This means that colleges that have higher graduation rates would have more money to hand out.

States consider basing college funding on graduation rates

States fund public colleges primarily based on how many students are enrolled. But a number of legislatures are considering policies that would link funding to whether students graduate.

Lawmakers in Ohio appear likely to adopt a plan, introduced this year, that would base 100% of higher education spending on course and degree completion. Indiana is considering a similar but more modest proposal. And in Louisiana, the governor and Legislature have called for plans that tie 25% of higher education funding to student success.

President Obama wants the USA to lead the world in college graduates by 2020 and has proposed $2.5 billion over five years to states that seek to boost college completion rates for low-income students.

J.D.'s comments: Makes sense (or cents) to me, base it on results. Maybe we should do the same with every political office... What do you think?

THE question every future college student must ask is...

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Get more great tips LIVE and in-person at a Free No-Holds-Barred, Take No Prisoners Guide to Everything College workshop. Click the Free workshop RSVP button on the right side of this page.

When Sean Galligan, a senior at Weymouth High School, received his financial aid package from Worcester Polytechnic Institute this spring, he knew right away that he had to apply for more money.

Galligan's college savings took a hit when the stock market plunged, and so instead of having a good portion of tuition costs set aside, Galligan needed extra financial aid.

"Money has been hard to come by and I felt I wanted a little more help going into my freshman year," Galligan said.

After re-evaluating his situation, WPI added a $3,700 scholarship to Galligan's package.

The number of college students seeking additional aid at both private and public institutions is growing rapidly in the face of family layoffs, battered savings accounts and bankruptcies brought on by the deep recession.

"This is going to be a year like none other that we've ever seen," said Clantha McCurdy, vice chancellor at the Massachusetts Office of Student Financial Assistance.

"That's what you get when there's challenging financial times," McCurdy said. "A lot of parents have lost their jobs."

McCurdy said there is no statewide count on re-evaluation applications - requests by students seeking another run at financial aid. But she said she has no doubt financial aid offices are seeing "huge increases" in requests. Financial counselors at the University of Massachusetts-Boston are encountering two petitions per day, up from two per month last year.

Judy Keyes, director of financial aid at UMass-Boston, sent an e-mail this spring telling students there is additional aid available. The e-mail encouraged students facing financial hardship to send the school a letter describing the circumstances, such as unemployment, reduced work hours and or a decreased credit rating.

"We're always concerned about those that might leave without pursuing other options," Keyes said.

Bridgewater State College saw its requests climb to 86 compared to 56 at this point last year, a 65 percent increase. Though re-evaluations involve only a small portion of the 6,000 Bridgewater students receiving help this year, financial aid director Janet Gumbris said the increase is atypical.

One reason for the spike in financial aid re-evaluations may be unemployment. Since September, more than 75,000 Massachusetts workers have lost their jobs, according to the Executive Office of Labor and Workforce Development. The state's 7.8 percent unemployment rate - representing 265,900 people -- is at its highest level since 1993.

McCurdy said her financial aid office is receiving four times the number of calls than previous years. She encourages her staff to spend extra time with parents to explain their options, such as reapplying for more state grants.

Reggie Harge, a program manager at the TERI College Planning Center in Boston, said he's heard more questions about financial aid re-evaluations this year than any time in his 13 years at the Education Resources Institute, a national organization that serves 8,000 Massachusetts students annually at its offices in Boston and Brockton.

"The economy is doing us a favor in one sense, in that it's bringing more clients to us," Harge said. "But it's unfortunate the economy is having that kind of impact on students. It breaks our heart to hear these stories."

Those stories include an older student who came to the center for help after losing his $40,000-a-year job. The man's financial aid award letter included the previous year's income, but he could not afford classes with what the school was offering. Harge told him to call the college right away and explain what happened.

"It's up to the student to be proactive and tell the school 'Here's my situation,"' Harge said.

This year the federal financial aid form includes a question about displaced workers. The question has helped keep colleges informed about hardships, Harge said.

But if a student's financial situation changes after they submit the form, they need to send a letter or e-mail to the school. The school will then ask for more detailed information, such as unemployment checks or court bankruptcy papers.

