Friday, September 21, 2007
Student Loans: An Education
With college tuition going up 6%-8% annually at most colleges and universities across the country students are needing student loans more then ever. We all know that the student loan system has had it's issue of late, it's murky territory. Be careful and prepare yourself by educating yourself.
Monday, September 10, 2007
Tylenol Scholarship
If you're applying to college and are pursing a career in health care then here is a scholarship for you to pursue: Tylenol Scholarship
They are offering a total of $250,000!
They are offering a total of $250,000!
Thursday, September 6, 2007
GETTING GOING by Jonathan Clements
Jonathan Clements wrote the following article in the journal yesterday. Although he makes some very good points, I do not agree with the article.
At the end of the day, you should APPLY FOR FINANCIAL AID. Complete THE FAFSA!!! Private schools may use the information to determine who receives grant money from them whether it is need based or not. Think about it this way: When someone leaves money for someone in their will it is usually someone they know, right? Well private schools feel the same way. In many cases they want to know who is getting their money. If you are applying to just state schools, then maybe you shouldn't apply for financial aid if you don't think you will be eligible. Even still I think you should. Filling out the FAFSA will make you eligible for taking our federal loans, which even if you can afford to pay for school you should consider taking them out because it will help you establish a line of credit. Fill out the FAFSA. Then decide if you want to take what is offered to you.
Enjoy the article!
Applying for Financial Aid:
When It Isn't Worth Your Time
September 5, 2007; Page D1
Should you even bother?
For many high-school seniors, this week isn't just the beginning of the academic year. It's also the start of the college-application season, and that means filling out financial-aid forms.
But for many families with hefty incomes or sizable wealth, applying for aid will be a wasted effort. Here's a look at who likely won't qualify.
[icon] ECONOMICS 101
Facing rejection. You can get a handle on your aid eligibility by heading to www.collegeboard.com and playing with the College Board's Expected Family Contribution, or EFC, calculator.
The key concept: If your EFC is below a college's total annual cost, you will get help from the college or the federal government in bridging the gap. We're talking here about aid based on financial need. If your daughter is a basketball-playing piano prodigy with 2400 SATs, she might receive a merit award, even if you're rolling in dough.
So will you receive needs-based aid? Imagine you don't own your home, have no savings and just one child. With $90,000 in pretax income, your EFC would be around $13,000 a year, which is the average cost for an in-state student at a public institution.
In other words, if your kid went to a college costing $13,000 a year, you would probably get little or no aid. This EFC is based on the "institutional methodology" used by many colleges.
If your income is $150,000, your EFC would be above $30,000, which is the average cost for a private four-year college. Got $210,000? Your EFC might be $48,000, which means you likely won't get aid, even if your kid goes to one of the country's most expensive private colleges.
If you have two children in college at the same time, your odds of getting some aid are far better. Your EFC would be around $13,000 per child at $120,000 in income, roughly $30,000 per child at $220,000 and it wouldn't hit $48,000 until your income got above $300,000.
Remember, however, we are talking about income alone. What if you have, say, $500,000 in investments sitting in a regular taxable account?
If you had one child in college and your income was $130,000, your EFC might be $47,000, which means you are unlikely to get aid, no matter where your child goes to college. Similarly, at $250,000 in income and with two children in college, your EFC would be some $47,000 per child. Again, you would likely be out of luck.
If your EFC is just $10,000 or $20,000 above a college's cost, "you should probably apply the first year," says Myra Smith, the College Board's executive director of financial-aid services. "You should give it a shot. But you should also come to grips with the fact that, even if you get financial aid, you'll still have to pay a lot."
Moreover, the aid you receive may not be grant money. "At many schools, the first aid you will get is a subsidized Stafford loan," notes Sandy Baum, an economics professor at Skidmore College in Saratoga Springs, N.Y.
• Applying anyway. With the College Board's calculator, you can get results using not only the institutional methodology, but also the government's federal methodology.
