Same Day Textbooks
When I wrote about textbook rentals last time, it was still an online-only option, but a new feature from Rent-a-Text.com has the company partnering up with school bookstores nationwide. That means that students can walk into their bookstore, rent a book, and take it home with them that same day–no waiting, no hassle with return postage. To find out if your student’s school participates in this program, simply type its name into the search box on their home page.

Online Options

If your student’s school doesn’t offer on-campus book rentals–or if you simply want to shop around–you can look at the online book rental options as well. Rent-a-Text.com has an online rental option, as do other websites like BookRenter.com, CampusBookRentals.com, and Chegg.com. Each of these offer advertised savings of 50 to 90% over purchasing books brand new.

With most sites you simply find your student’s book (usually the ISBN is the safest search option–you want to make sure you order the right text!), rent it, and your student receives it in the mail a few days later. When the semester is over, they simply send it back. Most of these sites even include free return shipping as part of the deal.

What’s the Catch?

Usability options are different with each website, so you’ll want to do some research before you choose which one to use. Some rental companies allow students to highlight in the books, while others consider any marks in the book to be “damage” and will refuse to take them back.  In this case students are required to purchase them instead, which defeats the whole purpose of renting.

Other Options

If your student prefers to own his or her textbooks for optimal markup and study-session highlighting, you can still shave a good portion off that $800+ price tag. Try one (or all) of these ideas to help save even when you’re buying:

• Buy used! Used textbooks are often in like-new or barely-used condition, and they cost a fraction of the price.
  .
• Skip the bookstore. Bookstores tend to mark up the price even on used books, so I usually recommend perusing the used books at sites like Half.com or Amazon.com (both of which offer books sold by individuals or companies willing to offer a significant price cut). These are great places to sell books back at the end of semester, too.
  .
• Buy an old edition. Most students can still work with a previous edition of a textbook, and they sell for a fraction of the price. Your student may have to borrow a friend’s book for an updated chapter, or figure out slightly different page numbers, but a little extra effort can mean big savings. Just be sure to confirm with the professor first to make sure the earlier edition will work OK for the class.  A quick email from student to teacher can set the record straight.

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

image

Suffering the Consequences

While the college plans to honor the award letters given out to their students, the error will mean making a 20 percent budget cut in the school’s overall spending plan, reducing it from $49 million to $39 million. They have yet to solidify where the cuts will occur, or how it will affect the campus and what it can offer students.

So what exactly caused these problems in the first place?

According to the The Birmingham News, financial aid officials have been mistakenly awarding Pell Grants to students on top of their original award packages, instead of incorporating them into the total–and Birmingham-Southern has been making up the difference. So, for example, if a student was supposed to get a total of $15,000 in aid (including the Pell Grant), the school would award those funds out of their own pocket and then add the Pell Grant, meaning that the student ended up with a total of $20,000.

This costly mistake has been costing the college $5 million every year, and was only recently uncovered. Though the errors were completely legal (over-awarding out of school funds is not against the law) and unintentional, most of the higher ups in Birmingham-Southern’s financial aid office have chosen to resign.

What it Means for Students

A mistake like this might seem like a stroke of luck to students–an extra $5,000 of “free” money could really help with the college bills–but in the end it may turn out to be more bain than boon.

For one thing, a 20% cut in the college budget could seriously affect the overall college experience. In the past schools have cut courses, staff, sports, and other student activities and campus services to help tighten their proverbial belts.

Another problem could arise when award letters come home next year. Students used to getting that larger aid number will now have to scramble to come up with a substitute for erroneously awarded money. This could mean anything from more work hours to taking on higher loan amounts, and for the lower income families who qualify for Pell Grants, that could be a severe burden.

The Boy Scouts Were Right…

…it is crucially important to “be prepared” for as many possibilities as you can. Even without a costly and confusing mistake like the one at Birmingham-Southern, the world of higher education is constantly in flux. Tuition prices go up, loan rates change, job markets can get difficult, and financial aid fluctuates depending on the college and the economy.

While part of my focus with clients is to create a financial “road map” that will see them through the college years, an equally important part is keeping that map current as both personal and outside influences change the way families pay for college.

As you plan out your college funding strategy–either with a college planner or on your own–don’t expect the first solution to be perfect. As with any part of parenting, discovering how to meet your child’s college expenses and the needs of yourself and your family must to be a fluid, evolving process. Plan for the best, but prepare for the worst, and you will come out ahead.

