Hill, Elon is also encouraging accepted students to consider a gap year with its newly formed program that includes a National Outdoor Leadership School (NOLS) experience and a service learning component in Costa Rica. Also new at Elon is its spring admit program for a select group of students who were not accepted for fall term. Academics are strong in many disciplines, though perhaps the university is best known for its fine business, communications and performing arts programs. A new multi-faith center is on the drawing board. Elon offers academic, community service and performing art scholarships.

Towels and bottles of ice cold water never looked better than those that greeted us at Guilford College in midday. A Quaker school of just over 2,000 students, Guilford is a bit of an anomaly in North Carolina. More hippie than preppie, the students are passionate about their causes and at the top of the list is the environment. Sustainability is the buzz word here and appears to drive every decision and practice. Since many of its building are included in the National Historic Register, Guilford has gone to great effort to preserve the history while upgrading facilities to meet its “green” standards. We toured the expansive organic gardens and viewed the composting process. How many colleges do you know that have their own bike shop? Students can rent bikes for a nominal fee while also reducing their carbon footprint. Not surprisingly, two popular majors are Peace and Conflict Studies and Justice and Policy Studies.

Our final destination day 2 was High Point University located in the furniture capital of the world. Every building on this pristine campus of mostly new construction is adorned with beautiful furnishings, and students have exceptional facilities available to them. Calming classical music can be heard outdoors throughout the day as one strolls past benches with seated statues of historic figures in science, literature government and the arts. The focus on the physical surroundings is by design; High Point believes that exposing students to fine service and beautifully appointed facilities will foster a stronger sense of respect and responsibility among its graduates. High Point is in a growth phase, both for its physical plant and in student population. With just 400 freshmen a few years ago, the university will grow to 5,000 undergrads over the next few years, while also expanding programs and majors. “Undecided” is the second most popular major, yet business, communications and education are big draws, and interior design is surely a signature major. High Point offers many academic scholarships and the cost of attendance of approximately $40,000 is substantially less than the most expensive private colleges. However, the college admittedly “gaps” students, so it may be difficult for students to attend who have significant financial need.

A hilly route to Wake Forest gave us a sense of things to come as we headed west…more hills! This test optional private university of just over 4,000 undergrads has a small community feel, while being part of a larger research university with professional schools in law, medicine, business and theology. Wake’s application process in a word: thorough! At a time when many colleges are dispensing with evaluative interviews, Wake has moved in the other direction and now requires them for all applicants, in person or by Skype. Intellectual curiosity, passion and an awareness of the world outside the individual’s own sphere are what they seek to uncover through the comprehensive process. Wake Forest wears proudly its often used moniker: “Work” Forest. Students don’t mind telling you that they study harder than most, but they play hard too. Greek life permeates the social scene and sports, especially basketball, are big at this Division I school. If you happen to visit the campus after a big athletic victory, don’t be surprised to find the Quad blanketed in toilet paper, as students partake in “rolling the Quad” to celebrate the event. While Wake has many strong academic programs, business and political science are the most popular majors. Construction of a new business school will break ground this year.

Catawba College, with just 1300 students, may not be well known outside of North Carolina, but don’t overlook this theatre and music powerhouse. The music department is one of only 12 in the nation that offers popular music as a major, with an emphasis on songwriting and performance in every type of popular genre, as well as the business side of music. The theatre department is all encompassing, with strength in both performance and production. I am not a fan of rankings, but I feel compelled to share that Princeton Review ranks its musical theatre program #1 in the country. Other popular areas of study are business and athletic training. The Center for the Environment has recently spearheaded a program for clean air. Catawba is affiliated with the United Church of Christ and still enjoys a strong relationship with the church, though religion courses are not required, nor is the weekly worship service. Students do take advantage of the Lilly Center for Vocation and Values which encourages self journey to find the right life vocational calling. Despite the religious affiliation, the college has more of a community spirit than religious feel.

On my final full day we cycled to Davidson College located in the heart of the charming and quaint town that bears its name. Davidson straddles two identities. With just 1,800 students, Davidson looks and feels very much like a small New England liberal arts college. However, the Davidson Wildcats compete with far bigger rivals in Division I athletics and are most recognized for the basketball team that reached the final eight at the NCAA tournament in 2008. Davidson’s celebrated honor code governs all aspects of academic and student life and is a declaration embraced by students and faculty alike. Despite the economic downturn, the college remains committed to the Davidson Trust and its philosophy that the college’s education should be available and affordable for all qualified students. Davidson was one of the first colleges to dispense with loans for students demonstrating financial need, and claims that it will not back away from this policy though others have as endowments have suffered. The college also awards merit aid to approximately 10% of students, with grants ranging in size from $1,000 to full cost.

There is no substitute for visiting college campuses, but nothing compares to a taking that journey on a bike, carrying one’s own gear and spending the night in the college’s dorms. It takes a little more effort and preparation, including the physical training, but the perspective that one gets on each school is unique and personal. I can’t think of a more enjoyable or enlightening way to visit colleges!

Hobbies are not just for College Applications

2011-06-22T11:50:00.000-07:00

When it comes time to fill out college applications many students panic at the thought of having to list their extra-curricular activities. They question whether they have enough activities, the “right” ones, and if their list will persuade the admission staff of their commitment to these pursuits. “If I don’t have a passion, will colleges even consider me?” is the unproductive thought that plays repeatedly in many students’ heads. Sometimes I wonder if the pressure to pursue “extra-curricular activities” actually discourages less confident or rebellious students from getting involved. The shame of it is that engaging in activities often becomes more about impressing college admissions than finding pleasure and meaning in one’s non-academic pursuits. The focus on figuring out what colleges want to see is misguided; the more important question is: are you developing and exploring interests and hobbies that provide personal satisfaction and which will continue to enrich your life, even beyond college?

We engage in hobbies for a variety of reasons, but largely for personal fulfillment and to give purpose to our lives. It’s about choice, not obligation. Whether social or solitary, active or sedentary, philanthropic or artistic, the things we do that are individually meaningful can trigger the release of pleasure-inducing dopamine or lead us to form new social groups with people who share our interests. But one of the best things about hobbies is that it is never too late to discover new ones. Take it from me; last year I more or less traded in my running sneakers for cycling shoes. I signed up for a college counselor bike tour in southern California because it seemed like a great way to visit colleges, share the experience with colleagues and get some heart-pumping outdoor exercise. What I had not anticipated is that I would become hooked on cycling.

This summer once again I am participating in the college counselor bike tour. Our destination is to the south: North Carolina colleges and universities. Last year at this time I was marking off the days to the trip, filled with a mix of excitement and trepidation. New to cycling, I had concerns about keeping the pace, conquering hills, carrying my own gear and releasing my toe clips with sufficient time before a stop to avoid falling. I had premonitions of an embarrassing Arte Johnson moment, toppling over on my bike in a klutzy move reminiscent of the Laugh-In tricycle routine…a self-fulfilling prophesy.

With just 12 days until this year’s trip (and counting), I have no anxiety and feel only the excitement. I have already experienced the adrenaline rush that for me comes with the joy of cycling and sharing the ride with other adventurous counselors. Hobbies can also motivate us to challenge ourselves and improve our skills. I am a stronger rider today and therefore, more confident. I am happy to report that I no longer get stuck in my toe clips.

Many of my friends from last summer have also decided to participate again this year, anticipating another action packed week of great cycling, plenty of laughs and lots of support. The cycling trip takes us to Duke, NC State, University of North Carolina at Chapel Hill, Elon, Guilford, High Point, Wake Forest, Catawba, Davidson and Queens College. We carry our own clothes and gear, and stay in dorms; it will be as close as possible to a true college experience. I actually visited many of these colleges as recently as two years ago, traveling by bus with a group of independent educational consultants. Even so, it never occurred to me to pass up this bike trip. The cycling, the camaraderie, the exercise, and yes, the professional benefits inspire me. I always gain something new from subsequent campus visits, whether it’s a different perspective or the reinforcement of something I had previously learned. This time around my vantage point will be different; after all, I will arrive on each campus by the power of my well-trained legs, my bike and my determination.

There is no one path to uncovering our passions and interests. I first happened upon the counselor bike tour and took up cycling after reading a posting on a college related listserv. One’s interests are sparked through exposure, receptiveness to new things, a suggestion from a friend, but most importantly, through self knowledge and an understanding for what makes us happy. When the interest is genuine, the commitment and endorphins will follow. That’s what will get a college’s attention.

What China Can Teach Us about the Value of Liberal Learning

2011-06-16T07:57:00.000-07:00

Are American parents appalled or threatened by what author Amy Chua portrays as the excessively demanding Chinese approach to education and childrearing in her best-selling book, Battle Hymn of the Tiger Mom? Many of us defend our less-disciplined, more permissive style of parenting by citing the creativity and superior critical thinking skills that our approach fosters. Our children’s generation may lose ground to the Chinese on math rankings, but they will have the lock on thinking out of the box. Is this a fact or our convenient rationalization?

Thomas L. Friedman’s Op Ed article in yesterday’s (June 15, 2011) New York Times (Justice Goes Global), may throw that argument under the bus. The same Chinese culture that emphasizes rote learning over creative thought could be on the verge of a metamorphosis. Friedman points out that the person recently named most influential foreign figure in a China Newsweek special issue is not a powerful business executive or politician, but rather a popular Harvard political philosopher named Michael J. Sandel. How did a U.S. professor become a Chinese superstar? With the help of technology, Professor Sandel’s classroom is now virtual; his public television philosophy course series is available online and has gained popularity around the globe, even in China.

Sandel’s classes explore issues of morality and justice. Students are encouraged and expected to challenge, debate and reason with each other in the classroom. Access to Professor Sandel’s lectures has been greeted with much enthusiasm in China and elsewhere in Asia. Educators and students have begun to recognize the power of discussion-based learning and see the strong connection to creativity and innovation. In at least one Chinese university, the undergraduate education is experiencing a major reform that will incorporate deeper philosophical thinking, reasoning and debate into the curriculum.

Friedman suggests that questions of morality and justice are global issues which students everywhere can and are eager to discuss and debate on a deeper level. Even the Chinese have come to recognize the benefits of liberal learning, the responsibility to challenge and question, as a means to produce more innovative and creative thinkers. Kudos to China, though we shouldn’t treat too lightly the significance of this potentially radical change in the country's approach to education. We have already lost ground to Asia in the production of scientists, engineers and professionals in other STEM fields. What might it mean for U.S. productivity and leadership if China and other Asian nations adopt an academic model that will emphasize innovation too? I’m not suggesting that we obsess about U.S. world dominance. Yet we should not overlook the connection between critical and innovative thinking skills and economic security. These are the skills that will enable future generations to create and keep jobs and industry in the U.S.

Herein lays the value of a liberal arts education. A student’s major is almost irrelevant. The more pertinent factor is whether students are compelled to question, challenge, debate and think critically while exploring issues across a broad spectrum of disciplines. Though it is easy to comprehend why students in today’s economy feel a need to pursue a more concrete course of study directly identified as pre-professional training, in the long run the absence of the critical thinking piece will catch up with us.

So as we compare our parenting style to those of our Chinese counterparts, we should not assume too hastily that we have the inside track on creativity and innovative thought. Strict discipline will probably continue to be the childrearing norm in Chinese households. However, let’s not be lulled into a false sense of security about our creative edge. They just might not be too far behind in that department too.

You Think the Admission Process is Tough? – Just Ask the Dean!

2011-05-19T08:23:00.000-07:00

As parents of high school students who will soon embark upon or have just completed the application cycle, we tend to have a myopic view of the admission process. It is all about us (and hopefully our children are included in that plural first person pronoun). We succumb to the anxiety that the admission process can create, and pray that the outcome will be relief and joy rather than disappointment. Would it surprise you to learn that college admission folk are equally stressed this time of year? No, I am not naïve enough to believe I am preaching to a sympathetic audience. However, I think it is useful to see the colleges’ perspective in order to better comprehend how it drives their decision processes.

Eric Hoover, a staff writer for the Chronicle of Higher Education, addressed the topic of greater admission uncertainty in his May 8, 2011 article, “Admissions Deans Feel Crunched by the Numbers.” Through interviews with deans and staff at five colleges, Hoover explored some of the global issues confronting universities and how these institutions are managing in such uncertain times. The bottom line: colleges, like all businesses, must hit their numbers in order to survive. Any shortfall in enrollment, especially without a comparable reduction in costs, can have consequences with material implications for future financial health.

The question facing all universities today is how to instill predictability in a system that has become anything but certain. Larger waitlists and other strategies have been designed to counter the effects of the almost inevitable “summer melt.” Villanova, just one of many such examples, offered a waitlist spot to nearly 5,000 candidates, more than three times the size of its expected freshmen class. Colleges know that they have not finalized the class by the May 1 National Tuition Deposit Day. There will always be students who change their minds mid to late summer because they get off a first-choice waitlist, finally make a late decision after double depositing (which, by the way, runs counter to the National Association for College Admission Counseling’s Statement of Principles of Good Practice), or simply choose to withdraw due to late stage reservations or financial concerns.

So in addition to larger waitlists, colleges are pursuing strategies to discourage double depositing and to increase predictability, evidenced by Beloit College’s decision to increase its deposit fee from $200 to $500 last year. The result: the college’s summer melt shrank by 60%. In its quest for more certainty, Beloit also decided to capitalize on its reputation for having a quirky, offbeat culture. Rather than marketing to everyone, the college is taking the opposite tack; it makes no apologies for consciously not waiving application fees and actually discourages students who probably would not find Beloit the right fit. Theoretically this should be a win for the college while also benefiting students. Applicants are more likely to self select; they apply because they see themselves fitting in, not because it is an easy additional application to submit. With fewer, though more serious applicants, colleges like Beloit that are clear about who they are may have a higher admit rate. Yet they are hopeful that this will translate into a more robust yield too.

Others schools such as the University of Mary Washington in Virginia have adopted a strategy to seek out a group of less traditional applicants: transfer students. As community college enrollment increases due to students' personal financial limitations, colleges such as Mary Washington have begun to establish credit-transfer agreements with certain two-year institutions. The community college route is gaining respectability as a more cost efficient means to a four-year college degree and Mary Washington is capitalizing on that trend.

Land grant universities, which were established to educate in-state residents, are exploring new ways to counter severe budget cuts, including the enrollment of more out-of-state students who pay higher tuition. One university, Colorado State, has begun to offer three levels of scholarships specifically for non-residents who meet certain academic benchmarks. This tuition discounting strategy is designed to attract more out-of-state candidates who will still pay more than their in-state classmates, yet will have the opportunity to attend a desirable state university at a more reasonable cost.

Mr. Hoover’s research reveals ways that colleges are taking a more strategic approach to enrollment in order to effectively navigate an environment of uncertainty and re-focus their recruitment. How does this impact our students and us, as parents? As we help our children through the college admission process and also strive for greater certainty and less stress, making the effort to understand a college’s message, objectives and whether it is the right fit can also lead to better and more predictable outcomes for our kids.

Ten Trends in Higher Education

2011-03-28T12:09:00.000-07:00

The economy is limping along and college applications are up. What’s the connection? There may be none or perhaps the increase is driven by students’ concern about not having financial options. More likely the application trend is related to technology, the burgeoning use of social media in admissions and colleges’ obsession with creative marketing as a means to attract students. Whether or not the economy and college admission trends are correlated, both offer insights on what we can expect in the higher education realm in the future. In the absence of a crystal ball, I offer up what I see as 10 notable trends in admission and the strategic paths that colleges have begun to pursue.

- Ivy League and other highly competitive colleges are becoming even more selective, as the number of applications continues to rise at double digit rates. Preliminary reports released several weeks ago were startling, indicating that six of the eight Ivies will admit fewer than 10% of their applicants this year, achieving new all time lows. There are no signs on the horizon that this trend will reverse in the near term.

- Applications across the board are up substantially, despite the fact that the number of students applying has leveled off. Why are students applying to so many schools? The answer is largely that it is easy to submit multiple applications given today's technology, with the rise also fueled by the erroneous belief that more applications improve one's odds of admission. The list of colleges that use the Common Application expands each year and many schools are now making use of “fast” applications. Students are invited to apply by a certain deadline and colleges will waive the application fee AND the essay! What better incentive is there to apply?!

- More students are choosing to know and even commit as soon as possible, taking advantage of early decision and early action applications. Harvard, Princeton and the University of Virginia each recently announced plans to reinstate single-choice early action which they had abandoned just a few years before. Cynics see this move as a reaction to losing high achieving students, especially minorities, to other Ivy League schools that were able to hook desirable candidates earlier in the process. Expect to see the pressure to apply early continue, despite the fact that it may not be the right way to go for every student.

- Social media continues to change the way that students learn about schools and connect with others. Colleges today all have Facebook pages and are taking advantage of social sites to reach out to potential and admitted students. The corollary to this is that students need to be even more careful about what they post on these sites, even on their personal pages!

- The gap year is not just about college readiness anymore. Taking a gap year was literally a foreign concept just a few years ago and was far more common in Europe, but today many students seek outdoor adventure, travel and language study programs, community service, or work experience before pursuing their college degree. The number of organized programs, both nationally and internationally, has proliferated, and opportunities are available at many different price points. Students use the time to do good, mature and pursue something personally fulfilling. Most claim that these sojourns have tremendously enriched their college experiences.

- January admission is an idea that is catching on, and is one way that colleges are choosing to manage enrollment and fill the beds of students taking a spring semester abroad. Many colleges now offer January admission to students who might otherwise be waitlisted or rejected, and the list of schools is rapidly growing. University of Southern California, Northeastern, University of Rochester and the University of Miami are just a handful leading this trend. Students accepted to their dream school as a January admit need to ask themselves: do I want to go to this school even if I must begin mid-year or is it better to enroll for the fall at another college along with the rest of the freshman class? Some schools actually offer the option to start later. At Middlebury College in Vermont a February start date is by choice. By having a separate February admission pool, Middlebury hopes to encourage more to take a gap semester and explore a different type of experience before entering college.

- Enrollment management is here to stay. Colleges can no longer ignore the fact that assembling a class has major bottom line implications. As a result, schools are continually experimenting with new tools to attract and enroll students. Merit aid, also known as tuition discounting, is still the favorite carrot to garner the interest of students they hope will round out the class.

- Demonstrating interest is important to many colleges at all levels of admission selectivity (though many of the most selective do not track this). If yield is important, it follows that being able to gauge student interest is a valuable tool to colleges. Technology today enables colleges to track contact and to record every interaction that students initiate…even if and when they open the e-mails they receive from the school!

- The classroom is now virtual; online programs are proliferating, and not just at for-profit institutions. Just today Fordham announced that it is starting an online masters degree in social work. While online learning programs are primarily at the graduate level, it is only a matter of time before distance learning college degrees become more commonplace and gain greater acceptance.

- Dwindling government support is prompting public universities to question the value of state ties. Several are seeking greater autonomy, especially in the areas of tuition setting, procurement, and public/private partnerships. Flagships in Wisconsin, Oregon and Louisiana have proposed such separation, while the State University of New York (SUNY) frequently revisits the issue, especially in years when state support is cut. While many educators believe that eliminating a bureaucratic layer will reduce costs and improve delivery, critics are concerned that these moves will be detrimental to state systems as a whole. It’s not clear how this will play out, but I think we can expect to see some greater autonomy over the next few years.

You may have noticed that my list of 10 does not include ever-increasing tuition costs and the ongoing endowment pressures at the nation’s colleges. These are driving some of the other trends I've noted. Expect the higher education landscape to continually evolve as colleges develop new ways to manage admissions, their budgets and how they deliver their product.

School Counselors and Independent Consultants Working Together

2011-02-14T12:38:00.000-08:00

An article I wrote titled "School Counselors and Independent Consultants Working Together" was published last week in the New York State Association for College Admission Counseling newsletter. In the article I talk about the benefits of guidance counselors and independent consultants collaborating on behalf of students, yet I also seek to clarify the role each one plays and the value each brings to a student's college search process. Since I occasionally am asked the question, 'how is what you do different from what we can expect from the guidance counselor,' I have decided to share the article here in my blog.

When I began working as an independent educational consultant, I was admittedly naïve. It had not occurred to me that school guidance counselors might not welcome me with open arms. After all, weren’t we working towards the same goal, doing what we thought best for the student?

Today I have a better understanding for a guidance counselor’s position, though believe more fervently than ever that the relationship between school counselor and independent consultant should and can be collaborative. Within my own school district I have come to know and truly appreciate the challenges of the guidance staff. While I have the luxury to focus solely on the goal of finding the right fit for college and guiding students through that process, I recognize that college admission is only a small part of the school counselor’s responsibilities. Discipline, scheduling, transcripts and recommendations are not in my job description, and my case load is generally much smaller. Therefore, I can spend more time getting to know a student outside the school environment. This often leads to a more holistic picture of his or her personal as well as academic needs for a college experience.

Independent educational consultants are not substitutes for guidance counselors, but they can supplement what counselors provide. When guidance staff and IECs work together, the process runs more smoothly and effectively for everyone, most of all, for the student. So here are some thoughts that will hopefully foster a better understanding for the value that each offers, which can ultimately work to the benefit of the student.

- Guidance counselors often have the inside scoop on how students from their school fare in admission at specific colleges. IECs can benefit from this knowledge which only adds to the trove of useful data for compiling a college list.

- Independent consultants generally spend far more time on the road visiting colleges since their travel is typically not restricted by school calendars and district budgets. Many IECs visit at least 50 colleges a year. We can be a great resource for school counselors hoping to uncover lesser known gems that might perfectly suit a student.

- The better I do my job, the easier I make the life of the guidance counselor. I keep after students about deadlines, and parents often call me first with their questions and concerns. I hope and believe that this lightens the counselor’s load and alleviates some of the stress that builds as due dates near.

- Many IECs develop specializations, whether in learning disabilities, athletic recruiting, or performing and visual arts. Collaborating with someone who understands the nuances of particular programs will most likely result in greater success for the student.

A recent study done by Harvard University’s Graduate School of Education noted the rapid growth in the field of educational consulting. Up to 26% of seniors nationally now use an IEC to assist with their college planning process. However, the study also cautions parents and others to be wary of independent educational consultants who do not abide by certain standards and practices. IECs who are members of organizations such as NACAC, NYSACAC, IECA (Independent Educational Consultants Association) and HECA (Higher Education Consultants Association) commit to hold themselves to the high standards that their affiliations require. School counselors might want to advise families contemplating retention of an IEC to carefully check one’s credentials and affiliations before making a commitment.

Families retain the services of an independent educational consultant when they feel their child needs extra assistance, much in the way they hire a tutor for additional help beyond the classroom. We are all members of the same team. In this case, the objective is not about scoring a goal, but rather ensuring students have the best guidance and options for college.

