The college financial filing season is at our doorstep.  You can't put this off any longer.  In this rare opportunity, join Scott Anderson, eduLaunchpad's founder, for a very informative presentation and discussion about the FAFSA and college financial pitfalls that can cost you thousands of dollars.

Tuesday, January 8th, at 8pm EST, 5pm PST.

• Find out the common mistakes people make on their FAFSA that costs them money... lots of money.
• Learn what are the most important dates you need to pay attention to in order to maximize your financial aid dollars.
• Discover the methods used beyond just filing that can get you more money.
• And bring your questions.  Scott will be available to answer all your questions.

The cost for this webinar is $20.00.  Click "Buy Now" below.  Once the transaction is completed, you will be taken to the webinar registration page.

Are you back in the swing of the high school routine? If you (or your son or daughter) are a senior, it's go-time for college planning. One part of this big, confusing, and stressful puzzle is finding people to write your letters of recommendation for college applications. These are your champions in the eyes of college admissions officers and it's important to find the right ones.

Ideally, this process would have started toward the end of your junior year, but the very beginning of senior year is going to have to work. Start thinking of your teachers, counselors, employers, mentors or other adults that 1. know you well, 2. understand what makes you different, and 3. have seen your work habits, critical thinking skills, ambitions, and more first hand.

Here are 3 important things to keep in mind during the recommendation letter process:

1. Who should I ask to write my letter of recommendation?
Colleges like to see teachers of the big subjects, but this could change depending on the type of program your are applying to in college. If you are planning on applying to specific college programs like theater or a business school, it would make sense to get a teacher from one of those areas. Some colleges will require a recommendation from a core subject like math or english, however, so keep that in mind.

Most importantly, approach teachers who know you well and understand what you are capable of.

2. When should I approach them? 
Juniors: a few months before the end of the school year.
Seniors: now!

Teachers of juniors are inundated with requests to write college recommendation letters. Therefore, the earlier you can approach teachers the better. They could be writing a ton of letters and if you are toward the end of that, the quality of the letter could go down. Keep that in mind. If you do not give them enough time, you'll be negatively impacted in a few ways: first, the teacher will not have the time to prepare a high quality letter. Second, it's not fair to the teacher and that could subtly show through in the letter.

3. What information should I provide my teacher?
You should set up a meeting with your teacher to go over some things that will help them write a better letter.

a. Talk about why college is important to you
b. Talk about your goals
c. Let them know why you chose them
d. Share your resume of activities and achievements
e. Write down detailed instructions about colleges, application deadlines, forms, and addresses
f. Provide stamps and envelopes

Basically, you want to make this process as easy as possible for your chosen teachers. Not only will they appreciate this, but they'll also learn more about you and how you operate.

So it's time to get on it seniors! Get the game plan in place ASAP!

Can you hear the sarcasm in my voice?

What they have come up with is a "pretty" financial aid award letter.  I could have had a graphic design intern produce this in a day or two.  There's nothing unique about it.  There is nothing special about it.  And it still does nothing to address the real issue.

If the Department of Education really wants to help improve the transparency of college costs, they are going to have to do a better job than this.

In my career as an Ivy League admissions officer and college counselor, I’ve found that students who are happiest through the college admissions process — and with the end results — share some “best practices” that start in the beginning of junior year. Those common themes inspire this month’s checklist:

Keep Perspective

Relax! You are not behind. You can, however, start taking active steps now to make the admissions process as smooth as possible. Take a deep breath, and try to keep in mind that there really is a great college match for everyone.

Develop a Plan for This Year

Planning now will reduce anxiety later. Map out some key dates now before the pace of the year picks up. Devote a calendar solely to the college process. Decide when to tackle some of the bigger admissions tasks for this year. For example, plan to take the SAT and/or ACT at least once this year, as well as SAT Subject Tests, if they are required by the schools you’re considering. Take some time to review what each test covers, and decide how to prepare. Make a note of registration deadlines on your calendar.

Also, figure out when you will be able to visit colleges this year to block off the time and plan those trips well in advance. Aim to see many different types of schools at first (large, small, urban, suburban, etc.) to get a sense of what’s out there.

Find Out What Support Your High School Offers

The students who are most successful in the college admissions process are proactive and take advantage of the resources available to them. Don’t just wait for information to come to you: take the initiative and find out what services your high school provides to guide you through the college admissions process.

Ask how often you should expect to receive messages from your guidance office and how they communicate information. Make note of coming presentations on your calendar. Find the guidance office’s bulletin board, and check it often.

Thoroughly read e-mails and newsletters that counselors send, and pay attention when they make announcements. (Parents, this applies to you, too.) Too often, students have so many resources at their fingertips but fail to realize that until it’s too late to take advantage of them. Likewise, families often spend big money on college admissions services when they can get the same (if not better) information for free.

Also, when you meet with your counselor, go prepared with a list of updates about what you’ve been doing in regard to the college process, as well as a list of questions.

Reflect on Your Activities

Now that you’re halfway through high school, it’s a great time to reassess your extracurricular activities. When I worked in admissions and read applications, I loved to see students who were excited about what they did outside the classroom. Communicate that enthusiasm by taking on more responsibilities in the activities you love and by seeking to develop those interests to the fullest.

Set some goals for this year: Aim for quality and not quantity in your activities. Love the things you do, and take on more leadership in those areas. No time? Consider cutting back on one or two activities you don’t like as much to make time to pursue others in greater depth.

Keep the Focus on Academics

As you gear up for junior year and the new tasks it will bring, remember your studies still need to come first. The story that your transcript tells about you as a student will be the most important part of your college application. Also, working hard, meeting with teachers for extra help and developing knowledge of how you study and learn best will help make you a more successful college student.

Start to Research Different Majors

Take some time now to read about majors that sound appealing to you, and gain a sense of what’s involved when studying towards those majors. Most students change their minds about a major when they get to college (and that’s fine), but it’s still a good idea to start getting a sense of what’s out there. Your focus now should not be on choosing a major definitively but on learning more about your options. More information about majors and careers can be found online, like the College Board’s Big Future Web site. For more detailed career information, students often enjoy the Occupational Outlook Handbook.

Savor the Rest of the Summer

While I recommend you follow up on these action items, please also take some time while the weather’s warm and the days are long to enjoy a few more ice cream cones with friends, take a long walk at sunset and rest up to start the new academic year rejuvenated. Sure, it may be a busy year ahead, but you’re ready for it!  

If you’re a rising senior who plans to apply to college, you might be a little nervous right now. Then again, you might be avoiding the issue completely — and appalled that someone like me would intrude upon your summer. If you’re anxious, you’re normal, because you have a big year coming up. Your nerves indicate that you care. That’s good. College is worth caring about. On the other hand, if you’re ignoring the calendar, you’re passively saving a lot to do with less and less time to do it.

Here is some advice to keep you on track:

Do the Summer Reading

Over 30 years, the students I’ve seen get the best results out of the college process are the ones who take care of business one day, one class, one assignment at a time. They’re not flashy; they’re steady. When I coached lacrosse, I said, “Pick up the next groundball.” Little things add up. Stop texting, log off Facebook, turn off your cellphone — and read. Not the SparkNotes. The book.

Pick the Right Courses

Selective colleges often start their review with your transcript, and strength of program is the first criterion of selection. Make sure your final transcript will include four years of the “five basic food groups”: English, math, history, science and foreign language. If you substitute from elsewhere on the curricular menu, select a course of equal or greater rigor in an area that better suits your abilities and interests. Make sure senior year is at least as challenging as junior year.

Keep Testing Under Control

By now, I hope you know whether you like the SAT or ACT better. Focus on the exam that works for you; if you prepare well enough, you’ll be likely to receive your highest score on the first or second attempt. Take your SAT II Subject Tests, if you must, whenever you’ll know as much as you can. Then forget bubble tests. Your scores are what they are. Stressing won’t raise them. Say the Serenity Prayer. Go test-optional. Focus your energy on classes, activities, and applications.

Keep Extra-Curricular Activities in Perspective

Remember that the hyphenate is extra-curricular. Even if you are being recruited for a talent in athletics or the arts, you must find a good deal of time to hone that skill set. You are no good to anyone if you run yourself into the ground by trying to do too much. Breathe. Eat. Sleep. Chill now and then.

Start Your Applications

If you haven’t already done so, create accounts. Use the Common App. Invest increments of time early on: When you have a little time, fill out the simple stuff. When you have a little more, add your activities and work experiences. When you can carve out still more, start drafting your activity paragraph and essay. Start on the supplements. Good writing usually takes time. Accept advice. Show what you have to your counselor or best teacher.

Create a List of College Fits

Shop for value: Figure out the program, size, type, location, personality, and likely final cost of the colleges that best suit you. Then list colleges that you might get into, some that you should get into, and two that you will get into.

Make more decisions up front. Be realistic. Make sure you can cover the cost. I like lists of six colleges. I understand nine. Beyond that, you’re denying reality, deferring decisions, and making the spring harder, via too many rejections or too many offers. Save yourself time, angst, and your parents’ money.

