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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.

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!

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.

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.

Who We Are: Information you can trust. For more than 20 years, My College Guide has provided information to help students find the best college degree and career for them. Get information on master’s degree online that will get you on the road to the right career for you!

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5 Easy Ways to Save Money For College

admin — Wed, 04 May 2011 14:00:34 +0000

If going back to school is on your To Do list, you’re probably wondering how you’ll find money for college. But don’t worry—while going back to college can be expensive, there is plenty of help available.

Money for college: where will you find it?

Federal financial aid, private student loans, and scholarships can all help ease the burden. Plus, there are tons of simple things you can do to find money for college in your budget—even if money is tight.

Did you know your refrigerator could help you find money for college?

If you’re like most Americans, a significant portion of your budget goes to food. But there are lots of little ways you can cut back—and those small contributions can really add up when it comes to finding money for school.

Learn to love those brown bags. If you routinely eat out, try packing your lunch a few days a week instead. Just think—if your average lunch costs $10, you could save up to $50 a week! That’s $2,600 a year!

Give up the daily latte. When you’re under a time crunch, it can seem easier to stop at the nearest coffee shop drive thru than to take the time to brew a pot of coffee at home. But at $4 a pop, losing those lattes can add up to a lot of money for college!

Leave the convenience foods at the store. Those pre-packaged dinners can be a lifesaver when your family’s hungry and you’re out of time. But that convenience comes at a price. Consider investing a few hours on the weekend to making freezer meals—things that you can freeze and defrost whenever you find yourself pressed for time. You’ll be amazed at how fast the savings stack up!

Is money for college hiding in your bills?

It might sound bizarre, but by taking a good look at your monthly bills, you might be able to find ways to save money for college!

Cut the cable cord. If you’re like most people, you probably spend more than a hundred dollars each month for your cable TV. But there are ways to avoid paying that huge fee. Sign up for a mail order DVD service, or invest in a device that lets you watch Internet-streaming shows right on your TV! You could easily cut your bill in half—if not more! That’s good news for adults going back to school.

Budget your utilities. By signing up for yearly “budget plans,” you can avoid those $300 heating bills or $400 electric bills. Instead, you’ll pay the same (lower) amount all year long. That could add up to hundreds of extra dollars for college!

These are just a few of the ways you can find money for college—without feeling the sting. If you take a good hard look around you, you’ll probably find plenty more!

Image Courtesy of Flickr, Colby Cosh.

Who We Are: Information you can trust. For more than 20 years, My College Guide has provided information to help students find the best college degree and career for them. Get information on finding money for college to get you on the road to the right career for you!

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5 Reasons Applying for the Pell Grant is a Smart Move

admin — Mon, 25 Apr 2011 14:00:00 +0000

Applying for the Pell Grant is a great way to ease the financial burden that going back to school as an adult can cause. In fact, it’s one of the best federal student aid programs available to adult learners. My College Guide gives you five reasons why!

Apply for the Pell Grant

Applying for The Pell Grant

Pell Grants are open to almost anybody. The only requirements? You have to have either a GED or a high school diploma, and be working on your first bachelor’s degree. That’s it. There are a few instances where they can be used for post-baccalaureate teaching programs, but those are few and far between.

Applying for the Pell Grant is easy. In fact, you’ll automatically be considered when you fill out your Free Application For Federal Student Aid (FAFSA) form. Pell Grants eligibility is based solely on economic need, so there are no essays to complete or hoops to jump through. And as a working adult? The easier it is to get something done, the better.

Convenient and Quick

Applying for the Pell Grant gives you flexibility. No matter whether you plan to attend school part-time or full-time, online or on campus, a Pell Grant could work for you. They’re accepted at most online colleges as well as their traditional counterparts, for both part and full-time students. In fact, as a part-time student, you can qualify for up to 18 semesters—so you can get your degree at your own pace.

Free Money for College

The amount of your Pell Grant is not set in stone. Pell Grants are calculated based on four factors—the amount of tuition, your family’s financial status, the size of your family and your enrollment status. So if your situation changes, the amount of your grant can too. Having a baby? Your award could increase. Transferring to a pricier college? You could get more help. Thinking about taking the plunge and going full-time? You guessed it—you could get a bigger grant!

Pell Grants range in size from $550 to $5500, with the average student receiving somewhere around $3500. And since they’re recalculated every school year, they can keep pace with the changes in your life. For adults going back to school, that’s really good news.

Best of all, you don’t have to pay Pell Grants back. Unlike student loans, money from federal Pell Grants is yours, free and clear. Meaning you can concentrate on your schooling—not on how you’ll make good on the loan.

It’s easy to see that for adult learners, applying for the Pell Grant just makes sense. But you better get cracking—the application deadline for the 2011-2012 school year is June 30th.

Image Courtesy of Flickr, espensorvik.

Who We Are: Information you can trust. For more than 20 years, My College Guide has provided information to help students find the best college degree and career for them. Get information on any applying for the Pell Grant to find the right career for you!

