Top Five Things to Consider Before You Borrow Student or PLUS Loans

By this time of the year most new college freshmen and their parents have received their financial aid award letter or student aid report. If you’ve saved for college since your child’s birth, earn enough to pay cash for college expenses, or your college student won a number of scholarship, you probably don’t need to borrow money to help pay for college. But, if your child is among the approximately 2/3 of college students who DO borrow to pay for college there are five things you and your student MUST consider before you accept these loans.

1. Only borrow what is NEEDED. Some students only need to bridge a $1,000.00 gap between what they already have in the bank and what they will need to pay for college, but most students will receive an offer of much more than that in loans. Only borrow the minimum amount needed.
2. Always exhaust other sources of income and “free” money first. If your child qualified for federal work-study, they should work at least enough to earn what they qualified for. Even students who do not qualify for work-study can work part-time to help fund their education. Working only eight hours per week at minimum wage is enough to bridge a $1574.00 gap in funding over two, 16-week semesters. Students can also continue to apply for all possible scholarships because even a few small scholarships can make the difference between graduating debt free or not.
3. Do not borrow to pay for lifestyle expenses. I can’t tell you how many times I’ve seen students and parents borrowing thousands each year (currently at 4.66% to 7.21% interest or more) to pay for what are considered lifestyle expenses. These include any unnecessary expenses such as driving a car when other transportation is available, choosing a residence hall, apartment, or meal plan that costs more than the bare minimum, joining a Greek letter organization that the student can’t afford, and traveling for leisure or even study abroad that is not required for the student’s degree completion.
4. Avoid private student loans. Almost any financial aid office at any college will advise you to only borrow federal student loans, then if absolutely necessary, federal PLUS loans. Private loans are almost always a bad choice to finance a college education because the borrower does not have the various repayment options available from federal loans. If you reach the point where they are the only option, the student needs to seriously re-evaluate his or her choice of college and either take a gap year to earn more money, attend college part-time, or seek out a less expensive college. Chances are good that there is a less expensive alternative within commuting distance.
5. Use one of the many free, online student loan calculators to estimate future monthly payments. http://www.finaid.org/calculators/loanpayments.phtml  All loans will have to be paid back with interest, so students and parents can use these calculators to estimate what their payments will be and for how long. Pay close attention to the estimated salary needed to pay off the loan, and understand the total amount of interest paid on these loans. Students also need to be realistic when estimating their future salary. They can research average starting salaries at http://www.bls.gov/ooh/ , but keep in mind these are average salaries.

What to Expect During Freshman Orientation and Enrollment: Part 2

Campus involvement opportunities - Orientation programs often invite a number of people to talk with your student about campus involvement. Sometimes these sessions take the form of an activities showcase where a broad range of campus groups set up tables or displays that allow current members of these groups to interact with you and your child or pass out information about their organization. Other times a few offices will talk specifically about the multitude of ways to get involved and then show students how to find clubs to join and what to expect from those clubs.  Either way the goal is the same. To let new students know that college is more than just class time, and being happy and healthy on campus means being involved outside of class.

Safety and emergency information -This is one of the sessions that is often held jointly with parents and students. We know that you are concerned about your child’s safety and even if your child doesn’t tell you, he is too, even if its just because he doesn’t want you to freak out. Campus Safety is vital to the academic mission of the university, because it is extremely difficult to learn in an environment in which you don’t feel safe.

Campus police or security will often give students details about how to stay safe on campus and what to do in an emergency. Advice like locking doors, being aware of one’s surroundings, and securing property are all common tips provided by campus police, and it’s important for students to realize that their actions can play a major role in their own safety. Having this session with parents and students together assures you that your child has received this information as well.

Enrollment - The vast majority of summer orientation programs also include the student’s enrollment in his first semester of classes. These enrollment sessions are usually held for the students alone so they can sit down with an adviser, counselor or peer mentor to select classes and plan a schedule. Keep in mind that a lot has changed since we were in college and had to stand in line for hours to get a schedule that was virtually etched in stone when we left the registrar’s office.  Today, students can easily change class schedules online. This freedom is both a blessing and a curse.

Having the flexibility to change one’s schedule almost daily until classes start is very convenient, but please remind your child that just because he can change his schedule, doesn’t mean that he should.  Students have been known to accidentally enroll in senior or graduate level classes because the names of the classes were similar to the ones in which they were enrolled.  When this happens it is not uncommon for the class to be automatically dropped from the schedule, leaving the student short on classes and credit hours.

