Involve Your Parents

Financial Aid and College Savings Plans

Student and parents often say: “We make too much money; we’ll never get any financial aid.”

Perhaps you’ve said this, or perhaps you’ve heard a friend say it. Whichever the case and whatever your income, there are ways that you can minimize your expected family contribution (EFC) to get more financial aid for college tuition and other expenses.

To understand how to minimize your EFC, you need to understand the Free Application for Federal Student Aid, aka the FAFSA.

Colleges use the FAFSA to determine how much money each family can afford to contribute to their children’s college costs. Your EFC is based on more than just your income; it’s also based on assets, cash, savings and checking. The college sees all these things as potential sources that you can tap into to help pay for your child’s education.

It’s true that if you have a low EFC, the chances are greater that a college would be willing to give you more help with the tuition costs. But there are ways to minimize the amount of money that the government sees you have available for college.

College Savings Plans

Margin Accounts

Over time, many people accumulate retirement money in IRAs, 401(k) and 403(b) accounts. These particular accounts, because they are for retirement, are considered untouchable in the college FAFSA formula. Any money in this type of retirement account will not be calculated into your EFC.

On the other hand, money in stock markets, money markets, mutual funds, etc., is included in the EFC calculation. The government looks at this money as money that is available to you to help pay for your child’s education/tuition. There are ways to shelter this money, such as establishing a “margin” account against all (or a portion) of the value of the stocks.

Parents- If you have a lot of resources in stocks and other investments, it may be a good idea to consult a financial adviser about how to shelter these resources in margin accounts or a 529 savings plan.

Home Equity

The FAFSA does not include home equity in its EFC calculation. However, some elite schools do reserve the right to look at your home equity and calculate that into your ability to contribute. They consider it money that you have readily available, and some schools may require you to use home equity loans to pay for your child’s education.

One way to prevent this is to open a line of credit on your home equity but not draw down on that line. In other words, you can be approved for your home equity loan and never use it. The college will only see that the line of credit has been established and is not available for you to use in paying for college.

Again, only elite colleges that require extra financial documentation may look at home equity. If your child is not interested in attending an Ivy League college, you can still benefit from investing money in your house. Since the FAFSA doesn’t look at your house or home equity, money sitting in the stock market or mutual funds might be better spent in paying down the mortgage on your house.

529 Savings Plans

A 529 savings plan is a very simple way to save for your child’s education. 529 savings plans are state-operated investment plans that offer a tax-exempt way to set money aside for your student.

Unlike custodial accounts, the money in a 529 account is not used in calculating your EFC. The downside of 529 savings accounts is that the money must be used toward the student’s education. If it is not, there is a monetary penalty.

This can be a good type of account for grandparents who want to contribute to students’ education. Not only are 529 contributions excluded from your estate and from the FAFSA, grandparents can also switch beneficiaries to other grandchildren if the need arises.

Custodial Accounts  

Something to be wary of is establishing a custodial account (such as a UTMA or UGMA) for your son or daughter.

It sounds like a good way to save for college, especially if there is a grandparent who wants to leave the student a gift of some kind.

But in the current FAFSA formula, assets like college savings plans owned by a child (including assets in a custodial account) count much more heavily for determining financial aid than the parent’s assets. The government expects that 35 percent of any money in the student’s name will be used toward paying for college, while only 5.65 percent of assets in a parent’s name will be designated for college. Putting aside money for your student is a great idea, but to minimize your EFC, avoid putting it in your student’s name.

Before you move any of your assets or set up any of these kinds of accounts, be sure to do more research or check with a financial adviser. Going about this the wrong way can lead you down the wrong path, and when you’re paying for college, you need all the resources you can get!

Leaving Home

Have you ever wondered why your mom or dad continues to yell at you? You’re doing better in school, you’re involved in after school activities and you’re taking on more responsibility at home. 

Your parents may be suffering from Empty Nest Syndrome, which refers to feelings of depression, sadness and grief experienced by parents and caregivers after children go to college or move out.

So as a teenager, how do you navigate the minefield of your parents’ emotions and establish a better relationship during this time of transition? Try these 7 tips to make leaving home a little easier for you while avoiding the pitfals of empty nest syndrome.

Tips for Leaving Home While Minimizing Empty Nest Syndrome;

Tip #1 Establish Respect 

Think about the reasons why you respect your parents and verbalize them. If you focus on the reasons why you respect them, it will loosen the defenses between you.

