Category Archives: in the news

College Debt = Higher Tuition and less Merit Aid

The Wall Street journal posted an article today, “Tough Times for Colleges–and College Towns”, about the tough times that colleges are facing.

The outlook isn’t good. Bain, which markets its consulting services to universities, and Sterling Partners, which invests in education companies, examined the balance sheets from 2006 to 2010 of schools in their report. They found many schools operating on the assumption that the more they build, spend and diversify the more they will prosper. They have become overleveraged, with long-term debt increasing at an average rate of about 12% a year and average annual interest expense growing at almost twice the rate of instruction-related expense.

Schools have been trying to plug the gap by jacking up tuition at rates that aren’t sustainable. The result is a fiscal hurdle that dozens of second- and third-tier public and private schools won’t be able to clear. Hundreds of schools—including some of the most prestigious institutions in the country—have tightened their belts.

It looks like the colleges are struggling, much like the students and families. Unfortunately, you know that the financial problems that colleges are experiencing will be passed along to the students by either tuition hikes or reductions in merit aid. That is not good for students and their families, especially the ones who make too much to quality for need-based aid.

What does that mean for this year’s crop of seniors? You better investigate the financial outlook of your college choices carefully and do some digging on their past merit-aid distributions over the last several years, especially if you are counting on that to pay for college.

Continue reading College Debt = Higher Tuition and less Merit Aid

Does your student hate math?

College prep doesn’t start junior or senior year when your student starts preparing for the college application process. It ideally starts in middle school when parents and students begin to think about the future and ask questions about the student’s readiness for college. It’s not surprising either that students tend to steer away from the difficult majors, especially those requiring math.

According to survey results released recently by the Lemelson-MIT Invention Index, students see barriers to pursuing STEM (science, technology, engineering and math) degrees. This is indeed cause for concern since America is behind other countries in the number of students studying and entering these professions. According to an article in the Huffington post:

Sixty percent of respondents ages 16 to 25 to the Lemelson-MIT Invention Index, which seeks to gauge innovation aptitude among young adults, named at least one factor that prevented them from pursuing further education or work in science, technology, engineering and math fields (known as STEM). Thirty-four percent said they “don’t know much about these fields,” while a third said “these fields are too challenging.” Twenty-eight percent said they weren’t “well-prepared in school to seek out a career or further … [their] education in these fields.”

Alleyoop

Alleyoop, a college readiness network for students and their families, is addressing this issue by providing help in these specific areas:

What is College Readiness?

What does college readiness mean to us? It is so much more than getting accepted. An astonishing five out of six middle and high school students will not succeed in college. The cost in terms of lost potential (and tuition) is huge. College readiness is our mission, and it is our belief that it starts with mastering math.

Why Math?

Teens who master math are more likely to be successful in high school (and success in high school leads to success in college). We conducted dozens of parent and teen interviews and one theme was persistent – teens need help with math. Alleyoop offers teens the ability to practice their subject of choice at their own pace, whether they are struggling or just want to get ahead. Soon we’ll be adding virtual college guidance, English curriculum and career exploration!

How Do We Prepare Teens for College?

We are here to help teens succeed in school now and college later with our personalized learning plans, step-by-step math videos and one-on-one tutoring. We recommend just the help teens need, exactly when they need it. Alleyoop is structured as a game, with missions (a learning plan) built around achievements and Yoop rewards. We are teen tested, partnering with teens to build an environment that reflects how they like to learn. It’s empowering, it’s relevant and it’s a game.

Math Doesn’t Suck

Danica McKellar is a New York Times bestselling author, internationally-recognized mathematician and advocate for math education. A summa cum laude graduate of UCLA with a degree in Mathematics, Danica has been honored in Britain’s esteemed Journal of Physics and the New York Timesfor her work in mathematics, most notably for her role as co-author of a ground-breaking mathematical physics theorem which bears her name (The Chayes-McKellar-Winn Theorem).

Danica has written a book, Math Doesn’t Suck, to help middle school students (especially girls) realize their math potential, even when they think it might be difficult. An excerpt from her book explains her motivation:

I was terrified of math.

