Happy June!

Summer is here and seniors are now graduating. But before you let your student start their summer vacation, sit them down and plan out their upcoming college budget. In this month’s Senior Scoop I give you a few easy steps to follow to make the college budget a breeze.

My next webinar is scheduled for Saturday, June 15th at 9am. I’ll provide parents with information on the steps they can take right now to greatly lower the cost of college even if they have little time to prepare. Reserve your webinar seat today!

June is a great time to encourage your incoming seniors to solidify their thinking about how far away they want to be from home, what ultimate career they’d like, how they want to spend time outside the classroom, etc. Plan to have a top 20 college list identified before summer vacation starts.

All the best,
Beatrice Schultz, CFP®
Westface College Planning 
College Funding Specialist 

College Smart Radio: Tackling the Runaway Costs of College

Tune in to 1220am KDOW - the Wall Street Business Network from 3:00pm-3:30pm every Saturday for my radio show, College Smart Radio - Tackling the Runaway Costs of College. The show can be streamed live atwww.KDOW.biz, too!

Curious what College Smart Radio covers? Tune in this Saturday when I discuss, “Why Hire an Independent College Counselor?” with my guest Nancy Wigley an Independent College Counselor and owner of College Search Strategies.

Listen to our College Smart Radio archives, where we discussed, “Understanding and Managing Student Debt Before It’s Too Late,” with my guest Bill Fay of Debt.org. It’s all important information you won’t want to miss out on. Thanks for listening!

Featured Find: College Retreat on Tuition

Private U.S. colleges, worried they could be pricing themselves out of the market after years of relentless tuition increases, are offering record financial assistance to keep classrooms full.

The average “tuition discount rate” – the reduction off list price afforded by grants and scholarships given by these schools – hit an all-time high of 45% last fall for incoming freshmen, according to a survey being released Monday by the National Association of College and University Business Officers.

“It’s a buyer’s market” for all but the most select private colleges and flagship public universities, said Jim Scannell, president of Scannell & Kurz, a consulting firm in Pittsford, N.Y., that works with colleges on pricing and financial-aid strategies.

Continue reading here.

Photo Credit: CarbonNYC

Upcoming “Tackling The Runaway Costs of College” Webinar & Workshops

Seating may be limited – Register to ensure your spot!

Most parents are not financially prepared to enter the most expensive time period of their lives, covering their child’s college education. Our 1-hour workshops provide steps you can take right now to assure you understand the cost of attendance and how you can afford college without jeopardizing your retirement.

Our next upcoming webinar and workshop are:

• Tackling the Runaway Costs of College – Webinar: Saturday, June 15, 2013 from 9:00-10:00a.m. online.

Parents and students are welcome! Please visit our workshops page to learn more or click here to reserve your webinar seat today!

Senior Scoop: College Budget: Create Your Worksheet Now

As a new college student, managing money can be one of the keys to college financial success. Typically, students receive money in large chunks, either from loans, education savings plans or summer jobs. If a student is managing their money for the first time, it can be tempting to spend big early on. However, students need to make this money last for several months so that they won’t struggle to pay bills later on. Here are a few easy steps any college student can use to stay on track and avoid the end of semester crunch.

Make a Budget Before Starting College

For many seniors, graduation signals the beginning of summer and their freedom. But before your senior goes off and starts their vacation, sit them down and help them create their upcoming college budget. Most students will groan and moan, but making them create a financial plan will save them from running out of money before their next source of income comes in.

Continue reading here.

Photo Credit: Images_of_Money

Advice & Insight

Connect With Us For The Latest News

Are you following Westface College Planning online? Here are just a few things you missed:

What should you do if you are still hoping to get off that wait-list for your #1 college? Here are some tips for what might work and what might not! Check them out on our Facebook page.

At a time when many college students and graduates struggle to repay their student loans, a new survey suggests that the root of their struggles begins long before they set foot on campus. Find out the details on my LinkedIn page.

Follow us on Facebook or connect with me on LinkedIn so you don’t miss any additional updates!

About Westface College Planning

At Westface College Planning, we are committed to helping parents through the process of making the right financial choices for their college bound students.

If you are a typical parent with college bound students, you’re probably overwhelmed by all the research necessary to help your sons and daughters make the right choices and prevent overpaying for their education.