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The 5 minute rundown of college finances.

Still stumped as to what to buy a graduate?  Maybe you already bought something and have realized "oops, that's really lame".  Don't worry, we're here to help.

1.  The Laptop Computer

A laptop computer is absolutely essential for college these days.  If your graduate doesn't already have one, then get them one.  Do not ponder, just get them one.  I am writing this on a MacBook Pro.  I've always been partial to Apple, and they are hard to beat.  Other great computer choices could include:

Dell XPS; MacBook Air; Apple iMac; Toshiba Portege; HP Envy

2.  Smart Phone

Kind of a jack of all trades tool anymore.  It calls, it texts, it takes pictures, it plays music, it streams video, it does it all.  Some good choices for smartphones include:

The ubiquitous iPhone (although I'd really wait until they roll out the 4G model); Samsung Galaxy Note (doubles as a small tablet); Motorola Droid (my Droid Maxx will run forever without recharging); and several others

3. Other Electronics

There's almost too many to list, but here are a few that will always be appreciated:

The iPad; Amazon Kindle Fire; Play Station Vita; Nintendo 3DS; Roku LT or Apple TV (video streaming direct to TV is taking over from cable or Dish); HP OfficeJet Pro (everyone will need to print that paper)

4.  For around the Dorm Room

Single Cup Coffee Maker (for when they aren't at Starbucks); alarm clock (you won't be there to wake them for that 8am lecture); a fan (not all those dorm rooms are air conditioned)

5.  The others

A tool kit; a computer lap desk; What Color Is Your Parachute for Teens (a book that helps them get past "I don't know"); a gold or silver coin from their graduation year (it will always have value); or the always appreciated iTunes card.

You're buying a car. You come across a stunning, brand-new Mercedes for $50,000. Next to it is a worn-out, used Jeep with 50,000 miles on it, for six times the price, or $300,000.

The choice is obvious, and it rests on a simple, driving principle that defines the free market: Price ought to be aligned with quality. But when it comes to higher education, that seemingly straightforward notion is thrown out the window. No one in their right mind would ever pay more for a car of lesser quality, and the same should hold true for a university.

Take my situation. I was admitted to both Brandeis University and Binghamton University. Graduates at Binghamton, on average, have starting salaries roughly 10 percent greater than their counterparts at Brandeis. Nevertheless, tuition at Brandeis is over six times the price at Binghamton.

Forgive my narrow-minded assumption that the sole purpose of attending college is to earn the greatest possible salary. There is no doubt that a college experience certainly has more to offer. But my guess is, if it were no longer the case that a college education lead to such profound economic benefits, most would stop attending.

Click here to read the rest of the article.

by Lee Bierer

The build-up was big, but boy, did he deliver. Robert Franek, Senior Vice President/Publisher at Princeton Review and author of “The Best 376 Colleges” and “The Best Value Colleges,” was recently a guest speaker at Myers Park High School in Charlotte. (Full disclosure: I sit on the Princeton Review National College Counselor Advisory Board.)

Notices of his upcoming presentation started appearing months ago. Interested students and families were asked to register online to reserve seats. Vicki Brunnick, counselor and scholarship coordinator at Myers Park, met him in February at a professional conference in Virginia and extended the invitation.

Franek is nothing if not informative, interactive, energetic and entertaining. He began with two simple facts: 1) it’s never been harder to get into college and 2) it’s never been easier to get into college.

He got everyone involved from the get-go. “Who here is concerned about getting into a good college?” All hands were are raised. “Who has fear or anxiety about the college admissions process?” All hands remained up. He suggested that everyone take a deep breath and he went on. “We’re all scared.”

In the Princeton Review “Hopes and Dreams” survey, everyone was united in their fear. According to the survey, the No. 1 worry for students is that they will get into the school of their choice but won’t be able to afford it.

Click here to read the rest of the story.

Stafford Loan interest rates are front line news this past week.  The President has been travelling to various college campuses trying to make hay out of the imminent increase in the subsidized loan rates from 3.4% to 6.8%.  And as if they were making a gut wrenching fund raising commercial for the Human Society using video of abused puppies and kittens, the politicos trot out images of poor college students just trying to improve their lives about to be cracked over the head by evil Congress critters with onerous rate hikes.  

Give me a break.  It was these same politicians who came up with these ridiculous scheduled rate hikes in the first place who are now decrying them.

Student loans are a very serious subject.  Student loan debt is one of the two most critical consumer crises our country faces today.  Unfortunately, student debt is a fact of life when going to college these days.  But students and families need to be wise about how to use debt.  Easy debt has made many college options appear far more attractive than they really are.  This easy debt is very tempting and can lead to very poor decision making.

At eduLaunchpad, our philosophy is simple.  Debt may be a necessary evil, but you should do everything in your power to minimize the debt before you have to borrow.  And when you do borrow, make sure it is in the most economical manner possible.

For more information on borrowing for college, CLICK HERE, and join us on our upcoming webinar.

by MEGAN MANNA

When it comes to the college application process, nothing strikes more fear in the hearts of students, parents, and counselors than the words “financial aid.”  FAFSA, grants vs. loans, award letters- I’ve seen students run in terror whenever these things are mentioned. And it is surely the scariest part of the application process, even more so than waiting to hear back from your first choice school. Because financial aid determines whether or a not a student can afford to attend that school if they do get in.

Fear aside, it is imperative for students and parents to not only file FAFSA, but to understand the college financial aid process in general. Our students at Pritzker have it pretty good- counselors help them every step of the way when it comes to financial aid. We walk them through the FAFSA, give them access to scholarship information and time to complete applications, and help them decode award letters (which are entirely too confusing). That being said, if the students and their parents don’t take the time to really learn about these aspects of financial aid, they may not understand their financial aid package before enrolling or changes to their package that might occur while they are enrolled at the college.

At Pritzker, we provide parent nights that help address questions about financial aid. We teach students what the FAFSA is actually asking them for and how to file it correctly. We break down award letters and explain the differences between direct and indirect costs, gift aid and loans, and out-of-pocket costs. This information helps students make a decision in regards to their future plans, but more importantly, it gives them the information they need to understand their financial aid packages throughout college. So when it is time to renew FAFSA, don’t turn away in fear. Parents and students will benefit greatly from a meaningful understanding of financial aid.

Megan Manna was raised in Des Plaines, IL, a northwest suburb of Chicago. She attended Bradley University and received a Bachelor's Degree in History Education. Ms. Manna has previously taught sophomore world history and Advanced Placement world history and is now a college counselor. She is the co-director for the Europe trip and Operation Snowball, an alcohol and other drug use prevention program focusing on leadership development to empower youth to lead healthy and meaningful lives.

Of course there are the objections such as students will miss out on their senior year of "college experience"; or students will have to decide faster what their degree will be.  Frankly, I find these objections petty when compared against another $25,000 of student debt.  I sincerely hope more colleges and universities will follow this example.

To read the full article at US News, click here.

Learning from Our Students

We recently had the opportunity to share our expertise with college counselors and prospective college students during our presentation at our local coffee hangout here in Chicago, Next Door. It is always nice to meet people face to face and learn more about their college finance questions and concerns. It helps us better understand what misinformation is out there and shows us just how much more work there is for us to do. We've put together this College Finance 101 presentation from our forum. Feel free to take a look and send us any ?s or comments you might have!

View our College Finance 101 Presentation

Contact Amanda Joyner for information about a live presentation on College Finance. 

By CAROLINE KELLY

There's so very much on the minds of our seniors (and their counselors and parents) right now! Whether it's keeping up with priority financial aid deadlines, making sure students know if the colleges & universities to which they've applied require the CSS Profile in addition to the FAFSA, staying on top of institutional requirements for scholarships and accompanying deadlines, or, helping seniors stay on top of their grades to finish strong and not be too stressed -- it's a juggling act and one with competing priorities! The hardest part for students, parents and even counselors is the waiting game. It's just no fun especially when we live in a world that promotes immediate gratification (Tweet that!). But waiting is a part of the college-bound game. We have to wait for acceptance letters (or, yes, sometimes rejection letters), offer letters, award letters, requests for additional information and the list goes on. BUT, some things just can't wait so, with that in mind, here's a rundown of all the things seniors and their parents should know to ensure the wait is a productive one:

