Skip Navigation Links

How Expensive is "Too Expensive" for a College Education?

Students Willing to Spend More for Academics, Prestige

November 4, 2010

How Expensive is "Too Expensive" for a College Education?

by Alexis Mattera

The true cost of a college education is seldom the number that’s printed in school brochures and on various college comparison lists. When you figure in federal aid, scholarships, grants, room and board, books and supplies, that price fluctuates. One thing remains constant - higher education doesn’t come cheap - but a new poll finds students are willing to stretch their finances for several key factors.

In April, right up until enrollment deadlines, students were still considering “too expensive” schools and were willing to stretch to pay for their education, poll conductors the College Board and the Art & Science Group report. While it would be more financially sound to select the school with the lower tuition and better financial aid package, “too expensive” colleges remained in play if they had strong academics in students’ fields of interest, were places students felt comfortable, had prestigious academic reputations or had excellent records of graduate school acceptance or good job placement after students graduated. Here’s the breakdown:

  • Twenty-six percent of students surveyed said their family would have to stretch a lot, but “I think we’ll make it.”
  • Twenty-two percent chose “I’m not sure how my family will afford to send me to college, but I believe we’ll work something out when the time comes.”
  • Eleven percent said, “I don’t think my family can afford to send me to college, but we are going to try.” Nearly 40 percent of students surveyed did not have a sense of long-term costs, citing “no idea” what their likely monthly payment on student loans would be after graduation.

If you think back to every award show you’ve ever seen, you’ll recall those who do not win always say it is an honor just to be nominated. The same can be said for college admissions: It’s an amazing achievement to be accepted to a prestigious college but is attending worth it if the cost of attendance is going to drive you and your family into debt?


Comments

Ohio Program Rewards Higher GPA’s with Cash

by Suada Kolovic

Imagine a world where cold, hard cash was the incentive for doing well in school. A new study, that examined three Ohio community colleges, attempted to explore if paying students is the answer for an authentic effort in their education. The report, "Rewarding Progress, Reducing Debt: Early Results From Ohio's Performance-Based Scholarship Demonstration for Low-Income Parents," showed that using financial aid strategically – providing low-income parents scholarships based on their performance – was “encouraging.” The program offered the low-income parents up to $1,800 for one academic year if they earned at least a “C” in 12 or more credits, or $900 for the same grade in six to 11 credits.

According to Lashawn K. Richburg-Hayes, deputy director of young adults and postsecondary education with MDRC, a nonprofit research organization based in New York, “the goal is to understand if performance-based scholarships can work for different populations, in different amounts." The result – of the students assigned to the scholarship group, 33 percent earned the full-time award and 41 percent received the part-time award in the first term. Thirty percent earned the full-time award and 31 percent the part-time award in the second term. The scholarships earned were then paid directly to the students, “allowing them to use the money for whatever expenses were most pressing”, said Reshma D. Patel, a research analyst with MDRC and a co-author of the report. Unlike scholarship funds that must be put towards tuition fees or books, the student has the freedom to use the cash as they see fit. “That flexibility was especially important for the program's target population, low-income parents, who could use the money for child-care or other living expenses,” Patel said.

So, future college attendees, do you think students would be more inclined to put in a wholehearted effort in their education if they were paid to do so?


Comments

Grace Period for Student Loans Coming to an End

Simple Tips to Managing Your Loans

November 11, 2010

Grace Period for Student Loans Coming to an End

by Suada Kolovic

With the typical six-month grace period on student loans right around the corner, recent college graduates across the country will start making monthly payments whether they’re ready to or not . If you’re one of those students, or just starting your college career, here are a few suggestions from the Project on Student Debt, an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization, on how to manage your loans.

  • Know where you stand.

    A great way to get the exact amount you owe is to visit your lender – in some cases, lenders – or you can find details of your student loans, including balances, by visiting the National Student Loan Data System, the U.S. Department of Education’s central database for student aid. If you have non-federal loans, there is a possibility they won’t be listed so contact your institution for that information.
  • When’s the first payment?

