We continue our series on college selection and financial aid, by discussing the clash between the demand–and even right to attend college–and the dawning reality that rising tuitions (at a rate greater than inflation), alongside average student debt increasing at an unsustainable rate, are beginning to price some deserving candidates out of the college marketplace.…
Tag: Debt
Something’s Gotta Give
Two recent charts say it all. The first shows the average growth in tuition versus income over the past 35 years. As you can see our growth in income (United States only) through 1986 kept pace with the growth in average tuition (plus fees, room and board). Since 1986 our growth in income has not…
Guest Post: The Saving for College Challenge, Part One – How Can I Save For College
About the authors: For over 25 years, Cynthia S. Meyers, CFP®, MBA, has assisted people with their Lifetime Financial Planning–helping to build and preserve wealth in every area of life. Jenny Hood, CFP® has been a paraplanner with Cynthia S. Meyers for five years and enjoys being a part of the financial planning process. They…
Financial Aid Myths: Fact & Fiction
Soccer field sidelines are filled with parents sharing their college expense stories and sometimes “nightmares” that can create misinformation circulating through the community. Depending on the listening parent’s effort to validate or debunk the information gleaned can determine how useful the shared experience will be in guiding their own children. Here’s a few common myths:
Interest: Another Cost of Borrowing Student Loans
The information above is from the Federal Student Aid website. What it means is described below: Interest accrues daily on any student loan. The interest is added to the principal on a quarterly basis, then the next quarter’s interest is calculated based on the new total principal. Students can make payments on the interest and…
California’s Prop 30 and Possible CSU Tuition Increase
If Proposition 30, a tax increase initiative on the November ballot, doesn’t pass, CSU students and their families could be faced with an additional 5% tuition increase mid-school year, on top of the 5% increase that was instituted for before the Fall 2012 school year started. Similarly, UC students and their families are facing a…
Guest Post: Budgeting for the College Years
By: Lisa Dalton, California parent of a senior at the University of Oregon, and sophomore at Washington State University _________________________ With two kids in college, both at out of state universities, friends and neighbors ask all the time, “How do you do it?” The answer is planning, financial education, and sometimes hard choices.
Student Debt = Future Income Spent Today
Know the terms (i.e. repayment, interest rates) and possible consequences of taking student loans for college–essentially bringing future income into the present. (FYI: colleges are not obligated to disclose the terms of the loan BEFORE accepting them as part of a student aid package. Students MUST ASK. Also, students are not forced to accept student…
Working With Financial Aid
Financial aid from the university doesn’t work like mom & dad’s checkbook. Although mom & dad may share their concerns, generally they’ll continue sending money when kids ask or need. However, financial aid offices may not be so lenient.
Changes to Subsidized Direct Student Loans for Fall 2012
For Fall 2012 and future Fall 2013 Subsidized Direct Loan Borrowers: The Federal Government will no longer withhold interest during the six-month grace period before loans go into repayment. According to Federal Student Aid, “the interest will be capitalized (added to the principal amount of your loan) when the grace period ends.” Borrowers do not need…
How Are Middle & Upper Income Families Affording College?
For families with $94,000 to $205,000 in yearly income, the percentage of debt is increasing. The Wall Street Journal reports, 25.6% of these middle-upper income families incurred student-loan debt in 2010, up from 19.5% in 2007. With the costs of college increasing and use of debt is increasing, will families begin making college decisions with…
Thinking Outside the Box to Pay for College
What are you willing to risk to pay for college? Would you seriously consider these alternative methods of paying for college? If it sounds too good to be true, definitely take a second (or a third) look. From the Wall Street Journal, 7/31/2012
Who’s Responsible for College Bills?
Why do parents expect to pay the entire bill for college? Often, parents tell us that they want their kids to apply for scholarships and are frustrated, if that doesn’t happen. Yet, they’ll move forward with paying for college. Is it a parents’ responsibility to ensure the bills are paid for college, without at least…
UC Tuition and Fees: Up, Up and Away
Anyone involved in the University of California over the past thirty years knows one thing for sure: The tuition and fees for the UC has gone in one direction–UP.
“No Student Loans”: Is that possible?
Don’t want to borrow for college expenses? Some universities across the U.S. are implementing financial aid policies, where no (or limited amounts) of loans will be offered in the financial aid award letter. Knowing the financial aid policy of colleges–before applying–can help a family have dollar amounts to determine the value of a college, given…