Yes, you read this right, Antioch College in Yellow Spring, Ohio, is waiving the tuition for all its students, who enroll in the next three years.
This private liberal arts college is willing to give you r student a full-ride tuition scholarship for four years? The value of the free tuition for the current year is $26,500. The scholarship, based on that price, makes each scholarship worth at least $106,000.
It gets even better
Some students, who file financial aid applications, will capture an even greater price break. Qualified financial need based students may get to skip the room and board charges or pay a reduced price. This is very nice when you consider Antioch's room and board is currently $8,628.
Why is this university doing this?
Well, Antioch actually closed its doors in 2008. Rather sad for a college which was originally founded by abolitionists in 1850.
This was a result of bad management decisions and other problems forced them to close their doors. However, now the alumni have stepped up with tremendous financial support allowing the school to reopen.
In 2011 Antioch welcomed 35 students into its inaugural freshmen and it hopes to welcome another 65 to 75 students in the fall. The school's goal is to have about 300 students attending the school by 2015.
What Can You Get at Antioch?
One of Antioch’s strengths in the past was its work cooperative program and it appears that this valuable program is back. Through this program all students are provided with numerous work opportunities during their four years that include local, national and international experiences.
Currently the school offers 12 areas of concentration ranging from environmental and health sciences to languages and social sciences.
Here is a snap shot of the academic profile of the first class:
Students had an average unweighted high school GPA of 3.56 and an average ACT score of 27, which is roughly the equivalent of a 1250 on the SAT.
If you're a high school senior, there is still time to apply! Antioch's admission deadline is Feb. 15.
In my last post,” Is a college education still worth the price?” I talked about some of the college majors that do not have a very good employment outlook. In this article I will discuss why many colleges and universities offer these majors knowing there is little demand in the workplace for these majors.
Traditionally the purpose of a higher education was to develop the scholarly skills of the student. For these scholars the university was a place of refuge from the world wherein to explore and develop their intellectual pursuits.
Those days have long passed and what students and their parents are looking for is for the degree earned to be more than just a scholarly pursuit. The degree needs to provide job opportunities.
Sadly, many universities are missing the mark and instead placing their emphasis on facilities and amenities rather than on the economic utility of the degrees they confer.
There are many campuses that are filled with cutting edge facilities that are only slightly related to learning. I am talking about, first class health and workout facilities, luxurious dinning commons, and top of the line sports facilities. Of course, there is nothing wrong with these amenities as long as the basic learning is not sacrificed.
Why is this happening
First, students are having a hard time completing any type of degree and universities do not want to lose the dollars those students bring.
For example, in a recent study entitled, “Academically Adrift” reported on a large sample of students attending 29 American four year colleges. The results showed that 36% of the students had no gains in learning in their four years.
This is alarming especially when we consider that 40% of those who begin a four-year program do not graduate. By the way, this statistic doubles when we look at those attending a junior college.
Secondly, a report in The Economist showed U.S. government statistics revealing that U.S. High school seniors’ proficiency scores for science, math, reading, and writing all declined between 1992 and 2005.
What this all means is that many universities are “dumbing down” their curricula in order to maintain their enrollment levels. Students are also choosing the easiest classes available in a path toward a degree. Many students simply think that a “degree is a degree” and some employer will offer them a job simply because they have a degree.
However, as the news reports show, there are many high-skilled jobs that go unfilled because there are no qualified applicants. In other words, today having a college degree does not mean anything unless that person has the skills and abilities employers are looking for. No longer do employers place any value on a person just having a degree. They must have the necessary skills to do the job or they are no better off than someone who never attended college.
Today, more than ever planning for college is critical and involves a lot more than just picking a name brand university. Not all universities are good at everything and not all universities are a good fit for your student.
When I meet with a parent and their student we choose the best fit and best program based on what is unique to the student. I bring the most comprehensive and current information about each campus and what it “really” has to offer. At times, some of the so called, “best colleges” may actually be the worst choice for your student.
Armed with this information parents and students are able to make the best choice that will provide them with best economic utility for their efforts and money. You are invited to come to my next workshop where I reveal some of the latest information. You can find more information on these college workshops by clicking here.
In the next post we will continue to explore the future trends of higher education.
It goes without saying that the last unemployment numbers are anything but encouraging. Despite slight improvements they are at historically high levels.
Recently, there have been reports coming out demonstrating how recent graduates are not able to get jobs and only have large debts looming over their heads. The lack of a job is a major problem especially when student loan payments begin nine months after graduating.