You are not alone!

Our information packed one-hour workshops will help you:

• · Understand the true cost of college and how to afford it.
• · Learn the specific steps to take immediately to maximize financial aid.
• · Receive valuable information on scholarships and gift aid qualification.
• · Gain awareness on how to accurately compare the true cost of schools, public vs. private.
• · Develop best practices for school selection, and more!

More information at westfacecollegeplanning.com. 

The post June Newsletter 2013: College Budget: Create Your Worksheet Now & More appeared first on Westface College Planning.

Grandparents, who started 529 plans thinking it will help their grandkids pay their tuition, may find it can actually penalize them.

529 plan options have been a common savings option for many students, parents and grandparents as the costs of higher education have soared. A 529 plan is a tax-advantage savings plan designed to encourage savings for future college costs.

A 529 account owned by the parent or a dependent student, either directly or via the Uniform Transfers to Minors Act, is reported on the FAFSA application as a parent asset which does impact aid eligibility. It does not get reported as a student asset, which would have a greater impact on aid eligibility. Also, qualified distributions from a 529 account do not get added back to income in the aid formula unlike IRAs. The rules are different for grandparent owned 529’s.

However, sometimes it pays to undo a 529 plan. That may sound surprising to many that have set up 529 accounts but the fact is not all 529 accounts are treated equally. For example, two different students with the same basic profile could get different aid offers based on who actually owns the accounts. A 529 plan owned by a third party, such as a grandparent, is treated differently. The asset value is not reported on the FAFSA, which is favorable, but any use of the account for the benefit of the student must be reported on the following year’s FAFSA and added back as income.

Grandparents, who started 529 plans for their grandkids thinking it will help them pay their tuition, may find it can actually penalize their grandchild for that money if that grandchild qualifies for any financial aid. The issue is that the federal financial aid formula treats assets and income differently. It also treats the student’s money different from that of other relatives. Since any financial-aid income above a certain dollar amount is “assessed” at 50% in the aid formula, the impact of using a grandparent-owned 529 plan to pay for college can be significant.

For example, if a 529 plan of $20,000 is owned by the grandparents and the student withdraws $5,000 from it one year, that withdrawal could increase the amount the family is expected to pay for college and in turn reduce that aid for the next year.

However, if the grandparent anticipates the financial-aid dilemma with a 529 account they have several options.

• The grandparent should consider holding off on any distributions until after the student has filed their final FAFSA going into their senior year of college. This way, the 529 plan money will be used to pay the senior year of college, will have no impact on future federal aid and will qualify for tax-free treatment if the student incurs qualified expenses that match up with the distributions.
• One option may be to simply liquidate the account on a non-qualified basis, pay the associated tax and the 10% penalty for any funds above the amount needed to pay for the senior year
• Another option is for the grandparent to look into transferring ownership of the 529 account to the parent, if the financial-aid consequences work out better. (Be sure to check your 529 plan options before you buy. Some 529 plans do not permit owner changes.)

Deciding what to do with a grandparent owned 529 plan can be a difficult decision and the decision will be different for every family. Make sure that you understand your students’ Expected Family Contribution (EFC), and expected financial aid eligibility, so you know what, if any, impact the grandparent 529 will have on your college funding plan so you’ll be able to make the right choice for your family.

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: jonny goldstein

The post 529 Plan Options: When To Undo Them appeared first on Westface College Planning.

In many cases, colleges and universities in Canada cost less than the tuition at private colleges or the out-of-state charges at public universities in the United State.

Many American high school graduates looking to attend a top-rated school at lower cost are picking up a passport and heading north for their college years. According to the Canadian embassy in Washington, D.C., an estimated 10,000 Americans are pursuing degrees in Canada; that number is up from 3,500 ten years ago.

In many cases, even with extra fees for international students, colleges and universities in Canada cost less than the tuition at private colleges or the out-of-state charges at public universities in the United State. Annual tuition costs for international students in Canada range from about $14,000 to $26,000 depending on the university. According to the College Board, the average cost of tuition and fees in the United States for the 2012-2013 school year was $29,056 at private colleges and $21,706 for out-of-state residents attending public universities. That’s a significant difference.

