Not sure if you should have a job while in college? Confused about the differences between work-study and off-campus employment? Get ready for a crash course!

To work or not to work—that is the question. . .
Relax, this isn’t your Brit lit class—although you can feel free to take notes. After all, going to college—and deciding if you can squeeze a part-time job into your schedule once you’re there—can be confusing. Knowing your employment options is the first step to finding a job that will suit your schedule and boost your bank account.

One type of job available to you is federal work-study. According to the National Center for Education Statistics, 46% of undergraduate students received federal financial aid in 2003-2004. Work-study is part of such packages. These positions allow you to work 5-10 hours a week in jobs that range from serving food in the cafeteria to doing clerical work to giving campus tours. Pay for work-study jobs is usually around minimum wage, and methods for applying vary from school to school.

“Get there early when you’re applying for work-study,” says Chris Coons, director of admissions at Buena Vista University in Storm Lake, Iowa. “The jobs fill up fast.”

However, if you wish to spread your wings, off-campus employment is a popular choice. Ken Huus, dean of admissions at Sweet Briar College in Sweet Briar, Virginia, says that retail jobs are the most typical off-campus positions. It isn’t hard to see why: pay is usually similar or slightly higher than work-study jobs, and more hours may be available.

So what should you choose—on-campus employment or off? According to Michael Gentile, a senior at Southern New Hampshire University in Manchester, New Hampshire, there are pros and cons to both. Gentile has worked both on and off campus and says the most important thing to consider when job-hunting is flexibility. When it comes to this, work-study can’t be beat: not only is your work schedule built around your classes, but bosses are usually understanding if you have to call in because you have a term paper or an exam. Plus, you never have to leave campus.

“With a work-study job, you can get up and walk to work,” says Gentile, who now works at Abercrombie & Fitch. “I miss that convenience.”

According to Coons, work-study is also especially important for freshmen, as these jobs help students get to know people on campus quicker. Huus adds that work-study jobs are great preparation for life after college. For example, some schools include your work on your transcripts, which can be a useful part of your student record when applying for jobs after graduation. Plus, there’s the additional benefit of building a relationship with your boss, who may be helpful later as a job reference or career advisor.

“The fact that [students] are involved in campus life and have mentors readily available is an invaluable experience,” says Huus.

There are some limits with work-study, though. Because these jobs are awarded as part of a financial aid package, you have a certain amount of money you can earn in a given year. If you exceed your award, you won’t be paid the overage.

There is much to consider with off-campus jobs as well. For one thing, you can’t do your homework on-site or call in because you have a group project. While Gentile points out that this has exposed him to valuable, “real-world responsibilities,” he also says it occasionally causes his academics to suffer. On the other hand, off-campus positions sometimes have an opportunity for advancement that may not exist with most work-study jobs. This summer, for example, Gentile was promoted to stock room manager at his store. “It’s nice because my hard work has paid off,” he says. “My managers appreciate my efforts.”

Either way, though—work-study or non-work-study—employment is an important piece of the college experience: “Having a job is a valuable component because it teaches students to manage their time,” says Coons. Gentile agrees. “Working has taught me a lot,” he says. “On or off campus, it’s definitely the way to go.”

Did You Know . . .
76% of full-time undergrads work while taking classes.
Full-time undergrads work an average of 22 hours each week.
On average, undergrads earn more than $5,000 a year at their jobs.
Source: Education Statistics Quarterly, 2003

Article by Amanda Martinez and courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 31, 2007 at 4:02 PM | Leave a Comment (0)

So you just got your first paycheck and you’re in shock. It looks like half has been siphoned off for taxes and insurance. Chill. Forget about that “big” splurge at the mall and start thinking about some long-term goals. Practice sound money management and you’ll be able to afford some of the things you really want and need in life—an education, a car... okay, and maybe some cool clothes and a ski trip, too.

The Incredible Shrinking Paycheck
You just got your first weekly paycheck for $452. But wait. You only deposited $319. Where did that $133 go? Take a look at estimated deductions below:
Federal income tax	$37
Social Security	$25
Medicare	$6
State and local tax	$14
Company retirement plan	$27
Life Insurance	$2
Dental insurance	$2
Health Insurance	$20

The first major money-management step is to define some realistic goals. That will definitely help motivate you to be a better money manager. What are your education plans? Do you need wheels–will that take a car loan? How about an apartment, that place of your own? Keep in mind that most properties require two to three months’ rent as security. Getting a clear picture of how much your dreams will cost will help you chart an achievable course for earning and saving.

Face the Numbers.
Most financial planners agree that to make the most of your money, you have to look at your cash flow—how much is coming in and how much is going out. Creating a simple budget chart will help you visualize and plan ahead. (You can download a free one at www.betterbudgeting.com.) On your chart, write down your total income for the month—not only from your paycheck, but any scholarships, loans, or parental contributions. Then list all your monthly expenses—food, clothes, lattes, movies, CDs, books, car payments, loan payments, etc.

Just about everybody has more expenses than they first think. To get the real numbers on what you’re spending, track your expenditures for several weeks. Keep a little notepad in your pocket, ask for receipts on every little thing, and at the end of the day, write it down. You may be surprised at how those expenses add up. Once you’ve got the real scoop on your spending, compare it to your actual earnings.

“A budget is really the starting point in managing your personal finances,” says Greg McBride, senior financial analyst with Bankrate.com. “A budget gets you in the habit of saving because it puts a limit on spending.”