Colleges Need to Change with the Times

2011-02-10T12:45:00.000-08:00

The financial health of colleges is looking up. Alumni giving and endowment returns are on the upswing so the future is rosy, right? Well, not quite. Though returns in 2010 averaged 12%, endowments are still around 20% below their 2007 levels. And since schools typically draw down 5% of their endowments each year to cover operating expenses, this 20% decline means less money to spend on students, whether for academic programs, financial aid or capital improvements. The solution for many colleges is to raise tuition, which is why the cost of attendance continues to outpace the rate of inflation. The question begging for a satisfactory answer is, how long can this continue, especially since the bill for a four-year college education is already out of reach for most families?

How did we get into this situation? The race to attract students has motivated campus upgrades and enhancements to surpass the competition. Ask yourself honestly: if you have visited college campuses recently, were you most impressed by the schools with new dorms, student centers, state-of-the-art labs and sprawling athletic facilities? Unfortunately all of this now comes at the cost of academic programs and the increasing debt load that students are carrying.

With the exception of the colleges and universities that still have large endowments to support their student populations (and by that I mean the size of the endowment per student), most schools will not be able to continue along their current paths indefinitely. They will ultimately price themselves right out of business if they don’t change with the times and differentiate themselves through their programs and offerings. Many colleges have already come to the realization that they cannot be everything for everyone. SUNY Albany, for example, is in the process of phasing out its programs in Italian, Russian, French, the classics and theater.

Why is this important to families? The college your child is applying to today may have a different profile and focus in the future. Perhaps never before on this scale has the business of higher education been so desperately in need of a restructuring. In a way, colleges are experiencing what many individuals have recently had to face. The world has changed; what we know and the skills we possess may no longer be relevant, and we are then confronted with the task of reinventing ourselves to survive. Just like individuals, colleges that possess self-awareness and succeed in capitalizing on their strengths are the ones most likely to adapt to the changing times by embracing a clear mission and vision.

So when you visit college campuses, try to look beyond the newly renovated and air-conditioned dorms that you can now find at New England schools where it is cold throughout most of the school year, or the fabulous athletic facilities with the climbing wall that your child will never use. Read in between the lines and listen closely to how a college conveys its mission, or whether it has one at all. What majors have been eliminated and what are they now emphasizing? Colleges are starting to realize that they are just like people. They have to be flexible and adapt to the times.

Awarding Institutional Funds - The Black Box of Financial Aid

2011-01-23T12:19:00.000-08:00

How colleges use their own institutional funds to provide assistance to students is often the black box of the financial aid process. Just consider the 500 or so private colleges and programs that make use of the CSS/Profile form to determine the allocation of institutional aid. If your son or daughter is applying to one of these schools or is currently attending one, then you may already be familiar with this comprehensive form that asks for multiple years of earnings and a full list of your family assets, including your home. But what you may not realize is that colleges pick and choose which pieces of this collection of data they wish to consider in the calculation of their applicants’ financial need. Colleges take advantage of a practice known as Professional Judgment. While the Expected Family Contribution (EFC) for federal aid purposes is standard regardless of the college, professional judgment allows schools some flexibility to set their own terms for distributing their institutional funds. This is one of the reasons that financial aid packages for the same student can vary significantly from college to college (that, and the fact that many colleges “gap” students, meaning that they do not fully cover demonstrated need).

Don’t waste your time trying to decipher the formula or determine which of your assets a college will consider. The process is far from transparent and few colleges actually disclose on their websites the factors that come into play in their decision making process. While admittedly I have not done an exhaustive search, Princeton is one of the few exceptions I have found. And for anyone interested, Princeton does not consider home equity in its calculation. As an aside, you might want to inquire with the financial aid offices on your child’s college list as to how they treat home equity in today’s economy, given that banks have made tapping that resource increasingly difficult.

So why is any of this worthy of mention? Understanding how colleges use financial aid formulas and why aid may vary from school to school can partially demystify an often perplexing process. It also underscores the fact that if you are applying for financial aid, you won't know what college will really cost until you have the award letters in hand. The bottom line is that it may be as important to apply to financial safeties as it is to include colleges where the probability of admission is high.

If cost is a factor for you, then hedge your bets by having your child apply to both public and private colleges, recognizing that the private option may turn out to be the better deal. How do you identify the financial safeties? You should approach it the same way you find right fit colleges. First, know that this is an art, not a science; there are no magic formulas so you won’t know for sure until your child is accepted and receives an aid package. So start by understanding your student’s chance of being accepted. The more desirable he or she is as a candidate, the more likely the school will be generous with money. The most obvious way to get a preliminary idea for one’s chances is to compare grades and test scores to those of the average student admitted.

Recognize that schools which state they fully meet demonstrated need are less likely to gap. However, keep in mind that for colleges using either the CSS/Profile or a proprietary form, the specifics of their calculations will not likely be disclosed to you. You can, however, make use of resources such as College Navigator to get a sense (not an assurance) for how generous your child’s college choices are likely to be with need-based aid. You can search colleges by name and look at the net price for different income ranges. The major shortcoming, however, is that there are virtually no details for families making above $110,000 annually, but the website can still provide some insights into what students pay.

While the lack of transparency makes it tough to project your true out-of-pocket expenses when it comes to paying for college, there are ways to get a better handle on the probable cost. Approaching the financial aid process strategically will hopefully lead to more affordable choices and less disappointment in the final analysis.

Take Advantage of Education Tax Credits

2011-01-08T12:27:00.000-08:00

It's time again for the dreaded annual exercise of filing tax returns and financial aid forms. But I offer encouraging news for many taxpayers faced with college tuition bills and other related expenses. Buried in the year-end extension of the Bush-era income tax cuts was the far less publicized renewal of educational tax benefits. For taxpayers who meet the income qualifications, these benefits provide some welcome tax relief and should not be overlooked as you begin to prepare your 2010 tax return. Eligible taxpayers who pay qualified educational expenses will want to take advantage of either the American Opportunity Credit, a tax credit of up to $2,500, or of the $4,000 Tuition and Fee Deduction, depending upon which provides the greater savings given one’s particular tax rate and circumstances.

The American Opportunity Credit, which was recently extended through 2012, will permit taxpayers who pay qualified tuition and related expenses to claim a credit against their federal taxes of up to $2,500 per year per student. Here’s how it works: Taxpayers can reduce their tax liability dollar for dollar for the first $2,000 of qualified expenses, plus take an additional 25% on the next $2,000. If you have a tax credit which exceeds your actual tax liability such that you cannot use some or all the benefit, you are eligible to receive up to 40% of the amount of the tax credit, or a maximum of $1,000. As long as your income is $160,000 or less for married couples and $80,000 for single taxpayers, you can take advantage of the maximum credit. The credit is ratably reduced for higher income levels and fully phased out at $180,000/$90,000. In order to take advantage of the credit, married couples must file jointly. A parent claiming the credit must also be the person paying the expenses for the eligible student, which can be oneself, a spouse, or a dependent, provided no one else has claimed the student as an exemption.

Families might find that, depending on their tax rate, it is more beneficial to take the $4,000 tuition tax deduction. The deduction is a direct adjustment to income and can be claimed even if one does not itemize expenses for tax filing purposes. Many of the qualifications are the same as those for the American Opportunity Credit, including income levels and the joint filing requirement for married couples. Unlike the tax credit, the deduction is per taxpayer and is not calculated on a per student basis. Therefore the tax credit is likely to be more favorable than the deduction for families with multiple students in college.

Taxpayers who paid interest on education loans can also deduct up to $2,500 in interest expense, thereby reducing the amount of income subject to taxes in the year the interest was paid. As with the other benefits, proceeds of the loan must have been used for qualified educational expenses. Furthermore, the taxpayer must be the borrower on the loan. Income limits to take advantage of this deduction are $70,000 and $145,000, for single and married individuals, respectively.

If someone in your family, yourself included, was a college student in 2010 and/or you paid student loan interest, don't lose out on the opportunity to take advantage of these tax benefits. Consult a tax specialist to ensure that you receive the maximum benefit available to you.

The ABC's of Financial Aid

2010-12-17T08:57:00.000-08:00

It’s mid-December, two weeks away from the New Year. Many of us live by milestones that remind us how quickly time flies...birthdays, holidays, change of seasons. One of mine, I shamelessly admit, is the start once again of the financial aid cycle. With college applications hopefully finished or in the final stages, it is time to look ahead to the next set of deadlines, those for submitting financial aid forms. Bemoaning and complaining about the financial aid process is a yearly ritual. Yet it need not be so cumbersome and daunting. Familiarization with concepts, knowing deadlines and being organized is the key to successfully navigating aid forms and triumphing over the process. Here is my annual college financing primer which highlights some of the critical terms you will need to know.
The Cost of Attendance, or COA, refers to the total annual cost of college, not just tuition and fees. Don’t forget to factor in room and board, books, transportation, and other personal expenses when trying to estimate what a year of college will cost. College financial aid officers look at the total COA when they package aid awards. Come October 2011, colleges will be required to post the COA on their website.
The Free Application for Federal Student Aid, better known as the FAFSA, is used by colleges and universities to determine eligibility for financial aid. All students must file a FAFSA in order to receive any federal student aid. This includes the non-need based unsubsidized federally guaranteed Stafford student loans, so if you anticipate borrowing for college, you will have to complete the FAFSA. It becomes available online January 1, 2011 for the 2011-2012 school year at http://www.fafsa.gov/. Prior to filling out the form, both the student and one parent must each obtain a pin number which is in essence your electronic signature. You can register for a pin at http://www.pin.ed.gov/. Be sure to record your pin in a place where you can easily retrieve it for future use.
The Expected Family Contribution or EFC which is calculated from the information you provide on the FAFSA is the amount determined to be what the family can and should contribute to the cost of the student’s education. The EFC is based on the family’s current assets and prior year's income, including both the student’s and parents’ financial data.
After completing and submitting your FAFSA, you will receive a Student Aid Report, or SAR, which will show your EFC.
Nearly 600 schools also require that families complete the CSS/Profile form for the allocation of their institutional funds. The CSS/Profile is administered by the College Board and can only be filed online. Families can currently access the Profile for the 2011-2012 academic year by going to the College Board’s website: http://www.collegeboard.com/.
Now that you are familiar with these terms, there are some additional things that you should know about financial aid awards.
- Your “demonstrated need” (the COA minus your EFC) won’t necessarily be the amount shown on your SAR if the college also uses the CSS/Profile or another financial aid form. These methodologies are not the same, and therefore will produce different results. Institutions allocating their resources will naturally rely on the methodology that sets a lower threshold for your financial needs, so don’t be surprised if the aid package is less than you expected, even from schools that claim to meet demonstrated need.
- Colleges tailor the CSS/Profile formula to their specific institutional requirements. In other words, your demonstrated need may vary from school to school. For example, some colleges consider the equity in your home; others do not.
- The college offering the most financial aid may not necessarily be providing the best package. One has to look at the composition of each award. A financial aid package that meets need with grants which do not have to be repaid is far more attractive than one comprised entirely of loans.
- If your financial situation changes materially after you’ve filed the forms, such as loss of employment, you should notify the colleges immediately.
Lastly, be sure to visit the tuition and financial aid page of each school’s website (often buried in the Admission section) to check on requirements, deadlines and merit aid, if awarded. Meeting these deadlines is crucial. Since financial aid is a limited resource, getting things in early can make a difference. The sooner you complete the FAFSA, CSS/Profile and any other required forms, the better your chances of receiving financial assistance.

In Search of a Mascot

2010-11-18T10:54:00.000-08:00

During my recent visit to the University of Illinois Urbana-Champaign, our tour guide casually shared a small, though perhaps not so insignificant detail: the school has been without a mascot since 2007 when the controversial native Indian Chief Illiniwek was retired in response to NCAA sanctions. While I’m sure this is not news to the Big Ten fans among you (I am shamelessly showing my ignorance about big time college sports), this revelation started me thinking. Do spectators need a mascot to foster loyalty and pride in their teams and school? How does the absence of a mascot impact school spirit, sales of logo emblazoned clothing, and even the prospects for a winning season? The mascot-less Illinois football team is currently in 8th place in its conference, but it would be quite the stretch to point the guilty finger at the erstwhile Indian chief mascot who has been gone nearly 4 years.

What makes the University of Illinois’ situation so unusual is that nearly every college and university in the United States has a mascot, regardless of the size, athletic division, or visible school spirit. Yet Chief Illiniwek’s disappearance from the Urbana campus doesn’t appear to have had any dampening influence on university pride. That’s not to say that students aren’t lobbying for a new mascot. I was struck by the swarms of orange clad students all over campus, proudly displaying their loyalty by donning school colors.

Whether or not a college is noted for its school spirit, the mascot is a symbol that engenders allegiance and instills a sense of being part of a community. Mascots reveal a fun and lighthearted side of any college, including those better known for their academic rigor than their football teams. Whenever I visit my daughter at her small New England college, a school that would probably rank low on anyone’s list of “rah rah” campuses, I can't help but notice the ubiquitous display of logos and official school attire. This sight tells me that students feel connected to the community and share a bond with others who, like them, wear their colors proudly. Even in the case of Illinois, a university still in search of a mascot, its well entrenched traditions and pride have clearly outlived the demise of a symbol.

So here’s my point. Most colleges, with or without a mascot, successfully foster a sense of community among their students. School spirit is a term that has become synonymous with “rah rah," but in fact, it exists wherever students find common ground and come together as a community. The next time you visit a college campus, notice how many students are wearing their school colors and logo, and find out about traditions and activities unique to that college campus. And don’t forget to inquire about the school mascot.

College Costs - Achieving Greater Transparency

2010-10-30T11:10:00.000-07:00

Even in a down economy with inflation almost non-existent, the cost of a college education continues to rise at a shocking 5% a year for private colleges. It’s not surprising that more families are asking the question: can we afford this? Improved disclosure requirements under the federal Higher Education and Opportunity Act (HEOA) may not help you pay the bill, but they will take some of the guess work out of the process.

Until recently it had not been so easy to determine a school's true Cost of Attendance or COA, which includes all the expenses associated with going to college, beyond just tuition and fees. Fortunately for the college consumer, schools are now required to provide reasonable estimates for all costs, including books, travel and other personal expenses. HEOA also stipulates that colleges have until October 2011 to display net-price calculators on their websites. These calculators will enable families to obtain a ballpark estimate of the net cost to them, after factoring in the financial aid package they might reasonably expect to receive from the school.

For those who do not wish to wait until a year from now, there are ways to get closer to estimating the actual amount they will pay. One of the best sources is the US Department of Education’s College Navigator website: http://nces.ed.gov/collegenavigator/. This site provides a treasure trove of data pertaining to individual college costs and average financial aid awards based upon income ranges. Type in the name of a school and you will have access to the most current data reported to the U.S. government by the college. My only caveat is that you use these ranges as a guide; they are not a reliable determinant of what you will ultimately pay. Financial aid results are driven by a rather in-depth review of your personal data. Simply comparing your income to the school's posted ranges might be misleading, as income alone does not capture your full financial picture. You won’t know your actual out-of-pocket cost and the composition of the financial aid package until you file your aid applications and have the final award letters in hand.

The soon-to-be required net-price calculators will be an even more powerful tool for gaining an understanding of college costs. Colleges have the option to either build their own or use a template created by the federal government. At a minimum, the calculator must contain eight data elements designed to determine dependency status, estimate the Expected Family Contribution and approximate the COA. A handful of colleges, including Princeton, MIT and Purdue University, have gotten a jump on the task, and have already posted calculators on their websites. Even if your child is not applying to one of these colleges, you might want to play around with their calculators to get a sense for how varied your financial aid results could be from school to school.

Familiarizing oneself with the cost of college before a student actually applies will help families realistically adjust their expectations and target schools that are good fits both academically and in terms of affordability. The schools with the highest sticker prices might not be the most expensive after financial aid. Net price calculators which will be school specific should be reasonably effective in providing a ball park estimate. But as with many things, the devil will be in the details. You should use these tools to ensure that both financial and academic safeties find their way to the college list. Creating a list with affordable options will help everyone sleep better at night.

Demonstrated Interest - Making Your Intentions Known

2010-09-25T20:09:00.000-07:00

How important is it to let a college know that you really want to attend, beyond merely submitting your application? “Demonstrated interest” refers to any way in which a student reaches out to a college to show that the school is a top choice. Whether it is a campus visit, participation in an alumni interview, or reaching out to an admission representative, demonstrated interest is now a factor in the admission process for roughly 50% of the colleges that participated in a recent National Association for College Admission Counseling (NACAC) study.

Why has demonstrated interest become so important in the admission process? The short answer is, blame it on the economy. With colleges feeling pressure to manage enrollment, especially during times of economic uncertainty, the better they can predict who will attend, the more successful they will be at filling the class and generating tuition dollars. Furthermore, improved enrollment forecasts can benefit a school’s rankings. Colleges that both lower their acceptance rates and increase yields (the percentage of accepted students who actually enroll) are likely to see their national rankings benefit too.

The obvious next question is, what is the best way to demonstrate interest and which schools care? Applying Early Decision, of course, is a clear indication to the school that it is your first choice. Since Early Decision is binding, the college has no doubt that your interest is genuine. Other ways to show you are serious about a school is by visiting the campus, scheduling an interview, especially if the college recommends it, and contacting the admission representative who covers your region. Seeking the answer to a question that is not readily available on the college website is a great way to initiate contact. When you visit a campus, be sure to fill out the information form in the admission office so that your visit is duly noted. Some colleges will tell you outright that your expression of interest is a factor in their admission process. Either way, it does no harm to get on the mailing list and contact your regional representative, as long as your questions are thoughtful and not excessive...never stalk!

However, not all colleges and universities consider demonstrated interest in their admission processes. Wondering why you weren’t asked to fill out a form when you toured Yale? Not surprisingly, the most selective colleges do not factor in demonstrated interest and therefore do not record who shows up and who doesn’t. During a WSJ/Unigo webcast presentation (Unigo is the college search website that features reviews from current students), the dean of admission at Wesleyan shared that one-third of the incoming freshman class had not visited, interviewed or contacted the admission office prior to or after submitting an application. Her point: the school does not factor demonstrated interest in its admission process. Some colleges, including Duke and Stanford, will tell you outright that it makes no difference.

So how do you find out who cares and who doesn’t? It is not exactly the question you want to pose to the admission office, so play it safe, get on the mailing list and schedule that interview (on campus or with an alumna) if interviews are offered and recommended. A well posed question might win brownie points at the college that values your expression of interest. You have nothing to lose. Just don’t stalk.

A Commitment to Match Financial Aid - The New Ivy League Approach

2010-09-06T12:35:00.000-07:00

Paying for college is one of the most pressing concerns for families today, which is why I feel compelled to share ideas that may help families manage the cost. Followers of my blog have read my postings on the merit aid “arms race,” or how colleges use tuition discounting to attract the students that they especially want to enhance their class profile. However, a battle for exceptional students has now taken hold at the top tier of selective colleges: the Ivy League.

As many of you know, the eight Ivy League colleges, along with a handful of other highly selective schools, do not offer merit aid to students. Even those with mega-endowments use their financial aid resources exclusively for students who demonstrate financial need. This naturally figures; such colleges and universities have no trouble drawing top students, so there is no incentive to offer grants just to lure students away from other schools. Besides, merit aid awards run counter to the more important mission of access regardless of cost. Yet that does not mean that these toughest admit schools aren’t thinking about ways to compete with their peer institutions for students. With little fanfare, two universities, Cornell and Dartmouth, decided to go head to head with other Ivies, using financial aid for precisely that purpose. Both universities will soon match the aid packages that students are awarded by other Ivies and a few highly competitive schools too.

Back in 2007-2008, partly due to government pressure to spend their endowments on students rather than lose tax-exempt benefits, some 40 top tier schools dispensed with loans for the neediest students. Two universities with the largest endowments, Harvard and Yale, set an even higher bar in order to also benefit middle income families: At Harvard students with family incomes of less than $60,000 pay nothing, while those who make less than $180,000 have their costs capped at10% of their income. For Yale students, the income ceiling which allows students to take advantage of the 10% maximum out-of-pocket is a whopping $200,000. Cornell, having a far larger student body and much smaller endowment, is in no financial position to compete with such hefty aid packages for all of its students.

Yet not wanting to lose out on some of these gifted students, Cornell has found a way to compete without offering such generous awards across the board. Starting with the class enrolling for the fall of 2011, Cornell will match the offer of other Ivies to which the student has been accepted. Cornell has issued the same match policy for students accepted to Duke and Stanford. However, if your child happens be one of the students in this high class problem category, don’t expect Cornell to come to you. It is up to the student to approach Cornell to request the additional aid based upon the competing package.

Sure, this will affect a very limited group of students: those who are smart and lucky enough to be accepted to at least two Ivy League schools while also qualifying for financial aid. Yet the concept of competing aid policies does expand the notion of affordability of an Ivy League education to a broader universe of middle income families. The student who would choose Cornell or Dartmouth over Harvard will no longer have to factor cost or potential outstanding debt into the equation. This is a positive step forward for college affordability. But just so you don’t think I’ve completely taken leave of my senses, let me assure you that I am fully aware of the most difficult hurdle which remains: Getting in!

It's Mid-August - Must Be College Ranking Season

2010-08-17T15:59:00.000-07:00

Today the U.S. News & World Report published its annual Best Colleges 2011, the granddaddy of school rankings that students and their families too often use as the definitive source and arbiter for academic quality. Sure, USNWR provides a detailed explanation of its methodology as if to suggest transparency. Yet it still fails to convince this reader that the formula inputs offer anything but a highly subjective assessment that does little to assist students in finding schools that are the right fit and that will provide a meaningful and fulfilling college experience.

This year USNWR tweaked its criteria, with the most significant adjustment being the weighting of input from other education professionals. Though this now accounts for 22.5% rather than 25% of the total ranking, the methodology still places far too much emphasis on some subjective measure of a school's reputation. The good news is that only 15% is determined by administrators from competing institutions who I’m certain rarely if ever step foot on the college campuses they are judging. Even if they do, is this not a conflict of interest? For the first time high school guidance counselors have a say in the rankings and make up 7.5% of the 22.5% reputational factor. I am skeptical whether this actually helps students make informed college decisions. Most high school counselors know that students would be better served by considering fit over someone else’s opinion of a college’s place on a list that has questionable criteria.

