Preparing for College

Cost of college: Student, saving money

Librarian — Mon, 30 Jun 2008 21:20:00 GMT

You've heard it before - but it's true: College is an investment in your future that you and your parents should start planning for now. If you are planning to attend college then you will most likely be accruing some sort of expenses, regardless if you have received financial aid, scholarships, and grants or if mom and dad are floating the bill.

Keep in mind that financing your college education means much more than just paying tuition.

There is room and board, books, lab fees, food, student membership fees, entertainment and much more.

Will you have car? Then you'll need to consider paying for parking, insurance - which may change if you are moving out of state, and gas.

Do you plan on living in an apartment? Then you have rent, security deposit and possibly even renters insurance.

It is easy to see how the price of college goes up and up.

So what are some of the ways students can save money for school or better yet, while in school?

The first thing you need to do is know where you stand. Talk with your parents and ask them if you will be expected to pay for some or all of your education. Knowing exactly how much you'll need to save is motivation enough.

Make Goals and Prioritize.

Think before you make any purchase. Do you really need that Ipod? Would it be better to spend that money on books (which can cost you close to $300 a semester). Teens on average will spend about $170 a week. Take into account how many weeks there are in a year (52) and that's a lot of dough! Though you may have money now, you need to remember your goal. Is it worth spending that money now or holding on to it when it really matters?

The Summer Job

In "A Bug's Life" the ants spent all year gathering food for the grasshoppers. This is a good mindset. Start early gathering food...or in your case, cash! The summer of your freshman year is when you should begin.

To give you an idea of how starting early plays to your advantage, let's looks at some numbers:

Say you work and average of 15 - 20 hours a week during school at $9.00 per hour.
9 months while working in school can make you close to $5,000.
Take the three months of summer working 30-40 hours a week and you are looking at an extra $3500.
So in one year you have the potential to earn $8500 before taxes.
Multiply that number by four years and you have $34,000.
After taxes you could still be looking at around $25,000.

That's a nice nest egg to have while in school.

Note: Working more than 15 hours a week during school has been shown to hurt studies

At the very least students should try to contribute up to a total of $4,000 a year toward college costs. You should also seek out employers who may offer education benefits.

Community College

Consider getting your general education courses out of the way at a community college. Not only will the price tag most likely be significantly lower, you will have the opportunity to continue to work as your learn. When its time for the four year school you'll be able to concentrate on your major and spend less time working.

Volunteer

Consider deferring school for a volunteer year in AmeriCorps, VISTA, or a similar program. You'll get a living stipend up to $4,725 toward future college costs. Even better, a growing number of colleges are matching that grant with scholarships.

Tax Benefits

Do some research to find out if you are eligible to get any tax breaks such as the Hope or Lifetime Learning credits, or take an education deduction. Those could reduce April's tax bill by up to $2,000.

Take a Class or Test Out

There are also courses that can be taken during high school (such as advanced AP courses) to earn college credit that will reduce the number of courses that need to be taken once the student begins college. Talk to your school's guidance counselor to ensure you're also doing all the right things to academically prepare for college.

CLEP out if possible: Try studying and passing tests, such as the CLEP and DSSTs, to place out of the freshman year and thus reduce total educational costs.

The Free Money

Last but not least, discuss what your family can contribute and then aggressively go after "free money" options such as scholarships, grants and employment opportunities.

Helpful resources

Now you have an idea of how saving money will play in your favor, check out a cost estimator calculator to determine your Expected Family Contribution (EFC) and financial need, and to estimate your student financial aid. Then, add up your total resources from savings, grants/scholarships and work. If your resources can cover your expenses, you're all set. If not, you'll see what you'll need to save to make up the difference from student loans and other sources.

Play with this tool from the US Department of Education: http://nces.ed.gov/ipeds/cool/

First enter the school's name
After you've clicked on your school's name, click on "Retention/Graduation rates" on the left.
The second chart on the right gives the percentage of students who graduate in four, five, and six years.
Now, calculate next year's true cost of attendance by adding up tuition, fees, room and board, books, travel, and related expenses.
Last, but not least, subtract out your free money (grants and scholarships).
Multiply this net cost by four (4) if the federal statistics indicate that most students at your school graduate in four years. If most students take longer, then multiply by five, or even six, depending on the school's stats.