The federal formula ignores home equity, while colleges often take it into account, though they may cap the amount considered. Both formulas ignore retirement accounts, so don't include these sums when listing your investments in the College Board calculator. Some colleges, however, may consider 401(k)s and their ilk when doling out aid.
Even if you have no chance of receiving aid, you should fill out the federal-aid form if you want to be eligible for the government's unsubsidized Stafford loan program. Similarly, if you don't expect aid now but think you will be eligible when your second child applies in two years, you may want to file the aid forms. Some colleges also require students seeking merit aid to file first for needs-based aid.
In addition, apply for aid if you have extenuating circumstances. If you have high medical costs, if your income will be lower in the years ahead, or if you're incurring hefty expenses looking after elderly parents, you may receive aid, even if the formulas suggest otherwise.
At the end of the day, you should APPLY FOR FINANCIAL AID. Complete THE FAFSA!!! Private schools may use the information to determine who receives grant money from them whether it is need based or not. Think about it this way: When someone leaves money for someone in their will it is usually someone they know, right? Well private schools feel the same way. In many cases they want to know who is getting their money. If you are applying to just state schools, then maybe you shouldn't apply for financial aid if you don't think you will be eligible. Even still I think you should. Filling out the FAFSA will make you eligible for taking our federal loans, which even if you can afford to pay for school you should consider taking them out because it will help you establish a line of credit. Fill out the FAFSA. Then decide if you want to take what is offered to you.
Enjoy the article!
Applying for Financial Aid:
When It Isn't Worth Your Time
September 5, 2007; Page D1
Should you even bother?
For many high-school seniors, this week isn't just the beginning of the academic year. It's also the start of the college-application season, and that means filling out financial-aid forms.
But for many families with hefty incomes or sizable wealth, applying for aid will be a wasted effort. Here's a look at who likely won't qualify.
[icon] ECONOMICS 101
Facing rejection. You can get a handle on your aid eligibility by heading to www.collegeboard.com and playing with the College Board's Expected Family Contribution, or EFC, calculator.
The key concept: If your EFC is below a college's total annual cost, you will get help from the college or the federal government in bridging the gap. We're talking here about aid based on financial need. If your daughter is a basketball-playing piano prodigy with 2400 SATs, she might receive a merit award, even if you're rolling in dough.
So will you receive needs-based aid? Imagine you don't own your home, have no savings and just one child. With $90,000 in pretax income, your EFC would be around $13,000 a year, which is the average cost for an in-state student at a public institution.
In other words, if your kid went to a college costing $13,000 a year, you would probably get little or no aid. This EFC is based on the "institutional methodology" used by many colleges.
If your income is $150,000, your EFC would be above $30,000, which is the average cost for a private four-year college. Got $210,000? Your EFC might be $48,000, which means you likely won't get aid, even if your kid goes to one of the country's most expensive private colleges.
If you have two children in college at the same time, your odds of getting some aid are far better. Your EFC would be around $13,000 per child at $120,000 in income, roughly $30,000 per child at $220,000 and it wouldn't hit $48,000 until your income got above $300,000.
Remember, however, we are talking about income alone. What if you have, say, $500,000 in investments sitting in a regular taxable account?
If you had one child in college and your income was $130,000, your EFC might be $47,000, which means you are unlikely to get aid, no matter where your child goes to college. Similarly, at $250,000 in income and with two children in college, your EFC would be some $47,000 per child. Again, you would likely be out of luck.
If your EFC is just $10,000 or $20,000 above a college's cost, "you should probably apply the first year," says Myra Smith, the College Board's executive director of financial-aid services. "You should give it a shot. But you should also come to grips with the fact that, even if you get financial aid, you'll still have to pay a lot."
Moreover, the aid you receive may not be grant money. "At many schools, the first aid you will get is a subsidized Stafford loan," notes Sandy Baum, an economics professor at Skidmore College in Saratoga Springs, N.Y.
• Applying anyway. With the College Board's calculator, you can get results using not only the institutional methodology, but also the government's federal methodology.
