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  • collegepete 6:08 pm on July 28, 2011 Permalink | Reply
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    A School For Everyone: The College Tour Recap 

    After a long and very hot week touring Notheast colleges, I am thrilled that this message is coming to you from my cozy, air-conditioned office in Weston.  Jill and I toured 4 colleges in 4 days (Cornell, Ithaca College, Skidmore, and Vassar), and yes, we were pretty tired at the end of it.  But it was worth it.  There is simply no substitute to being there, and after meeting with Admissions and Business officers,  I have a few very important pieces of information to share with you regarding how you should be planning for college.

    • There is a great college for every student, and if you map out your admissions and funding strategy together and before your child begins applying, you will greatly improve the odds that s/he will pick and get accepted to schools that you will be able to afford.  Discounting is not a random exercise and it is no longer an afterthought.   Colleges strategically and intentionally use both need-based Aid and merit-based (or non-need based) aid   — though certainly not in equal measure — to induce students to attend their institution.  Without a doubt, the largest source of free money is in need-based aid (more than $150 billion worth – yes, I said billion).  It is a legitimate source of college funding for forgotten middle class families, and choosing schools that offer substantial need-based grants should be a critical component of your admissions strategy.
    • More so than ever, networking and the ‘Little Things’  can move the needle on admittance and funding offers.  Despite technology (or pehabs because of it), standing out today often requires showing up. Get out there and visit colleges!  Schools want to see you and want to know that you want to go there.  Nothing demonstrates interest like your visit to their campus.
    • Students with specialized interests such as Art or Drama should consider liberal arts schools that offer majors or minors in the specialized field.  We saw amazing theater and art programs at places like Skidmore, Ithaca, and Vassar.  At these schools and many like them, you’ll find great students, great professors, small classrooms, and a diverse student body with a wide mix of interests.  Oh, and they are MUCH more generous with financial assistance than any specialty school.
    • Just because a school has a need-aware admissions policy does not mean that it isn’t generous.  A school like Skidmore does not hide the fact that they are need-aware, but if you get admitted then they guarantee they will meet 100% of demonstrated need.  So for the students who do get in, they are awarded handsomely.  Many other schools follow the same principle.
    • And though I hate to admit it, there can be an admissions advantage to applying early decision.  This was confirmed by the officers I met with and by the numbers. However, don’t let your student apply Early Decision unless you are sure you can pay the bill.   If you apply early decision, you are ‘locked in’ and bound to attend that college – you’ll have zero leverage when seeking a tuition discount.  The student, the parents, and the high school guidance counselor must sign a contract and confirm that the Early Decision rules are understood.

    I’ll be elaborating on these and other conclusions, as well as sharing money-saving tips to help families pay the college bill, during my upcoming LIVE webinar on August 9.

    Topics we’ll cover include:

    • Why now EVERYONE, regardless of income, should apply for financial aid without exception
    • Accessing the precious and disappearing grant and scholarship dollars
    • Why it takes students 5+ years, on average, to graduate from college and how you can buck this trend
    • Dollars and Sense – how to successfully overlap your child’s admissions strategy with your ability to pay
    • How some assets can penalize you 5x, whereas other assets don’t count at all
    • How to get admissions officers to fall in love with your student

    If you are the parent of a 10th, 11th, or 12th grader, and you are stressed about the entire college process, from admissions to financing, then you should tune in to this LIVE webinar.  If you are too busy for the webinar, you can catch me in person on August 25 down in Pinecrest.  Click here to register for either event.

    Best,

    Peter

     

  • collegepete 3:04 pm on July 13, 2011 Permalink | Reply
    Tags: , , , , , , Pell Grant, , , ,   

    The End of Subsidized Loans and Grants? 

    How’s this for irony?  Apparently, the same lawmakers engaged in negotiations to reduce our national debt are seriously considering raising that (the debt load) of our most financially vulnerable population –  students (college debt already exceeds consumer debt and will likely reach $1 trillion this year).  Even more ironic, this comes at a time when more than 50% of new jobs created (or saved) will require at least a college degreee –  and at a time when our economy needs more college graduates than ever to stay competitive.

    While there’s no certainty that these proposals will be part of the final debt ceiling compromise, in a report yesterday by popular website The Daily Beast, Congress and the White House both put forward new plans that would slash student aid programs, including the elimination of student loan subsidies and additional cuts to the Pell Grant.  The proposals, which would make students responsible for paying the interest their loans accrue while they’re still enrolled in college, will save the government about $40 billion over the next 10 years (a relative fraction of the total multi-trillion dollar burden), but can cost our kids as much as $14,000 more than they’re currently paying (that’s a lot more to a middle class college grad).

