The Perfect Storm – Retirement vs. College
The current recession is stirring up a perfect storm for college bound families - how can you pay for college and still continue to fund your retirement?
Most colleges continue to raise their tuition because there is less money being given to support higher education from the state and federal governments. As a result, more students must turn to loans as a major source of funding for college. Yet, taking on the responsibility of an $80,000 or $150,000 loan is very difficult for most lower– to middle– class families who are already strapped for cash.
However, if you are the parent of a college bound student, the cost of college may not be the biggest financial issue you face today. You could be missing the big picture! Consider these facts:
- The youngest baby boomer is now 45
- The oldest baby boomer is now 63
- The average age of parents with college bound kids is 40-45 years old
Now fast-forward 20 years down the road when today’s parents with college bound kids are 60-65 and they want to retire. At that time the majority of Boomers will be 70-80 years old. Consider this:
- Will you still be paying off education loans over the next 20 years?
- Will college costs keep you from adequately funding your retirement?
- Will Uncle Sam need to tax your 401(k) at higher rates to cover the older Boomer’s old age benefits?
- Will you have enough money to outlast inflation if you live to age 90?
These are all tough questions to face in this tough economy. If you are a parent facing the college vs. retirement dilemma, you really should take the time to put some simple numbers together - to see if college costs will force you into a lower standard of living during retirement. If these numbers don’t add up because your current retirement fund has taken a hit this last year, then you need to seriously think about building a new retirement plan now, with college expenses built into it. Give us a call. We can help!
Private Colleges Must Work Harder To Lure New Students
This down economy finds many private colleges working harder to fill their freshman classes. A $50,000 per year private school tuition – even for such a prestigious school as say Carnegie Mellon – is a harder sell to students who may also have the option of paying less than half that to go to a prestigious state school. As a result, private school leaders are worried about declining enrollment and are making new efforts to help students whose families otherwise might not be able to afford tuition because of the recession.
Schools with a recognizable brand name and a big endowment, like Harvard or Yale, can offer free or heavily discounted tuition. But the challenge is much greater for smaller schools without the big endowments. Last year, many of these smaller schools had to sweeten their offers of financial aid. Some schools have already frozen tuition for next year and increased aid at the same time. If you are a high school junior who plans to attend college in the near future, do not rule out private colleges because of cost. You may be pleasantly surprised that some private schools will offer better deals than public schools for the school year 2010-2011.
The author of this newsletter is Chuck Reilly.
If you have any questions about the information contained in this newsletter, or any questions about college funding in general, please contact our office.
10 Items You Should Research Before Ever Committing To A College
High school juniors will begin to look at colleges soon and some of the key factors that these students will look at in their college search is 1) the looks and size of the campus, 2) the quality of campus life, 3) the honors and study-abroad programs, 4) fraternities and sororities, and 5) the sports programs. However, before the student makes a commitment to any college, here are ten other areas to consider:
1. The number of course requirements
Course requirements vary widely from school to school. You don’t want to find yourself mired in courses that don’t interest you, while you’re unable to take electives in the areas that do interest you.
2. The flexibility of course requirements
Schools that require specific courses can put you in a bind if you’d rather take more advanced courses, or if you need to take more remedial courses, to fulfill that requirement. Be sure to check that the school allows a choice of course levels to satisfy the various requirements. Also, keep in mind that many top professors avoid teaching required courses that route hundreds of students through the course.
3. The availability of your college major
Never assume that your college of choice offers every possible major, especially if you have a very specialized major in mind. It’s critical to check the list of majors at each college. At certain colleges, some majors are not open to all students, especially those majors that require talent or training (music or art), or those majors that are extremely popular (psychology or journalism).
4. The availability of your desired classes
In the past few years; college enrollments have risen, but the faculty size has not grown commensurately. As a result, there may be very long wait lists for some classes and shortages in first-year classes for students who did not register on the first possible date. Be sure to check the availability of your desired courses before sending in your acceptance letter to the college.
5. The availability of professors teaching the course
At many state universities, a significant number of instructors are graduate students. It’s important to know how much of your instruction, especially in the first years of college, will be designated to graduate student teachers. It’s ok if a regular professor gives the lectures and the grad student leads discussion sections; however, the real issue arises at schools where grad students are allowed to teach entire courses on their own.
