Our family qualifies for zero financial aid, despite my making a vwey modest salary and having to spend half of it on the family’s extra medical bills (not covered by insurance). What kills us is that we are not in debt…go figure…

As a result, not only are we spending retirement savings on private college tuition for the kids (at a time when I could be laid off at any minute, and when my spouse has been out of work for years), but there are virtually no jobs available on campus for them to help pay for it because they are all earmarked for students on financial aid.

By contrast, my daughter’s roommate in college last year, daughter of African immigrants, gets aid, received summer school coaching and pre-teaching at the college (not open to students like my daughter) before her freshman year (along with a bunch of other entering freshman from disadvantaged backgrounds) to help her manage the difficult course curriculum at their Ivy. Not only was it easier for her to get into the school, but it will be less burdensome for her parents to keep her there. She’s a perfectly affable kid, but not in the same league academically as mine. Of course, I am probably just an overly doting mama and a tad envious!

What upsets me is that either my spouse and I will face an impoverished old age to keep the kid in school (I try to have faith that I will be able to work until I am 90 as I love my kids and education is our highest priority) or the kids will have to take on so much debt that they will have to choose their future professions based chiefly on making enough money to pay off huge loans. Given the insecure job market, nobody has any security these days, but nobody in my family is mercenary and I don’t want them becoming so.

By contrast, my English nieces whined about the expense of college in the UK (a few thousand a year), but graduated virtually debt free. One is now a pediatrician, the other a barrister, and they make little money but are very useful and love their work, and do not have to worry about paying back hundreds of thousands of dollars for their education. If they have children after they marry, they will be able to afford to stay home and raise them properly for the early years, as they will not have huge student loan payments to meet. They, like my kids, were stellar students and also creative and altruistic,

In the old days, all of them would have received merit scholarships (as the British ones did).

One of my kids has actually got a merit scholarship, but it only covers less than a third of the cost of her college.

You may ask why not send them to state schools? Well, both are quiet, somewhat introverted and deterred by the gigantic anomic state school they got into (one with a free ride). With less challenging course, less interesting peers, and a much more oppressively heavy drinking social culture.

What bothers me is the social engineering that now seems to drive the attitude towards who should pay tuition and how much. Interesting that recent immigrants get more money than children whose ancestors fought in the Revolutionary and Civil Wars and others since. That wouldn’t bother me if the process were based on relative academic merit. If it were purely meritocratic, most of the scholarships these days would likely go to Asian students anyway, and perhaps my kids would get them also. But certainly that would not be as unfair as a good student getting nothing, and a less good student getting a generous aid package because of ethnic status.

I don’t want to sound whiney. My spouse and I had three children despite being in difficult career and financial straits, because we love children. We have scrimped and saved for years to be able to send them to good schools. This is not (hopefully) a “Poor me” howl.

But I am staggered by the burden of debt that many middle class kids are going to graduate with at a time when many cannot even find jobs and end up living at home, doing partttime supermarket checker work. And by the insanity of colleges recommending to parents that the parents take out mortgages on their homes to pay for kids’ colleges. At a time when anyone over 40 who gets laid off (as any of us are vulnerable to being these days) will likely never work again, this seems like a recipe for future homelessness.

For the record, I received generous scholarship and loan aid that made it possible for me to stay at my college after my dad was laid off (got a life threatening illness requiring surgery and he recovered completely, but his company felt he would not project the right image after that). No one in my college’s FInancial Aid office would have considered asking an unemployed middle aged man to refinance his house to pay college tuition. Even back then, they knew that over 40 you are dead meat, unless already employed. And I received the highest award in my entering class in grad school (meritocratic), without which I could never have entered a low paying but useful profession like the ministry.

source: http://artemisretriever.blogspot.com/2009/11/why-you-are-about-to-go-broke-paying.html

Online distance education rule 1. Check to ensure the college is accredited by a legitimate accrediting agency. Accreditation means the college and its programs meet certain set educational quality and standards. This also means courses and credits acquired can be easily transferred to another accredited institution, whether online or brick and mortar college. You will stand a better chance of securing employment or promotion at work if you have an accredited degree.

