By: Saran Polchan There is one thing you can be sure of in life: College tuition will rise every year. Prices rise and fall all around us, but tuition never seems to go down.Using the latest U.S. Department of Education data, from the 2003 to 2013 academic years, prices for undergraduate tuition, room, and board at public institutions rose 39 percent, and prices at private nonprofit institutions rose 27 percent, after adjustment for inflation.
According to Labor Department statistics, that is nearly twice as fast as growth in medical care. Tuition prices are still growing faster than household incomes. Even more disturbing, the annual cost of attending a private college can easily exceed the annual salaries that graduates earn during their first few years of work. Here’s why costs are going up so much:
David Hodge, president of Miami University of Ohio, attempted to explain in an interview with U.S. News. He pointed out that parents and students require more from a college today: increased security, accommodations for physical and emotional disabilities, career services and modern residence halls, fitness centers and food services. Meanwhile, insurance premiums for colleges have risen due to terrorist issues and active shooter concerns.
Any slippage in the rankings is extremely costly to the institution. In the educational marketplace, the costs to maintain these rankings will be passed on to the students in increased tuition.
Perhaps eventually the bubble will burst and when families can’t pay, the demand will decrease. When families are unable or unwilling to pay, colleges will be forced to reduce their prices. If you’re a parent of a college-bound teen, rising tuition should force you and your student to evaluate the benefits of each perspective college financially and make your decision accordingly.
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By: Saran Polchan Being a student that is out of state can be tough, you’re in a new environment that you never been to before it might be scary the first time and you might experience some culture shock. But the biggest shock of all is the big tuition cost you will have to pay compared to students that are from the state.
The differences are sometimes small, but some states add on a large price tag for out-of-state students. For example, out-of-state students at the University of California will pay $24,000 more per year than their classmates who are California residents. These higher price tags scare some students away from considering state schools in other states. But, it doesn’t have to be that way. While attending a state school as an out-of-state student isn’t right for every student, if price is what’s holding you back, then consider ways that you can lower your bill if the school has everything you want. Here are some tips that will help make going to an out-of-state college more affordable: 1. Attend a state school in an “academic common market”Some states have come together to offer lower tuition rates for out-of-state students. If you live in one of the states covered by the organization, you could pay a lower price to attend the institution. There are four academic common markets available for students to consider (note: not all schools in every included state offers in-state tuition to residents of every other state, so research carefully to see if you might be eligible for lower tuition):
Unfortunately, being in the state for one year as a college student does not count. If your family does move to the home of your dream school, make sure you have a paper trail to prove your residency such as getting a driver’s license in the state, registering to vote, and paying taxes. This may seem like a drastic move, but depending on your circumstances, it could make perfect sense. And, it could dramatically lower the cost of attendance. Though in the end you might have a change of heart and decide to not even want to go to that school as you would have enough time to think over it. Most students don’t tend to stick to their first choice when time comes to factor everything in such as, location, cost, campus environment, weather, size, study of interest, etc. 3. Seek waiversSome colleges offer scholarships and tuition waivers just to persuade top-performing out-of-state students to go to their school. When the opportunity arises, go for it what do you have to lose. Other schools provide waivers or scholarships to students who live in a neighboring state or students whose parent(s) attended the institution. Check with the state colleges you are considering to see if they have any special scholarships or waivers for you as an out-of-state student. 4. Military members and their dependents can attend state schools at the in-state tuition costPreviously, only some states offered in-state tuition to military members and their families. However, in 2014, H.R. 3230 was signed into law giving military members, veterans, and their dependents in-state status at public institutions throughout the United States. The military has a lot of benefits, it’s a great way to serve your country and reap the benefits the government can help you with. It may not be a luxury but you know what they say…… 5. Talk to the financial aid officeIf you really want to go to a particular college (it’s your dream school) and you’re worried about the cost for tuition just to attend your school as an out-of-state student, try reaching out to the financial aid office, they can help you. Many times, state schools have merit or need-based aid