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

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


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