Top 25 Recruiter Picks

Did you notice the article in the Wall Street Journal yesterday regarding the ranking top 25 colleges for recruiter picks?
http://online.wsj.com/article/SB10001424052748704554104575435563989873060.html?freeRegConfirmButton.x=21&freeRegConfirmButton.y=11

Important College Information on MSNBC's Today Show

http://today.msnbc.msn.com/id/38733522/ns/today-parenting/

Great college statistics: http://www.usnews.com/

Quotes from the video:

What's the criteria you use to rank schools?

Alumni giving rates, graduation rates, admission rates and we divided that by the net price that students actually paid, not the sticker price on the website, it turns out yale university came out on top, even though they have a sticker price of $53,000, that's because they're so generous with financial aid that 54% of students don't pay that big sticker price , they get financial aid and the average price paid by that 54% was about $14,000.

Harvard is on the list, the initial price to go to Harvard is about $55,000, that's the sticker price.

Schools like Harvard , Princeton and Yale are starting to charge on a sliding scale. so for example at Harvard , if you come from a family that earns less than $60,000, you're going to get basically a full ride. If you come from a family that earns between $60,000 and 180,000, Harvard promises they won't charge you more than 10% of your family's income. You get a Harvard education, that means room, books, board, travel. That's a great value.

Paying for College

Here are a few notes from an article by Carmen Wong Ulrich titled "Smart Ways to Pay for College" ...

Freshmen headed to school this month face bills up to $55,000 a year, and the cost of a four-year degree for a baby born today could reach $500,000.

529 Plan Pros: There's no annual contribution limit. Accounts can hold up to $380k (the cap varies by state). Grandparents, aunts, uncles, even family friends can chip in. If you kids decide to skip college, you can transfer the 529s to other college-bound relatives without tax penalties.

529 Plan Cons: Risk. By the time your child is a freshman in high school, less than 70% of your savings chould be in stocks. Also, if the interest you earn isn't used for college expenses, you have to pay penalties and taxes.

Coverdell ESAs - Parents can invest up to $2k in these education savings accounts (ESAs) each year. The money grows tax-free until you withdraw it to pay for school expenses.

Coverdell ESA Pros: Coverdells tend to have lower fees and more investment options than 529 plans. The funds may also be used to pay for K-12 expenses like school supplies, uniforms, or tuition.

Coverdall ESA Cons: Only couples earning less than $220k combines or single parents earning less than $110k are eligible. And unless Congress votes before January to extend Coverdells' current benefits, the contribution limit will drop to $500 per year and K-12 expenses will no longer be covered. (If that happens and you have a Coverdell, you can roll over the funds into a 529 plan without incurring a penalty.)

Roth IRAs - Although Roth IRAs are usually intended for retirement, you can use the funds without penalty before age 59 1/2 to pay for your child's college tuition, housing, books, or other expenses. You can invest up to $5000 a year (or $6000 if your 50 or older.)

Roth IRA Pros: Like a 529 plan, your savings grow tax-free. Unlike a 529 plan, the funds can pay for your retirement, if you choose.

Roth IRA Cons: Though it may be tempting to raid your retirement fund to pay your child's tuition, resist this urge. Consder using your Roth IRA for college only if you already have a sizable retirement fund elsewhere. As much as you may want to help your kids, you'll assist them more by taking care of yourself first. Remember, they have years to pay off student loans - and if you don't save enough for retirement, they'll have to take care of you. Another drawback: For 2010, individuals must earn less than $120k to qualify; married couples filing jointly must earn less than $177k.

Savings Accounts, Money Market, CDs & Bonds - flexibility, low risk, no penalties; however, with low risk comes low reward - and with the exception of some tax-exempt bonds and money market funds, you'll pay income toaxes on your earnings.

Great Article by Kathy Kristof - A Los Angeles Times Columnist

Here's a few summaries from Los Angeles Times columnist - Kathy Kristof:

About 19 million heading off to college next month.

College is not a one-time expense - "One of my friends likens it to buying a luxury car, then driving it off a cliff ... repeat that four times ... then you can imagine what it's like to pay for college."

Before you write your first tuition check, check on the school's performance, too.

How many people who start at that school continue for a second year?
How many graduate in four years?
What about six?
Paying tuition to a school with rotten retention and graduation statistics is probably a huge waste of time.

The National Center for Education Statistics offers a great Web-based tool called College Navigator that give the essential statistics.

• Get credit for AP classes - take the tests, it's worth it at about $86 per subject; that's a fraction of the cost of even a single unit at a public or private university.
• Take summer classes at the community college in your hometown. (Make sure you pick courses that can be transferred)
• Rent or borrow books
• Work for food - a student can work for a restaurant or school cafeteria and probably get either free or discounted food. Remember to pack a lunch - as it's far less expensive.
• Pay as you go - Thousands of schools allow parents to spread their payments out without paying interest.
• Choose you loans wisely - there are two types - federally offered loans and those offered by private lenders. If you must borrow, seek federally guaranteed student loans, which have a maximum interest rate of 6.8%. Most private loans are variable. This could double the cost of your education.

Waiting List for UC & CSU Colleges

"The UC system recieved a record number of applications this year: 134,029. The same is true at CSU, where more than 609,000 students applied by November 30 - a record for the system" - according to Laurel Rosenhall - Sacramento Bee article dated April 3, 2010.

You can be accepted at one UC college, but wait-listed at others.

Here's the guide:

1. Inform the school by April 15 if you would like to be on the waiting list. Please note that an essay may be required.
2. Do not assume you will get in from the waiting list. Choose a school that has accepted you and put down the necessary deposit by May 1st.
3. There is no cost to be on a UC waiting list, but if you get in and choose to go there, you will lose the deposit put down at the school you originally agreed to attend.
4. Experts suggest students wait-listed at private colleges submit additional essays, letters of recommendation and requests for interviews.

At CSU, roughly 8,000 applicants have been wait-listed statewide.

Students Look Beyond State

Another college enrollment article in the Sacramento Bee by Laurel Rosenhall citing that the competition is going to be cutthroat. The number of high school grads is soaring while both the University of California and California State are cutting back the number of freshmen they will admit.

Laurel cites several reasons:

1. weak economy
2. budget cuts causing universities to reduce enrollment
3. poor job market for high school graduates causing more grads to turn to college

Students are encouraged to consider applying out of state and to private colleges. The deadline for both UC and State is November 30th. Not every student will get the college they want, but might be offered an alternative such as UC Merced.

The colleges are going to raise the cost by approximately 32% while reducing enrollments.

Here's the list of tips:

1. UC Colleges - apply to many of the 10
2. State Colleges - apply to the ones closest to home to increase the chances of acceptance
3. Consider out of state colleges
4. Consider private colleges - application deadlines vary between Jan 15th and March 1st

CSU Applications Hit Record

Did you see the article in the Sacramento Bee by Laurel Rosenhall? Believe it, a record number of students are applying and students need to get their applications in by the end of the month. There's been a 53% increase compared to the same time last year. The number of transfer students has doubled.

Cited reasons:

1. the economy
2. less expensive tuition
3. fewer students accepted
4. publicity

CSU is cutting enrollment by 40,000 students over the next 3 years because of cut's in the budget.

"... we cannot educate more students with $564 million less"

All of this points to the fact that the colleges will be more selective, gpa matters, preparation matters. So remember ... November 30 is the deadline.