Balancing your budget means making your income equal your expenses. If you’re overspending, take a knife to your budget and start cutting those things you can live without. Do you really need mocha lattes, light on the cream, no chocolate shavings, every day of the week? And how about those DVD rentals?

Pay Yourself First.
Can you save? Absolutely. You’ve heard this advice before, but you have to set aside a certain amount of cash every month, even if it’s a couple of bucks. It gets you in the habit of saving and sets you up to get the things you want in the future.

“You have to do your saving first before you do your spending,” says McBride. “A little savings now on a regular basis means a lot of flexibility later.”

If you’re earning a check every week or two, ask your employer about direct deposit. Under this system, your entire check can be electronically dropped into your bank account before you have a chance to cash and spend. And ask about 401K plans. Based on the number of hours you work, you may be eligible to participate. Your bank may also have automatic savings deductions as well, so check out your options.

Don’t have a bank account? Now’s the time to consider opening one. Many financial advisors recommend that you have two types of accounts—savings (for the big goals) and checking (for immediate expenses).

In reference to savings accounts, there’s usually no minimum deposit required to open one, and it’s still possible to take out money from an ATM if you desperately need it. Watch out for those ATM fees. Plus, in a savings account, your money is insured by the federal government (FDIC), and it earns interest, which ultimately means more money for you. The current average interest on savings accounts is 0.53%. Some electronic accounts, such as those from EmigrantDirect.com, can earn you up to 4%.

Did You know?
ATM screens warn you when they charge a fee for making a withdrawal. But they do not tell you about any fees your own bank may charge, so $1.50 can turn into $3. Be informed. After all, it’s your money.

A checking account may be a necessity. They allow you to withdraw cash from ATMs, and you can also write checks to pay your bills. Plus, many of today’s checking accounts earn an average interest of 0.31%. Some institutions offer special deals for students, so ask around. For example, U.S. Bank (www.usbank.com) provides student checking with no minimum balance, no monthly fee, free first order of checks, and free online bill paying.

A money market account is another option offered by some financial institutions. These accounts earn higher interest than checking accounts, but you have to maintain a higher balance, and there are restrictions on the number of checks you can write.

As with your budget, use that checkbook register and write down deposits and withdrawals. You don’t want to bounce a check and get hit with big fees.

Other savings options include CDs and mutual funds. If you’re ready to let some money work for you over a long period of time, it will grow larger through CDs, stocks, bonds, and other investments. It’s never too soon to learn about money, so do some homework on your own.

Credit Cards Can Cut Both Ways.
Credit cards can be a useful financial tool if used wisely. You can pay for most store and restaurant purchases with credit cards as well as your monthly bills and online purchases. That itemized monthly statement comes in handy because it lists exactly where your money went. Here’s a tip: make timely payments or else! You risk your future “credit rating.” Without a good credit rating, it will be difficult for you to buy a car, rent an apartment, buy a property, and upgrade your cell phone. Without a good credit history, you’ll be asked to make larger deposits than usual to rent your apartment or to get power and cable plugged in to your place.

“But don’t feel like you have to have a credit card the day you turn 18. It’s a serious responsibility,” warns McBride. “You’ll have plenty of time to establish your credit.”

Here’s the caveat. If you can’t keep up your payments, credit cards have a big downside. Your goal should be to pay off your balance each month, but if you can’t, you will be charged interest (the current average is 13.29%). These interest payments can really mess up a budget. Also, keeping up with minimum payments is critical. Failure to do so will definitely come back to haunt you. Employers and landlords usually run a background check that includes your credit history. You could end up being charged higher rates for car and student loans.

A Word on Loans
Just about everybody takes out loans. The rules on paying them back are really strict. When you qualify for a loan, ask a lot of questions. Make sure you understand your responsibilities. Think ahead, and don’t forget to factor in student loan payments in your budget plan. Some loan payments have to be made while in college and some are deferred until after you graduate, but either way, if you fall way behind on your payments that will be another blot on your credit history.

In most cases, if you miss student loan payments for 270 days or more, you have officially defaulted on your loan. Defaulted loans often are handed over to collection agencies that may charge costly late fees and even take money from your wages.

“Plus, if you default on a student loan you will not be eligible for federal aid if you decide to return to school until the defaulted loan is resolved,” says Lori Bloomberg, assistant vice president for U.S. Bank, Student Banking Division.

Monique Vescia, a recent New York University graduate, makes sure that her student loan payment of $101 per month gets to Sallie Mae on time. “I don’t want them taking back my degree,” she says, laughing. “If I stick to my monthly spending plan, I really don’t have to worry about it.”

Article courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 29, 2007 at 6:25 PM | Leave a Comment (0)

As a science or engineering major, you may be eligible for specific scholarships or financial aid packages awarded on the basis of need or merit. Follow the guidelines below, and you and your parents may be surprised at the outcome.

Before you apply
You may ultimately decide which college to attend based on cost, but don’t begin by assuming one school will cost you more than another—regardless of the prices listed in catalogs.

“I can’t afford a private college or university,” you say? In many cases, it costs no more to go to a private college than a state school. For low-income students, it may cost less to go to a private school. Don’t write off private colleges without comparing the actual costs.

Tips on applying
Meet deadlines. You snooze, you lose. Know the deadlines for the schools you are applying to and ask which applications get priority. At some schools, it’s first-come, first-served: funds are awarded as applications are received. At other schools, applications that come in after a specific deadline receive lower priority. By meeting or beating deadlines, you’ll also have your award notices back from schools in time to compare offers between colleges (and perhaps even negotiate a better deal).

