Free College – It’s Not Just a Political Slogan Anymore!

April 21, 2017

In a development that has young people (and their parents) celebrating a little bit, New York state has become the first state in the country to offer free tuition for two AND four year degrees to in-state residents at state colleges/universities. For many families, this is going to open up new possibilities and some kids who thought college was out of reach are going to get a degree. There is no doubt that this program will benefit lots of families. But just like there is with any program that is rolled out, there will be some “catches” or limitations. For those who are thinking of moving to New York in order to take advantage of this program, there are some limitations you should know about:

There is an income cap of $100,000 currently and that will be increasing annually so high income families will not be eligible for this program.
The program is able to be used for two years for a two year degree and four years for a four year degree. So if like ~80% of my college rugby team, it takes longer than four years to graduate, the program won’t be available in your second or third senior year.
Upon graduation, if the student doesn’t stay in New York for two years or four years (depending on two or four year degree), the scholarship money (the program is structured as a scholarship equal to tuition, not room/board/books/etc.) that was received is converted to a student loan.
The scholarship, as noted in the prior bullet, is only good for tuition. Books, fees, housing and incidentals aren’t covered by this so students without a strong support network will be required to work or use student loans to cover the remaining costs.

These are a few of the potential drawbacks of this from the student’s standpoint. New York taxpayers will have the drawback of funding these costs upfront and the goal of the legislature is to increase the overall education level of the workforce, thereby increasing incomes of those remaining in the state after graduation and those incomes will be taxed in New York state. In theory, this program could pay for itself over a long enough time frame. Whether it does or not or whether that even matters is a topic that I’m seeing debated on social media currently and I’ll avoid that debate for now.

There is definitely a lot of discussion, debate and movement toward making college a less expensive proposition. Lots of municipalities are approaching this in different ways. I’m not sure how it will progress, but as the parent of one child in college and two on the way, I’m DEFINITELY interested in seeing how this plays out. As more states propose and pass legislation, I’ll be potentially considering a move to a state that offers a sweetheart deal!

5 Places to Look for Scholarships and Grants

December 29, 2016

It’s that time of year when students are hearing from colleges and having to make decisions of where to go and how to pay those college bills. When it comes to reducing college costs, there are many options, but none come with the benefits that scholarships and grants have. Unlike loans, they don’t have to be paid back and unlike work study, they don’t have to be worked for. They’re basically free money. Here are some places to find them:

1) The high school guidance counselor. If your child hasn’t spoken to their guidance counselor yet, this is a great place to start. After all, it’s part of their job. They’re often notified of scholarship opportunities and can at least point your child in the right direction. In fact, I found out about the scholarship offered by my college from my high school guidance counselor.

2) Employers. Some employers offer scholarships to employees and their children. Ask your employer, your spouse’s employer, and your child’s employer about any possible programs. Even a part-time or summer job may qualify.

3) Community organizations. Many local community organizations may award scholarships to local students, especially if your child has performed community service or if either of you are members. These scholarships tend to be small, but there’s less competition for them. I remember winning a small scholarship in an essay contest by my local bar association. You can find a list of some community service programs here.

4) National scholarships. There are literally thousands of opportunities to win scholarship money out there based on your child’s ethnicity, religion, interests, academic and athletic achievements, essay-writing ability, and other skills and attributes. You don’t have to pay a scholarship search service to find them though. This article compares some of the top free online scholarship search engines.

5) The college. Finally, there’s the actual college your child applies to. They generally offer scholarships and grants based on both need and merit. While your child may not know what merit scholarships they’ll qualify for until they apply, you can estimate the need-based grants by using the net price calculator tool that each school has on their web site. In calculating your expected out-of-pocket costs, they estimate how much your child would receive based on family income, assets, number of children in college, etc.

While your child may not be able to get enough scholarships and grants to cover all of their costs, you may be surprised by what they can qualify for. All it takes is a little research and legwork. If nothing else, it will be good preparation for the work they’ll have to do in school and the rest of their lives.

Just Say No

August 18, 2015

I am a child of the 80s. I grew up on Happy Days, Falcon Crest, and Family Ties. In between these shows, inevitably a commercial would come on with a child being pressured into using drugs, refusing and looking into camera and saying no. Continue reading “Just Say No”

Would You Turn Down All 8 Ivy League Schools?

May 21, 2015

That’s what a high school senior named Ronald Nelson did to accept a free ride at the University of Alabama. While very few students will be in Nelson’s enviable position, many families will have to decide between a more expensive higher-ranked school and a lower-ranked but less expensive school. With both education and student loan debt increasingly important factors to many young people’s financial well-being, this is not always an easy decision to make. Here are some things to consider: Continue reading “Would You Turn Down All 8 Ivy League Schools?”

Five Myths About Your 529 College Savings Plan

May 21, 2014

As the school year winds down and the invitations to high school graduations start pouring in, I can’t help but think about the day when my own little girl Rachel—who is finishing up her sophomore year—will be sending out her own invitations. It all seems to be going by so fast but fortunately Susan and I have been preparing for that day by saving in a 529 college savings account. For some of you moms and dads out there, you too have been using this savings vehicle to help pay for those oncoming college expenses but as Kathryn Flynn writes in a recent post called “Clearing up the confusion: Five popular 529 plan myths,” there are a number of myths floating around out there that could cause confusion when it comes time to using these accounts. Understanding each one will help you and I when it comes time to funding our child’s higher education. Continue reading “Five Myths About Your 529 College Savings Plan”

Getting Smart About College Costs: Part 3

May 02, 2012

By May, the “long wait” is over for most high school seniors. They’ve heard from the colleges or universities they applied to and have made their final choice. With a September destination locked in, there’s not a whole lot of learning going on in those last weeks of high school. Usually it’s a time for just showing up, having fun and saying goodbye to teachers and friends. Let Senior Week begin! Continue reading “Getting Smart About College Costs: Part 3”

Ten Steps to Funding a College Education

March 30, 2011

So what does college planning look like in the real world? That’s an excellent question, and since I don’t have a child in college yet, let me share with you what I hope it looks like:

My daughter Rachel is 12-years old. She will be attending the University of North Carolina (she doesn’t know that yet, but she will—Go Tarheels!). This year the cost to attend was about $6,000, so her mother and I will plan on paying for her tuition; she’ll be on her own for books, fees, and other expenses. Her grandpa has already contributed $6,000 toward his granddaughter’s education, so we figure we’ll need to save another $280 a month to meet our goal. Continue reading “Ten Steps to Funding a College Education”