Advisers usually recommend that students can change sections or times of classes as long as they enroll in the same classes they had enrolled in during orientation. So, a student may freely change from the 8:30am section of English Composition I into the 9:30am section of English Composition I, but should avoid changing from English Composition I into World Literature I even though they are both introductory level English classes.  Once he gets into the swing of college there will be plenty of time to explore classes and take more diverse coursework, but for now, it’s best to leave well enough alone. 

* Suggest that your child enroll in early classes at least three days per week, or at least wake up as early as possible. Taking classes from 9:00am or earlier each day means that students aren’t sleeping through half of their days.  They will still stay up late, but early risers tend to have better time management skills and more time during the day for classes, study, work and other activities.

If, at the end of orientation, you still have questions or if once you return home and have a chance to process all the information you received, you still have questions, don’t hesitate to call the appropriate office or the general number for the orientation or parent relations office. We are used to fielding calls and emails about just about anything and can find the appropriate person to answer your questions. 

What to Expect During Freshman Orientation and Enrollment: Part 1

Summers are some of the busiest times on college campuses. This is the season when we welcome thousands of new students to campus for orientation and enrollments session. Most colleges and universities hold parents' orientation sessions along with sessions for students. Of course orientation sessions will vary slightly from school to school, but here are some common things to expect from orientation. 

Information sessions - These are held by various offices or departments on campus and are meant to introduce you and your student to the resources and services that these departments offer. For example, the university health clinic representative may tell you that they offer pharmacy services for less that your current pharmacy co-pay or the parking enforcement office may offer ways for parents to get free on-campus parking in certain lots when you visit.  There are often so many services available that students and parents don’t utilize because they missed hearing about them in orientation, or didn’t read through the handbooks or online guides. Don’t let this happen to you. Attend all the session you can, keep the handbooks you receive, and become familiar with the college’s website search feature.

Tours - Even if you participated in campus tours when your child was choosing a college, they take on a new feel as you realize that this place will be your child’s new home within a month or two. Tours during orientation are usually more specific and highlight the day-to-day routine of a typical student.

Instead of showing off the new labs or the remodeled residence hall, orientation tour guides may be able to show the student the exact buildings, dorm rooms, and classrooms they will be in on a regular basis. Chances are that your child, being a freshman, will not be able to live in the deluxe new residence halls or use the new labs that mostly juniors and seniors will access.

Some students are disappointed that they did not get their first choice residence hall or that they will be living farther away from the cafeteria than they originally thought. Remind him that he will be there for four years and by the end of his freshman year he will know where almost everything is and where he wants to live the following year.

Explanation of costs, bills and due dates - Even though the responsibility for paying tuition, fees and other expenses is technically your student’s we understand that it is virtually impossible for an 18-year-old pay for college entirely by himself. Even students who have multiple scholarships and part time jobs will need help from you once in a while, so while we may emphasize that the bills will be sent to your child, we will also tell you everything you need to know to make sure he or she doesn’t miss a deadline or end up without a meal plan due to an unpaid bill.

Celebrate 529 Day!

Today is 5/29, so it's a great day to investigate your state's 529 college savings plan. An excellent place to start is the free webinar being held today at the link below.  Like I always say, it's never too late to start saving for college. Even parents of current college sophomores or juniors will benefit from saving through a 529 because there are usually state tax benefits for funds saved in these accounts. 

Making Summer Count

Even if your child doesn't have a “dream job”, study abroad classes, or a summer internship there are still a number of ways to make this summer an educational experience.

• Work! - Any summer job will offer lessons in the “Real World”. Some students don’t see the value in a summer of working in food service, retail, or landscaping but all of these jobs require hard, task-oriented work, and the ability to manage time and handle people in sometimes difficult situations. I've hired many people in my life and the ones who were the best employees started out working in the most tedious of jobs. The way I see it; if you can wait tables, mow lawns, or deal with angry customers all day, you will be a conscientious employee who won't be afraid to work.

• Travel – The location doesn't have to be distant or exotic for learning to take place. Even seeking out a new adventure in a neighboring state can offer learning experiences.  As we age, travel becomes more and more about new experiences and learning opportunities. Even weekend getaways to local areas of interest or historical sites can enhance education and broaden students' world views.