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

image

A New Definition of Book Smarts

The results of this 20-year survey were highly convincing. Researchers found a strong correlation between the number of books in a child’s home with that child’s success in and enthusiasm for academia. For example, children who had over 500 books in their household on average completed 3 years more schooling than those whose homes had a scant number of books. A Chronicle of Education article that outlined the study noted that these students were also 20 percent more likely to finish college than their book-less peers.

One of the most surprising findings, however, was that simply owning books had a stronger correlation with children’s intellectual success than did their parents educational background, occupation, or social class.

Who You Are, Not What You’ve Got?

This type of research has shown up before. The popular New York Times bestseller, Freakonomics discussed a similar correlation between children’s intellectual accomplishments and their parents’ preference for reading and displaying books. However, the authors suggested that it wasn’t so much the presence of the books but the implications of their presence that made a difference to children.

From the “Freakonomics” standpoint, parents who enjoyed having books on hand were more likely to be the type of people to appreciate and value books, literature and education.  And it was those appreciations and values that were passed on to encourage their children’s academic success, not a magical influence of a stack of unread paperbacks.

Regardless of whatever correlation to academic success there may be by having books around the house, a trip to the library or bookstore certainly can’t hurt and there’s nothing like reading good book!

Deborah Fox

High School Students

Grades aren’t the only thing your child should be working on during even the earliest high school years–there are plenty of scholarship opportunities for high school students of all ages, and they should also spend time preparing for the SATs or ACTs and AP tests to increase their competitive edge.

• Private Scholarship How-tos: Search and Apply Early and Often!
• Prepare for the SAT-for Less (or for FREE)!
• Helping Your Student Prepare for AP Tests

High School Seniors

Senior year is an exciting one, full of the anticipation of next year–when your child will be heading off to college! (Where do the years go?) Help your child keep nervousness at bay by learning how to help them get a jump on their college applications, and how to choose the “right” college for your student.

• 5 Ways to Get a Head Start on College Applications
• How to Choose the “Right” College
• Making College Visits in a Tough Economy

College Students

Whether your child is going away to college for the first time or gearing up for the final year of college, you’ll want to review the “Off to College Checklist” for tips about how to update your finances for the college years, and learn how your child can help contribute to college costs as well.

• Your Must-Have “My Student Is Off to College” Checklist!
• Student Income: 7 Easy Ways for Your Child to Make Extra Cash
• How to Budget WITH Your Student & Change Your Estimated College Cost
• 3 Things Your Student Should Know About Loans

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

image

Teaching your child the ins and outs of budgeting for college and how to responsibly use credit cards could mean the difference between graduating free and clear, and stepping into the world of adulthood with a shackle of consumer debt. If you want my two cents, that difference is definitely worth a quick conversation.

Colleges, Congress and Credit Cards

While parents may not be too keen on handing their eighteen-year-old a brand new credit card, colleges are beginning to see it as the new norm. In fact, college bookstores have been lobbying hard to get their vendor side credit card fees reduced for years–and Congress has finally done something about it.

A recent amendment passed in the Senate would lower and regulate the processing fees that banks charge vendors who take credit card payments. Reducing these fees, which are often charged to consumers through higher prices, might actually end up helping students who routinely use their cards to cover the costs of books and tuition.

To Use or Abuse?

Last year I reported on a Sallie Mae statistic that showed the average college student to have $3,173 in credit card debt. That is a large number for any student–not to mention those grappling with growing student loan debt and the tough job market.

You can help your child choose to use (but not abuse) a credit card by discussing the basics of credit card use in college terms. For example:

• Do Your Research. Not all credit cards are created equal. First-time card holders should do their research before applying for and obtaining a card. Students should look for a card with a (relatively) low interest rate - not just a low introductory rate -and no annual fees.  (Keep in mind a “low” interest rate for a first-time card holder will be quite a bit higher than a card belonging to a borrower with established credit.)
  .
• Loans, Not Cards. Credit cards should never be used as a source of college funding. By filing the FAFSA, students that need an education loan can qualify for government student loans like the Stafford or the Perkins loans which have a much lower interest rate than a credit card.
  .
• Only Spend What You Have. The best way for students to use a credit card is simply to treat it like a debit card–only charge something if you have the cash in the bank. Cards should be paid off in full every month to avoid revolving debt and the interest charges that go along with it.

