Ian Welham notes the appearance of Complete College Planning Solutions in New Jersey’s largest newspaper

A nice thing happened to us this past Sunday, June 27…

We were featured in the Sunday Star-Ledger Business section.

If you have the paper, you can find us on page 2 of the Sunday Business section in an article titled, “College dreams can be a reality,” by Rhea Bernard.

If you were at the beach, on vacation or already added the paper to the Recycles pile, you can still see the article here:

http://www.nj.com/business/index.ssf/2010/06/westfield_funding_advisor_make.html

Is it just me or does the article photo make me look 10 pounds heavier?

Ian Welham on what happens when parents and students make college funding decisions based more on emotions than reason

Did you see Ron Lieber’s “Your Money” column in the New York Times on Saturday? If not, I’ve included a link to it below.

This is important for all parents of collegebound students to see. The article tells the tale of a recent New York University graduate who amassed $100,000 in student loans, and her struggle to make payments.

Mr. Leiber argues that the student loan system is following the same path as the mortgage crisis, and is on the verge of a similar meltdown.

What struck me was his estimate that 206,000 college students graduated with more than $40,000 in student loan debt in 2007-8 (the latest figures available). That’s a nine-fold increase over 1996 graduates. If we assume no percentage increase in the last two years, that means system has churned out 616,000 grads with enough debt to stunt their financial well being for years to come.

How is it possible that so many people find themselves in financial distress? The root cause is born of good intentions: parents willing to do whatever they can to get their kids into the best possible college—regardless of whether they can afford it or not. As Mr. Leiber points out, they are sentencing their children to decades of payments, stress, “limited capacity to buy a home and a debt burden that can repel potential life partners.”

Naturally, we all want the best for our kids. But when it comes to financing expensive college educations, it’s dangerous to make decisions based on emotion over reason. Nary a week goes by that I don’t meet a family setting themselves up for financial stress and strife. Their strategy to pay for college is, “we’ll just get some student loans and get by somehow.” There’s no thought to how the student loan debt will get paid back. They believe that somehow it’s all going to work out. This breaks my heart because as the article eloquently proves, it never does work out.

If you don’t want your student to be forced to run up crippling levels of debt and you’re open to a smarter way to pay for college, we can help. If you need help finding a top-notch college that won’t break the bank, we can show you colleges as good as any Ivy League school at 50% less cost.

Here’s the link to the article: http://www.nytimes.com/2010/05/29/yourmoney/student-loans/29money.html?src=me

Ian Welham on Emma Watson’s early struggles at Brown University.

When Emma Watson, who plays Hermione Granger in the Harry Potter movies, decided to attend university, she didn’t select Hogwarts School of Witchcraft and Wizardry. Instead she chose a school even harder to get in: Brown University.

The second oldest college in the Ivy League (behind Harvard), Brown has a history of well-known underclassmen, including John F. Kennedy, Jr., Thomas J. Watson, Jr., and Dhani Harrison, George Harrison’s son. One of the reasons famous persons are attracted to the Providence, RI school is because of its liberal and laidback college environment. Who others consider celebrities are often paid little mind at Brown—as Emma Watson discovered for herself.

According to Vanity Fair and the Providence Journal, Watson’s biggest worry when starting classes last fall was the fear she would have trouble fitting in and being considered a “regular” student. That concern was quickly dispelled when her freshman roommate announced that she found Harry Potter movies boring and knew little about Hollywood’s highest paid actress in 2009.

The non-star treatment continued in the classroom. In acting class, fellow students were hardly in awe, and professors disregarded her previous acting experience as irrelevant. “I think I’m actually the worst in the class,” offered Watson cheerily.

Emma Watson is majoring in European women’s history and acting. Now that she’s successfully completed her freshmen year, what’s next for the 20-year-old British actor? She was invited along with other Harry Potter cast members to Universal Orlando Resort, and a sneak peak of The Wizarding World of Harry Potter, scheduled to open June 18.

Ian Welham finds colleges willing to take on the cost of college
issue.

For a number of years now, publications such as Kiplingers and U.S. News and World Report have been promoting their annual lists of “Best Value Colleges.” Frankly, I’ve always been suspicious of these lists, especially when a college like Harvard makes the “best value” list. Sure, Harvard is outstanding, but really, how can a $52,000-a-year college be considered a bargain?

When you see something like that (and there are numerous other examples), it makes one leery of the entire list.

I remember when my daughters were receiving daily piles of mail from universities trying to entice them, there were very few colleges promoting themselves as bargain choices. “Prestige” and “tradition” were the watchwords, not “value.” Each school would try to out-prestige each other.

