HEAD4COLLEGE-NE

Obama's Plan To Reduce Student Loan Debt Burden

2011-10-26T18:50:00.000-05:00

President Obama announced plans to assist students reduce their loan debt. Basically he is moving up the timeline for enacting the revised Income Based Repayment option for Federal Direct Student Loans. This plan reduces loan payment from 15% to 10% of discretionary income.

The plan also includes a special interest discount for consolidating the former Federal Family Education Loans with Federal Direct Loans. The discount is for to .5% and for a limited time.

It was also announced that the Department of Education has teamed up with the Consumer Financial Protection Bureau to launch a new “Know Before You Owe” project.This initiative is aimed at creating a model financial aid disclosure form. Colleges and universities could use to help students better understand the type and amount of aid they qualify for and easily compare aid packages offered by different institutions.

To read more about the plan, click on the link above for the press release at http://www.whitehouse.gov/.

Beware the Net Price Calculators!

2011-10-26T13:21:00.000-05:00

You may have come across Net Price Calculators (NPCs) on college websites over the past year. Federal regulations require every college to have one on their website by the end of this month. The intent of the calculators is to provide consumers with estimates of net price information for prospective and current students. A laudable goal. However, there are issues that consumers need to be aware of.

Issue: The US Department of Education has developed a template for colleges to use which meet the minimum requirements the federal regulations. Colleges and universities are not required to use the federal template. Institutions may develop their own or use one developed by a third party vendor, as long as the NPCs meet the basic federal requirements. However, the US Dept. of Ed, does not have an approval process for these types of NPCs.

Issue: The NPCs are required to provide the median amounts of grant and scholarship aid awarded to, and accepted by, first-time, full-time degree/certificate-seeking students by EFC range. It s not uncommon for colleges and universities to have different awarding policies for freshmen and upperclassmen, so trying to estimate more than one year of financial aid costs would be difficult.

Issue: NPCs only estimate need based financial aid awards. It is more difficult to get realistic estimate of financial aid award for colleges that offer merit aid and performance scholarships.

Each of these issues make comparing estimated costs and estimated financial aid from multiple colleges challenging. It is important to keep in mind that NPCs are tools that have limitations, but can be used as part of the college planning process. NPCs do not replace researching colleges, meeting with admissions counselors and visiting colleges.

Bryant University Annnounces New Test Optional Policy Effective for Applicants for Fall 2012

2011-07-02T14:48:00.000-05:00

Bryant University in Smithfield, RI recently announced it will no longer require the SAT or the ACT as part of its admissions process. The Test Optional policy will be in effect for new and transfer students seeking admission for fall 2012. In place of these tests, applicants will be required to answer 2-3 short questions. Transfer student who have earned more than 10 credits will not have to answer the additional questions.

The university explained that this is a four year pilot program and while students can opt not to submit their SAT or ACT scores as part of the admissions process, students will be required to submit them once they have been accepted. The scores will be used to assess the success and future of the pilot program.

For details go to Bryant University's Test Optional Policy.

Help Available for College Students and Borrowers Affected by Natural Disaster

2011-06-09T21:17:00.000-05:00

In recent months the country has been battered with floods along the Mississippi,fires in Arizona, and tornadoes from Missouri to North Carolina and to Massachusetts, making this “The Spring of the Natural Disaster”. As communities begin to recover and return to normalcy, so too will students and colleges. For college students and those repaying federal student loans from those affected areas, there are steps that can help them get back on track.

The Higher Education Act of 1965, provides college financial aid administrators with the ability to use Professional Judgement, commonly referred to as PJ, or Special Conditions Review, to use updated and new information to revise a student’s eligibility for federal financial aid. Typically, PJ is used when there is a loss of employment, divorce, death of a parent/spouse or other unusual circumstance. The financial aid administrator will require documentation relating to the event or reason for the request, such as documentation of unemployment or a divorce decree.

The Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988 (Stafford Act), provides additional regulatory relief to students and parents who receive federal financial aid, expands financial aid administrators’ PJ authority and provides additional guidance to institutions, lenders, guarantee agencies and loan servicers, that are located in or whose students/ borrowers are located in a federally declared natural disaster area. Here are some of the segments of the Stafford Act that relate specifically to college students and federal student loan borrowers.

Any college financial aid applicant from a region hit by a declared natural disaster can request a PJ review. The college financial aid administrator will require documentation related to the disaster and the impact on the student and his or her family. Such documentation may include unemployment compensation and the official declaration of the natural disaster status. See the chart below for further examples of documentation. As a victim of a declared national disaster, any state or federal aid received as a result of the disaster is not counted as income on the Free Application for Federal Student Aid (FAFSA). This would also apply to returning students.

For any student awarded financial aid and enrolled in college at the time of a natural disaster, in addition to being eligible for PJ and the special treatment of certain income, there are other aspects of the Stafford Act that will be of assistance. If a student does not meet the college’s Satisfactory Academic Progress standards, due to the disaster, the college may waive the requirement. However, the college must document the reason for the waiver. A college’s Leave of Absence policy can be waived as well for a student in this type of situation. Requests for a leave of absence may be made without the required written request and after the absence starts, if related to a declared natural disaster. Again, the college must document the circumstances for the waiver of this requirement.

The US Department of Education selects FAFSA applications for a process called Verification. The college will not be mandated to perform verification of student financial aid applications if verification records are damaged or lost due to a declared natural disaster. Also, any student who had a federal workstudy position at the time of a declared natural disaster and is unable to continue performing that job may be eligible to still receive workstudy payments. Students in this situation should contact the financial aid office for clarification of their eligibility to continue receiving workstudy payment.

General federal financial aid regulations provide borrowers with assistance when they are having difficulty making student loan payments. Deferment allows borrowers a temporary suspension payment for a specific situation including economic hardship. During a Deferment period interest payments are not required for subsidized Federal or Direct Student or Perkins loan. Interest payments are required for other Federal and Direct Student loans.

