School Counselors and Independent Consultants Working Together

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

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

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

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

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

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

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.