Canadian officials see Americans pursuing degrees in Canada as a way to build a strong connection between the two countries and enhance the international profile of Canadian universities.

My alma mater, Queen’s University, a world class university, in Kingston, Ontario, attracts a community of outstanding student scholars from across the globe, with tuition, fees, room and board costing ~$40,000, which is $15,000 to $25,000 less than many equivalent US private colleges.

An additional lure for American students who decide to attend Canadian universities is they can work in Canada for three years after graduation.

If you have a soon-to-be college student considering Canada as an option for higher education, here are a few things to keep in mind.

• Find the Right Canadian University for You – While there are some differences between the United States and Canada, students and parents should consider schools based on the same criteria they’d use when searching for a school in the States. For example, does your student want to live in a big city or small town. Also, parents and students should visit the college and surrounding areas to make sure it’s the right fit for them.

•  Research Application requirements – Canadian universities might also appeal to students who aren’t looking forward to submitting an essay with their college application. Many top Canadian universities don’t require documents like application essays and letters of recommendations. Instead they weigh class grades and test scores to decide who gets accepted.
•  Apply for Financial Aid – Some financial aid from the United States government can go towards the costs of Canadian universities. United States government grants are not awarded towards the cost of a Canadian University, but Direct Student Loans and Parent PLUS loans are. Like most schools, Canadian institutions offer merit scholarships and aid packages as well.

Although attending college in Canada, may seem foreign to you, you should feel assured that a bachelor’s degree from a Canadian university meets the same global standard as US colleges. Undergraduate students that complete in Canada have the same access to graduate programs and jobs around the world.

It is important for students to weigh all their options before they decide to go up north or stay in the States for college. Remember to do your research before making a final decision.

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: alexindigo

The post Canadian Universities: Affordable Degrees for Americans appeared first on Westface College Planning.

Students need to make their money last for several months so that they won’t struggle to pay bills later on.

As a new college student, managing money can be one of the keys to a college financial success. Typically, students receive money in large chunks, either from loans, education savings plans or summer jobs. If a student is managing their money for the first time, it can be tempting to spend big early on. However, students need to make this money last for several months so that they won’t struggle to pay bills later on. Here are a few easy steps any college student can use to stay on track and avoid that end-of-semester crunch.

Make a Budget Before Starting College

For many seniors, graduation signals the beginning of summer and their freedom. But before your senior goes off and starts their vacation, sit them down and help them create their upcoming college budget. Most students will groan and moan, but making them create a financial plan will save them from running out of money before their next source of income comes in.

Where To Start

Start by figuring out what your student’s income is, such as student loans, paychecks or help from Mom & Dad. That’s the student’s income. Now make a list of all fixed costs such as tuition, books, phone, rent and utilities. Also write down when they are all due. Next, estimate your regular discretionary expenses like food and laundry.

Once your student has figured out their essentials, have them consider the money they have left over and make a budget for that as well. Whether it is $30 or $100, determine how much your student will have for fun like shopping or a road trip.

Avoid Using Credit Cards

Credit cards may seem like easy money to many college students, but make sure to explain to them that easy money can lead to easy debt quickly. The best strategy is to avoid using credit cards altogether, but if your student feels they need one in case of a serious emergency, consider getting a credit card with a low credit limit such as $300. This way the limit is low and easy to pay off.

Stick To It!

Once you have it all planned out, stick to it! Have your student write down their expenses for the first few weeks and compare it to the budget they’ve prepared. Did they have to buy new textbooks instead of used? Are they eating out more than planned? If so, adjust the budget accordingly.

Tip – Most students have a smart phone. Have them download an app such as Pennies that helps them keep track of their budget. This way, the moment they open the app they know how much of their budget they have left.

Finally, click here for an example of a budget worksheet to use in your college planning efforts.

What tips do you think students should follow to create an accurate college budget?

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: Images_of_Money

The post College Budget: Create Your Worksheet Now appeared first on Westface College Planning.

The Alumni Factor equally weights all of its attributes, providing a more objective look at each college or university.

In September of last year, graduates of some of the nation’s most prestigious colleges and universities, who were accustomed to seeing their schools place high in popular college ranking publications, got an unexpected surprise, The Alumni Factor. This new college ranking platform shakes up the traditional college ranking approach using objective alumni data in rating schools based on how successful their graduates are in their careers and lives. There are many schools on the Alumni Factor’s list of America’s top colleges that have rarely achieved the coveted top 10 positions in established college rankings.