• The FAFSA -- you MUST complete this even if you feel you won't qualify for federal aid (it's the only way to be considered for institutional aid and many external scholarships require it as well) & don't wait to complete your taxes to submit this; you can (& should) estimate based on 2010, in order to get it in right away BUT don't think that means you can wait to file your taxes in April either because you will need to file corrections to your FAFSA sooner than that.
• TRICK! If you're applying to more than 10 colleges (yay!), the FAFSA only allows you to submit your information to a maximum of 10 colleges. So, here is a handy little trick: once your FAFSA is being processed, go back into the form and click on "Make corrections to FAFSA", replace the colleges you originally submitted with the additional schools to which you've applied then resubmit with your pin and you'll be good to go (NOTE: a parent will have only one pin # so if you have a sibling or parent in college at the same time, you'll use the same parent pin (where students each have their own pin).
• Even if you're planning on living at home, mark on the form that you are going to live on campus so you will receive the most money possible (ie grants for living on campus) because it's easier to take away money if you decide to live off campus vs asking to add free money later which won't happen (the same is true for "work study" --mark yes that you're interested as otherwise you won't be considered for this.
• Complete the CSS Profile if your school requires it; most selective colleges do (more than 350 colleges & universities require it & the deadline is generally before the priority financial aid deadline). You are charged an application fee of $9, plus $16 for EACH college or scholarship program to which you want information sent (yes, it adds up especially for those students who are applying to many colleges; keep in mind, a limited number of fee waivers are granted automatically to first-year, first-time citizen — or eligible non-citizen applicants — from low-income families, based on the financial information provided on the PROFILE but you won't know if you are eligible until you submit the profile).
• If you're applying for any institutional scholarships for music or diversity, leadership, etc, an on-campus interview is usually required; usually the college has 2-3 days the student can choose from to participate in these so plan ahead now for making these important trips (& plan the most economical way to get there).
• Be sure to check your email! It seems silly to have to say this especially in the age of smart phones and iPads but more and more students are relying on texting (and even tweeting now) as their primary means of communication. Many colleges are sending acceptances via email now and scheduling on-campus interviews for scholarships via email. You don't want to miss a deadline that could cost you free money.
• If you're sending in your second ACT score or your 7th semester grades, be sure to have your scores sent directly to the schools to which you have applied (there are extra fees involved but this will ensure they receive your score as soon as it's available which will help you when being considered for institutional scholarships which generally have early deadlines ie March 1st). And, tell the college you're retaking the ACT/SAT in case you are doing so to be in contention for specific scholarships that require a certain minimum ACT score.
• Some institutional scholarships require additional essay questions, an interview, recommendation or minimum ACT/SAT score; be sure to check out each college's online financial aid/ascholarship information and click on undergrad/incoming freshman to see their list of institutional scholarships and specific application requirements.

Waiting is never fun but there's a lot to do to fill the time so make the most of it! It will be worth the wait!

Have you been approached by a scholarship company?  Have you been asked for a small fee to process your grant application?  Have you heard about that guaranteed $8,000 that is available to you, but they need to first take care of a processing fee?  If you haven't as of yet, you likely will hear about it in short order.  There are many scholarship scams and other college application scams out there trying to trap families like you.  They take advantage of the seemingly insurmountable costs of college, and provide you a solution at the ready.  It may not even sound like it is too good to be true, because they will incur certain expenses and paperwork that you have to jump through to get the money.  This is intended to put you at some ease, and of course make the scammers money.

So here is what you need to do.  DO NOT PAY ATTENTION TO THESE SCAMS!  Skip over them quickly and stay focussed on proven sources and strategies for money.  Stay focussed on completing the college financial aid applications: the FAFSA, the CSS Profile, and the institutional college forms.  Make sure you are aware of the financial aid priority deadlines for each of the colleges you or your student applied to.  Get the financial apps done by the earliest deadline of the group.  And do not make a decision as to which college you or your student will attend until you have received the official financial offers from the colleges.  Until you have the official financial offers in hand, you will not know what you are going to pay at that college.

https://www.edulaunchpad.com/Pay-for-College/The-FAFSA/FAFSA-Overview/

https://www.edulaunchpad.com/Pay-for-College/Interpreting-Your-Offer-Letter/Interptreting-Official-Financial-Aid-Offers/

by WILL DIX

All too often, families beginning the college search process automatically rule out many colleges based strictly on the published “comprehensive fee,” the total including tuition, room and board, and estimated charges for books, fees, and other common elements. However, it’s a real mistake to base the college search strictly on those figures. It’s better, especially in the early stages of the search, to focus on colleges’ characteristics and other elements that match a student’s needs and goals, while also considering what the student has to offer the colleges.

With many colleges now breaking the $50,000.00 per year barrier, it’s understandable that parents would balk. Very few families can afford to pay that amount in full, and it’s daunting to contemplate having to do so. But that number is only a beginning; families should consider it flexible and proceed accordingly, since colleges have many ways to make themselves affordable.

Financial aid, of course, is the major element involved. It is effectively a “discount” on the comprehensive fee, and can range from a few thousand dollars to the full charge. By completing the Free Application for Federal Student Aid (FAFSA) and, in some cases, the College Scholarship Service Profile (CSS Profile), families share information that enables colleges to make a reasonable attempt at matching their need to the costs involved.

This system isn’t foolproof, but it takes into account many circumstances not immediately apparent when researching colleges. For example, consideration is given to overall family income; the number of other children in the home or in college; custody arrangements (if necessary); illness or disruption of income; other financial obligations; and many other elements that may affect a family’s ability to pay the fee. (However, don’t confuse “financial need” with “financial want:” If you’ve just bought a speedboat, don’t expect your payments there to affect a college’s financial aid package!)

Over and above basic financial aid packages of grants and loans, colleges have a good deal of discretion in granting scholarships, the free money awarded for any number of reasons, most often based on merit. If students create their lists well, it’s possible to put themselves in line for awards for high academic achievement, talent in some desired area, or for simply being from a background or area of the country not often seen at the institution. Generally these awards aren’t labeled as such; they are given generalized names like the “Presidential Scholar Award,” or possibly not even named at all, simply appearing as a line item in the award letter.

Schools trying to raise their academic profiles have a great incentive to offer high-achieving students very favorable financial packages, in effect “bidding” for their attendance. Institutions with highly competitive admissions do not. In creating college lists, students should think about what they have to offer a prospective college as well as what the college has to offer them. In that way, they can find a selection of colleges that fit their criteria but also put themselves in a favorable position for financial aid and scholarships.

Many people don’t realize that expensive private colleges and universities can often cost less than an applicant’s state institution because they have more financial aid dollars at their disposal and can distribute them more freely. Families considering a state institution’s relatively inexpensive full cost may be surprised to learn that they are eligible for private college financial aid that makes it equal or even less expensive than the state school.

By PRIYA KALARIA

Completing a FAFSA application can be stressful for both you, as a college bound student, and for your parents. There are a lot of documents and financial information that you need to gather and have ready before you begin this process which can seem overwhelming. It’s important to stay calm and as there things you can do to help this process.


First and foremost, remember that it has probably been awhile since your parents completed a financial aid application so they may need help too. Work with them. Help them out be obtaining all the proper information and school codes needed to complete your FAFSA. Don’t be afraid to ask for assistance from financial advisors, friends and family or by using the toll-free number or live chat if you are unsure about any of the questions.


Although the majority of the information you will be using in your application is from your parents’ financial records and taxes (or best estimates; remember, no need to wait for all your tax documents to arrive to complete the FAFSA!) you need to be aware of how things work. Why? Every academic year you will be receiving new funding and want to make sure that you know how to complete the proper forms to do so. It is also important for you to know how the financial aid process works, especially if you will be the one paying back any student loans. This can also relieve some stress on your parents’ end because it is easier for you as a student to get in touch with the right staff and administrators at your college if there is any issue down the road.


Which brings me to my next tip: make sure that you save all the documents that you receive referring to your financial aid. This is very important because you don’t want to have any discrepancies between the funding you received and what you owe.


Most importantly, remember that “the early bird really does get the worm”….get your financial aid application in by the priority deadline for your college so you can get as much funding as possible (some financial aid offices will tell you the deadline is as late as August but the fact is, they won’t have as much financial aid available then so don’t wait!). Their priority deadline is when the first wave of funding is disbursed from that college so you want to make sure that you are able to get all that you need.


Parent Tip
While your student may we stressing out about dorm room accessories, classes, friends etc, as a parent your number one stress about sending your student to college is finances. College should be an exciting time not stressful. There are many things you can do as a parent to ease this stress so you can both enjoy some quality time during the months leading to their departure from the nest. Although your child may still be deciding what college they want to attend, there is a lot you can do to prepare and be ready for the upcoming financial changes:


1. Get an early start on budgeting how much you will be able to contribute to your child’s education. You can start to think of this as early as their junior year and collectively make a decision on a college that is a good fit for them personally and for their future profession as well as a good fit for your family financially (check out eduLaunchpad.com’s Net Price Calculator and College Generosity Ratings for free help and good estimates on what college may actually cost your student along with tips on lower out-of-pocket costs);
2. Sit with your student and look into possible scholarships that they may qualify for. Students can begin to apply for various scholarships and grants during their senior year if you feel you may need more funding (but keep in mind, getting the most from the college is still the #1 goal);
3. Have your taxes filed early because you will need them to complete the application (again, you don’t have to do this to complete the FAFSA but you will need an educated guess);
4. Be sure to properly communicate to your child how they should be covering any additional funding or expenses that will not be covered by financial aid (will you expect them to work part time & if so, during school or only on school breaks; will they need to take out a student loan?, etc);
5. When completing the FAFSA make sure you sit down with your student and go through the steps together. It is very important that they understand how the financial aid process works. This way when the new academic year comes they can go ahead on their own and complete the proper documents on time. This is also a great way to slowly build their financial knowledge and independence;
6. Encourage your student throughout the process but don’t do the work for them. If your student’s college of choice offers him/her less financial assistance than other colleges or you truly need more financial help, have him/her appeal the financial aid decision. Colleges will want to hear this from the upcoming student, not the parent so keeping them involved in the entire process is key. (eduLaunchpad.com has sample appeal letters and other tips to help your student navigate this as well).