Warn your parents. In order to fill out financial aid forms, your parents will have to do their taxes earlier than they have probably ever done them before, preferably in early January. But don’t use estimated data! Using estimated data on the FAFSA (Free Application for Federal Student Aid) can delay your application and lead to problems if the estimates aren’t accurate.

Neatness/completeness. Financial aid administrators are constantly horrified by what students submit: applications that are coffee-stained, written in pencil, illegible, sloppy, or incomplete. You say you’re interested in studying science or engineering in college? Pretend this is your first class assignment.

Ask for help. Contact the financial aid office at the school you’re interested in if you have any questions. Many schools have 800 numbers and most also offer online resources. Don’t worry about asking “dumb” questions—the process can be confusing, especially if you’re applying for the first time. Besides, it’s much easier for colleges to answer your questions while you’re filling out forms in the middle of December than to have to call you back in March.

Keep copies. Keep a folder with a copy of every application you fill out. You may need to refer to it later.

The FAFSA. Everyone should file the FAFSA (available in both English and Spanish). Check out each college’s priority deadline for aid and your state’s deadline for state aid. Don’t miss them! The FAFSA determines your eligibility for federal loans and grants and for most state loan, grant, and scholarship programs. Even if your family has a high income, fill out the FAFSA. It makes you eligible for aid from the school’s own funds and for federal education loans at low interest rates. File it as soon after January 1 as possible, right after your parents get their taxes done.

You can file the paper form or file online at www.fafsa.ed.gov. Double check your application to be sure all the information, from your social security number to your birthdate, is correct. Questions? You’ll find extensive help available online at www.fafsa.ed.gov, and FAFSA has a great helpline: 800-433-3243.

CSS PROFILE. This form is used by many private colleges to award aid from their own funds. It asks different questions than the FAFSA. You must fill it out online: www.collegeboard.com. Click on For Students, then look under Pay for College. Helpline: 305-829-9793. Cost: $5 registration fee plus $18 per school.

Local scholarships. Local organizations want to give their money to local students. Take the time to apply—many students don’t. Check with your high school guidance office, your town hall, your congressperson, and local organizations such as the Rotary or Lions clubs. Ask each school what their policy is toward these “outside awards.” Many schools used to deduct this money from any grants they gave you, leaving you no better off, but many schools now deduct it from the amount your family must pay or from the amount you need to borrow.

Get help online. Financial aid information is available at:

• www.finaid.com
  
• www.studentaid.ed.gov (English or Spanish)
  
• www.fafsa.ed.gov (see Tips, right)
  
• www.nasfaa.org (the National Association of Financial Aid Administrators website) Click on “Parents and Students.”
  
• www.collegeboard.com/parents—click on “Pay for College.”

Search for scholarships on the Web. Most scholarship search sites (like www.fastweb.com, PC&U’s www.careersandcolleges.com, and www.findtuition.com) are free. It is not necessary to pay for scholarship search services, as the same information is readily available for little or no cost.

Tax credits and tax deductions. There are two tax credits (Hope and Lifetime Learning) and a number of possible tax deductions for college costs. Go to the Internal Revenue Service website at www.irs.gov and search for Publication 970, “Tax Benefits for Education.” Or call 1-800-829-3676 and request Publication 970.

Making a final decision
Compare offers. Compare the true cost to you of each aid package. Which expenses are taken into account (i.e. travel, books, full room and board)? How much of the aid is in grants that do not need to be repaid? What will happen with outside awards—that is, scholarships? Ask if any grant or aid money from the school requires you to maintain a certain grade point average in order to have it renewed each year. If so, be careful: a grade point average higher than 3.5 can be difficult to maintain. For a chart you can use to compare your aid offers, go to www.collegeboard.com/parents and click on “Pay for College,” then “Compare Aid Awards.”

Speak up! Never take anything from the financial aid office as gospel. Call and make your case for a better aid package. Always be polite. Supply any facts on your family’s financial situation that would strengthen your case, and ask about any merit awards that might be added to your package. If you did exceptionally well your final semester in high school, let them know, as they won’t yet have those grades and might award you additional merit aid.

Ask about employment on campus. Jobs are often available even if you have not been given a work-study award.

Look beyond the aid package when deciding on a school. If College A is giving you a better aid package, but College B is the school you really want to attend, it might be worth it to you and your family to sacrifice a little more. As a science or engineering major, the likelihood is that even if you have to borrow more now, in the long run getting the best education will more than pay off.

Tips for filing the FAFSA online: The official Department of Education site is www.fafsa.ed.gov. Filing is free, so don’t get tricked into using one of the sound-alike sites that may charge you $50 or more. If you enter your e-mail address, you will receive your approved application back only via e-mail, so check your e-mail regularly (you’ll get a response within a week). Don’t forget to set your spam blocker to allow email from FAFSA. You and your parents must “sign” the form electronically with separate PIN numbers. Well before you fill out the FAFSA, apply for these numbers at www.pin.ed.gov. If you leave off the PIN, your application will not be processed, and you could miss the deadline.

Article by Deborah Knight, a freelance writer based in San Diego, is a frequent contributor to PC&U’s Science & Engineering edition and courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 29, 2007 at 12:37 PM | Leave a Comment (0)

When Nigel was a high school senior, he knew one thing for sure: He was going to be a pediatric social worker and spend his life helping disadvantaged kids. After his first semester, though, he realized that his true calling was to be a computer analyst, and soon after that he sought nirvana in the fast-growing field of music recording technology. In all he switched majors four times and transferred to two different schools, and the path to his bachelor’s degree was taking way longer than the traditional four years.