    The grace period for student loans is the time after graduation before having to make your first payment. But the length of grace periods can vary; for Federal Stafford loans it’s six months, nine months for Federal Perkins Loans and Federal Plus Loans depend of when they were issued. To find out the grace period attached to private loans contact your lender.
  • Keep in touch with your lender.

    It’s important to remember to keep your contact information updated with your lender. Whether you’re moving or changing your phone number, an updated contact sheet could save you from unnecessary fees.
  • Consider what repayment option works best for you.

    One option is the Income-Based Repayment Program (IBR), which is not available on private loans, that sets a reasonable monthly payment based on a borrower’s income and family size. Under IBR, after 25 years of qualifying payments, your remaining debt, including interest, will be forgiven.
  • Prepare for life and the unexpected.

    Sometimes life doesn’t go according to plan. If you can’t make payments due to unemployment, health issues or other unexpected financial challenges, you have options for managing your federal student loans. There are options to temporarily postpone your payments, such as deferments and forbearance. Contact your lender for more information and the interest attached to those options.
  • Never ignore your financial responsibilities.

    Ignoring your student loans – or any loan for that matter – can result in serious consequences that can last a lifetime. When you default, your total loan balance becomes due, your credit score is ruined and the total amount you owe increases dramatically. If you default on a federal loan, the government can garnish your wages and seize your tax refunds.

Comments

Student Loans Leave Student $200,000 in Debt

Northeastern Grad Starts Website to Help Make Payments

November 23, 2010

Student Loans Leave Student $200,000 in Debt

by Suada Kolovic

Figuring out how to pay for a college education can be complicated, but what happens once you’ve graduated and your loans become so overbearing that even with a full-time job, monthly payment are implausible? A few weeks ago, we blogged that the average college student leaves school with $24,000 in debt, but what about the student who’s debt is about eight times that amount? Northeastern alum Kelli Space, 23, found herself in that exact predicament: With $200,000 in debt, Space was unable to pay her stifling student loans – her monthly payments to Sallie Mae are $891 and by next November that figure will nearly double – so she started a website, Two Hundred Thou, in order to solicit donations from the public.

The site is devoted to sharing her story about the naivety of an 18- year-old, who was the first in her family to attend college and her reliance on readers to foot the bill. Space explains, “At the moment, I like to think I have great things going for me! A job, an accommodating family, loyal friends, etc... but these loans are crippling my ability to enjoy these things – or pay rent. Can I live?” She goes on to explain that by donating to her cause, you’ll also be helping the country as a whole.

Two Hundred Thou also tracks Space’s progress and so far she’s raised $1,726.50, leaving a mere $198,273.50 to go. Space ends with the notion that once her student loans are paid off she’ll spend her money elsewhere, “probably single-handedly spurring the economy.” To think you’re just a click away from cleaning up the mess of a recent college graduate, while fixing the economy and helping the country as a whole – and at $200,000, that’s a bargain.

However, we should point out – before you lend a helping hand – that we really don’t know who this person is or even whether this story is embellished or even entirely fabricated. The domain is registered privately, hiding the identity of the registrant, and the email address is just a gmail account anybody could have created. Sure, maybe this is on the up-and-up, but there’s really no way of knowing. It wouldn’t be shocking to see a bunch of these sites spring-up if this idea gains traction and exposure.


Comments

Pew Reports Students Borrowing More than Ever

by Suada Kolovic

On the heels of our latest post – a story about a Northeastern grad who accumulated $200,000 in student loans – the Pew Research Center released a report that members of the class of 2008 borrowed 50 percent more than their counterparts who graduated 12 years earlier. According to the report, increased borrowing by college students has been driven by three trends: more college students are borrowing, college students are borrowing more, and more college students are attending private for-profit schools. The report reveals that the number of undergraduates borrowing rose from 52 percent in 1996 to 60 percent in 2008 and among those who borrowed, the average undergraduate loan increased from $17,000 in 1996 to $23,000 in 2008. The rise in attendance at private, for-profit colleges also resulted in the increase of student borrowing; the report states, “Students who attend for-profit colleges are more likely than other students to borrow, and they typically borrow larger amounts.”