First, there is the deadline tool at FAFSA.  If you go to the FAFSA website, you'll see a big orange link on the lower left that says "Deadlines".  Click on that link and it asks you what state you live in.  If you put in Iowa, you'll see the federal deadline is June 1st, and the state deadline is July 1st.  Well that means you can sit back and relax... right?  Not hardly.

In most instances, the federal and state deadlines are useless.  Do not pay attention to them.  What you want to know are the financial aid priority deadlines for each college you apply to.  Assume your student has applied to George Washington University, University of Illinois, and Jacksonville University.  The financial aid priority deadlines for these schools are February 1st, March 15th, and March 15th again.  So the earliest date of the three is February 1st.  eduLaunchpad.com lists the school financial aid priority deadlines under the "Admissions and Deadlines" section of the school profiles in the college search engine.  Click here to see Drake University as an example.

https://www.edulaunchpad.com/Portals/CollegeShow.aspx?CollegeID=1761

February 1st is YOUR deadline for when you must file the FAFSA.  The date you must file the FAFSA to ensure you have the best opportunities for the money is the earliest financial aid priority deadline of the schools to which you applied.

For more information on the FAFSA, click here.

https://www.edulaunchpad.com/Pay-for-College/The-FAFSA/FAFSA-Overview/

HR 2028 in the House of Representatives 

S 1102 in the Senate

These two bills are likely the most important education and debt bills in the last two years.  They are far more important than the administration's impotent attempts at restructuring financial aid a couple months ago.  What these bills do is to reestablish bankruptcy protection for private education loans.  

Currently, education loans (private and government) cannot be discharged in bankruptcy court.  If a student takes out any kind of education loan, they are stuck with them for the rest of their lives no matter how bad their personal financial situation becomes.  Now I am all for personal responsibility, and unlike some people I know (who are constantly editing everything I put on this site) I am an unabashed capitalist.  But there has to be a way for people to start over when life throws them a whole bunch of curve balls.

Not only will this give people an opportunity to start over, it will also encourage student loan companies to be more responsible in who and how much money they lend to students.  In my opinion, this is a good thing.  If student loan companies are more careful of how they loan money, it will encourage more responsibility on the student's part as well.  If a student can't borrow $100,000 for their degree, it will encourage them to be more responsible in the fashion they borrow money, how much money they borrow, and the potential for their degree to pay them back.

These bills are a positive step towards responsibility.  Encourage your representatives to pass these bills.

Contact your Congressman here.

Contact your Senators here.

By PRIYA KALARIA

Remember the story about the Tortoise and the Hare? The Hare decided to take a snooze because he thought he had enough time before the Tortoise passed him up. His arrogance and decision to snooze made him lose.

I was once the Hare. Procrastinating college applications and missing the deadline can make me lose too. After deciding towards the end of my junior year in high school that I wanted to graduate early and start college right after, I thought I had it all figured out. But, I managed to miss all the deadlines for the schools in which I was interested. I was set back a year from my college plan because the admissions offices weren’t able to process and review my application packet in time for the new term, making my road to college a bit more challenging. I was left with little time to think of an alternative plan for myself. Knowing that I didn’t want to just waste the interim year away, the best option for me was to start taking general core classes at a nearby community college that had late admissions and enrollment. I had to make sure these classes were transferable to the school I wanted to apply to the next year and make sure I had the GPA and other requirements for my transfer application together so I didn’t miss the deadlines again. I learned from my mistakes the first time around and made sure I didn’t make the same mistakes again.

You need to beat the deadline. Most college application deadlines are at the end of the crazy holiday season and the time just flies by. So, be proactive and finish your application packets before it starts so you can enjoy the holidays with your family. Here are some helpful tips for making sure your college applications are out the door and in the mailbox before the holidays.

1) Use a calendar. Create your own deadline for completing college essay, applications documents and gathering recommendations from teachers. This will help you stay on task to ensure that you will be able to make the application deadline.

2) Get organized. Organization makes tedious tasks such as college applications much easier. Create a folder for each college to which you are applying and insert a checklist of all the documents and papers you need to complete and submit your application. This will make it easier to keep track of your application completion and help motivate you to work faster to get that application out the door.

3) Be proactive. College applications require you to gather documents from many different people and resources, who are also working on other student’s documents. Don’t assume anything. You need to make sure you are proactive by staying on top of gathering transcripts, ACT / SAT scores, recommendations, etc on time so you can stay on schedule according to your application deadline calendar.

Plan to complete your college application as soon as possible or at least one week before the application deadline date. If you’re really ambitious, aim for the early admission college application deadlines. This way you are giving yourself a little bit of a cushion in case you are not able to gather your necessary documents in time. Remember the earlier you submit your college application, the faster you may hear back from colleges. You will feel much more relieved and can enjoy the rest of your year.

Parent Tip:
Help motivate your child and give them no excuse to miss an application deadline by providing them with envelopes, labels, stamps, a calendar and other supplies necessary for them to complete their application. Having all of those things easily available and accessible gives them no reason not to take their fresh-from-the-printer application directly to the mailbox.

Priya Kalaria was born and raised in Mt. Prospect, Illinois, a suburb of Chicago. After graduating from Rolling Meadows High School a year early, she attended community college for a year before transferring to DePaul University where she received her Bachelor’s in Finance and Real Estate. Through her time working for corporate America and being impacted by the changes in the economy she decided to pursue her true passion: helping people. Upon completing her Master’s degree in Clinical Psychology, Counseling Specialization with a concentration in Children and Adolescents from The Chicago School of Professional Psychology, she began her career as a Career and Academic Advisor in Higher Education. She enjoys her work, has a passion for helping individuals as well as mentoring and guiding young adults to succeed in their future endeavors and pursing their dreams.

These are the students it's most difficult to help motivate to keep applying and, in some cases, retake their ACT to help ensure they have additional acceptances and therefore more options to choose between for college attendance. It's one of the most difficult aspects of the college application process to help a teenager think about the true value of having more than one option, especially when it means more work in the short term. As a college counselor, I don't want them to simply get into college; I want them to graduate! I spent my day trying to explain (for the millionth time?!) why it is important to apply to "reach" schools yet, when I think back to how I was at 17 years old, I doubt that I was really thinking about college graduation rates...but that just makes it even more important for me to get them to!

What?  You mean you are not planning your FAFSA parties?  Well what about all of those shows on TV celebrating the FAFSA season?  You can't tell me than you have never wished anyone a "Merry FAFSA."  Wow... I think I'm more out of touch than I thought.

For those of you who are not in tune with all the joys of the FAFSA (Free Application for Federal Student Aid), let me clue you in.  FAFSA is the most important form for determining what your student will pay for college.  It is the critical element in determining how much money the schools and the government will give a student heading to college.  It's kind of a big deal.  The earliest you can file a FAFSA form is January 1st before the college year in question.  So all those new aspiring college freshmen will be first time filers in just a few short weeks.

Now there's all kinds of great information on our site about what you should do in preparation for the FAFSA, but one of the most important aspects is what I want to cover here.  That important aspect is get all the money you can out of your student's name.  You see, parents have what is called an asset protection allowance (APA).  The APA in conjunction with the lower percentage assessment of parental assets means that parents' assets do not increase students' expected financial contribution (EFC) as much as student assets do.  So it's a smart idea to lower student assets as much as possible.  Thankfully, this time of year offers us an excellent means to accomplish that.  Take your student's money and go buy their Christmas presents with it.

I think we just lost 90% of our student readers.

Don't panic.  If you want to replace the student's money down the road after you have completed the FAFSA, then feel free to do so.  But for now, your student needs to get rid of their cash, or they will be paying more for college than they have to.

So here is the soon to be college students' Christmas shopping list.

But if you watch the news, there doesn't seem to be a lot of thankfulness this year.  And there is only one remedy for that lack of thankfulness... get thankful.

I am thankful that I live in one of the most free countries on the planet.  I am thankful that I can worship my God as I see fit.  I am thankful that I can call a politician a lazy butt, lying sack of horse feathers and not go to jail for it.  I am thankful that I can pursue one of my favorite pastimes of punching holes in paper with high-speed pieces of lead, and the government doesn't really care about that.

I am thankful for my wife who is beautiful, full of wisdom, full of passion, wonderfully insightful, and spiritually minded.

I am thankful that in this country, students can pursue their passions at any age and not be pigeon-holed into one career path when they are only 13 years old.