Federal regulations also offer borrowers the option of Forbearance, is temporary suspension of loan principle payments for a specific time. Borrowers are required to make interest payments during Forbearance.

Both student and parent loan borrowers of federal student loans and PLUS loans are also provided some additional protections under the Stafford Act when having difficulty making payments due to a natural disaster. These borrowers may request an Administrative Forbearance based on their status as a victim of a declared natural disaster. In the case of Unsubsidized Stafford, Unsubsidized Direct Stafford or PLUS loans, interests payments may be required. A borrower who has been affected by a disaster and whose federal student loans are in “Collection “ at the time of the disaster may request that the collection activity be suspended for up to three months. The request may also come from a member of the borrower’s family or another reliable source that the student was affected by a disaster. Also, a missed payment will not be held against a borrower in default who has a loan in “Rehabilitation” or a repayment arrangement while they are still affected by the event.

Listed below are examples of the documents that may be requested by the financial aid office, student loan guarantee agency or student loan servicer.

Professional Judgment Required Documentation List

Documentation of Loss of Earned Income
*Documentation of the date & reason for loss of income
* Documentation of unemployment compensation
* Last pay stub
* Employer’s written notice of termination
* Documentation of all sources of income

Documentation of Medical expenses or Disability
*Documentation of medical expenses
*Attending physician's statement of disability
*Documentation of Worker’s Compensation

Documentation of Natural Disaster Status
*Documentation of Official Declaration of Natural Disaster status

Other Documentation
*Letter of explanation regarding your situation

It is always advisable for a college financial aid recipient to contact the financial aid office, when any change in the student’s family situation occurs or a natural disaster is declared, to ensure the Aid Office is aware of the situation and to receive guidance on the steps needed to be taken by the student or parent. If a borrower has any private student loans, it is important to also contact the lender or loan servicer directly to determine what assistance may be available.

Resources For Students and Borrowers
www.federalstudentaid.gov
www.dl.ed.gov

NACAC's Annual Space Availability Survey for 2011 is Out

2011-05-15T17:38:00.000-05:00

Haven't applied to college for fall yet? Thinking you missed out and will have to wait until January or September of 2012? You may be in luck. Each May the National Association of College Admissions Counseling publishes its annual Space Availability Survey. The survey provides information on the colleges and universities that are still accepting applications for admissions for the fall semester for incoming freshmen and transfer students. College information is updated throughout the summer. What is nice about the survey is that it also provides information on the availability of on campus housing and financial aid.

So check it out and see if the colleges you are interested are still accepting applications. Good luck with your college search!!

My Chat with Edward Manzi, Jr CEO of Fidelity Bank

2011-05-15T17:21:00.000-05:00

Earlier this spring I was asked to guest on Fidelity Bank's show, Life Design & You, to discuss the college planning and financial aid process. Edward F. Manzi, Jr, chairman and CEO of Fidelity Bank hosts the show. Fidelity's show is seen on Charter TV Channel 3 in Worcester. This was my television debut and a fun experience!!

Here is the link to the YouTube videos.

Part 1: http://www.youtube.com/watch?v=c2O8nos3Pks

Part 2: http://www.youtube.com/watch?v=rXvXFXKQLvI&feature=related

Enjoy!

Wait Lists: A Good Idea?

2011-04-03T20:43:00.000-05:00

Earlier this weekend I receive an email from a client with questions about the wait list option as part of the college admisions process. Agreeing to be placed on a college's wait list can be a good idea, if that college is the student's first choice. Here are questions to ask the college as you consider the wait list:

1. How many students are on the wait list?
2. Where are you on that list?
3. Were students on the wait list offered admission in the last two years? How many in each year were offered admissions?

It is important to know that you are not obligated to accept an admissions offer from a college that places you on the wait list. Typically, colleges go to the wait list after May 1st, the day students need to tell colleges, if they have accepted a college's admissions offer. So most students on the waitlist have already accepted an admissions offer from their second choice college. Schools pull students off the wait list throughout the summer, even as late as August is some cases. Here are some things to keep in mind:

1. You lose the non-refundable deposit at the college you have accepted an offer from in May. Deposits are typical $500.

2. You need to see what the financial aid award from the wait list school will be. It may not be as desirable. The bulk of the funds will have already be awarded. However, there may be funds as a result of students turning down the first run of admissions acceptances.

3. If the offer comes in late July or early August that could be cutting it close for getting a choice student housing assignment.

4. You could be rushing to get placement testing scheduled and registering for classes.

5. Available class offerings may not be the desired courses/days/times. (For example: student may be stuck with early morning or late afternoon classes or classes on Friday afternoon.)

If you do accept admissions from a college that waitlisted you, know that you will have more choices available to you when you register for spring semester.

The wait list can help you get in to your top choice college. Just make sure you ask questions to reduce the stress and prevent any unexpected issues.

Take An Inside Look At The Admissions Decisions

2011-03-30T15:50:00.001-05:00

NPR's Morning Edition did a segment earlier this week titled, Behind The Scenes: How Do You Get In To Amherst? It brings the listener into the Admissions Committee's meeting as they review the final round of applications for the incoming fall class. For those outside of the college admissions world it is an eye -opener. Not all colleges have an Admissions Committee. Many have a single admissions officer review a caseload of applications, consulting with colleagues within the Admissions Office on some individual applications. At all colleges there are similar concerns when reviewing applications: level of difficulty of high school courses and grades,personal essay or personal statement, GPA, SAT/ACT test scores, honors & awards, and recommendations. The student's extracurricular activity is also examined: leadership roles, commitment- level, and time management skills. It is also possible the the college may be looking for a specific skill or talent, whether it is an oboe player or possible member of the debate team. To listen to the report or read the transcript click on the link. (I suggest you listen to it.)

