In evaluating colleges, what is s good 4 year graduation rate?  Former Commissioner of Education Statistics Mark Schneider has his own views on what the minimum four year graduation rate should be.  He uses the term failure factories for schools that have low graduation rates.  Schools that graduate fewer than 33% of their students in 4 years would be in this category.  Here are some examples of colleges and their 4 year graduation rates.

The statistics are from www.edtrust.org

When I help parents and students evaluate colleges my goal is direct students to colleges that will help in their development.  When looking at a college’s graduation rate I look at it as though I was faced with a chance of success in whatever situation may be presented to me.  If I was faced with a medical condition that required an operation, what chance of success is likely?

Over the next month we’ll examine some of the causes of high drop out rates.  One of the causes is Undermatching-When lower income students don’t choose the best college they can get.

So once the campus tour is done, where do you go next? Visits to the following offices or departments should be part of every campus visit.

• Admissions Office
• Financial Aid Office
• Department head or faculty member

You may also want to eat at the school cafeteria, spend time talking to the students, and go to the Career Placement office.

It’ also important to come prepared. Put together a list of questions to ask of the different departments. Here are a few of the top questions that should be asked.

• Admissions Department

What is the average retention rate for your freshman? How has this rate changed over the last few years?

What are the most important admission criteria for your school? How would you rank these in terms of importance?

• Financial Aid Department

What forms does the college need to apply for financial aid?

How does the school award financial aid? What is the average award based on merit? What is the average award based on need?

• Faculty

How accessible are the professors if there are questions from class?

What differentiates your school’s programs from other schools?

Keep track of who you talk to and find out if it’s OK to contact them in the future. It’s important to get to know as much as possible about the college and the area. You don’t want to start attending a college and say “I wish I would have known a little more about ______”

In order to balance the budget the state may have to cut up to $600 million from the budget of the state’s colleges and universities.  This may mean tuition hikes at Georgia’s college could range from 35 percent to 70 percent.  The budget reduction may also be passed off in the way of increased fees, staff reduction, caps on enrollment, programs being eliminated, or cuts in the number of hours facilities are open.  

Taking a proactive approach is a key.  Let’s look at a few examples and what can be done

• A student considering the nurse anesthetist program at Medical College of Georgia and is concerned that program may be cut.  Look at the Academic Common Market for states that may offer the program and pay in state tuition at an out of state school.  Go to the following link for more information-  http://home.sreb.org/acm/choosestate.aspx
• A student that is concerned that it may take a year or so longer to graduate because they can’t get the classes they need to graduate.  Pay attention to the 4, 5, and 6 year graduation rates at the colleges you are applying to.  Go to The Education Trust to find out the graduation rates-  http://www.collegeresults.org/
•  A student that is terrified that they may not get into UGA or Georgia Tech because of enrollment caps.  Cast a wider net in applying to colleges.  Consider schools that will fit the financial profile for the family and the student.  Schools that offer merit based or need based aid can lower the cost of college.      

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  If you would like to see additional topics or a greater emphasis on certain areas, just let us know.

Changes in the “No Loan” Programs for Colleges

In the last few weeks two colleges have announced that they can no longer continue the “No Loan” programs.  Williams College will drop the “No Loan” program and replace grants with loans.  Dartmouth College will drop the “No Loan” program for families with incomes greater than $75,000.  With an annual cost of $52,973 for Dartmouth and $49,880 for Williams College this means families will have to dig deeper in their pockets to pay for college.

The “No Loan” program started back in 2007 and 2008.  This was at a time when endowments were growing and there was criticism that colleges weren’t spending enough of their funds.  Then came a significant decline in the stock market and real estate values towards the latter part of 2008.  It appears that schools are now rethinking their financial aid policies and making adjustments. 

With two prominent colleges making this change, will others follow suit?  

More Students Majoring in Science

It looks like more and more students are going to college with plans to major in Science or Technology.  This may also be referred to as STEM fields which include Science, Technology, Engineering, and Math. 

A study completed by the Higher Education Research Institute also known as HERI showed that the graduation rates for STEM majors was much lower than their non-STEM classmates.  What’s alarming about the study is that students who start college in STEM fields have a lower graduation rate than those who start in all other areas of study whether the degree is in a STEM or non-STEM field.  The study is trying to determine what will actually work to help students with their graduation rate.

 Advanced Placement (AP) Scores on the Rise   

In the Collegeboard’s annual report the percentage of students scoring a 3 or more and attending public schools has increased from the previous year.  In 2008, 15.2% of high school graduates scored a 3 or more and in 2009 the percentage increased to 16%. 