Online distance education rule 2. Be on the look-out for unaccredited online distance education colleges otherwise known as “degree mills”. There are many fake institutions granting “accreditation” to any organization willing to pay some money for it. Before you pick your college, make sure you research that it is accredited by a legit body. If you are not sure the college you wish to attend has a legitimate accreditation, consult with the United States Department of Education or CHEA to confirm.

Online distance education rule 3. Does the college and degree program you wish to pursue fit with your long-term goals and career? if you are thinking let’s say, enrolling in an online associate degree program and later hope to earn a bachelors degree (online or campus), find out how likely it is that your associate degree coursework will transfer by looking for a list of colleges which have accept transfer credits.

Online distance education rule 4. Class size is as important in online education as it is in a traditional college classroom. Do your research on the average class sizes at the online distance education institution you are considering. Small classes make it easier to interact and voice your opinion.

Online distance education rule 5. It good to know more about the instructors of the programs you are interested in. Are they qualified to teach that class? Do they have experience in their field or specialization? Have they taught online classes before? How long have they been teaching? Get the answers to these questions. It is more reassuring if more instructors hold degrees from the college that you’re planning to enroll.

Online distance education rule 6. Are the administrators, technical staff and faculty responsive if you need help or have questions with your courses? Since every college offers a different form and level of support, make sure you find one that is aligned with your needs and expectations. This will alleviate frustration when you need help during your classes.

Online distance education rule 7. One of the great things about online distance education programs is that you can begin almost anytime. Thus you shouldn’t let anyone rush you into starting your program until you feel ready to put the time and effort it will require for you to succeed.

Online distance education rule 8. Check out if your program will be offered entirely online or if it will require residency at some point in the course. Some online courses have site projects and require residency so let this not come as a surprise to you.

Online distance education rule 9. Most online colleges offer financial aid and tuition assistance. You’ll be pleased to discover how much financial help you have available inform of loans, scholarships, financial aid and other federal loans. Some institutions even have tuition payment plans and employer-reimbursement programs. Find out if your college of interest offers such programs.

Online distance education rule 10. Don’t settle for less than quality programs and education when selecting your online distance education program. Unlike there before, when online degree options were severely limited, it is now possible for those willing to spend some time gathering information to find almost exactly the degree program that meets their needs.

source: http://www.discussmeditation.com/ready-for-online-distance-education-read-these-10-rules-first/3054/

The first report was produced by Education Sector, entitled Drowning in Debt: The Emerging Student Loan Crisis.

Students are taking on more of the riskiest debt: unregulated private student loans. Here, students have the least protection and pay the highest rates. For-profit colleges are leading the way in this trend, and minority college students appear to be borrowing a disproportionate share. If this continues, the consequences will be severe: reduced access to higher education, diminished life choices, and increasing rates of catastrophic loan default.

There are many culprits to this emerging student loan crisis: out-of-control tuition increases, lack of commitment to need-based financial aid, and states and universities increasingly spending scarce financial aid dollars on wealthy students. President Obama recently proposed reforming the federal student loan program by having all students borrow directly from the government. The money saved from this change would go to making Pell grants, which are targeted to the neediest students, an entitlement. The new plan would also tie annual increases in Pell grants to inflation. This is a good start to solving the problem of rapidly growing student debt, but much more needs to be done—from reforming state and institutional aid policies to creating better incentives for colleges to restrain prices.

Inside Higher Ed has a write-up of the report, where they quote Patricia Steele from the College Board:

Patricia Steele, a research associate at the College Board, said that “nowhere in the report” do the authors point out that half of all students don’t borrow for college at all, and that that and other oversights contribute to the report’s overall “sense of hype.”