• Independent study - Studying for anything from the MCAT to individual study in a foreign language or a non-credit, online class will broaden horizons and keep students’ intellectual muscles strong. Students who are interested in research can spend their summers working on a preliminary literature review for their future thesis or senior project. Believe it or not, some students even read for pleasure during the summer so they can easily answer the question “What was the last good book you read?”

• Volunteering – So, your child didn't find his dream internship this summer- don’t fret. There may be opportunities for similar experiences through volunteer work or job shadowing with a relative or family friend in the student’s field of study. Whatever volunteer experiences your child takes part in during the summer, be sure they record the hours worked and ask for a letter confirming the hours or a letter of reference from the volunteer supervisor. 

Surviving Low Final Exam Grades

Students who earn a low final exam grade can be deeply disappointed, but you can help them gain perspective by remembering some of these tips:

• If your child calls about failing a final exam, listen and let him or her express their disappointment. Unless they specifically ask your advice, just be their “shoulder to cry on” and let them know you’re still proud of them for trying hard and you are willing to help them work out a plan to salvage a low GPA after final exams week.
• Remind them at the they will take between 40 to 50 classes just to earn an undergraduate degree, so one low final exam grade, in one class, will not damage their entire academic career as much as they think.
• Ask if the class can be repeated during the summer. If so, the student may consider repeating the class to raise the grade. Some colleges and universities allow students’ grades in repeated classes to replace the original grade in the GPA calculation. A review of the institution’s grading or “academic forgiveness” policies can shed light on whether or not your child’s college has such a policy.
• Offer a reality check. Students on a semester term have 16 weeks to earn the grade they want in the class, so trying to make an A on a final exam for a class in which the student has a D average simply isn’t realistic. This is not to imply that the student should not bother to study, but sometimes students need a reality check that only a parent can give.
• Ask if they need a certain grade in the class to graduate? If not, it is wise to simply accept the grade and not worry about repeating the class. Students are often worried about not having a 3.0 or higher GPA to post on their resume, but many students post their “major GPA”, or the GPA in the classes taken only for the major requirements, on their resume too. This allows them to essentially explain an F or D in a non-major related class that may have no bearing on their future employability or graduate school admission.
• Stay positive even when your child is not. During final exams it is important for your child to focus on the exams as they come and not worry about disappointment or criticism from parents. I firmly believe that constructive criticism is necessary, but expressing your disappointment or critiquing your child during final exams is counter-productive. Be positive and supportive now, and worry about expressing your concerns or disappointment later. After final grades for all their classes are posted, your child can evaluate what worked and what did not in terms of studying, prioritizing projects, and time management, and can develop a plan to improve their grades in the future. 

Packing Up and Moving Out After Final Exams

Most college students are expected to moving out of residence halls, campus apartments and Greek houses immediately or shortly after their last final exams. Since it would be almost impossible for RAs or other student housing staff to check residents out of rooms all on one day, most universities encourage students to move throughout finals week. But, students don’t have to wait until finals week to start cleaning and packing. In fact, accomplishing small “moving out” tasks before finals week is ideal because it leaves students with one less task to worry about during exam week.

Students will find it easier to move, clean, and also study for exams if they take some time now to clean and pack before final exams. Suggest that your child pack off-season or other non-essential clothing and bedding now. This is also a great time to de-clutter and create an environment that is more conducive to study. Here are some tips to share with your student about packing up and moving out.

Essential items: Packing tape, boxes (try to find boxes headed toward the recycling bin), large heavy-duty or “contractor” trash bags, paper or material in which to wrap fragile items.

• Almost all colleges and universities have stacks of cardboard boxes that are broken down and waiting to be recycled. Students can usually ask food service employees or managers to point them toward where these boxes are stored so they can use them for moving.
• Large trash bags are great for packing and moving coats, bedding, and other bulky items that will not fit into boxes.
• Consider packing and stacking items that will not be needed during finals week. Most students will only need; a week’s-worth of clothing, books, class notes, computers and other exam essentials, and enough food/snacks for finals week.
• Wrapping fragile items in bedding or clothing instead of paper will save paper and hassle during packing and unpacking.
• Try to pack like items together. Some items, like alarm clocks or summer clothing, will need to be unpacked and used at home while others, like kitchen items used only at college, can stay packed in their box until the next academic year. Try to keep these items together.
• Try to move or ship items home before finals week begins. Less clutter means fewer distractions while studying. If your child attends college close to home, consider making a campus visit to move items the weekend before exams. If he’s far from home, he may consider packing and shipping boxes instead.