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May 25, 2007
Financial Aid- Start Early, Plan Smart
I too often talk with families of high school juniors and seniors about scholarships and financial aid and by that time 90% of the decision have already been made. And sometimes these decisions are bad ones.
I wish college admission and financial aid counselors could talk with parents of preschoolers. I’m not sure if young parents are getting proper advice or maybe they are and are ignoring it. I am the parent of the three year-old and the cost of higher education is very intimidating for me, and I work at a college!
If you have young children here are some quick types and myths to avoid:
- You more than likely will not be able to pay for a child’s college education from your annual income. Your parents may have been able to, but with the cost of an education increasing faster than cost of living, this is next to impossible for most families.
- You must have a plan. Savings is very important, but it doesn’t have to be the only method of paying for an education. Here are some more things to do:
o Home equity- refinancing a mortgage can free up a lot of money to help pay for a college education. Equity and lower rates make it possible for families to free up cash.
o Stop living month-to-month. Leasing cars is a great example of this. My advice- plan to have your cars paid off when your child enters college. Imagine what you could do with the $800 to $1200 a month that you might be paying on two leased vehicles. We all need vehicles to get around, but you can be smart about how this affects your finances in regards to a child’s education. The average family in the us spends $8000 a year on cars; that could be $32,000 in expendable income over four years that can go toward educational costs.
o Reduce your credit-card debt. I know, easier said than done. This will require living within your means, or maybe below it.
- Save early! Set up college funds at birth and put in what ever you can, when ever you can. The Rule of 72- an investment earning 8% return will double in 9 years! Compound interest is your friend when saving for a college education.
- Be in a strong borrowing position. It is almost impossible not to take a loan out to pay for a college education. It will become more impossible in future years. Some of these loans will be in the student’s name, but many times parents must take loans out to defer the cost of an education.
Only 1% of the world’s population has a college degree. In the US an education is expected, but after high school it will rarely be provided for free. Paying for a college education will take sacrifice from the student and family. We spend hundreds, even thousands of dollars to give our children the best during their childhood, but it is important to realize that they may need us the most in preparing them for their careers. Spend smart, plan early, and good luck.
Posted by Chris Boehm at 9:42 AM | Comments (0)
May 21, 2007
Albright Graduation 2007
Four years ago we welcomed the class of 2007 as freshman. I’m sure in August of 2003 the last thing on these student’s minds was May, 2007. Probably felt like a million miles away. I know when I received my college admission letter- so long ago that it was probably actually typed, I never thought my college graduation would come. Four years seemed like a lifetime. But I’m sure all our graduates on Sunday will tell you it went by in the blink of an eye. I had a chance to stop by prior to graduation with my daughter to congratulate some of the students I got to know really well. Didn’t catch all of them, but it was good to see Natalie, Ed, Meredith, Natalie B, Megan, Jessica and some others.
There aren’t many times in your life that you are forced to start over again. Graduations are time for family celebration but can also be a time of great trepidation for students. High school graduation meant that students would start all over again at college. And what causes more stress than packing and leaving for colleges? Why? Because it means starting all over. College graduation is no different. Students become comfortable with a routine, they know that someone is looking out for them. The stress level varies from day to day, but for the most part students are protected.
Then comes graduation! “Yahoo! We’re outta here!” What’s next? Many students already have jobs lined up or acceptances to graduate schools. But the life they knew for the last four years is changing. Some students find this change accelerating, but many are very nervous. Students will quickly find out what many of us already know; the education that they received at Albright is their new protection. They should be comforted to know that it will take them places they never believed they’d go. And while they will not be able to hang out every night with all their friends’ playing cards or watching movies, or go to every football and basketball game with their faces painted. They will have those memories and they’re always welcome to come back to Albright to relive them on occasions.
To the class of 2007, CONGRATULATIONS! I wish you the best of luck in your future endeavors. This chapter of your life is written, but it is one that you can always revisit for the memories and in person.
Posted by Chris Boehm at 1:37 PM | Comments (0)
May 3, 2007
Politics of Higher Education
I had the privledge of spending yesterday morning in the Pennsylvania Senate talking to leaders about the importance of increasing funding for higher education and higher education preparation programs. Did you ever wonder where the state grant you have came from? Or where the funding that paid for your dual-enrollment class magically appeared? The answer is simple; the financial politics of higher education.
Pennsylvania has it pretty good when it comes to funding education and Gov. Rendell and recent Pennsylvania General Assembly have created some great new initiatives that are helping students prepare and attend college. A group from our state association, The Pennsylvania Association for College Admission Counseling, talked with members of the Assembly yesterday about increasing funding for three major programs. The Project 720, Dual Enrollment, and State Grants, are three programs that are critical in the college preparation and success of Pennsylvanians. Project 720 funds dual enrollment programs that permit students to take college courses during their junior and senior years if they have exhausted their high school curriculums, some schools can’t afford to hirer new teachers to teach AP and honors level classes, this fund permits those districts to offer their students an equally rigorous high school schedule without having to hirer new teachers. Taking these college courses better prepares students for college, may reduce the financial burden of college by permitting them to graduate in less than four years, and makes them a more attractive applicant to the colleges and universities that they will be applying to. The funding of this project will also reduce guidance counselor loads from Pennsylvania’s present ration of 415:1. State Grants for college benefit thousands of college students. Eligible students receive up to $4,500 a year toward their education. These grants make college a reality for a lot of students. There is presently a shortfall in this program and we are hoping that the Governor and the Assembly find a way to fund the entire program so that students don’t lose their grants and have to leave school.
So why is funding for higher education important? I consider it an investment in the state’s future. Pennsylvanians that obtain a college degree will earn more, vote more, pay more taxes, and fill the need that Pennsylvania has for talented educated people. College educated individuals are less likely to be unemployed, receive public assistance, or become incarcerated. In a nutshell, college educated individuals contribute to the wealth and services of the state at a higher percentage and are less likely to take advantage of services that will need to be funded by the state. A $4,500 state grant is a much better investment in the future of Pennsylvania than the $26,000 is costs to incarcerate a criminal.
So I, PACAC, and all the people of Pennsylvania thank Senator Erickson, Senator Rhoads, Senator Armstrong, Senator O’Pake, Senator Mellow, and Senator Pileggi for taking time out of your day to meet with us yesterday. We hope that you are as excited about investing in the future of Pennsylvania as we are. To contact your senator or respresentative about issues, visit- http://www.legis.state.pa.us/
Posted by Chris Boehm at 7:29 AM | Comments (0)