Other college ranking publications are based on such subjective factors as reputation and peer assessment. The Alumni Factor equally weights all of its attributes, providing a more objective look at each college or university. Its findings are based on surveys and interviews of more than 42,000 alumni from over 450 schools during the past four years. Researchers measured 15 different factors, including income, net worth, job opportunities, intellectual development and overall happiness. The Alumni Factor is also independent. It is not affiliated with any news organization, publishing house or any other organization in the secondary education arena.

According to the Alumni Factor website, they have three primary goals:

1. To give prospective students and their parents a more empowering performance-based method of measuring and choosing colleges.
2. To give colleges and universities an objective assessment of their performance, based on the actual results of and input from their own alumni that can be compared to other relevant colleges and universities. This is often difficult for an individual school to achieve on its own, but is essential to its improvement.
3. To give college alumni themselves a better perspective on the role their college played in their personal development and in the development of others, and how that compares to other colleges. This is interesting and entertaining for alumni, but it also helps improve colleges, since alumni are often active and influential voices as colleges set their improvement agendas.

On The Alumni Factor website, members have the option of creating personalized rankings based on weighting of its key attributes. For example, the “Match Me to U” feature allows students to weight attributes, which are critical to them, then it generates a personalized list of top college fits. The top 177 college and universities are listed on their website however, if you want to see the in-depth profiles you will have to purchase The Alumni Factor’s 512-page full color book for $29.95. The company also offers a monthly fee of $5.95 for unlimited access to its website, which includes information on over 1,300 colleges and universities.

The Alumni Factor ranking platform truly provides students and parents with a performance-based method of assessing and selecting the best college for each student’s unique needs.

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: adrielhampton

The post The Alumni Factor appeared first on Westface College Planning.

There are a ton of wacky, unusual and just plain weird scholarships out there.

Paying for college can be stressful and overwhelming, but that doesn’t mean it can’t be fun. Did you know that by fully embracing your inner weird factor, you could land yourself some serious scholarship money to help pay your college tuition? It’s true. There are a ton of wacky, unusual and just plain weird scholarships out there. Here are 10 you may want to take a look at.

1. Sophie Major Memorial Duck Calling Contest – Can you sound like a duck or even call one over? If you love duck season you may be eligible for $2,000 in scholarships. So get your favorite duck call and get prepared to win some money.
2. Tall Clubs International Scholarship – Are you a woman 5’10” or taller? Are you a man 6’2” or taller? If so you may be in luck. The Tall Clubs International offer student scholarships of up to $1,000 each to tall students who are under 21 years of age and attending their first year of college in the following Fall. To qualify, you need to write an essay entitled, “What being tall means to me.”
3. Eileen J. Garrett Scholarship – Have you always been enticed by the fringe, ghosts, telepathy and psychic powers? Students studying parapsychology at an accredited college or university are eligible for the Eileen J. Garrett Scholarship. Applicants must submit writings on their experience with the subject along with their application. One recipient will be selected for the $3,000 scholarship.
4. Duck Brand Duct Tape Stuck on Prom Contest – Have you ever wanted to create a prom outfit out of duct tape? Well if you have, this is your chance to make it and win $5,000 in scholarship money.
5. American Welding Society Scholarships – Are you a talented welder or have an interest in being one? If so, you may be eligible for welding scholarships that could help pay for education in soldering, brazing, joining and thermal spraying.
6. KLI Academic Award: The Kor Memorial Scholarship – If you love Star Trek and are familiar with Klingon this could be the scholarship for you. The purpose of the Kor Memorial Scholarship is to recognize and encourage scholarship in fields of language study.
7. American Association of Candy Technologists Scholarship – Candy technology is no joke. The winner of this award receives $5,000 and only college sophomores, juniors and seniors who have demonstrated interest in confectionery technology, are in a food science, chemical science, biological science or related area are considered.
8. American Fire Sprinkler Association Scholarship – Want to light a fire under your college tuition bill? Check out the American Fire Sprinkler Association Scholarship; $2,000 is awarded to five high school graduates. After reading about fire sprinklers, applicants are required to answer a ten-question, open-book quiz on their benefits.
9. National Marbles Tournament Scholarship – This scholarship sets out to test your marble skills. The National Marbles Tournament Scholarship requires those with mad marble skills to compete against other marble shooters in a four-day tournament in Wildwood, New Jersey. There are many winners, picking up scholarships that range anywhere from $1,000 – $2,000.
10. Collegiate Inventors Competition – If you’ve been tinkering and taking innovation to the next level from a very young age, this may be the scholarship for you. The Collegiate Inventors Competition seeks to recognize those students who are thinking outside the box. Each year, 12 graduate and undergraduate finalists receive an all-expense-paid trip to Washington D.C. to reveal their invention to a panel of judges. The top graduate winner receives a scholarship worth $15,000, while the top undergraduate inventor receives $10,000.