Finally, at 23, he was happily settled in as an elementary ed major, with just one semester to go, when the word came down from the financial aid office at his college: He’d run out of eligibility for any more loans and grants. So Nigel decided to drop out for a couple of semesters, to earn enough money to complete his degree.

Sounds like a good idea, right? Wrong. For Nigel, it was just the beginning of a financial aid nightmare. Without a degree, the only job he could land paid minimum wage—and that left nothing for college savings after his rent and car payment. To make matters worse, his college loans came due six months after he had left school.

Strapped for cash, his loans went into default and his credit rating tanked. Now, just one semester shy of graduation, he’s stuck in the twilight zone—not enough money to pay for his last term of college, and a credit rating that’s so bad he can’t even get a loan to finish up.

As Nigel learned, even the best financial aid packages come with strings attached. Most require you to maintain a certain GPA; some expect you to complete your degree in four years; others obligate you to keep playing field hockey or work on the student newspaper even when you don’t feel like it anymore. Nigel didn’t know any of this, and that’s what got him into trouble. “Students and parents don’t understand how the aid process works.,” says Kal Chany, author of Paying for College Without Going Broke (Random House, 2002). “Students may feel they’re too busy to pay attention to all the details, but ignoring them can cost a lot of money.”

Some two-thirds of all full-time college students receive financial aid, according to the National Center for Education Statistics. That’s no surprise, considering college costs much more money than most families can afford. The College Board reports that the average cost to attend a private four-year institution for one year, including room and board, was just about $25,000 in 2002-2003. State schools averaged about $9,600. The good news is that $90 billion in financial aid was available last year, and scholarship growth is outpacing loan growth. But to get the money you’ve got to know how to play the game or—like Nigel—you could be stuck in a financial nightmare. Here are some real-life horror stories. Don’t let them happen to you!

The Night of the Living Deadline
Louisa was about to begin her sophomore year at a private university in Texas when she got her financial aid award letter. To her shock, the amount she would receive was about $10,000 less than she’d been awarded as a freshman. Why? Her father didn’t have the necessary information in January, so he waited until March to fill out the financial aid paperwork and send it in. By the time the school received it, their supply of grant money had already dried up.

“It was awful,” says Louisa. “I still received my government loans, but the grants were the only reason I was able to come to this school in the first place.” Louisa considered transferring to a less expensive school, but her parents were able to scrape together the money she needed through bank loans. The following year, Louisa’s family mailed off all their forms by the second week of January. “I’m in a lot of debt,” says Louisa, now a senior, “and I almost missed out on finishing my education because of that slip-up.”

Avoid the Nightmare
Take deadlines seriously. “Deadlines are a very big deal,” says Paul Marthers, vice president for enrollment at Reed College in Portland, Oregon. “I’ve seen so many eligible students miss out on financial aid because their papers weren’t submitted on time. Colleges have to draw the line on when they can stop making awards.”

Be an early bird. Send in your Free Application for Federal Student Aid (FAFSA) as soon after January 1 as possible. Make sure all the other forms your college requires are in well before the school’s deadline also. Institutions have grant money to help students, but there’s only so much to go around, and if you wait too long, the money could be gone.

Estimate your tax return. If your parents haven’t received all their tax documents yet, they can prepare an estimated FAFSA, based on the last paycheck of the year. Later on, when their tax returns are finalized, they will need to inform the financial aid offices of any changes—but for most families, any changes are minor.

Haunted by the Ghost of Paychecks Past
When Samantha was a high school senior in Los Angeles, she thought she had the solved the mystery of how to pay for college. An outgoing girl who was active in her school’s drama club, she auditioned for television commercials and hit the jackpot. She got a part in a breakfast cereal ad that earned her more than $8,000. But that windfall will end up costing her more than $3,200 in grant money for her freshman year.

“This commercial was a one-time deal,” explains Samantha. “I have no plans of doing any more while I’m in school.” But the college based its financial aid award on the high income that her one-time earnings contributed to. To make up the difference, Samantha will have to take on $3,000 more in student-loan debt for her first year alone.

Avoid the Nightmare
Put your energy into your studies. Concentrate on getting the best grades you can. “Students need to understand that every time they get an A instead of a B it can increase their financial aid for four years,” explains Connie Cooper, president of College Foundation Planners in Tustin, California.

Becareful about how much you work. Don’t think that working three jobs will help you pay your way through college—chances are, it will hurt. “When the federal government determines your financial aid,” says Kal Chany, “for every dollar you earn over $2,500, they will reduce your aid by 50 cents on the dollar. And if you save your earnings, the situation is even worse—you’ll lose 85 cents on every dollar you save over $2,500.”

Trapped in the Divorce Wars
Tom, whose parents split up five years ago, lives with his mom in California and receives child support from his dad, who lives in Colorado. A top-notch student, he applied—and was admitted—to six universities. But he wasn’t so smart about financial aid. When he filled out his FAFSA, he reported the income and assets of his father instead of the much lower numbers of his mother. “Basically, I screwed up,” Tom explains. “I ignored the part of the FAFSA that explains what to do if your parents are divorced.” That was a mistake that put all but one of those six universities out of his reach.

Students whose parents are divorced should base their FAFSAs on the income of the parent they live with. That would have made Tom eligible for substantial grants and scholarships. But by the time Tom learned that lesson it was too late. He filed a corrected FAFSA but five of the schools had already given out all their grant money. The sixth, an elite private school in California, was able to up Tom’s grant by $9,000, allowing him to enroll. He had come perilously close to missing out on college entirely.