“It’s important to point out because it scares the hell out of low-income students, who are nervous enough about whether they can afford college,” Steele said. “They might read about this and think everybody’s out there borrowing $35,000, and that’s just not true…. This does not represent the core of what’s happening in student debt.”

Steele’s line of argument just pisses me off. If the unemployment rate was at 50%, would we say that concern about it is overblown because half the country has jobs? What about health insurance? Just because 50% of college students are fortunate enough to not need to take out loans (most because of family wealth) it does not mean that the other 50% are not worth being concerned about. Not to mention that the 50% figure does not include those potential students that chose not to attend college in the first place because of the price tag.

I am not impressed by her concern trolling, either. Low-income students are nervous about whether they can afford college because it is expensive, not because people are reporting on the problem. Steele’s solution is to just not talk about the student debt burden because it is an unpleasant and scary reality. The real solution is to lower the cost of higher education.

The New America Foundation released their new report today on the student loan industry infrastructure. Rethinking the Middleman: Federal Student Loan Guaranty Agencies goes into the history of these guaranty agencies and explain why the dated system is hurting both taxpayers and students. The report is definitely worth a read, but here are some of the recommendations:

Eliminate the Guaranty Agency Insurance Role
Prohibit Guaranty Agency and Lender Partnerships
Eliminate Guaranty Agencies’ FFEL Program Oversight Role
Balance Incentives for Borrower Assistance versus Loan Collection
Improve the Default Aversion Role
Make the U.S. Department of Education the Lender of Last Resort
Demand Accountability and Results for Other Activities
If you are unsure what some of these recommendations mean, their blog post about the report does an excellent job explaining them.

It is clear that there is a problem with our student lending system, and these reports do an excellent job of showing why and what must be done. Changes need to be made if we are going to preserve the opportunity of higher education.

source: http://futuremajority.com/node/8132

If you are running out of cash to pay for your school expenses like books, tuition fees, dorm fees and some other miscellaneous fees you can always get a loan. Student financial aid direct loans are a program offered by the Education Department to students who needed help to get through college. It is a simple and inexpensive way of lending money to students to pay for their students after high school. If your school recognizes this kind of student loan, then you will need to complete what so called a master promissory note to qualify for this loan. The master promissory note would explain the loan terms and would serve as the legal binding agreement that you need to repay the Department. One god thing about this type of student loan is that you may switch your plan when your needs change. Getting through college had been made easy for you, and you do have four repayment plans to choose from: the standard, graduated, income contingent and extended. These four options would help you decide which plan is suited for you. The standard plan allows you to pay a fixed amount monthly until you have paid your loan in full. You can pay as low as fifty dollars a month and you will have until ten years to repay your loan. The Standard plan would be good for the borrower if he can manage to have a higher monthly payment because that would mean you can repay your loan quicker. Another payment mode is the graduated repayment. This plan allows you to start at a low monthly payment, but it would increase every two years. You can repay for your loan up to ten years. This plan would be good for you when you expect an increase in your income over time. The income contingent repayment is a very flexible plan that helps you get through undue financial hardship. This is how your monthly payments will be calculated yearly: the monthly payment will be calculated based on your adjusted gross income (ad that includes your spouse’s income if you are married), the size of the family and the total amount of your loan. Under income contingent repayment program, you will pay monthly the lesser of the amount you would pay if you managed to repay the loan in twelve years multiplied by an income percentage factor that may differ from your annual income or your monthly discretionary income which will be multiplied by twenty percent. The monthly discretionary income is equal your adjusted gross income less the poverty level of the family size divided by twelve which is then figured out by the Health and Human Resources Department. The maximum repayment time for this is twenty-five years. if you are enrolled under the standard or extended plan and decided to switch to ICR later, the period under the former plan is counted towards your twenty-five year repayment period. If, after twenty-five years and you still haven’t fully paid your loan under this plan the unpaid portion will be discharged. However, you need to pay taxes for the discharged amount.

source: http://www.trafficlegaladvice.info/student-financial-aid-direct-loans-made-easy/

With higher education costs increasing at double digit percentages an effective college savings plan for your kid’s education is becoming much more critical. Most parents will find that their kid’s future college costs will be much more than they have planned. This leaves many kids to be faced with obtaining financial aid to compensate for a portion of their higher education costs. This article will explore the pros and cons of 4 common college savings options. This article will also seek to show which of these 4 options are a better option if part of your kid’s higher education costs are to be funded by financial aid.

