Imagine someone wants to give away money to help pay for college, and publicly extends their offer to many people. The only step needed to get the money is to ask for it. Asking for the money happens as a written request – usually consisting of some forms requesting basic personal contact information and a…
Tag: Expense
Ahead of the Curve: January 23, 2014
From the News: Some Parents, Educators are Rethinking the Role of AP, Baltimore Sun January 18, 2014 Who Cheats and Why, The Atlantic Monthly January/February 2014 More on Net Costs, Higher Ed Data Stories January 13, 2014 From our Clients: SAT, ACT or Both? The format of each test is different, and students can respond…
Losing Sleep Over College Affordability Concerns? You’re Not Alone.
Families attempting to determine college affordability can be subjected to acute bouts of insomnia. The predicament of framing the pros and cons of each college choice for their children can be, at times, daunting for parents. Parents face the dilemma of defining the value of a future outcome–a college degree with all of its attendant…
A Growing Gap: Rising College Tuition vs. Income
The value of college may not be reflected in the cost of college. However, the media attention to average student debt and annually rising college costs can mask the value of college. In addition, when the average costs of goods and services (i.e. inflation) is greater than the average rise in earnings for 99% of Americans…
Salary: Only One Measure of A College’s Worth
“To get a good job,” is an oft heard reason why a student is headed to college, usually stated while their parents nod vigorously in the background. A recent New York Times article–New Metric for Colleges: Graduates’ Salaries–discusses the merits of using a college graduate’s average earnings as a measure of a campus’ value, which…
How to Reduce College Costs
The “sticker shock” of college tuition rising at 1140%, as we posted here, can overshadow the need to calculate living and housing expenses, as part of the overall costs for college. Yet, families who budget for ALL college expenses for 4 years, not just year-to-year costs, are prudent and may find ways to save money. …
Paying for College vs. Saving for Retirement, Round 1
Worries about paying for rising college costs can be compounded by concerns over saving for retirement. As seen in the chart below, with average retirement savings of people aged 45-54, the general age range of parents with college-aged children, at $10,100, can explain parents’ concerns. The Baby Boomer group just ahead in age (55-64)…
Is College Financial Aid Really Aid?
The difference between the value of college, indicated by price and intrinsic worth, and what a family feels they can afford to pay creates the need for financial aid. But, college bound buyer beware: NOT ALL FINANCIAL AID AWARDED BY THE UNIVERSITY IS ACTUALLY AID.
Paying for Childhood: Average Cost of Raising Children
Wondering how your parents were able to raise multiple kids (and none of you felt deprived) on a single income back in the day? A new report by the U.S. Department of Agriculture estimates families with children born in 2012 will spend an average of $241,080 in the next 18 years to raise their offspring–NOT…
Student Loan Interest Rate Relief In Sight
The U.S. House of Representatives passed a bill to lower Federal student loan interest rates to 3.9% from 6.8% for the upcoming 2013-14 school year–following the U.S. Senate’s passage of the same bill last week. The rate reduction would mean a savings of $944.44 in interest over the life of the loan, for first year college…
College Tuition Set to Keep Rising with No Relief In Sight
Since 1980, college tuition has risen 945%, in comparison with inflation’s rise of 193% during that same period–meaning all purchases have increased in price, but college tuition has increased at a ratio of 9 to 1–based on information from the Bureau of Labor Statistics. The University of California (UC) and California State University (CSU) systems…
If You Need Your Appendix Removed, Go to Oklahoma
As seen in Zero Hedge: “What does an appendectomy cost?” College tuition isn’t the only cost that’s rising in the United States. Source: Goldman Sachs
It’s Never Too Early (or Late) to Plan for College Costs
After talking with News10 Sacramento this morning about financial aid and paying for college, thought I’d share a few additional tips and expand on a few points we discussed: Understanding the Family’s Finances: The more parents can understand the family finances, the better planning can take place for the additional expense of college tuition. Some…
The Student Debt Dilemma
While debt can be a useful tool to finance a college education, potential borrowers (and their families) would be prudent to think through their choices, as we discussed in a earlier 6-part series on fiscal planning. And, to add emphasis on the need to think ahead, Fidelity Investments recently found that, “[e]ven with the…
More 25 Year Olds Have Student Debt…And At Higher Average Amounts
As seen in the chart below, the red line indicates that the portion of 25-year olds with student debt has grown from 25% in 2003 to 43% in 2012–meaning an increasing portion of young adults are choosing to “bring forward” expected future earnings to pay for a college degree. Furthermore, the black line on the chart…