For more weird college scholarships, check out College Express.

What’s the weirdest scholarship you’ve ever heard of? Let us know!

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: stevendepolo

The post College: 10 Weird Scholarships appeared first on Westface College Planning.

Happy May!

Congratulations to all the high school seniors who have just made their final college decision! Students and parents should now be preparing a realistic college funding budget for the school year to come. Remember, preparing details now will save you time and stress when summer is over and your first college year begins. In this month’s Senior Scoop we go over 6 steps students should take to determine how much to borrow for college.

My next webinar is scheduled for Wednesday, May 15th at 7pm. I’ll provide parents with information on how to integrate a financial and academic approach to college selection and funding decisions. Reserve your webinar seat today.

May is also a great time for families with high school juniors to start creating a college funding plan. It may seem like college is a way off but starting now will put you and your student in a better planning position later on.

All the best,
Beatrice Schultz, CFP®
Westface College Planning 
College Funding Specialist 

College Smart Radio: Tackling the Runaway Costs of College

Tune in to 1220am KDOW - the Wall Street Business Network from 3:00pm-3:30pm every Saturday for my radio show, College Smart Radio - Tackling the Runaway Costs of College. The show can be streamed live at www.KDOW.biz, too!

Curious what College Smart Radio covers? Tune in this Saturday when I discuss, “College Coaching for the Creative Kid,” with my guest Harriet Katz, owner of Creative Kid College Coach.

Listen to our College Smart Radio archives, where we discussed, “The Private Student Loan Marketplace,” with my guest Lloyd Leanse, a Managing Director of Prager & Co. It’s all important information you won’t want to miss out on. Thanks for listening!

Featured Find: Americans Head North for Affordable College Degrees 

Eric Andreasen is a college student from Portland, Maine, who has his sights set on a career working for a lawmaker in the nation’s capital.

But even though the political science major plans to go straight to Capitol Hill when he graduates this spring, he will have a degree from a Canadian college, McGill University in Montreal.

Back when Andreasen, 23, was deciding where to go to college, he applied to a dozen U.S. schools. When it came time to choose, he narrowed it down to either George Washington in D.C. or McGill just north of the boarder.

Continue reading here.

Photo Credit: LWY

Upcoming “Tackling The Runaway Costs of College” Webinar

Seating may be limited – Register to ensure your spot!

Most parents are not financially prepared to enter the most expensive time period of their lives, covering their child’s college education. Our 1-hour workshops provide steps you can take right now to assure you understand the cost of attendance and how you can afford college without jeopardizing your retirement.

Our next upcoming webinar is:

• Tackling the Runaway Costs of College – Webinar:Wednesday, May 15, 2013 from 7:00-8:00p.m. online.

Parents and students are welcome! Please visit our workshops page to learn more or click here to reserve your webinar seat today!

Senior Scoop: 6 Steps to Determine How Much to Borrow for College 

Student loans are a popular way for students to cover some of the costs of college. But is borrowing for an education a good idea?

“Taking out a loan to pay for your education is an investment in yourself and your future,” says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial. “At the highest level, it’s a very positive use of debt. But like any debt, you do want to make sure you are not taking out an excessive amount, and that you will have the ability to repay it.

There’s no one right number for all students to borrow, de Baca notes, but following these steps can help you arrive at a manageable amount.

Read them here.

Advice & Insight: Connect With Us For The Latest News

Are you following Westface College Planning online? Here are just a few things you missed:

Are private higher education and financial unsustainability on a collision course with the current college high tuition, high discount model? Find out on our Facebook page.

