My College Guide » Financial Aid Information, Articles, Tips and Help for Students and Parents

Just How Much Money Should You Spend on College Anyway?

admin — Tue, 15 Nov 2011 12:03:26 +0000

College is expensive, and it’s getting far more expensive every year. This situation is leaving many young people with the daunting task of trying to determine just how much debt they should take on at a very young age. Is this unfair? You bet it is unfair, but it’s also the reality of the situation that most of you may find yourself in. Until the day comes that a college education is free (don’t hold your breath), students will have to wrestle with not only how much to pay for a college or university degree, but also whether or not it is worth it.

Debt Versus Brand Name

Big name colleges and university degrees do not come cheaply. This issue has left many students asking if they should pay the “big bucks” for that brand name degree instead of selecting a less expensive option. There is a real and legitimate argument to be made that when it comes to many majors, it just doesn’t make sense to pay what it costs to go to a big name university or college.

There are intangibles, of course. For example, you have to consider the connections you might make at a certain school and being able to impress others with a school’s name recognition. But if you are planning on being a teacher, do you really need to spend an extra $30,000 or $50,000 or more for your degree? In general, the type of degree that you are planning on receiving should be taken into consideration before you opt for a mountain of debt!

Weigh Your Options Carefully

Just because you were accepted to a big name college or university, doesn’t mean that you have to attend that educational institution. Many students say, “Well I got in, so that is where I will go…” Your thought process should be more comprehensive, as you should weigh the options carefully. Selecting a less expensive university or college could open up different opportunities. For example, you could opt for graduate school, or get a professional degree such as a law degree or an MBA with the money you save. Some schools even offer scholarships to attract higher-level students, while others turn those students away.

Consider Your Degree When Deciding How Much to Spend

If you are planning on earning a degree that ensures great pay down the road, then you might not need to worry too much about the debt that you accumulate in college. However, you should keep some issues in mind. Many people earn degrees in certain fields, only to discover that they hate the profession that goes along with the degree. This means that they often switch to careers that pay less, often far, far less. At this point, the high paying career they believed they would have doesn’t materialize.

Determining how much to spend on college isn’t necessarily easy to figure out. If you know exactly what it is that you want to do for a career, then this decision may be easier for you than it is for others. Taking your time and thinking about how your college debt may impact your future is a savvy move and one you are quite unlikely to regret.

Get a Head Start on Your FAFSA: Things You Can Do Now

admin — Tue, 04 Oct 2011 12:52:48 +0000

Ready to get a head start on your FAFSA? Here's what you need to know. Photo Credit: frozen jek

If you’re hoping to get financial aid when you head off to college next year, you probably already know you need to complete the Free Application for Federal Student Aid (FAFSA). But do you know what you’ll need to get started?

You’ll need quite a few financial documents. So even though you can’t officially complete the FAFSA until January 1, 2012, it pays to start planning now. When it comes to financial aid, the more organized you are, the better off you’ll be.

So what information will you need to start your FAFSA?

As the student, you’ll need:

1. Your social security card
2. Your driver’s license number
3. Your 2011 W2 forms
4. Any other financial records that apply (investment accounts in your name, etc.)
5. Your 2011 tax return (it’s easier to finish it before you apply. Otherwise, you’ll have to estimate your income and then return to complete the form after your return is completed)

If you are a dependent student (i.e. your parents will be claiming you on their tax return), you’ll also need their financial information. Documents you’ll need include:

Your parents’ 2011 W2s
Your parents’ 2011 tax return
Records of untaxed income in 2011 (IRA deductions, child support, etc.)
Mortgage information (both for your home and any businesses or rental properties your parents own)
Current bank statements

Is there any way to get an estimate of how much financial aid you can expect before January 1, 2012?

Short answer? Yes. You can use FAFSA4Caster to get an estimate of how much financial aid you might be able to expect from the federal government.

Obviously, since you won’t have the most recent financial information available to you yet (since 2011 W2s won’t be available until January), the numbers you get will not be set in stone. But they should give you a good place to start, in terms of deciding how much other financial aid you need to seek out.