I am thankful that there are other people I get to meet who share similar passions to mine.

I am thankful for all my business partners... even the one who is diametrically opposed to my political views.  I am sure we will once again cancel out each other's votes for President next November.

I am thankful for Orville and Wilbur Wright who figured out that we can temporarily overcome Newton's law of gravity at least as long as the big fan in front keeps spinning.  And I am thankful for Clyde Cessna, Walter Beech, and all those other aviation pioneers for building such great means to take advantage of the Wright Brothers' discoveries.

I am thankful that I live in Iowa where every four years we get to live the Superbowl of politics.  I don't think there is anywhere else in the country where you can get so much face-time with the future leader of the country.

I guess I could go on and on, but I will finish with this.  I am thankful to my God, the most creative genius I know, who lets me in on just a little bit of that genius.  He taught me that if I hope to be successful, I need to be thankful for the success in the lives of others.

Thanksgiving is quickly approaching (hello, calendar? where did October go?) and while most are thinking about  what side dish to make, what football games to watch or what family members to (try to) avoid, college counselors like myself are thinking were all the ED applications sent?  Do the students have enough schools on their app list? Are the schools on their list places they can make their home and graduate from in four years?  Thanksgiving break for us is two days to catch our breath before regular decision paperwork needs to go out. And then the real fun begins...

So when you do get your admission applications done, which I'm sure everyone will do before Thanksgiving, you will most often receive 4 responses from the colleges or universities to which you applied.

1.  The Admissions Acceptance Letter.  WOOHOO!  You win!  This is the letter every student is looking for.  You now have a place reserved for you in next year's incoming freshman class.  Now you have to pay extra special attention to everything else this college sends to you because there will be additional, very important forms to fill out.  You do not have to nor want to confirm to the college that you will be attending at this time.  That comes later after you receive your financial award offers from all the schools that admit you.  If you confirmed your attendance now, you would essentially be buying the product with no idea what the price is.  That's a bad idea.

2.  The Denial Letter.  This is the "Dear John" letter.  The one that goes something like, "I really like you, but I just don't think it will work out."  Get past it quickly.  You won't be admitted to every school you apply to, and that is to be expected.  The one thing you do not want to do is pursue the admissions department and try to haggle, or worse yet, beg your way into the school.  That rarely ever works, and if you did get into the school, you will not get any money from  them because you're going to be the lowest person on the totem pole.

3.  The Wait-Listed Letter.  This is the zombie letter.  You're not really alive, but you're not really dead either.  If you really want to turn that wait-list letter into an acceptance, then there is a whole strategy you can pursue to accomplish this.  In a nutshell, make sure the admissions representative knows you're interested, but don't be a pest.  But keep in mind, just like the denial letter, you are the low person on the totem pole and financial help will be scarce if you do get in.  For more information on what to do if you are wait-listed, click here.

4.  The Financial Award Letter.  Actually, this is the preliminary financial award letter.  This letter soon follows the acceptance letter, and it's purpose is to sweeten the pot.  Typically it will say something like, "Congratulations, we have awarded you a $48,000 scholarship".  Actually it is $12,000 a year for four years, but $48,000 sounds better.  These awards are typically based upon the student's performance indicators such as ACT/SAT scores or GPA.  These are good letters to receive, but they do not represent everything you can expect.  These will be a piece of the complete financial offer which you will receive after all the financial paperwork is filed in January.

Morningstar, the mutual fund research company, has released its list of the good, the bad, and the ugly of college 529 savings plans.  Here are their top 6 picks of 529's and the bottom 7.

Best Performers

• T. Rowe Price College Savings Plan (Nevada)
• Maryland College Investment Plan
• CollegeAdvantage 529 Savings Plan (Ohio)
• The Vanguard 529 College Savings Plan (Alaska)
• Utah Educational Savings Plan
• CollegeAmerica (Virginia)

Worst Performers

• Tomorrow's Scholar College Savings Plan (Wisconsin)
• The Upromise College Fund 529 Plan (Nevada)
• CollegeBound Fund (Rhode Island)
• NextGen College Investing Plan (Maine)
• TD Ameritrade 529 College Savings Plan (Nebraska)
• Schwab 529 College Savings Plan (Kansas)
• Minnesota College Savings Plan

Keep in mind that you do not have to invest in a 529 plan from your home state.  You can invest in a 529 from any state, so research them and find which one will best fit your needs.

To read the entire article from Morningstar, click here.

Today in Denver, the President announced to a group of college students that he is accelerating some provisions for student loans from 2014 implementation to 2012 implementation.  Here are the highlights of the changes...

Income Based Repayment:  This was actually implemented a couple years ago when graduates could enroll in a program that caps their federal student loan payments to only 15% of discretionary income.  The new plan will allow students to cap federal student loan payments to 10% of discretionary income.  The plan will also allow for some loan forgiveness after 20 years rather than 25 years.

NO Impact to Private Loans:  To the contrary of what some news outlets reported yesterday, the new provisions have no impact at all on private student loans.

Consolidation of Federal Loans:  Graduates will be able to consolidate federally backed loans under the Direct Loan Program (DLP) and Family Education Loan Program (FELP) together.  There will be a quarter of a percent decrease in the interest rates for consolidation and an additional quarter of a percent reduction for participating in automatic payments on the loan.

Interest Rates Will Go Up:  Perhaps the most disappointing news is that the federally subsidized Stafford Loans will still increase to 6.8% next year from the current 3.4% this year as previously scheduled.

We at eduLaunchpad were really hoping for something more substantial from the President's address.  Interest rate reductions to bring federal student loans more in line with market rates would have been a very good start.  But that would probably have required for Congress to get involved; and right now, the President isn't having much success working with them.  However, I suspect that if a member of Congress would introduce a stand alone bill to adjust those rates to be more consistent with the prevailing markets; it would likely pass with very little opposition.

Well as all good Cubs fans say... there's always next year.

Actually, the more common admissions application deadline at even the most competitive colleges, is January 1st.  And there will be plenty of students who don't get their applications done until midnight on New Years Eve.  And although there are many early decision, early action, and priority application deadlines at the beginning of November; this is not why I recommend students get their applications done by the end of this month.  My reasons are more practical than determined by any college calendar. 

Take a look at your students' high school calendars.  Look at everything that is taking place between the beginning of November until the end of the year.  Now throw in Thanksgiving, Hanukkah, Christmas, and other holidays.  Make sure you include family vacation and travel plans.  Pretty quickly you'll see that students' available time is disappearing at an increasing pace.

What about after the holidays then?  Unfortunately there are two very big problems you and your students will face.  #1 After the holidays is when the application windows start closing.  #2 After the holidays is when the financial application madhouse begins.  You definitely do not want to be tackling these two processes at the same time.

So students get your applications done!  Don't dilly-dally any longer.

Not exactly.  Years ago the differences between colleges and universities were easily identifiable.  Universities were focussed on research and offered graduate level degrees.  Colleges were focussed on students and typically awarded up to bachelor's degrees.  Universities were large and were made up of several colleges.  Colleges were small and often centered around liberal arts programs.

You can still find many of these themes running through colleges and universities today.  If an institution has the word "college" in their name, they are typically smaller than those institutions with the word "university" in their name.  But what does this really have to do with your students finding the schools to apply to?  In my opinion, not much.

Today, many institutions called "colleges" do offer graduate degrees; and many universities are quite small.  Again, your focus should be on identifying which schools fit your students' interests and needs, and which schools are generous.  DO NOT get distracted by the words in the schools' names.

Now I know there are some respected bloggers out there who still think there are important differences between colleges and universities that should be paid attention to.  There are writers I highly respect who believe so.  But I will part company with them on this.  Colleges and universities for all practical purposes have become one.

When my wife and I were there last year, I was disturbed to find that students in Germany are tracked at a very early age.  Students are segmented when they are young into a track for university and a track for labor.  Then they are segmented into different schools as they are prepared for each track's completion.  For a student to switch once they have been tracked is nearly impossible.  If a student that has been tracked to go into labor wants to go to college, practically the only choice they have is to leave Germany and go to college in someplace like the US.  This is the common practice across Europe.

So what does this have to do with No Child Left Behind (NCLB), that universally accepted and praised federal government program?  Quite a bit when you figure that the standards set by the program for high schools across the country is in comparison to the high school matriculation rates and student performance in countries like Germany.  

In the United States, high schools have pretty well been designed around a college prep track.  This is a noble goal, but NCLB is trying to get all of the American student population to conform to half or a third of the student population in countries like Germany.  It truly is an apples and oranges comparison. In a conversation at my wife's birthday party with my neighbor who is a school principal, he described how this is creating huge problems in the American education system.  What we have in America's schools today just is not working, and "No Child Left Behind" is designed such that it will only get worse.

Now I'm not going to say that the American education structure is better than Germany's, or that Germany's is better than ours.  However, it doesn't take a rocket scientist to figure out that you can't expect the same outcomes from two very different systems.  I will also say I'm glad I live in a country where students can decide whether or not to go to college rather than have their school make that decision for them.