All majors are not the same
A new study done by Georgetown University was able to show that the choice of a college major plays a key role whether you will find a job after graduation
So what was the worst major according to the report?
It appears that architecture with 13.9% unemployment takes the top spot. This makes sense as the construction and real estate are in an all-time slump. The study also highlighted the following majors as the riskiest for those entering the current job market.
- Fine Arts
- Fashion Design
- Anthropology
- History
- Graphic Arts and Design
- Agriculture
These latest numbers do not take away from the academic value of these majors. There is no doubt that a degree in architecture is challenging and requires a lot of effort from the student. However, currently the market place is not rewarding them for their efforts.
What this and other studies are showing us is there are a lot of traditional college majors that may not have a direct employment possibility due to current market trends. This can be especially disconcerting when a student leaves with over six figure debt that needs to be paid back shortly.
The Take Away
Here are two points that this and other studies share in common:
Today, more than ever it is important for prospective college students and their parents to have the real world facts about attending college. This means not only finding the right college for your student, but also the best major.
Secondly, it is critical that parents use all the tools at their disposal to substantially lower the cost of college. The good news is there are a lot of tools readily available for parents and students to utilize that will lower the cost of attending college.
When you work with College Planning ABC, we make sure that parents and students have the most current and up to date information about the major, school, and costs associated with attending college.
In this way parents and their children are able to get the very best deal for their efforts. Our parents and students have a well-defined plan of action that increases the success of getting into the best colleges in the nation while decreasing the typical costly tuition.
In the next posting we will continue to look at some of the trends in education that will impact the value of a college education and what you can do to avoid the pitfalls. In the meantime, you can read the Georgetown University study by clicking here.
Many times at my workshops people will come up and ask me questions about 529 plans. I totally understand that there are many questions especially due to the amount of misunderstandings out there about this program. So, below is a list of the most common questions I get and the answers.
1. Do I have to use the money at a state school?
Not necessarily. Your 529 Plan account assets can be applied at virtually all accredited
colleges and universities in the United States as well as to other eligible foreign institutions.
2. What expenses can I use the money for?
You can use the funds for qualified higher education expenses like tuition, books, etc.
3. How and when can I take distributions from the account?
Anytime you need it for your school related expenses. Now, please take note, distributions for non-qualified expenses may incur federal income tax and a 10% federal penalty tax. Qualified distributions include money for tuition, books, etc.
4. What about room and board? Good question. Here’s an answer that could help according to IRS Publication 970, it is written there that qualified education expenses are fees that are paid to the institution as a condition of enrollment or attendance. So, a lot will depend on what the institution has noted as a condition of enrollment.
5. How do I withdraw funds from my 529 Account, and can I take loans against my 529 Account?
All you need to do is simply fill out the College Investing Plan Distribution in PDF form. Indicate the recipient or who is going to receive the money. You could be a parent who wants to send it to your child or you can be the student yourself requesting that you directly receive it. Now, please note, you cannot take a loan out against the 529 account.
TIP:
Always keep a record of your payments so you won’t have a hard time filing for your tax returns.
6. How about if my child earns a scholarship?
The amount of the scholarship award from your 529 Plan can always be withdrawn without worrying about the penalty; but remember that other taxes may still apply.
7. Will investing in 529 Plan affect eligibility for financial aid?
Based on the Expected Family Contribution calculator (EFC), 529 assets may have a relatively small affect on Federal financial aid eligibility as they are considered assets of the parent (Participant). Moreover, accounts can be considered assets of the child (Beneficiary), such as a UGMA/UTMA account, are most likely to have a greater effect on the Federal financial aid eligibility in the EFC calculation. This is something that I always check and advise on for my clients.
This was just a brief overview and by no ways everything you need to know about a529 plans. For more information on how you can use this tool, and other financial vehicles to pay for college, contact me, Manuel Fabriquer, at (408) 918 3068 and let me save you thousands on the cost of college!
There is now a federal law that will increase the chance of getting college financial aid for families who will qualify upon application. This law will also help in offering grants to students who have plans of taking education as a course at the same time helping graduates to repay their student loans.
For Need-based Aid category also known as Pell grants, the news is that it will move up to a maximum of $ 5,400 annually for the next five years from its current maximum of $ 4,310. On the other hand, Stafford loans interest rates will drop by 3.4 % for the next for 4 years, which is half of the current rate.