6. The student/faculty ratio
If you attend a school with 10 to 20 students per faculty member, you’re likely to get a lot of individual attention from the faculty. Once the number of students per faculty member goes above 20, you may not get much hand-holding from a professor.
7. The percentage of students who graduate
A school with a graduation rate over 80 percent is good and a graduation rate of 60 to 80 percent is quite normal; however, a school whose gradation rate is under 60 percent is not good. Also check out the average time a student takes to receive a degree. You may want to avoid schools whose students take an average of six to seven years to graduate.
8. The quality of the career placement department
Very few students even think to ask about the career placement department, but this should be a key item on your checklist assuming the student would like to graduate with a job. Students should ask questions such as, what job placement services are provided by the placement office, what percentage of graduates will be employed prior to graduation, and which companies and organizations recruit your graduates?
9. Are you required to take computer–taught or on line classes
To save money, some colleges use computer programs for course instruction, or have their lectures posted online, rather than use live instructors. It’s the new do-it-yourself method of instruction, which may not be the best learning experience for the student.
10. The total cost of college
If you plan to attend college then you should know up front what the total cost of college will be to get a degree. The student should also research any opportunities to receive financial aid to help offset that total cost. You will need to find the answers to questions such as, how does the college financially reward a good student, what forms are used by the college to determine financial aid eligibility, what non-need or merit grants and scholarships are available from the college, and what is the average debt incurred by each student upon graduation?
How can a student get this much needed information from the various colleges? Check out the college guides and the college websites themselves. Ask admissions officers, students, and recent graduates of the schools. Send e-mails to the appropriate college contacts. Regardless of how you get this information, it is very important in order to make the best possible college choice and get the most out of your college experience.
The author of this newsletter is Chuck Reilly.
If you have any questions about the information contained in this newsletter, or any questions about college funding in general, please contact our office.
The Frustration of Today’s College-Bound Families
Do you have a high school sophomore or junior who plans to look at colleges in the near future? If so, you may want to take the time to read the following e-mail that was sent to the staff at the college planning website Getready4college.com.
“I realize now that I did it all wrong. I bought a small house I could afford, I worked hard and went to school nights so I could get a degree and make more money. I drove older model cars. I made my mortgage payments on-time and acquired equity in my home. I put money away for my retirement. and I was completely honest and forthcoming on my financial aid forms for my daughter. And for all that I’m told that after 12 years of working hard and getting my daughter into five of the top colleges in this country (including 2 Ivies), she gets ZERO dollars to attend the schools she got accepted to. We are not rich. My wife and I make just about $125,000 per year combined, so we take home only $90,000 or so a year. So now I am supposed to donate one-half of my take-home pay ($45,000+) so my daughter can go to college? Or let her enter life with $180,000 in loans? I actually had a financial aid officer at a major Catholic college just outside Boston tell me I could take a home equity loan, or stop my 401k contributions. And meanwhile, derelicts who sat around saving nothing, not working to better themselves, not paying their mortgages, and just accumulating debt and bad habits, end up getting a free ride. Our college system is BROKEN. We are on the verge of returning back to the days when only the very rich and the occasional sponsored poor family could go to college. Our top colleges have abandoned the middle class.”
This is the typical frustration that many high school seniors and their families went through this year. Do you have a high school sophomore or junior? If so, the above story may soon be your own! Don’t let this happen to you! There are many ways to deal with colleges on their price, but you have to know the procedures and guidelines to be successful. Contact our office as soon as possible to see if we can help you avoid being “abandoned” by the colleges you choose.
College Aid Offices Told By Department of Education To Give More Help
The Department of Education issued a statement to college financial aid officers around the country urging them to give more help to students from families suffering from the recession. The following is an excerpt from the statement:
“I am writing to remind you of the authority you, as a financial aid administrator, have under the law (section 479A of the Higher Education Act) to make adjustments, on the basis of adequate documentation, and on a case-by-case basis, to address circumstances not reflected in a student’s original Free Application for Federal Student Aid (FAFSA). This authority is particularly important for families who may be struggling during these difficult economic times. Simply stated, most of these families do not know about their right to request that you adjust one or more of the components that determine their eligibility for financial aid. I would ask you to reach out to your students (and prospective students), particularly those who seem to have hit a rough patch, to make sure that they know there may be ways that you can help.”