This isn’t the shock of the century by any means. In August, the Wall Street Journal reported that for the first time in history, student-loan debt surpassed credit card debt. The figures are staggering: According to the Federal Reserve, Americans owe $826.5 billion in revolving credit, while students owe an estimated $829.785 billion in loans. In fact, so many college graduates are plagued by massive amounts of debt that the Huffington Post has provided an outlet for college graduates to share their stories - almost as a cautionary tale – through an ongoing project, Majoring in Debt.

What do you think? With recent college graduates facing debt in the hundreds of thousands, what are you doing to ensure you don’t end up in the same situation?


Comments

Boston University Student Wins ‘Jeopardy!’ College Championship

Will Use Winnings to Pay Student Loans, Graduate Debt Free

November 26, 2010

Boston University Student Wins ‘Jeopardy!’ College Championship

by Suada Kolovic

Competing against some of the brightest young minds in the country, Boston University sophomore Erin McLean became the 2010 “Jeopardy!” college champion on Saturday. The 2009 Danvers High School graduate beat out 14 competitors for the coveted title. Taking on challengers from Yale University and Southern Adventist University in Tennessee in the final round, McLean won the grand prize of $100,000. Aware of the current economic climate, McLean shared how she planned on spending her winnings: "The first thing I'll do is payoff my student loans. I'm really looking forward to graduating debt-free; that will be amazing." Any money remaining will go towards a new MacBook and a spring break trip with friends. (She is in college, after all!)

McLean, a lifelong “Jeopardy!” fanatic, explained that after missing the Final Jeopardy question, she was unsure of her fate – “If you watch the show, it looks like I didn't know whether I won or not," she revealed – but after a few gut-wrenching seconds, host Alex Trebek announced her the winner. As she made her way out to center stage, she stood beside Trebek clutching the championship trophy, giggling all the while. “It was unreal and one of the best moments of my life," McLean said. "I got to actually live my childhood dream. I never thought I'd even get called to be on the show, so to win ... Words can't even describe it."


Comments

Win $10K in This Scholarship of the Week!

John F. Kennedy Profile in Courage Award Deadline Jan. 9th

December 6, 2010

Win $10K in This Scholarship of the Week!

by Suada Kolovic

The annual John F. Kennedy Profile in Courage Essay Contest invites high school students from across the nation to write an original essay about an elected official who has demonstrated political courage. The contest is a companion program of the Profile in Courage Award, named for President Kennedy’s 1957 Pulitzer Prize-winning book, Profiles in Courage, which recounts the stories of eight senators, the obstacles they faced, and the special valor they demonstrated despite the risks.

Winning essayists will receive awards totaling up to $13,500. The first-place winner will be invited to accept the award at the Profile in Courage Award Ceremony hosted each May by Caroline Kennedy at the John F. Kennedy Presidential Library and Museum in Boston.

For more information on this scholarship and other scholarship opportunities, conduct a free scholarship search today!


Comments

Nobody’s Business

Interest in the Once Most Popular Major Stalling, Falling

December 13, 2010

Nobody’s Business

by Alexis Mattera

One would think that the condition of the U.S. economy would have undergraduates declaring business as their majors in droves. One would also, however, be wrong: Federal and college data show interest in the field is mimicking the Metrodome roof and falling.

Inside Higher Ed reports business is no longer the big man on campus in terms of majors and interest appears to be static and even waning at many schools. Since 2008, Pennsylvania State University has recorded a 30-percent decline in undergraduates accepting offers from its Smeal College of Business – a trend that’s far from isolated: Though rates have remained stable and even increased at the University of Oregon and Indiana University, the share of business majors at University of Central Florida is down by nearly 15 percent this semester relative to 2008 and 13 percent fewer students are enrolled in Purdue University’s Krannert School of Management this semester compared to two years ago; last year, the number of applicants dropped 26 percent from the previous year.