    My take:  We’re essentially legislating the legal transfer of the federal government’s debt to our middle class kids — which in and of itself seems abhorent, but what’s more concerning to me, is that these changes are being considered for the next federal budget (for 2012), which leaves forgotten middle class parents with high school students or kids already in college precious little time to prepare!

    But  I’m a glass half full guy!

    So, while 2011 was officially the most difficult year for college applicants ever, with nearly every school seeing an uptick in the sheer number of applicants, it was also one of the most generous on record.   The discount rate — the difference between the college sticker prices and what students actually pay,  after accounting for financial aid and other non-need inducements — reached an all-time high of 42.4%!   In fact, 88% of first-year, full-time students received some sort of tuition discount from the institution they were attending.

    Higher education is a business – a big business.   There are more than $150 billion worth of potential inducements available to offset the cost of college.  Now more than ever, you need to re-stock the odds in your favor by arming yourself with the facts, and learning the rules of today’s college business.  If you do so, and act accordingly, you will be in a position to send your child to the college s/he wants at a minimized cost that ensures that no one is burdened with the debilitating downward cycle of student debt.

    On August 9th, I’m holding my first ever live Webinar where I’ll be taking your questions  and discussing exactly how these legislative and business changes will affect your college admissions and funding plans.  During the program, I’ll be going beyond the typical one-size-fits-all, cookie-cutter advice you may have received, and I’ll teach you what’s really happening with college admissions and funding today.

    Keep in mind that once again colleges will see a record number of applicants this fall, all of whom will be vying for the same slots, precious merit scholarships and disappearing post-recession grants.  Where your child goes to school and equally important, what price they will pay for it —  will not just affect four years of their life, but potentially their next 40 years (or more).

    Want to tip the scales in your favor by understanding exactly how to find, get accepted to and get a discount for college, then you should register for this event.   I have a limited number of lines reserved, so advance registration is a must.

    Best,

    Peter

    p.s. The 5th Annual ‘College Pete College Tour’ officially kicks off on Monday, July 18th.  I’ll be meeting with Admissions Directors and Financial Aid officers at colleges around the country… and blogging about what secrets they share.  Check out my Facebook page for my on-site video blogs.  First stop:  Ithaca, NY.

     

  • collegepete 10:16 am on July 1, 2011 Permalink | Reply
    Tags: , , , , , , , , , , , , , Pell Grant, , , ,   

    Stanford’s Top 20 

    Summer is a great time to get working on that college essay.  Students often have more difficulty with the essay than any other part of the college application process, including the SAT.  Sure, most student’s hate taking the SAT almost as much as the rest of America hates the Miami Heat, but after 3 hours and 45 minutes the SAT is over, done with, and probably behind you.  The essay, on the other hand, has no time limit.  It’s never really finished, and even when you think it’s finished, there is always another tweak you can make here or there to marginally improve it.  And while the SAT (or its fraternal twin the ACT) is one of the primary components of a student’s application, it’s the Essay that actually provides the ‘texture’ and context that can sway a borderline candidate from a ‘maybe’ to a ‘yes’!

    The most important part of the essay might just be the opening sentence.  Think about it.  Admissions officers quite literally read thousands of essays, so the opening line had better grab, melt resistance and create enough interest to keep them reading.  That’s a very tall order for one sentence!

    Stanford’s admissions office was recently asked about their favorite opening lines.  Here are my Fave 5 from that list:

    When I was in eighth grade I couldn’t read.

    Cancer tried to defeat me, and it failed.

    I have old hands.

    Some fathers might disapprove of their children handling noxious chemicals in the garage.

    On a hot Hollywood evening, I sat on a bike, sweltering in a winter coat and furry boots.
    These lines get your attention without being ‘gimmicky.’  They keep you interested, and they make you guess and wonder what comes next. By themselves they evoke wonder and passion, surprise and suspense, and we can only assume that they introduce a compelling story. And that’s what makes for an interesting essay – telling a good story.

    There are 17 other openers in the Stanford survey (and tons more from my previous students), all of which I’ll share at my 4th Annual ‘Thick Envelope Magic’ Admissions and Application Boot Camp on July 9.  This day-long event is not just about the opening line of the admissions essay, though an entire class certainly could be.  ‘Thick Envelope’ also covers everything a rising 12th grader needs to know, ask for, do and complete to apply and gain admissions to a great college.  Students who attend will be able to complete (and submit) their college applications before school starts.

    This event is open exclusively to rising 12th graders.  Past attendees gave it rave reviews, and the curriculum has been updated to reflect all of the changes to the process (e.g.,, the essay now has a word limit), and  is even better this year.  If your student is a rising 12th grader and is home for the summer, there is no excuse to miss this event.  You’ll want to register them by clicking here.

