finances

  photo by flickr user lendingmemo (cc license) A recent Reuters piece details a few tricks that some families do in hopes of getting a better financial aid offers. However, unlike most news articles concerning financial aid tricks, these tricks are considered ill-advised. As the article states, “These methods carry significant risks and may not even work.”

  pic (cc-license) from flickr user John Cooper With the arrival of the new year, it's great to think big... and big ideas already abound in this still-young year. Multiple colleges have announced that they will slash tuition. UC Davis is trying to showcase unique student achievements through a 'badging' system. Gallup and Purdue University are teaming up to measure student outcomes post-graduation. And a senate bill seeks more college accountability for student loans. But here's a big idea you may not have heard about: making public college tuition free for all students.

Expanding transparency around colleges is always a concern. Families and students, who are often viewed as "consumers" of higher education, are rightfully due the disclosure of a bevy of relevant information about institutions they compensate in exchange for education. In addition to the many existing laws governing required disclosures by colleges, there's been, in recent years, a push for transparency in possible costs (the net price calculator), a push for transparency in campus safety (Clery Act and campus safety statistics), and a push for transparency in defaults of loans (cohort default rates). Such transparency is required of private and public schools, under the assumption that certain types of transparency are universally needed for students and families. On Tuesday, there was a call for greater collegiate transparency in a new realm: campus debit cards.

   pic from flickr user 401(K)2012  As your college-bound family considers a college, there are many considerations. Job placement rate, quality of program, and graduation rate should always be considered. However, for most families, finances play an important role in college choice. Recent research confirms this, showing that families are coping with rising college costs by more frequently having students choose to live at home, take online classes or graduate early.   Comparing the cost of schools before acceptance can be tricky. This difficulty is compounded by the fact that scholarships and grants may not be known until after the acceptance process is complete. However, for those who wish to ballpark possible pre-grant and pre-scholarship costs, there are quite a few ways to go about it. Here are a few that College Parents of America like:

   How well are you and your family saving for your student's college education? The average family, according to a recent Fidelity Investments survey, is on track to meet only 34% of their college savings goals. That's certainly not where many families would prefer to be, especially given that sixty-one percent of parents report they have a financial plan in place to help them reach their college savings goals. 

   (public domain comic from 1902's A Harvard Alphabet) 

  (photo from flickr user rosengrant) 

  (photo from flickr user jepoirrier) A new article on scholarship scams is out in the most recent edition of The CostcoConnection. It provides helpful tips, including some information from College Parents of America.  

   Earlier today, the White House released a fact sheet detailing the need to curb college costs and some proposed methods that may achieve such a goal.  

 (public domain comic from 1902's A Harvard Alphabet)