Category Archives: college costs

college costs, parenting, Real College Guide

Smart Spending (and saving) for college students

It’s never too early to teach our kids to spend smart and save. If you get them in the habit before they go off to college, it’s much easier for them to see the value once they are away from home. Today’s post by Real College Guide gives us some good ways to teach our kids to save, even if they aren’t in college yet!

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Being a college student used to mean eating three packs of ramen noodles a day and biking around campus because gassing up your 1985 Chevy was too expensive. Whether you work a part-time job or get an allowance from your parents, you can learn some key concepts to saving and spending wisely — now and after college.

Smart Spending
There are plenty of ways to save a few bucks every day. Dr. Dick Verrone, personal-finance professor for the Cameron School of Business at the University of North Carolina, Wilmington, has these penny-pinching tips:

  • Order water. Don’t get soft drinks when you’re eating out. Why pay $2 for 150 soda calories? Also, Verrone says, “Never order orange juice.” OJ is extremely overpriced at restaurants, and most of the time it’s from concentrate.
  • Limit your pocket cash. When going out on the town, take a 20-spot, and leave your cards at home. You’ll be forced to keep your tab under $20.
  • Buy quality clothing items. They may be a little more expensive, but they’ll last longer. Verrone also definitely approves of outlet shopping. But before making purchases, think: Do I need this? If not, don’t buy it!
  • Switch your prescriptions. Change your name-brand medications to generic ones. You can usually save about $20 per med this way.

Clipping “Coups”
OK, most college students don’t have easy access to a daily paper or coupon flyer, so how do you save with coupons and special discounts?

  • Look online. If you’re going to the sporting-goods store, for example, type the name of the store into the search engine, along with the words coupon codes. Lots of websites track down discount codes for online shopping, as well as printable coupons for buying items in-store.
  • Sign up for discount alerts via text. Some campuses have local text-message discount services — check at your student center or information desk. (Of course, this is not a good idea if you don’t have an unlimited cell-phone plan.) Mike Meyer, a UNCW senior, is signed up for deals in North Carolina at CouponstoYourPhone.com. “Every Monday, I get a coupon-text for one of my favorite restaurants,” he says. “It’s awesome.”
  • Purchase a coupon book. These books pack hundreds of coupons, usually for buy-one-get-one-free offers. They’re worth the $25 (if you buy one from a campus organization’s fund-raiser) or even $35 (available online at Entertainment.com) after just a few uses.

Long-term Saving
Verrone recommends getting into the habit of saving now to set yourself up for an easier financial situation after graduation. “Make the amount small enough so you can do it,” he says, such as saving $5 per week or $10 each month.

  • Set up an automatic transfer. Most large banking institutions, such as Bank of America or Wachovia, will let you set up transfers between linked checking and savings accounts. Meyer has $30 a month transferred. “That’s how I saved money for spring break freshman year,” he says.
  • Start an individual retirement account. No, you’re not too young! This is the time to do it. “Once you’ve accumulated $200 to $300, open a Roth IRA and continue to fund it every month from your savings,” advises Verrone. Even if you continue to only save that $10 per month, you’ll be accumulating real money for the future.
  • Watch your money grow. Let your savings work for you by investing in mutual funds with low expenses and superior performance records, suggests Verrone. Consult a financial adviser at your bank for more information.
  • Consider an online banking service. Having an online bank can be a good outlet for putting away large sums of money that you can still access without penalties (unlike with an IRA). Online banks usually provide higher interest rates, although transfers take two to three business days. Meyer has a savings account with INGDirect and loves it: “A two-day transfer is more of a commitment, so I have to really think about it before I make that decision.”

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This article was written by Ocean Gildee for The Real College Guide and is made available to Parents Countdown to College Coach through a partnership with The Real College Guide.

college costs, financial aid

College Helper #4-Jeff Sheely

Even though Christmas has passed and we’re thinking about New Years, I’m continuing my College Helper series because my decorations are still up! And…there are plenty more helpers to add to the list.

