What Does Tuition Include?

It is easy to become confused when it comes to the topic of tuition. Each college or university will have a different cost associated with tuition. Some of these schools automatically include other necessary expenses into the cost of an education. These costs may include things that parents have already allotted for outside of tuition.

Researching specific schools is a good way to determine what your tuition cost entails. The first step in this process is to narrow down your choice of schools. Some students already have an idea of what school they want to attend. Others are open to the best offerings that a college can offer to them. This will include considering majors, degree programs, and even the location of the school. Once these factors have been determined you can consider tuition and what it includes.

Basic Tuition

Basic tuition most often is simply the number of credit hours the student will take. Some universities and colleges determine this cost per credit hour or unit. Students are charged individually for this expense. These units can range from $300 to $500 each, and more in some cases. Other schools, however, charge a flat fee for a range of hours. An example of this is approximately $4500 for 12-18 hours of credit.

Room and Board

Room and board costs are often factored into tuition. Some schools require freshmen to live on campus. This is an expense that will be incorporated into the tuition fees. Students at other schools may opt to live off campus. Apartments and vehicles are not a part of the cost of tuition. They are, however, additional costs for families to consider when preparing for higher education.

Dining Options

There are a number of schools that require freshmen to have a specific meal plan. Most universities have a choice of plans for students and their parents to choose from. These are dining locations situated conveniently on-campus. As you survey the cost of tuition per school, you may find that dining options are included here.

There’s no secret that tuition usually includes more than families consider. This is one of the reasons for them to prepare ahead of time for their children’s education. It doesn’t matter, whether college is a year or two away. The more prepared you are, the easier the transition will be for parents and students.

Make Smart School Selections to Save

It is important for parents and children to work together when it comes to selecting a college. There are a number of factors that influence this choice. Parents often what to find a school that offers a quality education at a reasonable cost. Students may be more concerned with finding a college or university that offers a specific type of program.

They may even want to choose a school because of where classmates are going. Compromise is essential when selecting an institution of higher learning. This is true whether tuition is being paid by parents or through financial aid. Researching individual schools is a part of making this decision. It is also a good way to save money while finding a good college.

Local Educational Opportunities

The most economic option for earning a degree may be in your local area. This ultimately depends on what city you live in. There are schools in many areas that provide students with ways to save on their college education. High school guidance counselors are often a good resource for this information. Even colleges that are within a short distance from home can be a viable opportunity.

Scholarships and Grants

Scholarships and grants can open many doors for students. These can provide for an education within the state that they live in. In some instances, these resources allow students to travel away for their education. Applying for scholarships and grants is very important. Juniors and seniors in high school should begin finding these opportunities. Eligibility is generally a part of this process and is essential to qualifying.

Affordable Tuition & Board

Making a list of certain schools that interest you is a great way to make a selection. While you are listing these schools, you should also look at the costs associated with each institution. Those that have the most affordable tuition, room and board, and other essentials are good candidates. These schools must also offer degree programs that fit students’ goals.

An economical education has a host of benefits. This means that they can be paid for with little or no concern. Parents and students working together can find institutions that fit into this category. Taking advantage of opportunities that are available to them, students can acquire an excellent education and save at the same time.

Financial Aid 101

While it is generally considered the responsibility of the family to pay for college, most all students have need for assistance and will receive some type of financial aid upon acceptance to any college or university regardless of a family's economic standing.  The process may seem over-whelming and difficult but a few tips can help ease the tension of organizing documents, completing forms, waiting, choosing and responding.

Every student that wants financial aid must complete a Free Application for Federal Student Aid (FAFSA) online.  Some private or larger public schools may also require the CSS Profile form, which could include school-specific questions.  These applications help schools determine the amount of money that they feel the family can contribute toward costs.  This is called the Expected Family Contribution (EFC), but is not the actual figure to be paid.