Tip #2 Active Listening

Parents are human, too. They have fears and hang-ups just like you. At times those fears and hang-ups come out during family discussions and arguments. During times of transition, like your leaving home, early effects of empty nest syndrome are already at play. In order to minimize the tension, really listen to what your parents say. Active listening means you’ll have to turn off the iPod, put down the cell phone and make eye contact.

Tip #3 Understanding More Deeply

Before you take action or respond to a comment ask, “If I understand you correctly…” This allows you to clearly understand your parent’s intentions and helps you clarify what they want you to do. This type of deep listening takes practice but will serve you well in all of your relationships.

Tip #4 Appreciation

Parents love it when they feel their teenager still appreciates them, especially during a time when you’re less dependent. If you are unsure of how parents would like for you to show appreciation, ask them.

Tip #5 Be Supportive

Just like you want support in the choices you make, your parents also need support. 

• If your parents work, cook dinner or do extra chores.

• If you have younger siblings, baby-sit one night on the weekends.

• Suggest an outing with one or both of your parents to a favorite spot.

Tip #6 Be More Responsible

If you say you are going to do something, then do it. Your parents are watching to see whether you can follow through on a commitment. An increase in your level of responsibility decreases a parent’s anxiety level.

Tip #7 Increase your Independence

Having more independence to make your own choices will be the next chapter in your personal growth. It takes time to attain higher levels of independence because there are new skills you need to develop. Independence involves taking risks and understanding the choices you make won’t always turn out the way you plan. If you have the opportunity now to gain more independence, ask for it. Try declining the offer of allowance and getting a job, or wake yourself up in the morning. Maybe pick a night where you plan and cook the family meal.These tips will make your parents adjustment to an empty nest much easier. It will also make your return expected, welcomed and more enjoyable. 

Keith Dent is a life coach and owner of Strive 2 Succeed Coaching Services. Dent is also the host of Teen Love Radio on Blog Talk Radio. For questions, contact him at strive2succeed@comcast.net

Student Financial Aid Questions

Parents and financial aid

Q: My daughter is in love with a college and wants to apply early decision. We’re concerned about finances and want to know if applying ED makes sense.

A: This can be tricky, as applying ED effectively limits her options. If you are prepared to support her financially if she gets in and the  student financial aid is doable from your vantage point, then a little advanced research can put your mind at ease. Visit the student financial aid office at her first-choice college in August or September of her senior year. Take your most recent pay stubs as well as your federal tax returns from the previous year. Most financial aid officers will work with parents to establish an “early estimate” of your expected family contribution (EFC). If it is close to the number you have in mind and you are prepared to forego other options, ED not only makes your daughter happy, it makes sense. If not, she would be wise to keep her options open.

Q: What will happen to the student financial aid our oldest child currently receives when his younger brother enrolls next fall?

A: In all likelihood, it will increase. The awarding process begins with an assessment of your EFC. Whereas this amount was used to support one student in college last year, it will now be needed to support two students. The respective colleges should recognize this and expect that you will contribute half to the support for each of the boys’ education.

Q: Can I count on institutional scholarships being renewed?

A: Read the fine print on each student financial aid award about “renewability.” Students must reapply for need-based assistance every year. For merit scholarships that are renewable, recipients are often required to achieve and maintain a certain GPA.

Q: I’m about to start my senior year. Is there anything I can do now to improve my chances of getting good student financial aid?

A: Absolutely! Put yourself on the right competitive playing field. Colleges are constantly making decisions to admit based on how they value the students who have applied. Putting yourself on the right playing field means you have applied to a college where you are not only qualified, but are highly attractive as a potential member of its community. To get the best financial support, apply to colleges where your credentials are likely to be most compelling.

Q: How much negotiating can we expect in the financial aid process?

A: Though colleges generally don’t like to think they negotiate student financial aid awards, some will invite you to submit the best offers from other schools in making competitive adjustments to their own. Regardless, most colleges will review appeals based on new information (loss of income, economic catastrophe, etc.). If you make such an appeal, do it in writing directly to the college’s student financial aid office.

Q: I’m afraid that based on the information I provide on student financial aid forms, my family appears wealthier than we really are. How does that affect my child’s chances for aid?

A: Many parents have become accustomed to lifestyles that include discretionary purchases (summer homes, extra appliances) that constrict their cash flow. As you apply for financial aid, you will be reminded that these are choices you have made—choices that hold a cash value that you could redirect toward college expenses. Think twice before buying that flat panel TV.

Q: Which form should we use in applying for student financial aid?