Today’s College Helper is Jeff Sheely of Overture Marketplace (who looks quite spiffy in his elf attire). I can’t say enough about the help this guy provides to students and parents of college-bound teens. His “Free Guide to Smart Borrowing” is a must read for every family. His blog is jam-packed with useful information about loans, making wise financial choices, and budgeting during college.  His site is not just another site peddling student loans. It’s a site dedicated to helping parents understand the often overwhelming loan process.  It provides the comparison tool that helps students choose which one is best for them. In fact, it’s the only comparison tool that shows students the actual rates and terms they’ll get from the lenders – everyone else shows “as low as” rates that can be very misleading.

If you’re a parent of a college-bound teen, bookmark Jeff’s blog, his site, and follow him on Twitter and Facebook. He’s a stand up guy offering you the best information about loans to help you make an informed decision.

college costs, scholarships

Create-A-Greeting-Card Scholarship

When I come across a scholarship that doesn’t require an essay, I like to pass it along to my parent readers (who hopefully will pass it along to their college-bound teens!). If you have a teen (14 or older) interested in graphic arts, art, or even photography, this $10,000 scholarship could be a big help toward the cost of college.

Here are the rules:

  • Submit original artwork, computer graphic or photo for the front of a greeting card.
  • Submissions accepted from March 17, 2010-January 15, 2011
  • Monthly winners will receive a $75 Amazon gift card
  • Must be 14 years or older and enrolled in high school or college

Check out the past winners and applicants for a good idea of how the contest is judged.

Here’s the official Scholarship page link:

The 4th Annual Create-A-Greeting Card Scholarship

college costs, college planning, parenting, Uncategorized

That all-important "money talk"

money talk
Image by StockSnap from Pixabay

It’s never too early to talk to your teens about college costs and what is expected of them once they take that much anticipated journey. If they understand the family’s financial situation and know what they will be expected to contribute towards college costs, they can start planning ahead by working dur thing the summers and saving (Note: just make sure they put those savin

According to a recent article in the Sacramento Bee about talking with your kids about college costs, kids are acutely aware of their need to contribute :

Despite the continuing cloudy economic forecast, one thing is crystal-clear: College costs continue to climb. And it’s made many students acutely aware. In a recent Fidelity Investments online survey of U.S. high school seniors, a majority said saving for education was “overwhelming.” Good news for parents: 94 percent of students were willing to pay for at least some of their college costs; 56 percent of those said their share should be half.
When having the conversation, however, make sure it’s just that–not a lecture. Approach it as a collaborative discussion and use this as a start to helping your teen understand the importance of budgeting and “needs vs wants”.  Here are just a few bullet points highlighted in the above mentioned article:
  • Start off by making sure your teen knows what a “need” is and what a “want” is in relation to college costs. For some teens, all wants are needs. This is the time to nail the definition down and clarify it in their minds.
  • Decide just who will be paying for each college expense. Every family is different but it’s important to make this clear from the very beginning so that there won’t be any surprises.
  • Use a budget worksheet and understand ALL college expenses. Don’t just assume that tuition, room and board will cover it.

When your teens contribute to the costs of their education, they will be more invested in their success. They will also learn valuable budgeting lessons that will stick with them past college and into adulthood. You’re doing your teen a disservice if you don’t involve them in the college financial discussions. They need to be active participants in the decisions and also play an active part in paying for that high-cost college education.

Many of the college debt disasters in the news recently might have been avoided if the parents had sat down with their teens and had the “money talk”. Don’t let your teen walk across that stage at graduation and be clueless as to how to budget and be a financially responsible adult. It’s your job as a parent college coach to prepare them for a financially stable future.

If you liked this post, you might also like to read:

college costs, college planning, financial aid

Understanding SAFRA



The college tuition system has been turned upside down now that the Student Aid and Fiscal Responsibility Act (SAFRA) is law. The Student Aid and Fisc-huh?!?

SAFRA is legislation President Obama tacked on to his infamous health care reform bill.

“The White House succeeded in not only getting the health care bill passed, but in making a huge change to the college loan system,” says Eric Yaverbaum, education expert and author of Life’s Little College Admissions Insights. “It’s gone largely unnoticed because it’s seemingly unrelated to the blockbuster changes in the health care industry.”

There’s been some controversy surrounding the issue of combining student aid reform with the seemingly unrelated matter of health care reform. But political views aside, let’s see how SAFRA affects students:

No. 1: You’ll get loans directly from the government — without a middleman.
While some schools have participated in the Federal Direct Loan Program since its inception in the early ’90s, SAFRA requires that all federal student loans now be originated through the U.S. Department of Education. This means funds come directly from the federal government, which provides the loans at a low interest rate.