Once the FAFSA/CSS Profile is processed, students will receive a confirmation that the information has been disseminated to each school listed on the forms.  Schools will then start to process applications once academic acceptance has been made.  Next, students receive correspondence notifying them of various awards.

There are several types of financial aid that can potentially appear on the Award Letter.  Gift aid includes grants and scholarships that are based on socio-economic status and do not have to be repaid.  Merit-based scholarships consider the student's resume and academic record and, generally, do not have to be repaid.  Federal loans are just that, but are often attractive to students and parents based on low interest rates and no credit checks.  Private loans may be offered but are not advised.

One tip is to request tax documents as soon after the New Year as possible.  They will be needed to accurately complete the applications.  If schools require them completed earlier, use the closest estimates possible and expect adjustments to the awards when the exact figures are used.

After students are notified of awards for each school, they can determine how what they are being offered in financial aid and what their family can actually contribute compares to the actual cost of attending each school.  This will allow each student and family to choose the best fit both academically and financially.

Affording College

For those looking at post-secondary education, the costs associated with a college degree can be staggering. Total student debt for all American college students is estimated at $1 trillion (source: CSNBC), while the average cost of a 4-year college program is over $23,000. With the cost of education on the rise, understanding the financial options available can help ease the burden of a college education on both students and their families.

529s

Registered educational savings plans can help to afford college expenses. Money can be added at any time, tax-free. While these savings plans are best used to incrementally set aside money as the student grows up, they can be started at any time as long as the student it’s intended for is under the age of 18.

Scholarships

There are several types of scholarships which may be available to your student. Many colleges offer competitive entrance scholarships as a way to attract the best and brightest. Students with higher high school academic achievements may be eligible for larger scholarships. If your student is involved in sports, look for available athletic scholarships. There are also many private scholarships and grants associated with specific colleges which have been set up by alumni. Be sure to check out what awards may exist for upper-level college students- some internal awards are only available to students entering their final year of college.

Financial Aid

A college or student loan works just like any other bank loan. Generally student loans are offered with a lower rate of interest for the time the student is in college, although loan scheduling and details will depend on the financial institution. Federal loans are also available to both students and parents, and are a highly common method of financing college educations.

Student Employment

Student employment is another financial option available to support education. Students generally find jobs during the summer months between years, but many are choosing to balance their studies with part-time work during the school term. Student employment can be a great way to make some much-needed cash, as well as provide valuable work experience. Many colleges coordinate paid co-op or internship opportunities, and some colleges offer work-study programs which provides on-campus jobs to students. Exploring employment options or part-time study may find other ways to pay for college without sinking into debt.

Politics and Their Effect on College Planning

Many of the contributing factors that relate to the type of education our children receive are outside of our control. This is not such a monumental statement that you aren't aware of it, but many things can change quickly in the economical situation we find ourselves in presently.

College funding through grants may be entirely different for the next semester following the critical maneuvers taking place in the Senate and House of Representatives at this time. Two conflicting thoughts are about to reach an impasse or a resolution, which will make a huge impact on what funds will be available by the end of the year.

The Democratic concept is that the debt ceiling must be raised and at the same time taxes must be increased to those who are able to pay them. Republicans believe that taxes cannot be levied at this point and do not want to raise the debt ceiling. Whether you follow one line of thinking or the other has little to do with what will eventually happen.

It seems reasonable that spending will have to be cut if any of the numbers will work. That means that funding for only the basic and necessary expenditures can be expected. The problem with that is no one seems to understand what is necessary and what isn't. While one party might consider the financial aid promises made to all the college students in the country a necessary expense, another might not.

One thing that has always proven true in pressure situations is that some decisions will be the wrong ones. Politicians realize that the only way to keep doing their jobs is to make good on promises, and for that reason, they will fight to keep even the programs of least benefit when they were the authors of them.

Anyone who has banked on college grant money to keep their students in school should be looking for backup plans in the event that the channels all dry up. Checking into the availability of student loans would be a good plan now, before so many others look to that option, too.