Here is my question for every student and parent who feels compelled to look at the college rankings: what is there about this list of colleges and the way it is presented that gives you any insight about the academic strengths, the quality of life, the social scene, or the support services, academic and otherwise available at each school? I am not suggesting that all of the factors are meaningless. For example, I also believe that graduation and retention rates are important. However, a couple of statistics do not tell the whole story. The top schools on each of these ranking lists, for the most part, are all well endowed and can provide substantial need based aid. What about colleges of quality that cannot afford to be as generous with financial aid? In this economy many students are forced to take a leave from their education due to lack of adequate funds to pay tuition and support themselves through school. In other words, the economy is hurting retention numbers for some fine colleges that cannot spend as much as they would like on aid. My point is, too little information about what drives the numbers often leads one to draw the wrong conclusions.

But is it a “good” college? My own 17 year old has finally learned to stop asking me that question, though when she occasionally slips, she quickly recovers with, “I know, I know…don’t confuse selectivity with quality.” She’s finally catching on! Isn’t it curious that the colleges with the lowest rankings also have the lowest acceptance rates? The correlation between acceptance rate and a ranking which is supposed to order schools by some measure of “best” is especially troubling to me.

U.S. News & World Report is not the only publication to issue its assessment of colleges this month. Forbes.com recently published its list of America’s Best Colleges which has many surprises that will have you scratching your head, especially when compared with the USNWR rankings. And lets not short change Sierra Magazine’s current ranking of the Greenest Colleges. If you are not happy where your own alma mater ranks on any of these lists, be patient. Another ranking is sure to be released shortly.

The Three Year Degree - Ingenious or Falling Short?

2010-07-27T14:04:00.000-07:00

The cost of a college degree continues to rise. One might think this is incentive enough to get through as quickly as possible. On the contrary, the national average for students graduating college within six years is only 53%. While this graduation rate is disturbing, it does not tell the whole story. Some extend their stay to balance work and school, the former a necessity in order to be able to afford the tuition costs. Others have fallen victim to budget cuts and class schedule reductions, making it more difficult to register for and complete required courses on time.

Despite the trend towards extending one’s colleges years, programs are becoming more prevalent at universities around the country which offer the opportunity to earn a degree in three years. These programs are not for everyone yet their proponents claim that the benefits are multiple: students save on tuition, room and board, colleges achieve better utilization of their resources by offering classes year round and graduation rates improve.

With cost pressures driving many decisions today, several colleges, including University of North Carolina at Greensboro, Hartwick College in Oneonta, NY and the University of Illinois now offer a three year degree. To ensure timely graduation, these programs generally include priority registration and special advising to the students which enable them to adhere to a tight timetable and to stay focused. Bate College in Lewiston, Maine has offered the three year degree since 1965, yet to date few students have actually taken advantage of it.

Proponents cite the cost advantages for students and more rapid turnover for universities as students earn degrees in a shorter period of time. Those in support of these programs also believe they will force positive changes in curriculum as colleges seeks ways to cover a multitude of subjects in a more condensed time frame. This, they profess, will lead to a greater emphasis on inter-disciplinary learning.

The three year degree is clearly not for everyone. Students who benefit must be prepared to step onto the fast track. Often workloads are heavy and schedules require year round attendance to finish within three years. Are you prepared to declare a major after your first year? Forget the three year degree if you want to explore a variety of subjects before making that decision. It is also not a practical route for those who must work to support themselves through college.

Critics question the practicality of three year programs when students already have a tough time finishing in four. Three year programs also challenge the very essence of the college experience which goes beyond academics alone. Students who finish in three will have limited time, if any, to participate in extra-curricular activities and take part in many of the social aspects which some might argue are a primary component of college life. Students would also be forced to forgo pursuing courses out of sheer interest, since the truncated time schedule will restrict the ability to explore. Last but not least, some question whether the three year degree serves the needs of the market, where employers are placing new demands on college graduates. Having a specific skill is often not what those hiring really want to see. Today’s business leaders are redefining the necessary core skills for success, e.g., global and inter-cultural awareness, teamwork and problem solving skills, ethical reasoning, critical thinking and decision making capabilities. Will a rush to get through in three years short change students in these areas? There is no doubt that some serious curriculum re-design must be part of any trend to finish college in record time.

Tour d'Admission - My Reflections

2010-07-14T19:05:00.000-07:00

After months of anticipation and training, I find it difficult to believe that the southern California college cycling tour has come and gone, at least for this rider (a few of my colleagues have continued on for another week). The experience, not surprisingly, was about more than just visiting colleges. I anticipated good cycling, informative college visits and the pleasure of traveling with a group of likeminded, adventuresome college counselors. Even with that expectation, the high that I am still on, 4 days into my return, feels bigger than just the joys of a good trip. For the past few days I have been asking myself what made this experience so different from other college visits, vacations and travel I have done. Tonight as I sat down to write this posting, not exactly sure where I would take it, an answer came to me: I feel like I just had my own mini college experience.

On Sunday night, July 4th, 17 strangers came together on the campus of the University of the Redlands in the California town of the same name. We arrived in shifts throughout the day, got our dorm room assignments, and met suitemates and fellow cyclists. Once we were all settled in, we gathered for an outdoor “icebreaker” pizza party on an unseasonably cool night for July (June Gloom one month late, we were repeatedly told). We were also treated to the truly spectacular Redlands fireworks display, complete with skydivers and musical entertainment.

Still on east coast time, many of us retired early, spending our first of several nights in university housing. The following day we had to be awake and alert for our morning tour of the University of Redlands, followed by our first venture out on the bikes. I’m speculating that a good handful of us were a little anxious in anticipation of our first ride together, a 45 trip to our next destination, the Claremont Colleges. Remember the odd sensation of excitement mixed with nerves during the first few days of college? I guess you can say that some of us were experiencing those uneasy emotions all over again.

Over the course of the next few days we all found our “bike” legs and started to feel comfortable with each other. We were truly an eclectic group, coming from virtually every region of the country and bringing along a variety of backgrounds and experiences. However, we quickly came to appreciate our differences, quirks, and senses of humor. We stopped and helped each other when panniers fell off unexpectedly on the road, tires went flat, or in the case of yours truly, the resident diabetic, a stop for some sugar refueling was in order. Cycling on long, high traffic thoroughfares, through Los Angeles city streets at rush hour and up and down the Pacific Coast Highway, we learned what it meant to take responsibility for ourselves, as well as help and look out for others. Some of us sported scrapes and scars from minor mishaps (I took the award for most falls off the bike from a stationery position…those darn clip-ins!). One of our members gave the rest of us a good scare, ending up in the hospital with dehydration on the last night. We all heaved a sigh of relief the next morning to learn the cause of her fainting, and see her regain color and her smile. Unfortunately, she and another companion finished the last leg in a car rather than on bikes with the rest of us, but were there to meet us at each stop along the way.

I made wonderful new friends on this trip, just like my college experience, and we are already talking about our reunion at the annual NACAC conference in the fall as well as the location of next year’s college cycling trip. As I reflect on the past week and feel this amazing sense of accomplishment, I also think about the experience of going off to college. It’s about taking responsibility for oneself and sometimes for others. College is a time to learn and explore new things, as we did on our college visits, to make choices, individually and collectively, be flexible and open to the unexpected and seek the opportunities to expand one’s horizons. I’ll go out on a limb and include our farewell lunch at the In and Out Burger as just that type of mind and palate expanding experience!

We all recorded our trip with photos, mine taken on my Blackberry, and our trip has been immortalized in Jacques Steinberg’s NY Times blog, The Choice, which of course was a thrill for all of the riders. (http://thechoice.blogs.nytimes.com/ But the best part of this experience are the feelings and memories that pictures and blogs can’t fully capture. They are just the thoughts that make one feel good all over again when the mind momentarily wonders back there.

COWS Take on a New Meaning in Wisconsin

2010-06-29T13:48:00.000-07:00

In the world of college counseling, COWS have taken on a different meaning, even in the dairy farm state of Wisconsin. COWS is the acronym for Counselors Observing Wisconsin Schools, a college tour which traverses the southern half of the state and includes 5 colleges. The 5 schools are Ripon College, Lawrence University, the University of Wisconsin (Madison), Beloit College and Marquette University. These colleges have all been around since the mid-1800’s, and were founded just about the time that Wisconsin gained statehood in 1848.

Visiting so many colleges over the course of a year (50 or more), I frequently get the question, how do you keep them straight? Copious notes and the occasional photo on my Blackberry help, but the true benefit to visits and the best memory aid is getting a sense for a college’s mission, what sets it apart and, of course, what type of student would thrive. The facts I commit to paper. The feel of fit is something I get from seeing students, talking to members of the college community and trying to get a sense of the campus vibe.

More and more colleges are stating their mission on the website. A good mission statement will tell you right out what is important to the college community and what it hopes to do for its students. It’s worth taking the time to find and read it when you are exploring colleges.

So I start my tour recap with Ripon College, a residential college of 1,100, where two-thirds of the students come from within the state. Ripon’s mission emphasizes preparing students of diverse backgrounds (ethnically, if not geographically) for lives of productive, socially responsible citizenship. It is an intimate learning community where students truly receive a richly personalized education in the liberal arts. With a tag line of “More, Together,” Ripon fulfills its mission by providing a supportive environment that encourages students to get involved and support each other. Students that thrive at Ripon like the small, close knit community where they feel comfortable assuming leadership roles. The sciences are popular, as is history/government, communications and business. Greek life exists and attracts 40% of the student body, though the focus, not surprisingly, tends to be more community service in purpose. 35% of the student body is involved in Division III sports, which includes the newest addition, cycling. In fact, the new president, a big cyclist himself, has made a unique offer to the student community. Anyone who does not bring a car to campus gets a free bike!

Our journey took us next to Lawrence University in Appleton, a happening town of 70,000 with many interesting restaurants and entertainment venues. Situated on 80 acres along the Fox River, Lawrence, like Ripon, is relatively small with just 1,400 students. Yet despite the size, the college boasts a world renowned music conservatory which offers many of its hallmark programs. Love for music abounds, even among non-music students. Lawrence is also a residential college, a factor that is tied very much into the school’s mission. The college may be small, but that does not imply a homogeneous student body. 12% of its students are international, and 75% are from outside Wisconsin. Given this diversity in a small residential community, acceptance and appreciation for differences is expected and highly valued. Students sign a social code which provides the foundation for respecting others. They are self-described “quirky,” creative and open-minded. All are encouraged to do some type of independent study during their stay at the Lawrence. The student who thrives in this environment is ready to take charge of his or her education and shape it. At the same time, the college provides ample support to ensure that students succeed. In addition to music, popular majors include biology, psychology, English and studio art. 60% of students take advantage of study abroad programs built around their academic curriculum. Do not assume that Lawrence is just for artsy types. With 25% of students participating in 23 Division III varsity sports, their interests are as diverse as the student body itself.

Our next destination was the state capital, Madison, to tour the flagship University of Wisconsin. This is truly an urban university, though bordered by two lakes, Mendota and Menona, which provide a lovely lakeshore region to the campus. U of W is big: 41,000 students with 28,000 undergraduates. There are over 750 clubs and activities and no shortage of things to do, both on campus and in the city. The 8 undergraduate colleges and schools include the College of Letters and Science, College of Agricultural and Life Sciences, School of Business, School of Education, College of Engineering, School of Human Ecology, School of Nursing and School of Pharmacy. Students are admitted to the university rather than to a specific program, and complete at least 2 semesters before applying to a program of study. How do students create a sense of community in such a large academic setting? Students find ways to make the university more personal through clubs they join, their classes and as part of residential life. The university does offer Residential Learning Communities which allow students to live and study within their place of residence. It goes without saying that sports are BIG at Wisconsin. Camp Randall stadium is home to the Division I varsity football team. There are 22 other Division I sports which also draw the crowds. Students at the University of Wisconsin, Madison know how to have a good time. Yet they are also active, involved citizens of the Madison/University of Wisconsin community, with a passion for their causes.

We left the hustle and bustle of Madison and drove southeast to the far more serene town of Beloit, just north of the Illinois/Wisconsin border (90 minutes from Chicago). Beloit College is small with only 1,300 students, but homogeneous it is not. Most students are from outside Wisconsin, hailing from 48 states and 47 countries. Such diversity forces students to get to know people different from themselves, though this is not a chore. After all, Beloit students chose the college for a reason. Beloit curriculum is writing intensive. There are no core courses, but there are distribution requirements. Beloit believes that its First Year Seminar Experience is unique, though others have tried to copy it. Students are free to choose any one of a selection of topics that will challenge them to think critically, articulate their thoughts verbally and in writing, while interacting with a small group of classmates as they explore the topic. Known for its exceptional anthropology program, Beloit is also strong in modern languages, and offers Japanese, Chinese, German, Spanish, Russian, and French. An intensive summer language program also includes Arabic.

What sets Beloit apart? It is amazingly diverse for such a small school in the Midwest. Teachers primarily teach, but also do research with students. Everyone is on a first name basis. Student-centered is the phrase frequently repeated. The feel of the campus from both faculty and students is open, laid-back and casual. Relationships among students and faculty are central to this community, and they endure beyond graduation. Students who thrive at Beloit want to question and challenge. They are engaged, opinionated, politically active, liberal and have a multiple of interests. It is not uncommon for students who choose to double major to pick two subjects that are seemingly unrelated. The student body has a real say in what goes on. There is room to take risks, but the atmosphere is at the same time nurturing. Many students take advantage of the free tutoring offered.

Our last stop before flying home was the city of Milwaukee, home to Marquette University, one of 28 Jesuit higher education institutions in the country. Located in the heart of the city, Marquette is defined by its diversity, urban setting and Jesuit connection and traditions.
Founded in 1881, it is the newest of the 5 schools we visited, though still steeped in history. The center of campus is home to the 15th century St. Joan of Arc Chapel which was dismantled, transported to the U.S. from France and gifted to the university in 1964.

Marquette’s 12,000 students come from all 50 states and 70 countries. About 60% of students are Catholic, though students say that religion is present, yet not imposing. The 8,000 undergraduates are each enrolled in one of the universities 7 colleges which include Liberal Arts, Business, Engineering, Education, Nursing, Communications and Health Sciences. The application process is the same for all students, yet applicants specify which school they wish to attend and may include their second choice. Even after enrolled in a specific college, students throughout the university must complete the same Core of Common Studies. There is a highly selective Honors Program of fewer than 500 students. Sports are very important at Marquette. A Division I Big East Conference member, Marquette’s basketball team always draws a crowd. The school has neither football nor baseball, but that doesn’t seem to do much to dampen school spirit.

Who thrives at Marquette? Students who feel a strong connection to the university really care about community and the Jesuit ideals of caring for the whole person. Overall, students are academically motivated, yet very well grounded.

Whether it is the Midwest location or coincidentally, a core element of each school’s mission statement, the importance of a unified community comes through loud and clear on all of these campuses, despite how different they appear. Students feel connected and valued. When exploring colleges, read the mission statement and ask yourself if it speaks to the essence of what defines the school's philosophy and approach to the academic and social experience. A closing and noteworthy point: all of these colleges, especially the private institutions, offer fairly generous merit aid to qualified students, another reason they are worthy of a closer look!

Balancing Education Dreams with Smart Debt Decisions

2010-06-14T09:52:00.000-07:00

I have transgressed from topics related to financial aid during the past few weeks, but want to return to the issue of affordability, college choice, and financial responsibility. This is now a perennial subject for the press, which is not surprising given the high and unabating cost of college, mounting student debt averages, and the state of the world economy which shows no signs of returning to good health any time soon.

The New York Times published an article by staff writer Ron Lieber on May 28, 2010, “Placing the Blame as Students Are Buried in Debt.” In this article, Mr. Lieber addresses the borrowing-to-pay-for-college dilemma by following the travails of a 26-year old woman who graduated from NYU with nearly $100,000 in college loans. When she chose NYU eight years earlier, she and her mother were determined that she should attend the “best” college, never factoring in the debt repayment burden upon graduation. I put “best” in quotes to emphasize the frequent mistake people make by equating quality and selectivity. This confusion often leads families to pick colleges based primarily on name recognition, without considering numerous other critical factors such as cost, fit and yes, academics.

Having amassed a hefty sum of private and federal loans, the young woman chronicled in Lieber’s article now finds herself in a situation where she does not earn nearly enough to meet her monthly loan payments. She, like many others, went heavily into debt to pay for college, never considering whether the nearly 6 figure investment in her education would yield a return that would make it worthwhile.

Who is to blame? The banks made loans available with little or no credit checks, the student borrowed without projecting her ability to repay the loans, and neither the university nor the banks counseled her on affordability before she amassed so much debt. Sounds vaguely like the sub-prime mortgage crisis, but with one major difference: the way the law reads today, student loans cannot be discharged in a bankruptcy. In other words, the borrower remains on the hook, even if he or she files for bankruptcy.

Curiously, NYU was one of the few universities in the country last year which actually took the initiative to contact families about debt before students enrolled. The university called 1,800 families who qualified for financial aid to ensure that they were aware of the debt they would likely have to incur. To the school’s surprise, this outreach effort had no impact on the enrollment rate. As a result, NYU ceased with such calls this year, though the university still struggles with how to best advise families on borrowing and paying for college, as well as where its counseling responsibility ends with respect to affordability.

In my view, every party here ought to be held accountable. However, the student and family will be the ones left paying back the loans, so the bulk of the responsibility lies with them. Am I implying that borrowing for college is a bad thing? Absolutely not! Financing a college education is a worthwhile investment, provided the ultimate return on that investment is positive. How does one assess that, especially before one has even decided where to enroll? One of my favorite college financial aid resources is the website http://www.mappingyourfuture.org/. This website offers a myriad of useful information, but one of its best features is the calculators which enable you to project forward and estimate future debt payments, based on expected borrowing and interest rates. One of the calculators even suggests what someone would need to earn monthly to comfortably pay back his or her student loans. Other resources such as the Bureau of Labor Statistics site (http://www.bls.gov/) provide average salaries by region based on occupation. Students who have an inkling about what they want to do when they graduate can get a sense for how much they can expect to earn. Both these resources are good starting points for understanding affordability with respect to borrowing for college.

Before you choose a college based on name recognition alone, especially if you will need to borrow, understand the potential financial responsibility after graduation. As I have recommended in prior postings, financial "safeties" or college options that are likely and affordable, are as important to put on the college list as schools deemed to be an academically secure admit.

A Novel Way to Visit Colleges

2010-06-08T08:28:00.000-07:00

The process of deciding where to apply to college often begins with well-meaning suggestions from family and friends. They all have the perfect school in mind for you! Yet the key to finding colleges where the fit is right is to do your homework and research the schools. Then take a road trip. College visits are the best way to get a sense for life on campus and whether a college or university provides the academic and social experience that makes a student say, “I know I could be happy here.” Exploring college campuses can be fun as well as informative. Take it from someone that knows; as an independent educational consultant who visits fifty campuses a year, I am always excited to experience that “aha” moment when I see a college that I sense will be a great fit for a particular student.

Independent and school counselors regularly take to the road to expand or update their knowledge of the many higher education options available in order to best match students and colleges. Throughout the year, but especially in spring and summer, consortiums of colleges organize campus visits designed specifically for counselors and educational consultants. Anywhere from a few days to a week’s time, we zigzag across states by bus, with the hope of getting a firsthand look that will better enable us to understand the essence of a college and therefore, know whether a school would be a good fit for a student.

This summer a group of counselors from across the U.S. will come together in southern California and tour colleges by less conventional means: on bikes. Why not take a bus, car, or train, you might ask. These 19 hardy souls, myself included, are looking to combine a professional objective, expanding our college knowledge, with a host of other goals that include satisfying a love for cycling and physical exercise, camaraderie, personal fulfillment, and last, but not least, for fun. I would be disingenuous if I declared that I held a long-term passion for cycling. In fact, prior to officially committing to the tour a couple of months ago, I had not been on a bike in years. But embracing the challenge to train and the desire to see colleges in a novel way was all the motivation I needed.

On July 4 the group will gather at the University of the Redlands, about 65 miles east of Los Angeles, where we begin our journey. The first order of business will be to rent bikes, followed by the installation of racks and panniers to store our clothing and gear for the week. Yes, much to my chagrin, there is no SAG vehicle bringing up the rear (an Internet search taught me that the acronym stands for Support and Gear), which would carry our stuff and come to the aid of riders in need of assistance. I will learn the true meaning of “packing light” knowing that for one week’s time I will serve as my own pack horse.

Our travels take us to 14 schools including University of the Redlands, the five undergraduate colleges that comprise the Claremont Colleges consortium (Claremont McKenna, Pomona, Pitzer, Scripps, and Harvey Mudd), University of LaVerne, Azusa Pacific University, the University of Southern California, Cal Tech, UCLA, Occidental, Pepperdine and Loyola Marymount. We will cycle 30 to 50 miles a day, stopping at each campus long enough to learn about the schools and get a sense for the academic and social communities. Our last stop each day will likely be our place of rest for the night, and since our accommodations will mostly be in dorms, we will truly get a firsthand college experience.

I am stepping up my training as I count down the weeks to the “College Tour de California.” I am looking forward to the trip with great anticipation, but I am also excited about the prospect of meeting with students when I return. I know there is a good chance I will discover just the college that will make me want to say to a student or two, “I’ve got a great school in mind for you!”

Competing in a Global Society - Change the Educational Model

2010-05-30T15:28:00.000-07:00

Are U.S. schools preparing our students to compete in a global society? According to Tony Wagner, co-director of the Change Leadership Group at the Harvard Graduate School of Education and someone I had the privilege to hear speak a few weeks ago, even the most elite of our K-12 educational institutions are not teaching our kids how to succeed in today’s world. His interviews with corporate executives and firsthand observations in classrooms at some of the country’s most prestigious high schools led Dr. Wagner to conclude that the U.S. suffers from The Global Achievement Gap. This also happens to be the title of his most recent book. The way our students are taught in school leaves them ill-prepared to succeed in today’s workplace.

One of Wagner’s more profound influences was journalist Thomas Friedman, and specifically his book The World Is Flat. Friedman’s premise struck a chord with Wagner: any job that is routine will eventually become obsolete either due to outsourcing and/or technology. Haven’t we already experienced this phenomenon and seen some dramatic changes in the labor landscape during the past few years? Though partly accelerated by the recession, job loss has also been a function of more fundamental changes in our work environment. Those who succeed are nimble and creative thinkers, i.e., adaptable, entrepreneurial and embracers of change.

What does that imply for the way we should be teaching our kids? Success is no longer about what we know; it’s about how we think. Yet the focus in the classroom is still about test taking. Students are not encouraged to ask questions for which there may be no clear answer. They are evaluated on right answers, rather than creativity and inquisitive thought. Until we shift the focus, we will fall further behind other countries in productivity and innovation.