I remember sitting in my seventh grade math class, staring at a quiz as if it were written in Chinese—it might as well have been a blank sheet of paper. Total brain freeze.

Nothing made sense, I felt sick to my stomach, and I could feel the blood draining from my face. I had studied so hard, but it didn’t seem to make any difference—I barely even recognized the math problems on the page.

When the bell rang and my quiz was still blank, I wanted to disappear into my chair. I just didn’t want to exist.

If you had told me that ten years later I would be graduating from college with a degree in mathematics, I would probably have told you to get your head examined.

As it turns out, though, no head examination necessary! I did in fact develop a love of math through the eighth grade and into high school, and made up tons of cool tricks and ways of remembering things along the way—tricks that I’m now going to share with you in this book!

Does your student hate math?

If you have a student that hates math or says they don’t understand it, perhaps it’s just because they haven’t been educated properly or found the right tools and explanations to help them succeed. Alleyoop and Danica McKellar’s book might open the door and lead them to pursue a STEM degree in college. At the very least, these tools will help prepare them for college by improving their math skills.

 

Obama’s solution to help student loan borrowers

I received this email from the Institute for College Access and Success. It was a press release issued on President Obama’s speech yesterday.

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Yesterday the Obama Administration announced important and timely new steps to help struggling student loan borrowers.  We applaud the Administration’s steps to make more federal loan borrowers aware of Income-Based Repayment and to provide additional repayment relief for up to 1.6 million current students, including a lower monthly payment cap and loan forgiveness after 20 rather than 25 years of responsible payments.

IBR has already helped nearly half a million borrowers lower their payments and avoid default, but many more borrowers are struggling to keep up with their payments in these tough economic times and could benefit from IBR and the proposed Pay-as-You-Earn option.

By encouraging more borrowers to convert their bank-based federal student loans to more cost-effective Direct Loans, the changes announced today will also help more people qualify for Public Service Loan Forgiveness. Those working for a public or nonprofit employer could see their remaining debt forgiven after just 10 years of payments. Borrowers with bank-based federal loans must already convert them to Direct Loans for their payments to qualify for Public Service Loan Forgiveness.

The Administration took two additional steps to help students and families decide where to go to college and how to pay for it.  The new model financial aid disclosure form, or draft “shopping sheet,” is designed to make it easier to compare the real cost of different college options.  The new Student Debt Repayment Assistant will help current borrowers with both federal and private student loans, as well as those about to enter repayment, better understand their options.

With these changes on the way, it’s more important than ever to make sure that the millions of borrowers who could benefit from IBR know it’s out there. With the class of 2011 about to face their first student loan payments, there’s no time to waste.

IBR has been available to borrowers since July 2009. For more about how IBR and Public Service Loan Forgiveness work and how to apply, see our consumer website:www.IBRinfo.org.

For more on the Obama Administration announcement, please visit the White House website.

Parenting responsible students

If you’re like me, you’ve been watching the news coverage of the Occupy Wall Street movement. I know it’s a very volatile subject, but I came across this post on Facebook this morning by an anonymous student. I have to say, his or her parents must be VERY proud:

If you don’t want to reach for the glasses, here is the text of his statement:

I am a college senior, about to graduate completely debt free. I pay for all of my living expenses by working 30+ hours a week making barely above minimum wage. I chose a moderately priced in-state, public university. I started saving money for school at age 17. I got decent grades in high school and received two scholarships which cover 90% of my tuition. I currently have a 3.8 GPA. I live comfortably in a cheap apartment, knowing I can’t have everything I want. I don’t eat out every day, or even once a month. I have no credit card, new car, iPad or smart phone–and I’m perfect OK with that. If I did have debt, I would NOT blame Wall Street or the government for my own bad decisions. I live below my means to continue saving for the future. I expect nothing to be handed to me, and will continue to work my a** off for everything I have. That’s how it’s supposed to work. I am NOT the 99% and whether or not you are is YOUR decision.

At some point, we ALL have to claim responsibility for our actions. If you want your student to become an independent responsible adult, teach him that all actions have consequences and that he always has a choice. That is how to succeed in parenting responsible students.