For Loan Repayment category-
President Obama announced on Oct. 18 at the University of Colorado in Denver that college graduates would have an easier way to pay off student loans through the new “Pay as You Earn” plan.
The Pay as You Earn Plan, which was supposed to go into effect in 2014, will now go into effect in 2012 due to congress’s push by Obama. The plan will allow college graduates’ loans to not exceed 10 percent of the graduate’s discretionary income. After 20 years, any remaining debt will be forgiven, said Georgia Southern University’s Director of Financial Aid Division of Student Affairs- Connie Murphey
“Last year graduates (that) took out loans left college owing an average of $24,000. Student loan debt has now surpassed credit card dept. for the first time ever” said Obama in his speech addressing college students in Denver.
The old policy was that graduates had up to 10 years after they graduate, or leave school, to repay their student loans. College graduates also had to make payments of 15 percent, said Murphey.
The smaller payments will mean the payment time lasts longer, said GSU economics professor Anthony Barilla, Ph.D in economics.
“To the actual college graduate, if you kept their payments at 10 percent, that means they get to make smaller payments of their student loans and that also goes on for a longer duration, so there’s a plus and a minus to it,” said Barilla. “To the college graduate itself, it’s a longer duration of having to pay that loan.”
The college graduates that will not be affected are the students who received loans through private lenders such as banks and individuals, said Murphey.
“The ones that will not be affected is if students have a private loan through a lender, and a lot of students do. They go directly to a lender, they borrow money, it never comes through the school, it’s called a private loan,” said Murphey.
Moving on, the Public Service incentives category will help students in teacher-prep programs who are also committed to educate for four years after they graduate in the application for annual grants of $4,000 to cover the costs of going to college. Grants must be repaid in case they have decided to not pursue teaching.
Student borrowers can also have an incentive to go into a public position. This means that if they decide to work for a decade as a qualifying civil servant, the government shall then waive the loan balance of students to whose loan was provided directly by the government.
For more information on how your student can get money for college despite your income level, call me, Manuel Fabriquer, at (408) 918-3068. College Planning Abc, is dedicated to helping students find and get into the best colleges in the nation while saving you the most amount of money. Call today!
I was once told the most expensive advice is “Free Advice” . This advice appears to be alive and well today. Let me share a story of what just happened in my office.
I met with a family today that came to see me in my office to discuss college for their daughter. They are from a local high school in a more affluent area in the bay area.
The father wanted to discuss their odds of their daughter getting in at the top UC Colleges such as UC Berkeley, UC LA, and UCSD. He told me that they did research and discovered that the UC schools are no longer requiring subject exams for admissions. They were also told from their high school counselor that UCB actually declines students that take subject exams. (Totally Wrong!)
I was taken aback just a bit from this "Free Advice" but told him, that what he was saying is partially true. The UC colleges are no longer requiring these exams for admissions.
And Now The Rest of The Story....
However, let’s take a look at the logical thinking here about these colleges. Let’s discuss UC Berkeley, which is considered, “The Ivy of the public school system”.
I have worked with hundreds of students in the past years and I have yet to see any student get into UC Berkeley without taking the subject exams. However, it is true that this is the first year that this requirement has been eliminated from the admission requirements.
Last year there were over 50,000 applicants that applied to UC Berkley, since the UC system has decided to drop the subject test requirements.
Small Fish in Big Pond Situation
What do you think is going to happen to the amount of applicants that apply to UC Berkeley this year? The answer, there are going to be even more students applying. Why? Because many students will be thinking that they can get into UC Berkeley without taking subject exams.
This is exactly what the UC Systems wants; they want more applicants to apply to the college, simply because of money. Have you heard of,” Budget Cuts”.
If the UC system increased their amount of applicants by 10%, let’s assume all of the UC’s have 50,000 additional applicants. The colleges are not adding more seats to accommodate the increase in applicants.
They are already having a challenge getting the students out of college in a 4 year period. This means that there is going to be additional revenue of $,3,250,000 in application fees. This is a nice revenue bump by just stating they do not require subject exams.
The fact of the matter is that admission to these top colleges is going to be difficult because of the amount of applicants and competition. Good Luck to anyone if they think that getting to the TOP COLLEGES in the nation is now easier. The fact is All these colleges want to see students striving for more and to be more competitive in their Freshman Class.
The Bottom Line
I believe that students should continue to take the subject exams because I do not see how they are going to differentiate themselves from the rest of the admission pool.