A: Check the financial aid requirements of each school in question. The Free Application for Federal Student Aid (FAFSA) is required at all schools to determine your eligibility for government funding, and many private colleges will want you to complete the CSS Profile as well. Don’t assume, however, that both forms will produce the same information. It is not uncommon for the Profile and the FAFSA to indicate different EFC amounts.

Peter Van Buskirk is the author of Winning the College Admission Game, published by Peterson’s. The book provides strategies for finding and getting into the college best suited for the student, with advice for both parents and teens. For more, visit Petersons.com or TheAdmissionGame.com.

Q: I’m afraid that based on the information I provide on financial aid forms, my family appears wealthier than we really are. How does that affect my child’s chances for aid?
A: Many parents have become accustomed to lifestyles that include discretionary purchases (summer homes, extra appliances) that constrict their cash flow. As you apply for financial aid, you will be reminded that these are choices you have made—choices that hold a cash value that you could redirect toward college expenses. Think twice before buying that flat panel TV.

Q: Which form should we use in applying for financial aid?
A: Check the financial aid requirements of each school in question. The Free Application for Federal Student Aid (FAFSA) is required at all schools to determine your eligibility for government funding, and many private colleges will want you to complete the CSS Profile as well. Don’t assume, however, that both forms will produce the same information. It is not uncommon for the Profile and the FAFSA to indicate different EFC amounts.

Peter Van Buskirk is the author of Winning the College Admission Game, published by Peterson’s. The book provides strategies for finding and getting into the college best suited for the student, with advice for both parents and teens. For more, visit Petersons.com or TheAdmissionGame.com.

Next Stepper talk back: What is your advice to parents on how to help you plan for college?

Listen to your teen. If you do not agree with a decision they are making regarding the college process, take the time to find out why they are making that choice and be willing to explain your side of the issue. —Jesse, Sturbridge, Mass.

My advice to parents is don’t help too much. Let your child write their own résumé, fill out their own applications, call for information themselves, etc. Just supervise and check over their paperwork. —Karlie, Thibodaux, La.

My advice is to start a separate savings fund ASAP for the child because college nowadays is pretty expensive. —Giselle, Brooklyn, N.Y.

Parents should provide support and help us in finding a college that we want to go to—not where they want us to go to. They should help us to think about the campus life and the real world without giving us a lecture. —Holly, Middletown, R.I.

My advice to parents is to listen to your teen and their dreams and desires. Communication is vital. Also, be supportive and even enthusiastic about our plans. Try to be there as much as possible, and help with filling out the FASFA. Most importantly, pray for us! —Susi, Cedarville, Ohio

Motivate your child to keep their grades up. —Arie, Blakely, Ga.

I want my parents to be with me when touring the campuses this fall and help me in deciding which university is right for me. —Kara, Dallas, N.C.

"Toga! Toga! Toga!" Does the thought of sending your student to college conjure up images you’d rather not have?

If you think going to a “state-owned school” means all-night parties, football games and little class time, it’s time to think again.

There are three main types of state or public institutions of higher education.

1. Land grant schools bear the name of their state. They were founded by each state with certain criteria to follow, such as Penn State and West Virginia University.

2. State-related schools are public but funded only partially by the state, such as the University of Pittsburgh and Temple University. In several instances, land grant schools are also state-related, such as Penn State University.

3. State-owned schools are owned and governed by the state. Examples are the State University of New York system and the Pennsylvania State System of Higher Ed.

Myth 1: At a state-owned school, you get what you pay for.

Truth is: People often use this phrase to justify paying a high price on items. But when it comes to higher education, that’s not always the case. State-owned schools often offer lower tuition rates not because their education is second-rate, but because they are supported financially by the state government and not privatized.

They do not require payments to CEOs, shareholders or other interest groups. State schools offer quality, competitive educational programs at affordable prices, even for out-of-state students.

Best advice: Check into the tuition costs, and ask where the dollars are spent.

Myth 2: At a state-owned school, classes aren’t taught by real professors.

Truth is: Classes are taught by “real” professors, those who have a doctoral degree in the area they teach. There may be a few graduate teaching assistants (GTAs), but they aren’t just anyone pulled off the street.

GTAs go through competitive training to be able to provide the best education to underclassmen.

Best advice: Have your teen research faculty biographies, and then contact faculty at different schools. Your student should ask questions about the program and, if you’re able to visit the school, ask to meet with the professors face to face.

Myth 3: At a state-owned school, you can only study general subjects.
Truth is: Many state-owned schools offer more areas of concentration than other higher education institutions. Majors are constantly evolving.