This will give you a good idea how much the price tag of the school will be and how much you will need to save. Hint: Increase the total by about 10 percent to account for probable inflation.

So now you see how the cost of college isn't just tuition. There are more costs to consider and though its not always fun, start saving now. You will be much better off and thankful that you did.

More Books to Help You:

Cost of College: Can't afford the dream school?

Librarian — Thu, 12 Jun 2008 17:24:00 GMT

Dilemma: Your favorite school is offering much less aid than your safety schools...

You may find that the financial aid package you receive from your school of choice will not cover the cost of your education. Where do you go from here?

It's important to make sure you're really comparing apples with apples. Remember education is an investment and there are tangible differences if your dream school is Ivy League vs. a traditional four year college. There are few options available and if you heart is truly set on a particular school, it may be worth exhausting all options.

Review your FAFSA and Financial Aid PROFILE

Go over your family's financial information again to see if there is any cost that was not accounted for on your FAFSA or Financial Aid PROFILE, such as medical bills, funerals, support of a relative, etc. Also, collect any evidence of a reduction in your family's income since the FAFSA was filed, such as a job loss.

Ask your chosen school to take a harder look at your FAFSA. However, If you low-balled your income on the FAFSA or PROFILE, don't appeal. When your dream college takes a second, harder look at your application, they may actually decide to reduce your aid. Be prepared to present your arguments and evidence in whatever format the school requests.

Next, prepare your case as to why you legitimately cannot afford to pay what the college is asking. Draft a professional letter to the financial aid office of your top school. Support all your claims with facts and pre prepared to back these up. Plead your case that despite your financial shortcomings, you would be a valuable asset and a loyal alumnus to the school. You may add "how sad it would be if a few thousand dollars stood in the way of such a winning combination!

Make an appointment and make a personal visit to the school to present your case. At the very least, follow up your letter with a phone call. Try calling, e-mailing, writing, or, most gutsy of all, visit the school's financial aid office in person. You have nothing to loose.

If your college of choice still won't bend or you are unable to come up with the difference in cost, you may have to come to the realization that you simply can not afford to attend the school of your dreams.... at least right now.

You may have to spend a year working and saving. You may have to attend a local community college to take care your general education classes. You may just have to settle for one of your second or third choices but, where there is a will there is a way. If your heart is really set on attending a particular school, then don't let something a trivial as money get in your way of your dreams.

More Books to Help You:

Cost of college: Price check

Librarian — Thu, 12 Jun 2008 17:17:00 GMT

So do you know how much college will cost you?

Take a deep breath, the average cost for a 4 year private institution can range from $23,000 to $45,000 or more. Much of the price tag of higher education depends on the type of school you plan to attend, the location, the school itself, the degree you want to pursue and how much free money you are able to get your hands on.

Along with the tuition bill let's not forget to add room and board, meal plans, books, supplies, relocation costs, and miscellaneous living expenses

Still there? Need a paper bag? Keep breathing!

So how do you find out the cost of attendance?

Get ready to roll up your sleeves and do some homework. Researching how much a school will cost will pay off big in the end and there are a lot of resources at your disposal to help you make the best educated choice.

Did you know that Federal Law requires schools to make available to students their official total cost of attendance? It's true. Give any potential college a call and request this information. Some may have it on their website or you'll be sent paperwork explaining the breakdown of their cost of attendance. Don't forget to request this information if it is not provided to you on any campus visit.

Harness the power of the internet. There are several helpful and most importantly free resources online that can break down the price tag for your education. Try typing in "College Calculators" and you'll be given a list to choose from. Here are just a few to get you started:

College Cost Calculator

Cost of College Calculator

College Savings Calculator

If you still can't accurately determine the cost of attendance, you can make a pretty good "guesstimate" by adding tuition, fees, room, board, and $3,500 bucks or so.

After you have enough information you can do a little math. Subtract the total of any free money you may receive (grants and scholarships) from the cost of attendance. If you need additional help, ask the financial aid office for help calculating your out-of-pocket costs.