John Pryor, director of the survey-conducting Cooperative Institutional Research Program at the University of California Los Angeles, suggested student loan debt and the perceived lack of career stability in business may be fueling this shift. "Even though students have higher debt, some are seeing that business is not as likely to help them pay that debt back," he wrote. "We also saw business employees losing jobs and having lower incomes, so perhaps students see business as not providing as sure a track towards economic freedom as in the past." The survey also suggested undergraduate interest in business peaked long ago – 1987 to be precise, the same year Gordon Gekko famously declared "greed, for lack of a better word, is good” in the movie “Wall Street.” Coincidence?

Students, has the economy influenced what you’re majoring in? Are you more likely to take pages from the books of computer science majors Bill Gates and Mark Zuckerberg instead of emulating good ol’ Mr. Gekko?


Comments

A Deal with the (Sun) Devil

ASU Placed on NCAA Probation for Scholarship Violations

December 17, 2010

A Deal with the (Sun) Devil

by Alexis Mattera

Imagine working hard throughout high school, getting accepted to the college or university of your choice and receiving a scholarship covering all or part of your tuition. Now imagine being asked to give back even a tiny percentage of that award.

Wait...WHAT?! Exactly...but that's what happened at Arizona State University when former baseball coach Pat Murphy requested a number of his players relinquish all or part of their athletic scholarships for the 2006-2007 academic year so that the coaching staff could enroll several transfer students they had been recruiting through a program Murphy called Devil-to-Devil. His actions may not have been discovered unless a parent of a player complained about the process to ASU’s athletics director and after an investigation, the National Collegiate Athletic Association (NCAA) agreed that this practice was problematic and violated rules. The punishment: ASU has been banned from the college playoffs this coming season and must vacate numerous wins, including the team’s 2007 Pacific-10 Conference title and trip to the College World Series; the school also received three years' probation, scholarship reductions and recruiting limitations. Though ASU has taken responsibility for not monitoring the baseball program more closely, it intends to appeal the NCAA’s decision.

As for Murphy – who echoes the name of his program with several other questionable practices – he’s not coaching anywhere at the moment but will not go unpunished. He was forced to resign last year and the NCAA bestowed a one-year show-cause penalty upon him so that any institution interested in hiring him in the next 12 months must not only defend why it is hiring him but also how it will monitor his behavior to prevent further violations.

This situation is shady any way you slice it but I do feel for the ASU students and coaches who are being penalized for events they had no part in. The beauty of college scholarships is that they don’t have to be repaid, allowing students to graduate with little to no student loan or credit card debt. To be clear, what Murphy did was wrong but by limiting the amount of scholarship awards and financial aid ASU can disperse, he’s not the one being truly punished – it’s the deserving students that are being hurt the most.


Comments

Mind the Gap

Should You Take a Year Off?

December 30, 2010

Mind the Gap

by Alexis Mattera

The road to college – once thought to be straight and narrow – is detouring into uncharted territory. It was once expected for all high school seniors to matriculate to an institute of higher education the semester after they graduate but today, many students (and their parents) are considering the notion of taking a year off from formal schooling first.

But what do students do during this time, often called a gap year? Not catching up on “Extreme Couponing” or trying out online dating: Students use this time to volunteer abroad or build their resumes and schools are adopting formal programs allowing incoming freshmen to defer admission for a year to do so. According to the Wall Street Journal, "gap fairs" are becoming just as common as campus job expos. The results? Mixed. While most students end their gap years better prepared to attend college, some get so waylaid that they abandon a collegiate education all together.