“It’s so advantageous to students,” says Yaverbaum. “My daughter is about to enter her freshman year, and as a parent I couldn’t be more excited about it. College students are really going to benefit. Paying back college loans kills kids forever. Now it doesn’t have to be such an awful experience.”

Your credit score and employment status are not factored into your application for a direct loan … unless you have extreme adverse credit (say, your car got repossessed or you’re more than 90 days past due on that Urban Outfitters account). If you get denied, you can appeal or get a qualified co-signer.

No matter where you are in the borrowing process, visit StudentLoans.gov to find out if you qualify for one of the four types of Federal Direct Loans:

1. Federal Direct Subsidized Stafford Loans are based on financial need. The government pays the loan interest until you’re out of school.

2. Federal Direct Unsubsidized Stafford Loans are not need-based, and students are required to pay all interest charges.

3. Federal Direct Parent PLUS Loans (“PLUS” stands for “Parent Loans for Undergraduate Students”) allow parents to borrow money to help pay for their child’s education.

4. Federal Direct Graduate PLUS Loans offer the same terms as Parent PLUS for graduate and professional-degree students.

No. 2: You can consolidate loans you already have.
Federally guaranteed student loans will no longer be made by private lending institutions through what many of you already know as the Federal Family Education Loan (FFEL) Program.

What to do if you have an existing FFEL loan? For a one-year stretch — from July 1, 2010 to July 1, 2011 — current students who have FFEL loans can roll those into the Direct Loan program. The benefit is that you’ll only have to deal with a single lender (the Direct Loan Servicing Center) which means paying one monthly payment for all loans. Plus, your minimum monthly payment on a consolidated loan may be lower than the combined payments for FFEL loans.

No. 3: You’ll pay back less per month (and overall) and be done in fewer years.

Carrie Meyer, a rising senior at Ohio State University, has had to rely on three loans to cover her college tuition over the years: federal subsidized, federal unsubsidized and a personal loan. Meyer, a hospitality management student who currently works part time, still worries about paying off her loans after graduation: “With what I want to do, you don’t start out getting a big salary.”

Direct Loan borrowers can choose from several friendly payment plans, depending on needs — and you can switch to a different repayment plan if your situation changes. Beginning in 2014, the Income Based Repayment option will cap monthly loan payments at 10 percent of income and forgive remaining balances after 20 years of repayment. Sound like a lot? Actually, this is a major improvement from the current terms of capping repayments at 15 percent and 25 years, respectively.

No. 4: You could save big-time on loan payments if you go into public service.

Public Service Loan Forgiveness provides incentive for students to enter into full-time public service employment. The program forgives the remaining balance of a Direct Loan after a borrower has completed 120 monthly payments (that’s 10 years) while employed full time in public service. This includes government jobs, military service, safety professions, law enforcement, health care, social work, legal advocacy and some teaching positions.

No. 5: Maximum Pell Grant amounts will increase with inflation.

While SAFRA does not change the process for applying for federal grants, it does increase the amount of money awarded through the ever-popular Pell Grant program, which provides financial aid to low-income undergraduate students. For the 2009 to 2010 school year, the maximum Pell Grant was $5,350. The max will be upped to $5,550 for 2010 to 2011 and will gradually increase based on inflation costs beginning in 2013.

Students interested in applying for aid should complete a Free Application for Federal Student Aid at Fafsa.ed.gov or call 1-800-4-FED-AID. Keep in mind that this is not a one-time thing — students who want to be considered need to apply for aid for every school year, so it’s important to stay on top of application procedures.

A recent report released by the College Board found that millions in financial aid are left untouched by community college students. In the 2007 to 2008 academic year, 58 percent of Pell Grant-eligible students who attended community colleges applied for federal financial aid, compared with 77 percent of eligible students at four-year public institutions.

No. 6: Community colleges and minority schools will get big bucks for improvements.

Says College Board President Gaston Caperton: “Community colleges are a critical part of the education system, serving nearly half of all undergraduates in the United States.” The terms of SAFRA reflect this sentiment, as $2 billion is being committed to improving educational programs and updating facilities at community colleges. In addition, SAFRA has earmarked $2.55 billion to be invested in historically black and minority institutions.