However, college officials warned that while they want to give more help to people who’ve recently lost their jobs, there still isn’t enough money to give every student what he or she feels is needed.
The author of this newsletter is Chuck Reilly.
If you have any questions about the information contained in this newsletter, or any questions about college funding in general, please contact our office.
Six Missteps in Learning
Many of the problems people face with regard to their education can be narrowed down to concerns about how to approach their learning needs. Based on my interactions with non-traditional students, here are my picks for the top six career-learning missteps.
No Career Goal in Mind
Some people ask if they should go into business, architecture, IT or some other field. What they are really asking is: Is this field secure and lucrative? But they haven’t said anything about their desires and strengths, and while they may have enough interest in the field to suggest it, they haven’t researched the career possibilities.
Not Considering Your Interests
When considering a field, look into the careers available and be honest with yourself about your interests. You should do a thorough examination of your work style, the subjects that interest you, the restrictions and demands of various careers, your lifestyle expectations and the long-term health of the industry you are choosing. Identifying a career goal provides focus and will inform your choice of educational options.
What’s Hot? Not!
If you employ a jump-on-the-bandwagon approach to career planning, be prepared to hate your next job within a year. Taking a job for a time because you have to pay the mortgage is perfectly understandable, but if you have to spend time and money to get a degree, certification or license for that job, stop and think. It makes no sense to invest money and energy in a career path you’ll want to abandon in a year.
Not Using Your Network
Career and education choices are big decisions, but you’re not the first person to make them. Many people — people you know or can talk with — have had to make similar decisions. Take advantage of their knowledge and experience:
- Current and Former Colleagues: If you seek to advance your current career, you are literally surrounded by experts.
- Your College: If you earned a degree, you may have also earned a lifetime supply of advice and contacts. Investigate your school’s alumni and career services via the Web or phone. Search for information on other alumni in particular fields of interest, or ask about talking to a career counselor.
- Your Professional Associations: If you don’t belong to one, join one. Go to meetings and talk to the people in your field of choice. They have probably encountered the choices you face.
- Your Personal Contacts: Are you an admin assistant who longs to become a chef? Email everyone you know and ask if they know a chef. Don’t be surprised if your best friend’s aunt’s next-door neighbor is head chef at some hot restaurant. Be sure to follow up.
- You’re Prospective Education Provider: These folks are biased, of course, but use admissions department resources to find out about programs and their success in preparing professionals for the workforce.
Too Narrow a Focus
Some people are so focused on getting a specific credential or degree to add to their resume that they fail to consider longer-term education needs. Do some research to find out what you don’t know and what you will next need to learn?
Seeing Only a Piece
With so many different learning experiences available, it can be hard to make comparisons. When comparing a traditional degree to an online degree, for example, list the components: course requirements, time commitment, resources available, costs, and reputation and lifestyle implications. Know all your needs and what you are paying for before choosing.
Making education decisions is always difficult. But don’t scrimp on the research that should go into the decision. Avoiding these six missteps will save you time and money, and help you secure the most productive and interesting education possible.
Resident Life: A Place to Live and Work
There’s at least one in every college dorm. From mediating arguments between clashing roommates to diffusing finals week stress, they look out for their residents. They’re Resident Assistants, more commonly known as RAs, and they’re an integral part of dorm life.
An Uncommon Job
An RA is usually in charge of a floor or a wing of residents. Their responsibilities include:
- Helping out with the personal and academic concerns of the students on their floor.
- Serving as a facilitator to build a community among floor residents by initiating and organizing floor activities.
- Providing information about the campus and residence hall.
- Making the dorm floor a fun and safe place to live.
“It’s a 24-hour-a-day job,” says Amanda Pierce, who was an RA for two years at New York University. Resident assistants are on call around the clock. As an RA, you can expect to hear from residents at seven o’clock in the morning because they’re nervous about an upcoming test, or late at night because they got locked out of their room.
And there’s nothing like an everyday routine when you’re an RA. “You should always expect the unexpected,” Pierce says.
Qualifications
Serving as an RA requires responsibility and organization. To ensure candidates are up to the challenge, offices of residential life require certain criteria for selection:
- You must have a certain grade point average or be in good academic standing.