Students will then be informed of the college's ability to provide more financial aid, usually during the summer, but possibly into the fall as money is freed up when other students who have received aid decide not to attend.

Private colleges have also experienced a spike in re-evaluation requests, though not as drastic as those at public schools. Western New England College spokesman David Stawasz said his institution has seen a big increase from incoming freshman, though the college has yet to compare this year to last because of its rolling admissions process.

"Financial aid forms rely on income for the past year," Stawasz said. "We have seen an increase in the number of people who have experienced a change in employment - losing a job, working fewer hours, etc. - from the previous year, sometimes even since the financial aid form was filed."

Stonehill College, which has experienced an overall 20 percent increase in financial aid requests from incoming freshmen, has also seen a 10 percent hike in the number of requests for re-evaluation compared to fall 2008.

"I believe that while the economy made people more cautious and (they) are therefore asking for additional funding, it was not because they had already lost their jobs," said Eileen O'Leary, Stonehill's director of financial aid.

Only 29 of 3,102 financial aid applicants at Stonehill cited job loss as a reason for seeking more money.

Private schools are seeing smaller percentage increases in such re-evaluation requests because overall they give more aid to students based on their higher tuition costs, said Richard Doherty, president of the Association of Independent Colleges and Universities in Massachusetts.

"Plus most of our schools are residential," Doherty said, "so the conversation between counselors and students is more straightforward, it's a more personal experience."

J.D. comments: Discovering the historical giving pattern (how much aid the school gives out on averge) of each college your child is applying to is critical in developing a financial plan so that you don't have to scramble at the last minute or take on excessive student loans. AND learn the 3 or 4 keys to position yourself to qualify for as much aid as you can.

original link

How long do you want your kid to be in college earning a 4-year degree?

Maricopa County -- Sal & J.D. ‘the college guys' have been asking parents for the last three plus years in the free workshops entitled How to not go broke paying for college, "how many years does it take to get a four year degree?"

Families are shocked to find out that on average it takes 6 years to get an undergraduate degree at a state school. Well, those cannons have blasted that ship, way way out of the water. This information can be easily found by searching the graduation statistics at any college.

The San Jose Mercury newspaper reported that San Jose State University has 1500 students who are working on their third year (or longer) as a college senior. Okay lets do the math. 3+3 is six plus one more to graduate, hey that is seven years.

1,500 students have been college seniors for at least three years. And some of these seniors really like it: 35 have been enrolled for at least 10 years, and 2 have been enrolled for 15 years.

At $18,124 per year (that is for in-state cost of attendance at ASU) times 7 years, that a whopping $126,000. You might as well buy the kid a brand new Porsche 911. I won't even add up the costs for going to college for 10 or 15 years it might give us a heart attack.

Parents have asked why it takes so long to graduate. One of a few reasons is because kids enter college and jump from major to major. Each time majors are changed the starting line is moved forward. Finding yourself in college is expensive. Having good assessment tools, resources and help to direct and guide your child, can reduce the graduation timeline.

J.D. Wyczalek (why-zall-ick) the founder of AZ College Consulting, LLC and Sal Allen help parents understand college financial planning, present ideas to shorten the graduation timeline and conduct free workshops. Click here for dates and locations.

With proper planning your child can graduate in 4 years (selecting the right college is only one piece of the puzzle.) So, how long do you want your child spend earning a 4 year degree?

Some counselors suggest applying to three types of colleges, safety, match and reach schools.

Understanding that a reach college is a school that maybe my child will be admitted. The admittance rate of colleges should be researched to determine if it is a reach school or not. As an example Harvard has an acceptance rate of 9%. This means that for every 100 kids that apply 91 of them are receiving a No.

I am not saying do not apply to these types of colleges; just make sure that you have a back up plan.