The Advanced Placement program is administered by the Collegeboard.  The test scores range from a 1 to 5.  This program can allow high schools students to receive college credit.  A score of 3 or more can determine college success and readiness.

$10,000 Tax Credit for Higher Education- In President Obama’s first State of the Union address he talked about his agenda in making higher education more affordable.  To make higher education a reality for many, a $10,000 higher-education tax credit for families may be part of their payment plan.  For those with existing student loans, debt forgiveness may be a possibility for people who have been repaying their college loans for at least 20 years.

Biggest Worry for College Freshman?- Approximately 2/3 of freshmen said they were either somewhat or very worried about their ability to finance their college educations. About 55% said they had “some” concerns about money and 11% indicated they had “major” concerns about paying for college.   

The survey was conducted by the Higher Education Research Institute at the University of California at Los Angeles.  The survey is called “The American Freshman: National Norms Fall 2009”.  This report has been in existence for 44 years and provides institutions with information about the demographic profile, perceptions, and mind-set of their incoming freshmen classes.  For more information on the survey, go to http://www.heri.ucla.edu/

Why Do Students Drop Out?- Seventy-one percent of those surveyed who had quit college said that work was a factor in the decision, and more than half said it was a major factor. About 35 percent of those who dropped out said they had tried to balance work and study, and found it too stressful.

A report was produced by Public Agenda, a nonpartisan nonprofit research group, with support from the Bill & Melinda Gates Foundation.  More information can be found at the following link- http://www.publicagenda.org/theirwholelivesaheadofthem

Part Time Students account for close to 40 percent of undergraduates in the country—and those who have to work generally do not do as well as their full time counterparts.

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  If you would like to see additional topics or a greater emphasis on certain areas, just let us know.

University of California students protest 32 percent tuition increase 

Imagine a 32% increase in tuition costs!  The California Board of Regents instituted a 32% increase due to the budget crisis in the state. 

Protesting students and others say the increased tuition will hurt working and middle-class students who benefit from state-funded education. But officials argue that a fee increase and deep cuts in school spending are necessary because of a persistent budget crisis that has forced reductions across California’s state government. 

Hundreds of Thousands Claimed $532M in Excess College Tax Credits 

The Hope tax credit is designed to help middle class families pay for college — but not this much. A Treasury Department Audit found that several hundred thousand taxpayers sought credit in 2006 and 2007 for more than half a billion dollars more than they were supposed to by claiming the tax credit for a third or even a fourth year; it is limited by statute to two years. The agency’s inspector general for tax administration found that the IRS system is not set up to flag taxpayers who seek the credit for more than two years, and that agency officials lack the ability to disallow claims for Hope credits because of “math errors.” The audit recommends that the IRS be given that authority. The Hope credit was significantly expanded for 2009 and 2010 as part of the federal economic stimulus package. 

Managing the College Admissions Process

With the downturn in the US economy, what are colleges doing to manage the number of students enrolled and financial aid awarded.  Take a look at the results of the NACAC (National Association for College Admission Counseling) survey.   

Admissions Strategies for 2009 and planned for 2010

WES iGPA (International Grade Point Average) Calculator- for Students

Do you need to convert your GPA to the 4.0 scale used in the US?  Knowing your GPA is the simplest way to learn how you compare to others when you apply to study in the United States. Colleges and universities want to evaluate your grades based on the 4.0 GPA scale.  Go to: http://www.wes.org/students/igpacalc.asp to use the calculator.

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  Here are some of the latest items of interest:  

 The Start of Tuition Discounting and the Current State

How did this discounting get started?  Some believe the high tuition, high aid model creates a Chivas Regal effect. So named for a high-priced Scotch whiskey, the Chivas effect suggests that people weighing the merits of two similar institutions will tend to think the more expensive one is superior. There’s also a compelling case to be made that students and their families are apt to attend high-discount institutions because they’re flattered by the offer of aid and perceive the large discount as a good deal.

Between the early 1990s and 2007, average tuition discounts for first-time freshmen grew from 27 percent to 39 percent, according to the National Association of College and University Business Officers. While there’s no survey data available for 2009, many college presidents say they offered even larger discounts this year — convinced that it was necessary to double down at a time when affordability was such a concern for families.

Report from the AASCU Urges Colleges to Emphasize Math, Science, and International Studies

A new report by the American Association of State Colleges and Universities.titled “Leadership for Challenging Times,” is the result of a yearlong study by the association’s Presidential Leadership and Global Competitiveness commission, which consisted of 13 college presidents. It highlights some of the challenges that American higher education faces, including declining student interest in math and science, weaknesses in elementary and secondary math and science education, and the increasing cost of college.