- You must be at least a sophomore or in your second year of college.
- You can’t be on any type of judicial probation.
- Outside jobs usually aren’t permitted.
“Above all, you should have great listening and time-management skills,” Amanda says.
An RA’s Rewards
Resident Assistants are usually hired for the academic year (nine months). Free housing on the dorm floor and free meals in the dorm cafeteria are typical job perks.
“But you get a lot more out of it than just the free room and board,” Pierce says. “The personal growth and development you gain can help you in college and beyond.” As an RA, you can get a lot of experiences that future employers are looking for, such as:
- Involvement with a wide range of staff and students.
- Experience in program presentation and event planning.
- Training in many areas, including conflict mediation and diversity awareness.
- Growth of leadership skills and style.
- Development of administrative skills and time management techniques.
“I loved being an RA, it was a lot of work, but the payback was worth it. It allowed me to meet people, build relationships and develop myself as a person in a way no other job could have.”
If you’re interested in being an RA, check with your Resident Advisor or Residential Life office and find out how you can get more out of your college housing experience.
The Best Summer Jobs, Along with the Worst
What is the best summer job? Before you collect an armful of applications from burger joints and clothing stores, try rephrasing the question — what’s the best summer job for you?
Ask Yourself
If you foresee yourself logging a lot of hours over the summer, it makes sense to do it in an environment you enjoy. Ask yourself some of these questions as you consider summer work:
- Do you have any financial or personal goals you’d like to achieve?
- Do you prefer to work autonomously or as part of a team?
- Would you prefer to work indoors or outdoors?
- Do you enjoy interacting with the public?
- What sort of jobs have your friends or siblings held? What did they like or dislike about them?
- What special skills and talents do you have?
After you’ve thought about a work environment that fits your personality you’ll have a better handle on what type of work will be right for you. You might not find a job that fits your criteria precisely, but you should find something that has qualities that are important to you.
The Best Jobs
Landscaper, receptionist, cashier, waitress and librarian were just a few of the jobs website users contributed when asked to submit their best summer job. While the types of jobs varied, students’ attitudes about the jobs shared some common traits. The people working them enjoyed the environment, liked their coworkers and loved what they were doing.
Alexandra Colella enjoyed working as a lifeguard at a country club. She says, “Working outside at the pool was great. Not only did I get a great tan, I also met a lot of interesting people. You get paid higher than minimum wage because of the responsibility the job holds, yet you have fun while working.”
For Brandon Delmonte, her summer job at a jewelry store was the best. “It was like experiencing Christmas everyday. I loved helping people find new jewelry for different occasions,” she says.
Christopher Wren’s time spent volunteering at a children’s day camp helped him realize that he “was great with working with kids,” he says. That helped drive his decision to pursue a career as a pediatrician, something he’ll start when he enrolls at the University of North Carolina.
The Worst Jobs
For all of the positive work experiences out there, many students have had the agony of working a terrible job. Bad jobs aren’t just about low pay, long hours, mind numbing boredom or tyrannical bosses. Some jobs are downright dangerous for unqualified or underage workers.
On their web site, the National Consumers League (NCL) lists the five worst teen jobs. This list is compiled through surveys, news reports and government statistics. According to the NCL the five worst teen jobs are:
1. Agricultural Fieldwork and Processing. Due to the number of injuries caused by farm machinery, animals, chemicals and other risks, agricultural work is the most dangerous industry for young workers.
2. Construction and Work at Heights. Construction sites are filled with hazards and according to the National Institute for Occupational Safety and Health, “youth 15-17 years of age working in construction had greater than seven times the risk for fatal injury as youth in other industries.”
3. Outside Helper: Landscaping, Grounds keeping and Lawn Service. Outside helpers work with dangerous hand tools and chemicals like pesticides and fertilizers which can cause injuries.
4. Driver/Operator: Forklifts, Tractors and ATVs. Drivers are at risk of vehicle rollovers, being struck by a vehicle, being pinned by a forklift, and other hazards.
5. Traveling Youth Crews. Often unsupervised, these crews travel to unfamiliar neighborhoods to sell candy and magazine subscriptions door-to-door.