Top 15 hardest schools to get into, lowest acceptance rates

1. Curtis Institute of Music Philadelphia, PA Acceptance rate: 4.8 %
2. Juilliard School New York, NY Acceptance rate: 7.7 %
3. Harvard University Cambridge, MA Acceptance rate: 9.2 %
4. Princeton University Princeton, NJ Acceptance rate: 9.7 %
5. Yale University New Haven, CT Acceptance rate: 9.9 %
6. Stanford University Stanford, CA Acceptance rate: 10.3 %
7. Columbia University New York, NY Acceptance rate: 10.6 %
8. Cooper Union New York, NY  Acceptance rate: 10.7 %
9. United States Naval Academy Annapolis, MD Acceptance rate: 11.8 %
10. College of the Ozarks Point Lookout, MO Acceptance rate: 11.8 %
11. Massachusetts Institute of Technology Cambridge, MA Acceptance rate: 12.5 %
12. Brown University Providence, RI Acceptance rate: 14.0 %
13. National-Louis University Chicago, IL Acceptance rate: 14.3 %
14. United States Military Academy West Point, NY Acceptance rate: 15.0 %
15. Dartmouth College Hanover, NH Acceptance rate: 15.3 %

Top 14 highest acceptance rates

1. 1. Bellevue University Bellevue, NE Acceptance rate: 100.0 %
   2. Wilmington University New Castle, DE Acceptance rate: 100.0 %
   3. Baker College of Flint Flint, MI Acceptance rate: 100.0 %
   4. Gratz College Melrose Park, PA Acceptance rate: 100.0 %
   5. Utah Valley University Orem, UT Acceptance rate: 100.0 %
   6. West Virginia University--Parkersburg Parkersburg, WV Acceptance rate: 100.0 %
   7. Glenville State College Glenville, WV Acceptance rate: 100.0 %
   8. Mountain State University Beckley, WV Acceptance rate: 100.0 %
   9. Weber State University Ogden, UT Acceptance rate: 100.0 %
   10. Morris College Sumter, SC Acceptance rate: 100.0 %
   11. Peirce College Philadelphia, PA Acceptance rate: 100.0 %
   12. Oklahoma Panhandle State University Goodwell, OK Acceptance rate: 100.0 %
   13. Northwestern Oklahoma State University Alva, OK Acceptance rate: 100.0 %
   14. Southern Nazarene University Bethany, OK Acceptance rate: 100.0 %

It is exciting to apply to very select colleges, it can be equally rewarding to be accepted into a lesser know college with a higher acceptance rate. The important factor to research is “fit”.

Have your student physically go to the college campus and check it out. Go on the tour. Look at the other students that are there and ask yourself “are these kids I could be friends with?”

College is a 4-year commitment and one reason it takes some kids 6 years to get a 4-year degree is because of switching colleges after a semester or two. Finding a good fit college can shorten the graduation timeline.

J.D. Wyczalek is the founder of AZCollegePlanning.com, AZ College Consulting, LLC.

By J.D. Wyczalek (why-zall-ick) Arizona’s premier college planner

Phoenix -- Did you read the article in the StarTribune today?

The last paragraph of the article in the StarTribune states "Nothing is too shocking in terms of student loans," said Paul Raymond, a Lutheran Social Service of Minnesota financial counselor who advises students at the U. "It's not a surprise to have $60,000.00-plus dollars in [student] loans."

It is a crime and travesty that newly graduated students are saddled with umpteen thousands of dollars of debt. Forced into debt because of poor planning or lack of understanding of the Higher Education Opportunity Act of 2008.

Are we in the process of creating a generation that will be enslaved to debt? Yes! Credit card debt is out of control as more and more college student turn to credit cards to pay for books and supplies.

What can we do about it? Learn all you can about how the financial aid system works and leverage your situation so that you can qualify for as much financial aid as possible. Educate your children about how credit and debt work.

Option one: find a cheaper school. (Less expensive may not really be cheaper if the college’s historical giving and finical aid pattern is poor.)
Option two: learn the rules or hire a professional who knows the rules. Beware of swindlers who don’t have you and your student’s best interest at heart and are looking to make a quick commission dollar.
Option three: Don’t go to college. “Workers with bachelor’s degrees earned an average of $26,000 more per year than those with only high-school diplomas, according to a new report on education trends released today by the U.S. Census Bureau,” The Chronicle of Higher Education reports.

If you truly know the (financial aid) rules you can legally and ethically stack the deck in your favor.

Do you have an exceptionally bright child? Is your kid advanced for his/her age? Then consider the brainpower scholarship of the Mensa Organization.

