What are Typical Mandatory Fees?

Depending on how your child’s college compiles bills, you may be surprised to notice that “fees” sometimes cost more than tuition. So, what exactly are these “fees” and why do they cost so much?Almost every college charges some kind of fees and they cost so much because they cover so many things. Fees usually cover the nuts and bolts of the university. Obviously, a college has physical structures to maintain, utilities to pay, water to treat, lawns to mow, and custodians to pay, these are usually lumped into something called facilities fees.

Other fees may cover technology including hardware maintenance, software licenses, print stations, the IT folks who make the computers and servers work. Still more fees may cover all the student events and activities that keep your child engaged in fun, positive activities instead some of the rather unhealthy activities that some students enjoy in bars and nightclubs.  In short, fees cover most of the non-academic foundations of the university and make it a nice, safe place to live and learn. At community, technical, and online colleges, these fees are often much lower, but also cover fewer amenities, so where your child attends college will make a big difference in his fee requirements.

Here's another way to look at fees - Consider all of the things that your child spent money on all through high school.  There were probably several small fees for several events, activities, sports teams, and field trips that you paid each month as the need arose, and if you ever kept a running total you'd easily see a figure between $600.00 to $6000.00 per year. But, now that your child is in college, those expenses are rolled into a lump sum called "activity fees".

Having said that, it is absolutely essential that you and your child know exactly where your fee money goes. Students who pay fees for a recreation center need to use that center unless they are interested in throwing away their money. Students whose fees include usage of the campus bus system can save thousands by taking the bus, that they’ve already paid for, instead of using a car

Is Your Child a "First Generation" College Student?

Each college will have it’s own definition of a first generation student, but usually, If your child is the first in your family to attend college they are considered “first generation”. Some campuses even extend this title to students whose parents or other family members attended college, but did not graduate. Whatever the definition, first generation college students universally experience stress, a feeling of being an outsider on campus, and the burden of being the trailblazer for their entire family.

For first generation parents it’s important not to be intimidated by college, and the best way to do this is to learn as much as you can about your child’s college and where he can go for help if he needs it. Almost all colleges have handbooks for students and many have parent handbooks as well. Find copies of these books, read them thoroughly, and keep them handy. College websites are also wonderful resources for first generation parents.

For most students, having a parent or family member take an interest in their education and being willing to listen and find out more about their college is half the battle. First generation parents don’t have to know all, or any, of the answers to their child’s questions they just have to know how to help find the answers. The first step in this process is having your child clarify the question. You may think that asking him more questions is the last thing he needs now, but it’s the best way to pinpoint the potential problem and start working on a solution.

Keep in mind that as your child is learning, this is also a great learning experience for you too. Take advantage of programs on campus or parent networks that can help ease these transitions for you and your child and never be afraid to ask questions.

Discussing Family Finances With Your College Student

When I was a child people didn’t really talk about finances or how much they earned. I never asked my parents what they earned because I knew that the subject was taboo and there was no point in asking a question to which there would be no answer. My only reliable gauge of whether or not they were having financial trouble was how often they argued about money, and how nasty the arguments got. In short, I knew nothing about my family’s finances except that the lack of money caused arguments and family-wide tension. If you are of my generation and are now sending your child to college you may have had a similar experiences growing up, and if your own child doesn’t know much about family finances you need to have a frank discussion with him before he starts college.

This discussion is important for two reasons. First it expresses to your child how much you have to work to provide for the family and second it helps him understand his piece of the family’s financial pie. When I talk to college parents each summer, I cover this topic briefly and when I do, the audience grows tense.  While I understand the desire to take care of the tuition and fees for your child so he can focus on academics instead of money, it doesn’t mean that your child should remain in the dark about where the money comes from and how it's used.  

1. Discuss the college financing puzzle with your child. It’s rare for families to be able to pay cash for tuition, fees, room, board, books, and spending money. Even students from families that have saved diligently still seek out scholarships, part time jobs, or maybe even loans. Families often find that while tuition and fees can be paid from a 529 plan, room and board needs to be paid off monthly through a payment plan, and grandparents end up sending some cash to cover books or spending money. Most families collect funds from a variety of sources and have to assemble the college financing puzzle a little differently each year. Make sure your student understands this puzzle and actively helps you build it.

2. Talk about how he can help. Part time or summer employment, scholarships, student loans, graduating in 4 years, living frugally while in college; all of these are ways that parents hope their children will help them afford college, but we don’t always clearly express these expectations to our children. I have numerous conversations with parents halfway through each year in which they explain that they assumed their child would find a part time job to help pay for spending money and books. Unfortunately, the child was unaware of this assumption and never bothered to find a job. Instead, he’s used an entire year’s worth of spending money in four months. If you expect your child to live within a set budget or bring home $80.00 per week to reimburse you for his meal plan, tell him. Be clear and give him exact numbers so he knows that not only will he need to find a job, he’ll need to find one where he can earn at least $80.00 per week after taxes.

3. Plan for family financial emergencies. Having worked with college parents for nine years I’ve seen a lot of families go through a lot of financial problems. While there are some sad but rare occasions when a parent uses funds from a PLUS loan for a personal shopping spree or a vacation, most of the time financial emergencies happen because of job loss, illness and medical bills, or divorce. Your child deserves to know what your plan is in case these situations arise and it’s beneficial for everyone to work out a strategy to try to keep your child in college. This may mean that your child switches to part time status, transfers to a college near home, or has to take out a loan. Keep in mind that the goal of earning a college degree doesn’t have to change, but the strategies used to achieve that goal may.