Many state-owned schools offer more than 125 majors, master’s and doctoral programs. In addition to providing excellent academic experiences, students can also study abroad, develop independent studies, dual majors, and combine programs to make the most of their education.

Best advice: Have your teen do some research on majors of interest and what schools offer those programs. High school counselors are great resources for this information.

Myth 4: My teen can’t get an athletic scholarship or play varsity sports at a state-owned school.

Truth is: Many of the state-owned colleges and universities not only offer varsity sports, but many offer NCAA Divisions I and II.

Best advice: Check with high school coaches for more information about the sport and/or the state schools your student is interested in.

Myth 5: My teen won’t be able to get into graduate school unless she starts at an Ivy League or well-known college.

Truth is: It’s grades and enthusiasm that earn a student the opportunity to continue their education at the graduate level.

Graduates of state-owned colleges and universities can be found all over the country studying for graduate degrees.

Many state-owned schools offer programs in conjunction with other universities to maximize time in school. For example, a “2+3 program” in engineering would offer the first two years of college at the state-owned school, continued with the last three years at a second university.

I hope that I’ve helped to clear up some of the myths about state-owned schools. I encourage you to take advantage of visitation programs set up to answer all your questions and set the record straight for state schools across the United States.

Jessica A. Halchak is an admissions counselor at the Indiana University of Pennsylvania.

Planning for college
When the countdown to college begins, the pressure and deadlines can strain even the best family relationships. You and your parents should watch out for these potential conflict areas.

Time bomb 1: Clashes over colleges and courses
Before you know it, you’ll be up to your ears in college planning materials.

“The college admission process is all-consuming for families,” says Judy Anderson, a partner with College to Career, a consulting firm in suburban Minneapolis.

You may soon discover that you and your parents have very different ideas about which college you should attend and what you should study. It’s important to discuss your differences. Your parents might be able to help you see other factors in a college choice, or you might convince them of another school’s worthiness.

“Where you go to college does not guarantee success,” reminds Anderson. It’s what you do with your education that matters most.
 
Parent tip: There are lots of terrific universities. Help your student explore the possibilities. Remember, getting into college is the easy part, but getting out with a degree is what matters. If your student is excited about their coursework and campus, there’s a greater chance they will succeed.

Time bomb 2: Misunderstandings about money
As you’ve probably heard, there is a magic formula that indicates what your family is expected to put toward college.
 
“It’s fairly common that a family can’t or won’t be able to pay,” says Helen Nunn, director of financial aid at Susquehanna University in Selinsgrove, Pa. Talk to your parents about money now, before you get to deep in college planning. Don’t wait until the first bill is due to discover  they can’t pay as much as you hoped. The earlier you can start your search for funding, the better.

Before you decide to cover your tuition with college loans and credit cards, consider getting a job. According to Nunn, students who work during college tend to be more organized and earn better grades. If you work on campus, your boss will probably let you work around your class schedule. “A job on campus can be like a home away from home,” says Nunn. “It’s nice to know that someone on campus knows you and is looking out for you.”

Parent tip: Discuss money now. Help your student find a job and open a banking account. Teach him how to use credit wisely so he doesn’t impact his ability to get loans later on.

Time bomb 3: Difficulties with details and deadlines
According to Michael Alexander, chairman of Student Financial Aid Services in Davis, Calif., “One error on the FAFSA could keep you from attending your college of choice.”

Don’t let that error be missing your school’s financial aid deadlines. Check to see if additional financial aid forms are required by the colleges you’re considering, and keep a calendar of deadlines in a prominent place.
 
If you need your parents to complete certain paperwork, let them know immediately. Don’t wait until the last minute to ask for help.

Parent tip: Your teen has a ton of work to do right now. Look for ways to lighten the load. Doing simple things like making copies, running to the post office or pulling information from a few Web sites can demonstrate your support. Don’t admonish them if they take a day off now and then…after all, they’re human!

College is just around the corner, and the clock is already ticking. Make plans now so that a college education can become your reality. And remember, as hard as it gets, there are people available to help you every step of the way.

Overwhelmed by the FAFSA, loan applications and schools with costs topping what your family earns in a year? Think your family will never be able to pay for college?

Think again. Parents, here’s what to do before, while and after your teen applies to college to ensure your family’s financial road to higher education is smooth. Consider this your college guide to financial planning!