Such profound change rarely comes easy, but Dr. Wagner proposes 7 key survival skills for careers, college and citizenship which he asserts are imperative if we are to begin to reverse the U.S.’s slide vis-à-vis our foreign competitors. In a nutshell, students today need to learn how to think critically and problem solve, work collaboratively across networks, be agile and adaptable, take initiative and be entrepreneurial, communicate effectively, know how to access and analyze information and lastly, have curiosity and imagination. Though you may think much of this sounds familiar, we still fail to properly teach these skills, in school, leaving our kids ill-equipped when they enter the workplace.

Critical thinking is really about asking good questions, evaluating different points of view, and seeing the connections of cause and effect. It is not about knowing the answers. The shortcomings of AP exams are a case in point. There are no essay questions on these exams. The test is graded (one to five) on the accuracy of the regurgitation. As Dr. Wagner points out, the tendency is to teach content, not competencies.

Successful people are those who embrace Wagner’s 3 C’s: Critical Thinking, Communication and Collaboration. They are also willing to push boundaries. Creative risk taking leads to innovation, which is increasingly important as change comes faster and faster. Did you know that Google gives and expects every employee to spend 20% of his or her time just messing around, free thinking while not working on any specific project? What Google has discovered is that this is how its most innovative ideas are developed. Imagine such an approach in our schools!

How should we adjust our thinking as parents? How we hold ourselves and our institutions accountable must shift to outcomes. The measure of accomplishment for our schools should no longer be making the grade by sending more students to highly selective colleges. Seeing more students graduate and with the tools that they need to succeed is the more meaningful yardstick. No one says it will be easy to make such wholesale changes to our educational institutions. However, recognizing that we are not adequately preparing young people for today's world is certainly a start.

Canadian Universities - A Great Find North of the Border

2010-05-21T11:24:00.000-07:00

Nearly a year ago I posted a piece about the benefits of going to college in Canada. I cited reasonable cost and proximity to the U.S. (at least the northern states), as well as the opportunity to experience a truly international academic environment. My comments on the great value of Canadian universities were based on what I had learned, yet not firsthand knowledge. Last week I had the opportunity to test the accuracy of my impressions; I spent 3 days touring 7 universities in the province of Ontario. I came away even more convinced that Canadian universities provide a high quality and affordable option to students who are motivated, directed and those who desire the international diversity that such an experience offers.

My Canada excursion began on a Sunday which also happened to be Mother’s Day (it was not my preference to be away from my family, but college tour buses do not wait!). First point of note: it is so easy to get to Toronto! Just one hour flying time from the New York City airports and a 20 minute drive into the city made the outbound travel experience far easier than even going to the Midwest. For full disclosure I must note that long U.S. Customs lines in Toronto on the return were aggravating, however a frequent Canada-U.S. traveler standing behind me provided assurance that this was unusual.

But enough about the travel; more importantly, how do Canadian universities compare to U.S. colleges and what type of student would thrive at a school north of the U.S. border? Canadian universities share some common characteristics with each other: they are predominantly public, large by our standards (25,000 is an average size university), research oriented, big on pre-professional programs, and many have co-op learning options (students incorporate and get academic credit for paid work experiences in their course of study). What we label academic departments or programs, the Canadians call “faculties.” Much like in the U.S., students choose a university based upon fit, both academic and social.

For example, the University of Waterloo is well known for its engineering (13 separate disciplines) and math faculties, though the arts (more or less the equivalent of our liberal arts) still draw the largest number of students. The university appeals to students who are innovative, unconventional, and seeking ways to find connections to the world. Did you know that the Blackberry was invented at Waterloo? With greater insight into Waterloo’s academic approach, this no longer comes as a surprise. The university is also proud to tell visitors that all intellectual property belongs to the student, not the school. It’s no wonder Mike Lazaridis, Blackberry’s inventor, gives back generously in time and funding to his alma mater.

If artistry is your thing, Canada’s oldest art school, Ontario College of Art & Design, is an exciting learning environment in the heart of the vibrant city of Toronto. The school is not focused on job training for careers in the arts, but rather educating young people to develop their thought processes, be problem solvers as well as socially responsible citizens, using art and design as the medium; I would call it a cerebral approach to teaching fine and visual arts. Those who thrive at OCAD are artistic, curious, involved in their communities and enjoy the challenge of looking at the creative process from a more intellectual perspective.

I was also pleasantly surprised by Ryerson University in downtown Toronto, a school of 25,000 primarily catering to undergraduates. Talk about diversity: there are 142 countries represented among the students! With a strong pre-professional focus, Ryerson notes that faculty members work in their fields; they do not just teach. There are numerous strong programs, too many to list here, but it is probably fair to describe the university’s vision as discovering ways to marry innovation with the business of whatever discipline one chooses to study. Communications and media are big. If what you want is a focused, pre-professional education, this might be an excellent option.

For those who want the feel of a prestigious UK institution, yet prefer easy access from the States and a more likely chance of admission, the University of Toronto might be just the ticket. Stepping onto the St. George campus with its ivy covered buildings is like being transported to Oxford or Cambridge. It is big (50,000 undergrads, 20,000 grad students on two campuses), but the residential college system, similar to that of Yale and those hallowed institutions across the pond, allows students to feel connected to a community, even in a very large university. Students choose the University of Toronto for its 14 professional faculties (especially strong in engineering and music, but others are equally renowned) and its excellent research opportunities. I am personally indebted to this top notch research institution, for it is here that insulin was invented. This academic powerhouse is part of a cosmopolitan city rich in culture and diversity, with fabulous eclectic cuisine, and sports and athletic venues. Who thrives here? Students at U of T are mature, independent, and want the diversity and vibrancy of a city school community. As with many of the Canadian universities, classes, especially for introductory courses, are very large. Motivation and self-discipline are critical factors for a student’s success.

It would be a serious oversight if I didn’t comment on one of the best things about Canadian universities for foreign students: the cost! Most programs are less than $30,000 a year, and that includes the full cost of attendance. Furthermore, U.S. students attending many Canadian universities can take advantage of the U.S. federal student aid loan programs, as well as federal tax credits. Many of these universities also offer merit aid to academically deserving students.

For those of us raised in the U.S., we too often associate scholarship with the Ivy League and other prestigious American colleges and universities. My recent trip to Canada confirmed my hunch that we should consider looking beyond our borders to discover academic gems. The scholarly environments offered by many Canadian universities make them a very appealing option for students in search of a major research university where a top notch education can be had for a relative bargain.

Picking a College - One Student's Approach

2010-05-06T12:06:00.000-07:00

When Kira, a National Honors Society student and gifted athlete was thinking about college, she decided to take a less traditional route than that followed by many of her fellow schoolmates who dreamed of admission to highly selective New England colleges. As a junior living in Westchester County, NY, Kira knew she was ready to broaden her horizons and to meet people outside the northeast who had different life experiences. She also engaged in early conversations with her parents about affordability, right fit (academically, socially and financially) and family values. While Kira’s parents let her know that the choice was ultimately hers, they openly spoke about cost and value, sharing their thoughts on strategies to find schools that matched on all fronts, including financial.

In today’s tough economic times, many families are seeking ways to make the cost of college more manageable. Having the conversation with teenagers about college cost and affordability is usually not easy, especially when young people have their hearts set on an expensive and highly selective school that does not offer merit aid. Many families in affluent Westchester County do not qualify for need-based aid. However, that does not necessarily mean that the cost of college is something they can comfortably afford. Some will decide to take out substantial loans which may put serious pressure on future cash flow, both for the students and the parents.

Kira’s family took a different approach and one that I frequently advocate: have the conversation about affordability, perceived return on investment and family values early, know what the options are, understand what’s important to everyone involved, and know if and how you can afford to pay for it. When families talk through these issues early and develop a sound strategy, the outcome is more likely to be positive.

Kira’s experience is one example of how that approach successfully played out. She has just completed her freshman year at Washington College on the Chester River on the eastern shore of Maryland and is thrilled with the choice that she made. She attributes her success in finding the right fit to the methodical and thoughtful way she went about her search. Having made the decisions to look beyond her backyard and the northeast, Kira and her parents headed south, starting in New Jersey, and visited campuses of various sizes to get a sense for what felt comfortable. One thing Kira quickly realized, coming from a small high school, was that “small” by college standards could still feel large to her. A class of 400 to 500 students was still double or triple the size of her high school class. She also did her homework on colleges that offered merit aid and knew that as a strong student, she would be eligible to receive money from several schools. While she is a competitive soccer player, Kira was aware that the Division III schools on her list would not pay her to play in keeping with the NCAA rules.

Kira ultimately narrowed her list down to eight colleges, and included SUNY Binghamton so that she would have an in-state option. The cost of attendance at the SUNY schools is about one-third the cost of many private colleges and universities. In the end she was admitted to all eight: Loyola College in Maryland, Elon University, James Madison University, Wofford College, College of New Jersey, St Mary’s College of Maryland and Washington College. Three of the six private colleges (Elon, Wofford, and Washington) did indeed offer her money. Fortunately, those that gave merit aid included two of her top choices, Elon and Washington. While Wofford’s aid package was substantially higher (and in Kira’s words, “very tough to turn down,”) she knew that the money offered by Washington made this a better overall fit when considering all factors. As a member of her high school’s National Honors Society she received $10,000 per year from Washington, as well as a sizeable annually-renewable Hodson Trust-Beneficial Merit Scholarship. However, the big surprise was her selection for the recently established Presidential Fellow Program which put her together with a group of 30 other accomplished freshmen who share this distinction. The fellows in this program take advantage of specially organized and wide-ranging activities and events, which include dinner with the college president in his home, a behind-the-scenes tour of Mount Vernon, the home of George Washington and a trip to the Maryland State House for private meetings with legislators.

Kira’s satisfaction with her college choice is not just about the money and the fellowship honor. She is loving her experience at Washington College for all the right reasons: the fit could not be better. She relishes the camaraderie she has found with her soccer colleagues, the quality of the courses, the small class size (even for required freshman seminars) and support she gets from both professors and coaches, especially while she balances both academics and a sport, and the student diversity of experience and socio-economic background. One of the things that did surprise her about the college is the emphasis on writing, which Kira said is intensive and required for all classes, including math courses. Though she describes the writing requirements as demanding, she knows she is learning excellent skills and habits that are essential to whichever career and life path she chooses. Kira has so embraced the WAC experience, she is now also a tour guide for the Admissions office.

Kira’s strategy for her college search and her positive experience once on campus will hopefully inspire others to think out of the box when identifying and selecting a good college match. Finding the right college fit means focusing on many factors, and that means thinking broadly about identifying excellent financial options too.

Vermont Colleges - Something for Everyone

2010-04-28T10:59:00.000-07:00

Many people assume that April is not the best month to visit Vermont. The snow begins to melt, giving way to muddy fields and trails. But travel to Vermont in April is exactly what I did last week with a group of 37 high school and independent counselors, along with 4 Vermont college admission officers who served as our guides. We visited 17 schools in a 6-day college tour that took us up, down and across the Green Mountain State. What I discovered is that Vermont is truly beautiful year round, not just in winter, summer and fall. It is also home to a group of colleges and universities that provide a broad spectrum of wonderful options in higher education.

Our trip yielded many surprises and discoveries, starting with the variety and breadth of educational opportunities that this state with fewer than 700,000 year-round residents has to offer. Vermont truly has something for everyone, so it should come as no surprise that it attracts students from all over. The majority of those enrolled hail from beyond Vermont's borders. Whether you are looking for a flagship public research university, a military college, pre-professional programs, a work and service learning experience, a school devoted to students with learning differences, top liberal arts, or state colleges that offer unique programs and financial value even to out-of-state residents, there is a good chance that you will find a school that meets your needs in this beautiful northeastern state.

The unique qualities and programs of each school were fairly easy to keep straight, but I also began to notice some characteristics that were common to nearly every college we visited, beginning with the shear beauty of each campus. Mountains, lush hills and lakes define the landscape, even for the colleges situated in the heart of Burlington, the largest city in Vermont and a thriving college town. The second thing that struck me was that nearly all of the colleges we visited offered a liberal arts core education, yet each with its own clearly articulated approach that made the experience distinct. Lastly, the Vermont schools share an appreciation for the environment, whether it is just a part of the collective consciousness or an integral component of the curriculum. This, after all, is the Green Mountain State.

So after 17 colleges in six days I am challenged by the task of conveying a sense of each school, in a few hundred words or less (not unlike staying within the word count limits on the Common Application). Here are some quick thoughts and observations, and why they might be choice picks:

University of Vermont (10,000 undergraduates, 2/3rds out-of-state) - Best small liberal arts feel in a major public research university; No concerns about classes predominantly taught by teaching assistants as undergrads dominate the student body here; It's all about them! Offering sound programs in all of the liberal arts, UVM is also known for its Business, Nursing, Education and Engineering.

Burlington College (170 free spirited students) - Where artists and activists shape their own hands-on liberal learning; Popular courses of study include Cinema Production & Film Study, Fine Furniture Making, and Transpersonal Psychology. While tiny by most standards, Burlingon College's community is part of the larger Burlington cityscape. Additionally, it is a member of a three college consortium with Saint Michael's and neighbor, Champlain College.

Champlain College (2,000 students) Top choice for an academic experience that uses liberal arts as a lens to view real world issues and practices; Its unique Upside Down Curriculum has students engaged in their major course work starting as early as the first year. Majors fields of study include Communications & Creative Media, Information Technology and Sciences, Education & Human Studies, and Business. Within thes broad areas, Game Programming, Digital Film Making, Graphic Design and Digital Forensics are popular.

Bennington College (750 students) - “Interdisciplinary” is more than just a buzz word here; This is the place for the creative and independent student who wants to design his or her own interdisciplinary plan of study and put critical thinking into practice. Student-faculty relationships are more central to the experience than at other colleges, with weekly advisory meetings. Fine and performing arts, languages, as well as creative writing and architecture are big draws.

College of Saint Joseph (450 students) - Where a small and nurturing environment caters largely to first generation college students who seek to blend theory and practice. Students enjoy the security of a small campus with internship opportunities and an emphasis on pre-professional studies, i.e., Criminal Justice, Business, Education, Human Services and Sports Management.

Green Mountain College (750 students) - Top choice for the environmental liberal arts experience and one of 5 colleges in the Eco League of Environmentally Aware Colleges; At Green Mountain, reducing the carbon footprint takes on a whole new meaning. Popular academic programs include Environmental Studies, Resort & Hospitality, Biology, Education and the Arts. It is one of two colleges in Vermont with a working farm managed by students.

Saint Michael’s College (2,000 undergraduates, 80% out-of-state) – A small fully residential college with a big perspective on community; This Catholic institution prides itself on the close-knit campus and the students' celebration of differences. Communications, Journalism, Business, Education and English Literature are popular majors at this test-optional college noted for strong and dedicated academic advising.

Middlebury College (2,400 students) - Vermont’s own little Ivy and a top contender for best facilities on one of the most beautiful college campuses around; Known as a premier institution for the study of languages, Middlebury is also especially strong in English Literature, Environmental Studies and the Sciences. The college welcomes students to take a gap year and enrolls 90 freshmen for February admissions.

Southern Vermont College (500+ students, 2/3rds out-of-state) - Nurturing and small, SVC has a pre-professional focus with a liberal arts core; The college promotes a project-based learning experience and strong community partnerships; 61% of students are first generation; Strong majors include Nursing, Healthcare Management, Business with an emphasis on entrepreneurship, Sports Management, Criminal Justice and Creative Writing. Forensic Nursing will be added next year.

Vermont Technical College (1,000 students) - 98% placement rate for graduates of this vocational school; Fields of study range from Business Agriculture, Fire Studies and Architecture, to Nursing, Dental Hygiene (only program in VT), and Veterinary Technology. Aviation Technology will be added next year.

Marlboro College (300 students) - Where smart, intellectual, and self-described “weird” students seek a very personalized learning experience in a self-governing community; The college has a writing intensive curriculum with a focus on tutorials as a foundation of its academic approach; Test-optional.

Norwich University ( 1,250 corp of cadets, 950 civilians) - Where the oldest military academy in the U.S. and a civilian college co-exist; Students are drawn to the structured life style and leadership opportunities; Corp members maintain the option, but not the obligation, to join the military upon graduation; Popular majors include Nursing, Architecture, Engineering, and Criminal Justice.

Sterling College (105 students, 78% out-of-state) - One of seven work service learning colleges in the U.S. and the only one in Vermont; “Working Hands, Working Minds” is the motto at this back-to-nature college community with a science-based, environmentally focused curriculum. Students pursue Conservation Ecology, Sustainable Agriculture, and Outdoor Education & Leadership; Students must work at the school as part of their academic experience, including running the campus farm which also serves as a hands-on classroom. Our group had the pleasure of arriving early enough in the season to see the newborn rabbits, lambs and goats, and also observe a class in sheep shearing!

Landmark College (500 students) - Having a learning disability is not a handicap, but rather a pre-requisite for admission here. Those who attend this 2-year college study liberal arts and also learn to better understand their own disabilities in order to overcome academic challenges; 80% of students transfer to a 4 year college. The college measures its success by what students do after. And successful it is.

Castleton State College, Lyndon State College and Johnson State College
These 3 state colleges enroll under 2,000 students each. Unique academic opportunities abound, as all three have carved out their own academic personalities and specialties:
- Castleton State – in addition to Nursing and Education, Castleton is strong in sports related majors including Sports Administration, Training and Physical Education. While financial pressures have forced colleges to eliminate some sports teams, Castleton just added football. The team plays to sell-out crowds and has a spirited school marching band to cheer it on.
- Lyndon State – Electronic Journalism, Music Business & Industry, and Atmospheric Sciences are just some of the premier majors that put Lyndon on the map. The Emmy award winning school television station reaches 9.000 households in VT and NH, with its college reporters out in the communities covering local news.
- Johnson State – Perhaps the most arts focused of the state colleges, Johnson State has a strong program in the performing arts, especially for jazz. Other popular courses of study are Business, Outdoor Education, Hospitality in Tourism & Management and Wellness & Alternative Medicines.

Distilling these 17 schools down to quick sound bites does not nearly do them justice, but hopefully I have given you a flavor for some of their unique qualities. Please feel free to contact me if you wish to learn more on any or all of them. As you or your sons and daughters consider college options, keep in mind the wonderful possibilities that Vermont has to offer.

Setting Goals - Challenge and Attainment

2010-04-10T13:45:00.000-07:00

It is a beautiful day and I am in my office writing rather than getting on my bike. Why is that so significant? I am chastising myself because I am officially “in training” and should be taking advantage of afternoons such as this to cycle. Yes, I have committed to do a tour of colleges in southern California with a group of counselors during the first week of July. We will travel exclusively on bikes, covering 50 miles a day and carrying our own gear. As many of you know, I am a runner, not a cyclist. The thought of riding for hours on busy and hilly roads in a pack of cyclists with the weight and bulk of my week’s worth of belongings strapped to my bike is both exhilarating and terrifying.

You may be wondering why I am doing this if I am concerned about being up to the challenge. At my age (let’s just say I am over 40) what am I trying to prove? Frankly, this is not a question I am asking myself. I am doing this for several reasons: as a college consultant I know the importance of seeing schools firsthand in order to best guide my students towards finding the right fit. This is why I visit 50 to 60 colleges every year. I am also looking forward to meeting others in my field, mostly school guidance counselors, who share my professional objective. I anticipate a special camaraderie developing within this group of 14 after sharing an adventure filled week on the road. But one of my primary reasons is merely to have a goal; something challenging, yet attainable.

We all have goals in life, some we set for ourselves and others that are assigned to us. They give our lives purpose and direction. The ones that offer the greatest rewards and satisfaction are those that challenge and push us to attain something we might otherwise not have achieved. Is there any feeling more gratifying than working towards something that we’ve earned from sheer effort, thoughtful planning and persistence? In the absence of setting objectives, we often lose our way. We have nothing against which to measure progress and success. The goals in our lives instill discipline and motivation. And if we get off track, we must look within for the inner strength that drives our personal resiliency. It’s the stuff that builds confidence and makes us stronger.

How we set goals is important too, both for ourselves and for our children. Goals are not a “to-do” list. A truly enriching goal should result in something more than just one finished homework assignment or a clean room. Longer term goals force us to have a plan, be disciplined and focused. The true pleasure should come to the one who achieves the goal rather than the person who may have assigned it. Goals must be attainable, yet challenging; sweat is expected, but the blood and tears are not a prerequisite. (I say this as I look down upon my scabbed knee healing far too slowly after a silly spill on my first outdoor ride; I felt foolish and ten years old again). The child struggling through one too many AP classes who is suffering physically and emotionally under the stress, may be experiencing more harm than good. In too many of these cases, students end the semester feeling worse, not better about themselves. Instead, we should help our children discover the satisfaction of achievement from mastering a challenging task that pushes rather than paralyzes them. We as parents should help our sons and daughters set goals that ignite their passions and help them build resiliency and confidence.

The west coast bike tour is now just 12 weeks away. I will definitely get some cycling in this weekend. The training and ride will be a challenge, but I am up to the task. I am already anticipating the pride, satisfaction, and yes, exhilaration that I know I will feel in July.

Student Loan Reform - What Does it Mean for Me?

2010-03-26T11:16:00.000-07:00

The recently passed healthcare reform bill will not only bring historic changes to how healthcare is provided; it will also change the way students borrow to pay for college. That’s right. The Obama proposed student loan reform was a late addition to the reconciliation bill passed last Sunday by the House. So the passage of healthcare reform this week also brought sweeping changes to federal loan programs for higher education as well as steady increases in financial aid for families with the most significant needs. The major changes to student financial aid fall into 3 categories: increases to Pell grants, elimination of the bank-based student loan program, otherwise known as the Federal Family Education Loan program or FFELP, and a modification to the loan repayment plan that will make it easier for graduates with modest income to repay their education loans (there are additional changes, though these are the three that most directly impact financial assistance for students).

Increases in the maximum Pell grants which are available to students whose families demonstrate the most significant financial need (typically income less than $45,000) will now be tied to the Consumer Price Index (though the original proposal was higher at CPI + 1%). The maximum award for 2010-2011 is $5,550 and will stay constant through the following two years. The grant size is expected to reach $5,900 by 2019-2020, nearly $1,000 a year less than that projected under President Obama’s original proposal. While the final version has been applauded, it is not expected to keep up with increases in college tuition, room and board, if history is any guide. Assuming the rise in cost of attendance continues to outpace the rate of inflation, the changes to the Pell program will do little to make college more affordable for students in the Pell eligible income bracket.

The big change in the federal loan program is the discontinuation of the bank loan option for federal student loans. The bank-based option has been available to colleges and universities since 1965 and accounted for as much as 80% of the federal student loan market. The federal government pays fees to lenders, though assumes the risk if the loans default. The Obama administration has made elimination of the FFEL program a primary goal for student aid reform, projecting a 10 year savings of $61 billion that will be used largely to support the increase in Pell grants. After July 1st all colleges and universities that participate in the federal Stafford loan program will join the Direct Loan program, shifting the administrative management from lenders to the colleges themselves.

