Paying for College/ College Funding

Sept. 3 Paying for College: Ginny Grimsley sent me this article.  It’s for parents who are saving for retirement, and at the same time paying for their child’s college education.  John McDonough wrote this article.  “He is the managing member at Studemont Group, which is primarily focused on helping retirees gain peace of mind with unique market rescue and recovery programs. He is also founder, president and CEO of Studemont Group College Funding Solutions”:

“Families feel they’re faced with conflicting goals, but there are numerous ways to pay for college while investing in your future retirement,” says McDonough, who offers insights for parents to keep in mind while planning for their child’s education:

• The ROI of a college education: At a time when so many American families are financially strapped, college is an especially stressful topic because parents know higher learning will help their kids succeed. College graduates earn 84 percent than those with only a high school diploma, according to Georgetown’s Center on Education and the Workforce. Here is how earning breaks down over one’s life time, based on education: a doctoral degree-holder will earn $3.3 million over a lifetime; $2.3 million is estimated for a college graduate; those with only a high school diploma can expect $1.3 million.

• Move retirement assets to qualify for grants: Most parents know about the 529 savings account, but that’s not necessarily the best or only option. Reallocating your retirement assets, such as 401(k)s, can better position a child to qualify for grants and scholarships. This legal and ethical maneuvering may be the single most important factor when considering how to pay for college.

• Know your student’s strengths and weaknesses: Consider independent and objective analysis of your future college student. Assessment might include a personality profile and a detailed search for a future career. Also think about a more nuts-and-bolts approach, including scholarship eligibility, SAT and ACT prep courses, review of admissions essays and an in-depth analysis of chances for enrollment in a student’s top four choices of colleges.

• Make a checklist of financial aid forms: In order to maximize a fair price of higher education, remember there is plenty of data to review. McDonough recommends a checklist with a timeline and notable deadlines. Be ready to troubleshoot the “alphabet soup” of data forms: FAFSA – Free Application For Federal Student Aid; CSS profile – College Scholarship Service; SAR – Student Aid Report; and more. Think about this process as a second job, or find professional help you can trust. 

http://badcb.blogspot.ca/2014/09/article-paying-for-college.html

College Funding: Ginny Grimsley sent me this article. John McDonough wrote this article too:   

The net worth of today’s 30-somethings: Adults in their 30s have 21 percent less net worth than 30-somethings 30 years ago, according to a new Urban Institute report. Why? Much of it has to do with high-interest student loans and credit card debt. The return on investment of a college education is excellent – college grads earn 84 percent more than those with only a high school diploma, according to Georgetown’s Center on Education and the Workforce. But paying off that investment without outside help is exceedingly burdensome for a graduate.

• Student loan debt is even greater than credit card debt: That’s right – topping all Americans who have made poor decisions with their credit cards are ambitious high school graduates, whose collective student load debt shoots past $1 trillion! More important than this being a crucial social epidemic, it’s potentially a very real problem for your child. President Obama scored some political points in identifying with most Americans when he said his student load debt was paid off only after he was elected to the U.S. Senate. Two-thirds of students leave college with some form of debt, according to the Federal Reserve Bank.

• Fluctuating interest rates: Recent controversy over federal Stafford loans interest rates adds to the insecurity of borrowing as a college financing strategy. Given the unpredictability of Congress, which allowed the U.S, credit rating to drop while standing on political principles, one can’t reliably predict whether interest rates will rise or fall.

• Your children cannot refinance their loans: While a borrower who has racked up tens of thousands of dollars in gambling debt can refinance their payments, student loans remain at fixed rates. In collecting money on student loans, there is no statute of limitation, and today it’s very common – the norm, actually – for student loan holders to take nearly two decades to pay off their debt. With the annual average cost of public universities exceeding $22,000 per year, and the same often surpassing $50,000 at private universities, it’s no surprise.

My opinion: Both articles are good, but it’s really for parents paying for their college education.  It’s not really relevant to me or any of my friends at the moment.  It’s also more related to the US where college is more expensive.

http://badcb.blogspot.ca/2014/09/article-college-funding.html

Working while in College: Ginny Grimsley sent me this article.  It turns out it’s not about working part-time at a job while in college, it’s about starting your own business while in college.  It’s written by Matt Stewart: 

These days, it seems as though Americans are spending more for college while getting less value in return – a trend research validates, says entrepreneur Matt Stewart.

“The average cost for an in-state public college is $22,261, and a moderate budget for a private college averaged $43,289 for the 2012–2013 academic year; for elite schools, we’re talking about three times the cost of your local state school,” says Stewart, a spokesperson for College Works Painting,
(www.collegeworks.com), which provides practical and life-changing business experience for college students who have shown potential for success. Interns operate their own house-painting business with hands-on guidance from mentors.

Making matters worse, adults in their 30s have 21 percent less net worth than 30-somethings 30 years ago, according to a new Urban Institute report.

“More students are being saddled with long-term debt while getting less value for their education,” Stewart says. “Because of the difficulty recent college grads are having finding jobs in today’s tough economy; today’s students may have even less worth in their 30s than 30-somethings today.”

To add value to their professional career, Stewart encourages students to seek outside-the-box avenues for increasing their career stock while in college. Running a business is a great way to do that; he explains why.

• Employers love ambition. A college degree is the minimum qualification employers are seeking. What hiring managers are looking for is that something extra when reviewing a stack of qualified resumes. At the heart of the economy is innovation; it’s the difference between simply existing in a market, and thriving in one. Employers know they need people with creativity and gumption for innovation.

• Real-world management of time and money. College is a time when young adults learn to live autonomously. It’s the rare student, however, who learns to manage his or her own affairs and  the most precious resources in the business world – time and money. Managing employees, driving sales, developing specific skills for a real market and building strong customer relationships are best learned with hands-on experience.

• Learn where they need help. What do you do well and where do you need help? The best way to know with any certainty is through experience. Running a business while attending college allows students to circle back to their education and focus on their trouble areas by adjusting their curriculum in future semester. 

• Develop meaningful bonds. One of the most meaningful aspects of the college experience is the relationships students develop with each other, which often have professional consequences after college. Enlisting the help of fellow students for a common business purpose tends to have a powerful bonding effect.
 
• Immediate ROI – finding phenomenal success. Most students who run a business during college will not prove to be the next Steve Jobs, Mark Zuckerburg or David Geffen, which is precisely why students should not drop out of college like those pioneers did. However, a student doesn’t have to be the next Zuckerburg to experience amazing success as an entrepreneur. College Hunks Moving Junk is just one recent example that began in an entrepreneurial student mind.   

My opinion: It’s a good article to create your own business.  However, I don’t really have an idea to create my own business.  When I was in Professional Writing full-time, I was take 4 or 5 classes a semester and didn’t have a part-time job.  I did a lot of school work.  My free-time was TV and writing my weekly emails.

http://badcb.blogspot.ca/2014/09/article-working-while-in-college.html