Paying for college...made the deposit, what is next?

[angwill]

Plenty if people get a "good college education" at a community college or a school close to home. Dorming And racking up $100,000 in debt with no promise if a job to pay it off is not a sound financial decision. And plenty if kids start at a two year school and transfer after that and graduate with a degree from a great school but half(if not less than that) the debt. Then they have a good education and a good start on their future.

You can make lots of friends and have great experiences in a community college and you don't have to go into debt for the experience.

 

[csharpwv]

I work in higher education, and I absolutely CRINGE when I hear all of the discussion that surrounds paying for college - there is so much GOOD advice flying around, and there is so much REALLY.... REALLY BAD advice flying around.

First consideration is this:

According to national research statistics, the average auto loan in recent years has been around $27,000.

The average (across all educational arenas, public, private not-for-profit, and private for-profit) has been in excess of $27,000.

Very few...and I mean VERY few people hesitate to take out an auto loan for a new or used vehicle.

The better investment, hands down, is education.

So never be afraid of taking out loans to pay for costs associated with obtaining higher education.

BUT, and here is the big but.....

A student should NOT take loans out that are in excess of the average yearly salary in the career field they are seeking.

$50,000 in student load debt isn't out of the question when the starting salary in a career field is $50,000.

I'm not talking about the dream job salary... I'm talking about the AVERAGE in the field.

In most labor markets, if a student starts out in excess of $40,000 they are EXTREMELY lucky.

$175,000 isn't out of the question for medical school or professional school. First time job offers in many professional degree fields are on balance with that - or students have access to loan repayment assistance, or load forgiveness.

SO what that in perspective, now let's talk about community college.

Some community colleges are fantastic, and offer education that is equal or greater than many 4 year. Others, you're better off not even considering the option. Many community colleges offer excellent articulation agreements with 4 year institutions that guarantee access to programs that even student who have been attending those same 4 year institutions can't gain admission.

Some community colleges promise a lot of the front end but fall flat with awful adjunct faculty members that aren't engaged or invested in quality teaching and focus on learning outcomes.

At a bare minimum visit your local community college, meet with the admissions team, ask to speak to the transfer counselor/coordinator. Ask what 4 year schools they have articulation agreements in place with, ask if the institution has an active Phi Theta Kappa (honors organization for community college students), ask if they offer certificate programs or additional ways for students to earn professional credentials in addition to their associate degree.

In regard to 4 year institutions, ask to meet with their career services department, ask what their job placement %'s are, ask about internship opportunities, ask how many of their faculty members are tenured, ask how many of their students go on to the graduate/professional of their choice, ask what their average seniors owes after 4 years of education, ask how many of their seniors are employed within a month of graduation... you get my drift - ASK a lot of questions... and think this way....

Begin with the end in mind.

If your student has NO idea what they want to pursue in college in terms of a career, then you REALLY need to consider if the student is ready for college.

There are two reasons why a student goes to college -
They know what they want to do for the rest of their life.
OR
They know what they don't want to do for the rest of their life.

College tuition is a very expensive way to find out that a 4 year degree wasn't a good fit.... 2 years in.

I can honestly say that for the average family, and the average student a for-profit institution shouldn't even be a consideration. I had a conversation with a cashier who was working her way through college at a local for-profit institution and she said she would owe in excess of $50,000 when she graduated with her associate degree. THAT IS DISGUSTING!

The school should have counseled her on her debt load before she reached $20,000 for an associate degree, let along more than DOUBLE that!

Now.... on to the source of a loan....

ALWAYS exhaust all government loan options first.
Then ask about the Parent Plus Loan. Now take a look at interest rates for private loans.

Local banks, credit unions, veterans organizations, alumni organizations... just a few of the places to look for better interest rates on student loans.

When it comes to shopping for the 'right' college, you have to know before hand what the right PRICE is for the 'right' college.

The right price is what the student can afford to pay that will not leave them saddled with a debt load that is unbearable.

For parents with young children, you should plan to have saved no less than $50,000 for each child. AND That money should NOT come from a home equity line of credit, or your own retirement funds.

YES that is a lot of money - but look at the other options.

Finally, the cost of college is soaring. Scholarships are dwindling at many institutions, yet the NEED for a college education is rising - to the point that a post secondary education of SOME sort (certificate program, associate degree, career/technical education etc) is a necessity if you want to get ahead in life and not be condemned to living the minimum wage, hanging on by a thread lifestyle. No one wants that for their kids.

The old adage of you get what you pay for may SEEM to apply to everything, but not when it comes to a college education.

Think of the student I met who was working as a cashier with $50,000 worth of loan debt for an associate degree.... NO WAY is she getting what she paid for.