The federal formula ignores home equity, while colleges often take it into account, though they may cap the amount considered. Both formulas ignore retirement accounts, so don't include these sums when listing your investments in the College Board calculator. Some colleges, however, may consider 401(k)s and their ilk when doling out aid.
Even if you have no chance of receiving aid, you should fill out the federal-aid form if you want to be eligible for the government's unsubsidized Stafford loan program. Similarly, if you don't expect aid now but think you will be eligible when your second child applies in two years, you may want to file the aid forms. Some colleges also require students seeking merit aid to file first for needs-based aid.
In addition, apply for aid if you have extenuating circumstances. If you have high medical costs, if your income will be lower in the years ahead, or if you're incurring hefty expenses looking after elderly parents, you may receive aid, even if the formulas suggest otherwise.
Wednesday, August 29, 2007
WALL STREET JOURNAL ARTICLE
If you were already at odds with the SAT, you're not going to like this...
Class of 2007
Logs Slide
In SAT Scores
In Year With Record Number
Of Test Takers, Math Results
Show Worst Drop in 3 Decades
By ANNE MARIE CHAKER
August 29, 2007; Page D1
With results that will hardly put to rest the controversy over the merits of the SAT, scores for the high-school class of 2007 are in -- and they're down.
The point drop in the average math score for the latest year was the biggest in more than three decades, reported the College Board, the New York nonprofit that administers the college-admissions test. Math scores declined three points, to 515, from the previous year's 518 out of a possible 800. Critical reading -- formerly called "verbal" -- also dropped, to 502 from 503, marking the lowest score since 1994. Scores for the writing section slipped to 494 from 497 the previous year -- the first time the new section's scores were released. Taken together, the scores are the lowest of the decade so far.
SCORES SLIP
The College Board says the latest group of test takers was the largest and most diverse ever, which may be reflected in the lower average scores. Wayne Camara, the College Board's vice president for research and analysis, said that even so, the decline was "not statistically significant."
But a number of educators, college-admissions experts and students say the scores reflect deeper problems with the test itself. A revised test was introduced in March 2005, which added more algebra and reading passages and a new section that tests writing skills. And some testing experts say the reason for the drop is simple: The new test is harder and too long.
"The new test was designed to be more challenging," says Seppy Basili, senior vice president at Kaplan Inc., the test prep concern owned by Washington Post Co. The inclusion of material from advanced algebra is "a serious concern for some students," he says, some of whom don't reach the material until their junior year.
Level of Attention
The revisions to the test also added 45 minutes to the length. "It is a problem," says Scott White, director of guidance at Montclair High School, Montclair, N.J. "There is no way on earth a kid can test for nearly four hours and have the same level of attention and acuity as with a three-hour test."
Andrew Bennett-Jackson, a senior at Montclair, says he found his "focus really go down" toward the end of the exam, which he took over the summer. He scored a 1610 out of a possible 2400. He plans on trying the ACT, a rival admissions test accepted by a growing number of schools, in the fall. One big plus: The ACT's writing section is optional, which makes it shorter for students who just want to retake the other two sections. "It just makes the test a little bit easier," Mr. Bennett-Jackson says.
Math scores in the SAT have for the most part risen over the past decade, peaking at 520 in 2005 before starting a downward trend along with the new test. By comparison, reading scores have remained relatively steady in the low 500s in that period.
Past Problems
The College Board has been subject to a range of criticism over the revised test, in addition to the concerns about length. Some critics have objected to the subjective nature of scoring a written exam. And last year, the College Board took some blows after about 4,400 students were wrongly scored too low. Last week, the board announced a settlement in which it and NCS Pearson Inc., which scanned the answer sheets, will pay $2.85 million to the test takers and their lawyers.
In recent years, a number of schools have moved away from requiring the test. Still, the test is enormously influential and is taken by many students headed to elite, competitive schools.
Laurence Bunin, senior vice president for operations at the College Board, says that this year, the College Board is "absolutely confident in the scores."