The Upside of Credit Cards

As intimidating as they may seem, credit cards don’t have to be a negative for your student. A properly managed card can help students establish their credit score, which can help them qualify to rent an apartment or get a car loan further down the road.

Once your student has learned to manage a basic credit card, he or she can also look into a rewards card.  Rewards cards can help them get cash back on their purchases.  Yet again, parents and students need to do their research! Not all cards are created equal–some offer cash back while others offer airline miles or points towards gift cards. Some offer a higher rewards percentage on purchases like gas and groceries than on other purchases. (Rewards cards, too, can carry high annual fees or interest rates; and abusing or neglecting a card like this can lead to a heavy debt load.)

Remember, educating your child about building good credit and keeping a low level of debt now can really give your child a boost when graduation arrives!

All the best,
Deborah Fox

photo

Losing Time and Money

Way back in 2007 we found out that an increasing number of students were spending 5 or 6 years in undergraduate college programs just to earn a Bachelor’s degree, which was once considered a “4-year degree.”

As more and more students struggle to complete their degrees in the standard four years, many of them also end up battling the consequences of choosing the “wrong fit” college, and, according to NACAC, 1/3 of them end up transferring schools. That’s bad news for students hoping to graduate on time and parents hoping to save money.

Students that switch colleges mid-degree can end up spending up to an entire year longer in school simply to make up requirements that didn’t transfer from their previous institution. Not only does that set a students back a year on their career path, it also means that an additional year of tuition, room and board, travel and incidental costs add up either on the student’s (or parents’) tab, many times in the form of additional debt.

And that financial tally doesn’t include the emotional cost of having to start fresh at a brand new school, with all new classmates, course schedules, activities and graduation requirements. Talk about a stressful situation!

A Difficult Proposition

As if adjusting to the transfer process itself weren’t difficult enough, the precursors–research, transfer applications, essays and possibly another round of interviews–may be even worse.

NACAC’s recent study found that being admitted to college as a transfer student may be even more complicated than the initial college application process - simply because each school’s criteria can vary so much.

For example, most all colleges in the study agreed that a student’s post-high school GPA was the most important factor when it came to transfer admission; but some of the more selective colleges also took a hard look at factors that students cannot control, such as their state or county of residence, the quality of their high school and their race or ethnicity. Schools also varied as to whether they viewed a GED or transferable credits as positive or negative, and about 11% of surveyed schools were put off by students who wanted to enroll only part-time.

What You Can Do

If you are still in the process of trying to find your child’s dream school, don’t be seduced by an impressive website or well-known name before you’ve figured out what your student really wants and needs in a postsecondary environment. Choosing the right college is key if you want to keep your college costs down and your student happy–that’s why I’ve dedicated a whole category of posts to selecting the right college. I’ve even shared a simple 4-step formula to finding the right school for your child.

College is certainly a big step for both parents and students, but with careful planning and a positive attitude, it can be your child’s next great adventure.

All the best,
Deborah Fox

photo

What is Work-Study?

The Federal Work-Study program–which, as its name implies is funded by the federal government–helps provide part-time on-campus work to help students cover the cost of higher education. Over 3,400 colleges and universities participate in the Work-Study program and they offer a wide range of job opportunities.

Federal Work-Study is not a loan, scholarship or grant. Students who qualify for Work-Study are expected to perform work as they would for any other job and, in return, receive a regular paycheck. The money is paid to the student, not directly to the school, so there are no federal strings on how the student uses the money.

The award amount (the maximum amount a student can earn in a Work-Study job) is determined by the college’s financial aid office. If your student qualifies, it will show up on his or her award letter.  Work Study is a need-based program.

How Do Students Apply for Work-Study?

Filing the Free Application for Federal Student Aid (FAFSA) is the only way to qualify for Work-Study. (It is also the only way to apply for federal student loans–read more about that here.)

Who is Eligible?

Students attending undergraduate, vocational and graduate schools can all apply for Work-Study, but they must fall into the federally established guidelines of financial need to be considered eligible. You can read more about the federal formula for determining eligibility at the Department of Education’s Work-Study site.

What Type of Wages Do Students Earn?

By law Work-Study jobs must pay at least the federal minimum wage, but many of them pay more. The wage is typically determined by the job type, with more difficult positions paying higher hourly rates.

Are Students Automatically Assigned a Job?