Talk It up!

What do you think about SAFRA and its impact on the college student aid system?

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This article is by the editors at The Real College Guide. This article is made available to Parents Countdown to College Coach through a partnership with The Real College Guide.

college costs, college planning, financial aid

A Review: Shrinking the Cost of College

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Today I will be reviewing Lynn O’Shaughnessy’s new book: Shrinking the Cost of College–152 ways to cut the cost of a bachelors degree.

Lynn O’Shaughnessy,  is an author, a college blogger and speaker. She writes about college strategies for TheCollegeSolutionBlog and CBSMoneyWatch. She gives presentations about college strategies for schools, companies and financial advisory firms.  Lynn also wrote The College Solution, which is an Amazon.com bestseller.

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Using facts and figures, Lynn explains clearly and simply where college money comes from and how to maximize your efforts to get the most money for a college education.

In the introduction of her book, Lynn states:

Billions of dollars of aid are available to students who attend college. About two out of three full-time college students receive grants, otherwise known as scholarships, to attend school. At private colleges, a whopping 82% receive scholarships…Most people look in the wrong place for help when they begin contemplating the looming college tab.

Her book systematically explains how the system works and how every parent can arm their arsenal of knowledge to help find and maximize the money that is out there. At the end of each chapter is a “To Do List” to point you in the right direction and help you gather all the information necessary to make the best financial decisions. Each chapter provides tips and “bottom line” information making it easy to apply and carry out each step in the process.

Lynn explains state grants, government grants, and private college scholarships. Her explanation of financial aid and how it works makes it easy to understand the most complicated of formulas. She explains where to find the data and how to analyze it to find the colleges that will provide the maximum financial aid to your college-bound teen. As a parent, this one tip alone will make the college application process less stressful and help to ease the college sticker price fears.

And finally, she explains the financial aid award letter and what to do when the letter arrives; walking you through how to analyze the award and how to handle an appeal for more money.

Here are just 10 tips from the book that will help you shrink the cost of college:

  1. Learn which 60 schools offer the best financial aid packages.
  2. Discover where you will find the biggest source of scholarship cash.
  3. Find out why 82% of students at private schools receive merit scholarships and how your child can.
  4. Learn why college sticker prices are meaningless and what that means for you.
  5. Understand how teens can win academic scholarships despite mediocre SAT/ACT scores.
  6. Get the list of 800+ colleges that don’t care about test scores.
  7. Discover how to attend out-of-state public universities for in-state prices.
  8. The most expensive colleges can be cheaper than your own state universities.
  9. You can make $200,000 and still qualify for significant need-based aid at pricey colleges.
  10. Students can win college money by using geography.

Every parent should grab a copy of this Ebook to add to their arsenal of college information. You can also chat with Lynn live on Twitter during an upcoming #CollegeChat June 1 at 6PM PST.

college costs, college planning, parenting, Uncategorized

Campus Dough: A Smart Spending Alternative

When my daughter was in college, she was inundated with credit card offers: in the mail, on campus, and via telephone. During freshman orientation, they signed her up for a local checking account and accompanying credit card on the spot. I have to say, at the time it was convenient and easy. But looking back, that one credit card led to debt and made it easier to sign up for more. After graduating from college, she had accumulated some hefty credit card balances due to the convenience of using those cards.

University Parent Media, seeing the need for smart spending alternatives to credit cards, has partnered with StorValue and created a program for college students that offers two amazing benefits: controlled spending and cash back rewards. Campus Dough, a low-fee, reward-filled prepaid debit card, provides unmatched benefits for students and their families. Campus Dough gives collegians shopping, restaurant discounts and a new way to manage money through virtual banking and online tools. Parents can use Campus Dough to help ensure security and responsible spending.

Here are some appealing benefits for both parents and college-bound teens:

  1. They can arrange for direct deposit to their card from their jobs on campus; eliminating check cashing fees and wait time.
  2. They can personalize their card with their favorite image or photo.
  3. Campus Dough allows them to manage their account, transfer funds and pay bills on their smart phones.
  4. They earn a percentage of each transaction with cash back rewards; and if they follow Campus Dough on Facebook or Twitter, they can take advantage of special offers.
  5. They may find they no longer need a checking account after using this card, eliminating high bank fees.
  6. Their colleges also earn rewards.
  7. Parents can transfer funds to the card by linking to their checking accounts.
  8. This is an effective method to control spending.