Beyond Tuition, Room & Board and Textbooks

2011-01-21T19:14:00.001-05:00

A September post on Smartmoney.com outlines 8 college fees that most students and parents have not considered or expected. When applying for college checkout the colleges' websites and review not only the tuition and room/board charges, but make sure you check out all college fees. I recommend that you print out a copy of all fees from each college's website for your file on each college. You should determine which fees are required for all students and which are not. This will help you more realistically compare the cost of the colleges you are considering, when you review the college award letters.

Typically fees such as healthcare, parking, technology, and student activity fees are required of all students. Only students involved in the following activities or groups are billed for such things as sports, study abroad, freshman orientation and graduation fees. Some fees you can not avoid by not participating in the events. Be advised that all freshmen will be charged a freshman orientation fee, regardless of whether the student participates. The same is true for graduating students, who are charged the graduation fee, even if they do not attend their graduation.. Check out the full list at http://www.smartmoney.com/personal-finance/college-planning/8-college-fees-you-probably-didnt-plan-for/?cid=yahoo

9 Common Mistakes Made When Completing the FAFSA

2011-01-09T01:09:00.002-05:00

Students and parents are beginning to tackle the FAFSA (Free Application for Federal Student Aid) for the 2011-2012 academic year. There are common mistakes that people make when completing the form that are easy to avoid, which will only prolong the process and potentially cause applicants to loss financial aid funds. I'm sharing a list of some of the most frequent mistakes that I have seen students and parents make, so you can avoid them and maximize your financial aid eligibility.

1. Use your full legal name, not your nickname and spell it correctly. It may seem obvious, but this is a common mistake. The FAFSA is a legal document and you need to enter your legal name on the form. It is also important because your financial aid application is cross-referenced by the Department of Education with your Social Security Number. If the name you list on the FAFSA does not match the name associated with your SSN, it will be flagged as an error and your financial application will be put on hold until the information is corrected. Also, college's student record systems will also cross-reference the name you provided on your college record to the FAFSA record. If the name does not match the name they have on file, the college will not receive your FAFSA electronically.

2. Make sure your Social Security number/Alien Registration and Date of Birth are correct. Frequently, I have found that the student's SSN is incorrect. It can be as simple as an error of reversing the numbers of the SSN. I have also seen instances, where a parent has completed the FAFSA for the student and inadvertently entered the parent's own SSN in place of the students. I have came across a situation where a student used a siblings SSN. In addition to being illegal- if done intentionally it is identity fraud- it slows down the financial aid process.No aid is awarded until this is resolved. The same holds true for the your Date of Birth and Alien Registration Number for legal aliens/permanent residents, an incorrect date or number will stop the processing of your aid application.

3. Don't confuse your Adjusted Gross Income with your Gross Income. When completing the Income sections of the FAFSA be sure to refer to your 2010 Federal Tax Return. The FAFSA will note the line on the 1040, 1040A or 1040EZ that lists the AGI. If you use the Gross Income figure, you are over-reporting your income and you could lose aid eligibility due to a high income.

4. Don't confuse your Taxes Paid with Taxes Withheld. Often applicants will mistakenly list the taxes withheld shown on their W-2 as the Taxes Paid. If the taxpayer received a refund, the taxes withheld would be higher than the actual taxes paid. Conversely, if the taxpayer had to submit a payment with the tax return, the FAFSA would be showing less in taxes than was actually paid. Each of these errors would result in a miscalculation of eligibility and would most likely be cause the application to be flagged as having an error.

5. List all members of your household. For Dependent students, this means anyone who lives in your parents house for whom they provide more than 50% support. This includes siblings (including any unborn child that will be born during the academic year the application is being submitted for), step-siblings, nieces/nephews, cousins, grandparents,etc. For Independent students this includes a spouse, children (including any unborn child due during the academic year), step-children, in-laws, etc that live with you for whom you provide more that 50% support.

6. List Family members attending college only if they are enrolled in a degree program. Family members who are attending at least half-time and are enrolled in a degree or certificate program should be listed in the number of family members attending college. Please note: Parents are not included in this number.

7. List the schools and the correct school code that you want to be sent your FAFSA results. Students will frequently omit a school and its school code and be waiting to receive an award letter only to find out too late that the college never received their FAFSA results. When you receive your FAFSA confirmation double check that any college you want to receive the data is listed with its correct school code. Keep in mind that the FAFSA school code is different from the College Board code used when applying for the SAT and ACT. Also, colleges with different campuses or separate schools within a university (for example: School of Business, Graduate Schools) often have separate FAFSA school codes.

8. Don't change Marital Status on the form after filing the FAFSA. You are required to indicate your (and your parents' marital status on the FAFSA) as of the date your FAFSA is completed. If the marital status changes after you submit the FAFSA, you can not change the status. You should contact the Financial Aid Office at your college for instructions on their process for handling such situations.

9. Be sure to sign the FAFSA before filing. You (and a parent, if you are a Dependent Student) need to sign the FAFSA before submitting it. If you file electronically, you (and your parent) should each have a PIN. The PIN is your electronic signature. If you are filing a paper FAFSA, you (and your parent, for a Dependent Student) must sign the paper application. Failure to sign the form will halt processing of your application.

Avoid these common errors for a stress-free or at least a stress reduced FAFSA experience!

8 Tips for Applying for Financial Aid for College Bound High School Seniors

2010-12-16T10:00:00.000-05:00

Earlier in the month I was the guest expert for the bi-monthly Twitter discussion group #CollegeChat. I offered tips for high school seniors and their parents as they face the prospect of tackling the college financial aid process for the first time. Theresa Smith of Pathways Communications,who moderates #CollegeChat has post a blog that recaps the 8 Financial Aid Tips that I offered during the chat. Check it out at http://pathwaypr.com/

Interest Free College Loans: They Do Exist

2010-09-07T18:28:00.001-05:00

US News and World Report published and article today that outline some private loans that are interest free. Check out the list in the article at http://www.usnews.com/articles/education/paying-for-college/2010/09/07/how-to-find-interest-free-student-loans.html.