——————————————————————

529 College Savings Plan: Since January 2002, 529 college savings plan have become a new option for achieving tax free college savings. These plans are state sponsored investment programs that offer special tax treatment. It allows just about everyone to save for their kid’s college education. While there are many benefits of a 529 college savings plan, perhaps the most important is that your investment eaings are tax deferred if you use the funds for qualified education expenses. Additionally, another big advantage is that the maximum amount you can contribute to a 529 savings plan can go as high as hundreds of thousand dollars but be aware these are based on your States specific guidelines. If for some reason you do not use the investment funds for college, you can still withdrawal your investment eaings, but you will have to pay a federal penalty of 10% and federal income taxes on your eaings. The penalty can be waived if your child receives a college scholarship, or in the event your child becomes disable or dies.

——————————————————————

A 529 plan can typically be easily purchased through an investment broker or mutual fund company like Vanguard or Fidelity. Please be aware that one of the biggest disadvantages of a 529 plan is that investment options can sometimes be limited. However, as 529 plans become more popular it is likely that more plan options will open. For instance, the State of Ohio just announced the option for bank CDs and saving accounts for 529 plans. One last main advantage of a 529 college savings plan is that the money in the plan is classified as a parents assets so less that 6% of the value counts against your kid’s eligibility for financial aid.

——————————————————————

Coverdell Education Savings Account (CESA) (formerly known as an Educational IRA): A Coverdell Education Savings Account is a savings account created as an incentive to help parents and students save for higher education expenses. A Coverdell Education Savings Account is easy to set up at most financial institutions and banks. A Coverdell Education Savings Account is similar to a 529 college savings plan, but different in the contribution limits. With a Coverdell Education Savings Account you can only contribute $2000 per child per year and to qualify your adjusted gross income must be less than $110,000 if you are single and less than $220,000 if you are married filing jointly. For financial aid eligibility a Coverdell Education Savings Account is classified as a parent’s asset so less that 6% of the value counts against your kid’s financial aid eligibility.

——————————————————————

UGMA/UTA Custodial Account (Uniform Gifts to Minors Act/Uniform Transfers to Minors Act): A UGMA/UTMA account allows someone to make gifts to a minor without setting up a trust. While there are benefits to a UGMA/UTMA account the first limitation is that these types of accounts offer very little federal tax advantage. Secondly if your child is 14 or under only the first $800 of income is tax free, the next $800 is taxed at your child’s tax rate and after that there is no tax benefit at all. The other big disadvantage is that an UGMA/UTA Custodial Account has to be set up in your child’s name. This can create a big problem if your child needs financial aid since all of the assets will be reviewed at a 35% rate. As a result, a UGMA/UTA Custodial Account is not advisable for those who may need to qualify for financial aid eligibility. The main advantage of a UGMA/UTA Custodial Account is that there is no limit on the investment contribution and it is very easy to set up at most major financial institutions including some insurance companies. However, as can be seen above the disadvantages of a UGMA/UTA Custodial Account far outweigh the benefits.

——————————————————————

Taxable Investment Accounts: Taxable investment accounts can be a broker account, a mutual fund, a certificate of deposit or just a regular savings account. Essentially it is just a regular account that eas taxable interest, or investment income. A benefit of a taxable investment account if set up in the parents name is that the assets are classified as a parent’s asset so they do not count as a negative in the financial aid formula. Additionally, taxable investment accounts offer lots of flexibility, and are easy to set up at any financial institution. However, the big limitation to taxable accounts in saving for college is that they offer no tax advantage for college savings.