    Most college applications can be completed as early as August 1, including the University of Florida.  Give your student a head start and an edge on what can be a stressful application process.  My July event has 14 registered students, so I have room for 6 more.  I look forward to seeing your child there.

     

  • collegepete 1:34 pm on June 15, 2011 Permalink | Reply
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    Major Legislative Changes To Bright Futures’ Requirements 

    First the changes (then my commentary). 

    1. All students who wish to qualify for a Bright Futures Scholarship MUST complete a Free Application for Federal Student Aid, also known as FAFSA, even if they aren’t seeking federal financial aid.
    2. Starting with the 2011-12 high school year, graduates will be required to do more community service hours.  To qualify for a Florida Academic Scholars, you will need 100 hours instead of 75 hours, Florida Medallion Scholars will need 75 hours, and Florida Gold Seal Vocational Scholars will need 30 hours.
    3. Test scores will also change for Florida Medallion Scholars who graduate in the 2013-14 school year. Requirements have gone from 1050 on the SAT to 1170, and from 23 to 26 on the ACT

    You can read more about the new legislative requirements at the official Bright Futures Website.

    Regarding the changes to Bright Futures, my position has been and remains as follows:

    Bright Futures and Florida Pre-paid do not in and of themselves constitute a sound college strategy.  First, admissions to a quality FL State College is not guaranteed.  In fact, college acceptance rates this past year for in-state students were the lowest ever… and you can expect that trend to continue as State University Officials look to out-of-state students to boost their total net tuition revenue.  Second, both programs represent only a very small portion of the financial ‘inducements’ available to students – and with proper and integrated planning – you may find that so-called pricier private options are actually far less expensive and offer better academic preparation than our in-state system.  And finally, no matter which school your child ends up attending, the government will expect you to pay your fair share towards the cost of college.  They call this your Expected Family Contribution (EFC) and it is derived from your responses on the Free Application for Federal Student Aid (FAFSA).  It is the minimum amount of money any school will expect you to pay.  AND most importantly, it is a number that you can ‘manage’ with proper and ADVANCE planning. 

    If you haven’t done a FAFSA – and still expect your child to qualify for a Bright Futures award this school year (or in the future), you should attend my workshop on June 23rd where I will teach you the rules, loopholes, and landmines behind the Title IV Financial Aid Regulations (that are used to determine your EFC).  Know these rules, you win.  Stay in the dark and you could sacrifice thousands of dollars in Bright Futures, not to mention the $150b available in Institutional scholarships and Federal grants that you would have otherwise qualified for.

    I will also show you how to help your child pick other schools that meet his or her academic and social aspirations, AND have the ability to offer you a significant discount.  The difference in the pricing and discounting among similar schools is often substantial and should be the chief driver of your admissions strategy. 

    Anyone who has college-bound or college students at home should attend this class.

    Best Wishes,

    Peter

     

  • collegepete 7:12 pm on April 24, 2011 Permalink | Reply
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    Why College Should Cost You Less Today Than In 1957 

    This is the second installment in a four-part series on Effective College Strategies for Today’s ‘Middle Class.’   While I know that right now college may feel like an impossible situation, I hope that this series will show you that it’s not!  

    Last week I wrote about a whole bunch of bad news.  First I told you about a father (not a client) who had just broken his daughter’s heart by telling her (after she had already gotten herself admitted) that her ‘dream college’ wasn’t going to be in the cards financially.  As expected, she wasn’t taking the news well, and he was enraged and raging.  

    Let’s just say this was not the first time I’ve heard this type of after-the-fact shock and rage-against-the-system anger from otherwise intelligent, hard-working, professional middle-class parents… which is why I felt compelled to tell you about Dad # 2 (the one who had blown me off later in the week), and whom I’m pretty sure will be seeing the same look of disappointment on his son’s face and spewing the same vitriol at whomever will listen in a few years time.

    And yeah, I was a bit annoyed by both Dads (but especially Dad #2). 

    And that’s when I introduced Dad #3, my own Dad.  He enrolled in Amherst College in 1957, the year of Sputnik, and he recently returned from his 50 year reunion and shared with me the tuition bill that his parents received in the summer of ’57.  The total cost of attendance at Amherst for one year back in 1957 was $1,532 (click here to see the bill), which is about $12,000 in today’s dollars.  That seems like a small pittance for today’s parents who are looking at published prices in excess of 50 Large ($56,710.00 at Amherst).  But in reality…

    Amherst (and other selective colleges) actually cost MORE back then, relative to average income, than they do today.

    This is not my opinion.  It is a fact, and it is not unique to Amherst.

    You see, the average American family earned $5,000 in 1957, according to the US Census.  There was no financial aid or merit system back then, only the GI bill.  So, based on the averages, in 1957, one year at Amherst would eat up 31% of the average American family’s income. 