Massachusetts residents who are enrolled full time in a degree or certificate program at a participating Massachusetts public or private colleges may qualify for the Massachusetts No Interest Loan (NIL) offered through the Massachusetts Office of Student Financial Assistance (OSFA). Loan amounts range from $1,000 to $4,000. A loan promissory note and loan counseling are required. For more information check out the Interested students should check with their college financial aid office if they wish to apply and the OSFA website at http://www.osfa.mass.edu/default.asp?page=nil.

College Recruiting Practices to Avoid

2010-08-06T20:54:00.007-05:00

Senate hearings this week put for-profit colleges in the spotlight again for illegal and unethical recruiting practices at some very big name schools, such University of Phoenix, ITT, Westwood and Kaplan. For-profit schools, as the title suggests, are operated to make profits for the benefit of shareholders. Traditional colleges are not-for-profit institutions, which re-invest income back into the institution's programs and facilities. They do not have shareholders to please. The admissions and financial aid staffs at some for-profits can be under extreme pressure to increase enrollment and can be encouraged or required to ignore federal regulations and laws that pertain to recruitment practices meant to protect students.

Some of the tactics used were revealed at the hearing this week in a video that showed staffers from the Government Accounting Office (GAO) working undercover as prospective students at several for-profits throughout the US. Practices included providing false or inflated data on salaries of graduates of their programs; not clearly informing prospective students about the real cost of tuition and fees; and not allowing students to talk to financial aid staff prior to making a financial commitment to the school. Employees of these schools have also been found to coach students to lie on federal financial aid forms or to have falsified financial aid forms for the student.

Accreditation issues can also cause problems for students. Schools, both for-profit and not-for-profit, must receive accreditation from a recognized and approved accreditation agency to be able to provide educational services/programs. Individual academic programs must also be accredited. Accreditation means that the school and its academic programs meet recognized industry standards. All schools must be accredited to operate and to receive federal/state financial aid for their students.

At some for-profits school, students have run into problems upon graduation, when they realize that although the school that they graduated from was accredited, the program that they completed was not. This is important for careers that require employees be graduates of accredited programs and may prevent graduates for gaining needed professional licensure and as a consequence jobs in the desired profession. This can be an issue, particularly in allied health and technical fields.
To avoid be tricked into any school that may be inappropriate for the student's needs and goals, individuals should ask for:

1. The per credit tuition/fees required, the total number of credits required for the degree and the average number of semesters/terms it typically takes to complete the program.

2. What accreditation agency has provided the school's accreditation and if the academic program is accredited and through which agency.

3. Whether there are job placement services on campus and the names of companies that have hired its graduates from the academic program being considered.
It would be advisable to compare programs at a for-profit college to a community college in the area, as they offer similar programs. Compare costs, length of program, accreditation, and job placement opportunities. For information on enrtry level salaries, professional training and licensure requirements, a great resource is the US Department of Labor's Occupational Outlook Handbook at http://www.bls.gov/oco/. The OOH gives salary information by state as well as national figures. This will help determine if salary figures presented by schools are realistic.

With a few specific questions and a bit of research those interested in any college, for-profit or not-for-profit, can find the program that leads to a satisfying career.

The Homesick Freshman

2010-07-21T23:47:00.003-05:00

As summer progresses the topic of homesickness crops up in my discussions with parents and soon-to-be-college freshmen. Questions range from what is it to what are ways to deal with it or prevent it. It is important to know that although homesickness is common for incoming freshman, it is not inevitable. Also, individuals can experience homesickness prior to arriving on campus and well into the freshman year. Homesickness is not exclusive to college freshmen. Any individual making a transition away from home such as a transfer student or a person moving away for a job can experience it.

Homesickness is really a form of separation anxiety. Symptoms include feeling sad or lonely. The individual may also yearn for home, family and friends. Freshman may exhibit lack of motivation to study, make friends or participate in activities. It may also manifest itself in a sense of being overwhelmed by classes and studying.

It is important to note that there is a major distinction between homesickness and depression. Those experiencing homesickness are relieved of their symptoms when they return home or to a familiar environment. Those with depression do not see relief when they visit home and friends.

There are steps that can be taken to prevent, minimize or overcome homesickness. Prior to heading to college, students should take every opportunity to get to know their college and roommate(s). Freshmen Orientation is a great time for incoming freshmen to familiarize themselves with the campus, services and meet students in their major or who share similar interests. Colleges allow and encourage students to connect with roommates prior to landing on campus in the fall. Students can share phone numbers, email addresses and friend each other on Facebook and MySpace. This helps develop friendships, social ties and a support network prior to attending college that they can turn to once the semester begins.

Parents, too, can find Freshmen Orientation and Welcome Days beneficial. There is a trend now to have sessions during Freshmen Orientation for parents that cover topics such as homesickness, and the college transition for parents and students. Some college are even creating a day-long Freshmen Parent Orientation.

Once at college, freshmen can prevent homesickness by following a few techniques. Get to know and interact with dorm mates. Join groups or sign up for sports or other activities. Know that your fellow freshman are all new to college, feel uncomfortable, and are missing family and friends, too. For the shy individuals, I highly recommend checking out Pat Weber’s website http://www.patricia-weber.com/. Pat is the “Business Coach For Introverts And Shy” and she has great networking tips for overcoming introvertism and shyness that are useful for introverted or shy college freshmen who feel uncomfortable making friends or being in new social situations. It may also be helpful for freshmen to bring favorite things from home. Use Skype to stay in contact with friends and family. Parents, don’t forget to send care packages to your freshman with mementos from home and her favorite snacks.