Maybe you can prove me wrong and show me that you got your student into UCB, UCLA, and UCSD without taking the subject exams. Please show me, I would love to be proven wrong.
This would mean the top public schools are opening their doors to more students of lesser caliber, I doubt it! If anything, they are going to admit more families that can afford college and less of those who they have to give “Free Rides” or high financial need.
The colleges cannot admit every student that qualifies that has a need. They need more full-pay families to balance the admissions and financial aid for those who cannot afford the college.
Now more than ever you need the services of College Planning ABC to guide you properly to the college of your choice. Call me today and let me show you what is really possible.
It is official, both College Planning ABC and Manuel Fabriquer were featured in US News and World Report speaking on the subject of, "How to Get the Best Financial Aid Package".
Many times when news organizations like US News and World Report seek commentary on college planning, they turn to noted experts in the field. This is why reporter Kimberly Wetzel knew to call Manuel Fabriquer when writing this story.
Here is a link to the entire story which is full of good solid advice:
Get The Best Financial Aid Package
So, when you need to have the best college planning information go to where the news authorities go, call Manuel Fabriquer of College Planning ABC. You will get the very best and most current information.
I wanted to share this article with you on research of what was discovered about parents saving for college.
http://www.accountingtoday.com/news/Parents-Not-Saving-Childrens-College-Education-59511-1.html&hl=en&geo=us
I understand that it’s tough to save for both retirement and college for the average American family. I have kids myself and it’s really a discipline of saving something every month. Things are tough right now with what is happening in the economy and the stock market.
The article mentions that parents plan to do the best they can to pay for college but are hoping that they are going to fund college on scholarships, academic, and sports scholarships.
In my opinion, I think that parents really need to get help with this process. I think that parents are naive about this whole process and how much parents can actually afford for college. I also believe that parents do not understand how much the cost of higher education is going to cost the family. In California, the cost for a UC College is roughly $30,000 per year and the average family will spend at least $120,000 per student. Most families that I see have 2- 3 children, some savings but only enough for one child. Most families have enough for the first child coming into college, but when the next child comes into college there is a massive problem. The problem lies with cash flow and being able to fund college on a monthly basis. Many families have a budget to pay for a portion of college, but the budget definitely is off when the next student enters college. The trick to college funding is how to keep funding retirement without sacrificing and minimizing education for their children.
What to do? Come to one of my upcoming Free College Planning Workshops or attend a conference call. Check out www.collegeplanningabc.com for events .
I got this question today from a family that was considering my services.
A family comes into my office today for their free consult with me. I went through my general questions about the family and about the families needs. I quickly discovered that they have a major problem with funding the full amount of college. I realized that they have 2 children and only half of the amount for college. I mentioned that something was better than nothing. The bad news is that they would have to sell all of their investments to pay for their children’s educational needs.
I went through my analysis and made the discovery that I can show them how to deduct over $150,000 of educational costs, therefore saving them well over $50,000 in taxes. I also discovered that the student was less than 50 points away from being qualified for a $39,000 scholarship at a private college. The total potential savings for college could be close to $200,000 over the next 8 years of paying for college.
I know I showed them that a small investment in getting expert guidance through this college admissions, and college financial maze is going to be well worth it.
By: Mark McLaughlin,
Special to CNBC.com
College acceptance letters should be hitting the mailboxes of anxious high school seniors any time now. Once students choose their institution of higher learning comes the hard part: paying for it.
Financial aid, ranging from need-based federal Pell grants and student loans to privately-funded merit scholarships, can cover a big chunk of tuition bills. But filling in the gaps not covered by aid is equally crucial.
To keep a lid on expenses, Dan Landau decided to only apply to colleges close to his Bridgewater, N.J. home. By commuting to Fairleigh Dickinson University, holding down a part-time job, and graduating in three years, he saved over $20,000 on his bachelor’s degree while accruing no student debt.
“The path I took to save money on college is not for everyone, but there are ways to get a quality college education on the cheap,’’ says Landau.
In that spirit of frugality, here are five strategies for cutting your college bills.
1. Graduate ahead of schedule
With tuition alone averaging $7,020 at in-state public colleges and $26,273 at private schools, knocking a year or more off the traditional four-year degree is a sure way to shave costs. Here are a few ways.