Too many people are being told that the only options they have for an education they can afford is in the public universities.  This is just not true.  There are hundreds of private universities and liberal arts colleges all across this country which are doing a tremendous job at lowering the costs of education.  I see time and time again where the private colleges are beating the public institutions in total cost of education.  These examples and information need to get into the hands of high school educators.  We need more students being encouraged to apply to private institutions.  

And the generosity of these private colleges are not just limited to Harvard, Yale, and the rest of the Ivy League.  Wartburg, Coe, Lake Forest, Knox, Jacksonville, and hundreds more are all small, private, liberal arts colleges with fantastic records of generosity.

If you are a student looking at college, you need to add private colleges to your list.  You need to focus on the schools' generosity ratings and not just on their sticker prices.

1.  Wait Until College:  Student do not need to have their life planned out at 18.  Get to college.  Take diverse classes.  Figure out your major by the time your Junior year starts.

2.  But don't wait too long:  If you go past the Junior year before you decide what you want to do, you'll be adding extra expense to your college education.

3.  Curiosity won't kill you:  Ask questions and use career assessment tools.  Talk to people in the Career Services department about prospects before deciding.

4.  Make sure it's your passion:  Once a student finds their passion, follow it even if you are not too sure where it will lead.

5.  Be aware of the exceptions to these rules:  Fields like medicine, nursing, engineering, and physical therapy require students to make decisions early on in college.

Click here to read the full article.

Very often, students that the school had planned on starting the semester, don't show up.  They probably decided to go to another college.  Many of those students had financial awards that then become orphaned. 

Now is the time to go back to the financial aid office and see if there is any other funds available.  Ask them if they have had any grants, scholarships, or work-study that has become available.  Some schools will have some; other schools will not.  But there is only one way to find out.  You have to ask.  And do it quickly, because there will not likely be much.  If you don't get there first, you roommate could very well wind up with the money.

There are more textbooks options available today than ever before.  Students can go the traditional route and still buy the 15 pound tome on post-Victorian Europe, or they can consider the following:

Rent your textbooks.  Many college bookstores now let students rent their textbooks for the semester.  At this point in time, it's unclear whether or not you will come out ahead if you buy and sell back the books later or rent them.  But you might be able to by-pass the annoying issue of trying to sell back your textbooks and find out they will not be used next semester so there is no market for them.

There are several sources available to students for renting books other than the campus bookstore.  Online book renters include:

• Chegg.com
• Barnes&Noble.com
• Amazon.com
• BookRenter.com

Go Digital.  The eTextbook may be the biggest change students can take advantage of compared to when I went to college.  The idea of being able to carry in your book-bag every book you need for the semester was impossible just 10 years ago.  I remember one 4 volume reference work I purchased in grad school.  All together, it weighed close to 50 pounds.  Today, it is still the standard reference work for its field; but it now costs only 5% of the money I paid for it and weighs literally nothing.  To check if the books you need are available electronically, check out the following sites:

• CourseSmart.com
• Barnes&Noble.com
• Kno.com
• Textbooks.com

But there is the one hidden benefit of buying the old used books that just isn't available from some of the newer solutions.  Every college student quickly learns that used books can be work much more than new books simply due to the notes that another student has written in the margins.  Think of it as user generated content for textbooks.

But what is at the bottom of PayScale's list?  What are the worst paying degrees that students typically graduate with?  Take a look at the rogue's gallery of college degrees as we count down to the worst paying college degree of all.

Make sure you remembered everything!  Visit CollegePackingList.com.

www.collegepackinglist.com

All of the top 20 highest paying degrees are math intensive.  So the next time a student complains why they have to study math, keep this list handy.  It will explain it very quickly.

Education Officials Break Down Stockton Man's Door

The Department of Education is the last place I would have expected to see this kind of heavy-handed thuggery, but there it is.  I am shocked and disappointed in the DOE's actions in this matter.  The Department of Education is supposed to be about helping children get ahead and improving the education level of our country.  It is not supposed to be a Godfather sending out his enforcers to collect debt.  This is the United States of America.  We do not have debtors' prisons here.

If anything, this should highlight to everyone the importance of keeping out of education debt as much as possible.

One of the simplest but most powerful things we can do is ask questions.  The stereotype of the student who is not taken seriously or listened to is too often true.  In my over a decade of working with students, I have found one of the most powerful questions to ask is “if you could not fail, what would you want to do?”  Now of course we know that failure is a part of life, but that question can very often unlock dreams and desires that the student has kept otherwise hidden. 

Another revealing question to help the student identify what their goals and desires may be is “what person or people in life do you admire and would like to be like?”  Here is a question that opens doors for the students to think outside themselves and recognize their values in others.

These kinds of questions might be followed with “how do you think college would help?” or “which colleges might assist you with that?”

Once you get the students thinking about college themselves, then offering them the tools to help them with their search, like eduLaunchpad, becomes easier.

We’ve heard it all before, but listening to them and taking their answers seriously really is effective.

Graduation Rate is the percentage of students who graduate with a degree in 150% of the standard, allotted time for that degree.  For instance, the typical bachelor's degree takes 4 years to complete.  150% of 4 years is 6 years, so the graduation rate for a bachelors is measured in 6 years.

Schools like Lawrence University in Appleton, Wisconsin have veered off the beaten path and are blazing a new trail in the practice of test optional admissions.  Test optional essentially means if you think your admissions package is strong enough without an ACT or SAT score, then don't submit it.  Ken Anselment, the new Dean of Admissions at Lawrence, recently commented that they have not found any lowering of the quality of students in their incoming classes due to this new policy.  In fact, Lawrence is attracting some very capable students simply on the basis of their agreement with the university's test optional policy.  Check out the story below...

Over 800 schools have some element of test optional within their admissions system.  Check out the full list at FairTest.org.

I wish I could have read this book before I went to college.

Life insurance is always a smart asset to have in your overall financial plan.  If the worst-case scenario ever occurs, there is nothing that can replace the power of a life insurance policy.  But you need to be aware of the pros and cons of a life policy, and when they are appropriate.

The Pros

Life policies insure that the student has the needed money for college in case the parent, grandparent, aunt or uncle dies.  No other financial instrument has the same power to fill financial needs when an unexpected death occurs.

Cash value in a life policy does not impact financial aid calculations.  Unlike practically all other types of investments, money inside the life policy is not counted on the FAFSA or CSS Profile.  This can make the life policy a very effective financial aid shelter.

Borrowing against a life insurance policy is a way to get cash for college, at a very low cost to you, which will not negatively impact your Expected Family Contribution (EFC).  Borrowing against a life policy typically has net costs in the range of 0.5% to 1.5% interest, and most of that goes back into your policy.  Sometimes you don’t have to pay it back at all.  Also since it’s technically a loan, it is not considered income.

The Cons

Life insurance policies do not have good growth potential.  In shaky economic times, many people may like the slow, plodding, security of a life policy.  But if you are looking for growth, life policies are not designed for it.

Life policies are not good choices for any savings plans shorter than ten years in most cases.  If you are looking for someplace to put money and take back out in the short term, the fees and penalties on life policies will often eat up any benefit.

Withdrawals from a life policy are considered income by the financial aid process.  Unlike loans, cash withdrawals show up on your financial aid forms and drive up your EFC.  If your life policy was heavily funded up front, you run the risk of not being able to borrow money and all money coming back out of the policy will be treated as a cash withdrawal (it’s call a modified endowment contract).

Conclusion

Whatever the case may be, the point is that you get someone to pay you a salary (or will do it soon…keep going) because you have something valuable to offer. The important thing, however, to realize is that the salary number you get is NOT important – make sure you understand what you will be taking home. Why?

1. Federal Taxes – The federal government gets paid before you do!
2. State Taxes – The state gets paid before you do too!
3. Medicare – You pay to support the healthcare for elderly – think about you parents and/or grandparents
4. FICA – You pay to support Social Security – think about your parents and/or grandparents

And, this list doesn’t even include some of the amazing opportunities that you have to set money aside before you even pay taxes. For instance, some companies automatically take a little money out of your paycheck to set you up for retirement. And, YOU have the power to put money aside for retirement as well by letting your HR (human resources) department know what you want to do. This is a good thing because you can also reduce the amount of taxes you have to pay, but you should know that it affects how much money you take home. We will spend a whole series on getting you on the right foot for retirement soon.

Suppose you are told that you’ll make $50,000 annual salary at your new job in Chicago. Check out this example, which shows you how much you actually take home if you get paid two times a month. When’s the last time you saw your paystub! Every now and then, make sure you get a physical copy to see where that salary goes.

Through great websites like Paycheckcity, you can get an estimate of how much your paycheck will be after they take everything out. Because this is only an estimate, knowing the net paycheck number is critical and seeing how it can change based on an increase in salary is critical too. As you get paid more, you pay more in taxes, so keep that in mind as well.