It may be the 11th hour in the financial situation for the nation, but there is always hope that a resolution might be hammered out that will serve part of the desires of both parties and the educational needs of our college students.

Should Your College Student Work During Freshman Year?

There have always been differing opinions on whether college freshmen should work while they attend school. One view is that college courses are going to be much harder than what a teenager has experienced before. For that reason, most every spare moment will need to be spent on studying in order to achieve acceptable grades.

While the adjustment is hard on most freshmen students in the beginning, it is another contention that after settling into college life, students are not going to spend all their time studying whether they work or not. Learning the responsibility of work builds character and a work ethic, and both are necessary for successful survival at the next level of existence.

Some parents also feel that working provides students with the opportunity to earn their own income for spending (and hopefully saving, too). Many parents are struggling enough just to manage tuition, books, and other college costs. So a part time job to cover some of the expense provides some relief for the parents.

Although there is validity to both "schools" of thought, a great more has to do with the child than the preconceived notions of the parents. Some freshmen hold down jobs and still do well in school, and some even enjoy working part time. But not every student will perform the same way; there are many factors involved that are specific to each student.

The first semester of college is the most important, and if it is not an extreme financial hardship, it is usually better that a freshman doesn't work. Being new to school and needing to study more is much of a job in itself. Depending on how well the child does with those first classes, working some for spending money might be something to do after freshman year.

Some fields of study are more demanding than others, and some students take on more credit hour load than others do. If things get really hard really fast, some students will simply give up and decide it's easier to go home than to try to make a go of higher education. Sometimes postponing work until at least second semester may make a real difference in whether a student performs well enough during their first attempt at college classes.

After putting out a large amount of money to enroll a student in college, it is much better to give all the support necessary so that your student is not one of those who never sees a 4th year in college, possibly not even a 2nd or 3rd. Even if a child is old enough to make their own decisions, that doesn't mean that they aren't still under the parents' care in many regards.

Working while attending college does build character, but it should not be a preventative in a student receiving their education. Every student is different, and the first weeks at college may require some adjustments so that your child acclimates and focuses on the primary reason why they are there: to receive an education. If work can fit into the mix and not disrupt studies, then work/study is a positive combination.

The New Parent’s Guide to 529 Plans

Congratulations! You’re either expecting your new bundle of joy in the upcoming months, or you’ve recently had a new addition to your family. In either case, chances are you’ve thought of your child’s future and dreamt of hugging them in their cap and gown as they graduate from a top level college.

College planning often begins at birth for families, when the pressures of time and interest rates can be applied to maximize how much the family can save for a future college education. Whether you yourself went to college, or you simply recognize that you want the opportunity to be available to your child, savings started early are a significant boost.

The most common vehicle for college savings are 529 plans. Simply put, 529 plans are the federal government’s way of allowing you to save your money and allow it to grow tax-free for your child’s education, and ensuring that funds that accumulate over time are tax-free when withdrawn. Best of all, most states (including North Carolina) give you an annual tax credit which would reduce your taxes owing when you make regular contributions.

How Do We Enroll?

Simply contacting your local bank or financial advisor is likely to put you on the right path, but in North Carolina, you can also consider talking to The College Foundation of North Carolina at http://www.cfnc.org/index.jsp

Who Can Enroll?

Any relative of a child can enroll on their behalf. Often times, grandparents opt to enroll their new grandkids in 529 plans, helping the parents with long-term savings needs and also drawing their own tax benefits on retirement incomes.

What Can 529 Savings Be Used For?

529 plans are intended to be used for all college expenses, not simply tuition. The list of eligible Qualified Higher Education Expenses includes tuition, fees, books, room and board, and supplies for school.

Beware Of….

There are two things that 529 contributors should be wary of:

Fees-Often banks and financial advisors will charge a premium for managing your educational investment fund. Be sure to inquire about fees before signing with any advisor.