How does this change impact students and their families? There are really two ways that borrowers will be impacted. No longer will students at colleges that participate in the FFELP program need to find a bank lender. Instead, those who apply for federally guaranteed Stafford loans will deal directly with the colleges’ financial aid offices. Secondly, the interest rate on the PLUS loans, which parents can access to pay their children’s college costs, is 7.9% with the Direct Loan program, versus 8.5% for the erstwhile bank program. With interest accruing while the student is in school, the difference can become significant over four years.

Changes to the income-based repayment plan, which became effective last July, will further ease the burden on students once they begin to repay their school loans. The purpose of the plan is to make it easier for graduates with low incomes to stay current and potentially limit their loan obligations through debt forgiveness. The bill just approved will make the repayment option available to more borrowers by lowering the debt to income threshold from 15% to 10% of discretionary income. Additionally, loans still outstanding after 20 years (versus the current 25) will be forgiven. The one catch is that this provision will not go into effect until July 1, 2014 and will only benefit those who borrow after that date.

So who are the winners and losers with the student loan reform bill? Low income students are winners, as they are now assured federal grant money that will grow with inflation. Whether it is enough to keep them from losing ground against rising college costs is in question, though doubtful. Student borrowers under the federal loan program should probably be indifferent to whether they borrow from a bank or through their college. The modified income based repayment plan is without a doubt the best deal for college graduates, though high school seniors who will start college in the fall lose out since the changes don’t become effective until July 1, 2014, the year they graduate.

Race to Nowhere - The Dark Side of America's Achievement Culture

2010-03-21T08:22:00.000-07:00

I want to make all of my readers aware of a new documentary film by director Vicki Abeles titled Race to Nowhere. This documentary explores the negative impact of America’s high pressured and achievement-focused culture on our nation’s youth. Are the demands and expectations placed on young people today leading to a generation of burned out, depressed and disengaged youth? This is the conclusion of many educators, therapists, and other professionals who work with students and appear in interviews throughout the film. The method of teaching is also, arguably, leaving graduates ill-prepared to enter the workplace. Educators feel pressured to teach to tests rather than develop minds and impart skills necessary to succeed. Sadly, the despair felt by many youths has had and continues to have repercussions that impact and even destroy families. Ms. Abeles’ goal is to raise awareness of this distressing trend with the hope of starting a national dialogue that challenges our beliefs about the effectiveness and sanity of our education system and culture.

While the film is not yet widely distributed, screenings are taking place around the country. The movie is coming to the New York area the week of March 22. For those of you who live in or near Westchester County, you will have the opportunity to view this enlightening documentary on Tuesday evening, March 23 at 7:30 pm at the JCC Mid-Westchester in Scarsdale, NY. Tickets can be purchased in advance at the film’s website http://www.racetonowhere.com/ and by going to the “Screenings” page. Whether you can attend the screening or not, I encourage you to check out the website and watch the 3 minute film trailer. I believe this is a movie every parent to see.

What is the Value of a Liberal Arts Education?

2010-03-04T10:23:00.000-08:00

Is a liberal arts education a luxury? With more than half of all undergraduates now choosing more “practical” majors such as business, nursing and engineering, it appears that many young people and their families are questioning the value of a liberal arts education. The question on parents’ and students’ minds today, especially given the escalating cost of a college education and the state of the economy, is will my son or daughter (or I) be employable?

This week the Chronicle of Higher Education is running a series of articles which examine what it titles ‘The New Liberal Arts.” The special report explores the question of value, and also cites the changes in college curriculum in responses to the shifting demand. Many traditional liberal arts institutions have added pre-professional programs. At the same time, several colleges with a more career-oriented focus are incorporating a liberal arts approach, placing greater emphasis on critical thinking and intellectual exploration. The idea is to help students develop important analytical and problem solving skills in addition to preparing them for a profession.

Returning to the question about the value of a liberal arts education, I wanted to share an article from the Chronicle series written by Sanford J. Ungar, the president of Goucher College and former host of National Public Radio’s “All Things Considered.” His article, “7 Major Misconceptions About the Liberal Arts,” seeks to dispel the myths that a liberal arts degree isn’t worth the cost, especially when compared to pre-professional training. Ungar’s article can be accessed through the link http://chronicle.com/article/7-Major-Misperceptions-About/64363/?sid=at&utm_source=at&utm_medium=en. Mr. Ungar makes several compelling arguments, key among them is the notion that students must be prepared for change, especially given the evolving demands of society today. One thing is almost certain: many careers which will be available to the Millennial Generation in their lifetimes do not presently exist. The challenges we face today have created an even greater need for college students to graduate with a broad based education that prepares them to think critically and outside the box.

But how does that factor in the perceptions and expectations of those who make the hiring decisions? Don’t employers want to hire young people who have specialized in a particular field of study, especially in a buyer’s market where unemployment is running at 10%? According to Mr. Ungar, a 2009 survey for the Association of American Colleges and Universities found that 75% of employers nationwide encourage students to seek a liberal arts education. 89% want to see greater emphasis on communications, both orally and written. Analytical reasoning, critical thinking, creativity and the ability to innovate were also cited as important skills required by prospective employers.

One piece of advice I give to those in the midst of a job search, especially anyone who has been employed in a downsized industry: think in terms of your skill set, not your last job description. In our fast paced and changing society industries and jobs will come and go. The value of a liberal arts education will last a lifetime.

Tuition Caps, Cost Cutting...Working with Less

2010-02-23T11:45:00.000-08:00

Preliminary steps taken by two prestigious New England colleges in the past week may signal new trends in higher education. One week ago Middlebury College announced a plan, pending board approval, that would limit annual cost of attendance increases to one percentage point over the Consumer Price Index. This week Brandeis University released its proposed cuts to academic programs as part of ongoing efforts to address its financial issues. The timing of these announcements has interestingly coincided with the publication of a joint study by two non-profit policy organizations, Public Agenda and the National Center for Public Policy and Higher Education, regarding public disatisfaction with colleges. Roughly two-thirds of the survey participants said that federal stimulus money should be used by colleges to hold down tuition, even at the cost of program cutbacks. Middlebury and Brandeis are apparently ahead of the curve and taking that message to heart.

Middlebury’s announcement may not seem like much, especially with inflation at an historic low. But in fact, it is a big deal for a college to commit to a cap for an "indefinite" period when average annual cost increases at four-year colleges have exceeded 4 percent. Other schools have imposed one year tuition freezes, only to raise price more than the rate of inflation the following year. Middlebury’s move obviously won’t improve its bottom line, though if one believes that demand for a college education is not inelastic (in other words, an increase in price will negatively affect demand), then this action should certainly raise the school’s desirability. But that’s what makes this move so noteworthy: as one of the most selective colleges in the country, Middlebury has only seen applications increase in recent years, even while its tuition has risen.

Brandeis’ move is gutsy, though born out of necessity. Imagine the premier Jewish-sponsored university in the U.S. abandoning Hebrew as a major. However, if the proposed reorganization is adopted, there is probably truth to the school’s claim that the impact on undergraduate studies will be minimal. For example, many departments will be merged rather than completely eliminated and changes will be phased in so as not to disrupt the education of current students or impact those applying for the coming fall. The biggest losers will be graduate students, as university-sponsored PhD programs are cutback or terminated (a topic for another day: the fate of university funded doctoral programs). Hebrew may no longer be a major; however, students will still be able to study the language while majoring instead in Near Eastern and Judaic Studies. What Brandeis has done is likely to become more prevalent at colleges across the nation. Programs with few degree candidates will be cut if determined that they may no longer be justifiable.

What does this imply for trends in higher education going forward? Middlebury’s move may likely put pressure on its peer institutions to do the same. Yet many well-endowed colleges are feeling the pinch even without slowing tuition increases. The lost dollars will have to come from somewhere. Expect financial aid to take a hit. Williams’ move to end its no-loan policy opened the door for Dartmouth…others will no doubt follow. Middlebury, by the way, was not among the 40 or so universities that did away with loans in need-based aid back in 2007-2008.

Colleges have for the past two years examined all possible ways to cut costs, so Brandeis’ announcement is not that surprising. Staff layoffs, salary freezes, and varsity team eliminations have become more commonplace news. What makes Brandeis’ step so notable is where it has chosen to reduce expenses. I offer up advice I have shared in the past. Students should do their homework when researching colleges. If they have an interest in a highly specialized major that may have few degree candidates, inquire about the ‘safety’ of that program. If academic programs are eliminated, hopefully others will follow Brandeis’ example and phase them out over time so that current students are not impacted.

Are colleges finally getting the message that controlling costs and making education affordable, even at the expense of some programs, is among the top concerns of families with college age students? In the case of tuition caps, one school does not make a trend, but I will remain optimistic.

Making College Accessible - How You Can Help

2010-02-12T10:50:00.000-08:00

I am going to totally change gears with this posting and pose a question (actually two): 1) Do you ever shop online, and 2) if I told you that your online purchases could benefit underserved high school students at no additional cost to you, would you be willing to help? I bet most of you would answer yes to both.

The New York Association for College Admission Counseling (NYSACAC) is a not-for-profit organization with a mission that includes promoting access and equity in post-secondary education, and developing and supporting the college counseling profession. As co-chair of the Development Committee of the NYSACAC Executive Board, I am involved in fundraising initiatives in support of this mission. NYSACAC has established an affiliation with Amazon.com that will allow members and non-members to support the association’s initiatives while shopping on-line. The link to Amazon is posted on the NYSACAC website (http://www.nysacac.org) and can be easily accessed on the “Donate” page. You can alternatively go directly to the “Donate” site by clicking on http://tinyurl.com/yk2nhdd. Every purchase made through NYSACAC will benefit underserved students by funding important programs that improve college accessibility. So please consider shopping through the NYSACAC website the next time you want to buy a book or make other purchases through Amazon. It involves one easy extra step that could lead to a disadvantaged child taking leaps and bounds.
Another way to support NYSACAC and its mission is to donate directly. One of the special programs that NYSACAC offers is Camp College, a three-day college experience for students who might otherwise not have adequate opportunities to learn about the college admission process. By accommodating 150-200 students each summer, this program gives disadvantaged youths a chance to experience life on a college campus while also meeting with high school counselors and college admission officers who educate them about the college process. Many people volunteer time and resources to this much needed program. However, the cost to send one student for a three-day session still runs about $160.
If your own son or daughter has access to good college planning resources, you understand the value of such guidance. Imagine how critical it becomes for a first generation, underserved student for whom going to college is never discussed at home, nor presented as an option. Would you consider helping a less fortunate student realize his or her college dream by making a donation to NYSACAC for the benefit of Camp College? For $160 you can sponsor a student, though contributions of any amount will truly make a difference. A donation at the sponsor level will pair you with a particular student, who will know that he or she is able to participate in Camp College thanks to your generosity. Donations for the benefit of Camp College can be made by going to the NYSACAC website, clicking on the “Donate” link and following the directions from there. Thank you for any support you can give.

Are "No Loan" Aid Policies a Thing of the Past?

2010-02-10T12:54:00.000-08:00

First it was Williams earlier this month; now Dartmouth has announced that it is pulling back from its “no loan” policy for students who qualify for financial aid. Anyone who has been reading about college investment losses should not be surprised by this development. A couple of weeks ago a study on college endowments reported that these investment portfolios in the aggregate lost about $95 billion in value in the 2009 fiscal year (June 2008 to June 2009), contracting 23% on average. Since colleges such as Williams and Dartmouth rely on endowment earnings to fund a major portion of their operating budgets, these investment losses have significant ramifications.

Back in late 2007 and early 2008 about 40 highly selective and well endowed colleges instituted no loan or limited loan policies for their student aid programs. This trend took hold after Senator Charles Grassley, Republican from Iowa, suggested that colleges and universities be held to the same standards as foundations that must spend 5% of the value of their investments annually in order to maintain tax exempt status. Yet as colleges grapple with structural deficits, even after a series of budget cuts, the practicality of these policies is now being revisited.

With Williams and Dartmouth taking the first steps, it is just a matter of time before others follow suit, as none of these colleges has been spared the economic pain. Both schools have stated that the reinstitution of loans in financial aid packages is a necessary move in order to preserve educational programs. Each has emphasized, however, that the return to loans will not affect students who demonstrate the most significant need. Dartmouth, for example, has stated that it expects this to impact those students whose families earn above $75,000, for whom loans will comprise $2,500 to $5,500 of the financial aid package per academic year. With income under $100,000, loans will not exceed $2,500.

So what does this mean for financial aid, in general, at colleges across the country? Without a crystal ball, I can only make some educated guesses. Neither Williams nor Dartmouth has backed away from fully meeting demonstrated need, and I expect that maintaining this policy will be a priority. We will just begin to see a higher percentage of loans in the packaging. The selective schools that currently have no loan policies generally offer need-based aid only (no merit). That of course, will not change. But what about other colleges that use merit aid to attract students and shape a class? Many of these colleges do not have the hefty endowments that prompted the no loan policies in the first place. They rely heavily on tuition to meet their budgets and fund aid.

Given the importance of filling seats, I predict that merit aid as an enrollment management tool will continue for many colleges. In fact, schools that survive by maintaining enrollment numbers may find merit aid even more important. Offering some tuition discount, past experience has shown, attracts students who still bring in tuition dollars. These are the ones that also raise GPA and standardized test score averages.

But back to need-based aid...will we continue to see less generous financial aid packages? Pure economics would suggest so. Don't be surprised to see other highly selective colleges dial back their no loan policies, especially now that two of their prestigious peers have already taken the plunge.

Obama's Plan for Financing Higher Education

2010-02-03T12:45:00.000-08:00

Last summer the Obama administration introduced the Student Aid and Fiscal Responsibility Act, or SAFRA, which would end bank origination of federally guaranteed student loans. If passed by the Senate (it has already been approved by the House of Representatives), all federally guaranteed student loans will be funded directly through the federal government. The administration claims that eliminating the bank based program will save the government $87 billion over ten years, primarily by ending the subsidies that banks receive through the Federal Family Education Loan Program (FFEL). President Obama has pledged to use the expected savings towards other education initiatives.

So who will benefit from this savings windfall? The primary beneficiaries are likely to be borrowers repaying their federal guaranteed student loans and Pell Grant recipients. At the State of the Union address a little more than a week ago, Obama announced his commitment to expand the recently created Income-Based Repayment Program which I discussed in a blog posting last June. The existing repayment program went into effect July 1, 2009 and currently caps monthly loan payments for federal student loan borrowers at 15% of discretionary income (the difference between adjusted gross income and 150% of the federal poverty level). After 25 years, any outstanding loan balance would be fully extinguished. Those employed in public service would be relieved of their debt obligations after 10 years.

Now President Obama proposes to reduce the maximum federal loan payment amount to 10% of income, with a 20 year debt forgiveness term. Roughly 36% of student loan borrowers have loan payments that exceed 10% of their income, versus 16% at the current 15% of discretionary income cap. There is a real benefit here to our sons and daughters who borrow under the federal Stafford student loan program. For recent graduates starting out with modest incomes, a cap on debt service can provide some tangible cash outflow relief and may mean the difference between affordability and potential default.

The other major beneficiary of education finance reform is likely to be the Pell Grant program, which comes as no surprise. The Obama Administration has been upfront about its desire to improve funding to this higher education aid program which benefits those students with the greatest financial need. Key features of Obama’s budget plan for Pell Grants are an increase in the maximum annual amount to $5,710 from the current $5,350 maximum with increases pegged to the CPI, and a proposal to convert this to an entitlement program. Such a move would guarantee available funding for Pell Grants and would remove the program from the uncertainties of the Congressional budget annual appropriation process.

The last, but not necessarily least of the Obama administration proposals is the extension of the American Opportunity Tax Credit which, as a modification to the Hope Tax Credit, was initially approved for 2009 and 2010 only. The maximum $2,500 per tax year can be used during the first four years of post secondary education (100% of the first $2,000 and 25% of the next $2,000 for qualified tuition and expenses, including textbooks). The tax credit is available to middle income families, though begins to phase out between $80,000 to $90,000 for single taxpayers and $160,000 to $180,000 for married couples.

All in all, it appears that higher education fared better in the president’s 2011 fiscal budget than many other programs that have experienced cutbacks in funding. In fact, the proposals, if approved, will provide some relief to a wider range of income groups. By increasing Pell Grants, extending the American Opportunity Tax Credit and lowering the income caps for federal loan repayments, the Obama education plan casts a fairly wide net. It should help, even if modestly, not only those most in need, but will also begin to address the economic challenges faced by middle income families and recent college graduates who must make student loan payments at the same time that they try to get established in the workforce.

Changing the Way Public Universities in New York Set Tuition

2010-01-27T11:44:00.001-08:00

Did you know that the New York State Legislature controls tuition policy, setting rates and increases for the entire State University of New York system? This means that every four-year SUNY school charges the same tuition, whether it is a highly competitive and selective research institution or a small local college with more limited programs. However, that may all change if Governor Paterson has his way.

The Governor's budget proposal to the legislators last week included a measure that would allow SUNY colleges as well as the City University of New York, or CUNY, to finally determine their own tuition increases. Those advocating for maintaining the close oversight now held by Albany believe that centralization of decision making authority ensures consistent quality across the system. Critics, however, assert that lack of control over something as basic as tuition policy is detrimental to an institution’s ability to respond effectively to the changing needs of students and the community, and to efficiency deliver academic excellence.

My last blog posting discussed the Kiplinger report on the top 100 best values in colleges. Many of you will recall that two of the SUNYs, namely Binghamton and Geneseo, ranked in the top ten for both in-state and out-of-state residents. Would freedom to manage their own tuition rates move them out of the top tier for value? Proponents of Paterson’s plan would argue to the contrary. Competitive and highly sought programs in areas such as business, engineering and information technology are currently not priced according to their caliber or to the demand. Flexibility to increase tuition, while still remaining competitively priced, should only lead to an improvement in quality and value.

Currently the tuition at nearly all of SUNY’s 64 institutions is $5,070, a 14% increase over the prior year. Unfortunately, the SUNY colleges saw very little of that increase. The legislature has traditionally used such hikes as a tool to plug the State’s budget gap which was the case in 2009. Only 20% of the increase actually found its way to the SUNY system. Paterson’s proposed change would discontinue that practice, preventing the use of public college tuition as a state budget management tool. Rate hikes would also be capped as a function of the Higher Education Price Index, keeping tuition rise in check.

That said, it isn’t clear exactly how the proposed changes will impact New York State colleges, from a quality or cost standpoint. Some fear that the larger research institutions will price themselves in a way that makes them no longer accessible to middle income students, similar to what we have seen with many private institutions. The cap on tuition increases should moderate that somewhat. Furthermore, the trend toward diversification of financial resources (i.e., seeking funding beyond just the state) is likely to gain momentum, especially with the severity of the budget deficit issues facing Albany and in fact, all state governments. Greater freedom to manage tuition and raise private capital may be just what the SUNY colleges need to maintain and even possibly improve quality and value.

Best Values in Public Colleges

2010-01-18T16:39:00.000-08:00

In my November 23, 2009 blog posting I wrote about finding value in public colleges and universities. As a follow up, I wanted to share the link to Kiplinger’s Personal Finance magazine which recently published its 100 Best Values in Public Colleges 2009-2010. You can find the full list at http://www.kiplinger.com/magazine/archives/best-values-in-public-colleges-200910.html.

The Kiplinger report also includes a one page guide to the methodology used in the rankings, explaining that both academic quality and affordability come into play. The first cut to make the list was academic quality, which for purposes of the listing includes SAT or ACT scores, admission and retention rates, student-faculty ratios, and four and six-year graduation rates. Academics, in fact, are weighted almost two-thirds more than affordability. The schools were then ranked based on cost and financial aid. The cost assessment takes into consideration total expenses for in-state students, and then looks at the average cost for both need and merit aid recipients after subtracting grants. A similar exercise was done to determine out-of-state rankings.

Why is the primary emphasis on academic quality rather than cost? Following the old adage, “you get what you pay for,” Kiplinger is rightfully concerned that state schools are following prudent strategies to maintain or even improve quality while keeping costs down. Are colleges successfully eliminating the fat in their budgets or rather, cutting into their core mission initiatives (reducing or eliminating academic programs that benefit students, for example)? That is an important factor in the quality assessment.

In my prior posting about state universities, I mentioned that many of these institutions, in an effort to increase revenues, are trying to grow their out-of-state enrollment for obvious reasons: non-resident students pay more. As a result, several public “Ivies” and other flagship state universities, unlike some of their private, highly selective counterparts, offer merit aid to entice top non-resident students (A topic, perhaps, for another posting is the criticism public universities have recently received as a result of these policies: see the January 14, 2010 Washington Post http://www.washingtonpost.com/wp-dyn/content/article/2010/01/13/AR2010011302643.html). Schools such as the University of Maryland and UNC-Chapel Hill seek to increase non-resident enrollment and are using merit aid to bring in out-of-state tuition and to shape a class (though North Carolina has an 18% cap on the percentage of students from outside the state).

If you are exploring public colleges for value, then certainly take a look at the Kiplinger list. However, I will offer my usual caveat about rankings. Determining “value” based on a selection of criteria that include such measures as standardized test scores will probably yield results that should be viewed with a critical, if not skeptical eye. The conclusions drawn are not scientific. As I have stated in the past, “value” will largely be influenced by how good a fit the school is for the students attending. Student engagement is often what contributes most to value.

Planning for College - Understand the Cost First

2010-01-07T13:24:00.000-08:00

College is expensive! That comes as a shock to all of you, right? Of course not. Then why do so many families appear to first experience the college cost sticker shock after their child has been accepted? I’ve given some thought to this in recent days, having received calls from parents wondering if I can find them money for college after their children have been accepted.

Why are so many of us surprised to learn just how much college will cost us? Call me a cynic, but I have always been bothered by the websites, articles and other media forms that continually tell students and families that college is more affordable than we think. After all, schools give grants, the government provides grants and loans, so in the final analysis your net cost should be far less than the sticker price. There is definitely some truth to these assertions, but the problem is that the gap between the cost of attendance and what a family thinks it can reasonably afford to pay is often far greater that the financial assistance available to most middle income families. Expanded tax credits, additional federal grant money approved by the Obama administration…these are a start in helping to make college affordable. However, many families do not qualify to take advantage of these, and even for those that do, the actual benefits will likely make a small dent in the cost of a private four-year college education.