Before applying to college
Have a family conversation about college costs
Regardless of what your plan is to help your teen pay for college, share it as soon as possible. Planning to pay for it all? Define “all.” Must they earn a minimum GPA? Does “all” include room, board and spending money? Will you pay for more than four years of college? If you plan to pay for part, little or nothing of college, have that discussion, too. Help your teen search for other solutions, such as student loans, scholarships or part-time jobs.

While applying to college
Don’t be afraid of private schools
However daunting a published tuition figure is, remember that most private schools have large endowments, which can translate to scholarship money for worthwhile students. Look at the college guides. If your teen finds a private college that is a good fit, it might just match—or cost less than—a public school’s cost to attend.

Consider a community college
Have your teen consider spending a year or two at a community college to save money. Community colleges are affordable places to earn associate’s degrees and take courses required of any degree, allowing students to transfer to a four-year school later. If transferring is your teen’s goal, encourage him to meet with a transfer adviser ASAP to learn his options.

Look for little-known secrets
Did you know that Cornell University actually has New York state public colleges under the umbrella of the university?

Students who attend Cornell’s College of Agriculture and Life Sciences or College of Human Ecology receive an education partly funded by the state of New York, so they pay roughly half of Cornell’s usual tuition.

Ask the colleges your teen is interested in if there are similar setups. (Hint: Also check out the New York State College of Ceramics at Alfred University in Alfred, N.Y.)

Harvard and Yale have programs that ax tuition for families with incomes of less than $60,000 (Harvard) or $45,000 (Yale) a year. If your family meets this fiscal requirement, your teen might have a shot at a free Ivy League education.

And another “secret” to consider: programs through which students earn a bachelor’s and master’s degree in five years. That will save your student at least a year’s worth of grad school tuition.

Encourage your teen apply to an honors college
Many schools offer honors colleges—programs for students at the top of the applicant pool—that usually offer tons of perks: research opportunities, different course opportunities, internships, preferential class registration and grants for activities like study abroad. Encourage your teen to call the admissions department to see if his potential university has an honors college, and if he’ll automatically be considered or should apply separately.

After applying to college
Fill out the FAFSA
The Free Application for Federal Student Aid (fafsa.ed.gov) is used to determine your family’s eligibility for government student loans and grants. Many colleges also use it to determine eligibility for their own institutional financial aid programs. It doesn’t take long to complete—about 20 minutes—but it could be your teen’s ticket to free money from the government or college, low-interest loans or a work-study job.

Your family should fill out a FAFSA every year you have a teen in college, no matter how much aid you think you will (or won’t) receive. The bottom line is, you’ll have a hard time getting any tuition help if you don’t apply.

Know what you’re getting
A grant is free money that doesn’t have to be paid back, like a scholarship. Loans must be paid back in full with interest. The lender will spell out the terms of the loan agreement, including when your student will start paying it back, how often payments will be due and how much each payment will be. Student loans are common and effective ways to pay for college. Encourage your teen to borrow conservatively, and make sure your student is clear about how much and how often payments will be.

Follow all deadlines
Check the Web sites of your teen’s prospective colleges for school-specific financial aid forms. Questions? Call the financial aid office and ask to speak to a representative. When your teen receives an award letter, make sure you adhere to the deadlines. To reserve a spot in the college’s freshman class, a tuition deposit will likely be required by May 1.

Apply for school scholarships
Most schools offer scholarships to current students, and many students don’t realize they’re available. Your child should find the college financial aid office online and research scholarships there. The awards may reward leadership or community service or be major-specific. One of your teen’s talents or passions could end up paying off.

Leave the car home
One of the biggest unexpected college costs can be when a student takes a car to college. Insurance, parking fees, gas and maintenance adds up fast. Don’t let your teen pour time and money into a vehicle in college; insist the car stays home.

Encourage your teen to get a job
Colleges respect teens who successfully manage part-time jobs while maintaining their academic and extracurricular commitments. Encourage your student to perfect time management skills and help pay for items like their textbooks, phone bill and dinners out by getting a part-time job in high school and college.

Next Steppers talk back: How do you plan to pay for college?

College guide
 

In Georgia, they offer the Hope scholarship. This will pretty much cover a big part of my expenses. I have a part-time job, and my parents help me out a lot. Eventually when I study abroad, I will probably take out a student loan. —Isabel, Athens, Ga.

 I plan to use the Hope scholarship. I also hope to receive a 4-H scholarship or a band scholarship. —Arie, Blakely, Ga.