Those experiencing homesickness can use the same techniques. If the homesickness is severe or prolonged, impacting academic performance or progressed to full depression, the student should talk to the Resident Assistant (RA) in the dorm or make an appointment with the counseling services on campus.

Tackle homesickness head on and the college experience will be successful and memorable for freshmen and parents alike!

Twitter Event #CollegeChat Provides Chance To Hear From College Professionals

2010-07-02T13:23:00.005-05:00

Earlier this week I participated in the Twitter event, #CollegeChat. I discovered this #chat within the past month and have participated in each of these discussions. These are live conversations which feature a guest and are moderated by Theresa Smith of Pathways Communications. Twitchats, as they are called, are discussions which last an hour or so on a particular topic. The #CollegeChat twitchats are geared toward teens, college students, parents, and higher education experts and are great ways to hear and share advice and ask questions on a variety of college related topics Theresa has had some great topics and guests. Earlier in June, guest Lynn O’Shaughnessy, higher education journalist and author of the new ebook, Shrinking the Cost of College: 152 Ways to Cut the Price of a Bachelor’s Degree, discussed how to reduce the cost of college.

This week's #CollegeChat's topic was "How to Land Your First Job". The guest for the event was Kathryn Marion, a columnist covering the college-to-career transition and author of “Grads: Take Charge of Your First Year After College”. A number of college professional joined in and offered their tips and thoughts on the topic.

If you missed either of these #CollegeChat events, you can find a recap of them at http://pathwaypr.com/. Read Theresa's post How To Participate In A Twitter Chat, if you are looking for information on how Twitter Chats work and how to participate.

Be sure to follow Theresa Smith on Twitter (@collegechat) and join in future #CollegeChat discussions.

The Value of a Health Care Proxy for Your College Student

2010-06-21T20:56:00.000-05:00

Who do you know that is getting ready to go off to college this fall? Perhaps it’s your own child, a niece/nephew, grandchild, or son/daughter of a friend. Families will soon be shopping for bedding, mini-fridges, Easy Mac, and textbooks. With the myriad of things to be done before the fall, I’ll bet you very few family “to-do” lists include a check off box for Get Junior a Health Care Proxy. This often overlooked necessity is something that should, at the very least, be considered.

When your child turns 18 they are a bona-fide adult and Mom and Dad cannot step in to make medical decisions for their now “adult” children. In Massachusetts, the only document legally recognized to name a substitute decision maker is a Health Care Proxy. However, the overwhelming majority of college students do not have a Health Care Proxy in place.

A Health Care Proxy names someone to make health care decisions for you in the event you are unable to do yourself. So, for example, let’s say that Sally comes down with a bad case of meningitis her freshman year. She deteriorates very quickly and ends up in a near-unconscious state, unable to make or communicate medical decisions. If she had a Health Care Proxy in place naming Mom, Dad, or older sister as her health care agent, they would be able to communicate with Sally’s treating physicians more completely and have legal authority over her health-related decisions.

What if Johnny has a tragic accident on the football field leaving him paralyzed from the neck down? On top of that the doctors say the outlook is grim if Johnny will ever regain mental functioning and is in a permanent, vegetative state on total life support. Without a Health Care Proxy in place, Johnny’s family won’t be allowed to decide the level of support he will receive. Johnny’s family may even be forced to go to the county Probate Court to get a legal guardianship and ask a judge to make any changes to Johnny’s treatment. Most students would rather have a trusted family member make this decision than a total stranger.

It may seem unnecessary to prepare health care documents for someone so young and healthy, unlikely to come down with serious illnesses. However, when accidents happen to young adults, their legal needs are not often protected and important decision can be left up to disinterested parties, limiting close family involvement.

This may be an unsavory topic to discuss with an 18 year old, but very important, especially if your child still wants Mom and Dad helping them handle their affairs until they get older or are married.

Author: Kristina R. Vickstrom, Esq. lives and practices law in Massachusetts. For more information about Kristina check out her website at http://vickstromlaw.com/about-us/

Tuition-free colleges stand their ground against costs

2010-04-06T13:04:00.001-05:00

USA Today has an interesting article about tuition-free colleges.It's not just military academies that offer tuition-free education either. Some offer liberal arts programs, while others offer engineering or architecture.

At least one tuition-free college had to make concessions to the reality of the impact economy on its endowment. The Franklin W. Olin College of Engineering in Needham, Massachusetts, which has been tuition-free, made the decision to switch to half-tuition for incoming freshmen begining this fall. The decision was made due to the limitations of the college's endowment and the realization that cost-cutting alone would not be sufficient. Olin intends to revert back to fully tuition free as soon as the economic conditions allow.

To read the full article and for USAToday's Top 10 List of Colleges Where Tuition Is Free check out http://www.usatoday.com/news/education/2010-04-06-tuitionfree06_ST_N.htm

Education Tax Credits and Deductions for 2009 You Should Know and Use

2010-04-05T22:43:00.000-05:00

If you or a dependent have college related expenses, you should review the following federal education tax credits as you prepare your 2009 federal tax return. These tax credits may be claimed for qualified education expenses of the taxpayer, taxpayer's spouse or taxpayer's dependents.

1. American Opportunity Credit was created by the Obama administration to assist students and parents defray the cost of the first four years of college. The American Recovery and Reinvestment Act modified the Hope Tax Credit for tax years 2009 and 2010. As a result it is available to more individuals. Taxpayers may qualify for a tax credit of up to $2,500 per student per tax year. Up yo 40% of the credit is refundable, which could lead to a $1,000 refund even if the tax payer does not owe taxes.

2. Hope Tax Credit has been around since the Clinton administration and has been applied to the tax year 2008 and earlier, but has been expanded for tax year 2009. The credit may be claimed for up to $3,600 for a student attending a Midwestern disaster area, as long as the American Opportunity Credit is not taken. This credit may be taken by either the student or the parents to assist with the cost of the first two years of college.