Penalties-If your child doesn't go to college (or, best-case scenario- he/she receives a full scholarship) you may face penalties for withdrawing money for non-educational uses from the 529 plan, including a 10% premium and having to pay taxes on the money you withdraw. However, 529 funds are transferable-if you have a niece or nephew who can benefit, you may be able to transfer the fund to them tax-free.

529 plans are a very cost-effective and simple way for parents to prepare for their child's education. The earlier you start, the better you and your child will be prepared. And on 12 or years or so, I'll forward to helping him or her with their college applications needs.

Considering Financial Aid Awards

Early April marks the arrival of financial aid award letters from colleges across the US. You may be happy to see that your student is eligible for assistance with college expenses, but the complexity of financial aid awards often leaves parents scratching their heads to understand their options. Here are some simple steps to help you make decisions about your financial aid options:

Understand the letter thoroughly. Although it’s tempting to simply skip to the end of your letter to see the theoretical maximum that your student can receive, be sure to read the details of your financial aid award. Often portions or the entirety of the amount may be in the form of loans which must be paid back after graduation.

Consider all the costs. While most colleges provide an estimate or guideline for average student costs (including tuition, books, living expenses, etc), that average may not apply to your student. The only way to be sure is to prepare a budget for your student, including expenses that may have been left out, such as entertainment, travel expenses to get home, athletic fees, or more extensive reading list purchases.

Be upfront about financial changes. If things have changed for your family since you first applied for your financial aid (such as a job-loss or illness) which may affect your overall family income, be sure to communicate the changes to your Financial Aid officer and ask for a review of what you may be eligible for. Often families discover when they complete their taxes that their earnings were lower than they had expected the previous year, which may make them eligible for greater financial awards.

Pick and choose. Financial aid awards are frequently a combination of grants, scholarships and loans. Consider whether the grants and scholarships are sufficient for your needs and if you can say no to loans, thus avoiding graduating with debt.

One of the Most Difficult Parts of College - Estimating Cost

It's difficult for parents to sit down with a calculator and come up with an accurate budget for a child's college education.  If you don't think so, prepare a budget for your life for the next four years and see how accurate it is afterwards.

Most colleges will give you a good indication of what current costs will translate into a reasonable estimate for a semester, and you can adjust that for cost of living increases for four complete years.

That is a quick answer, but as you probably already know, higher education generally costs more than we expect because of all the flexible expenditures that are involved when a young adult stays away from home.  If you are an accountant, you may have a much better handle on what to expect, but for most of us, it is at best an educated guess.

Estimating 101

Take what you know as far as course of study, room and board, food, clothing, books, and tuition.  Then add any relevant fees such as clubs, fraternities or sororities, and transportation.  Add another 10% for all the contingencies you can't foresee after you have included everything that can be a reasonable expense.

If your student is still in high school, add about 7% to the estimated semester cost for every year it will be before he or she starts to college.  This is a good rule of thumb amount for the increase in cost of living.

Basing your estimate on a semester at a time, begin with your adjusted semester cost for only the first one, and add 5% to the total semester cost for the next one, and on to the next, building up so each one is more than the previous.  Do this for the duration of the four years.

Fine Tuning the Overall Expense

Don't let the total cost frighten you out of your wits.  This should be a fair estimate of the worst case scenario if you didn't attempt to find savings up front.  When you seek financial aid or scholarships, you can trim the numbers down considerably on out of pocket costs.

When looking for cost savings for college, begin with scholarships and grants first.  If you are to pursue this route, you must start your quest relatively early and at least by the beginning of the senior year of high school.  If your child is not ready to commit to a course of study, there will be some avenues you may not be able to pursue, but most grants and scholarships are based on academic achievements more so than the major area of study.

Your child should be impressed with the importance of staying focused to get the best grades possible and improve the opportunities of college funding at the high school level.