that they can award specifically to out-of-state students. Not every student will try to apply, but it could be a great opportunity to get a big chunk of your bill taken right off the top, this will take a lot of your shoulders. Aside from costs, there are a number of other factors that go into deciding if you should attend a state school as an out-of-state student. Check out our full list of things to consider to help you make the decision. Conclusion All in all, trying to go out of state with a lower tuition takes careful time to plan and have some considerations. It’s not always easy being away from home we all know that but if it is something you really wish to do and it’s your best opinion or dream school,then go for it. Nothing is stopping you except you yourself when you have all to the resources to do so. We have listed right here things you can do to help yourself lower that cost make it easier on to a out of state school really want to go to. And if you chose not to do an out of state education, wells that’s alright as it is not for everyone. Scholarship is also something can consider obtaining no matter if you’re a in-state student or out-of-state student. By: Saran Polchan During the 2016 Presidential election, one of the biggest issues that came up time and time again was the topic of higher education affordability. In the past, President Obama has tried to make community colleges free to eligible students a possibility, although we haven’t seen too much progress from that as of yet. Bernie Sanders advocated the issue the most in his campaign to making all public colleges free, and Hillary Clinton has proposed making it affordable to those that need the help. As with any political issue, there are pros and cons to it. PRO: More Lower-Income Family Students Might Be Able to Graduate CollegeSome students drop out because they don't have the ability or resources to pay for tuition all four years. Making college tuition-free would help these kids actually to be able to graduate. This would significantly improve college’s graduation rates around America, as students wouldn't feel the need to change to part-time status or be restricted from their education just because they are struggling for financial reasons. CON: Someone Will Need to Pay That MoneyIf America were to move to a tuition-free college policy, who is going to pay for it? The answer is taxes. Whose taxes are being increased seems to vary based on the situation, but it seems Bernie Sanders is pushing for the upper class in America are the target here. It's also a good possibility that it will affect the upper middle-class as well. Best case scenario is that it will be taxed mostly from Wall Street. The point is, someone has to pay for these fees to enable free college tuition in public institution. The uncertainty of who will do it scares the general public for the idea of free college tuition. PRO: Student Debt Won't Be a Concerning Problem That Millennials Have to Struggle WithIf a regular American college student can graduate with less than $10,000 in student loan debt, they are considered lucky. However, students from other countries that have tuition-free college have that luxury; most of their loans come from living expenses and books. Without the weight of student loan debt, more college graduates might buy houses rather than renting apartments. They might buy cars, spend more on healthy food, travel more: In essence, they could contribute more to the economy. CON: Younger Generations Won’t Know How to Handle FinancesCollege is full of learning experiences, one of which is learning how to work with a budget. College loans are often the first major financial dealing that people work with. Paying them off promptly proves you know how to budget your money, skills people use again and again when buying cars or houses. Without having to pay for school, that experience won’t exist, which might be trouble down the road for buying that house or car. Something that debt and financial trouble can teach you is the struggle and learn from your mistakes. PRO: Students Might Have More Freedom to Choose a Major They EnjoyWhether it is the influence of parents or knowing you need to pay loans back as quickly as possible, current students are often guided toward “practical” majors that have a more lucrative post-graduation income. If shelling out thousands upon thousands of dollars is no longer a factor, parents and students might feel more relaxed about studying for majors that don’t necessarily have a large paycheck associated with them. Interest and enjoyment from a field of study goes a long way in helping students stick with it and avoid burning out. This will allow more dreamers in our society be able to do what they want to pursue in life and make their own path without too much stress on their shoulder. CON: College Might Not Seem As ImportantIf higher education at public schools becomes free, it might appear to devalue a college diploma. It might also lead to students cutting more classes or not trying because they don’t have to “get their money’s worth” when they aren’t paying for anything. The current price of college drives students to complete their schooling as quickly as possible so as to reduce debt. Without that financial drive, we might see more laziness and lackadaisical behavior from our students. Top schools use their name and fame to raise the price of tuition which drive the demand and competition to get into the school. PRO: More People Would Go to CollegeBy negating the