3. Lifetime Learning Credit is another Clinton era education credit. It can be used to assist with college expenses, including graduate and professional degree courses. This includes job skills improvement courses, regardless of length of program. Credit is for up to $2,000 per tax return. If the student attends a college in a Midwestern disaster area, the limit is $4,000 per tax return.

You can not claim the American Opportunity Credit, Hope Credit and the Lifetime Learning Credit for the same student in the same tax year. You may claim more than one education tax credit in a year for different different students.

4. Tuition and Fees Deduction may be claimed by students or parents for qualified tuition and related expenses up to $4,000. This is a deduction and not a tax credit, which means that the qualified amount is deducted from taxable income. It reduces the income subject to tax and as a result the amount of taxes paid. Also, you can not claim an education tax credit in the same tax year that you use the Tuition and Fees Deduction.

Note: Students can not take this deduction, if claimed as a dependent of a parent.

5. Student Loan Interest Deduction may be takedn if you paid student loan interest in 2009. You may be able to take a Student Loan Interest Deduction of up to $2,500. To qualify your tax filing status can not be “married, filing separate”; your Adjusted Gross Income (AGI) is less than $70,000 or $145,000, if filing jointly; you or you spouse, if filing jointly, can not be claimed as a dependent on someone else's tax return. The deduction will phase out at certain AGI levels.

For more information on these credits and deductions, you may refer to the following IRS publications: Publication 970 Tax Benefits for Education and Form 1098 E, Student Loan Interest Statement and discuss them with your tax preparer.

McLaughlin Education Consulting Offers New Ways To Help You Stay Informed

2010-03-22T19:35:00.003-05:00

I have been busy lately updating my website to include new ways to offer information to clients, prospective clients and anyone interested
in college planning. I have been creating an e-newsletter for a while to help those interested in college planning issues and trends stay informed. My plan is to produce these monthly or bi-monthly. If you are not receiving the e-newsletter, you can now sign-up to be on the mailing list on my website headforcollege.com on the homepage.

More in-depth information will be offered through my teleseminars. First up is a program on College Financial Aid, which will cover the process, forms and types of financial aid. It is scheduled for April 21st from 7-8pm. This teleseminar is free, so please take advantage of this session. You may use the Sign-Up form on the Seminar page of the website.

Since last Fall I have done a number of radio interviews and have been a regular guest co-host on WESO 970 AM. I am now able to post audio and video recordings to the wesite on the Media Clips page of the site. Currently you can listen to my guest hosting appearance on WESO of March 19th. We discuss the timely topic of College Waitlists.

The Resource Page has links to college planning related sites such as the Dept of Education and FAFSA, the College Board and CSS Profile and http://www.wecomparebooks.com/ a discount textbook website.

If you are interested in scheduling a college planning consultation, looking for information on my tutoring services or inquiring about my Corporate Services you can contact me through the Contact Page.

So check out the new website and take advantage of the information and services available that I offer. Feel free to let me know what you like or don't like about it, and what you would like added to the website.

No Loan Financial Aid Policies: Flash In The Pan?

2010-03-13T22:20:00.006-05:00

Help for middle class families. Reducing college loan burden of students and parents. These are a couple of the reasons given by colleges and universities for developing "No Loan" financial aid policies. Institutions of higher education instituted these financial aid policies, which fully fund financial need of families with AGIs under institutionally prescribed caps without requiring or offering student or parent loans. The AGI caps vary from college to college. The income caps can be set at anywhere from $50,000 to $120,000. Colleges accomplished these "No Loan" goals by utilizing institutional grants and scholarships in conjunction with federal grants, scholarships and workstudy. The institutional funds typically drawn from endowments.

Up until a few years ago there had been relatively few such programs. And although, these programs have increased in number, they are still not widely available at most colleges or universities. "No Loan" programs are found generally at elite and selective colleges with healthy endowments. Most colleges don't have that luxury.

The popularity of "No Loan" financial aid programs began in earnest about three years ago in response to criticism from Congress regarding the large endowments many of these institutions held. As tuition costs rose and endowments grew with a strong stock market, Congress felt that universities were holding too much money in their endowments. It questioned why more of those funds were not put towards financial aid or used to reduce tuition. There were threats of Congressional reviews of and potential federal regulation of endowments.

Despite the growing popularity of such programs by elite and selective colleges, many students and families were unaware of them. Unfortunately, there has been less interest in initiating "No Loan" financial aid policies at other institutions. And with the economy in a slide and endowments suffering huge losses in fiscal year 2009, colleges and universities are now reviewing, revising and reversing these policies.

The 2009 NACUBO (National Association of College and Unversity Business Officers) Commonfund Study of Endowments ranked the endowment losses in fiscal year 2009. The following institutions experienced the greatest losses in endowment dollars.

1 Harvard University: ($10,894,229,000.00) or -29.8%

2 Yale University: ($6,543,000,000.00) or -28.6%

3 Stanford University: ($4,595,279,000.00) or -26.7%

4 University of Texas System: ($4,008,135,000.00) or -24.8%

5 Princeton University: ($3,735,016,000.00) or -22.8%

6 Northwestern University: ($1,798,688,000.00) or -24.8%

7 Duke University: ($1,682,998,000.00) or -27.5%

8 The Texas A&M University System and Foundation: ($1,575,598,270.00) or -23.7%

9 University of Michigan: ($1,571,075,000.00) or -20.7%

10 University of Chicago: ($1,538,224,000.00) or -23.2%

Earlier this year, Williams College in Williamstown, Massachusetts, ended its "No Loan" policy. Lafayette College, in Easton, Pennsylvannia, has reviewed it's financial aid policy. While it retained the "No Loan" policy for families with AGIs below $50,000, the loan limit was raised for students with family AGIs of between $50,000 and $100,000. Those families are now expected to borrow $3,500 a year up from $2,500 a year. Dartmouth College in Hanover, New Hampshire is on record as considering revamping it's "No Loan" financial aid policy.