Shop smart, and shop a lot.

Students should consider NO fewer than 3-5 colleges. Tour every one of them, meet with everyone you can, and if you don't leave with the feeling that the institution made time for you, to assure that you were able to get an answer to EVERY question you have - then move on to the next one!

Sorry my response was so long, but as I said - I cringe when I see so much bad information out there!

 

[TLuvsD]

csharpvw has posted a lot of good information...

Everyone needs to keep in mind that Community Colleges, and the costs, vary a LOT from state to state. So does the quality of the education. Keep up with what is happening in your state (and nearby if you live close to the state border). It can help you and your student make an informed decision.

 

[Took]

csharpvw has posted a lot of good information...

Everyone needs to keep in mind that Community Colleges, and the costs, vary a LOT from state to state. So does the quality of the education. Keep up with what is happening in your state (and nearby if you live close to the state border). It can help you and your student make an informed decision.

I teach full-time at a local CC. I agree that a student can get a first-rate education here, with some excellent faculty. However, the student/parent needs to really check things out in advance, ask around, and find out who the best teachers/classes are (not the easiest, but the best). And I agree, too, that students can develop networks of friends and long-term contacts at the local CC just as they can at big four-year colleges. Students may also get to know the CC faculty much better than those at big universities. I've had several students who applied to (and got accepted to) grad school, med school, and law school -- and they all asked ME to write a letter of recommendation for them because (they said) I knew them so well. Just a thought or two.

 

[megsoro]

On the community college track, make sure your goal four year institution will accept you community college credits! I'm glad I checked with my school (a private art college) to see if my credits from NJ would transfer to the GA school. This is school is one o the top rated programs for my field, so it's not like I could goto another school. They did not take the NJ community college credits, because curriculums were so different. So, I might have spent a little more I. The end, but at least I didn't waste 2 years in a Community College.

 

[MSSANDRA]

It might be a little late now, but be sure that your child has applied for every single scholarship out there. There are soooo many that never even get applied for. There are academic, community service, religious and sports. Many for specific majors, some for being one race or nationality. Some are big, others are small but all help and are soooo much better than loans.

I have seen so many young people really get into trouble with student loans and 18 year olds have no idea what a 800.00 a month payment will be like as a newly wed or as a new parent than now wants to stay home with their own child. I agree that an education is very worth an investment but like everything else, a car or a home, it has to be one that a family can afford.

One other piece of college parent advice....RENT any books you can. Book cost are astronomical and there will be a few books that must be bought at your college book store and a few your child will want to keep but we save $$$$ renting all we can.
Also, don't forget to budget for other cost....gas, spending money etc. I would encourage you to require you child to at least work this Summer and save their own spending money.

 

[MrsPete]

. . . A student should NOT take loans out that are in excess of the average yearly salary in the career field they are seeking.

$50,000 in student load debt isn't out of the question when the starting salary in a career field is $50,000.

I'm not talking about the dream job salary... I'm talking about the AVERAGE in the field.

In most labor markets, if a student starts out in excess of $40,000 they are EXTREMELY lucky . . .

Your moderate-loan position is probably much more palatable to most people than is my no-loans opinion, and I do agree with you that IF students are going to take out loans, they should borrow no more than necessary. However, that's not what I see happening in many situations; rather, I see people saying, "Well, if we're going to have to borrow, borrow it all." For example, I see college students who aren't working in the summer (and, yes, in our area it's very possible for a student to pick up summer work). How does one justify sleeping in and hanging out with friends at the pool all summer . . . then borrowing for school in the fall?

It might be a little late now, but be sure that your child has applied for every single scholarship out there. There are soooo many that never even get applied for.

Blantantly false. With the advent of the internet, it's easy to search for scholarships. Our school and our county have a consolidated list of scholarships that makes it easy for students to locate "the big ones" at one glance. I personally know MANY, MANY students who make it their life's mission to apply for EVERY scholarship for which they qualify. No, scholarships are not going unawarded for lack of applicants.

This isn't just a guess; it's based upon two decades of teaching high school seniors, helping them navigate the scholarship search process, and writing recommendations for them.

 

[lost*in*cyberspace]

Just another cautionary tale about what can happen if your child has a private student loan and dies:

http://www.change.org/petitions/key...campaign=23681&alert_id=xfjjnVJWKQ_KNJlJNwAHf

 

[MrsPete]

Just another cautionary tale about what can happen if your child has a private student loan and dies:

http://www.change.org/petitions/key...campaign=23681&alert_id=xfjjnVJWKQ_KNJlJNwAHf

Tremendously sad on multiple levels, but this parent apparently didn't understand what it means to co-sign a loan. This is exactly what several people warned about early in this thread.