Here are the facts:
- The federal government is the single largest source of financial aid. However, to qualify for federal government grant money, your income must be less than $50,000 a year.
- Loans are available through the federal Stafford loan program even for those who don’t qualify for need-based aid. Yet the maximum amount for a college freshman is $5,500 ($6,500 for a sophomore, and $7,500 for juniors and seniors). If the school isn’t giving you merit aid, you may still need to close a $45,000 gap after borrowing up to the maximum limit. And loans, of course, must be paid back. Unsubsidized Stafford loans (non-need based) require that you pay interest while in school or capitalize it, which means that your child will graduate with a larger amount than initially borrowed.
- Education tax credits will reduce your taxes due, but not by much in the grand scheme of financing a college education. The American Opportunity Tax Credit, which the federal government recently approved to replace the Hope Tax Credit for 2009 and 2010, allows families to deduct up to $2,500 from their taxes due if they have education expenses during the tax year. Filers will receive a credit of 100% for the first $2,000 they pay in eligible college costs (tuition, fees and books paid during the tax year), and 25% of the next $1,000. The income cap, to fully take advantage of these credits, was also raised to $90,000 for single filers and $180,000 for couples that file jointly.
- Yes, the net cost at each college is less than the actual price quoted, but don’t assume that this means you won’t be paying the full amount. Net cost takes into consideration those who get need-based aid and the few who qualify for merit scholarships. At many schools, especially the highly selective ones, most students pay the full freight if they are not eligible for financial aid.
- There are numerous scholarships available to students willing to take the time to research them and to apply, which often means additional essays. However, hitting the jackpot and winning a five figure scholarship requires as much luck as work. I would never discourage students from seeking scholarships. I just want families to be aware of the effort and time involved, as well as the odds of winning one and the timing. Don’t wait until January of senior year when most of the more coveted ones have already been awarded.

My intention is not to dampen your post holiday spirit, but rather to re-visit a point I have made in the past. Do your homework and know how much you can afford to pay. Have the family conversation about affordability before the college search begins. That means looking at income, savings, possible aid, and reasonable borrowing, which of course must be repaid with interest.

This does not mean that students shouldn’t apply to expensive private colleges which may offer more robust financial aid packages. However, getting merit money generally means that the student has something special that the college wants, whether it is academic, artistic, athletic talent or diversity. If affordability is an issue, make sure your son or daughter includes a few financial safeties on the college list. Take the time to find out the types of students a college seeks and what special talents your child would add to a class. That is still the best way to find money for college.

CSS/PROFILE - The Other Financial Aid Form

2009-12-21T09:48:00.000-08:00

In earlier postings on the financial aid application process I have mentioned that schools may require applicants to submit different or even more than one form, especially if the colleges are allocating both federal money and their own institutional funds. Virtually all colleges and universities use the FAFSA which my faithful readers know is required for all federal aid. However, there are roughly 300 private institutions that also have families complete a form called the CSS/PROFILE which they use to award their private grant money and scholarships. The PROFILE, as it is known in shorthand, is administered by the College Scholarship Service (CSS), the financial aid division of the College Board, and it is only accessible through the College Board website. One can find the form most directly by going to http://www.profileonline.collegeboard.com/. The College Board website is also the place to go to find the list of the colleges and universities that require the PROFILE. I would still advise families to visit the websites of each college to which your child is applying to check the form requirements and deadlines for submission.

In many respects, the FAFSA and PROFILE take similar approaches to the way they determine the Expected Family Contribution. Like the FAFSA, the PROFILE looks at both the student and parents’ income and assets. The good news is that much of the information that you gather to complete the FAFSA will also be necessary for the PROFILE. However, there are a few major differences in the type of information required and in the methodologies, both of which may have a material effect on the outcome.

Some of the key differences are:
- The FAFSA, which is referred to as the Federal Methodology or FM, asks the same questions of all applicants, regardless of the college. The PROFILE or Institutional Methodology (IM) questions may vary from school to school, as colleges have some discretion to tailor the form to their specific institutions. As long as college financial aid officers remain within their institutional policies, they have the flexibility to exercise their “Professional Judgment” as they see fit.
- In general, the PROFILE requires more information than the FAFSA, particularly in terms of assets and expenses. For example, the IM considers the equity in the family’s primary residence (though a handful of colleges have elected to exclude this from the calculation, Princeton among them).
- The FAFSA asks for income information for only the tax year prior to the year of enrollment (e.g., the 2009 tax return information for the 2010-2011 academic school year); the PROFILE requires 3 years of income disclosed: the two prior to the year of enrollment and a projection for the coming year.
- The PROFILE permits an allowance for secondary and elementary school tuition of siblings and also one for medical expenses. The FAFSA does not.
- With the Institutional Methodology students, regardless of income, are expected to contribute to the cost of their education, though it may be a nominal amount. The FM makes no such requirement.
- For students with divorced parents, the FAFSA never requires financial information of the non-custodial parent (the one with whom the student resides less than 50% of the time). However, if the custodial parent has remarried, the stepparent’s income is considered. Not so for the PROFILE: many schools that use the IM require financial information of both the custodial and the non-custodial parents. Check with the individual colleges to find out their requirements.
- The FAFSA, as its name implies (Free Application for Federal Student Aid) is free while the PROFILE costs $5 to process plus $18 for each school.
- Lastly, the FAFSA does not become available online until January 1. The PROFILE is accessible in the fall of the year prior to matriculation. In other words, it is available NOW!

One last thought: Most colleges use these financial aid forms for awarding need based aid, not merit aid. There are exceptions, however. The best thing to do is to check with each school’s financial aid office to find out what is required to be eligible for both need and merit aid. As I have previously noted, the FAFSA must be completed for any students who wish to borrow under the Stafford loan program, regardless of need. And truly one last thing: financial aid deadlines at many schools follow close on the heels of college application due dates, so please look carefully at websites to make sure that these important deadlines are met.

Financial Aid Forms - What You Should Be Doing Now

2009-12-15T08:03:00.000-08:00

It is mid-December and high school seniors are busy putting the final touches on college applications and essays. However, it may not yet be time to kick back and wait. Another deadline is lurking just around the corner and that is the due date for the submission of financial aid forms. The FAFSA, or Free Application for Federal Student Aid, which is the financial aid form used by all institutions to determine eligibility for federal funds, will become available online January 1 for the 2010-2011 academic year (go to http://www.fafsa.gov/ ). Many colleges have set financial aid deadlines in February and March, and a few are even earlier! So planning ahead is important in order to get your forms filed in time.

Even if you believe you will not qualify for financial aid, it is a good idea to fill out the FAFSA. Any student hoping to borrow under the unsubsidized Stafford student loan program is required to submit the FAFSA. For these federally guaranteed loans interest accrues while the student is in school and financial need is not a factor for eligiblity.

So what should you be doing now, prior to actually filling out the financial aid form? Here are a few tips to help you get organized to make the filing process as simple as possible.
1) While people gripe about the burden of completing the FAFSA, gathering the necessary documents may in fact be the most tedious part of the process. Required documents include the student’s driver’s license (if any) and social security number, his or her 2009 W-2 forms and other records of money earned, the student’s 2009 federal tax return, the parents’ 2009 federal tax return (for dependent students), any untaxed income records (this includes child support), and current bank statements as well as investment and business or farm records.
2) Keep copies of these documents together with your completed financial aid forms; should your application be selected for verification (schools are required to verify, at a minimum, 1 in 3 financial aid applications), you will be asked to submit these to the college.
3) Obtain a FAFSA pin number by going to http://www.pin.ed.gov/. The student and one parent will each need to establish a pin number which is both your electronic signature and the number you will need to access your online FAFSA form.
4) Check the financial aid section of each college’s website to find out the forms required and the deadlines for submission. Keep in mind that the earlier you submit, the sooner you get into the financial aid queue.
5) You may find yourself working to meet early financial aid deadlines before you are able to file your 2009 federal tax returns. In this case you will have to estimate your adjusted gross income, federal taxes and non-taxable income in order to get your financial aid forms submitted in time. Many people estimate these numbers based on the prior year tax return, and then update the form with more accurate information once the return is filed. If you are certain that you will not qualify for financial aid, but are completing the FAFSA so that your child is eligible for Stafford student loans, you may hold off submitting it until after you have actually filed your 2009 tax return.

Completing the FAFSA is really not as painful a process as some would have you believe. Not only has the 2010-2011 form been simplified, with as many as 1/3rd fewer questions, but the directions are generally clear and simple. Families are directed to the relevant lines on their tax returns for many of the required answers, taking away much of the guesswork. Remember that need-based financial aid is awarded annually. This means that all necessary financial aid forms must be completed each year that the student is in school.

Stay tuned for upcoming information on the CSS/Profile, the financial aid form that many private colleges use for allocation of their institutional funds.

The Public University Option

2009-11-23T18:54:00.000-08:00

Financial safeties, or as I prefer to call them, schools that provide good “value,” are now a regular fixture on college lists, having become nearly as commonplace as the academic safeties, or colleges where acceptance is highly likely. Like the academic “likelies,” schools perceived to offer better economic value are those on the list which enable both parents and students to sleep better at night. Typically these are your state universities and private colleges known to give generous merit and need-based aid, the latter should you qualify.

If you are seeking practical financial choices, you probably want to also consider public universities outside your home state. Believe it or not, many of these institutions provide a value option, even with the higher non-resident tuition. There are some exceptions to this, most notably University of Michigan and schools in the University of California system which are priced more like private universities for out-of-state students. However, cost of attendance for non-residents at many state colleges can still be several thousand dollars lower than the private school alternative.

The desire to maintain quality public education in the face of budget cuts is leading some public universities to look beyond their borders and expand enrollment to non-residents as one means to address a funding gap. The University of Massachusetts recently announced that it will increase out-of-state enrollment from 20% to 30% over the next decade. Rutgers plans to raise enrollment of students outside New Jersey from 10% to 25%, while the University of Colorado is talking about removing state caps altogether. All three offer a competitive cost option to out-of-state students. The University of Minnesota, in an effort to grow its non-resident enrollment, has set the out-of-state tuition at only $4,000 higher per year than for residents. You will find a comparison chart with the costs of many state universities in the November 1, 2009 Education Life section of the New York Times and can access it at http://www.nytimes.com/imagepages/2009/11/01/education/01data-edlife.html?ref=edlife Keep in mind that the amounts shown only include tuition and fees, and not the full cost of attendance. To better gauge what you will pay it is best to go to the individual school’s website.

Value must, of course, be considered in the context of selectivity. For example, schools such as the University of North Carolina (Chapel Hill) and the University of Florida have low caps on out-of-state enrollment. So while the cost of attendance is a relative bargain ($36,000 for non-residents at UNC, $34,000 at University of Florida), the admission standards are that much tougher for out-of-state students. Nevertheless, for the strong candidate who seeks the large research university environment, these are worth considering.

Now that I have argued the value in looking beyond your own state to other public universities, let me throw in a few caveats. It is no secret that states across the country are trying to close budget gaps, which has translated to reduced funding for colleges, accompanied by talk of raising tuition. Just last week, the University of California’s Board of Regents approved a whopping 32% increase in fees (tuition) for residents, on top of already higher than average public education costs. Even such a hefty increase will not fully address the system’s deep fiscal problems. My point is that one must evaluate the financial health of state institutions as carefully as one scrutinizes the fiscal state of private colleges, perhaps even more so. Budget cuts have led to staff and class schedule reductions. The impact of this may mean the difference between graduating in four years and needing more time just to schedule all the classes required to complete a major. Some state universities have weathered the financial crisis more successfully due to recent trends towards privatization, meaning they have tapped non-government sources and moved away from reliance on state funding. Inquire about the percentage of the operating budget that is funded by private monies. Greater reliance on state funding may mean higher risk of cutbacks in staff, departments and programs if budget shortfalls persist.

Are states likely to raise tuition on out-of-state students more rapidly than for residents in future years? While public education tuition increases are a potentially sensitive political issue, past experience suggests that out-of-state students will not bear the brunt of tuition hikes. This may even be more true today than in prior years, as states recognize the need to attract non-residents who are the ones they can count on to pay the higher freight.

Providing Career Guidance - Finding the Balance

2009-10-28T11:17:00.000-07:00

How important is it that my child has a career direction before going to college and how can I guide him or her through the career search process? This is a question many parents of high school students ponder. The topic was thoughtfully addressed by journalist Eilene Zimmerman in the New York Times Career Couch column which appeared on October 25, 2009: “Helping Teenagers Find Their Dreams.” You can access it at http://www.nytimes.com/2009/10/25/jobs/25career.html. I share Zimmerman’s belief that there is too much pressure on kids today to define themselves by a career before acquiring the tools to choose wisely and prior to gaining exposure to various options that might be right for them.

Students today receive so many messages, both subtle and overt, pressuring them to define their career interests before they are even out of high school. Consider the college application process: The first page on the Common Application is Future Plans! Many colleges want to know intended major as well as possible career or professional plans before they even see the GPA or know where the student graduated from high school! Anxious seniors who were hoping to use the next four years to figure this out come to me in a panic: Is it okay to put “Undecided?” I must confess that I, too, encourage students to put down an academic interest and possible career choice, though emphasize that they should view their college years as a time to broaden horizons and explore new things. The message I try to convey is that it is okay to change one's mind; in fact, it is expected. How can I say otherwise? I am on my third post college career!

In order to help our kids with this self discovery and career search, we can start by alleviating some of the pressure. Instead of projecting our own angst about their futures onto them, we ought to have conversations which begin to generate ideas, but also engage their interest. Talking about likes, dislikes, talents and strengths generally elicits far more enthusiasm and willingness to talk than Mr. Bradshaw’s put-off line in The Graduate: “Ben, what are you doing…? Be open, and try to listen rather than feel compelled to offer up answers.

Here are 5 tips you might consider the next time you find yourself engaged in a career discussion with your teen:

1) Help your child discover skills and interests rather than advise him or her to focus exclusively on career options – skills are transferable; careers come and go
2) Guide, don’t lead – Teens need to take the initiative. This is all about their dreams, not yours.
3) Take the cues and know when to back off; If your teen does not want to engage in this discussion when you want to, it won’t be productive.
4) Assure your children that uncertainty is okay and let them know that you support the need to explore. After all, they are still teens!
5) Accept that much has probably changed since you last embarked on a career search and recognize your own knowledge shortcomings. The career your teen ultimately chooses may not even exist today!

ABCs of Financial Aid

2009-10-17T14:34:00.000-07:00

COA, FAFSA, EFC…the alphabet of financial terms associated with paying for college can be a source of confusion for families in the thick of the college application process. As with applying to college, navigating financial aid requires assessing the landscape. Familiarization with concepts, knowing deadlines and being organized is the key to finding success in the financial aid process too.

Here is a quick college financing primer highlighting some of the critical terms you will need to know:

The Cost of Attendance, or COA, refers to the total annual cost of college, not just tuition and fees. Don’t forget to factor in room and board, books, transportation, and other personal expenses when trying to estimate what a year of college will cost. College financial aid officers look at the total COA when they package aid awards. Most, if not all colleges, will post the COA on their website.

The Free Application for Federal Student Aid, better known as the FAFSA, is used by colleges and universities to determine eligibility for financial aid. All students must file a FAFSA in order to receive any federal student aid. This includes the non-need based unsubsidized federally guaranteed Stafford student loans, so if you anticipate borrowing for college, don’t forget to file the FAFSA. It becomes available online January 1, 2010 for the 2010-2011 school year at http://www.fafsa.gov/.

The Expected Family Contribution or EFC which is calculated from the information you provide on the FAFSA is the amount determined to be what the family can and should contribute to the cost of the student’s education. The EFC is based on the family’s current assets and prior year's income, including both the student’s and parents’ financial data. After completing and submitting your FAFSA, you will receive a Student Aid Report, or SAR, which will show your EFC.

Nearly 600 schools also require that families complete the CSS/Profile form for the allocation of their institutional (non-government) funds. The CSS/Profile is administered by the College Board and can only be filed online. Families can access the Profile as early as October 1, 2009 for the 2010-2011 academic year by going to the College Board’s website: http://www.collegeboard.com/.

Now that you are familiar with these terms, there are some additional things that you should know about financial aid awards:

- Your “demonstrated need” (the COA minus your EFC) won’t necessarily be the amount shown on your SAR if the college also uses the CSS/Profile or another financial aid form. These methodologies are not the same, and therefore will produce different results. Institutions allocating their resources will naturally rely on the methodology that sets a lower threshold for your financial requirements, so don’t be surprised if the aid package is less than you expected, even from schools that claim to meet demonstrated need.
- Colleges tailor the CSS/Profile formula to their specific institutional requirements. In other words, your demonstrated need may vary from school to school. For example, some colleges consider the equity in your home; others do not.
- The college offering the most financial aid may not necessarily be providing the best package. One has to look at the composition of each award. A financial aid package that meets need with grants which do not have to be repaid is far more attractive than one comprised entirely of loans.
- If your financial situation changes materially after you’ve filed the forms, such as loss of employment, you should notify the colleges immediately.

Be sure to visit the Financial Aid section of each school’s website to check on requirements, deadlines and merit aid, if awarded. Since financial aid is a limited resource, getting things in early can make a difference. The sooner you complete the FAFSA, CSS/Profile and any other required forms, the better your chances of receiving financial assistance.

FAFSA Revision Redux

2009-10-05T19:34:00.000-07:00

In my June 29 post I wrote about forthcoming changes to the FAFSA, the financial aid form that must be completed by students and their families seeking federal aid to pay for college. This also includes anyone who wishes to borrow under the federally guaranteed Stafford loan program, whether for need based or the non-need based loans. The new and improved FAFSA for the 2010-2011 academic year will come online January 1, 2010 and can be accessed at http://www.fafsa.gov/ (do not confused this with http://www.fafsa.com/ which is NOT the Department of Education, but rather a site that will charge users for access and services!).

The soon-to-be-released version of the FAFSA should be easier to complete, as it will incorporate help text and instructions for specific questions as well as enhanced skip logic. That means you probably will no longer have to wade through pages of questions that are irrelevant to your circumstances. In addition, families will now be able to populate certain fields with tax return information retrieved directly from the IRS, a feature which will eliminate some 20 questions.

The objective of the FAFSA revision is simplification. So not surprising, one of the most frequently touted benefits to the new form is the ability to access your filed tax return to complete sections of the FAFSA form (a feature that will become available in January to those applying for spring 2010. It will be rolled out to all users later next year). A simple “Click Here” displayed in the income section for both the parents and the student instructs FAFSA to get your federal income tax information directly from the IRS. If you choose to use the IRS access feature you will no longer have to search for and re-calculate income data in order to complete the FAFSA. Much of what you need will come automatically from your filed return.

While this sounds like a vast improvement to a daunting form, the option of using financial information taken directly from the IRS may be a lot of hoopla that will have limited benefits in practice. Here is why.

As I noted in my June post, the information taken off your tax return is dated. If you fill out the FAFSA as soon as it is available on the website (January 1 every year for the school year beginning the following fall) in order to meet schools’ deadlines, you will be accessing a tax return showing income from two years prior. Once you retrieve data from the IRS and use this for your FAFSA, you can neither amend nor update it. The way the FAFSA completion process currently works, most people use income estimates and then update with actual numbers after the relevant tax return is filed. Using your tax data is not recommended for those married, but filing separately since only one tax return can be accessed. If your marital status has changed since your last filed return, you cannot choose this option.

Perhaps the greatest shortcoming to using your filed tax return is the fact that colleges will still want to see current financial data. So in the end you will find yourself gathering this information for the schools anyway. Furthermore, there are nearly 600 colleges and universities that require the CSS/Profile form for the purpose of allocating their institutional resources for student aid. That form has not been revised, so families will still be required to submit all of the financial data they had before.

Bottom line: don’t get too excited about the improvements to the FAFSA form yet. True, the skip logic and enhanced labeling and instructions should reduce the number of questions and some of the confusion. But in the end, most people are not likely to see any measurable reduction in the amount of financial data they are required to provide.

Tuition and Price Elasticity...How High Can It Go and at What Cost?

2009-09-15T15:10:00.000-07:00

For those of you who have studied microeconomics, you probably remember the concept of price elasticity: how closely a change in demand correlates to a change in price. When demand falls as a result of a price increase, the goods or services are said to exhibit price elasticity of demand.

Up until now it has been fair to say that the price of a college education has exhibited low elasticity. While tuition has steadily increased, the number of applicants and students enrolling has also continued to rise. This has given college administrators little reason to try to put the breaks on the escalating price of attending college since they have been able to pass on these additional costs through upward adjustments to tuition. As journalist Ron Lieber noted in a September 5 New York Times article (“Why College Costs Rise, Even in a Recession”), the ability to increase tuition and fees without triggering a corresponding slowdown in demand has meant that colleges have been immune to pressures to behave like for-profit corporations which regularly seek ways to cut the fat out of budgets in order to control costs.

Some predict that the rising tide of college tuition is finally turning, though probably not for all higher education institutions. The most selective schools with strong name recognition will, no doubt, still draw many more applicants than they can possibly accommodate. However, crossing the $50,000 threshold and maintaining enrollment, especially in difficult economic times, may no longer be a realistic scenario for schools that are not in the top tier of selectivity.

Lieber goes on to say that holding tuition steady and opting instead to make unpopular cuts to a budget may be easier said than done. One of his key arguments is that colleges, especially liberal arts institutions, don’t insist that all academic departments be profit centers. Hoping to appeal to students with varied interests, they choose to provide a full range of majors regardless of whether the economics of doing so makes sense. Schools regularly allow the more popular majors to subsidize those that fail to breakeven. A thriving English department which generates ample income allows a college to rationalize offering majors in other departments that attract only 3-4 candidates a year.

After reading Lieber’s article I started to think about the future of the liberal arts education, especially given that many colleges have already reached the $50,000 mark and will, if you believe Lieber, be limited in their ability to continually raise their price. As colleges begin to take a hard look at how to reduce their budgets, some may start to rethink the feasibility of offering the full panoply of liberal arts subjects. Specialization may become more the norm than the rule, at least at colleges that don’t have the Ivy or quasi-Ivy League draw.

Some schools have already begun to re-think how they attract and retain students with broader academic interests, without having to incur additional costs or raise tuition. In August of this year, three Boston area colleges: Wellesley, Babson and Olin College of Engineering, announced a partnership to develop and offer joint programs which will expand the educational opportunities to students at their respective schools. The three institutions, possessing very distinct missions and few overlap academic departments, will now be able to collectively provide courses that had not previously been offered to their students, and at very little additional cost. I think it is reasonable to speculate that other schools will decide to take this one step further in the future, and may actually eliminate departments while partnering with neighboring colleges that have similar majors. Haverford and Bryn Mawr, within a short drive from each other in neighboring Philadelphia suburbs, in fact already do this. Are we likely to see more specialization and sharing of curriculum and faculty in the future? Sheer economics may become the overriding factor prompting such decisions for other colleges as they cross the $50,000 cost of attendance threshold. The implication for prospective students: if you plan to pursue a course of study that is less popular, try to get a sense for a college's commitment to that program before you commit the next 4 years to the school.