No, students who are awarded Work-Study are not assigned a job. Rather, the Work-Study award allows students to apply for Work-Study positions on campus (students who do not receive the award cannot be hired for these jobs.)

Note:  The current economic environment has caused many schools to cut back the number of Work-Study jobs they make available to students.  Now more than ever, it is important for a student to try to secure a Work-Study job as soon as possible because there are more Work-Study awards given out than there are jobs available.  Incoming freshmen: Contact your college’s financial aid office ASAP!

Is Work-Study Better Than a Regular Job?

The answer to this question will depend on your student’s personal situation. With the economy tight and job competition tough, it can be a real advantage to have the option of pursuing both regular and Work-Study jobs (which have a smaller pool of potential applicants.) Since they are usually on-campus positions, however, Work-Study jobs can often be more flexible about work hours (and sometimes even offer opportunities for study time.)

On the other hand, your student may find that he or she can earn a higher wage or pursue a job more relevant to his or her career goals by searching outside the Work-Study sphere. Your child’s best bet will be to consider and apply to both types of jobs. You can help your student weigh the pros and cons once he or she has a solid job offer.

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

photo

As with much of the news during this slow-paced period of economic recovery, this year’s graduates have found themselves in a good news/bad news situation.

The good news? Students are expected to have better luck landing jobs this year than they did in 2009.

The bad news? Their starting salaries are expected to be significantly lower–at least for most college grads.

The Numbers Game

CNN Money recently reported the projected salary figures for 2010 graduates. Compiled by the National Association of Colleges and Employers (NACE), the numbers show that this year’s graduating class should expect to make an average of 1.7% less than students who were hired in 2009.

However, that 1.7% was only the tip of the iceberg. The more detailed NACE projections got much more complicated and, for some students, much more depressing. When it came to salary decreases–or increases–it all came down to the student’s career field:

Major                        % Increase/Decrease                Average Salary

Liberal Arts                          Down 8.9%                             $33,540

Business Management         Down 8%                                $42,094

Marketing                            Down 2.1%                             $42,710

Computer-Related              Up 5.8%                                  $58,746

Engineering                         Up 1.2%                                  $59,149

Electrical Engineering          Up 3%                                     $59,326

The Real World

While the NACE figures show a projection for our national average, the truth of the matter is that students’ opportunities–and starting salaries–will vary greatly based on many different variables, including everything from location to previous experience. Many students will find the application and interview process difficult and daunting, and others may be shocked at what appears to be a lower-than-expected salary (or hourly wage) offer.

The name of the game this year is realistic humility. At a time when many highly experienced adults have struggled with the job market, it is not uncommon for freshly graduated students to end up working low-wage jobs to help make ends meet. When it comes down to it, low wages are better than none at all.

Pressing Forward

Not too long ago I discussed how to prepare your child for the disappointing experiences of life, and the first job may just be one of them. If your child’s first shot at full-time work is not what he or she hoped, remind him or her that sometimes it takes time to work your way up the proverbial ladder–and help him or her come up with ways to keep moving forward.

For example, if your newly graduated student is already working in his or her dream field but not yet at the dream pay level, remind your child that this is an important time to go the extra mile–log extra hours, show good quality work and demonstrate their value to the business. If your child has taken on a job in another field–or even just a part-time job to cover loan bills while the career search continues–help him or her brainstorm ideas for networking, search for internship positions, or develop a portfolio.

Our students may be living in a different economy than the graduates of 1999, but hard work (and a healthy dose of patience) will still help your student work not only toward a better salary, but also toward a healthier appreciation for work itself.

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

photo

Many of these schools have reportedly doubled (or even tripled) their financial aid offerings over the past decade, but Dartmouth’s latest plan–to offer loan-free aid to students of all income levels starting with the freshman class of 2011–has just hit a brick wall.

Making Cuts

According to USA Today, private colleges (whose yearly cost of attendance can top $50,000) have been fighting hard to keep their costs down and their attendance numbers steady. They have cut sports teams, made training and staff cuts, cut benefits to remaining staff, and put building projects on hold, all in the name of keeping the financial aid coffers full. Dartmouth officials recently announced a plan to lay off 76 employees in an effort to boost the budget by $100 million. Unfortunately, college officials say that even closing this gap will not enable them to fulfill their dream of free tuition for all their students.