Mensa is the largest, oldest and best-known high-IQ society in the world. (Heck, my father-in-law is a member!) It is a non-profit organization open to people who score at the 98th percentile or higher on a standardized intelligence test.

The Mensa Education & Research Foundation college scholarship program bases its awards totally on essays written by the applicants. Consideration is not given to grades, academic program or financial need.

*The scholarship process begins during the first week of September and ends on the scholarship application deadline of January 15.

The amount of money available for awards (nearly $70,000 last year) only had about 4000 to 6000 applicants. Applicants need not be Mensa members, you only need to live near a chapter and apply through the chapter. There are chapters is just about every state and major cities. Visit the Mensa website for details.

So if your kid is a regular Doogie Howser or Einstein why not apply. You remember Doogie Howser, don't you? It was a TV show in the late 80's early 90's that dealt with the drama of a teenaged genius coping with life while being the youngest physician in the US.

Mensa Foundation

The Free Application for Federal Student Aid students file annually to determine financial aid received is composed of six pages and 120 questions, which is longer than many tax returns. At this length, students said the form can be burdensome.

Sophomore interior design major Clancy Pannell said the form took him over two days to fill out because he had to gather the information and make sure it was correct.

"I don't want to spend all this time filling out a lengthy form that's frustrating," he said. Pannell said he wanted to apply for a loan but didn't feel he should have to fill out the form to qualify for it.

Lengthy, complex form

The FAFSA contains questions based on information from the federal tax forms and a student's adjusted gross family income. It uses this information to determine the Expected Family Contribution of students going to college. The EFC is then used to appropriate state aid and federal loans.

Another complaint students have about the form is that it contains complicated terminology.

"I guess it's necessary, but I'm not sure what some of it means," junior nursing major Amanda Engelhart said.

She said the information is pulled from your federal tax form, so "you might as well check a box" on your tax form. She added she thinks more students would fill it out this way.

Junior nursing major Gina Ferrante agreed. She said she doesn't fill it out because she thinks "it's not worth it." She added she would do it was as simple as checking a box.

She is not alone. According to the U.S. Department of Education, 40 percent of college students fail to file a FAFSA. Nonetheless, the department did find almost 21 percent more students filed the FAFSA in 2009 than in 2008. The department said a reason for this is the state of the economy.

Simplifying the form

President Barack Obama said he recognizes the complication and volume of the form is overwhelming for many college students and offered a similar solution to what Engelhart described. He wants to eliminate the FAFSA. Instead of the form, he would have families check a box on their tax form indicating the information can be used. This is one of many proposed options to change the FAFSA.

Mark Evans, director of Financial Aid at Kent State, said it's "a radical change" but definitely an option to simplifying the process. He acknowledged the lengthy form could be cut down.

"There are a number of questions on the FAFSA that have no impact on financial aid, but someone uses the information to process aid," he said.

Simplifying the form may convince students who don't fill out the FAFSA to do so. This is a proposed change, but legislation has already been put into place to change the form.

The Higher Education Opportunity Act was signed into law by President George W. Bush on Aug. 14, 2008. The act requires the secretary of education to work toward reducing the number of FAFSA data elements by 50 percent and submit a report on the progress.

Evans said reducing the form may affect the formula for the EFC.

"If we had to reduce to 50 questions from the current form, (we) would have to know what impact to the EFC would be so there isn't any inconsistencies," he said.

Another change brought about by the Higher Education Opportunity Act, Evans said, is that students with a family adjusted gross income under $30,000 are eligible for auto-zero EFC and can fill out a simplified version of the form, EZ FAFSA. Also, students with a family adjusted gross income of less than $50,000 are eligible for a simplified needs test that would allow them to fill out the EZ FAFSA, too. These applicants will have the ability to file over the phone.

Students suggest changing FAFSA's terms for filing as an independent. Sophomore nursing major Jennessa Macdonald said she dislikes the fact that she has to list her parents as a dependent when she pays for college on her own.

"I don't see a point to it," she said. She added that she doesn't think you should be 24 years old to file as an independent.

Evans said there is an option available for students to file as an independent, but it only applies to a small amount of students.

If a student's FAFSA is partially completed, the Financial Aid Office will encourage the student to talk with a financial aid specialist or get parent information. If a student can't get parent information, then the school can request the state government to process the student as an independent. Evans said this is rare and fewer than 100 Kent State students have these circumstances.