Avoid the Nightmare
Know the rules. You think divorce is complicated already? Hold on. It’s about to get way more complicated. Here’s the deal: When you’re filling out your FAFSA, the only parental income to report is that of the custodial parent. That’s not necessarily the parent granted custody by a judge, or even the one who pays your bills. It’s the one you live with most of the time. If the parent you live with has remarried, you will also need to report the income of the stepparent on your FAFSA.

Some colleges—usually private ones—will ask for other forms that detail the income of the noncustodial parent. But when it comes to applying for federal aid, remember: the custodial parent only. When in doubt, call the financial aid office of each school you are applying to and get the lowdown.

Knowledge is power, so make it your business to be well informed. “If Tom had called the schools in the first place,” says Connie Cooper, “and asked, ‘Do I use my mother’s or my father’s income?’ he and his family would have saved themselves a lot of trouble.”

Eaten Alive by Scholarship Sharks
Nobody in Jill’s family had ever been to college, and her parents were determined that Jill —an honor student—would break that trend. But they didn’t have much money, and the financial aid process seemed daunting. So when they learned about a scholarship search service that, in exchange for a $495 fee, would help them find the money for Jill’s education, they signed right up.

“We didn’t know much about college,” says Jill’s mom. “We figured that these people would have the information. We thought they could help us. But it was a waste of money—I could have done it all my own.” After paying $500 up front, Jill’s parents signed forms authorizing the scholarship service to debit $20 a week from their checking account. In return, they received information about federal loans and grants—something they could have learned for free at the high school guidance office.

Avoid the Nightmare
Be cautious. Hundreds of students lose money to scholarship scams each year, and many lose money in to phony scholarship programs. (Check out “Six Signs That Your Scholarship Is Sunk” at www.ftc.gov/bcp/conline/edcams/scholarship). Don’t be taken in. Watch out for high-pressure sales pitches that push you to sign up immediately. No reputable service would require you to make up your mind on the spot.

Rely on free information. Talk with your guidance counselor, consult guidebooks in the library, and access up-to-the-minute sources on the Web. Don’t pay for information you can easily get for free.

Haunted by the Ghost of Lost Loans
Josh was ready to start law school in Boston after taking a year off to travel and teach. But a couple of days before his first law class, he learned that his $12,000 loan application had been denied.

It turned out that although Josh had made payments faithfully on his $15,000 Stafford college loan during his year off, he’d forgotten to pay back a $400 Perkins loan. “It was a stupid mistake, and it really cost me,” he says. Josh’s family scraped the money together for him by dipping into their savings and borrowing from a bank and family members. But for a few scary days, it looked like his dream of becoming a lawyer might not come true.

Missing payments on your college loans can have nasty consequences. Not only can it keep you from getting loans to help you finance graduate school, it can be noted on your credit report, and that can haunt you years later when you try to make a big purchase like a car or a house.

Avoid the Nightmare
Ask for help. If you run into a credit problem, seek out your options right away. You may be able to ask a family member with a good credit history to co-sign your loan, or find emergency funds from your school’s financial aid office. “There’s a multitude of things to put together to bail a person out,” says Jack Williams, director of student financial services at Rider University in Lawrenceville, New Jersey. “If a parent applies for a loan and is denied, we can use that as a basis to award additional Stafford loan resources.”

Know what you owe. By the time you graduate from college, you might have a dozen different loans from as many lenders, so be sure you sit down with your financial aid officer and go over all the details. Know your deferral options and find out what the monthly payments will be and where to send them. Loan consolidation programs may be helpful.

Pay on time. This is really important! And if you’re having trouble making ends meet, call your lenders and let them know. They can arrange for lower monthly payments or even a hardship forbearance until you get back on your feet.

Article by Nancy Fitzgerald and courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 24, 2007 at 12:25 PM | Leave a Comment (0)

For high school seniors applying to college, March and April are typically the months when admission decisions and financial aid award letters arrive in the mail. These letters detail how much aid you will receive from each school. Financial aid packages can influence your school choice, and obviously you want to get the best package possible from each institution. To help you better understand how to get the funding you deserve, Careers and Colleges went right to the source—financial aid directors from American International College, Berkeley College, Iona College, and Westmont College. We asked them to explain the process, give us some tips, and advise us about the pitfalls.

What are the most common mistakes students make in the financial aid process?

Berkeley: The biggest problem is thinking there is no aid for you and not applying at all. Every student should fill out the FAFSA, no matter what you think your need is. A lot of institutions use the FAFSA to award institutional aid, which is not always based on need.
AIC: Often people don’t fill out the FAFSA correctly, which causes a delay. I’ve seen everything from students leaving fields blank to not giving the appropriate tax information from their tax returns to incorrectly reporting their “tax paid.” Not applying on time is another common mistake, so be aware of individual college deadlines.
Westmont: Students and families often have trouble identifying untaxed income for the year. This is an essential part of deciding how much aid you get. Also, make absolutely sure the information on the FAFSA is true. The government has a verification process. If you have been dishonest, you’ll lose out on funding.
Iona: One of the most common mistakes is using a company or service that charges a fee to fill out the FAFSA. They all guarantee some type of aid—but all students are eligible for loans. Plus, filing the FAFSA is free, and these services often make mistakes.