Super Seniors have become a growing problem nationwide.  Check out my LinkedIn page and find out why colleges are putting their foot down on students who take more than 4-years to graduate .

Follow us on Facebook or connect with me on LinkedIn so you don’t miss any additional updates!

About Westface College Planning

At Westface College Planning, we are committed to helping parents through the process of making the right financial choices for their college bound students.

If you are a typical parent with college bound students, you’re probably overwhelmed by all the research necessary to help your sons and daughters make the right choices and prevent overpaying for their education.

You are not alone!

Our information packed one-hour workshops will help you:

• Understand the true cost of college and how to afford it.
• Learn the specific steps to take immediately to maximize financial aid.
• Receive valuable information on scholarships and gift aid qualification.
• Gain awareness on how to accurately compare the true cost of schools, public vs. private.
• Develop best practices for school selection, and more!

More information at westfacecollegeplanning.com. 

The post May Newsletter 2013: 6 Steps to Determine How Much to Borrow for College appeared first on Westface College Planning.

Experts agree that schools and colleges often wait much too late to start teaching kids about the realities of the financial commitments they’re making.

College is a time of freedom for many students, but it can spell trouble if that freedom applies to personal finances too. Students need to understand basic money management skills such as living within a budget and handling credit and debt. According to the first annual High School Borrowing Survey conducted by the Credit Union National Association (CUNA), nearly 50% of high school seniors in the U.S. can’t even guess how much money they will need to pay for college. What’s more, “even greater numbers appear unable to understand the basic terms of a student loan,” the survey concludes.

These troubling findings not only suggest students have a lack of awareness of college costs, but they also lack basic financial knowledge and money management skills. While most people recognize the importance of teaching personal finance, only four states require a minimum of one semester of financial literacy education, and only 20 states require that the topic be taught within another subject area in order for students to earn a high school diploma. Experts agree that schools and colleges often wait much too late to start teaching kids about the realities of the financial commitments they’re making.

Senator Kay Hagan aims to change that. The former banker and current chair of the Subcommittee on Children and Families recently reintroduced the Financial Literacy for Students Act. Under current federal law, individual school districts and states are left to create and implement money management education. The Financial Literacy for Student Act would create incentive grants for states that agree to provide financial literacy education in Title I public elementary and secondary schools. In addition, the bill encourages states to provide professional development for teachers so they can teach money management. In a subcommittee hearing on financial literacy in April, both Republican and Democratic senators expressed support for financial literacy education.

“Financial education isn’t rocket science. We just haven’t had money management in the past,” said Sen. Hagan.

Here are a few tips to help your student be more financially responsible:

1. Teach Your Student About Credit Cards – Many college students don’t understand that using their credit cards for Starbucks every morning will affect them for the rest of their life. Give your student the facts. Paying only the minimum amount due on a card with a balance of $4,000 and an APR of 12% will take 109 months. Put it into perspective for your student; ask them if those luxuries are worth nine years of being in debt.
2. Encourage Your Student to Live Within Their Means – While credit cards can be handy in an emergency, every person must learn to live within their means. This means no $500 shopping sprees, even if it’s for Christmas vacation or Spring Break. Living without a daily espresso now means they will be financially secure later in life.
3. Teach Your Student to Only Borrow What They Need – Many college students graduate with a heap of student loan debt. While student loans can be a good way to pay for college, it can be a tempting way to use a little extra cash for things like partying and eating out. If your student is a high school graduate, teach them to only borrow as much student loan money that they absolutely need. Acceptable needs include tuition, books, supplies and housing. If your student sticks to student loans for the real school necessities, they will still have debt, but it will be less than if they borrowed more for the keg party or road trip.

What other tips do you have for students to help them be more financially responsible?

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: jollyUK

The post Financial Literacy: College Students Need to Learn It appeared first on Westface College Planning.

Like all investments, college is a bet not a guarantee.

Thanks to rising tuition costs and a tough job market, in 2011 college seniors graduated with an average of nearly $27,000 in student loan debt.  According to the College Board, going to college costs between three and four times as much as it did 20 years ago and the fees continue to rise. While college-educated people do stand a better chance of landing a job than those who don’t go to college, the time it takes to pay back the money laid out for a degree is growing, causing many to ask the question, “Is a College Degree Worth It?”

