Worries about paying for rising college costs can be compounded by concerns over saving for retirement. As seen in the chart below, with average retirement savings of people aged 45-54, the general age range of parents with college-aged children, at $10,100, can explain parents’ concerns. The Baby Boomer group just ahead in age (55-64)…
Tag: Expected Family Contribution (EFC)
Is College Financial Aid Really Aid?
The difference between the value of college, indicated by price and intrinsic worth, and what a family feels they can afford to pay creates the need for financial aid. But, college bound buyer beware: NOT ALL FINANCIAL AID AWARDED BY THE UNIVERSITY IS ACTUALLY AID.
Student Loan Interest Rate Relief In Sight
The U.S. House of Representatives passed a bill to lower Federal student loan interest rates to 3.9% from 6.8% for the upcoming 2013-14 school year–following the U.S. Senate’s passage of the same bill last week. The rate reduction would mean a savings of $944.44 in interest over the life of the loan, for first year college…
Paying For College Tuition
Student loans, grants and scholarships are replacing parent income and savings in paying for college. Source: Wall Street Journal
College Tuition Set to Keep Rising with No Relief In Sight
Since 1980, college tuition has risen 945%, in comparison with inflation’s rise of 193% during that same period–meaning all purchases have increased in price, but college tuition has increased at a ratio of 9 to 1–based on information from the Bureau of Labor Statistics. The University of California (UC) and California State University (CSU) systems…
If You Need Your Appendix Removed, Go to Oklahoma
As seen in Zero Hedge: “What does an appendectomy cost?” College tuition isn’t the only cost that’s rising in the United States. Source: Goldman Sachs
What Trends in Public University Tuition Means for College Bound Seniors
Public universities and colleges are partially funded by student tuition and partially by state and local government revenues (i.e. taxes collected), alongside subsidies by the Federal government and private donations. Public funding is then allocated per full time student, as shown in the map below. Alaska contributes the most per student at $14,837, while the…
U.S. Congress Considering Student Loan Interest Rate Increase
Federal student loan interest rates on subsidized* (see below) loans are set to rise from 3.4% to 6.8% on July 1, 2013. (Note: the interest rate for unsubsidized Federal student loans, in which interest begins accruing from the date of the loan, is currently 6.8%.)
Will College Price Itself Out of Its Demand?
As the price of tuition continues rising, will students (and their families) choose to forgo a college education? The most recent college application cycle for Fall 2013 doesn’t seem to indicate that students are not choosing a college education. Applicant numbers are up around the country from a 10.7% increase for the University of California…
What’s The Value of a University of California Education?
Roughly 30 percent of every dollar we take in from tuition we reinvest back in financial aid. So the nominal tuition is $12,000 but the real tuition is probably about $8500. It’s like the sticker price on an automobile: 62 percent of our students don’t pay the sticker price, [which is] income adjusted. But it’s…
More Details About Federally Funded Student Loans
As interest rates for subsidized Stafford loans (i.e. interest is withheld throughout college) is poised to increase from 3.4% to 6.8% as of July 1, 2013, Congress is considering to postpone the increase, as happened in 2012. (BTW, unsubsidized Stafford loans, where interest begins accruing from the date promissory note is signed, is already 6.8%.)
What Does College Tuition Really Buy?
Harper’s Magazine reported in November 2012: 81% of Americans who viewed college as a good financial investment in 2008 dropped to 57% in August 2012. Now, there’s much room for interpretation of “good”–however, is the change in the average value of a college degree indicating a shift away from college, and if so, what experience…
College Degree: Gateway to Middle Class Prosperity or Financial Burden?
While many students and their families pursue a 4 year college degree for the imagined financial security and solid middle class living, the cost(s), both to pay for the degree and the long term effects of earning the degree, may be greater than the return. Generations have been raised to expect that their standard of…
Are Families “Shopping Around” For the Best College Deal?
The growing gap between the rate of inflation and increasing tuition, since 1985, may cause families to more carefully consider the worth of a college education, and “shop around” for the “right” campus.
College (Un)Affordability: Real, Perceived or A Little of Both?
We’ve been hearing questions from increasing numbers of families about paying for college, as we also posted earlier. Many of the families asking questions are professionals, college educated, with two incomes and making the same dollar figure of salary as past years, but find these same dollars aren’t stretching as far as in the past.…