When should you complete the FAFSA for real?

Well, the deadline isn’t until June 30,2012. But generally speaking, the earlier you apply, the better. After all, the early bird gets the worm, as the saying goes…

By taking these steps, you’ll be well on your way to financial aid success when official FAFSA-filing season begins. For more helpful information about filling out the FAFSA and getting through the college admissions process with your sanity intact, subscribe to our blog today!

How To Find the Right Type of Scholarship: Understanding the Lingo.

admin — Tue, 20 Sep 2011 13:41:14 +0000

You don't need a dictionary to understand college scholarships. Just this handy blog post! Photo credit: GadgetGirl

Last week, we had you do a little homework to determine what kind of scholarships could be right for you. This week? We’re going to define the most common types of scholarships for you so you know how to tell when you’ve found the right one!

Merit-based scholarships

These are the most common types of scholarships. They are awarded to students who can demonstrate high levels of achievement in a certain area. Often, that simply means they go to people with a really great GPA or rock star test scores. But merit scholarships can also be awarded on the basis of athletic ability, extracurricular involvement or even volunteerism.

Need-based scholarships

As you might expect, these scholarships go to students who really need them, financially speaking. The majority of need-based scholarships come from the federal government and are awarded based on information you’ll supply in your FAFSA. However, there are also tons of organizations with need-based scholarship programs. It’s just a matter of finding them.

Student-specific scholarships

These are the scholarships you can get just for being you! Student-specific scholarships are given out to people who satisfy the specific requirements of the organization giving out the scholarship. So, a scholarship awarded because of your ethnic background would be considered a student-specific scholarship. So would a scholarship you get because of where you live or what you’re interested in.

Career-specific scholarships

Have you known what you want to do for a living since you were 10? Do you know what you want to major in, where you want to intern and what company you want to work for? If so, our hats are off to you—you’re quite the planner! Career-specific scholarships are made for people like you—or at least for students who know what they want to major in. They’re awarded by industry-specific and career-oriented organizations looking to help the next generation of professionals succeed!

College-specific scholarships

Once you know where you want to go to college (and get accepted), you could be eligible for a scholarship awarded by that college. These types of scholarships are sometimes given to help students who have a financial need, but can also be awarded on the basis of personal or academic achievement.

And now you know what the five major types of scholarships are! Although there are many kinds of specific scholarships available, for the most part they fit into one of these buckets. Hopefully, this knowledge will help you as you begin (or continue) your scholarship search.

We’ll be bringing you information about how to find scholarships all year long, so subscribe to our blog today and make sure you don’t miss a thing!

Tips To Find College Scholarships: 4 Questions To Ask Yourself

admin — Thu, 15 Sep 2011 14:44:18 +0000

You don't have to learn how to play the bassoon to get a college scholarship. Photo Credit: Paxsimius

Everyone’s heard about the friend of a friend who got a scholarship to Harvard because of his bassoon-playing prowess. And been told the urban legend of the jock who landed a full ride to his first-choice school – despite his ridiculously low test scores.

But what you don’t hear about are the hundreds of thousands of students just like you who have gotten the scholarship money they need to make their college dreams come true. How? By finding scholarships that match up with their interests, talents and background.

You can do it too! To find a college scholarship that’s right for you, start by asking yourself these four questions.

What do I love to do?

Catalog your interests and activities. Do you play an instrument? Garden? Develop mobile apps just for fun? Research your family’s genealogy? No matter what your hobbies are, chances are good that there are organizations out there who would love to give you a college scholarship for pursuing them.

Make a list and then start your research!

What do I want to major in?

Professional organizations exist for just about every industry you can think of. And most of those? Love to support the next generation of workers. So, if you are fairly certain you know what you want your college major to be, start researching associations that could potentially help you!

What is my family’s background?

There are a great many college scholarships for minorities available, of course. But there are organizations centered around almost every background—if you look. There are scholarships for Polish Americans, Italian Americans and even for women whose family history includes Revolutionary War combatants.

In other words, it pays to do a little research into your family tree—and some surfing on the web.

What scholarship help is available in my neighborhood?