Do you have other advice on filing the FAFSA?
Berkeley: File as early as possible. Certain funds—federal SEOG grants, Perkins loans, and institutional aid—are limited. Colleges get an allocation and once they’re gone, they’re gone. Don’t put off filing because you haven’t done your taxes yet. Fill out the form using estimated income information.
Westmont: Never rule yourself out. At Westmont, I see students who were hesitant and then are pleasantly surprised. We only require the FAFSA, but students must file it by our priority deadline of March 1. Also, students should file electronically; about 90% of our students now file on the Web. Apply early for your PIN number as well.

What advice can you give on getting private scholarships?
Iona: We recommend searching the Web for outside scholarships. Students should check with their parents’ unions at work as well.
AIC: Applying for scholarships—writing essays and filling out the applications— takes time. But if you don’t do it, you may miss out on some opportunities. Berkeley: Scholarships aren’t going to drop in your lap unless you’re a top student. It takes work, but aid is available for even the average student.
Westmont: We also recommend that students use online scholarship search engines—especially those that do not charge. Check into local scholarship foundations. Our local foundations do a marvelous job finding funds for high school graduates in our area.

How does institutional aid work at your school?
Westmont: We award $8 million a year, and we’re relatively small with 1,200 students on our campus. Our full-tuition scholarships go to students who apply early action. We have other academic awards, creative performing arts scholarships, and athletic awards. We offer two transfer-student scholarships as well.
Iona: We offer a variety of academic scholarships depending on high school averages and SAT scores. To receive these monies, you must file the FAFSA.
Berkeley: We give out about $14 million each year. Almost every student who applies gets some institutional aid. Just because you’re not a 4.0 student, doesn’t mean you’re not going to get any. We also have a matching scholarship program. Any student with an award from an outside source may receive a match up to $1,800.
AIC: The admissions office looks at all candidates to see if they are eligible for an academic scholarship. We also have a big athletic scholarship program for a school our size. We have scholarships for football, basketball, hockey, volleyball, lacrosse, tennis, field hockey, and soccer.

Do students take advantage of state aid?
Westmont: More families should take advantage of the California state grants, which can be as much as $8,322. The deadline is March 2.
AIC: Unfortunately, students often miss the deadlines for state aid. To receive state aid in Massachusetts, you must file by May 1. Returning upperclassmen in particular forget that they have to apply each year, and that’s a problem. Half of our students file after May 1 and lose that opportunity.

How do loans fit into your overall aid picture?
Iona: Fifty-eight percent of our total undergraduate population receive aid. Of those students, 48% of their package is comprised of loan money.
Westmont: Our loan volume has doubled over the past five years. Five years ago a typical loan might have been $5,000. Today it’s $10,000. We don’t include parent loans in our packaging. We feel it’s a little misleading to include a PLUS loan because it fulfills the need up to 100%, but we do let students know they are available.
Berkeley: We encourage families to apply for a PLUS loan before an alternative loan because PLUS has a good interest rate and favorable repayment terms. But some parents would rather have their kids carry the debt burden. More and more each year, parents seem less able to contribute to their children’s education. The best use of a private loan is when the parent is unable to contribute, and the student is limited by federal guidelines as to the amount of federal Stafford loan funds he or she can borrow.

How do you feel about students working to pay for college?
AIC: I really like to plug the work-study program. I think it’s invaluable for students. They can really hone job skills, and wherever we can, we try to match the work to their major or course of study. Many financial aid administrators started out as work-study students.
Westmont: One third of our student body works on campus, but many work off campus as well. Working can potentially hurt your aid package, but it is not an issue with students at our campus. If you earn more than $2,440 a year, your wages are included on the FAFSA, and that can raise the amount you pay for your education. Working can be a fantastic way to help pay for college; you just need to be aware of how it affects your aid.
Iona: I definitely think work-study is a great opportunity to earn money on campus. Many times, students are employed in offices for their whole college career and can use that experience on their resumes.

Do you have any suggestions on how to trim costs while in college?
Berkeley: Visit the student affairs office to try to find a carpool home. Take advantage of all student discounts. Also, if you have savings for college, it is usually better to keep them under a parent’s name rather than your own because your parents have a higher asset protection allowance than you do. [The dependent student is expected to contribute a greater share of his or her personal income than the parent.]
AIC: Want to lower your costs? No credit cards! I’ve seen students who have left school because they’ve gotten in over their heads with credit card debt. Some other tips are to buy used books and live within a budget. Sit down and write out a plan based on what money you actually have coming in.

What advice can you give students about working with their parents on the financial aid process?
Iona: The advice I give parents and students is to make sure that the students get involved in the process. Stu dents often say to me, “My parents do this for me.” Well, if students are borrowing money, they need to understand that it is often a loan they must repay—not their parents.

A Note on Negotiation All the aid administrators we spoke with said they did not “negotiate.” The cost of education is an investment most parents and students want to make. Aid administrators give the best aid packages they can, but if families notice an error has been made or if they have a new special circumstance—a loss of a job or sudden illness, for ex-ample—they should contact their aid administrator.

 

Thanks to Our Panel of Experts
Marilyn Faller Vice President Student Finance Berkeley College West Paterson, NJ www.berkeleycollege.edu	Irene Martin Director of Financial Aid American International College (AIC) Springfield, MA www.aic.edu	Mary A. Grant Associate Director Student Financial Services Iona College New Rochelle, NY www.iona.edu	Diane Horvath Director of Financial Aid Westmont College Santa Barbara, CA www.westmont.edu

Article by Don Rauf and courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 23, 2007 at 4:36 PM | Leave a Comment (0)

So you’ve decided on a career in health care. Give yourself a pat on the back. But while you’re at it, give yourself a little push, too, because no one is going to knock on your door and hand you a bundle of money to pay for your education.