I plan to pay for college with scholarships, grants, working, and if the need arises, with loans. —Susi, Cedarville, Ohio

I can’t pay for college. My mother works two jobs a day just to keep all of our heads afloat, so I wouldn’t dare ask her to make another sacrifice for me. I’m applying for scholarships and I’m looking at only colleges who offer the financial aid I need or diversity/academic scholarships. —Ulandra, Battle Creek, Mich.

I plan to cut costs as much as I can, along with work and scholarships/grants. —Jesse, Massachusetts

I plan to pay for college by applying for scholarships, getting a job and getting loans from my parents. —Giselle, Brooklyn, N.Y.

I’ll be receiving financial aid and paying with money I’ve saved since 10th grade. —Sylvia, Southfield, Mich.

I plan to apply for a scholarship from the Louisiana government that will pay for two years of college, and my parents are paying the rest. —Karlie, Thibodaux, La.

Private Colleges

What do you tell families who feel that they have to choose between private school tuition or saving for college?
If a family knows the private college is the best choice for the student and their budget can accommodate the cost, then the decision may be made already. Understanding how to fit these bills into the scheme of the family’s life is imperative. 

In your experience, does a private, grammar school education have a bearing on the type and the amount of available financial aid?
Because the term financial aid is truly based on need, we find that the school one attends (public or private college) does not typically get you more aid. Your income, investments and assets dictate your ability to qualify for financial aid. Occasionally, scholarships are considered financial aid, although they are typically based on student merit, such as school attended and grade qualifications. Parents may find some private schools provide superior programs and that in turn may qualify students for more scholarships.

Do you have any statistics that show that a private school education increases the likelihood of scholarships or other types of financial aid? 
Scholarships are awarded for a range of specifics, such as minority class, religion, heritage, and involvement in community and athletics, or high GPA, excellent grades or a well-written essay. Some scholarships may be given just for students attending a certain high school, but the fact a student attended a private high school will not usually increase their chance of getting scholarships. Financial aid is awarded based on need and if the parents and students do not have need, they will not qualify for most types of financial aid, regardless of the fact they attended a private school.

Are there ways to finance private school in order to make it easier to save for college? For instance, are private school loans that allow families to spread payments out over a number of years a good idea? 
Tuition Payment Plans such as Sallie Mae’s TuitionPay offer an interest-free, debt-free way to spread tuition payments over a number of months. The TuitionPay plan is not a loan: There are no interest payments, just a low annual enrollment fee. Plans like this allow parents to spread payment out so that they can better handle the cost of college.  

How much should parents save toward college per child?
This is definitely an individual decision. If a parent is allowing their student to choose their own college, it is important to understand that school’s costs. Visit the school’s website and pay close attention when schools state they are raising their tuition, it’s important to understand costs before you set up a plan to pay them. After all data is gathered, then parents and their students can devise an informed plan, fitting to their individual situation. Some parents completely cover tuition for their students. Some parents say they will only pay for X dollars or percentage, leaving the student responsible for the remaining amount.

How should parents go about deciding what percentage of a college education they’re going to pay?
Some parents choose to pay for college solely through personal funds, and others ask their students to play a role in paying for college. If asking a student to assist in the paying of their own tuition, remember their Stafford loan limits are minimal (Stafford loans are $3,500 for freshman year), covering a small percentage of the yearly tuition. This could be a good way to actively involve your child in the responsibility of not only attending college, but paying tuition as well without overburdening with large debt.

Beyond simply trying to save more, do parents need to plan or do anything differently when they also anticipate paying for graduate school?
Many parents get caught up in the need to pay a very high price for students’ undergraduate education at an elite college and then must pay for an expensive graduate program. We advise parents to find the right undergraduate school for their child, but also one that fits their pocketbook. Spending more money than is necessary to attend a top name undergraduate school may not always be what it takes to get into graduate school. Don’t assume an expensive undergraduate school will secure graduate admissions or even guarantee a job. Typically the degree you earn and skills you acquire in college are what drive your ability to get a job, not the name of the school.

This article provided by Sallie Mae. For more information, visit www.collegeanswer.com and review “5 Steps to Paying for College”.

Parents and college planning

When Nancy Rodriguez began planning for college, she quickly noticed that her parents’ involvement in the process was limited.

“They just knew about where I wanted to go,” says Rodriguez, a senior at the University of Southern California who grew up in Los Angeles’s inner-city community of Southgate.

With two parents who worked constantly and viewed education differently than other parents she knew, Rodriguez says she sometimes felt disappointed at her family’s lack of involvement in her college planning.

“My parents even said, ‘You could just find a job’ [instead of going to college],” she says. “At times, it could be really disappointing to hear that.”