——————————————————————

In summary, a solid savings plan for college is a very important undertaking for parents to consider. The above 4 education investment options can be highly useful in the college planning process. Furthermore since some of these investments offer substantial federal tax advantages and do not count against financial aid eligibility they can maximize parent’s investment resources.

——————————————————————

source: http://simplycreditmortgage.blogspot.com/2009/07/your-child-s-college-education-savings.html

Improve your career choices with an online education degree

The current economy has caused serious problems within the job market, the real estate market and life in general. Many people have either already lost their jobs or are concerned with losing their jobs in the near future. An option that is becoming available and attractive to many people to protect their household income is seeking an online education degree. With the many online education degree programs now being offered, it’s easier than ever to earn a degree, either fulltime or in your spare time. If you’ve been considered furthering your education to better prepare yourself for the job market, check out 5 benefits to earning an online degree in this shaky economy.

1. Potential for higher income – With the downturned economy, many companies are downsizing, usually keeping the employees that can contribute the most. By earning an online education degree in your chosen field, you’re not only improving your job security, but also increasing your chances of a promotion and higher income. Higher education equates to a higher salary.

2. Increased job skills – Even if a promotion is not your goal, by earning a degree from one of the many online education degree programs, you’re making yourself a more valuable asset to your current company. If there’s a lay-off in one department, your advanced job skills may guarantee you’ll be kept on, or transferred to another department.

3. Change of Professions – With the downturned economy, certain job sectors are affected by downsizing or lay-offs more than others. By advancing your level of education, you’re improving your ability to change professions if the need arises. There are some professions that seldom are affected by the economy such as health care, security, education and law enforcement. All of these are available through online education degree programs, so you can earn a degree while you’re still employed.

4. More accessibility – Online education programs allow you to get an education even if you’re not living near a college or if your chosen degree program is not offered in a school that is near you. With an online education degree, you can access your school from almost anywhere or any time around the world as long as you have access to a computer. This gives you the opportunity to participate in your coursework and continue with your work schedule.

5. Specialized Instructions – With online education degree programs, you can truly learn at your own pace. You’ll have the option to read the material yourself, or access video and audio instructions and course material via a virtual blackboard and classroom. Because everyone learns in different ways, you’ll love the freedom to learn in a way that works best for you. With emails, instant messages and message boards now available, you’ll be able to get help and communicate with your instructor almost any time you need help or assistance.

source: http://ezinearticles.com/?Top-5-Benefits-to-Earning-an-Online-Degree-in-a-Downturned-Economy&id=2496257

If you want to improve your healthcare & medical skills being in profession of medicine, then pursuing masters in healthcare is a great idea. With different specialized degrees you can get promotions and raises in at your current job. When you choose masters in healthcare you get many benefits like learning traditional programs, on campus training, enhanced skills and greater exposure. If you are busy with your present job and have no time for full time course, you can pursue your masters in healthcare, online as it provides freedom to learn at your convenient time.

You will find Internet flooded with number of different online degree programs. Masters in healthcare is one of the best degrees that you can count upon on to give your career boost and help you grow, tremendously. The healthcare industry has been expanding since a long time and several vacancies are introduced every month to accommodate new nurses, doctors, psychiatrist, physicians, etc. When you choose masters in healthcare not only you are able to settle in your current career but you can also open so many other career opportunities for yourself in the same field. As you keep on gaining experience and skills you can very easily promote yourself from one position to another. With your masters degree in healthcare there is no looking back and you can easily make a best career in it.

Before you can establish your career in healthcare, it is important that the college from which you decide to purse your masters in healthcare is should be a reputed college. If you choose a college that is unknown to you and has been just working from last few years then you may not be able to get a good job. It is true that you may have to pay high fees when you take admission in recognize and reputed colleges but when you apply for jobs in the healthcare industry your college and your practice are the criteria that a recruiter take into consideration.

source: http://ezinearticles.com/?How-to-Choose-a-Masters-in-Healthcare-Online?&id=2446971