How To Take The Stress Out Of Planning and Paying for College


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Great info for anyone facing college in today\'s world

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How To Take The Stress Out Of Planning and Paying for College

  1. 1. How to Take the Stress Out of Planning and Paying for College Presented by Jack O’Donnell Educational Consultant College Assistance Plus 315 420-4376 [email_address]
  2. 2. Impact of College Debt <ul><li>Total student borrowing has more than doubled nationwide in the past 10 years </li></ul><ul><li>$86 billion in student loans. That does not include the private loans or loans that parents take out </li></ul><ul><li>Private loans are up 7 times what they were </li></ul><ul><li>2/3 students graduate with debt </li></ul><ul><li>Taking longer than 4 years to get a bachelor’s degree </li></ul><ul><li>Each additional year can increase debt by 25% </li></ul><ul><li>44% of students take 5 or more years to finish </li></ul>
  3. 3. Impact of College Debt <ul><li>Rochester bankruptcy judge said he sees about 12 bankruptcy cases a month with significant student debt </li></ul><ul><li>$100,000 debt would be a monthly payment of $550 for the next 20 years </li></ul><ul><li>College debt effects well-being, quality of life, financial security, career and lifestyle and choices </li></ul><ul><li>College debt impacts where student would live, jobs, when to buy a house, when to start a family, going to graduate school, when to retire </li></ul>
  4. 4. Among those graduating college with debt: <ul><li>34% say they have sold possessions to make ends meet </li></ul><ul><li>42% say they live “paycheck to paycheck” </li></ul><ul><li>27% say they delayed getting a medical or dental procedure </li></ul><ul><li>31% say Madonna will be a grandmother before their debt is paid off </li></ul>
  5. 5. Impact of College Debt <ul><li>Total charges have risen on the average of 6% a year or 300% over the last 30 years </li></ul><ul><li>Beginning annual college grad earnings, after inflation adjustment, have remained basically flat </li></ul><ul><li>After 1-15 years 69% of graduates are still paying off debt </li></ul><ul><li>Average outstanding debt is $29,000 </li></ul><ul><li>Will take more than 10 years to pay off-longer if they have credit card debt, car loans and mortgages. Up to 40 years is not unheard of </li></ul>
  6. 6. Impact of College Debt <ul><li>“ Not just borrowing their college tuition; borrowing from their </li></ul><ul><li>Future” </li></ul><ul><li>Richard Davies, AllianceBernstein Investments </li></ul>
  7. 7. Strategies to avoid or minimize debt <ul><li>Most expensive purchase. Use shopping strategies </li></ul><ul><li>Determine your criteria and only apply to those schools </li></ul><ul><li>Determine what your price range is and only look at those schools </li></ul><ul><li>Compare colleges. Go online and check freshman class profiles. Compare profiles to your achievements and test results </li></ul><ul><li>Seek professional counsel </li></ul><ul><li>Negotiate the final price and re-negotiate every year </li></ul>
  8. 8. Strategies to avoid or minimize debt <ul><li>Start early-7 th /8 th grade </li></ul><ul><li>Prepare for SAT and/or ACT early. Good scores increase odds of receiving merit scholarships and grants </li></ul><ul><li>Develop a realistic college budget before starting to look at colleges </li></ul><ul><li>Discuss financial situation with family and share financial information so that students are more involved with choices. </li></ul><ul><li>Make clear goals and boundaries. Don’t visit colleges you cannot afford </li></ul>
  9. 9. Strategies to avoid or minimize debt <ul><li>Look at graduation rates, retention rates, career placement rates, career salary range, and grad school rates when comparing colleges </li></ul><ul><li>Apply to colleges where the student’s academic abilities will be well above the freshman average instead of applying to “stretch” schools. Take the emotion out of college application! </li></ul><ul><li>Getting a degree with debt vs. getting NO degree and still have the debt </li></ul><ul><li>Understand Academic Selectivity and use it for your advantage </li></ul>
  10. 10. Academic Selectivity <ul><li>Most Selective (1360/33/75%) </li></ul><ul><li>Very Selective (1310/30/50%) </li></ul><ul><li>Moderately Selective (1190/22/50-50%) </li></ul><ul><li>Open/Minimally Selective (High School diploma or GED) </li></ul>
  11. 11. Strategies to avoid or minimize debt <ul><li>“ Most Selective” and “Very Selective” colleges might help get the first job. What really counts is the final degree, interpersonal skills and communication. </li></ul><ul><li>If going to grad school, being at the bottom of the class is detrimental to getting into a good grad program (final degree) </li></ul><ul><li>Look outside your comfort zone. Apply to colleges out of state in other parts of the country. Colleges desire out of state students and may be willing to offer more </li></ul><ul><li>Look at different majors that colleges will offer grants for </li></ul>
  12. 12. Strategies to avoid or minimize debt <ul><li>Go to community college for 2 years. Become a “proven” college student and transfer to a Selective School for the final 2 years </li></ul><ul><li>Military schools and online school </li></ul><ul><li>Strive to graduate in 4 years with plans for a specific major or career and avoid changing majors and colleges, which add considerable expense </li></ul><ul><li>Take AP courses in high school </li></ul><ul><li>Apply for all scholarships and grants </li></ul><ul><li>Work/live near a college out of state for a year to qualify for lower state-resident tuition </li></ul><ul><li>Don’t use student loans for unnecessary expenses (TV’s, concerts) </li></ul>
  13. 13. Strategies to avoid or minimize debt <ul><li>Research the salary range for your intended career and determine how much student loan debt you can manage with that income </li></ul><ul><li>Complete FAFSA (Free Application for Federal Student Aid) on time. 45% of FAFSA have errors which can set the student back by several months and miss out on available aid </li></ul><ul><li>Press financial aid officers hard for more aid </li></ul><ul><li>Remember that colleges are big business and they are looking to fill every seat at full price </li></ul>
  14. 14. Get a Degree Not Debt
  15. 15. Contact Me to Learn More <ul><li>Jack O’Donnell </li></ul><ul><li>Educational Consultant </li></ul><ul><li>College Assistance Plus </li></ul><ul><li>315 420-4376 </li></ul><ul><li>[email_address] </li></ul>