Many students face less parental involvement in their college planning process than they’d like. Why is that?

“Some parents may feel like they’re not sure how much they can contribute,” says William Vela, Director of El Centro Chicano at the University of Southern California.

Here’s how both students and parents can involve each other in the process more:
• Students: Realize that your parents’ educational process may have taken place in a different country!
• Parents: Recognize your own feelings about education, and discuss how they differ from your teen’s.

Cultural differences and preconceptions about education may be the issue for some parents.
“They might be people who immigrated to the United States, so their educational process happened in another country,” Vela points out. He adds that this can put parents in a peculiar situation: Though your parents certainly want what’s best for you, they may not know how things work when it comes to applying to college in the U.S.

• Students: Translate when necessary.
• Parents: Ask for clarification if needed.

Something as simple as translating or describing some of the major terms behind college planning can become a daunting task for students whose parents speak limited English.

Rodriguez recalls telling her parents about grants she would receive—and being unable to allay her parents’ fears that those grants would not have to be paid back.

“There’s not a Spanish word that explained grants to my parents,” she says.

• Students: Take the responsibility for gathering information about colleges.
• Parents: Set aside time to talk about college specifically with your teen.

Still other parents may be prevented by economic reasons and hectic work schedules from taking time off to help you with your college planning. Rodriguez acknowledges that what initially seemed like disinterest from her parents was actually attributable to their jobs.

“That’s a big factor that I didn’t realize, and thought they just didn’t care,” Rodriguez says. “Sometimes they want to be involved but can’t because of their difficult schedules.”

• Students: Ask about, and take advantage of, college Q&A sessions for new students and parents.
• Parents: If you see an opportunity in the college-planning process to make it more accessible to parents, share your ideas with high school or college staff.

Vela says colleges and universities aren’t necessarily making things easier for parents of multicultural students.

For example, Vela would like to see colleges present materials in dual languages and have question-and-answer sessions for parents of multicultural students.

“If the school’s showing that effort, then parents are able to more freely ask questions and feel like they can get involved,” Vela says. “Parents sometimes need to speak to other parents and form support groups. They may be able to find out about some amazing opportunities.”

• Students: Share your college experience with your parents before they ask.
• Parents: Show interest in your student’s postsecondary adventures.

Rodriguez says something as simple as parents talking to their kids in college can help both the parents and students feel more involved.

“Ask your kids what they’re doing,” Rodriguez advises parents. That helps students “realize that school is important to [you].”

Rodriguez says she makes a point to call her parents about upcoming activities in which she’s involved.

“If I’m having an event, I tell them and try to bring them in a little bit,” she says. “They came once and really liked it, so they’re getting more involved with the [collegiate] community.”

Rodriguez shows her parents around her school and asks them to participate when possible. She recently enlisted her mother to cook for a Latino cultural event that she’s organizing.

Vela recalls trying to get into a magnet program in high school. He and his mother both attended a conference with school authorities.

“My mom’s educational level wasn’t the highest, and her English wasn’t the greatest, but together we were able to have that conversation with the principal,” Vela says.

Because he stepped up and got his mother involved, Vela was accepted to the program and went on to college. “I think sometimes you almost have to take the lead in certain conversations, but still need to involve your parents,” Vela says.

Both students and parents benefit when Mom and Dad are involved in the college-planning process.

“It takes an effort on both sides,” says Rodriguez. “But once you get it going, the results are good.”

What is early decision? What is early action?

Early application plans have been around for decades. However, they’ve only become hot topics among college-bound families over the past 10 years. Today, they are actually the driving force behind some students’ college planning.

To understand how early plans have taken center stage for some students, you need to first understand how the college application calendar works. Generally speaking, there are three different college application timelines:

1. Regular admissions. Students apply by a midwinter deadline, hear from colleges in early April, and make decisions and notify colleges by May 1 (known as the universal candidate reply date) about whether or not they will attend. This was the norm until fairly recently.

2. Rolling admissions. Students apply and usually receive an admissions decision within two to six weeks from the time they submit an application. Most public universities and many private colleges use this timeline. It’s by far the most widely used calendar today—and popular with students because it reduces the period of uncertainty.

3. Early application. Essentially, two types of early plans—one nonbinding and the other binding—are offered by several hundred colleges that also use the regular application calendar. Here’s how they differ:

• Early action (EA). This is a nonbinding plan that requires students to submit applications in early fall (usually by Nov. 1 or 15). The college lets them know whether or not they’ve been accepted by early January, but they have the right to wait until May 1 before responding. This gives them time to compare colleges, including financial aid offers, before making a decision, because an EA application doesn’t commit a student to enroll if offered admission.