Look around you. Not literally at your neighbors—but at the businesses and organizations in your community. Does the Chamber of Commerce have a college scholarship program? How about the local Boys and Girls Club? There could be dozens of college scholarship opportunities—right in your own backyard!

These are just a few of the ways you can find college scholarships. For more ideas, read about the college scholarship resources you might have missed! And don’t forget to subscribe to our blog—we’ll be bringing you advice for finding great college scholarships all year long!

How To Speak Financial Aid: A Glossary of Terms

admin — Tue, 30 Aug 2011 12:54:40 +0000

Having trouble deciphering financial aid-speak? We're here to help! Photo Credit: greeblie

If you’re like most college freshmen-hopefuls, chances are you’ll be looking for some financial aid to help foot the bill. The problem? The terms used in financial aid forms aren’t exactly words you throw around in casual conversation. It can seem like they’re speaking another language!

But never fear. We’re here to help. Below you’ll find a few of the most commonly used financial aid terms – along with their definitions.

Financial Aid Application Terms

Free Application For Federal Student Aid (FAFSA) – This is the official application for federal financial aid. Colleges and universities will require you to fill this out in order to apply for any kind of financial aid.

Award Letter – This is the official document you’ll get from colleges listing exactly what financial aid has been, well, awarded to you. It will tell you how much your family will be expected to pay (expected family contribution) and how much it will cost to attend that school when all is said and done (cost of attendance), as well as list the terms and conditions of your financial aid.

Financial Aid Package – Picture all your financial aid – all of the scholarships, grants and loans awarded to you from both federal and private sources – put into a box and tied up with a pretty bow on top. That’s your financial aid package.

Types of Financial Aid Defined

Grants – Grants are considered “gift aid.” They give you money for college and don’t have to be paid back. They can come from federal sources (such as Pell Grants), but are also available from states and private organizations.

Loans – Student loans are just what they sound like – money given to you to pay for college that needs to be repaid. Eventually. There are many different types – both federal student loans and private loans. You’ll want to read the terms for your loan options very carefully.

Scholarships – Scholarships are also considered “gift aid,” so you don’t have to pay them back. They are awarded for a variety of reasons, some simply because of merit or academic excellence, others because you’re pursuing a certain major, have specific interests, have financial need…the list goes on and on.

These are just a few of the many financial aid terms you’ll need to know. We’ll go more in-depth in a future post. Have a specific financial aid term you’d like defined? Leave it in the comments! And don’t forget, we’ll be bringing you great advice about financial aid all year long, so subscribe to our blog today!

How To Talk To Your Parents About Paying For College.

admin — Thu, 11 Aug 2011 13:03:12 +0000

Do you know how much your family can help with college tuition?

While some kids can rely on mom and dad to pick up the whole tab for college tuition, many are not so lucky. Do you know how much financial support you can expect from your parents? If not, it’s time to find out.

The earlier you find out how much your family can help you to pay for college, the more time you’ll have to find ways to make up the difference yourself. So don’t put it off! Talk to your parents now, before college application season heats up.

Here are four tips to help the conversation go smoothly.

Pick a chill moment. Don’t try to discuss college tuition when your parents are tense, stressed or rushed. It probably won’t end well. Instead, wait until you’re all able to focus on the conversation without a lot of other distractions. Having trouble finding time? Try talking to your mom or dad during a car ride.
Be direct. The urge to beat around the bush might be strong, but don’t give in. You’re much better off approaching the matter head on. Try saying something like, “Mom, I really need to start thinking about where I want to go to college. Can you give me an idea of how much you can afford to chip in for college tuition?” Your parents will appreciate the grown up attitude.
Accept their answer graciously. The number they give you might be disappointing, but don’t whine about it. Realize that your parents do want to give you everything they can – but sometimes the money just isn’t there. Let them know you appreciate any help they can give you.
Brainstorm ways they can help you save for college. No matter what their answer is, it’s safe to say that your parents want only the best for you – and will be more than willing to help you find ways to save money for college. Whether that means driving you to a part-time job or getting you the homework help you need to pull down killer grades, you’re sure to find tons of great ways you can work together to make your dreams happen when you sit down and talk about it!