So while there are a number of colleges and universities that still have "No Loan" financial aid policies, if you are considering one of these schools, be sure to question the future status of the policy and make your college decisions knowing that there is a good possibility that the program will be eliminated. If the program is eliminated, you will need to rely on federal or private student loans. So be forwarned and prepared.

For College Transfers The Time Is Now

2010-02-25T22:31:00.000-05:00

Lately, I have been fielding a number of questions from and on behalf of college students who are considering transferring to another college. The major concerns are whether admissions/financial aid deadlines have passed, if SAT/ACT scores be needed, and how many credits can be accepted in transfer.

It is important to note that the admissions process and financial aid process for transfer students, although similiar to that for the freshman, does not completely parrallel the freshman cycle. The admissions deadlines for transfer tend to run anytime from April through August for the Fall semester. Some college also accept transfer students for the spring semester. Check with the Admissions Office or Transfer Office for the deadlines. Transfer applicants generally do not need to submit SAT/ACT scores, unless they have earned fewer than an academic year's worth of credits.

College transcripts replace the need for high school transcripts for transfer students. This is good news for students with less than stellar high school grades. College transcripts fill two important roles in the admissions process: 1.) they show how the applicant handles college level academic work and 2.) they are used to determine which credits are acceptable for transfer by the college. Keep in mind that in general credit is accepted only for courses with a grade of C or better. Colleges may limit the number of transfer credits accepted. The Registrar's Office determines what credits are acceptable. Note that the evaluation of transfer credit may not happen until after you have been accepted to the college.

For students who need financial aid to assist with college expenses, it will be necessary to determine the college's financial aid deadline for transfer students, which often will be different than deadlines for freshmen or returning students. Students who had completed the FAFSA for the coming academic year, prior to deciding to transfer need only to update the FAFSA to include the information for the transfer college. It is essential to check with the college to determine if the CSS Profile form is also required.

Stay on top of the deadlines and the forms required and ace the transfer process!

Colleges' Responses To Budget Issues Will Effect Students

2010-02-09T22:21:00.002-05:00

Recent news reports have noted that colleges and universities have experienced huge losses in their endowments in 2009 as a result of the stock market's plunge. The impact of those losses has led institutions to make a variety of decisions and adjustments to compensate for the losses.

In the past week or so both Williams College in Massachusetts and Dartmouth College in New Hampshire have announced that their financial aid policies have been amended and their "No Loan" policies would be rescinded effective for the fall of 2011. Several years ago a number of select and elite colleges had announced "No Loan" awarding policies for middle income families. These policies guaranteed that students and parents would not be required to borrow for tuition and fees. Instead the colleges would ensure that the student's full need would be met by the college or university through institutional grants and scholarships. (Middle income definitions varied by college and could be any family with an AGI of $180,000 or less at one college, while another college defined it as an AGI of $80,000 or less.) With endowment losses these policies could not be maintained. It is likely that other colleges will begin to review their "No Loan" policies and make similar decisions for Fall 2011 or 2012, as well.

Another impact of campuses' budget woes is the Admissions Offices' increase desire for and focus on recruiting out-of-state applicants among state colleges and universities. Out-of-state students pay higher tuition rates than in-state students and thus those tuition dollars can offset losses from endowments. In some areas, in-state students could very well be shut out of their own state universities for the Fall of 2010. This trend may last for a few years until campuses recover from the Great Recession.

Faculty and staff layoffs have also increased on many campuses as a response to budget shortfalls. Students will feel these actions. The impact will result in fewer course offerings, larger classes, smaller academic programs/majors being eliminated, reduced services and potentially delays in student service areas.

While increasing tuition and fees are also options, institutions are have been hesitant in the past year to raise them. The few colleges that did raise tuition for fall 2010 were sensitive to the impact the economy had on families and raised them only minimally.

If you are planning for college you can limit the impact of the college's budget issues. Find out what the college's financial aid policy is and if there is any possibility of changes to the policy. Also investigate the popularity of your intended major. Is it possible the college will eliminate your major? If so, you may want to change your major or attend another college. If you are currently attending college, living off campus with roommates instead of on campus can be less expensive. Transferring to a more affordable college or one where your major is successful and popular can also be an option.

In Retrospect: Choosing to Go to B-School

2009-12-29T12:40:00.002-05:00

I found Rishonna Campbell's blog post on BrazenCareerist.com and felt it was a good example of the thought process adults go through when deciding to go to college or return to college. What questions or concerns do you have about returning to college? Let me know and I will may use your question for a blog topic.

How To Pump Up Your Scholarship Search

2009-12-28T15:53:00.003-05:00

The search for private college scholarships is an integral part of the college planning process. Even a small scholarship can help defray your college expenses and may allow you to turn down a loan or reduce the amount one needs to borrow.

High school seniors, haven't begun your college scholarship search yet? Now is the time to start! Deadlines for private scholarships for the 2010-2011 academic year for college bound students will start cropping up after the New Year and will culminate for the most part by July. If you are planning to conduct your own scholarship search, there are strategies that you can use to manage your search and improve the effectiveness of your search.

GET ORGANIZED! Your search could uncover 12 to 25 scholarships for which you qualify to apply and managing them all can be overwhelming without a plan. So you will need to develop a system for tracking each scholarship's application description and requirements, forms, references, deadlines and copies of all documents that you submit to support your application. It would also be wise to set up a calendar to plot what you need to do and when for all scholarships that you decide to apply for.

IT'S INVENTORY TIME! As you begin the scholarship search process, you will need to develop a list of your skills,interests and attributes. Don't be afraid to include your religion, ethnicity and unusual characteristics. Did you know that Pennsylvania's Juniata College has a scholarship for left-handed students? There is even a scholarship for little people from Little People of America Association and one for tall people from Tall Clubs International. Adopted or foster children will find that there are a number of scholarships or grants for them on the national, state or county/regional level.