• Early decision (ED). This is considered binding, so it’s essential that your teen be certain about wanting to enroll at that college. As with early action, students submit applications in early fall. Sometime between mid-December and the beginning of January, the college notifies them whether they have been admitted, deferred to the pool of regular applicants for a spring decision, or denied admission to the college.

By applying under an early decision plan, your teen has made a commitment to attend that college and surrendered the right to wait until May 1 to make a decision.

High school counselors and college admissions officers take that commitment very seriously. Reneging on your agreement after being offered early decision admission could result in other colleges refusing to admit the student.

Susan Biemeret is coordinator of college counseling at Adlai E. Stevenson High School in Lincolnshire, Ill. Excerpted from the 2007 College Handbook. Copyright © 2006 The College Board. Reproduced with permission. collegeboard.com

Common College Terms

Parents, need to know what all those common college terms are? Read on!

Add: Adding a course is when you join a course roster either before the class starts or during the first week of courses. This varies at each university. See your adviser or the registrar’s office for more information.

Admissions office: The admissions office is where you can go to meet with an admissions counselor to learn about the different degree programs offered by a university. The admissions office is also where you send your application, admissions fee and official transcripts. If you are accepted into a program, you will receive an acceptance letter from the admissions office.

Adviser: An adviser is a person you can talk to about your degree program, schedule, study habits, what courses to take, how to add/drop/withdraw from a course, degree or course requirements, and who can help you with any other questions you have regarding your degree.

Audit: When you take a course for general knowledge building, not a grade, it’s called auditing. Audited classes allow you to attend a course to gain information without being expected or required to do the assignments. Audited courses do not count toward your degree requirements but do appear on your transcript.

CLEP: CLEP stands for “College-Level Examination Program.” CLEP exams are distributed by the College Board and can be used to fulfill requirements of your degree. Visit www.collegeboard.org for a list of the CLEP exams offered.

Credit hours: Credit hours are awarded to a student upon passing a course. Courses typically range from one to five credit hours. You’ll need approximately 125 credit hours to
graduate.

Drop: Dropping a course is when you remove yourself from the course roster either before the course starts or during the first week of classes. Simply not going to class does not automatically drop you from a course. When you drop a course before a university’s deadline, you receive a full refund.

Full time: What you are when enrolled in 12 or more credit hours, usually three to five classes.

Half time: What you are when enrolled in six to 11 credit hours, usually two to three classes.

Major: Your major is the title of your degree. You may have different concentrations or focus areas within your major, but that does not change the title of your major. For example, you can major in business administration but focus on finance and marketing. 

Matriculated: This is when you have officially enrolled in a program after sending in the required official transcripts and admissions fee and receiving an acceptance letter. You must be matriculated to receive financial aid. 

Minor: A minor is an extra credential you can receive that is a part of your major. A minor usually consists of five to six courses in one area of study.

Online class: A class taken completely through the Web. You work on the course material through e-mail and online chat discussions, independent readings and homework.

Official transcript: A transcript is official if it’s sealed by the admissions office of that college. These transcripts are also stamped across the seal. If you receive an official transcript and open it, it is no longer official. To obtain an official transcript, you must contact the college registrar’s office.

Quarter/semester system: The quarter system means there are four 10- to 11-week terms throughout the year. In the semester system, there are usually two main semesters per year (fall and spring), each running 15 to 17 weeks depending on the school.

Registrar’s office: The registrar’s office of a school is where you go to add or drop a class from your schedule, request official transcripts, obtain a student ID, withdraw from the college or take a leave of absence. The registrar’s office also houses all official student documentation.

Transfer student: There are two types of transfer students: internal and external. An internal transfer student remains at the same university but changes majors. An external transfer student leaves one university to enter another.
If you transfer, be aware of the possibility that not all the courses you have completed will transfer into your new major or university. Each university and major has its own requirements for what will and won’t transfer.

Unofficial transcript: A transcript is unofficial if you have opened an official one or if it’s just a list of your courses with the corresponding grades and credit hours.

Withdraw: When you withdraw from a course, you must fill out a course withdrawal form and have your department chair sign it. The further into the quarter you withdraw from a course, the less money you will be refunded.

We hope you have enjoyed this list of common college terms! Now, start planning!

Abby Berner is an academic adviser in the Center for Multidisciplinary Studies at the Rochester Institute of Technology (RIT).