Evans said there is a lot of energy now put into talks about simplifying the financial aid process.

He added that, in considering these proposed changes, there will have to be evaluations of smaller, shorter versions of the FAFSA to see what works.

J.D.’s comments: While many would argue to make the FAFSA form easier to fill out, the question remains how will these changes affect my child’s ability to get aid. The convince of a single click on your tax form isn’t all that it is promised to be. There are still many questions that must be answered that are not on the tax forms, such as, which college would you like to submit for financial aid, and are you a first year, second year ect. student? Here is a question for you, when was the last time the government ever made anything easier?

Original article posted here

You don't have to be an economics major to see lots of appeal in President Obama's plan to radically change the nation's college financial aid programs.
   
The President wants to replace loans made by banks, on a for-profit basis and subsidized by the government, with loans made directly by the government — on a non-profit basis. The Congressional Budget Office estimates that making loans that way, without government subsidies to the banks that in turn make money on the loans, would save $94 billion over the next decade. The Obama administration wants to use that money to expand another student aid program — Pell Grants, which are just that (rather than loans) for more needy students.

Mr. Obama wants to convert bank profits into scholarships, in other words.

And for that, he has a battle on his hands that's worthy of being a case study for political science majors.

The President's proposal for expanding financial aid and, yes, limiting the profits that lenders can make on students' college education adds to the cries that he's recklessly expanding government. Pell Grants — once known as Basic Educational Opportunity Grants, but later renamed after their champion, former Sen. Claiborne Pell of Rhode Island — are an undisputed government success story.

Some 54 million Americans have gotten through college with financial help that imposes no debt upon them. About the worst that can be said of Pell Grants is that they've had the unintended consequence of some high-priced colleges suspected of using their availability to raise their tuitions even higher.

Yet here come the opponents of more Pell Grants and even direct government loans.

"The administration has decided that it wants to capture the profits of federal student loans," says Kevin Bruns, executive director of the trade group America's Student Loan Providers.

We're tempted to offer to pay — through a low-cost loan or even an outright grant — for a semantics course for Mr. Bruns. "Capture the profits" sounds like piracy of sorts, and something altogether different from saving money and using those savings for the most benevolent of purposes.

Other students of what's developing into a potential showdown might remember that the private companies providing for-profit student loans would have collapsed without a government rescue last year. Two years ago, investigations by New York Attorney Andrew Cuomo's office found irregularities and outright corruption in that industry. Now, some members of Congress are wondering why private lenders are even necessary when the government can simply provide the money rather than guaranteeing what then become high-profit, low-risk loans.

That question could be pondered further at a seminar on the political peril of trying to do the right thing and educate more people. Mr. Obama could be a guest lecturer, explaining the huge price of the best of intentions.

The issue: The President wants to steer what have been the profits on college loans to outright grants.

The Stakes: Who would object? For-profit lenders, alas.

http://www.timesunion.com/AspStories/story.asp?storyID=789998&category=OPINION

Did you see the news last night? Had to pass this article on to all of you to show you another example of Colleges & their staff being on OVERLOAD.

They make mistakes, sometimes huge colossal mistakes.

Last year a college in New York made an enormous blunder. They handed out thousands of dollars of financial aid and when the IRS came knocking on their door, the New York University in Buffalo (I won't mention which one but you can figure it out). Anyway the college had to call back several hundred students who had to give back upwards of $12,000.00 of aid. Ouch!

Now another college in California is in the news because of their slip-up.

UCSD sent an email out to every student who applied with a note that said welcome to UCSD, even to those 29,000 students that received denial letters. This is a heart-wrenching slap in the face. First your child is out, now you are in, no you are really out.

Here is the link

This is the same in the Financial Aid Office and in the Admissions Office (as evidenced in the news article).

They are over-worked & under-manned.

They have Students doing Work-Study assisting in the Admissions & Financial Aid Offices.

Mistakes Do Happen, Consistently.

You must follow-up with them. You must stay on top of them.

Expect mistakes throughout the Process. AZCollegePlanning.com is here to help.

J.D. Wyczalek (why-zall-ick)