And don’t forget—there are plenty of affordable college options out there. Check out this post about college options for low-income students. And for more great information about paying for college, subscribe to our blog!

“Top 10″ List – Your College Search Just Got Easier!

admin — Thu, 21 Jul 2011 14:21:45 +0000

Got questions about getting into college? We have the answers.

Summer is fast winding to a close, and when it does, the college search process will heat up for millions of students across the country. Worried about how to start? Trying to simplify your search? Are you even ready?

To help you get prepared, we’ve created My College Guide’s “top 10″ list based on our most popular college search posts!

Why are they popular? Easy, they provide helpful information on finding the college that’s right for you, figuring out the college admissions process and identifying ways to pay for college.

Let’s get started.

1. Got a pet that you just can’t stand to leave behind? In You Can Take Them With You: Pet Friendly Colleges and Universities, you’ll see which colleges and universities are pet friendly.

2. Need help paying for college? Who doesn’t? Colleges for Low Income Students: Free Tuition, No Loans, and Full Rides provides a list of colleges that offer full rides or free tuition.

3. Looking for a college scholarship? Think the scholarship options are limited? There’s more out there than you think! Be creative, think outside the box and check out our Super List of College Scholarship Websites.

4. Wish you could get advice about getting college scholarships? Read tips about finding scholarships from the pros in Fastweb, Scholarships.com, Super College: Scholarship Tips From Pros in the Know.

5. Trying to get through the financial aid process? Worrying about all the forms to fill out for college funding? Learn about the financial aid process from the people behind the scenes at the University of Michigan in our post, College Tuition and Financial Aid Explained at the University of Michigan.

6. Searching for affordable colleges? Need to find a college that’s affordable with or without financial aid? We’ve got you covered. See our list of 8 of America’s Most Affordable Public Universities.

7. Want to get an edge on the competition for admission to your dream college? Check out 3 Ways to Get into Your First Choice College (Besides Getting Good Grades) and discover things you can do before you ever fill out a college application to help you get the attention of college admissions officers.

8. Nervous about those upcoming college interviews? Read 5 Tips to Help You Prepare for Your College Interview and learn what you need to know to succeed.

9. Want to make sure admissions officers remember your name? Learn how to stand out from the pack with How to Increase Your Odds After Sending in Your Application.

10. Worried about the economy? Want to get a job right out of college? Then you should read The Most Employable Majors: 5 Concentrations That Will Land You a Job Straight Out of College.

We’re always sharing more information on getting into college, paying for college and college help, so subscribe to our blog today and stay ahead of the curve!

If you’re looking for answers to specific college and career readiness questions, Ask The Guru.

Photo courtesy of Ninja M.

5 Things To Know About Saving For College With a 529 Plan.

admin — Mon, 11 Jul 2011 14:00:11 +0000

Graduation is closer than you think. Start saving with a 529 plan!*

If you’re like the majority of high school students, you’re probably a little bit worried about finding money for college—especially if your parents haven’t already started a college savings fund for you. But you know what? It’s not too late.

Starting a 529 plan can be a great way to save for college—even if it’s only a couple of years away! Read on to find out what you need to know.

1. Anyone can contribute to your 529 plan.

Although you have to be 18 to start a 529 plan, once it’s open, anyone can help you save for college—parents, grandparents, aunts and uncles—even friends.

2. People can contribute a lot of money to your 529 plan.

With a 529 plan, you can save up to $12,000 a year for college. And, although this probably won’t matter unless you have a millionaire in the family, your 529 account can hold up to $300,000 in college savings!

3. You can link your 529 plan with a Upromise account, helping your college savings to grow even faster!

With Upromise, the things you buy every day can help you earn college money. Even better? Friends and family can all help you save, just by linking their purchases to your account!

4. The funds from your 529 plan can help you pay for college no matter what university you choose.

While all 529 plans are state run, the investments you make with them cross state lines. So your 529 plan from Illinois can be used to attend school in California, New York or even, in some cases, in other countries!