The report also said that americans ages 25 to 34 are less educated, on average, than their parents’ generation, and are less likely than their predecessors to earn degrees in science, technology, and mathematics.

New CLEP (College Level Examination Program) classes

A few months ago, CLEP launched two new exams: College Composition and College Composition Modular. At the same time, three CLEP exams will be retired:

• English Composition with Essay will be replaced by College Composition
• English Composition will be replaced by College Composition Modular.
• Freshman College Composition will be replaced by College Composition Modular.

Both of the new examinations will assess writing skills taught in most first-year college composition courses.

College Composition includes multiple-choice items and two mandatory essays scored by CLEP. College English faculty from throughout the country score the essays via an online scoring system.

College Composition Modular includes a multiple-choice section that may be supplemented either with an essay section provided by CLEP and scored by the college, or an essay section provided and scored by the college. This exam is intended for colleges that want a valid, reliable multiple-choice assessment and greater local control over the direct writing assessment.

College News and Views is a semi-monthly publication that was created to provide you with highlights on a variety of topics in the world of higher education.  Here are some of the latest items of interest:  

Senator Edward Kennedy’s Impact on Students and Higher Education

During his term (1962 to 2009) in the US Senate, Senator Edward M. Kennedy authored more than 2,500 bills.  Several hundred of these bills have become public law.  Here are some of the ways in which Senator Kennedy has impacted higher education:

Student Support Services program - Senator Kennedy supported the creation of the Student Support Services program (Higher Education Act of 1968).  The program provided tutoring and mentoring to low income, first generation students in order to keep them in school and improve graduation rates.  These programs are known today as the TRIO program.  TRIO participants include: Oprah Winfrey; Actress Angela Bassett; NBA Basketball Player, A.C. Green; correspondent for ABC News “Prime Time Live”, John Quinones; the first Hispanic astronaut, Franklin Chang Diaz; the first African-American astronaut, Bernard Harris; and many more.

Basic Educational Opportunity Grant – Senator Kennedy worked with Senator Clairborne Pell in the early 1970’s to support the creation of this grant which came to be known as the Pell Grant.

Direct Lending Program – Over 12 million students have benefited from low cost loans due to Senator Kennedy’s work with the Budget Reconciliation Act of 1993.

School to Work Opportunities Act – This created a partnership between employers, educators, and others in order to prepare students for careers in high skill high wage jobs. 

College Cost Reduction Act – In 1997 this bill authorized a $23 billion increase in student aid.

Higher Education Opportunity Act of 2008 – For the first time in a decade the Higher Education Act was reauthorized.  College has become more accessible and affordable by simplifying the application process for financial aid and expanding aid for the neediest students.

Establishing AmeriCorps – Senator Kennedy was the author on a bill that created AmeriCorps and Learn and Save America.  After graduating, over 17 million people have participated in Learn and Save America and over a half million in AmeriCorps.

SAT Class of 2009 is a Record Breaker

Laurence Bunin, senior vice president of the SAT program, said that “The SAT Class of 2009 is a record-breaker” noting that it was the largest and most diverse group to take the test.

This year the average scores were as follows:

• 501 on the critical-reading section
• 515 on the mathematics section
• 493 on the writing section

The average mathematics score is the same as it was in 2008, while the reading and writing scores each dropped one point. Each section is scored on a scale from 200 to 800.

Finding the Right College Roommate

Matching roommates is a tough task for most colleges who sometimes find themselves scrambling after the roommate assignments come out. This can be an extremely busy time of year when students may not be happy with their selection for a roommate.  Finding the right match takes a lot of work.  Here are some options colleges have to make this matching process easier:   

RoommateClick, the web’s leading roommate-finding site, launched in 2006. RoommateClick provides a service that lets students take a proactive approach in selecting a roommate, a task that has historically fallen to campus housing.  Students who find they have mutual interests can request to room with each other through this site.

In the next year RoommateClick looks to face competition in the higher-education market from RoomBug, a Facebook application.  RoomBug allows a Facebook user to specify lifestyle preferences–bedtime, neatness, academic vs. social focus, etc. — and those he or she is looking for in a roommate. The application provides a list of compatible matches with whom the user can then network via Facebook.

Beloit College Mindset List Class of 2013

Every year Beloit College, a private liberal arts college located in Beloit, Wisconsin, comes out with a list of what the current freshman class has experienced throughout their lives or what may not have been a part of their lives.   