Keep in mind there is nothing inherently negative about these jobs — they have been categorized as “worst” because of safety factors only. If you are one of the thousands of teens that already holds one of these jobs, we would encourage you to do what you can to make sure you are properly supervised and to stay safe at work!
The Right Fit
Summer jobs generate cash-flow, work experience and good memories for young students every summer. Look for positions in safe environments where workers are properly trained. Beyond that, consider your own personality and tastes to find summer work that keeps you happy.
10 Rules for All Students Applying to College
1.) Talk To Your Counselor. Between the books in the counselor’s office, and the knowledge in your counselor’s head, he or she will be a virtual treasure trove of information. Take advantage of the opportunities you have to work with a counselor to make plans for your future. Many counselors know more than any one book or website, and they are generally always willing to share their knowledge.
2.) Stay In Touch With Your Counselor. Selecting a college is not a one-step operation. In order to really help you make a decision, the counselor is going to need to get to know you. The only way for the counselor to do that is for you to take initiative and go meet with him or her. Also, most counselors are not just there for information. They really are truly counselors, and they are also there to help you with your decision, help you solve your crises, or to just calm you down when you’re really stressed out.
3.) Do Research. The way to begin the college process is to get online or crack some books and start discovering what’s out there. Use the resources in your counselor’s office. There are great websites such as www.myroad.com that, if you have taken the PSAT/NMSQT, are free opportunities to begin your college search. (On MyRoad, you start by taking a personality test. The site then generates a list of suggested majors and career possibilities, complete with a ranking system for how well they think this career will work for you. Then you can browse through their college index and find the right colleges with the right majors for you.) Visit www.makingitcount.com and take the My College Style and All About Me tests. Like MyRoad, these resources are free with registration, but these tools are not limited to students who have taken the PSAT. Don’t forget to research ways to pay for college by visiting sites like www.fastweb.com, a free scholarship search engine.
4.) Get Started Early. It’s never too early to start researching colleges, even if you don’t have a clue where to start. Just get out there and research something. Start now!
5.) Don’t Procrastinate. This is one of the greatest decisions you’ll ever make, and you could end up missing a great opportunity. You shrug this off like it could never happen, but it does happen all the time. Case in point: Last summer I toured a highly selective college near the nation’s capital and instantly fell in love. As the year progressed, and I applied to other colleges, it became apparent that it was very unlikely that I would ever go there, but I did keep the January 10th deadline in the back of my mind. However, at around 11:00 p.m. on Jan. 9th, when I hadn’t even looked at the application, I realized that I might have just let a great possibility slip through my fingers. I’ll be alright, since I might attend a military academy anyway, but there will always be that “what if?” factor at the back of my mind.
6.) Listen To Your Parents. I know you never do this (trust me, I’m like everybody else - I don’t want to either), but they’re there to help you. Having help makes it easier to handle all of this pressure and responsibility—and means you don’t have to handle it on your own. Also, remember that even though this is your future, your parents, in most cases, are the ones paying and the ones who got you where you are. They’re part of the decision too.
7.) Don’t Let Your Parents Do Your Work For You. They’re there to help you, but not to pick up your slack. The most they should ever do for you is research. Let them look up some information for you and go over it with you. It’s then your job to apply that information, fill out the forms, and write the essays yourself.
8.) Open Up Your Mind. Talk to reps of colleges you’ve never heard of. Don’t be fooled by big names and Ivy Leagues. There are so many more great opportunities out there. IN ORDER TO FIND THE PERFECT PLACE FOR YOU, YOU WILL HAVE TO OPEN UP YOUR MIND.
9.) Visit, And Visit Early. How can you make such a huge decision without ever having seen the college? You could fall in love with Hendrix College in Arkansas, even after thinking “no way” when someone told you what state it was in. Or, you could get up to Boston and realize that Harvard is way too uptight for your taste. You have to experience colleges first hand. If you can’t visit, getting good information is critical to making the right decision for you.
10.) Don’t Let The Pressure Get To You. Yes, this is a big decision, but it’s not the end of the world if you make a mistake. People transfer and switch majors much more often than you think. There’s still plenty of time for all of you to find the right place for you. Just keep your options open and always have a back up plan. With a little effort on your part, things will work themselves out for the best.