5. The college money in your 529 plan is transferable.

Right now, you’re planning to finish college and maybe even go on to graduate school. But life changes quickly and your plans could change. If that happens, and you don’t end up needing all the money in your 529? The funds can be used for another beneficiary—like a younger sibling.

So if you’re serious about saving money for college, consider opening a 529 plan. And don’t forget to subscribe to our blog for the latest college savings tips and financial aid information.

Photo courtesy of Robert Francis.

The Easiest Way To Earn Savings For College.

admin — Wed, 22 Jun 2011 13:24:41 +0000

Sales are even better when they're earning you savings for college.

Did you know that earning savings for college can be as easy as pulling out your credit card and making a purchase?

It’s true! By signing up for Upromise and shopping with its partners, you can get up to 25 percent back on the purchases you make. Even better, the college savings you earn are tax free!

Sounds crazy, right? But don’t worry, Upromise is completely legitimate—in fact, it’s the brainchild of the people at Sallie Mae (which runs federal student loan programs, among other things).

So, how does it earn you savings for college?

First, you have to create an account. That involves giving them some basic information, including which debit/credit cards you want to use to earn college savings. After your registration is complete, there are three super easy ways you can start getting savings for college:

Use the Upromise portal to shop online at any of their 800 partner sites
Download eCoupons onto your shopper cards and use them when you shop at your local supermarkets and drugstores
Register as a Preferred Diner and eat at participating restaurants

Even better? You can invite your friends and family to be part of your Upromise account, too. When they do, you’ll earn additional college savings every time they shop!

Keeping track of your college savings.

Wondering where all those savings for college go? The answer is anywhere you want them to!

Upromise gives you four ways to use the college savings you earn:

Have your college savings deposited in a 529 college savings account
Have your savings for college deposited in a high-yield savings account
Use your savings to pay down a student loan
Receive your college savings directly in the form of a monthly check

Cashing in on the savings for college you earn with Upromise.

The college savings in your Upromise account can be used for whomever you designate as the beneficiary – your children, a friend or family member, or even yourself! It also never expires, so whether you’re saving for a two-year-old or a fifteen-year-old, the money will be there when you need it. Plus, you can use it however you see fit – for tuition, books, even room and board!

So if you could use some easy savings for college, open a Upromise account. You’ve got nothing to lose – and a whole lot of college savings to gain.

And don’t forget, you’ll get all the latest advice on saving for college on our blog, so subscribe today!

Paying for Your Master’s Degree Online

admin — Fri, 20 May 2011 14:00:03 +0000

Considering going back to college and completing your master’s degree online? My College Guide has advice on how to pay your way through school. Plan now to make it easier later!

Paying for Your Master's Degree Online

Just so you know, online courses frequently cost you less than on-campus courses—and that holds true for your master’s degree online, too! The amount of money you will need to invest can frequently be considerable less than what you would expect. In other words: it pays to shop!

Paying for Your Master’s Degree Online

You have a few options when it comes to paying for your master’s degree online.

Grants and Scholarships – While you shouldn’t rely on this method and think that it will pay all of your way through school, it never hurts to find and apply to anything and everything that matches your academic background! You can start with our list of college scholarship websites right here on My College Guide. Your school may have institution-specific scholarships that they will award you with as well!

Money in the Bank – Have a nice stash of savings? Depending on the program you choose (and if you received a few grants and/or scholarships), you might want to think about using some of your savings to pay your way. Of course, you will really want to think about whether this degree will actually improve your circumstances or not.

Private Loans – Paying interest? It’s not fun. But if you really think that going back to school and earning your master’s degree online will pay off in the long run, it just might be worth it! Look into your private loan options and see what you can find.

The Boss – What about your employer? If a master’s degree online will prove to be a huge boon to the company, many will help pick up your education tab. Check out if the company that you work for will do the same for adults going back to school like you!

Final Advice

Make sure to read our article, Three Things to Ask Yourself Before Getting a Master’s Degree Online. No matter how much money you may be able to save by earning your master’s degree online, it will still be a hefty expense. Make sure your degree will translate into higher pay for you later on!

Image Courtesy of Flickr, foreverdigital.

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