Here are the first ten in the list and also #28 which refers to Bobby Cox-Atlanta Braves manager (we couldn’t skip this once since we’re based in Atlanta).  For the complete listing, go to http://www.beloit.edu/mindset/2013.php

1. Dan Rostenkowski, Jack Kevorkian, and Mike Tyson have always been felons.

2. The Green Giant has always been Shrek, not the big guy picking vegetables.

3. They have never used a card catalog to find a book.

4. Margaret Thatcher has always been a former prime minister.

5. Salsa has always outsold ketchup.

6. Earvin “Magic” Johnson has always been HIV-positive.

7. Tattoos have always been very chic and highly visible.

8. They have been preparing for the arrival of HDTV all their lives.

9. Rap music has always been mainstream.

10. Chocolate chip cookie dough ice cream has always been a flavor choice.

28. Bobby Cox has always managed the Atlanta Braves.

Trends in Student Loan Industry 

• Credit underwriting standards have been raised as credit performance within the student loan industry has been strained due to the current recessionary environment.
• Loan default rates have materially increased.
• Immediate repayment option is being emphasized.
• Obama administration proposal to have federal Direct Loan Program replace FFELP in 2010.

How will this impact those that are applying for or receiving student loans

•  You will need to get a co-signer if credit is marginal or worse.
• Private loans are getting more difficult to get.
• The amount of unmet need is likely to rise.
• The majority of disbursements will be going directly to the school.

Banks Increase Margins on Private Student Loans

Many large banks have recently increased their margins on the funding of both new and existing Private Student Loans.  Some of these increases have been without warning..

If you currently have existing Student Loans with a financial institution that has increased your rate, you may want to consider your options to refinance that loan.

US News and World Report-Solving the College Crisis

This edition has something for everyone who plans to go to college or may currently be in college.  It’s divided into four sections:

• 1. How To Fix Higher Education
• 2. The Changing Face of College
• 3. Paying For College
• 4. The Rankings

Resources-US News and World Report, Chase Bank, Chronicle of Higher Education, Inside Higher Education

Take some time to learn these terms when preparing to send a student to college.  By understanding these terms about what may be available to you can increase your chances of receiving or qualifying for financial aid.   

Educational Assistance Plan- A plan set up by an employer to pay for the cost of an education.  This is also known as a Section 127 Plan.  Any benefit received is tax-free up to $5,250.    

Appeal Letter- This is a letter written to challenge a decision by a college for a financial award or determination of admission. 

Income Protection Allowance- The amount of income that is excluded from the Expected Family Contribution calculation for financial aid purposes.  The number of students in college and the number of family members will determine the amount of the exclusion.  See Table A3 (Dependent Student) under The EFC Formula for additional information- http://ifap.ed.gov/efcformulaguide/attachments/111408EFCFormulaGuide0910.pdf

Asset Protection Allowance- This formula excludes assets from the calculation of the Expected Family Contribution.  Factors that determine the allowance include the age of the parent and whether there are one or two parents in the household.  See Table A5 (Dependent Student) under The EFC Formula for additional information-  http://ifap.ed.gov/efcformulaguide/attachments/111408EFCFormulaGuide0910.pdf 

Untaxed Income- Certain items that are not taxed as income or reduce taxable income may have to be added back in determining the Expected Family Contribution.  The FAFSA will add the following items to income for financial aid purposes: Employee payments to tax-deductible retirement plans, child support received, tax exempt interest income, untaxed IRA or pension plan distributions, living allowances, veterans non education benefits, and other untaxed income.    

Federal Subsidized Stafford Loan- This is a federal loan that is available for students that demonstrate financial need.  Financial need is determined by filling out the FAFSA.  A subsidized loan does not accrue any interest during the time you are attending school.  In addition, there is no accrued interest for the six month grace period after you graduate, leave school, or drop below half-time enrollment.  The maximum available for a Freshman is $3,500, $4,500 for a sophomore, and $5,500 in each year for a Junior and Senior.    

Federal Unsubsidized Stafford Loan-This is a federal loan that will accrue interest from the time the money is disbursed.  This loan is not based on financial need.  The maximum Stafford Loan (combination of Subsidized and Unsubsidized) that can be taken out each year is as follows: Freshman-$5,500, Sophomore-$6,500, Junior and Senior-$7,500.  For additional information on Stafford Loans- Go to the following URL- http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp PLUS Loan- This is known as the Parents Loan for Undergraduate Students.  This is an non-need based loan.  The PLUS loan can be taken out for the total Cost of Attendance less any financial aid awards or other scholarships.  For additional information on PLUS loans- Go to the following URL-http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp

Federal Perkins Loan- This is a federal loan available to students with exceptional financial need.  The interest on the loan is subsidized similar to the Subsidized Stafford Loan.  The maximum loan is $4,000 per year for undergraduate study.