    Today, the average American family income is $61,265.  With financial aid and other incentives, a year at Amherst should cost that family only $8,298, or 14% of income. (source: College Board’s Net Cost Calculator ).

    If you earn $100,000, then Amherst should cost you about 19% of income. 

    AGI of $150,000? – you should be out-of-pocket about 23% of your income maximum. 

    So while the media and others like Dad #1 are busy railing about out-of-control and inflated college prices, they are missing the much bigger picture.  College price tags (those that are published and widely touted) are largely meaningless.  They are merely list prices set by the colleges (with the assistance of highly paid marketing consultants) to inflate their prestige, rankings, admit ratios, and yes, even their bond ratings.  If it costs more (at least on paper), it must be better, right? 

    But there’s a game changer that wasn’t around in 1957 or in 1987, for that matter.  Today, there is more than $150 billion in aid, scholarships and ‘discounts’ that each school strategically distributes to induce desirable applicants to enroll.  So, while the list prices of colleges may be rising disproportionate to inflation, so too are the discounts.    

    In fact, in 2011, unlike in 1957, two-thirds of college students will receive scholarships and grants that discount the published list price considerably.  This discounting is strategic, it is business, and it is intentional on the part of the schools.  Think about it: if a college can appear selective (read: pricey) and therefore prestigious, and then get to offer generous price incentives to boot; well then, they are not only better than the next guy, but they deliver more value as well. 

    I mean, who doesn’t like a good bargain?  It’s brilliant marketing, but more importantly, it presents you with an opportunity.

    College is a capitalist enterprise, and a very big one at that.  And like most large enterprises, they try to set the rules in their favor.  But that doesn’t mean that you can’t manage them to yours. When the President announces ‘spending reductions in the tax code’  (as he did last week), do you sit back and wait until you’re hit with the bill in April, or do you call your CPA and find out how to ‘manage’ the change?  

    Well then, consider this my announcement of a ’spending reduction in your college bill’ and your welcome to the new college reality. If you’re savvy (and if you’re reading this then I believe that you are), you will learn about the new rules of the college game, and you will alter your tactics to give yourself an advantage!

    If you’re the parent of a college-bound child, the question you should be asking  is not how much a particular school ‘costs’, but how much of that cost you will actually bear.  That’s what Higher Ed insiders call the Net price, and that’s what most of us should be paying!  And despite whatever else you’ve read or heard, that’s how you build an affordable college game plan in 2011. 

    For Dad #1 it’s too late (this year).  And for Dad #2 it might be, based on his apathy.  And that’s because despite all of the evidence, there remains a very real disconnect between how a family should shop for college today and how they actually do so.  Please don’t let this become your family.

    At my college planning workshops, I go over the Net College Cost Calculators and specific strategies and steps that you can take to help your child select and get admitted to the best possible college for them, at a discounted NET price that you can afford.  I’ll be conducting my last one of the school year on May 3 in Weston.  Click here to register and feel free to forward to a friend or neighbor with a high-school age student.  They’ll thank you for it. 

    Best,
    Peter

    P.S. In next week’s installment, we’ll take an uncensored look at what’s driving the recent uptick in applicants, a.k.a. ‘application inflation’, yield, and how to look beyond the obvious when researching colleges.  I’ll also be calling out those schools that I believe are using misleading statistics to seduce applicants.  You might be surprised at which schools make my disslist.

     

  • collegepete 1:18 pm on February 1, 2011 Permalink | Reply
    Tags: , , , Pell Grant,   

    Financial Aid Budgets Tighten! 

    It should be more difficult to get financial aid in 2011-12, according to an article from yesterday’s US News & World Report. Colleges have seen their asset portfolios decline in recent years, putting the pinch on financial aid and other university budgets. And the Obama Administration has eliminated the Academic Competitiveness Grant (ACG), a small but helpful grant awarded to first and second year students who are high achievers.

    These are uneasy, strange times. In last week’s State of the Union Address, President Obama stressed the importance of higher education, explaining that 50% of all new jobs will require a college degree. Yet because of our rising national deficit and debt, the administration is moving to eliminate the ACG in order to save about $860 million.

    The good news is that the Pell Grant will remain unchanged, at $5,550 for families in the greatest need. The bad news is that the Pell Grant will remain unchanged, at $5,550 and won’t be increasing. Who knows what next year will bring, but don’t be surprised if they slash the Pell Grant somehow, or make eligibility more difficult.

    More “good” news: Interest rates on subsidized student loans will decline from 4.5% today to 3.4% next year. This is great for students who incur debt, but the better approach would be to avoid debt entirely.

    A college degree is more important than ever. And paying for it is more difficult than ever. That’s why you should attend one of my FREE workshops on the subject.

     

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