Here are 10 steps to improve your chances of financing your education in the field of health care.

1. Get moving! Experts say that one of the main mistakes students make is waiting too long to start their financial aid search. Begin in your junior year (or sooner). If you are already in your senior year, start your financial aid quest now and complete all of the necessary forms as soon as possible. Once you begin the paperwork, stay focused, because procrastination may mean missed deadlines for federal, state, institutional, or community grants, scholarships, or loans. “Each college has its own timeline, and we recommend that students file their information well before the deadline so they are in the first batch of paperwork when the awarding process starts,” says Ellie Miller, director of financial aid at Regis University in Denver, Colorado.
2. In good counsel Make an appointment with your guidance counselor for advice about financing your healthcare studies. “High school guidance offices maintain a list of local groups that offer scholarships for various fields, such as nursing, so we recommend that students always check with their guidance counselors,” says Linda Handy, director of financial aid at The University of Indianapolis. Guidance counselors also have the computer software, books, and other resources that are vital to your search. Consider your high school guidance counselor your central source for financial aid information.

   Regis’s Miller suggests, “Parents and students can also volunteer to update files or perform other tasks for their school guidance counselor in order to get a first look at scholarships. It’s a win-win for everybody.”

   But before you do anything else, learn how the financial aid system works. A good source is the revised, 31st edition of Don’t Miss Out: The Ambitious Student’s Guide to Financial Aid, $12, by Anna & Robert Leider (Octameron Associates, PO Box 2748, Alexandria, Virginia 22301). To order a copy, call 703-836-5480 or go to the website at www.octameron.com. Knowing how the financial aid system operates can help you organize your time and effort.
   

3. From the horse’s mouth Nicholas Flocco, director of financial aid at University of the Sciences in Philadelphia, says that although contacting a college’s financial aid office by phone to discuss your financial need is fine, it is also a good idea to meet with a staff member in person. “It doesn’t hurt to make an appointment with a college financial aid officer, especially if you have reviewed your financial aid package and think you deserve more money,” says Flocco. The middle of September, a relatively quiet period for most financial aid personnel, is usually the best time to do this. Be sure to ask about eligibility criteria and deadlines for aid granted directly from the college—and particularly about department-specific awards or similar types of aid for students who plan to major in the health sciences.

   If such awards are available, make sure you understand the eligibility requirements; you might even want to request a brief meeting with the head of the department to discuss whether you might qualify.
   

4. In the grand tradition When conducting your financial aid search, begin by investigating traditional federal or state funds. “Students should always complete the FAFSA (Free Application for Federal Student Aid) because that is the cornerstone of the financial aid process,” says Miller. Visit www.ed.gov or call 800-4-FED-AID for basic information about federal student aid programs, and ask college financial aid officers for details about state programs. An increasing number of states offer attractive financial incentives, particularly to students who attend a college located within their home state.
   
5. Surf’s up, Dude! The Internet is a powerful tool in your search for funds. To introduce you to the basics of financial aid assistance and help you demystify the process, go to www.ed.gov and under the “Information Centers” heading, click on “Financial Aid.”

   Other good resources include www.careersandcolleges.com, one of the Web’s largest scholarship searches, www.findtuition.com, and www.theoldschool.org, a financial aid resource center. Handy recommends three additional search sites: www.fastweb.com; www.collegeanswer.com; and www.collegeboard.com (click “For Students” and then click “Pay for College”).
   

6. Professionally speaking Virtually every healthcare profession has a professional association, and many of them offer scholarships or awards that can supplement your financial aid package, so contact the national association—or the local chapter of the association—of the specific healthcare field in which you’re interested. For example, if you want to become a dental hygienist, you can find the address and phone number of the national association of hygienists (and other national associations) in the Directory of Healthcare Associations or The Encyclopedia of Associations, which are usually located in the reference section of your local public library. Also, check for associations on the Web by visiting www.pohly.com and clicking on the “Health and Medical Associations” link. You’ll also find contact information for many professional associations in the “A Glimpse at the Profession” articles in this magazine.
   
7. Nooks and crannies If you want to uncover financial aid opportunities, explore all avenues, including websites such as www.estudentloan.com.

   A word of warning from the financial aid experts: College is expensive enough, so don’t shell out large amounts of money for scholarship search firms when you can find the information on your own. “There are so many free and low-cost scholarship searches that you don’t need to pay for them,” says Flocco. “You also don’t need to pay a consultant to help you fill out a financial aid form—a college’s financial aid officer can tell you what you need to do, when you need to do it and how to do it.” However, if you want to purchase a reference guide for under $25, there are listings of current grants and scholarships in books such as How to Go to College Almost for Free, by Ben Kaplan (Collins, 2001).
   

8. Make a pledge Some hospitals and healthcare agencies offer service commitment scholarships, which means that they will pay for all or part of your education if you promise to work for them (at full pay and benefits) for a certain period of time after graduation. Service commitment scholarships are not as prevalent as they once were, however, so you may have to search around to find one.
   
9. Bits and pieces To cover the cost of your healthcare education, expect to construct a financial aid “quilt” to pay for your tuition—that is, look for multiple sources of aid. “Your approach has to be broad,” Handy says. “Start with a federal grant or loan, then maybe add a state award based on need, and if you are academically or athletically talented, try for university aid or bring in an outside scholarship.”

   Here are some examples of how to find alternative sources to fund your college expenses:

   • Ask your parents to contact their company’s human resources department regarding available scholarships or grants for children of employees. Much of the financial aid money that you may have read goes “unspent” or “unclaimed” is in these employer-funded scholarships.
     