According to Campus Dough, “the more dough you spend, the more dough you earn, AND the more dough you SAVE!”

Take some time today to visit their website and watch the video presentations on how the card works.  Once you do, I’m sure you’ll see the benefits of this card and sign up for one today. It’s the smart way to help your college-bound teen learn about budgeting, spending and the benefits of graduating with good credit and minimal debt.

college costs, college planning, financial aid, scholarships, Uncategorized

$2000 "No Essay" College Scholarship

As I stated last week, I love to find scholarships that DON’T require an essay. This week’s scholarship is sponsored by College Prowler.com and it’s a NO ESSAY scholarship. That’s right! All you have to do to be entered in the MONTHLY drawing is complete a short survey on their website and be a current college student or planning to enroll in college within the next 12 months.

The monthly contest begins on the first day of the month, and ends on the last day of every month. You may have one entry per month. It’s SUPER EASY and ANYONE CAN WIN!

Send your college-bound teen to CollegeProwler.com each month for a chance to win a $2000 scholarship. You might as well leverage ALL your opportunities for that FREE money!

college costs, college planning, scholarships

Frame My Future Scholarship

frame-my-future-scholarship

I’m always on the lookout for scholarship opportunities for college-bound teens. And when I find one that doesn’t require an essay, I’m ecstatic. Why? Because there is always that student out there that is loaded with creativity, but not the best wordsmith.

Frame My Future Scholarship, sponsored by Church Hill Classics, asks applicants to “upload an original creation that shares with us what you want to achieve in your personal and professional life after college.  The main guideline is that your creation must be submitted within one image, in a JPEG format.” This allows for creativity to abound because images can be photographs, collages, a scrapbook page, a poem–just as long as it’s a single JPEG image that can be uploaded.

This year’s scholarship contest is coming to a close, but there’s a link on their site to VOTE for one of the top 24 finalists (give these creative college-bound teens some votes) AND a link to  sign up to receive information on next year’s scholarship. What could be simpler?

As always, I recommend you keep a scholarship file (either online or in a folder) with all your scholarship finds so that when the time arises to apply, you won’t forget about a single one!

Kudos to Church Hill Classics for coming up with this unique scholarship!

college costs, college planning, financial aid, scholarships

Paying for College? Your Financial Options

paying-for-collegeCollege isn’t cheap.  My College Guide has been saying that for years – 20 years to be exact!  But don’t let a tiny matter like cost take your college bound hopeful off the college track!  You should know that, when it comes to paying for college: you’ve got options.

Federal Loans – The Free Application for Federal Student Aid, or FAFSA, could send free college aid your family’s way!  No matter what your financial situation may be, you and your teen should fill out the form, online or mail-in.  Circumstances change – and colleges often require a completed FAFSA in order to consider your son or daughter for college-specific loans and scholarships!

Work — Study Programs — Sometimes nicknamed “self help aid” work-study programs are often provided by the college your teen actually wants to attend.  There is a Federal Work-Study Program and state programs as well.  It’s one way that your teen can help pay their way through college – and gain a little life experience in the process.

Grants and Scholarships — Simply applying to college will make your child eligible for some scholarships sponsored through the school. Of course, many scholarships are merit based. But, even if your college bound teen isn’t at the top of their class and the last sport your child played was tennis on the Wii – with the right scholarship or grant, lack of athletic or academic achievement may not matter.  There are scholarships and grants out there to fit every student: no kidding.  Your son or daughter can find free money to match their ethnicity, intended college major, religion, SAT scores, hobbies, and then some.  Many colleges have their own specific scholarships and/or grants that cover a range of abilities and majors.  To get started, have your teen sit down with their high school guidance counselor or surf the web for free money that fits!

Student Loans – There are various loan options: state, federal, and even loans from your child’s choice college.  Loans do need to be paid back and there will be interest tacked on but repayments are very often deferred — at least until your child completes their college career.  It’s good to know that when all else fails – there is still an option!

My College Guide has provided free college info with a 100+ page annual magazine for high achieving high school sophomores for over twenty years.  We are rapidly expanding online – find us on Facebook and Twitter and say “hello!“