Spring of senior year is a critical time in the college admissions process, in some sense, more pivotal than the application period, for a strategic blunder can be costly: misallocating 17 years of preparation for higher education, malinvestment of tens of thousands of dollars in tuition, and economic malaise that could last a lifetime. Seniors and their families are selecting—carefully…
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…
As of First Quarter 2021, 3.8 million 20-24 year olds are not in school nor employed, 740,000 more young adults adrift than in First Quarter 2020. While wondering, “Where are they?”, more disturbing to consider is, “What are the long term consequences of a delayed entry into adulthood?” First, dismay may be transforming into disaffection. The current generation of 20-24…
Federal student loan interest rates, the cost of borrowing money to be paid at a fixed rate over the life of the loan, are set by adding 2.05% for undergraduate loans to the 10 Year Treasury Rate after the last May auction each school year. [For the upcoming 2021-22 school year, loan interest rates will be set after the May…
Many students, each year apply and believe they should be admitted to an elite college—defined statistically by yield, selection rate, and its inverse, rejection rate. So when reality dawns in the spring and applicants realize instead they are part of the 95% of those who will not be admitted to an elite college, they are disappointed, pride wounded. Hundreds of…
Now accepted to a variety of colleges, the complex work of building consensus toward a final choice begins. Families should seek to select the college with the most opportunities where a student to discover or gain confidence in an inherent aptitude. Thus, I strongly encourage families not to rush the college decision, so as to reduce the risk of malinvestment. …
The 1200% increase in college tuition over the last four decades, outpacing inflation by nearly 1000%, is Reason Number One parents often anxiously ask me about how their kid can apply for scholarships. As the conversation unfolds, many often also reveal having saved some for their children’s college expenses, though the amount is woefully inadequate, and are now looking for…
For many higher education institutions, like the University of California (UC), the fiscal losses are growing as the health emergency extends, precipitating the need for a tuition increase. As reported in a December 12 Los Angeles Times article: Systemwide, UC took a $2.7-billion financial hit between March and October — about 6.5% of its $41.6-billion operating budget, mainly from lost…
The difficulties for those in the younger generations to generate wealth are consequences of a structural shift in the U.S. economy in the last forty years, well before today’s late Boomer and Gen X parents entered the labor market as twenty-somethings. As highlighted in a recent Federal Reserve Bank research paper, “Market Power, Inequality, and Financial Instability”, Isabel Cairo &…
The costs of childcare and college have outpaced wage increases in the past 20 years. So, a growing percentage of a family’s budget is spent caring for children, including paying for educational opportunities, like extracurricular activities as well as college tuition, in hopes of propelling kids toward a sustainable economic prosperity. Yet, as more of the family income is spent…