Advanced Placement credits. High school students can get a head start by taking advanced courses or college-level curricula. At the University of Virginia, two-thirds of the 2010-2011 freshman class earned Advanced Placement credits, with recipients qualifying for an average of 19 credit hours. Existing undergrads, meanwhile, can cut short their time on campus by studying over summer school or adding online courses.
Advanced Placement exams. AP credits earned in high school often reduce the number of credits needed to graduate. Qualification standards vary by university, but students must typically score a 4 or 5 on each AP exam. To ensure college credit, students should list their desired colleges as test-result recipients when they register for exams. Courses offered by the International Baccalaureate program, a college prep curriculum offered in over 700 U.S. high schools, may also qualify for college credit.
CLEP tests. Students of any age can earn college credit in 33 subjects by taking College Level Examination Program, CLEP, tests given by the College Board. College senior Luke Macias of San Antonio said he credits CLEP tests for enabling him to stay debt free and on track for a degree in economics this spring from Thomas Edison State College.
Dual Enrollment: Students can enroll in college-level courses at community or four-year colleges through dual enrollment/credit programs that fulfill both high school and college requirements. Seventy-one percent of high schools offered these programs in 2002-2003, according to the most recent data from the National Center for Education Statistics. Dual enrollment courses are typically offered at reduced rates or at no cost.
Online Courses: The number of for-profit colleges offering online courses and degree programs has boomed over the last several years, making it vital for students to verify that supplementary courses will qualify for credit. College admissions officers recommend students vet online courses with their general or departmental adviser.
Summer School: Attending summer school can also boost credit hours. At schools like UCLA and the University of Virginia, out-of-state students save on summer classes by paying in-state tuition rates.
2. Earn income in college
Many students take on jobs in college to bridge expense gaps. Divya Bahl lived rent-free her last two years at Boston University by serving as a resident adviser in a student dorm. Manuel Fabriquer, a college counselor in San Jose, Calif., says RA positions save students at Santa Clara University $15,000 a year.
Professional schools and academic departments can provide leads on education and research-related jobs. Carnegie Mellon University’s Academic Development Office, for example, employs 140 students in tutoring programs. Career services and alumni associations, meanwhile, are a good resource for off-campus employment.
Brooke Kamenoff, a freshman at Northeastern University, plans to utilize her school’s co-op program to take time off to work and earn income for her five-year degree program.
3. Lean on Uncle Sam
The American Opportunity Credit, a tax credit for college tuition and fees, has been extended through 2012. Formerly known as the Hope Credit, it can reduce your tax bill by up to $2,500 per undergraduate.
Alternately, you can deduct up to $4,000 in education expenses per student from your taxable income. You must choose the credit or the deduction—tax credits are always more valuable than deductions.
To maximize tax credits, financial planners recommend paying for tuition and fees out of pocket and using 529 college savings accounts to cover other expenses ineligible for tax savings. Five twenty-nine distributions are tax-free when used for college expenses such as room and board.
Having a child in college can also extend the years he or she qualifies for a dependent exemption on your tax return. Exemptions normally phase out at age 19 but extend up to 24 for full-time students.
4. Stay close to home
Tuition rates for in-state residents at state universities are often higher than the cost of room and board. For students matriculating close to home, commuting to school can generate significant savings. If commuting is not an option, consider off-campus housing.
“We have found that the best way for us to cut costs was to have the kids move off campus,’’ says Corinne Connor of Montclair, N.J., who has one child in law school and another in college. “The combined rent and food costs are considerable lower than dorm and cafeteria costs.”
Community colleges have also become a popular destination for cash-strapped students. Annual tuition at a two-year community college averages $2,544, nearly two-thirds less than tuition at a residential four-year state school.
5. Borrow responsibly
After all other forms of financial aid are exhausted, students must turn to loans.
Today’s low initial interest rates for private student loans may look attractive, but you can avoid extra costs later by thoroughly researching your loan options.
Experts agree that families should max out federal Stafford and Perkins student loans, which feature low, fixed rates and flexible repayment features, before tapping private loans that tend to carry variable rates.
If you must take out a private student loan, shop around, as interest rates vary widely across providers. Based on recently quoted rates, Student Lending Analytics, a Palo Alto, Calif., lending consultant, calculates that students choosing the low rate over the high rate for a $10,000 student loan could save nearly $6,000 over 15 years. Paying loans off faster can also significantly reduce total cost.
Getting creative with your savings strategies can make paying for college less intimidating and allow your kids to attend their No. 1 choice, regardless of cost.