Now you should have a good idea of the price tag of your education. Remember it's important to do your research. Going to college may be your first big investment so be sure to spend the time window shopping before you make the big purchase.

More Books to Help You:

Start here for student financial aid

Librarian — Thu, 12 Jun 2008 17:07:00 GMT

You probably can't start planning for financing your college education early enough and no matter where you are in the process; it can be quite confusing.

Don't worry - you're not alone. There is a lot to learn about financial aid so don't feel overwhelmed. Take it one step at a time and you will get to the light at the end of the tunnel.

Below are the big pieces of the financial aid puzzle that will get you started off in the right direction,

FAFSA

It all starts with the FAFSA, Free Application for Federal Student Aid. The U.S. Federal government supplies some $46 billion annually in student aid, about 75 percent of all student aid. File your FAFSA early and follow through to make sure you get the financial aid you are eligible for.

The information you provide will be used to determine how much aid - and what types of aid - you'll be offered at each of the schools you're thinking about on your wish list.

Some types of financial aid - think grants and scholarships - are made available on a first-come, first-served basis, so it's critical that you submit your FAFSA as soon as possible after January 1. You won't be able to receive any amount of federal aid (including loans) until your FAFSA has been processed. (Enough said!)

If you're "chomping at the bit", and just can't wait, try the FAFSA4caster offered by the U.S. Department of Education. This free online tool will provide you and your family with an early estimate of eligibility for federal student aid.

Federal Aid

The Federal aid administered by colleges includes Perkins Loans, Direct Loans, College Work Study (CWS) and Supplemental Educational Opportunity Grants (FSEOGs)-the U.S. Department of Education gives aid to colleges, who decide which of their students need it most.

The Lifetime Learning tax credit provides a maximum $1,000 tax credit to help college juniors and seniors and graduate and professional degree students, as well as adults who want to go back to school. For detailed information on who is eligible for these and other tax benefits, it's best to refer to your Internal Revenue Service (IRS) forms and publications which are available at www.irs.gov.

Federal Loans

Federal Loans are available to both students and parents. Stafford Loans for students are either subsidized, where some of the accumulated interest is paid by the government, or unsubsidized, where the student pays all of the accumulated interest. PLUS and GradPLUS Loans are loans to parents and professional students for any costs that are not paid for by other aid.

Scholarships and Grants

Merit-based aid, usually scholarships or grants, is given to students who meet requirements not related to financial needs-like doing well in high school or displaying artistic or athletic talent. Contact your state's higher education agency or college financial aid offices to request information about these opportunities.

More Assistance

Organizations, foundations and other groups offer scholarships to academically promising students, minorities, women and disabled students. To learn more about these scholarships, speak with your school guidance counselor or go to the reference section of the public library.

Private Loans

Private loan products have become an attractive, and in many cases, a vital financing component as many parents and students find it difficult to bridge the financial gap between significant, and ever increasing, education costs and the caps associated with traditional funding sources such as federal loans, grants, and scholarships.

These alternative loans serve the needs of parents who may be faced with borrowing against the value of retirement funds, tapping personal savings, or leveraging the hard earned equity in their home. Be sure you exhaust all free money and federal loan options before considering private loans as an option to fund your education.

You can pay for college

Did you know every year, millions of students apply for and receive financial aid and almost half of all students who go to school receive some kind of financial assistance.

The bottom line: nobody who wants to go to college and is willing to work hard should be prevented by financial need.

A college education is vital for success in the modern economy-and we hope this site provides you with the resources necessary to estimate and prepare for the costs associated with attending college. By saving for college and taking advantage of financial aid from the U.S. Department of Education, colleges and states, and the competitive products from the partners in our cooperative, you can change college from a dream into a reality.

More Books to Help You:

High School Senior Calendar

Librarian — Wed, 11 Jun 2008 20:12:00 GMT

It's your Senior year! Time to get ready for college. Here is a monthly task list.

January

Gather you and your parents previous years tax records, including w-2 forms, bank statements, tax returns etc. This information will help you fill out the Free Application for Federal Student Aid (FAFSA). Complete and send financial aid and admission applications before the specified deadlines.
If you are a high school male you must register for the Selective Service when you turn 18. In order to submit your FAFSA you are required to do so.

