It’s 2009 and there are a record number of students graduating high school with the economy in turmoil causing dramatic changes in the college selection process. When selecting a college it’s important to understand these changes and how you can take advantage of this shift.

With the large number of students graduating high school and higher education costs being a concern, there has been an increase in applications to the large state universities. This has produced a shift in how selective these schools are. A few examples of schools where the majority of the incoming freshman class has graduated in the top 10% of their respective high school graduating classes include: The University of Florida, The University of Texas, and The University of California-Berkley.  Some states will automatically grant admission to a state school if the student is in the top 10% of the class.  The University of Georgia continues to be more selective in their admissions process. Here’s how the Freshman Profile looked for the Class of 2007- http://www.uga.edu/profile/facts.html

Freshman Class Profile

Avg. SAT score: 1233
Avg. GPA: 3.79
99 percent of in-state freshmen earned the HOPE Scholarship.

An excerpt from an article entitled “Waiting-List Roulette Gets Trickier” featured in the Chronicle of Higher Education 5/30/08 discusses how competitive the admissions process is for the University of Georgia.

Wait Listed Students for UGA

With this increasing competitiveness in the admissions process, what opportunities and obstacles does this present to students looking for a college? Here are some things to consider: 

• College Applications – With the increasing number of rejections and waitlisted students, it makes sense to expand your options. You may find that some of the schools you would not have considered may be less expensive than you think.
• Impact of budget cuts – With a significant number of budget cuts, state universities will begin to feel the pinch. This may come in the form of fewer professors and classes which may result in students taking longer to graduate.
• Rising GPA and SAT scores – With the average grade point average and SAT score on the rise, how will your student fit in the incoming freshman class? One of the most important parts of selecting a school is to position the student properly.
• Cost of college – The net cost of college is impacted by a variety of things such as your expected family contribution (go to CSS Profile or FAFSA), student attributes, and positioning the student properly.

By being proactive and keeping up with the changes in the landscape of the college selection process, your student and your finances will benefit.

Don’t let the cost of college get any higher than it is.  College is already expensive with the current prices and tuition increasing at a rate of 5% to 15% this year.  The use of credit cards to pay for college tuition is on the rise.  You may be adding another 25% on top of that college bill by using credit cards. 

College Bills Too High!

Look at this scenario.  You receive a notice saying your tuition is past due and you have less than a week before you’re purged from the system.  That low interest loan you’re waiting on still hasn’t come in.  You pull out that credit card or write one of the handy convenience checks to pay for tuition.  Your tuition has been paid!  Next month that credit card bill comes in and you find out your payment is a lot higher than it normally is.  You look a little further and notice that the the interest rate has jumped up from 6.99% to 14.99% or you see an interest rate of 24.99% next to the amount of that convenience check.  So what happened?  We’ll go over these actual occurences, what steps to take, and their resolution.

In the first case, the interest rate went up from 6.99% to 14.99% and the account was not past due or over the limit.  So what happened?  In the previous month’s bill there was a note in the body of the bill that said “Important Information About Your Account: Please see the enclosed Notice of Change In Terms and Right to Opt Out for Important Changes to your Card Agreement.“  This note was in the middle of the statement where you normally see advertising for holiday specials, 10% off, or receiving extra credit card dollars.  So what should you do in this situation.  The key is not to ignore it.  Call up the credit card company and talk to one of the representatives.  Be polite and calm when talking to the representative.  When you approach calls this way you have a better chance of getting results.  At the same time, it’s not the representative who is charging you an exorbitant rate.  Many of them understand the situation you’re in.  Ask what is the reason for the increase in the interest rate.  In this case, the Opt Out paperwork had to be submitted and if it wasn’t you were subject to the new conditions.  What’s the best way to resolve the problem.  The representative said the original contract arrangement could be retained through the expiration date of the card.  She said the interest rate will be adjusted to 6.24% and they will be refunding the difference in charges from the higher interest rate.  Surprised!

In the next scenario a convenience check was used.  There were a variety of offers from the credit card company about the zero % interest rate using the convenience checks.  In a phone conversation with the credit card representative they wanted to add an additional month to the zero % offer if a balance transfer was made at that time.  In this case some expenses came up and the convenience check was used.  It won’t be a problem since it’s at zero interest.  So what happened when the next credit card statement came out.  There was an interest rate of 24.99% posted to the amount of the convenience check and the monthly payment tripled!  What steps were taken next.  The credit card company was called and representative took a look at the charge.  They said this was one of the regular checks which have a 24.99% interest rate attached to it.  How can it work this way when a month earlier the interest rate was zero %?  The next thing to do was ask the question-How can you help out?  They looked into it further and said they would be able to reverse this transaction and adjust the interest rate.  The end result was the interest rate was changed to zero %.  It took some work but the calls paid off.  Be sure to react quickly when these changes occur. 

The first rule and lesson to take away from this is to avoid using a credit card.  In the event you do, keep your college costs down by addressing changes in payments and interest rates immediately.

Applying for Financial Aid

Stretching College Dollars

It’s the beginning of the year and it’s that time again-time to apply for Financial Aid. We know that the search for aid can be exhausting and you may have to go to a variety of websites to find everything you need. Below is an all-inclusive approach to starting and finishing the essential financial aid forms. The majority of schools will require the FAFSA, while some will require the CSS/Profile, and others may require supplemental forms. With this in mind, let’s start with the FAFSA.

• When should you apply for the FAFSA? The earliest you can apply is January 1^st and the latest you can apply is June 30^th.
• What information is needed to apply? Go to Federal Student Aid-Documents Needed for the checklist. There you’ll find a list of all the documents you’ll need to complete the form.
• Where do I start? Go to Federal Student Aid FAFSA to get started. You’ll need a PIN in order to file the FAFSA electronically. You and your parents (if you are a dependent student) will need to apply for a PIN. This can be done at Federal Student Aid-PIN web site.
  
• Do I use my parent’s information or do I use my information to file? This depends on whether or not you meet the criteria for an independent student. Go to Federal Student Aid and see the Dependency Status Worksheet.
• Can the FAFSA form be sent through the mail? Yes, although it takes longer to process. The 2009-2010 form is attached if you decide to fill it out by hand. FAFSA_2009-2010
• How do I determine how much aid I’ll be eligible for? You can go to the FAFSA4caster to come up with an estimate.
• What is the formula for calculating financial aid using the FAFSA? See the attached FAFSA formula.
• Do I need to complete the CSS/Profile? Go to the Collegeboard website for the schools that use the CSS/Profile.
• Where do I go to fill out the CSS/Profile? You can go to the Collegeboard website CSS/Financial Aid Profile.

Important changes to the FAFSA for 2009-2010 school year

• Independent Student-The definition of an independent student has changed and now includes the following: Foster children, emancipated minors, children under legal guardianship, homeless children without parents, and children at risk of homelessness. These additions provide opportunities for many. This change alone could provide a student thousands of dollars in aid.
• Automatic Zero Expected Family Contribution-The limit has been raised from $20,000 to $30,000 in annual family income.
• Unable to provide parental data-By filing the application on the web it will now be accepted by the Department of Education. The old process automatically rejected the application and a hard copy had to be sent in.
• No more worksheets-Worksheet A has been eliminated and Worksheets B and C are now included as part of the FAFSA.

Additional Items

• Refusal to file FAFSA-This would allow discretion in using the Stafford Loan for dependent students whose parents do not support them and refuse to file the FAFSA.
• Pell Grant-There is an automatic zero EFC for students where parents died as a member of the armed forces in Iraq or Afghanistan. This is not a question on the FAFSA so you would want to contact the financial aid administrator.