But I see now the tide is turning. And in fact The College of New Jersey is laying down the gauntlet with a price comparison chart on its website.

TCNJ lets visitors to its website compare costs vs. almost any other institution. Go to http://www.tcnj.edu/~admiss/value/index.html and pick as many schools as you like: the calculator tells you exactly how much money you’ll save by choosing TCNJ. For example, with a total cost of attendance for in-state residents of about $23,000, the calculator predicts The College of New Jersey will save you $73,000 over Syracuse, $79,000 over Georgetown, and $90,000 vs. Harvard. (All calculations are combined savings over four years.)

It’s rare for a college to so aggressively take on the price issue, and so blatantly call out its rivals. Price has always been the pink elephant in the room that colleges are reluctant to address. In a time when a $50,000+ price tag is considered routine, perhaps we’ve finally reached the tipping point where college can no longer ignore avoid price as an issue.

Other schools such as Hartwick College, Judson College in Alabama, Manchester College in Indiana, and Seattle University are offering three-year bachelor’s programs as a way to reduce college costs.

Ian Welham on whether to take the ACT or SAT test

I want to go on record: I’m for less testing of high school students, not more. Between classroom tests, state tests, PSATs, ACTs, SATs, SAT II’s, AP exams, etc., this is the most tested generation in history. I don’t think it’s necessary – or particularly healthy.

However, I’m about to contradict myself. But bear with me – it’s for a good cause.

Here’s one of the most important test questions college bound high school students face.

Should I take:

• the SAT
• the ACT
• both
• neither

In New Jersey, most students give the question little thought. They choose A because that’s the test most of their friends are taking. In so doing, they may be shortchanging themselves.

Studies have shown that how students perform on the SAT can be vastly different than how they perform on the ACT. For example, a student who tests in the top 50% on SAT may test in the top 20% on the ACT. And vice versa. That’s because the tests:

• include different subjects
• test the same material in different ways
• ask questions differently (one is straightforward, one tries to trick you)
• penalizes guessing differently

Usually, students have an affinity for one over the other. The good news is, most colleges today accept either standardized test. So if possible, you might as well take both – and then put your best foot forward. Then again, if you understand how each test works, you might be able to pick one and go with it.

I just posted a new article in the library on this very subject. It explains in more detail the differences (some observable, some more subtle) between these two standardized tests. I think you might find it surprising – and hopefully, useful. You can read it now by clicking on its title: ACT or SAT – Which College Test Should You Take?

Ian Welham on how to avoid out-of-state surcharges at non-New Jersey colleges

As we’ve recently reported in this blog, the trend among the most popular public universities is to accept more out-of-state students. The reasons why are simple:

1. many states are drowning in debt and out-of-staters pay more
2. the reputation of schools such as the University of Virginia, Michigan and a few choice others is so high that there’s a long line of qualified out-ofstate students willing to pay their $40,000+ price tags

But these schools are the exception. For every University of Virginia there’s a Northern Michigan and Northwestern Oklahoma anxious to attract students from outside their state. For every University of Vermont there’s a University of Alaska. In fact, many of these lesser-known colleges are doing the unthinkable: offering in-state tuition for qualified out-of-state students.

At some of these institutions, total cost of attendance – including higher travel expenses – is under $15,000. If your student is better qualified, the tuition discounts can be even greater.

Is there a catch? Just that many of these schools are located in rural or remote areas, in states such as Kansas, North Dakota or Oklahoma.

Eastern Oregon University doesn’t charge out-of-state tuition at all. Northern Michigan University, Southern Illinois University, and Washburn University in Kansas allow students to apply for in-state tuition after living on campus for just six months (and registering to vote and paying local taxes). You can do the same at North Dakota universities after one year.

Other colleges waive out-of-state surcharges to students who meet minimum standards. Northwestern Oklahoma State University offers in-state tuition to any student who has an ACT score of at least 20 (or a two-test SAT score of 940+) and a 2.7 GPA. The University of Louisiana-Lafayette does the same for students with ACT scores of at least 23 (or SATs of 1,060) and GPA of 2.5. Total cost of attendance at each school: about $12,000.

Ian Welham reviews proven tips to lower the cost of college.

Reading the newspaper and watching the news lately, one would think happy economic days are here again. Banks and Wall Street firms report fat profits. (Weren’t these the same guys we gave billions to?) A national magazine giddily declares victory over the recession. Squawk Box talking heads predict the stock market is going up-up-up.

Meanwhile, the regular folks I know and the people coming into our office every day are singing a different tune. They’re worse off than they were 1, 2, 3 years ago – in some cases much worse—and they’re nervous about how they’re going to pay for college.

