Often families mistake college affordability as “lowest price”, yet few consider the potential opportunity costs of an (un)realized genius. Thus, as high school seniors, transfer students, and their families weigh the awesome choice of one college acceptance over another (often while grieving an admissions denial), exercising patience and careful consideration is most prudent. While every person seeks the highest quality…
Tag: Financial aid
Seeking Scholarship Monies Can Be Trickier Than You Think
Many parents believe the greatest hurdle to applying for college scholarships is finding scholarships. Nope. Not by a longshot. For many seniors, the motivation to write one more autobiographical essay for a scholarship application is the largest impediment. For one, many are depleted of energy after writing a dozen (or more) college essays over the fall and winter. Plus, many…
Don’t Be Deterred by the Sticker Shock of Published College Tuition
The published college tuition is not likely the amount the average family will pay, as discounts in the form of merit scholarships increase every year. Thus, parents and students should not dismiss a college solely on price, but instead define value at a price they can afford. In the recent school year, 2021-22, the average incoming college student received merit…
2022-23 Student Loan Borrowers Beware: Rising Interest Rates
Each July, Federal student loan interest rates are reset for the upcoming school year using the formula of 10-Year Treasury Rate + 2.05%. Currently, as of today, May 12, 2022, with the recent .5% interest rate increase, the 10 year Treasury interest rate is 2.91%. Thus, although the Federal student loan interest rates are fixed for the life of the…
College Price Is, Contrary to Popular Opinion, Negotiable
Warren Buffet famously stated, “Price is what you pay, value is what you get.” Thus, in valuing the education at one college in comparison to the education at another college (or even a third campus), contrary to popular belief, families have the advantage. Families can negotiate college price, known in educational parlance as “Cost of Attendance” to reduce out-of-pocket costs,…
The Extra Bonus of the Student Loan Repayment Pause through May 1, 2022
Since March 2020 and extending through May 1, 2022, payments and interest on all Federal education loans, both student loans and Parent PLUS loans have been suspended as parts of various COVID-related economic relief policies. Borrowers have not been obligated to send payments, and for anyone already behind in their payments, no additional penalties have been assessed. Yet, borrowers who…
Guest Post: 3 Easy steps to building healthy money habits with your children!
Although intended for families with younger children, Jessica Weaver’s advice to help kids become financially literate applies to teenagers as well. Inherent to financial literacy is defining one’s values, which is an essential tool for teens and families reduce the risk of college malinvestment. The other day I was squeezing in some work while sitting with my daughter, Andie! She…
The Summer of the Long Goodbye
Soon-to-be first year college students all over the world are separating from their childhoods—saying, “Goodbye” to friends, leaving their childhood bedrooms, and now emerging as an adult, learning to partner with their parents. They’re establishing their first households outside their family homes, a complicated endeavor often involving new responsibilities. In readying to move, students are combing through a childhood’s worth…
The search for merit aid begins with the proper valuation of a college degree
“Do you help with scholarships?” is often one of the first questions that parents ask me. Fearful of the ever-increasing cost of college tuition, they (mis)perceive a college education as a large purchase, rather than an investment. To invest in a college education, both institution and family mutually consent to a partnership. Yet, in any partnership, both parties must first…
Coming Changes to the FAFSA
Over the next three years, the Federal Department of Education will phase in changes to the FAFSA, the Free Application for Federal Aid, which may increase out of pocket college costs for families, yet reduce the complexity of applying for need-based financial aid. The following are highlights of the changes, as well as recommendations for families to consider: NUMBER OF…