You’ve Been Rejected: Understanding the Rise in Rejection Rates
You may have seen the headlines: College Rejection Rates at Record Highs. With schools like the University of Pennsylvania and Pomona College admitting less than two out of every 10 people who apply, you may think you’ll never get into your top-choice school. Don’t despair. The headlines appear daunting, but there’s more to rejection rates than these headlines would lead you to believe.
There’s no denying that 2007 was an extremely competitive year for college admissions. Highly-selective schools saw their admissions rates hover around 10 percent. Harvard University admitted a record-low nine percent of applicants. Even schools outside the Ivy League admitted fewer students this year, like the University of North Carolina at Chapel Hill, which accepted only 33 percent of applicants.
Why have rejection rates increased? A few key factors contribute to high rejection rates.
- The number of students enrolling in college has reached an all-time high. More than 17.3 million students enrolled in post-secondary institutions in 2005, which is more than three million greater than a decade ago, according to the National Center for Education Statistics (NCES). The number of students enrolling in post-secondary education is expected to continue its increase for the next few years. College enrollment is projected to reach 19 million by 2014, according to NCES.
- Students are applying to more colleges. Not only are there more students enrolling in colleges, they tend to apply to more colleges than before. Seventy-three percent of colleges reported an increase in applications in 2007, according to the National Association for College Admission Counseling (NACAC). Many colleges, like the University of Chicago, are seeing record numbers of applicants. The College Board suggests that some students are now applying to 20 or more colleges, while in the past five to eight colleges was the norm. “There’s so much panic out there that more and more students are applying to more colleges. That’s really a problem,” says Joe Casper a college admissions officer.
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Additionally, online applications have made it easier to apply to multiple colleges. An increase in the use of online applications has been reported by 85 percent of colleges, according to NACAC.
With an increased number of applicants for the same limited number of class positions, rejection rates are bound to rise at some schools. Despite the headlines, low acceptance rates publicized by schools like Harvard and the University of Chicago remain the exception—not the rule—when it comes to admissions. On average, four-year colleges accept seven out of every 10 students who apply for admission, NACAC reports. Most schools still accept more students than they reject.
There are over 4,000 colleges in the country and the whole conversation about rejection rates going up is tied to a relative handful of colleges, certainly less than 100, I can close my eyes and name over 100 colleges that are still accepting applications and would love to have more people and I can guarantee students could get into all 100 of them, says Casper.
To avoid being rejected, be realistic about your chances of being accepted. “A lot of students only apply to highly selective schools and they have no backups. Students need to do their homework and find out that these schools are such longshots and they’re not going to be accepted,” Keith Wren, an independent college counselor, says.
Casper suggests having one or two schools you’re sure you can get into, one or two that are a stretch but that you’re 70 percent sure will accept you, and one or two that are stretches. “Applying to a double-digit number [of schools] is absurd. It just means you haven’t done your research,” he says.
If you are rejected from all the schools you applied to, it’s not the end of the world. You’ll probably still be able to enroll in a local college in time for the fall semester. You can make plans to reapply as a transfer student for the spring semester. This time, follow Wren’s advice above, and do your admissions homework.
The New “Reverse Transfer” Student
Due to the present economy, there seems to be a new trend beginning in college admissions. Instead of the normal flow of students who move from two-year institutions to four-year institutions; more and more students are becoming “reverse transfers”, or students who leave four-year universities to attend a community or junior college.
For instance, Cuyahoga Community College in Cleveland, Ohio had an 11 percent increase in the number of “reverse transfer” students so far this year. These students came from a variety of public and private institutions around Ohio. Last year, 86% of the “reverse transfers” to CCC came from public institutions, while 14% came from private institutions.
However, this “reverse transfer” phenomenon is not just a regional trend. The recession has led to surge in community college enrollments this year. Nationally, the American Association of Community Colleges publicized that over 30% of all two-year students previously attended a four-year institution. They expect the number of “reserve transfers” to continue to rise as the economy worsens.
The current economy has created havoc in many family’s college decision-making process. Don’t second-guess your ultimate college choice based on price! Please call us first! We have helped many families dramatically lower their actual cost of college, especially at private colleges.