large bill of a college education, we could see an increase in the amount of students able to attend college. This then creates a more well-educated workforce and a population that has better critical thinking skills. This could lead to more innovation in all areas of society. CON: More People Would Have the Opportunity to Go to CollegeAs enrollment at public schools increases, so do the fees. Either more money would have to be given to the schools, or they would have to create waitlists. This means that the taxes for education-related purposes might go up, or funding for something else (such as military expenditures) might be diverted to pay the influx of fees. In addition to this, the large amount of graduates might oversaturate some areas of the workforce, leaving even more people with degrees working jobs that they are overqualified for. One Last Thought: What About Private Institutions? If all public colleges and universities are made tuition free, we could see the decline of private schools. Since these schools rely on tuition, endowments, and alumni donations for a good portion of their funding, competing with free public schools could force many private schools to close. This would reduce the amounts of job opportunities for professors and could result in the death of many fantastic programs. As of right now, the only state to have free public college tuition is New York which is a great step forward, but in other states, tuition is still very much a reality many college-seekers have to face. By: Saran Polchan According to a recent CNBC article, 24% of millennials expect to receive forgiveness for their outstanding student loan debt balances. It’s a good thing, then, that the Consumer Financial Protection Bureau estimates that 25 percent of American workers could be eligible for student loan repayment forgiveness programs.
Here’s more good news: there are many ways of taking action to get a student loan forgiven. You can seek out programs that are career-based, meaning they provide aid for those in certain professions. Or you can look into plans based on your income level. Most of these are sponsored by the Federal government in one way or another (though some colleges do assist a select few of the students they graduate). Those suffering the burden of student loans may qualify for one (or more) of the nine types of forgiveness programs listed below. Public Service Student Loan ForgivenessThere are many programs available to help mitigate Federal student loan burdens — especially if you’re working in a public service position. Specifically, employees of the government, non-profit organizations, and other public workers may qualify for the Public Service Loan Forgiveness (PSLF) program. You need to be employed full-time by a public service organization. You also are required to make 120 payments on your loans before being eligible for forgiveness. Note that as long as you’re employed by an eligible public service organization, you’re covered. In other words, you probably qualify as a teacher — and you may also qualify if you work in a public school as an administrative staff member. Getting a Loan Forgiven Based on IncomeAnother way to get Federal student loans forgiven is to see if you qualify for an income-based program. According to Sophia Bera, CFP and founder of Gen Y Planning, there are three income-driven programs:
They’re also a little different from the public service programs. While those in public service positions can have student loan debt forgiven after 10 years, these programs forgive loans after 20 or 25 years. However, like the public service loan forgiveness program, these income-driven programs do require you to pay every payment on time – or you’ll be disqualified from the program. You also may need to pay taxes on the portion of your loans that are forgiven. Student Loan Forgiveness Programs for ProfessionalsMany student loan forgiveness programs are based on the career you choose after graduation. For those with professional degrees – think doctors, lawyers, and teachers – you have several options when it comes to shedding that student loan debt without paying it out-of-pocket and in full. Doctors can look into the NIH Loan Repayment Program. This can help repay 25% of a doctor’s student loan balance per year with a $35,000 maximum. That’s limited to doctors conducting research and who meet certain eligibility requirements. Lawyers can look into Equal Justice Works. This provides a list of law schools that offer loan repayment assistance programs. Afam Onyema graduated from Harvard University and Stanford Law School, and was able to decline corporate law job offers in order to establish a charitable organization thanks to repayment programs. “I can afford to do this work only because of Stanford Law School’s uniquely generous Loan Repayment Assistance Program (LRAP),” explains Onyema. “The school is systematically paying off and forgiving 85% of my $150,000+ debt.” Teachers can qualify for PSFL programs, they might also want to look into Teacher Loan Forgiveness. To get into this program, you need to teach at specifically designated elementary and secondary schools for five consecutive years to be eligible. If you began teaching after 2004, you’re eligible for up to $5,000 in loan forgiveness if you were a “highly qualified” teacher, and you can receive up to $17,500 if you’re a “highly qualified” math or science teacher in a secondary school, or special education teacher. |
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