Mr. White and other guidance counselors have asked the College Board to consider allowing students to retake the exam section by section. James Montoya, a College Board vice president, says, "That approach is not one we are giving further consideration to at this time." He added, though, that the board is looking at ways to shorten the "test day" experience, for instance by streamlining some of the administrative components.
IN DEPTH
Dismissing Criticism
The College Board dismissed criticism that the test is harder, saying the new test was carefully constructed for its math and reading sections to be comparable with those sections before the revisions. For instance, while some subjects, such as advanced algebra were introduced, others, such as word analogies, were eliminated. Officials also say that research done last year showed no difference in student performance at the beginning, middle and end of the test.
The College Board pointed out that a record number of students took the test in the most recent year: 1.5 million, up 2% from the previous year. It added that minority students made up a record 39% of test takers. The class of 2007 also reflects the nation's growing immigrant population: Nearly a quarter of test takers didn't list English as their only first language, up from 17% 10 years earlier.
'Deeper into the Pool'
The overall increase in test takers may be bringing the average down, the College Board says. Maine, for instance, now requires all high-school students to take the SAT, pointed out Mr. Bunin.
Mr. Basili of Kaplan says, "When you're increasing participation, you're going to decrease scores" since it means "reaching deeper into the pool to students that would normally not be going to college."
Results by Income
Among the surprises in the results: The test takers reported as being among the wealthiest were one of the groups that saw the biggest declines. Students with family incomes of more than $100,000 saw declines in all three sections combined of 19 points from the previous year's scores. By contrast, the only income group that actually saw increases were those with reported incomes between $10,000 and $20,000. In that group, there were increases in all three sections totaling 21 points.
College Board officials say the data aren't very reliable because students report their perceptions of what their parents make. And over one-third of students didn't answer the question.
Class of 2007
Logs Slide
In SAT Scores
In Year With Record Number
Of Test Takers, Math Results
Show Worst Drop in 3 Decades
By ANNE MARIE CHAKER
August 29, 2007; Page D1
With results that will hardly put to rest the controversy over the merits of the SAT, scores for the high-school class of 2007 are in -- and they're down.
The point drop in the average math score for the latest year was the biggest in more than three decades, reported the College Board, the New York nonprofit that administers the college-admissions test. Math scores declined three points, to 515, from the previous year's 518 out of a possible 800. Critical reading -- formerly called "verbal" -- also dropped, to 502 from 503, marking the lowest score since 1994. Scores for the writing section slipped to 494 from 497 the previous year -- the first time the new section's scores were released. Taken together, the scores are the lowest of the decade so far.
SCORES SLIP
The College Board says the latest group of test takers was the largest and most diverse ever, which may be reflected in the lower average scores. Wayne Camara, the College Board's vice president for research and analysis, said that even so, the decline was "not statistically significant."
But a number of educators, college-admissions experts and students say the scores reflect deeper problems with the test itself. A revised test was introduced in March 2005, which added more algebra and reading passages and a new section that tests writing skills. And some testing experts say the reason for the drop is simple: The new test is harder and too long.
"The new test was designed to be more challenging," says Seppy Basili, senior vice president at Kaplan Inc., the test prep concern owned by Washington Post Co. The inclusion of material from advanced algebra is "a serious concern for some students," he says, some of whom don't reach the material until their junior year.
Level of Attention
The revisions to the test also added 45 minutes to the length. "It is a problem," says Scott White, director of guidance at Montclair High School, Montclair, N.J. "There is no way on earth a kid can test for nearly four hours and have the same level of attention and acuity as with a three-hour test."
Andrew Bennett-Jackson, a senior at Montclair, says he found his "focus really go down" toward the end of the exam, which he took over the summer. He scored a 1610 out of a possible 2400. He plans on trying the ACT, a rival admissions test accepted by a growing number of schools, in the fall. One big plus: The ACT's writing section is optional, which makes it shorter for students who just want to retake the other two sections. "It just makes the test a little bit easier," Mr. Bennett-Jackson says.
Math scores in the SAT have for the most part risen over the past decade, peaking at 520 in 2005 before starting a downward trend along with the new test. By comparison, reading scores have remained relatively steady in the low 500s in that period.