College Bits And Pieces
- On Monday, the nation’s largest student-loan provider, Sallie Mae, will begin requiring borrowers who take out its private loans to make interest payments while they are still in college and repay their loans in 15 years or less, rather than the typical term of 15 to 25 years. The company’s goal is to reduce the costs of borrowing, thereby lowering the risk of default, and making private loans more attractive to investors.
- In a national address on Tuesday, March 10, President Barack Obama called for the simplification of a financial aid application. “Never has a college degree been more important. And never has it been more expensive,” Obama said. “We will simplify federal college assistance forms so it doesn’t take a Ph.D. to apply for financial aid.” However, according to many college financial aid directors, this “simplification” process will take several years to complete.
- Applications for federal financial aid are up way up this year. The National Association of Student Financial Aid Administrators reports that it has already processed 3 million FAFSA forms for the upcoming 2009-10 school year, a 20 percent jump from a year ago in the same time period. Federal direct-lending volume also increased to $20.2 billion, up $7.1 billion over a year ago.
- Harvard University will reduce about 15 percent the amount it draws from its endowment to fund operations during the next two years, resulting in a $52 million cut next year to the budget. Harvard’s endowment, the largest of any school in the U.S., fell 22 percent, or $8 billion, from July 1 through Oct. 31, 2008 putting the fund on course to have its worst performance in at least four decades. “Our strong sense is that an eventual recovery will take longer, and that we must therefore begin to accommodate a new economic reality for the university,” said John Longbrake, Harvard University’s spokesman.
The author of this newsletter is Chuck Reilly.
If you have any questions about the information contained in this newsletter, or any questions about college funding in general, please contact our office.
When Grad School is a Bad Idea: Five Signs You Shouldn’t Enroll
There are good reasons to go to grad school – to pursue an interest you’re highly engaged with, or to take the next step necessary to meet your career goals. There are also bad reasons to go to grad school. Think twice about earning an advanced degree if one of your primary motivations for going to grad school falls into one of the following categories.
- You’re not thrilled about your current job.
It’s easy to fantasize about leaving your less-than-dream job and going to graduate school, but think carefully about your motivation for getting an advanced degree before you hand in your letter of resignation. Graduate school is a lot of work and a big investment. If your motivation for going to graduate school is more to escape your unfulfilling job than because you want to pursue an interest that you are passionate about, you should reconsider. First, address what’s wrong with your career or a few years from now you may find yourself in another crummy job but with an advanced degree. - You’re having trouble finding a job.
You’ve sent countless resumes, sat through dozens of interviews, and still haven’t been offered a job that excites you. While some fields, like law or medicine, require advanced degrees to get ahead, in many fields a graduate degree is not a prerequisite. If you lack valuable experience, it may take time to land a job in your field even if you have completed graduate school. An advanced degree won’t necessarily solve all your employment issues. It could be more worthwhile to continue your job search. Assess your career goals and evaluate if returning to school now is the best move. - You really like academics.
You like taking classes, you like interacting with other students and professors, you even like studying. Continuing your studies at grad school and earning a Ph.D. makes sense, right? Maybe not. Just because you enjoy being a student, doesn’t mean pursuing a career in academia is the best idea. Get a more realistic picture of the challenging aspects of a career in academia before you commit to a program. Additionally, when it comes to post-graduate study, you need to focus on one area of study that interests you and have a clear sense of how an advanced degree will help you reach your academic and career goals. If you enjoy academics but don’t have a clear sense of what you want to study or what your chances for a fulfilling career in academia are, take time to weigh other options. - Everyone’s doing it.
Your roommate is sending in applications, your old lab partner just finished their first semester at grad school — it seems like everyone is earning an advanced degree. You may not have been considering graduate school before, but now it seems like you’ll be left behind if you don’t. Are you making a mistake entering the job market? Probably not. Enrolling in grad school right now might not be the best decision for your career and academic goals. Grad school may make sense for your friends but not for you. Don’t let what your friends are doing persuade you to make the wrong decision. - Your parents want you to go.
Many parents take an active role in their children’s educational and career decisions. Your parents’ influence may be subtle or could be more in-your-face, but don’t let them decide your future for you. Chances are you’ll end up miserable in a job your parents like more than you do. Figure out whether the career you’re considering — and the advanced degree that goes with it — is your idea or your parents before you enroll in grad school.