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Private Student Loans vs. Federal Student Loans

admin — Sat, 16 Apr 2011 14:00:14 +0000

It would be great if scholarships and grants could cover all of your tuition, but many students—especially adult learners—need to get either private student loans or federal student loans. Why? Well because there’s often a gap between the amount you can get from scholarship programs and the amount you actually need to make going back to school financially feasible.

RambergMediaImages / Keith Ramsey

That’s where student loans can help. In fact, depending on the type of private student loan or federal student loan you get, you may be able to apply the funds toward your college textbooks or even living expenses!

Which is better—private student loans or federal student loans?

It’s best to try your luck at getting a federal student loan first. There are three types—Perkins Loans, Stafford Loans and PLUS Loans.

Perkins Loans are low fixed-rate loans awarded based on financial need, and can cover up to $5,500 in undergraduate tuition each year. If you need more aid, you can also take out Stafford Loans.

There are two types of Stafford Loans; subsidized, which are based on financial need, and unsubsidized, which are available to any student.

Both types offer a low, fixed rate and don’t have to be repaid until you graduate from college! The main difference between them is that unsubsidized loans accrue interest while you’re attending school—subsidized loans don’t.

Both Stafford programs have borrowing limits, but if you qualify, you can combine them to obtain a bigger loan package. Currently, as an independent learner (i.e. a student over 24 who can’t be claimed by anyone else on their taxes), you can take out a maximum of $57,500, with no more than $23,000 of that coming from subsidized loans.

The only other caveat? You have to be enrolled at least half time to qualify, so if you plan on taking just one class at a time, this isn’t the federal student loan program for you.

There’s one other type of loan to consider. If you’re under 24, single and have no dependents, your parents can take out a federal PLUS loan for your education—assuming you can talk them into it!

When should you look at private student loans?

Sometimes you simply can’t get what you need from federal student loan programs. If you’re still in the red after receiving your federal student loan package, a private student loan could be a big help!

Also, if you’re planning to attend a college that isn’t an accredited Title IV school, you won’t be eligible for federal programs. In that case, a private student loan can make all the difference in the world!

While private student loans can have higher interest rates than federal loans, they do allow you to finance up to 100 percent of the cost to go to college—including living expenses! That can make a private loan a very attractive option!

Whatever your situation, a combination of private student loans and federal student loans can help make your college dreams a reality. If you need help sorting through your options, ask the financial aid staff at your school for assistance!

Who We Are: Information you can trust. For more than 20 years, My College Guide has provided information to help students find the best college degree and career for them. Get information on private student loans, federal student loans and other financial aid programs to get you on the road to the right career for you!

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Benefits of Online Education

admin — Fri, 15 Apr 2011 14:00:46 +0000

The benefits of online education are many! Making time for on-campus courses for adults working full-time is next to impossible—but online? It’s infinitely easier: Here’s why!

kennymatic / Kenny Louie

Benefits of Online College

Your Life, Your Way – It’s not very often that you get to call the shots but one of the big benefits of online education is that you don’t have a specific place to be. You’ll have a specific course schedule for when assignments are due. So, you can complete assignments in your business administration class at 2 AM or 2 PM—it doesn’t matter. On-campus courses just can’t compare!

Yes: There’s Still Community – Online college courses have come a long way. You won’t feel isolated from your peers at all. In fact, many colleges have special discussion areas so you can get to know and chat with your new online classmates. Some even have forums and allow online students to join on-campus activities and attend campus events. Now, is that one of the greatest benefits of online college, or what?

What You Don’t Know Can Hurt You (Financially)

Let’s Talk Turkey – Higher education isn’t cheap but you know that if you want to advance in your career or get your foot in the door in a brand new career, it’s a necessary addition to your resume. Rather unknown benefits of online college include the cost of classes—in many cases, it’s cheaper! In state or out, some higher education institutions charge the same amount and the cost of online courses can be a significant savings. That’s money in the bank!

Free Money for College: Even for Online Students – Did you know that even adults going back to school can still apply for and receive free money for college? Fill out the FAFSA, the Free Application for Federal Student Aid, and see if you qualify for financial aid. Your college will use this information to match you up to their own institution-based scholarships. Every non-traditional student should be sure to take advantage of awesome benefits of online college like this one.

What are You Waiting For?

There are plenty of reasons to consider beginning or finishing your college degree. The benefits of online education are many—why not see for yourself? You have nothing to lose and everything to gain. Your future is waiting!

Who We Are: Information you can trust. For more than 20 years, My College Guide has provided information to help students find the best college degree and career for them. Get information for the benefits of online education and programs to find the right career for you!

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Financial Aid Process for New College Students

admin — Thu, 07 Apr 2011 14:00:31 +0000

Butler University is making headlines with their basketball prowess, but college athletics aside, they’ve created a great video about the financial aid process! Whether you are an adult going back to college or your college bound teen is nearing graduation, this video covers a lot of ground regarding financial aid, the FAFSA, and how it pertains to new college students.

It’s a great overview of the financial aid process – no matter what college you choose! You’ll learn how to access financial aid information online (which is very similar to the process at many colleges and universities) and how to accept awards. Watch Financial Aid and New Student Registration on YouTube or below.

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