Past Problems
The College Board has been subject to a range of criticism over the revised test, in addition to the concerns about length. Some critics have objected to the subjective nature of scoring a written exam. And last year, the College Board took some blows after about 4,400 students were wrongly scored too low. Last week, the board announced a settlement in which it and NCS Pearson Inc., which scanned the answer sheets, will pay $2.85 million to the test takers and their lawyers.
In recent years, a number of schools have moved away from requiring the test. Still, the test is enormously influential and is taken by many students headed to elite, competitive schools.
Laurence Bunin, senior vice president for operations at the College Board, says that this year, the College Board is "absolutely confident in the scores."
Mr. White and other guidance counselors have asked the College Board to consider allowing students to retake the exam section by section. James Montoya, a College Board vice president, says, "That approach is not one we are giving further consideration to at this time." He added, though, that the board is looking at ways to shorten the "test day" experience, for instance by streamlining some of the administrative components.
IN DEPTH
Dismissing Criticism
The College Board dismissed criticism that the test is harder, saying the new test was carefully constructed for its math and reading sections to be comparable with those sections before the revisions. For instance, while some subjects, such as advanced algebra were introduced, others, such as word analogies, were eliminated. Officials also say that research done last year showed no difference in student performance at the beginning, middle and end of the test.
The College Board pointed out that a record number of students took the test in the most recent year: 1.5 million, up 2% from the previous year. It added that minority students made up a record 39% of test takers. The class of 2007 also reflects the nation's growing immigrant population: Nearly a quarter of test takers didn't list English as their only first language, up from 17% 10 years earlier.
'Deeper into the Pool'
The overall increase in test takers may be bringing the average down, the College Board says. Maine, for instance, now requires all high-school students to take the SAT, pointed out Mr. Bunin.
Mr. Basili of Kaplan says, "When you're increasing participation, you're going to decrease scores" since it means "reaching deeper into the pool to students that would normally not be going to college."
Results by Income
Among the surprises in the results: The test takers reported as being among the wealthiest were one of the groups that saw the biggest declines. Students with family incomes of more than $100,000 saw declines in all three sections combined of 19 points from the previous year's scores. By contrast, the only income group that actually saw increases were those with reported incomes between $10,000 and $20,000. In that group, there were increases in all three sections totaling 21 points.
College Board officials say the data aren't very reliable because students report their perceptions of what their parents make. And over one-third of students didn't answer the question.
Friday, August 24, 2007
$$$ and US News' new group of unranked Colleges
Here are some more things that should help you all in trying to manage the application and financial aid processes.
The "Frugal Duchess" down in Miami got Sallie Mae's top 10 College Financial Aid tips. Take a look if you have some time.
You can also find other tips (some are similar) in this blog post entitled Here is a Method That is Helping Saving Money for College
If you're sick of reading about Financial Aid and Money then this article may be a better one for you. It's posted on the US News and World Reports page. It's their explanation of the "new group of colleges" that were added to the list of unranked schools for America's Best Colleges 2008.
The "Frugal Duchess" down in Miami got Sallie Mae's top 10 College Financial Aid tips. Take a look if you have some time.
You can also find other tips (some are similar) in this blog post entitled Here is a Method That is Helping Saving Money for College
If you're sick of reading about Financial Aid and Money then this article may be a better one for you. It's posted on the US News and World Reports page. It's their explanation of the "new group of colleges" that were added to the list of unranked schools for America's Best Colleges 2008.
Thursday, August 23, 2007
A College Budget
College is a time of independence. The problem is sometimes college students get a little to free with their money. They figure: "I'll be making money after I graduate, I'll pay everything off then." You might want to be careful, especially with credit cards. Budgeting your money (and time) will make college and your time right after more enjoyable in the long run.
FAFSA - What is a FAFSA anyway?
Although it is never to early to be thinking about the FAFSA and financial aid, you might want to focus on your applications at this point. If you want to know more there are some links under financial aid on the right side and you can check out this blog post as well: My Life and Finances
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