RESOURCES- THE MORE THE MERRIER! There are a number of reliable internet scholarship search sites including http://www.finaid.org/ and http://www.fastweb.com/. You can also simply do a Google search for scholarships. To do a Google search enter the word "scholarship" and whatever topic/subject you want. For example: search for "orchestral music scholarships" and you will find a number of scholarships including the John Belushi Memorial Orchestral Music Scholarship and various scholarships at various colleges/universities such as the New England Conservatory,Truman State University and the University of Wisconsin at LaCrosse.

High school students should check with their guidance office, which keeps track of local scholarship opportunities. Don't forget libraries and bookstores are great resources for books that list scholarships! Use a variety of resources to maximize your scholarship options.

WORK IT OUT! Students who are employed part time may be eligible for scholarships through an employer. This is particularly true for those working for regional or national retail chains. Don't neglect checking with your parents' employers, as they may offer scholarships to employees' children.

MULTI -YEAR OR RENEWABLE SCHOLARSHIPS--- WHAT'S THE CATCH? While most private scholarships are one time awards, there are some that are multi-year awards or allow you to renew your award for a second year. Find out if there are requirements to maintain full-time enrollment and what constitutes full-time enrollment. Often recipients must maintain a minimum GPA to retain or renew a scholarship or grant, as well.

GET TESTED! It is important to take the PSAT in your junior year and the SAT or ACT test in your senior year because you may qualify for some important national scholarships. By taking the PSAT you could qualify for the National Merit Scholarship.

GO CLUBBING! Students and parents should draw up a list of clubs and organizations to which they belong. Often these groups will offer scholarships to members of their offspring. These can be social or religious in nature.

NAIL THAT ESSAY! If an essay is required, make sure your essay addresses the topic or question that is given. Have your essay proofread by a parent or teacher to ensure it is on target and grammatically flawless. Often you will be allowed to determine your on essay topic. You may recycle an essay that you submitted with your college application in part or in full, if it meets the scholarship's essay requirements.

PAY TO PLAY? NO WAY! Occasionally you will come across a scholarship that requires an application fee. You should not have to pay a fee to apply for a scholarship. This could signal that the organization or scholarship may be scam.

So strategize, organize and watch those scholarships roll in!

College Planning Does Not Take a Holiday!

2009-12-16T14:50:00.003-05:00

While you may be focused on preparing for the holidays, you should not slack off on your college planning process. In fact there is plenty that can and should be done between December and January. Here is a mid (academic) year to do list:

1. Admission Applications- Now that Early Decision/Early Acceptance deadlines are past, you need to make your final choice of colleges for regular admission. Apply for admission! Keep records of your application materials.

2. Scholarship Search- If you haven't begun your scholarship search yet, now is the time to start. Most private scholarships will have deadlines ranging from January through June. Great sites to help you with your search are http://www.collegeboard.org/ , http://www.fastweb.com/ and http://www.finaid.org/. You can even do a search on Google. For example if you are interested in a scholarship for orchestral music, search that phrase and you will find a link to the John Belushi Memorial Orchestral Music Scholarship. While a search of poetry scholarships will provide you with information for The National High School Poetry Contest. Beware of scholarship scams that promise scholarships or require an application fee. Read the Federal Trade Commissions warning at http://www.ftc.gov/

3. Financial Aid Applications- You can complete and submit the CSS Profile any time from mid-fall on. The FAFSA (Free Application for Federal Student Aid) is available in paper form from high schools and college begining in December. Although you can not file the form until January 1st 2010, you can complete the paper form or the online worksheets found at http://www.fafsa.ed.gov/ to have it ready to go January 1st. (The online FAFSA form itself is not available until January 1st.) You will need to gather tax, income and asset information, some of which may not be available at this time. Be aware that you can estimate on the FAFSA if your W-2 forms and other tax statements are not available when you are ready to finalize your FAFSA information and submit the form. Don 't worry you always update the information once you have received the missing data. It is important to get the FAFSA in as soon as you can after Jan 1st as financial aid is awarded on a first come- first serve basis.

4. Register for Selective Service- If you are a male age 18 to 26 years old, you need to register for Selective Service in order to be eligible for financial aid. You can either pick up the the SS Registration Form at any US Post Office or register through the FAFSA form itself.

5. Exams- It is also time to register for SAT I and SAT II, if needed. Check with the Admissions Offices of all the colleges you intend to apply to for information on test requurements. Also make sure to register for your AP tests, as well. Note that unlike past years, CSS allows you to send your best scores to colleges. So it may be advisable to retake your SAT I or SAT II. Discuss this strategy with your parents and counselor.

6. Transcripts- Have mid-year transcripts sent to colleges. Colleges will use your mid-term transcripts in the admissions review process. But don't think that you can let your grades slide in the spring! College will required you to provide final transcripts later at the end of the spring semester as well and if your grades tank, your admissions offer may disappear!!

7. Plan Your Summer - Winter is a great time of year to apply for summer jobs, internships and volunteer programs. With the current unemployment for teenagers (as of December 4, 2009, Bureau of Labor Statistics) was 26.7%, you can start to look for summer opportunities and get a jump on the competition!

8. Financial Planning for Parents - Year end is a great time to review your 529 plans. Remember that this only year (2009) you are allowed two opportunities to change your plan without changing beneficiaries. So if you are unhappy with your current 529 plan you have until the end of this month to make a move, even if you made a change earlier in 2009. Beginning in January 2010 the rule reverts to an annual change. Parents should also pay down credit card debt, as the FAFSA and Profile do not consider that form of debt in the calculations. By doing so you reduce your cash/savings and decrease your assets, which are considered on the forms.

Include these tasks on your holiday to do list and you are sure to reap the rewards this coming spring!