For the forgotten middle class, here’s a quick review of how to maximize college financial aid – and lower your out-of-pocket college costs:

1. Start your college financial aid research and planning ASAP. Competition for aid is tougher when the economy is weak. And in most cases, college aid is given out on a first-come, first served basis.
2. Apply for financial aid whether you think you will qualify or not. Four reasons: (i) You could be wrong. (ii) Some schools won’t consider you for merit aid if you don’t fill out the FAFSA. (iii) You have to fill out the FAFSA in order to qualify for the best low-interest student loans. (iv) If you lose your job or experience a decline in income, some colleges will consider your reconsideration appeal only if you filed for aid (even if they turned you down initially).
3. Choose federal loans over student private loans.
4. Pick a college or university near home so you can save $10,000 a year on room and board.
5. Cut the cost of college in half by attending community college for two years then switching to a 4-year college. Your degree will come from the 4-year college or university.
6. Take as many AP exams as possible and score well. Many colleges award course credits for high AP exam scores. It’s possible to enter college with 12… 15… 18 credits – an entire semester already completed.

Ian Welham discusses the increase of applicants this year on college waiting lists.

Is your child in wait list purgatory? She’s not alone. 2010 is a record year for students placed on the waiting list, wondering where they will attend classes next fall. Duke University has 3,382 applicants on its wait list — 856 more than a year ago—a number almost equal to the total number of students they will accept. In other words, Duke could fill an entire second freshmen class from its waiting list.

Elite schools received a record number of applications this year and are using the wait list to hedge their bets. Duke admitted they ran out of time to consider each application adequately. Yale has placed almost 1,000 applicants on their waiting list — up more than 150 students from last year. Dartmouth increased its waiting list by 80 people to 1,740. M.I.T. increased its waiting list by more than half this year!

Does this mean that more students will be accepted off the wait list? At most schools, that’s unlikely. Duke, for example, expects to promote no more than 60 off the waiting list. M.I.T. took less than 80 last year.

How does the admissions department decide whom to take? Christopher Guttentag, Duke’s dean of undergraduate admissions, admitted in an interview that Duke does not rank students on the waiting list but waits to see if there is a need that must be met. For example, if there are too many engineer students they may offer a spot to an English major. Or if they have too many acceptances from New Jersey, they might dig into the pile looking for a student from Wyoming.

For many students who would prefer a ‘Yes’ or ‘No,” dealing with the unknown is torture. If you have a student who’s on a wait list and wants to get off, our latest newsletter tells how. Check out the April issue cover story at http://completecollegeplanningsolutions.com/pages-faqs/newsletters/

Ian Welham discusses negotiating college financial aid and scholarships

Many families wonder if it is possible to negotiate college financial aid and scholarships. The answer is yes— if you do so very carefully.

Last year 600 families appealed their financial aid award at Boston University. Half saw their award increased.

The best way to negotiate is to follow a few simple tips: be prepared, be organized, and be polite. Don’t expect there to be a bidding war. There is normally a very structured process in which colleges negotiate and you must follow the rules. Don’t try to play games. For example, bluffing will not increase your dollar amount, and will almost always backfire.

As far as college scholarships are concerned, in order to be able to negotiate, the scholarship must be based on need. If so, the amount may be adjusted depending on the institution; but if it is an academic scholarship for a fixed amount, the odds of negotiating are next to zero.

With financial aid, it is important to be able to document your special circumstances. Colleges will most likely not raise your financial aid without a significant financial change to the household, such as loss of job… salary reduction… unforeseen medical costs… divorce… or any other life change that would alter your ability to pay tuition based on your previous year’s tax data. Focus on facts when asking for increased aid, and provide the administrator with strong reasons for why your family should be considered for a higher financial aid award.

What about competing offers from other schools? These can be used to your advantage, but use with caution. You want to state it as a fact, not as a threat.

One last point to remember: Many colleges or universities with a higher price tag reserve some money for certain students who may still be on the fence.

Still have questions on financial aid? Contact a college financial advisor today!

This year—with an all-time record of college applications made and with more “can’t miss” students relegated to the wait list than ever—the dirges seem especially loud.

With increased competition in high school (enrollment in high school AP courses has more than doubled in the last 10 years … over 150,000 students achieve 650+ on the verbal SAT… over 200,000 achieve 650+ on the math SAT…), plus increased competition from overseas students, today’s college-bound student faces a steep hill to climb. While there are plenty of books, primers, articles and blog posts (including ours) about how to get into college, this time we decided to provide some tips on the most common mistakes students make that prevent them from receiving the coveted acceptance letter.

We just posted the article to the library. You can read it now by clicking here: The Dirty Dozen: 12 Admission Mistakes That Get Your Application Rejected