Making Do

Though times are still tough–even for prestigious private schools–many colleges are making a solid effort to ensure that their students still receive the aid they need. Dartmouth, for example, recently approved its lowest cost of attendance increase ever (4.6%), and plans to increase the financial aid budget by 10%.

Free-for-Some

While Dartmouth has been forced by budget restrictions to cut the plan to offer no-loan aid to all students (regardless of family income), that doesn’t mean the “No Loan” program is disappearing. According to the Dartmouth News, the college plans to stick by its current program, which offers free tuition to students whose families make $75,000 or less each year - a generous offering that is well above the $30,000 income limit their no-loan program had in 2007.

Uncertain Times

With student loan policies in flux and college financial aid offerings still shaky, many families feel more nervous about funding college than ever before. The key to tackling the ever-rising college costs is to create a personalized plan that your family can use to map out how to save and pay for college, even as your family’s goals and needs change.

Because anyone’s situation can change in an instant, it is important for you to be able to adapt and change course so you can ensure the best education for your children, and the best financial outcome for the whole family. Times are changing, and your college plan needs to evolve to keep pace.

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

photo

Are AP Tests Important?

What’s all the hype about Advanced Placement (AP) tests beyond helping with college admissions? Believe it or not, scoring well on an AP test can actually be one of the best ways your student can head towards an early college graduation date (and, consequently, a lower overall price tag for his or her college education!)

Are you sitting up straighter now to read further? Here’s how it works: Your child takes an AP course in school, which focuses on teaching him or her about a subject at a college level. In early May, students across the country take their AP tests in subjects like Physics, English Literature, foreign languages and more (there are over 30 options!) Their tests are scored from 1 to 5, with 5 being the highest score.

How can a test help your child graduate early? Over 90% of four-year-colleges accept AP scores for advanced placement in college or for college credit. That means if your student scores in the qualifying range (usually a 3 or above - talk to your student’s college Admissions Office about their requirements) he or she may actually get course credit for passing his or her AP test.

How Can Your Child Prepare?

Course work during the school-year should have built your student’s foundation of knowledge, but it is still important that he or she uses this last month to prepare well for the AP testing.

• Review. Review time is critical, especially when it comes to the units your child studied way back in early fall. Encourage your child to attend review sessions (often offered by teachers at their high school), flip through an AP review book (my son loved these) or form a study group. There are also lots of free AP study helps available online.
  .
• Be Prepared. I outlined several ways your child could prepare for the test ahead last time I covered AP test prep, and I’d like to remind you of some of those thoughts again. First-time test takers might want to talk to their teacher or other students about the format, length and overall feel of the exam so they can be mentally prepared for the task at hand. All students should go over the “what to bring” list and be sure to have all the necessary items (identification and extra #2 pencils, for starters) packed and ready to go the night before the test.
  .
• Stay Fit. Being well rested and healthily fed will help keep your child’s brain from going foggy in hour two, so be sure he or she works on getting a good night’s rest for at least the week before the exams. He or she should also be sure to eat a healthy breakfast and take a snack along for breaks between tests (apples are a great, healthy alternative to a sugary nibble  or energy drinks–they’re said to help you stay alert, but without the sugar crash afterward!)

What Happens Post-Test?

Once your child has completed the AP tests, scores will not arrive until July. This is also when College Board will submit the scores to his or her college choice(s) (as long as your student entered at least one college during test taking.)  If no colleges were entered on the day of the test, you can call in to College Board or go online to add colleges and request the scores get sent in.

In the meantime, celebrate! Your child has worked hard and has survived a long season of study to get to that first post-test day - so don’t forget to provide some positive feedback and let your child know you are proud of all the effort he or she has put out!

If you have a student with more high school years ahead, discuss the AP experience with your child before it is time to choose a class schedule for next year. Did he/she enjoy taking an AP class? Was the academic level of the course appropriate or was it overwhelming? Does your child wish to take more AP courses? Advanced Placement courses can be very intense–sometimes even more intense than freshman year college courses, depending on the teacher–so definitely talk to your student about his or her comfort level with this level of curriculum. As wonderful as those early college credits can be, students shouldn’t feel pressured to take on courses that will cause their stress level to skyrocket.  Taking on too much work can sometimes end up as more of a setback than a boon.

Good luck and happy testing.

All the best,
Deborah Fox

Deborah Fox is the founder of Fox College Funding®, a nationwide company that helps families find creative ways to reduce their college costs.

photo