And, you will have to make this money stretch amongst your debts, bills, savings, and everything else, like eating! Check out Bankrate’s cost of living calculator to figure out the cost of living in your city. Using the same $50,000 salary example, look at how you can divvy up that paycheck and not run a negative balance in your account.

And, there you have it – after you’ve handled all the necessities go ahead and use up the rest of that paycheck to go about living your life - eating, hanging out with friends, shopping. If you need to add other bills – car insurance, gym membership – you can see the effect on what you will have left over. And, it will make sense to set your due dates for those other bills during the later part of the month because you have more paycheck to use.

The important thing to remember is not to be fooled into thinking you’ll have more money than you actually have because you’ll have to make it go a long way.

Reproduced from Smarteys.com with Permission:

Charisse Conanan, CFA and personal finance expert, is CEO and cofounder of Smarteys.com - a company revolutionizing the way 20 and 30-year-olds manage their money.

            Crazy U is one long rant with some humor and a few bits of history thrown in.

            This book was written by Andrew Ferguson.  It was published by Simon & Schuster in 2010.  It chronicles one harried father’s struggle to navigate the murky and ridiculously complex waters of higher learning.  Ferguson is the father, and his struggle revolves around getting his teenage son into college.

            If you’re looking for a how-to book or a book with any practical information on college…Crazy U is not for you.  Ferguson’s book reads like a journalistic exposé.  It sheds light on our society’s obsession with college and how these institutions of higher learning take advantage of that obsession.  Brief history lessons of college-associated rituals (such as the SAT and the admissions essay) reveal how they got started and how they, in Ferguson’s opinion, devolved into meaningless rites of passage.

            But the things that make up the majority of Crazy U are complaints.  Ferguson gripes about the bias in the admissions process.  He gripes about the difficulty of receiving financial aid.  He gripes about the unreasonably high (and continually rising) cost of college.  He gripes about the stupidity of college courses.  He gripes, most of all, about the overarching absurdity of admissions.  And it goes on…and on…and on…

            I think that is what most annoyed me about this book: it is consumed by an all-pervading sense of cynicism.  “America’s system of higher learning is rotten to the core.  But there is nothing we can do about it except go with flow and hope that, somehow, our kids turn out ok.” seems to be the only message here.  Ferguson offers no solutions or answers to the problems and questions he brings to light. 

            I would go so far as to say that a parent who dives into this book unaware runs the risk of, upon completion, despairing of there being any practical use for institutions of higher learning at all.

            A few minor issues I should mention are Ferguson’s occasional salty language, and a cavalier attitude toward college alcohol abuse and promiscuity.

            If you don’t take what he’s saying too seriously, the humor and biting wit of Crazy U make it a fun and easy read.  I would recommend it to parents (fathers especially) looking for a laugh and a source of commiseration.  Because that is the most anyone can be expected to get out of Crazy U. 

That, and a muttered, “What is this country coming to…”      

By Beck Farb, Taylor University

College is Big Business.  Find out how to be a better educated consumer. Click Here.

I am very glad to say that this spring, there is something far better available at www.PrepMe.com.  PrepMe.com is unlike any other test prep system I have seen.  Last fall, one of the PrepMe staff took us through a tour of their system.  It is impressive.  This isn't just a website that makes up mock tests out of a stable of standardized questions.  This site thinks.  It watches how the student performs, learns their strenghts and weaknesses, and then walks them through a plan to improve their scores.

And best yet... it's guaranteed.  PremMe.com guarantees that your student will improve their test scores or your money back.  Now that makes it a no-brainer.  The folks at PrepMe tell us they increase student test scores on average by 5 points on the ACT, and a commensurate amount on the SAT.  That is huge.  5 points on an ACT can equal thousands of dollars in additional financial help.  In some cases, it could even mean a full-ride.

Check out www.PrepMe.com.  It could be the single best investment in your student's future you make this year.

As I scanned the growing list with widened eyes, I became convinced my college had a club for anyone from the environmentally minded to rabid “Twilight” fans!  I saw several that looked interesting, but I had questions.

What could I gain by joining a club?

What could I lose?

I’m sure sometime during your college experience, you’ll be faced with this decision.  Whatever you do, don’t act impulsively.  Take time to consider the benefits and the requirements. 

The benefits of joining a club:

• It’s a way to get involved on campus.
• You’ll meet people who share your interests or opinions, and you may make some lasting friendships.
• You’ll have fun!

The requirements of joining a club:

• You have to be willing to show up.
• You have to be willing to participate.

If you see a club that looks like it might be worth your time, try it!  If you later decide it’s not for you, that’s fine.  If you decide you like it and want to join, that’s great.

What did I choose?  I found a club I thought I might like, weighed the benefits and requirements, went to a few meetings, and ended up joining.  I lost a few hours of my free time on Thursday nights, but I gained some wonderful friends and wonderful times.

God bless you all,

Becky

They don’t show up!

I need to tell you I’m not speaking from personal experience here.  At my college, students usually attend their classes.  In fact, I know of one class where the professor…well, let’s just say kids don’t miss his classes unless they’re at death’s door (and sometimes they drag themselves in anyway).  But that’s a whole different story.  I remember hearing my cousin say that 80% of the students in his college classes don’t show up 80% of the time.  Then he hears them complain about their grades!

Prioritize people!  Some things are more important than sleeping in, or hanging out with friends, or watching TV, or whatever you do when you don’t show up for class!   (Takes a deep breath.)  Sorry, I tend to get a little upset about this. 

If you’re worried about not having enough time for the “fun stuff,” don’t be.  Never again in your entire life will you have as much free time as you have in college.  Let me put it this way: I show up for my classes, do my homework, and still find a ton of time to do the things I enjoy.  You can too.

God bless all of you,

Becky

In college, where you probably won’t have the same class every day, it’s easy to procrastinate.  You can fool yourself into believing that you have plenty of time to get that paper written, or that project finished, or that speech prepared, so why not wait a little while?  Let me assure you: it’s a bad idea.  Oh, you may get away with it a few times, but eventually you’ll find yourself up in the wee hours of the morning, desperately trying to complete an assignment that “came out of nowhere.”

I came into college knowing that I was a chronic procrastinator.  So, I decided to do each assignment as soon as possible after it was assigned.  I kept a list of assignments and their due dates in plain sight and crossed them off as I finished them. Not only did this system keep me from turning in late or poorly done assignments, but it gave me a sense of relief and satisfaction every time I crossed one off my list.

I hope this helps.

God bless you all,

Becky

Today I’m sharing suggestions on how you can do just that from Dean Tsouvalas, editor-in-chief of StudentAdvisor.com, a website which provides a variety of information about colleges.

With the tremendous popularity of Facebook - if it were a country it would be bigger than all but two countries — it seems like every college and admission counselor is now on Facebook.

A Kaplan survey of college admissions counselors found that 82% of admissions officers reported that their school is using Facebook to recruit students while  56% use Twitter and YouTube. While counselors are checking students out online, they are also trying to engage them on the Internet.

According to Tsouvalas, here are ways that high school students can take advantage of Facebook and other social media:

1. Research online.

Follow your prospective school’s Twitter feeds, “like” their Facebook fan page and subscribe to any other social media channels that can give you insightful information. Through social media you can research schools and incorporate that knowledge into your essays and interviews.

2. Try video.

Make a video on why you want to go to a school. Post it on YouTube, tag the school and include a link to the video in your application. Now you can stand out from other students applying.  Tufts University leveraged social media when it invited students to submit an optional one-minute YouTube video along with their application.

3. Start a blog.

A blog is a fantastic platform for displaying writing skills and a knowledge of your declared/target major. Your blog can showcase photos of your volunteerism, your creative side via art or music projects, that time you made it into the local paper for saving a cat in a tree/catching the winning touchdown/winning a pie- eating contest. Your blog can show your dynamic personality in ways that a word-count-restricted essay and GPA cannot, and can give you a leg up on other students. Of course, don’t forget to provide links to your blog on your application.

4. Don’t forget privacy.

Seize the opportunity to sell yourself and your assets to schools,but don’t overlook your privacy.

On Facebook, visit “Privacy Settings” by clicking on “Account” and set privacy settings at the highest level you’re comfortable with. On YouTube, make any videos that you wouldn’t want everyone to see “Private” when you upload them.

Lynn O’Shaughnessy is the author of  The College Solution and she also writes for TheCollegeSolutionBlog.

This list does actually have some objective criteria backing it up rather than the "look at me, look at me" list of the their "Best Colleges" issue. These 63 colleges responded to a US News survey and said they guarantee to meet 100% of student's financial need. That's great, but what does that really mean.

First of all, how is the financial need determined? Is it determined by the FAFSA EFC (expected family contribution)? That would seem fair considering it's the only truly objective standard available. But most of the schools on the list utilize the CSS Profile, and the profile schools often have their own internal computations for determing need. So while the FAFSA might determine a student's need to be $5,000, the school might determine the student's need to be $15,000. Trust me, I've seen it happen. So what real value is there in the guarantee... not much.

