People sometimes ask, "How many four-year colleges are there in the U.S.?" Well, there are about 2,500 four-year schools in the U.S., but if you ask most educated graduates, they may be able to name 20-50 of these. Not all 2,500 of these institutions are valuable though, but I will state that there are a number of colleges and universities that are relatively unknown that are very valuable, and worth a look. I have listed a few below, one small and one large from each region for you to consider...
WEST: Check out the University of British Columbia. This is a large Canadian University right on the water with strong science and music departments. The University has a good academic reputation and the city of Vancouver has lots to offer students from all backgrounds. Also take a look at Whitworth in Spokane, Washington. Whitworth is a small Presbyterian school with a gorgeous campus and a caring faculty and student population. The school is located down the street from Gonzaga and the city of Spokane offers a mall, a river and four seasons.
MIDWEST: For a large school take a look at Miami of Ohio. This is a nice size school that has a beautiful campus, lots of activities and majors to choose from, and is a short drive from Cincinnati. A smaller school to look at in this region is St. Olaf. This school offers a very caring environment with strong academic rigor, only a short drive south of Minneapolis.
SOUTH: The University of Mississippi is looked over by many. Ole Miss has a very traditional atmosphere with great campus life and a cool town surrounding it. The school has a few academic divisions that are well known too. For a smaller choice in the south consider the University of the South (Sewanee). This is a small school on a very large, picturesque campus. Again, lots to get involved in at Sewanee and good classes and choice in majors for a small school.
EAST: Syracuse is often times known for its athletics, but check it out for its academics too. Offerings in most areas and notable majors in its Newhouse School of Communications makes Syracuse a creative choice for a big school up east. A small option in the east could include Muhlenberg. Muhlenberg is located in Pennsylvania and offers a few majors outside of the liberal arts including Business and the Performing Arts. Located north of Philadelphia in Allentown, Muhlenberg offers its students a great learning environment with weekend options in the city.
These hidden gems are just some of the many good college options out there to consider. When you travel to visit a college out of state, be sure to leave enough time to visit others in that same area to form a better comparison and get more for your travel dollars.
Friday, November 5, 2010
Friday, September 17, 2010
Recent College Grads Default on Loans
We saw this coming. Recent college grads, unable to gain employment, now with student debt coming due this fall, DEFAULT. This week the U.S. Department of Education posted information on student loan defaults from 2008. As this was simply the beginning of our current economic recession, we will most likely see the numbers worsen in the coming years. Nearly 240,000 students who had loans come due from 2007-2008 defaulted on their first payments (this number does not include borrowers who have defaulted well into their repayment schedule). Think about this. Many of the student loans that are not being paid back are federally funded; that means we as taxpayers are being owed money that is not being paid back. The default rate from 2008 was 7%. Students who graduated from a public four year university had a default rate of 6%, and those who graduated from a private four year university had a default rate of 4%. But, those students who graduated from for-profit schools had a default rate of 11.6%. 43% of total money in default came from students of for-profit colleges.
Recently I have advised students who are considering student loans to look at $40,000 total student debt after four years as a manageable number, in general. Those monthly payments (for 10 years) are tough, but manageable if they graduate on time and get a good job.
College is like a monopoly; everyone still wants to go, but prices continue to rise, even in a recession. A college degree is still very valuable, but students (and parents) need to be smart. Borrowers need to investigate the reputation of the college or university they are considering. They need to ask around, inquiring where recent grads took jobs. And students who have just exited college and fret over loan repayment should contact their lender to ask about loan consolidation, or deferrals, in the case of financial hardship. It's tough, but it's worth asking.
So, what do we see coming in another six months? Probably rising default rates of recent grads, more financial aid applications for incoming freshman, even more students delaying repayment by entering grad school, and a flood of current college students wrestling for on campus jobs.
News Video Link: http://www.azcentral.com/video/#/News/Student+loans/40280768001/35150280001/610107252001
Recently I have advised students who are considering student loans to look at $40,000 total student debt after four years as a manageable number, in general. Those monthly payments (for 10 years) are tough, but manageable if they graduate on time and get a good job.
College is like a monopoly; everyone still wants to go, but prices continue to rise, even in a recession. A college degree is still very valuable, but students (and parents) need to be smart. Borrowers need to investigate the reputation of the college or university they are considering. They need to ask around, inquiring where recent grads took jobs. And students who have just exited college and fret over loan repayment should contact their lender to ask about loan consolidation, or deferrals, in the case of financial hardship. It's tough, but it's worth asking.
So, what do we see coming in another six months? Probably rising default rates of recent grads, more financial aid applications for incoming freshman, even more students delaying repayment by entering grad school, and a flood of current college students wrestling for on campus jobs.
News Video Link: http://www.azcentral.com/video/#/News/Student+loans/40280768001/35150280001/610107252001
Tuesday, September 7, 2010
How to Pay for College
College has been, and will always be valuable. The experience has value not only in its academics, but also in its ability to socially develop young individuals who are away from home for the first time. The excitement of independence sometimes draws a curtain over the ever increasing, and enormous cost to attend college. Many times young minds cannot differentiate $30,000 from $40,000, or a $10,000 a year student loan from a $15,000 a year student loan, and what that debt looks like over time.
Parents have recently wondered if saving for college has actually hurt their chances at financial aid. While savings certainly factors into the Expected Family Contribution, there is no replacement for money readily available when it is time to pay for a college education. Many families are struggling and searching for this funding when time is not on their side. When financial markets tumble, and investments, like college savings, languish, families need other sources to draw from. Have you sat down as a family to brainstorm others? Consider these points below as a beginning to your conversation...
-What groups do mom and dad belong to that may offer scholarships to students?
-Have I spent time on each financial aid website for my college choices, looking for scholarships that require additional paperwork?
-Can my student get a job to offset some of the extra expenses like travel, food and entertainment?
-Have I considered residency requirements for out of state colleges?
Let's put college expenses into real terms. The cost to attend a private college can be 4.5 times higher than attending a well known private high school. Remember when you sent your child to preschool and paid tuition for the first time? College can cost 44 times that of preschool.
Students this year will struggle to find outside sources of money to pay for college, and so too will parents who want the best for their children. In witnessing students take out six figure undergraduate loans, and watching parents draw down their retirement savings early, we can certainly see that college is still valuable to many. But, starting with a simple family conversation at dinner can aid parents now, and students in the future.
Parents have recently wondered if saving for college has actually hurt their chances at financial aid. While savings certainly factors into the Expected Family Contribution, there is no replacement for money readily available when it is time to pay for a college education. Many families are struggling and searching for this funding when time is not on their side. When financial markets tumble, and investments, like college savings, languish, families need other sources to draw from. Have you sat down as a family to brainstorm others? Consider these points below as a beginning to your conversation...
-What groups do mom and dad belong to that may offer scholarships to students?
-Have I spent time on each financial aid website for my college choices, looking for scholarships that require additional paperwork?
-Can my student get a job to offset some of the extra expenses like travel, food and entertainment?
-Have I considered residency requirements for out of state colleges?
Let's put college expenses into real terms. The cost to attend a private college can be 4.5 times higher than attending a well known private high school. Remember when you sent your child to preschool and paid tuition for the first time? College can cost 44 times that of preschool.
Students this year will struggle to find outside sources of money to pay for college, and so too will parents who want the best for their children. In witnessing students take out six figure undergraduate loans, and watching parents draw down their retirement savings early, we can certainly see that college is still valuable to many. But, starting with a simple family conversation at dinner can aid parents now, and students in the future.
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