Score Choice...Misnomer?

2009-09-07T18:33:00.000-07:00

What’s so great about Score Choice, the new College Board reporting policy that allows high school seniors to choose which of their SAT standardized test scores to send to colleges? After the initial excitement and fanfare many have concluded: perhaps not much.

Last year the College Board announced its plan to introduce the concept of Score Choice, allowing students for the first time to be selective about which SAT scores to send to colleges. The new reporting rules became effective beginning with the senior class graduating in 2010. The reason for the change in policy, according to the College Board, was an effort to “reduce student stress and improve the test day experience.” In actual practice, Score Choice is not as simple as originally hoped,and therefore, is not working exactly as initially planned. Individual colleges, it turns out, will still determine their own requirements that trump anything dictated by the College Board, suggesting that simplification and stress reduction could not be further from the truth.

And right from the start the program has had its critics. Is Score Choice just a ploy to increase fees to the College Board as students feel the need to take the tests multiple times in an effort to maximize their scores? Does the new policy further discriminate against less economically fortunate students who can afford neither test prep nor the registration fee for multiple test sittings?

Shortly after the initial announcement colleges started weighing in too. One by one many highly selective schools quickly made clear that regardless of the College Board directive, they would still require that applicants submit all scores. After all, most colleges state that they super score anyway, meaning they take the highest SAT section score from all test sittings. Why then would a student not want to submit all scores, especially if the highest math score was achieved in May and the best critical reading score happened to be from the September test date? Isn’t submitting all scores really to the student’s advantage?

If you are looking for the simplest way to track down different colleges’ requirements, you can go to http://professionals.collegeboard.com/profdownload/sat-score-use-practices-list.pdf where you will also find explanations of the 6 score reporting options from which colleges and universities must choose. For the student who can readily grasp the nuances of each of these Score-Use Practices based upon the written explanation (the word “obtuse” comes to mind), automatic admission to the college of choice might be a reasonable prize. One caveat: the best source for determining an individual college's requirement is the college itself. If its policy is not posted on the website, do not hesitate to give the admission office a call.

I am not trying to intentionally bash the College Board. Rather, I want to point out that the complicated new policy has actually raised the stress level as students and families try to figure it out, especially when kids are applying to multiple schools that don't follow the same Score-Use Practice. So what is the solution? My advice to all students is to forget that Score Choice was ever offered as an option. Give it your best shot each time you take the SAT and send all of your scores!

College Rankings....Drum Role, Please!

2009-08-24T12:57:00.000-07:00

Last Thursday the U.S. News & World Report published its annual rankings of U.S. colleges and universities. The release of the rankings is always accompanied by speculation and anticipation…who will win the coveted top spot? The aftermath is equally predictable: schools that have moved up in the rankings tout their good news, other educators criticize the emphasis on misguided measures to rate schools, and parents spin into a frenzy and fret that their child may not get into one of the “top 25” schools. What amuses and frustrates me about these rankings and the clout that U.S. New & World Report commands is that no matter how questionable the criteria or poor the participation in the surveys which are used to rate schools, people from all sides of the aisle still look to the rankings as some kind of authoritative assessment of quality across the spectrum of higher education institutions.

Today I was reading the newly released college ranking issue while my freshman daughter, who heads off to college in a week, looked on. “Can I see this?” she asked as she grabbed the magazine from my hand. I knew exactly where she was headed…straight to the page with the rankings of liberal arts colleges. She quickly scanned the list, starting at the top, of course, and followed her finger down the page, glancing nervously for her school. “It isn’t here,” she said to me in a panic. “It’s there,” I assured her, and then pointed to it on the page, much to her relief, but not to mine. Despite everything I preach about “good” being what’s good for the student, my own daughter still falls victim to the ranking hysteria (I guess I do too since I already knew where her college ranked).

I, like most college consultants and counselors, make a point of talking to families and students about right fit and the fallacy of thinking one can actually meaningfully rank colleges. Do these rankings measure where your child is most likely to thrive, find the optimal social environment, get the best education that meets his or her needs and interests and at the best value, or whether the college he or she attends will predict future success in life (however one chooses to measure that)? Of course not! Then why are we overly fixated on them? We get caught up in prestige, name recognition and factors that have nothing to do with whether or not our children will receive a quality education that may open their eyes to the many possibilities available to them.

Here are some truths about the rankings. The U.S. News & World Report bases its rankings on 7 key measures, with the single highest weighted factor being that of peer assessment (in other words, the impression held by presidents, provosts or admission deans at other, unaffiliated institutions), which accounts for 25% of the ranking. Many schools choose to ignore these peer assessment surveys and only 48% actually filled them out this year. And among those that did, some are alleged to have manipulated their answers with the sole purpose of boosting their own rankings! The August 19 issue of Inside Higher Ed (http://www.insidehighered.com/news/2009/08/19/rankings) has a disturbing article that points out how schools may be gaming the system just to climb up the rankings.

Here’s my point: the flaws in these rankings are so obvious to so many, yet we still get caught up with them and ascribe undeserved value to the ranking order. Even with no intended manipulation, why would an admission dean at another college know or have any say in the quality of the education or experience a student will have at a college he or she may have never even visited and why is this given so much weight in the rankings?

So please, ask yourself as you assist your sons and daughters through the college admission process about the utility of college rankings and whether this is a good way to choose a college where your child will excel and be happy. What makes one institution better than the one ranked directly below it and who decided that college A should be listed higher than college B? Some of you will read this and continue to give undue attention and importance to these rankings. At a minimum, I hope you will think twice before you make assumptions about the value of a four year college or university based upon where it stacks up according to U.S. News & World Report. I very much welcome the thoughts of my readers on this topic!

A New Credit Program to Help Repay Student Debt

2009-08-16T17:56:00.000-07:00

The challenge of financing a college education has spawned many proposals on how to help students finance and achieve their college dreams. One of the newer and more innovative ideas received some press in this past Saturday's New York Times (Aid for Students Facing Mountain of Debt). The featured start-up company, SafeStart, has developed the concept of providing interest-free credit lines to student loan borrowers. The company's objective is to offer students a way to protect their credit and ease their cash flow should they experience financial hardships within the first few years after graduation. SafeStart also offers financial literacy training and debt counseling services to assist its student clients.

Here’s how the program works: Undergraduate students with guaranteed Stafford loans who face financial hardship after graduation or who go back to school during the repayment period can draw down on an interest-free line of credit. Advances under the line of credit are available to cover loan payments for up to 36 months over five years. After the five year borrowing period, the student must repay the SafeStart loans in 60 monthly payments.

The cost of the program ranges from $40 to $70 per each thousand dollars of principal borrowed, payable up-front. So a student who borrows $20,000 and is charged $70 per thousand will end up paying $1,400 for access to the line of credit. This is roughly equivalent to one year of interest on $20,000 in unsubsidized Stafford loans at 6.8%. The variation in fee charged is a function of whether the student opts for the financial literacy and debt management offerings, but the charge will also vary by college, presumably reflecting a specific school's student loan default history. To qualify to drawdown under the line of credit a borrower's monthly loan payment must exceed 10% of his or her income. One's credit score has no bearing on the ability to take advantage of this service, but a student’s college must participate in the program. While the company claims to have more than 600 schools signed up, I went to the website and typed in my alma mater, Wesleyan, only to discover that it presently does not participant.

The principals of SafeStart assert that they do not compete with the federal government’s income-based repayment plan that began July 1 of this year. Under that program, which was discussed in my June 5, 2009 blog posting, borrowers can cap their Stafford loan payments at a maximum of 15% of the amount by which family gross income exceeds the poverty level (currently $16,245 for an individual), and any amounts borrowed which remain outstanding after 25 years will be forgiven. With the income-based repayment plan, debt payments that are deferred due to the payment cap will continue to accrue interest, unlike borrowings under the interest-free SafeStart line.

So I decided to do a little calculation to test how eligibility to borrow under the SafeStart line compares to the payment cap on the federal government program. What I determined is that a student making $30,000 a year with a $230 monthy loan payment ($20,000 loan at 6.8%) would only have to pay $172 and could defer $57 a month, or $685 annually under the income-based repayment (with interest of course). Under the SafeStart program, the monthly loan payment would have to be $250 (higher than the actual $230 payment) in order to render the line eligible for borrowing. In other words, SafeStart only really has value for students who have a lot of debt!

Still, the SafeStart program may be a good option for some students, especially if they anticipate choosing a career where income is likely to be low in the early years, though the government's income-based repayment plan addresses the same issue. However, here are some caveats that should be considered before signing up for a SafeStart credit line. This works essentially like an insurance policy. One may end up paying a premium or fee for a policy that he or she will never access. In that case, the company says it will refund 30% of the fee paid. The programs is currently only available to cover undergraduate Stafford loans, though SafeStart’s website claims that it will roll out similar programs for graduate student Stafford loans, graduate PLUS and Perkins loans either this fall or by winter 2010. Also as mentioned, many schools do not currently participate, though that may change over time if the program catches on.

However, one of my prime concerns, as a former bond insurance executive, relates to SafeStart's future financial health. A company that extends credit must have ongoing access to liquidity (cash) and financial resources. SafeStart collects an up-front fee with a promise to extend credit for future drawdowns. What does that mean for someone who has paid the $1,400 in advance? The company may not have available funds to lend at the time the student needs it. I would just want to know more about the long-term financial viability of this company before I signed up for its loan repayment plan.

Test Optional - Why Some Colleges Have Decided to Look Beyond Standardized Tests

2009-08-13T06:52:00.000-07:00

More colleges and universities each year are choosing to go test optional, meaning that they no longer require standardized tests in the college admission process. One college, Sarah Lawrence, has taken it a step further: the school will not even look at standardized test scores even if submitted by the student. Institutions adopt test optional for a variety of reasons. They typically cite a desire to improve overall diversity, as test score requirements are believed to discourage minority applications and favor those from more affluent communities. Additionally, experience has shown that standardized tests are a less reliable predictor of performance in college than transcripts and grades, and in fact add little additional significant information to the student’s profile beyond what the college has already gleaned about the individual from other parts of the application.

There are now more than 820 accredited four year institutions that have decided to forego standardized test requirements and the number has been increasing each year. While I am not a proponent of the U.S. News and World Report rankings, I do think it is noteworthy that 32 of its top ranked liberal arts colleges no longer require standardized tests in their application process. This includes schools such as Bowdoin, Bates, Smith and Colby.

So what does this mean for the college applicant? If the standardized test scores do not reflect an otherwise strong academic performance, a student might want to consider applying to a few test optional colleges. You will rarely hear that a college values high SATs over grades and rigor of the high school curriculum. In fact, the reverse is often the case. Many will question a student’s motivation and effort when high test scores are not matched by classroom performance. However, students should not choose the test optional approach just to get out of taking or submitting SAT or ACT scores and as a way to take a short cut in the application process. Many schools will require that a student submit a graded paper or write additional essays in lieu of test scores. The complete list of test optional institutions and their specific requirements can be found on the website www.fairtest.org.

While the intentions of colleges and universities that have gone test optional are generally viewed positively, some critics are suspicious of the motives and believe that less altruistic objectives drive these policies. No one argues the equity and inclusion benefits, but skeptics question whether there is an unspoken agenda: are colleges also seeing this as a way to increase the number of applications, raise selectivity statistics and improve average test scores (which impacts rankings) by factoring in only submitted scores? But here is the real contradiction: many schools that have jettisoned standardized test requirements in the name of fairness, inclusion and limited reliability still use the scores as a primary factor in determining merit aid awards. How these colleges reconcile what appears to be conflicting policies is a hotly debated topic among admission officers.

The evolving role of standardized testing in college admission prompted the formation of the National Association for College Admission Counseling's (NACAC) Commission on the Use of Standardized Tests in Undergraduate Admission in late 2006. Its report to NACAC members at the annual conference in Seattle last fall made national news and basically concluded that one size does not fit all. Schools will continue to choose whatever evaluative tools best enable them to craft the desired class. No doubt this topic will receive more attention at NACAC's upcoming conference which I will be attending in Baltimore next month. Stay tuned to hear more in the future about how colleges select and justify their admission policies on standardized testing.

Textbook Rentals - A Viable Option for Managing College Costs

2009-08-01T13:08:00.000-07:00

While tuition, room and board comprise the bulk of expenses one will pay during the college years, families actually should be focusing on the total Cost of Attendance, otherwise known as the COA, which also includes miscellaneous personal expenses, the cost of traveling to and from school, and textbook purchases. With prices of textbooks rising faster than the rate of inflation, today’s students can expect to pay a few thousand dollars alone in class reading material by the time they graduate. The high price of textbooks has spawned an active used-book market, as students have discovered that a few dog-eared pages and some yellow highlighting are worth overlooking in order to keep textbook costs down.

Now another option has emerged: textbook rentals. The rental alternative is available through recent online start-up companies such as Chegg.com and BookRenter.com, which claim to carry a selection of more than 2 million titles each. Some colleges have even begun their own on-campus programs.

The cited advantages to students in book rental programs are compelling. Companies quote discounts of 65 to 85 percent off the list price and books are either new or are generally in better condition than one would find on the used textbook shelf. Students can rent for the full term or semester, and may find that returns through pre-paid postage boxes, once the course is finished, make the process simpler than negotiating the re-sale of one’s textbooks at the bookstore.

However, before encouraging your student to rent textbooks, make sure you understand the potential drawbacks as well. Rental companies require students to return textbooks as soon as the course is completed, though may agree to a few day extension if arranged in advance. A 20 percent penalty is often assessed for a short delinquency period of about two weeks. After that, the student will be forced to pay the full list price and in essence buy the book as if it were new. So know your son or daughter! If procrastination, forgetfulness or the tendency to lose things are issues, renting may prove not to be a cost effective option.

The fact that rented books are generally in better condition than purchased used textbooks is no doubt due to each company’s policy of prohibiting doodling or writing in the margins. Limited highlighting is okay, but anything more will carry a similar penalty to the late return. The student will end up buying the book. Again, know your student.

Lastly, renting is only a viable option if there is no benefit to the student to keep a textbook past the end of the semester. For example, if building a personal library of books in one’s major is important, then renting makes little sense. So my best advice on textbooks: know the options, yet take into consideration your child’s needs and habits!

Net Price Calculators - What Will College Really Cost?

2009-07-18T12:04:00.000-07:00

For those of you with a son or daughter who has already been through the financial aid process, you may have wondered why the award packages that accompanied your child’s acceptance letters differed so dramatically from school to school. Afterall, you filled out the FAFSA form which provided your Expected Family Contribution, or EFC. How is it possible that the colleges each assessed your need so differently and how might you have anticipated what the true cost of a particular school would be?

I am a strong advocate for knowing what you are getting yourself in for in terms of college cost and what you can afford before your son or daughter’s heart is set on a school and the application is sent. Here is the good news. Come August 2011, some of the guess work will be eliminated from the cost estimate part of this process. One of the provisions of the Higher Education Opportunity Act of 2008 requires that all colleges and universities which receive Title IV federal funds offer a net price calculator on their website within the next two years. The purpose of these college specific calculators is to provide a closer approximation of what the true “net” cost of a particular college will be for an individual student, given the school's own financial aid practices and history.

While the difference in aid packages is the result of multiple factors (one of which is a college’s own limited financial resources and how it chooses to allocate them), a major contributor to the discrepancies is that schools often use their own criteria when it comes to packaging their financial aid awards, separate and distinct from that asked on the FAFSA. This is especially true for colleges that require students to also submit the school's own proprietary form or the CSS/Profile. Additionally, colleges exercise something called “Professional Judgment” which is their way of deciding how and when they will deviate from the hard numbers on the financial aid forms. So while online calculators found on multiple college source websites are a nice idea, they are far too generic to provide any real utility.

Colleges will have the option to develop their own templates or adapt one that is being developed by the Department of Education’s (DOE) National Center for Education Statistics (NCES) and which will be available to them in August of this year. Several schools have gotten a jump on the task and have already posted school-specific net price calculators to their websites. Among them are Amherst, Williams, MIT and Purdue. While these calculators still have limitations and cannot replace the thinking and ultimate judgment of the financial aid officer, they should provide a much closer “estimate” of the net cost of attending a specific institution. Each college’s model will draw from its own database, enabling it to match as closely as possible a family’s financial profile to its historical aid packages, which is also expected to include merit-based aid.

The implementation of net price calculators and other provisions such as the required annual reporting to the DOE of Cost of Attendance (COA) and financial aid awards will hopefully achieve the intended objective of improving the transparency on the cost of attending college. If done right, this should take much of the guesswork out of the cost side of the college equation.

Influencing a Young Adult's Financial Habits - The Parent's Role

2009-07-09T12:54:00.000-07:00

As your sons and daughters reach young adulthood and take those first steps towards independence (isn’t that the goal?!), ask yourself whether they are leaving the nest with a healthy attitude about money and are prepared to responsibly manage their personal finances. Why some kids form good financial habits and others falter in matters of money is a question posed by a program initiated at the University of Arizona and known as the Arizona Pathways to Life Success for University Students or APLUS.

With a representative sample size of 2,098 students who were freshman in the fall of 2007, the study seeks to understand the relationships and factors that influence financial habits and how these attitudes are formed. Questions asked in the survey focus on issues of budgeting, borrowing, saving money and paying bills.

The researchers began collecting their first set of data in the spring of 2008, during the students’ second semester, and used this information to create a statistical model that assessed how parental teaching, work experience and high school financial-literacy courses affected the students’ behavior. I doubt the initial findings will come as a surprise to anyone: the researchers found that parental teaching was by far the most influential factor. Its impact on students’ financial relationships with their parents, satisfaction with their own monetary behaviors, and the wisdom of their actual financial habits is more significant than the other two factors combined.

As the parent of teenage daughters, I must admit that the initial results of this study hit home…literally! We hear that the behaviors we model will influence our kids’ attitudes and leave an impression that lasts long after they leave home. But is it enough to exercise good financial habits without teaching them the basics? The message to take away from this study is that we as parents need to consciously teach and communicate good financial behaviors to our children and not take for granted that they will know what to do when they venture out on their own. This is not something they pick up through osmosis. They need to be taught the difference between risky and sound money management practices as well as purely practical things such has how to balance a checkbook. These are the lessons that will enable them to establish healthy financial relationships in the future with their families and partners.

The researchers at APLUS had initially planned to collect the next round of data during the students’ senior year, yet have decided to use the current recession as an opportunity to measure the economy’s effect on the sample group’s behavior. The results of the follow-up survey which the students completed this past spring are expected to be released in the fall. For anyone interested in seeing the report on the initial phase of the study you can find it at http://aplus.arizona.edu/finalReport.pdf.

Tough Economic Times Prompt New Questions for College Visits

2009-07-04T08:01:00.000-07:00

I’ve mentioned in earlier postings that many colleges have maintained or have even increased financial aid for the coming academic year in order to meet the needs of the increasing number of families unable to pay the full cost. Some schools continue to devote resources to financial aid so they can draw and retain desired students. Obviously pressure on endowments and college budgets mean that the additional funds for financial aid have had to come from somewhere. Most schools report that postponed building projects and staff and employee benefits have borne the brunt of it. Just last week Harvard announced that it would cut its staff by 275 employees, a move that will impact nearly every one of the university’s 10 schools. The point is that while families should be pleased by the commitment to financial aid, it is prudent to look beyond and question how these cuts might be impacting academic and athletic programs, and other offerings and amenities on college campuses.

So as you approach the college search, be sure to inquire about the fiscal health of the college or university. Colleges such as Antioch in Ohio and College of Santa Fe in New Mexico have recently closed their doors, unable to survive under their financial pressures. How unfortunate it must have been for their students who had to scramble to find a new home to finish their degree programs. Other colleges have taken less drastic measures, like cutting sports teams. Case in point: the student who had hoped to wrestle for MIT had better look elsewhere; the university will be eliminating 8 varsity teams come the fall, including wrestling.

Here are some suggestions on questions students and parents should be asking of college admission staff in order to feel confident that the academic, athletic and other programs they seek will not be cut from the budget in the foreseeable future.

1) What has been the college/university’s policy towards financial aid? How has it changed in this recession and what are they budgeting for the coming years?
2) Do they claim to be need-blind or need-aware and will they meet fully demonstrated need? Do they anticipate revising this policy in the future? Reed College in Oregon, for example, abandoned need-blind admissions this year and as a result, began to factor (or at least, now publicly) ability to pay into their admission decisions.
3) If you are eligible for need-based aid, find out the range of grant aid offered and the amount that students are typically expected to borrow. How has the school addressed its budgetary pressures and what steps have been taken to date to adjust? How have these steps impacted the college?
4) Ask specifically about staff cuts, in what departments, and what that has meant for courses and programs offered.
5) Has elimination of some courses or perhaps fewer sections offered impacted a student’s ability to fulfill requirements and graduate within 4 years (and while you’re at it, inquire about the 4 year graduation rate!)? It might be worth talking to students or to a faculty member of a particular department to get the real story.

If you are reluctant to ask these questions, keep in mind that you will be making a sizeable investment in your son or daughter’s college education and future. Like any other investment, this one entitles you to know how the money will be spent and what type of yields you can expect to receive.

Changes to the FAFSA: Sooner Than You Think

2009-06-29T17:45:00.000-07:00

For those of you who have struggled through the dreaded process of filling out the Free Application for Federal Student Aid, or FAFSA, in order to be eligible for financial aid or just to apply for unsubsidized Stafford loans, take heart. The Department of Education announced last week that it intends to substantially modify the process by making the FAFSA shorter, simpler and more user-friendly.

This streamlining will take place in 3 steps:
- Beginning this summer, enhanced skip-logic on the web-based FAFSA will allow applicants to bypass many more questions that are irrelevant to their situation. For example, students who are married or 24 and older, and therefore considered independent, will no longer have to answer questions about their parents’ finances.

- In the second phase, the Department of Education will ask Congress to pass legislation allowing the elimination of numerous questions that ask for financial data not found on tax returns. The department claims that since much of this information is not verifiable, especially that pertaining to assets, it adds little value to the process of awarding aid. So expect to see many of the asset questions discarded should Congress agree to the changes…no more reporting home equity which actually counted little towards the Expected Family Contribution anyway.

- The third step will be rolled out first as a pilot program to students applying for aid in the spring term of 2010. The program will allow students to populate 18 questions on the revised form with data retrieved from their most recently filed tax return. Why use this target group? Keep in mind that most of us have not yet filed our tax returns by the time we are required to submit the FAFSA to schools in early February in order to meet their financial aid deadlines. We complete the form as soon after January 1 as possible using estimates, to be updated with actual tax return data at a later date. Those applying for financial aid for the spring term start the process several months later, after the April 15 tax filing date. Again, this is only a pilot program. Questions still abound as to whether this will be a fair measure of need since using the last filed tax return in most cases for those filing for fall will mean relying on information that may be up to two years stale. One potential consequence is that colleges and state institutions cease to rely on the FAFSA and institute their own forms if they believe the information is too dated to be meaningful.