Second point, just because a school doesn't have a guarantee doesn't mean they won't meet your full need. You need to pay attention to the school's generosity, how you compare to the other students typically admitted, and make sure you have options to choose from. Many colleges roll out the red carpet for students and come up with boat loads of money for them and never discuss a guarantee.

Don't rely on some school's guarantee, do your homework and put yourself in the best possible position.

The IRS form 1098–T is an informational reporting form that colleges file with the IRS and send you a copy.  It details your qualified higher education expenses as defined by the Internal Revenue Service for the previous year.  It will also sometimes include scholarships and grants which may offset some of those qualified expenses.

This form can be use to help determine your eligibility for the Hope scholarship credit and the lifetime learning credit on your 1040 tax return.  It is not reported on your FAFSA.

Thank you to Candy for this question.

I asked myself the same thing.  Here are some things I did to make things easier:

1. I showed up.  Seriously, skipping for no reason other than “I don’t feel like going.” is never a good idea, especially on the first day of classes.

2. I showed up at least five minutes early for every class.  This lets you get your bearings, take a look at the other students (you might see someone that you know), and take a look at the professor whom you will probably be learning from for the rest of the semester.  It also makes the professor think that you’re interested in the class (even if you’re not).

3. I came prepared.  In the days before classes start, do a little research.  If possible, check out the         syllabus for each class.  It’s also a good idea to talk to students who have had the class or the professor before if you can.  This is not entirely necessary, but it can help.

4. I came well-supplied.  I recommend that you get a folder, a spiral notebook, some loose-leaf paper, and a binder for each class.  This will help to keep things organized and easy to find.  Also, remember to stock up on pens and pencils. 

Note:  It’s always best to get your textbooks before the first day of classes, but if you can’t, then get them ASAP.

God bless you all,

Becky    

Let me put it this way: more sleep = better concentration in class = better grades.  It sounds simple, but it’s surprising how many college kids completely ignore this little equation.  I know people who regularly stay up into the wee hours of the morning, spend most of their classes just trying to keep their eyes open, and then complain about their bad grades.  There’s a rumor out there that college kids have this magical ability to stay awake all night, every night, and still keep up with their school work.  Guess what?  Big…fat…LIE!

I know that each person has a different amount of sleep needed for him/her to function well the next day.  Know your limits and stay within them, especially you freshmen: get good sleep-habits started as soon as possible!  You may have to miss the occasional event or party, but, honestly, is that too big a price to pay for being alert and attentive in class?

God bless you all,

Becky

P.S.  Lack of sleep isn’t the only bad habit that’ll affect your grades, but I’ll discuss some of the others later.

            There are a lot of tips I could give you that might help.  For one thing, don’t just stay in your room all the time, no matter how safe you feel in there.  Get out, or at least leave your door open.  Try your best to be friendly and meet new people.  I know this is hard for all you introverts out there (I should know, I’m one of you), but it’s not as difficult as it seems.  Once you have a few friends, or at least acquaintances, the loneliness that comes with homesickness will start to fade.

            Like I said, I could give you a lot of tips, but there’s really only one sure cure for homesickness.  Time.  No matter how depressed or lonely you get, after a few weeks (maybe a month in extreme cases), you’ll find that you’re beginning to enjoy college life.  The campus will become more familiar, comfortable, and homelike.  A little side note: a lot of prayer can help speed this process along.

God bless you all! (I really mean it.)

Becky         

            As you can imagine, getting to college and finding myself stuck in a room half the size of my previous one, with two (not one, two) complete strangers was like getting hit in the face with a bucket of icy water.  I learned the hard way that I had to change some of my oh-so-precious habits.  And you will too.  Sorry, but that’s life.

            Here’s a list of five tips that may help you avoid some of my mistakes:

1. Try to email (or Facebook) your roommates before you meet them.  This’ll help ease some of the first-day awkwardness.
2. Sit down and discuss your sleeping cycles as soon as possible.  I liked to turn out the lights around midnight, which was a problem with a roommate who normally studied until 1:00am.
3. Sit down and discuss your hygiene habits as soon as possible.  I saw no problem with leaving a few hairs around the sink after I brushed, one of my roommates had another opinion.
4. Don’t be a room-hog.  There are dozens of places around campus that you can go to hang out, study, etc.
5. Make sure all of you understand when it’s okay to bring other people into the room, and when it isn’t.  I remember being woken up at 1:00am when one of my roommates brought in five visiting family members.

I hope this helps!

God bless you all.

Becky

Answer:

That's a really good question, and unfortunately it is not one that the financial forms are designed to deal with.

In a case like a Roth conversion, you are forced to report additional, taxable income on your tax returns that you don't actually have.  Because it is taxable income, you must report it on the FAFSA form which will artificially inflate your available income for financial aid purposes.  The remedy for a situation like this is called a "professional judgement".

A "professional judgement" is an appeal directly to the college or university's financial aid office to which your student has applied.  Provide them with detailed information about the conversion, its impact on your taxes, and what your taxes would look like without the conversion.  You need to make a logical, compelling case as to why the numbers filed on your FAFSA form do not accurately reflect your real financial situation. 

College's and universities do not have to agree to your request for a professional judgement.  But the financial aid offices are run by real people; and if you make a compelling argument, in all likelihood, they will see things your way.

If you have any questions you would like answered, please use the question form at eduLuanchpad.com.

A few months ago, I was in your shoes. I was filling out applications, visiting campuses, inspecting dorms, and desperately trying to answer that age-old question: what do I want to do with my life? (aka What major should I choose?)

I won’t lie, it’s daunting. But after I chose my college, my major, and my dorm, everything fell into place and I was no longer worried, right? Wrong! I worried about my new classes, I worried about meeting my roommates for the first time, I worried about moving away from my parents, etc. In fact, I was probably more scared than I had been when I was just looking for the right college.

But don’t worry. With a whole lot of prayer and the help of some wonderful people, things did eventually work out. And I’m going to do my best to prepare you by telling you about some of the challenges I faced and some of the surprises I did not see coming.

So, aspiring college students, don’t freak out. If the most anti-social, panicky, homesick person in the world (me) can make it in college, you can too.

God bless you all,

Becky

Let me be as frank as I can be, I hate these US News lists with a passion reserved only for those who steal kids' dreams and force grandmothers to eat dog food in a cardboard box in Duluth, MN in January. Aside from being hopelessly flawed methodology, these lists instill false expectations in students. For many students, it means life crushing debt to live up to some unholy expectation of a super-life after graduating from the world's "elite" universities. For others, it means depression and hopelessness when they think their life is over because they couldn't get in to some select school as defined by some secret society in league with hellish allies.

It is not the college that defines the student! It is the student who defines their future. Do not pay attention to the lists. They are garbage!  

Colleges and Universities have locked themselves into a death spiral of financial irrelevance.  If it means anything, it's a marketing nightmare.  More money is poured into higher education funding, so consequently college prices go up.  And more money is poured in, so prices go up more.  And more money is poured in, so prices go up more... and so on, and so forth, ad naseum.  It just never seems to stop.  All it does is create a more and more complex financial situation that is barely understandable to a Harvard economist let alone the average American family.

In one corner, we have rapidly rising college costs.  In the other corner, we have rapidly expanding financial resources for students.  The rising college costs get most of the attention making college appear further and further out of reach to students.  While at the same time, the expanding financial resources are keeping actual out of pocket costs reasonable, but only for those who take the time to study the blindingly ridiculous economic model this combination has created.

Ah... I'm getting on a rant now.  It just frosts me how this system of paying for higher education just keeps getting more and more ridiculous every year.

The moral of the story is to make sure you study and stay on top of this mess we call paying for college.

Preliminary Award Letters typically show up with the notification of acceptance for admission to the college or shortly thereafter. They will typically say something like “Congratulations. Because of your excellent performance, we are honored to award you the President’s Special Scholar Award of $40,000.”

 $40,000! You just hit the jackpot! 

No… I don’t want to make light of the monies that the colleges are going to offer you, but you need to understand what these letters are and how they are written. These offers are most often based upon arbitrary academic indicators such as the student’s GPA, Class Rank, or Standardized Test Scores (ACT or SAT). Quite often, Colleges will have a set schedule of awards for particular performance. Such as if a student has a 26 on their ACT, the school would give the student $2,000. If the student has a 28 on their ACT, the school would give them $5,000; and so on.

These letters are also written in a way to make the offer appear as large as possible and increase the “wow” factor. Keep in mind, you have been accepted to the college, now the college is trying to get you to commit. The $40,000 in the above example is $10,000 per year over the next four years. It is not $40,000 per year or $40,000 up front. It would be one heck of an offer, but colleges do not give signing bonuses.

Preliminary awards are just that… they are preliminary. They are what the college knows they can offer up front before any of the financial paperwork is filed. As such, they most often become part of the Official Financial Offer after all the financial paperwork is processed. In some instances, the preliminary offer may only be one-half, one-third, or even one-quarter or less of the Official Financial Offer. There could be much more money coming.