The U.S. Census Bureau data says yes. According to the statistics, college grads in 2011 made $42,822 annually, while those with just a high school GED made $23,528. That’s an 82% jump for four years of what many call the “best years” of their life. Money isn’t the only issue, though. With successful college-dropouts like Mark Zuckerberg, Bill Gates and Steve Jobs, many young people wonder if going to college is the right decision for them. It’s also becoming harder and harder to deny the significance of an undergraduate degree as companies now require a degree for jobs such as a file clerk that didn’t require one a decade ago.

While there are many arguments for and against going to college, one University of Arkansas graduate is attempting to answer the question. Jared Moore built a free website tool called College Risk Report to help students assess the financial risk they face for a prospective college and career path versus alternative career paths such as a 2-year degree. Moore launched the website as a side project when he realized that people he knew simply did not know what they were getting into when they signed up for college and student debt. All of Moore’s data has been obtained off public sources, but as the website grows, he says he plans to buy more data to adjust for certain nuances.

Here’s how it works. The website guides a student through a three-step process to generate a free personalized report about the financial merits of a desired college career path and compares the path to a two-year degree path and a high-school-only path. By answering 3 simple questions, the report will be produced and provided to the student without any personal information.

Though this information can be very helpful, Moore warns that the analysis on the website may leave out certain important factors that a student may also want to consider when deciding if college is the right choice for them. This includes the intangible perks of personal connections that can be made by attending a college (especially brand-name colleges), mentorships and the development of social and networking skills that you may need later on in life.

Like all investments, college is a bet not a guarantee. Depending on who you are, what you want, where you choose to go and what choices you make while there, it may pay off or it may not. With tools like the College Risk Report website, students have the opportunity to look at what the financial investment could mean for their future.

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: Tax Credits

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Super seniors have become a growing problem nationwide.

The goal of college-bound students is to identify their major, take their classes and graduate in four years. Sounds simple enough, right? Well, that four-year plan is becoming harder and harder to achieve with some taking five or more years to graduate. These students are being called “super seniors,” students who are in their fifth year or later and have more than the usual number of credits required to graduate, but for whatever reason haven’t achieved a diploma or bachelor’s degree.

According to the National Center for Education Statistics, 42% of first-time bachelor’s degree seeking students do not graduate before the four-year mark. Super seniors have become a growing problem nationwide and some college administrators are saying enough is enough by taking action against super seniors.

Last year, administrators at the nation’s largest four-year college, California State University, said the 23-campus system could no longer afford to let students linger so long without collecting their diplomas. Deep budget cuts over the past four years have forced CSU to sharply raise tuition, cut academic programs and turn away tens of thousands of qualified students. They planned to combat the super senior problem by charging them hefty fees. Those fees could have triple the costs for students who have completed five years of full-time undergraduate work.

The proposed “graduation incentive fee” was designed to encourage students to finish their degrees faster, making room for new undergrads and elevating the super senior problem. However, CSU trustees shelved the proposal last November indicating they needed more time to gather input on the potential affects the fee increase would have on students.

What about other options? Enter the four-year guarantee, a written, contractual agreement that guarantees a student will graduate in four years, provided the student maintains acceptable academic progress by taking the suggested course load and passing all courses. And if not, the college foots the bill beyond the fourth year.

Transylvania University is a private liberal arts college in Lexington, KY, that is offering this incentive to new students. They are requiring students to meet four criteria as part of the pledge: remain enrolled for eight consecutive terms, take a full course load each term, meet the university’s required academic progress goals and declare a major by the end of their sophomore year.

For Transylvania University, the four-year guarantee has produced positive results among prospective students. According to Transylvania’s vice president of enrollment, Brad Goan, in a survey done by the school last year, 60% of students said the university’s pledge was a factor in their final decision.

Do you think a four-year guarantee like the one at Transylvania University is the type of system California needs to curb super seniors? How do you think California should deal with super seniors? Let us know your thoughts!

Westface College Planning can help you navigate the college saving and funding process from start to finish. To learn how we can help you call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.

Photo Credit: Monica’s Dad

The post Super Senior appeared first on Westface College Planning.