Will these changes be sufficient to generate greater accessibility to students or do they go to far? While that is being debated. some streamlining is already in the works, and that’s the good news for those who do not eagerly anticipate completing another FAFSA form come January 1, 2010.

Honors College Education at a Bargain Price

2009-06-19T14:14:00.000-07:00

Don’t rule out state universities in the south if you are looking for honors college experiences at a far more reasonable price than you will find for comparable educations in the northeast. My recent trip down to Georgia and Alabama included four state universities (Georgia Tech, University of Georgia, University of Alabama-Birmingham and University of Alabama, Tuscaloosa), all with top quality honors colleges that are actively seeking to increase their geographic diversification and draw students from outside the southeast. These top-notch programs are well kept secrets just waiting to be discovered. The number of Fulbright, Goldwater, Marshall and Rhodes fellowship recipients is comparable to that at the Ivy League colleges. What’s more, for the student who is looking for a reasonably priced education, small classes, plenty of research opportunities, yet the campus spirit and excitement that come with attending an athletic powerhouse, these schools should not be overlooked. You can go to each university’s website to check out their honors programs and the types of scholarships they offer.

I also had the opportunity to visit several wonderful private colleges and learned that most offer meaningful tuition discounts, especially to candidates they are anxious to recruit (read: out-of-state!). Two of my favorite lesser known colleges were Birmingham-Southern College in Alabama (one of the Colleges That Change Lives), and Agnes-Scott College, a gem of an all-women’s college in the charming Atlanta suburb of Decatur. Its graduating senior class produced two Fulbright scholars this year and more fellowship recipients than the colleges in the Ivy League.

So think about expanding your horizons and looking beyond the colleges in the northeast and mid-Atlantic states. You may be pleasantly surprised by the quality of the education, beauty of the campuses, lifestyle, and cost!

Looking to Canada for Value

2009-06-07T07:46:00.001-07:00

While Canadian colleges and universities have been increasing in popularity among American students over the past few years, the state of the economy has contributed to a recent surge in interest. Primary reason: Value! The cost of attending many private colleges in the U.S. has topped $50,000 a year. By contrast, the total annual bill for foreign students at a Canadian university is in the $30,000 range, a 40% savings!

But cost is not the only reason that Canadian schools have experienced an increase in applications and matriculation by American students. Canadian universities had been attracting more and more U.S. citizens well before the current economic crisis. Over the past 12 years the number of U.S. students studying in Canada has more than tripled to top 9,000. And as more American students head north, the benefits of attending a Canadian university are no longer such a well-kept secret. Those benefits include globally recognized academic programs, the opportunity to enjoy an international college experience without venturing far from home, state-of-the-art campus facilities in cities such as Montreal or Toronto, and a far less cumbersome and more straight-forward application process (no essay or letter of recommendation requirements).

American students attending schools in Canada can take their Stafford or PLUS loans with them across the border, though Pell Grants are not transportable. So if you are sensitive to cost (and who isn’t), want a top quality education with a vibrant student life experience, and are willing to explore beyond the U.S. border, then you might consider the Canadian university option. Check out the Association of Universities and Colleges of Canada’s website at http://www.aucc.ca/ to learn more.

New Option for Federal Student Loan Repayment

2009-06-05T12:38:00.000-07:00

Borrowers graduating from college with student loans are about to get some relief from the federal government starting on July 1. Those in good standing on their student loan payments will be able to take advantage of a new program that will allow them to tie their monthly loan payments on federal loans to what they make, rather than to what they owe. Monthly loan payments will be capped at 15% of the amount by which gross income exceeds the federal poverty level (now $16,245 annually). Furthermore, if the loans are not fully paid off after 25 years, the unpaid balance will be forgiven. While this is generally great news for graduates starting out with modest post college incomes, there is some fine print of which borrowers should be aware.

As income rises, so will your monthly debt payments. That’s not a reason to turn down a raise, but don’t be surprised when the required loan payment suddenly increases.
Income used in the calculation is household income, not just the borrower’s; if a person is married, the spouse’s income will factor into the formula to determine the maximum payment amount, provided the couple files jointly. Filing separately will get around this issue. However, the taxpayers will forfeit other tax benefits such as student interest deductions which are only available to married couples who file jointly.
Payment reductions will slow down debt amortization. The not-so-desirable result is higher interest charges over the life of the loan.
Any debt that is forgiven after year 25 will be treated as income and therefore subject to taxes.
And as noted, borrowers must be in good standing to take advantage of the payment option.
This program applies to federal loans only. In other words, payments on high interest private student loans cannot be tied to income.

In an earlier post I discussed the advantages of the federal, or Stafford loan program, over other types of borrowing to finance one's education. The new income-based repayment program will provide another reason to exhaust this borrowing source before resorting to other types of loans.

Credit Card Reform...It's About Time

2009-05-27T06:59:00.000-07:00

Financial institutions that prey on college students by offering gifts and other promises in order to entice them to sign up for credit cards has been a huge problem…one that fortunately is about to come to an end. Both the House and the Senate recently passed the Credit Card Accountability Responsibility and Disclosure Act of 2009, which President Obama is expected to sign into law. What is significant about this act? Aside from addressing what are considered unfair practices with respect to interest rates charged to cardholders, this act will do much to curb potential abuses targeted at college students. You may recall from one of my prior posts that students graduate from college with, on average, more than $4,000 outstanding in credit card debt, according to a recent Sallie Mae survey. This truly illustrates how serious a problem student leverage has become.

The most significant provisions of the act relating to college students can be summarized as follows:
- The issuance of credit cards to consumers under the age of 21 is prohibited unless
- a co-signer, 21 or older, agrees to be jointly responsible for the account, or
- the borrower can demonstrate independence and the means to repay debt incurred under the card.
- Credit card companies may no longer offer give-aways on or near college campuses to induce students to sign up for credit cards; The act will also encourage colleges to set policies that will limit credit card marketing locations and institute credit and debt counseling as part of their student orientation.
- Any contracts between colleges and credit card companies will require public disclosure.

This is a much needed first step to address a practice that is contributing to the potential financial irresponsibility of the Millennium generation. The changes that the act will institute are overdue, and we as parents should take this opportunity to also counsel our children on good and bad debt to help them establish sound money management habits as they move on to financial independence.

Finding the Colleges That Will Change Your Child's Life

2009-05-19T14:24:00.000-07:00

Many of you are probably familiar with Loren Pope’s book, Colleges That Change Lives, in which he identified 40 schools that he believed offer unique college experiences and which have strong track records for producing graduates who go on to become successful scholars and scientists. Last night these 40 colleges drew a crowd of several hundred students and parents at the Colleges That Change Lives (CTCL) information session and college fair in New York City. Whether or not one of these schools is potentially the right fit for your son or daughter (go to the website to check out the list of these 40 colleges: http://www.CTCL.org), the approach has merit for all students beginning the college search process. The CTCL colleges travel across the country each year as a group to reach out to students and families and to share their philosophies on admission and on picking the right college match:
- Don’t let yourself be seduced by rankings such as those in U.S. News & World Report, which are based upon entering student statistics. These rankings say nothing about what goes on during the four years in college!
- Identify schools where serious and thoughtful scholarly work is performed. Pope picked his 40 schools by finding out where PhD students did their undergraduate studies. These colleges out pace many of the more selective schools in terms of the number of future PhDs they turn out each year.
- Look for colleges that are student centered and focused on undergraduate education.
- Find schools that produce creative and critical thinkers, encourage cooperative rather than competitive learning, and where students are engaged in intellectual pursuits both in and outside the classroom.
- Bottom line: Look at outcomes, rather than inputs. What do students accomplish while they are in school and what paths do they follow after graduation?
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The principle message of the CTCL schools is that students are more likely to have meaningful and worthwhile college experiences if they jettison the criteria of name recognition, prestige and ranking, and focus on understanding their particular needs and how these will be met by the mission and identity of the college community they choose. Young people owe it to themselves to take ownership of the process. That means knowing themselves well and having the confidence about what they have to offer. Your son or daughter is more than just test scores, a GPA and his or her class rank. Fortunately most colleges are more interested in learning about who the student is as a person. They share your objective of helping your child find the right fit and have the best possible college experience!

Teaching Financial Responsibility - Talk to Your Kids About Money

2009-05-14T16:48:00.000-07:00

This week I gave a presentation on Good Debt/Bad Debt to students at Chess-in-the-Schools, a not-for-profit after school program for New York City youth. I am hopeful that they left the session that much smarter about how to manage their personal finances. I am encouraged that I made some headway and was able to impress upon a group of high school kids that good financial habits will make or break their ability to lead financially secure lives.

Personal financial responsibility is a subject that needs to be taught to all young people, not just kids from lower socio-economic backgrounds who have no safety net. No one wants a child to graduate from college with excessive and unpaid credit card balances or to rack up large and unmanageable debts during any point in his or her life. Many of us had children in our thirties, and need to be thinking about our retirements too. Do we really want to be supporting our children’s bad spending habits after we’ve shelled out an obscene amount of money for a four year college education that we hoped would lead to their financial independence?

So what can we as parents do? Don’t wait until they go off to college to talk to them about good personal financial habits. Teach them the difference between good debt and bad debt. Using a credit card for impulsive purchases and paying the monthly minimum balance means that they are probably financing that purchase, at an 18% interest rate, over a period exceeding 20 years! At a double digit rate, the amount of interest they’ll end up paying will exceed the cost of the original purchase. If your son or daughter has a newly acquired credit card and is finding it difficult to pay off the balance each month, suggest using a debit card which takes the money directly from the checking account (but make sure that the checking account has sufficient cash so as not to overdraw the account). Help your child to see the need to cut back on impulsive spending.

Here are some staggering statistics. A recent survey conducted by student lender Sallie Mae, as reported on Bloomberg, revealed that 84% of students have at least one credit card, compared to 76% in 2004. Students with credit cards have an average of 4.6 cards and half of them have 4 or more. The average credit card debt among graduating college seniors was more than $4,100 last year, up from $2,900 in 2004. And only 17% of those who responded to the survey said they paid off their credit card balances each month!

You may be shocked to learn just how easy it is for an 18 year old college student to get a credit card. The banks prey on them on college campuses, send mailings about low initial rate offers, post inviting pitches in college bookstores and even entice students with free lunches. Make your child aware of these seductive offers and help him or her to understand how to be responsible about money and credit. There is no shame being one of the 17% who pays off credit card balances each month!

We've Deposited...Now How Do We Pay?

2009-05-05T16:47:00.000-07:00

I am just back from college tours and an Independent Educational Consultants Association (IECA) conference in San Francisco. My college visits took me to Stanford University, Menlo College, University of San Francisco, Mills College, St. Mary’s College, Cal Berkeley and Santa Clara University, a rather eclectic grouping of schools. These trips always reinforce for me the benefits of the college visit experience, where one can truly get a feel for the campus and academic life, as well as the character of the student body. College visits are the only way to experience a school firsthand. There is no near substitute. When students make a judgment about whether they click with a particular school it is rarely cerebral. Fit is generally about feel: how well can I envision myself here?

But before I get ahead of myself talking about fit for the juniors just beginning this process, I want to continue with a topic that has been tops on the minds of many with high school seniors: how to pay for college, especially now that the May 1 deposit date has come and gone and students have committed to a school.

Myth #1: Families who do not qualify for need-based aid are the fortunate ones since they can afford to pay for college.

The opposite is often true. Middle income families are among the ones most affected by the economy and the rising cost of attending a four year school. Unless your child receives merit aid, he or she will not have access to outside resources such as federal or institutional grants that would help defray some of the costs. Even those families that were disciplined about saving for college are finding that the 529 plans have come up short. For many of us, closing the gap with income is a stretch.

If paying for college is a concern (you are not alone!), you hopefully gave serious consideration to all of these factors prior to putting down the May 1 deposit. Taking a more practical and realistic approach to financing a college education has motivated some to decide in favor of the more affordable option. The role that the financial factor will play this year has been the wildcard that has had colleges on edge about their enrollment numbers for the fall matriculating class. Some schools, perhaps in panic, even went to their waitlists prior to the May 1 deposit deadline, previously unheard of!

Whether your son or daughter is attending a state or expensive private college, you still want to consider all of your options for financing these four years. Scholarships are one route, but your student must be willing to devote the time and energy to filling out more applications and writing essays. Amounts tend to be in the $500 to $1,000 range, but with any luck, he or she will be able to win one or two that will make a dent in the cost. Good websites for scholarship searches include http://www.fastweb.com and http://www.collegenet.com/mach25/app, and some scholarship donors are still accepting applicants. Additionally, you may want to inquire in your guidance department to see if there are local scholarships that remain unclaimed. Don’t be alarmed if you have to register at a scholarship site, but you should never have to pay, so move on to another if they ask for money.

If savings, available income and scholarships still do not cover the cost, your option is to borrow, and unsubsidized federal Stafford student loans are the best priced loans for those not eligible for need-based awards. Students who do not demonstrate need can borrow up to $5,500 at 6.8% in their freshman year under this program. The amount goes up by $1,000 each of the next two years, maxing out at $7,500 for juniors and seniors, a borrowing total for all four years of $27,000. Though 6.8% is high based upon today’s interest rates, the loans are fixed so they hedge the risk of a rate rise. These loans are unsubsidized which means that the student is responsible for paying the interest on the loans while in school. Otherwise interest will be capitalized, or added to the principal. Principal repayment begins 6 months after graduation.

Other borrowing options include the PLUS (Parent Loan for Undergraduate Students), which is also part of the federal loan program. Unlike the Stafford loan, where the student is the borrower, PLUS loans are taken out by the parents and have no specific dollar limit. Parents who qualify (there is a credit evaluation) can borrow up to the full amount of the difference between the total cost of attendance and the student’s financial aid (grants, scholarships, Stafford loans, work-study). The rate is 8.5% if borrowed from a bank or 7.9% if the federal government is the lender. Unfortunately you have no control over the rate. The college determines in which program it will participate. Don’t forget that many of these loans will have to be repaid in 10 years, so before you start loading up on debt, check out one of the many student loan calculators to estimate your aggregate monthly payments after four years of borrowing. My favorite site for this purpose is http://www.mappingyourfuture.org. I plan to discuss reasonable debt load in an upcoming post so stay tuned.

Tapping home equity, if there is still any in your home, is another way to go. Families can take the mortgage interest deduction. However, equity lines of credit are generally adjustable rate. While the rate might be attractive today, expect that it will go up as the economy recovers, though anyone’s guess is when that will be.

In my view, two last resorts for borrowing are private loans, which are also adjustable rates, subject to rate increases, and retirement funds. Many banks have pulled out of the private loan market given difficulties over the past year and a half in securing funding for these loans. Banks that continue to offer private student loans will continue to do so only if the business remains profitable (i.e., the spread between the interest earned on the loans and cost of funding them is positive). Sallie Mae, the largest private student lender, recently changed its lending terms such that the private student loans it offers will now begin to amortize while the student is still in school. This is clearly an additional financial burden on a family that is paying for college at the same time. Lastly, your 401(k) is sacrosanct so do not touch it! Early withdrawals will result in a 10% penalty. Even borrowing against your retirement fund has its drawback. The money is no longer working for you and you must pay it back with after tax dollars, not a good strategy since the money you initially invested was pre-tax. Also keep in mind that you can borrow for college. You can’t borrow to fund your retirement so don’t raid this account!

One last thought on paying for college with borrowing and this is perhaps the most important point! You must fill out the Free Application for Federal Student Aid or FAFSA if your student is going to apply for unsubsidized Stafford loans, despite the fact that they are not need-based. To fill out the FAFSA you will need a pin number for you and your student (http://www.pin.ed.gov) which is used to sign the form. The FAFSA can be accessed at http://www.fafsa.ed.gov. The other primary reason to complete the FAFSA is that situations change: a parent loses a job or perhaps becomes sick. The last thing you want to do is have to scramble to complete yet another form if that were to occur. A situation change might even be a new family member or an additional student in college. These are factors that will directly affect your aid eligibility. Lastly, FAFSA rules do change from year to year, so your eligibility for financial aid may change as a result of an adjustment to the federal methodology. These are reasons why I advise all families to fill out the FAFSA form each year, regardless of their financial situation.

How Badly Do They Want Me?

2009-04-21T10:34:00.000-07:00

For those of you who may have missed the Education Life section in last Sunday’s New York Times, an article written by Laura Pappano titled The Office: Behind closed doors as aid officers decide just how much they want you to say yes, describes Boston University’s approach to awarding money. This is one of the more transparent articles I have seen in terms of shedding light on how aid dollars play into the enrollment management process. The executive director of BU’s aid office makes no apologies for the underlying messages that these award packages send: If you don’t get the financial aid you need, especially if you have been “gapped,” the school is telling you that it likes you enough to admit you, but you are not its top choice. If you read my prior post, you know that colleges use financial aid to entice students whom they want to attend; that is the unspoken truth.

So what is the best strategy for students? Devote the time when developing the college list in the spring of junior year to explore schools that will view you as a highly desirable candidate and colleges at which your special talents will be valued. There is no problem going for the reach school, but just be aware that if financial aid is an issue, being an “on-the-bubble” candidate may not only affect your award package, but might also impact your chance of admission.

While several colleges still claim to be need-blind, some are publicly moving away from that policy. Earlier this month, Tufts University announced that it had abandoned its need-blind policy for the last 850 applicants, or roughly 5% of the applications yet to be read. Their explanation was that the money just ran out. Message here: students requiring financial aid need to submit their applications early and not wait for the December 31 deadline, or whatever date it might be, in order to receive priority consideration for money!

Will we see more colleges follow the lead of Tufts over the next few years? Let’s not forget that colleges are businesses too. They have budgets to balance, which means that maximizing revenues and controlling expenses, especially in economically lean years, need to be a primary objective. Absent a quick rebound in the economy, which is not looking likely, do not be surprised to see other schools abandon the need-blind policy in the coming years. Some will continue to practice “need-aware,” which gets back to the point that money and candidate desirability are, in practice, not treated separately in the college admission process. Many people are skeptical that there are any schools today that can honestly state that they still maintain a Chinese Wall between admission and the financial aid office, regardless of the stated policy.

The Economics of a College's Admission Process

2009-04-10T12:28:00.000-07:00

If your child is a senior in high school and is evaluating college options, he or she is most likely consumed with the decision about where to spend the next four years. No doubt, how to pay for college is more of a factor in the decision this year than it might have been in years past. Whether or not you qualify for need-based financial aid, your child may still have been fortunate enough to receive a merit-aid scholarship from some of the colleges offering admission. Why do schools do this for students who do not demonstrate need? You may be surprised to learn that colleges which rely on tuition to cover most of their expenses are more likely to offer merit aid, even during these turbulent economic times. Unless they fill every seat in the class, colleges may find themselves short of precious tuition dollars needed to operate. These are the funds necessary to pay everything from faculty salaries to the utility bills. Better to entice a student to attend by offering a nice discount to tuition than to fall short in filling the available spots, which may in fact mean resorting to faculty layoffs and other cost reduction measures.

The April 6 issue of Time Magazine had an interesting article: Sticker Shock: Inside the College Financial Aid Game by Laura Fitzpatrick, a look at the financial aid and admission process at Skidmore College this year. This article provides some interesting insights into the workings of a financial aid office at a college that relies 80% on tuition for its funding. According to one school official, not meeting their enrollment numbers by just a single student can mean a $25,000 to $30,000 gap in the operating budget. Skidmore, like many other colleges, actually increased its financial-aid budget 8% this year (primarily need-based) by reducing costs elsewhere including travel, faculty raises, and by placing renovation plans on hold.

So how does all of this affect a college’s admission practices and is it true that no colleges are truly need-blind (meaning that financial need does not factor into the admission decision)? There is no doubt that college admission in this economy definitely favors the student who can pay the full fare. While some schools still profess to be need-blind, others admit publicly that they are “need-aware” or “need-sensitive.” The most desirable students will make the cut, regardless of their financial situation. However, on the margin, the students who can pay will edge out those who can’t. By the way, one should not assume that a college which professes to be need-blind or need-aware will fully meet a student's demonstrated financial need. More and more colleges are following a practice known as "gapping," meaning that they accept a student, offer an aid package, but one that falls short of paying the full cost of attendance (a subject for another posting).

Even for families that don't qualify for aid, many are finding it very difficult to justify the private school sticker price these days. A recent U.S. News & World Report survey (published April 8, 2009) found that 70% of prospective college students will alter their college plans, seeking less costly options than they might have considered in prior years. Though college costs have been rising faster than the rate of inflation for many years, the time has come when families are recognizing the need to think more strategically about college and cost.

The Decisions are In!

2009-04-09T14:08:00.000-07:00

Now that April 1st has passed, most colleges have notified their applicants of admission decisions, ending an unusually anxious period of speculation about how the economy, juxtaposed against the largest class of graduating seniors, would impact the admission decision process. Though many colleges did have record applications this year, some have actually hedged their bets, admitting more students and maintaining larger waitlists, in anticipation of student fallout due to the recession. This year no one on the admission side is confident that they will know what their freshman class will look like by the May 1 deposit date. Will families ultimately choose state school options, feeling they can’t justify the cost of private school tuition in today’s economy (for more on Paying for College – Tacking the Tough Questions, see my article under Helpful Resources – Recommended Reading on my website)? The likely result: colleges will go to their waitlists this year, perhaps to an extent not seen in prior years. Schools probably won’t know until August what their ultimate freshman class will look like, as students get off waitlists at their first choice colleges and walk away from deposits at other schools.

So what does this mean for students who have been waitlisted at their number one choice? No one can predict how deep into waitlists college will go this year. In prior years, 14% of waitlisted students, on average, were ultimately admitted, though Harvard took a whopping 200 off the waitlist last year! While I honestly believe that colleges will heavily rely on waitlists to fill their freshman class this year, I would not advise a strategy of holding out for a school. It’s still a big unknown so students should focus on the options that they have and commit to a college that has already accepted them. That doesn’t mean you should give up on your hopes of getting off the waitlist. Get in touch with the school and let them know of your continued interest and why you think you are a good fit. Be specific on what appeals to you about the college and what you have to offer the school. Update the admissions committee on any positive changes in your profile, whether it is grades, awards, or some other honor or achievement. Then, don’t stalk. You have demonstrated your interest. Now commit in your mind and heart to one of your accepted school options. Remember, all your choices are good ones!