   • Check to see if you have any connections to organizations that fund scholarships. For example, if your parents served in the Marine Corps, ask if the Marine Corps offers grants; or if your grandfather belongs to the American Legion, investigate whether that organization sponsors a scholarship for family members.
     
   • Find out if your high school health or science clubs offer grants to students interested in the health fields.
     
   • Consider alternative sources, such as on-campus work-study programs, to provide income while you’re in college.
   
   
10. Don’t give up! It may sound corny, but the experts say persistence pays. “In addition to [using] the information provided by guidance counselors and financial aid officers, get out there and look on your own,” advises Miller. “There are many expenses associated with college, so it’s important to do your research. Don’t stop; keep hunting around.”

The variety of programs (and career possibilities) in the health professions is great, and changes in the way health care is administered will mean opportunities to work in more varied settings than ever before. Elsewhere in this magazine, you’ll get a glimpse of the range of career possibilities available to you.

So if you see your future in the health professions, give serious consideration to the colleges and universities profiled in this magazine—and start doing your homework now!

Article by Diane Bones and courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 23, 2007 at 2:18 PM | Leave a Comment (0)

Are you ready to take your education to the next level? If so, graduate school is probably the next big step in your future. Grad school is an enormous commitment, but the rewards are just as tremendous. There are many reasons people choose to go back to school to get a graduate degree. For some, the lure of increased knowledge is enough. For others, the opportunity for personal fulfillment, career mobility and increased finances draw them back to academia. According to recent surveys done by the National Center for Education Statistics, Americans with a graduate degree earn an average of 35% to 50% more than those with only a bachelor's degree. Sounds great, right? But you're probably wondering how you can afford another degree. Don't let tuition be an obstacle to achieving your goal. There are a variety of government and private loans, as well as scholarships available to help you finance your education. Read on to discover some of the best ways to fund your graduate schooling.

Federal Stafford Loans
Stafford loans are low interest rate federal loans available to most students, even if you pursue your degree only part-time. Stafford loans can be subsidized, which means that the federal government pays the interest until repayment kicks in six months after graduation. The subsidized loans are need based. Stafford loans can also be unsubsidized, where the interest is paid by you during school or afterward, and is available to all students regardless of need. Stafford loans for graduate students have higher loan limit amounts than for undergraduate students. Grad students can borrow up to $8,500 per year of school. These loans have variable interest rates, but are capped at 8.25% or less, depending on yearly adjustments. All lenders offer the same rate for the Stafford loan, although some give discounts for on-time and electronic payment of the loan after graduation. You can find more information on Stafford loans and apply online at FindTuition.com.

Federal Family Education Loan Program (FFELP)
This loan is a variation of the Stafford loan, and it only differs by the means of funds distribution. Instead of loan funds coming from the government, the FFELP offers low-interest rate loans through private lenders, such as banks, credit unions, schools and other lenders. Both programs are governed by federal regulations that determine the loan programs, loan limits and repayment options. Funds from both programs can be used to pay for tuition, fees, and room and board.

Federal Perkins Loans
Perkins loans are another type of federally subsidized student loans. These loans carry a fixed interest rate, currently five percent, which is deferred while you are in college and for the first six months after graduation. The school acts as the lender using a limited pool of funds provided by the federal government. The program limit is $6,000 per year for graduate students and $40,000 overall, including any Perkins loans borrowed as an undergraduate. To apply for any of these federal loans, you must submit the Free Application for Federal Student Aid (FAFSA) available online at www.fafsa.ed.gov. The FAFSA serves as the application for all government aid. Also note that all graduate students are considered independent for financial aid purposes. If you're married, you'll have to provide information on your spouse's finances as well.

Private Education Loans
Private education loans help bridge the gap between the actual cost of your graduate work and the limited amount the government allows you to borrow. These loans are offered by private lenders (banks and credit unions) and there are no federal forms to complete. Private education loans generally have a higher interest rate than government-supported loans, but can help ease the burden created by unexpected school costs like books and lab fees and even emergency costs due to unforeseen medical injuries. To qualify for a private loan, the borrower will have to pass a credit check. Some schools are now offering private loans, so check with your financial aid office for more information. In addition, find more information on private loans and apply online at FindTuition.com.

Scholarships
Scholarships are forms of financial aid that do not have to be repaid and are typically awarded to students with special qualifications, such as academic or artistic talent. You can also be awarded scholarships based on your particular field of study. Hundreds of thousands of scholarships from several thousand sponsors are awarded each year. The best way to search for scholarships is to use a free online database. Visit the scholarship search section on CareersAndColleges.com to see which scholarships fit your unique profile. In addition, go to FindTuition.com to search more scholarships for free.

Getting Started
There are a few main things to keep in mind if you're thinking about going back to graduate school: you should always apply for financial aid every year, even if you think you don't qualify, because there are many factors affecting one's eligibility. In order to ensure that you get the aid you need, you should start your search as early as possible.
And take an ample amount of time to investigate what scholarships you might qualify for as well. This will enable you to determine the amount you will need to borrow. It's also a good idea to call or visit the graduate programs you're interested in to see what financial aid programs are available. Once your research is underway, you may be pleasantly surprised that graduate school really is financially possible. This article reprinted with permission from Graduating Engineer & Computer Careers Magazine Spring 2006. Michelle Suthard is a certified public accountant working for an asset management firm in Chicago.

Article courtesy of www.careersandcolleges.com

Posted by Sarah Ennenga on August 23, 2007 at 11:30 AM | Leave a Comment (0)