It may sound tempting to take a year off to explore the unknown but there are a few confounding variables. First, the price tag is far from alluring – unless you feel $35,000 is a reasonable figure. (The upside is that costs can be defrayed by stipends, grants, research fellowships and scholarships or the agreement to work in a very remote area.) Next, the hazy direction of your future. I won't deny that your late teens and early 20s are the best times to gain life experience but if said experience is going to leave you in debt or questioning once-important educational goals, is taking the time off worth it?


Comments

Recent Posts

Tags

ACT (19)
Advanced Placement (24)
Alumni (16)
Applications (76)
Athletics (17)
Back To School (72)
Books (66)
Campus Life (444)
Career (115)
Choosing A College (41)
College (918)
College Admissions (225)
College And Society (271)
College And The Economy (330)
College Applications (141)
College Benefits (282)
College Budgets (205)
College Classes (437)
College Costs (454)
College Culture (548)
College Goals (386)
College Grants (53)
College In Congress (78)
College Life (500)
College Majors (212)
College News (502)
College Prep (164)
College Savings Accounts (17)
College Scholarships (129)
College Search (109)
College Students (375)
College Tips (99)
Community College (54)
Community Service (40)
Community Service Scholarships (26)
Course Enrollment (18)
Economy (96)
Education (24)
Education Study (28)
Employment (36)
Essay Scholarship (38)
FAFSA (49)
Federal Aid (86)
Finances (68)
Financial Aid (361)
Financial Aid Information (37)
Financial Aid News (31)
Financial Tips (35)
Food (44)
Food/Cooking (27)
GPA (80)
Grades (91)
Graduate School (54)
Graduate Student Scholarships (19)
Graduate Students (63)
Graduation Rates (38)
Grants (61)
Health (38)
High School (128)
High School News (62)
High School Student Scholarships (142)
High School Students (257)
Higher Education (110)
Internships (525)
Job Search (167)
Just For Fun (96)
Loan Repayment (33)
Loans (39)
Military (16)
Money Management (134)
Online College (20)
Pell Grant (26)
President Obama (19)
Private Colleges (34)
Private Loans (19)
Roommates (99)
SAT (22)
Scholarship Applications (153)
Scholarship Information (140)
Scholarship Of The Week (226)
Scholarship Search (181)
Scholarship Tips (70)
Scholarships (360)
Sports (61)
Sports Scholarships (21)
Stafford Loans (24)
Standardized Testing (45)
State Colleges (42)
State News (33)
Student Debt (76)
Student Life (499)
Student Loans (130)
Study Abroad (66)
Study Skills (214)
Teachers (94)
Technology (111)
Tips (479)
Tuition (92)
Undergraduate Scholarships (35)
Undergraduate Students (154)
Volunteer (45)
Work And College (82)
Work Study (20)
Writing Scholarship (18)

Categories

529 Plan (1)
Back To School (351)
College And The Economy (463)
College Applications (244)
College Budgets (333)
College Classes (548)
College Costs (703)
College Culture (904)
College Grants (132)
College In Congress (123)
College Life (868)
College Majors (321)
College News (823)
College Savings Accounts (55)
College Search (382)
FAFSA (108)
Federal Aid (118)
Fellowships (23)
Financial Aid (637)
Food/Cooking (76)
GPA (277)
Graduate School (106)
Grants (71)
High School (479)
High School News (206)
Housing (172)
Internships (564)
Just For Fun (202)
Press Releases (1)
Roommates (138)
Scholarship Applications (183)
Scholarship Of The Week (301)
Scholarships (546)
Sports (73)
Standardized Testing (58)
Student Loans (220)
Study Abroad (60)
Tips (741)
Uncategorized (7)
Virtual Intern (531)

Archives

< Mar April 2014 May >
SunMonTueWedThuFriSat
303112345
6789101112
13141516171819
20212223242526
27282930123
45678910

Follow Us:

facebook twitter rss feed
<< < 8 9 10 11 12 13 14 15 16 17  > >>
Page 13 of 46