February

Make copies of all your financial aid forms and keep them in a safe place.
Make arrangements to take the Advanced Placement exam.
Ask your counselor to complete mid-year grade reports for the colleges that require them.

March

Once you receive your Student Aid Report in the mail, find out if you need to make any changes or if all the information is accurate. The SAR will tell you your Expected Family Contribution. If you do not receive your SAR within 4 weeks of you submitting the FAFSA, call the Federal Student Aid Center at 319 337 5665
Schools will begin sending your admission decision letters and financial aid awards. If you haven't done so, make sure you visit the schools you have an interest on attending.

April

Compare Financial Aid award letters and evaluate which school meets your needs both financially and academically.
Make sure you know when your acceptance deadlines are schedule and notify schools your acceptance or rejection before the deadlines.

May

Take AP exams you signed up for.

Summer (June-August)

Have your counselor send your final school records to the college or university of your choice.
Attend your college orientation.
Register for college prep courses or classes that are required for your major.
In July, most schools send you room assignment information. Consider calling or emailing them to introduce yourself.

September

Obtain recommendation letters from your teachers, employers and community organizations. Provide them with a self addressed, stamped envelope for each school. Allow each person at least a month to write and send your recommendation letters.
If you need to retake the SAT or ACT, now is the time.

October

Send thank you letters to those people that wrote recommendation letters for you.
Attend college fairs in your area.

November

Have your school send your transcripts to the college of your choice.
Begin brainstorming what you will write for your application essays. Include your achievements, challenges and any facts about yourself that will have Admission Officers connect to you.

December

Submit your college applications.
Search scholarship and grant opportunities.
Remember, it is important that you submit your FAFSA as close to January 1st as possible. You may fill out the FAFSA online at www.fafsa.ed.gov.

What about the high school Junior year?

High School Junior Calendar

Librarian — Wed, 11 Jun 2008 20:10:00 GMT

It is important to start planning for college in your junior year of high school. Here is a monthly task list.

January

Make a list of colleges you are interested in attending and plan to visit each one. You may call the Admissions Office of each school to schedule a tour.
Research expenses around the school area and calculate cost-of-living, tuition, books, room and board and miscellaneous expenses.
Begin searching for scholarships and grants. Make a list of scholarship deadlines and begin applying.

February

March

Visit colleges and universities you're interested in and ask questions. It is important to schedule visits when classes are in session so that you may talk to students, professors and guidance counselors. By visiting different campuses, you will make an informed decision.

April

Take the SAT or ACT

May

Attend college and career fairs in your area. Volunteer in your community and/or school. By volunteering you will demonstrate responsibility.

Summer (June-August)

Consider the career field you would like to study and find a related internship or job during your summer break. You may also get involved in extra curricular activities including sports. Participating in activities will make you a better candidate to colleges and universities.
Now that you have visited colleges and universities, consider all the costs that are associated with each school you are interested in attending. Find out the financial aid packages they offer and figure out the total cost of your attendance.
Don't be afraid to apply to the schools of your choice. Pick a variety of schools from schools that you are sure will accept you to schools that have higher standards. Request financial aid packages and admission applications for each school.

September

Sign up for the PSAT (Preliminary Scholastic Aptitude Test)
Speak to your counselor about taking challenging classes that will look good on your transcripts. Take Advanced Placement and/or college prep classes. Sometimes these classes can help you earn college credit

October

Take the PSAT (Scholastic Aptitude Test pre-test). This will help you understand areas in which you excel and areas you need to study.
Talk with your school counselor about the career path you are looking to take and figure out what colleges or universities offer curriculum that fits your needs. If you are not sure what you would like to study or what career path you would like to take, ask your counselor if they offer career aptitude test to see what fits your personality.

November

Make a list of schools you want to apply for. You should apply to at least 6-10 schools. Make sure you have admissions and financial aid application packages for each school.

December

Pick up a study guide for the SAT and ACT. Some study guides come with computer software, tips and practice tests.

What about the high school Senior year?