Remedial and Non-credit Classes

Some students have to take a non-credit, remedial, or basic skills class before enrolling in classes for college credit in the subject. For each non-credit class the student must take, the credits will have to be made up in summer school or by taking an extra semester. A student placing into non-credit classes is not uncommon and is the result of a few issues:

1.              The student has taken a placement exam (often part of the orientation process) and from the scores earned on the test has been placed in the remedial class. Let’s face it, sometimes students coast through their senior year of high school and don’t put forth the effort required to maintain their skills in a specific subject, especially one they don’t like in the first place. Once June, July, or August rolls around and they take the placement test as part of college orientation or enrollment they haven’t even thought about the subject for six to twelve months. If this is the case, there is virtually no way they can improve their skills on the subject in time to jump right into a college level class. Basically, they need a refresher to be successful in a regular college class.

2.              The student’s grades and SAT or ACT scores are low enough in the subject to warrant remediation. If your child has always detested reading and writing and has the grades and standardized tests scores to prove it, he will probably not be able to succeed in college level composition classes without strengthening his skills in the subject. You probably already know what subjects your child has always struggled in so remedial placement is rarely a surprise. Even if your child earned grades high enough to pass these classes in high school, you can guarantee that the college level classes will be much more challenging.

3.              It is far better in the long run that your child enroll in the remedial class, even if it does not offer credit, because the alternative is to enroll in the higher level class and struggle all semester just to fail or perform poorly in the class.

Having to pay for and take non-credit classes is not fun and can be disheartening to a student who feels ready for college, but it is important for students to accept their academic challenges and work to overcome them before making the leap into a high stakes college level class. In addition, most non-credit classes are graded as pass/fail and grades in these classes are not calculated in the student’s GPA. Whereas, a student who enrolls in a regular college level class and fails it will have the grade permanently etched on his transcript. 

The Senior Summer

The senior summer is when the train slowly starts to leave the station. Your child is pulling away from you and family life in general in preparation for the day he leaves “for real”. Just like a train, the process starts slowly with a great deal of caution and preparation, but the momentum increases with each passing day until you and your child realize it can’t stop.

I suggest planning a 20-30 minute chat each week in which you review mail, emails, and other documents sent from the college and take action on them. If nothing has arrived that week, have a brief talk about any of the topics listed on the checklist below. 

Paperwork from the college

Usually colleges send, or have online, checklists for new freshmen. These are often set up on a timeline that you can use to plan these discussions and get organized. By tackling these on a weekly basis, you are also showing your child how to prioritize, break down a long list of responsibilities into easily accomplished tasks, and avoid procrastination by working steadily toward a goal.

A typical senior summer checklist: In addition to talking with your child about these important items, it is helpful to remind him that if he has not received some type of confirmation of completing the tasks, he may not have completed them.

• Receive financial aid award letter and accept or reject awards - This is actually done online by the student when he logs onto his account at: http://fafsa.ed.gov, and after he receives word via email that his FAFSA has been processed.
• Schedule a date for orientation and enrollment – Your child won’t be a college student at all without taking these steps that usually occur together during freshman orientation. Make sure he’s signed up for an orientation and enrollment program and has received a confirmation of the program’s date(s)
• Placement exams – Are often administered as part of orientation and enrollment, but your child should check to confirm this and sign up for testing if required. Some colleges will not let students enroll without placement exam scores.
• Complete scholarship applications – This is an ongoing process, and many colleges use the student’s completed FAFSA in conjunction with a separate scholarship application to award scholarships. Scholarships are good!
• Residence hall applications, contracts, and deposits – Unless your child is commuting, he will need a place to live on or near campus. Many colleges require students to live on campus during their first year. Make sure your child has completed the application for housing, a contract if necessary, and has paid any required deposits to hold his spot in the residence halls.
• Proof of immunizations –  Some colleges will not allow students to attend class, or will cancel enrollment without proof of immunizations or a written refusal form.
• Meal plan selection and deposits – in addition to a place to live, your child will need to eat. Most meal plans require a contract, deposit, or partial payment before the semester begins.
• Greek letter organization registration – Is required of students who are interested in joining a social fraternity or sorority. The formal recruitment process usually has its own set of forms, fees and deadlines to follow. * Not all colleges will hold formal recruitment in the fall.

Save Money by Avoiding the Dorm Décor Hype

You don’t need to read one of the many news stories about spending on dorm décor to know that college-bound students and their parents mean big money for retailers. Just like the buying frenzy you had to manage when your children were newborns, retailers know that “Back to campus” is a spending frenzy based on emotions. Back to campus spending has become a $50 BILLION per year industry, and the average amount spent per student to stock and decorate even the smallest of rooms is slightly more than $900.00. In my opinion that’s way too much, and there are a number of ways students and parents can avoid spending hundreds or thousands on back to campus costs.

1. Choose a traditional residence hall if the student is living on campus. This is THE MOST EFFECTIVE way to save money throughout the year because students who live in a traditional hall (shared room with a communal bathroom and lounge/kitchenette down the hall) only have to stock and decorate one, small room.  If your student chooses a suite or apartment, not only do they usually cost much more to rent per semester, the student is responsible for stocking their own living room, and kitchen, and is usually also responsible for cleaning and stocking their own bathroom.
2. Know what is included in the cost of the room. Most rooms are already furnished by the university and include things like built-in desk lamps, curtains or blinds, mirrors, shelves etc. Also consider what items are available for students to use. Each floor or hall usually has a communal kitchenette or at least a refrigerator and microwave, and many halls allow students to check out vacuums, tools, and other useful items. Avoid the temptation to buy things that are already provided for the student.
3. Separate needs from wants. In reality, the only thing that most students NEED to purchase is a set of sheets for their bed, assuming that it is a different size from the bed they have a home. They probably have everything else they will need, or can assemble their list of needs from things you already have in your home. Granted, it is nice to have storage bins to move and store items or maybe an area rug to cover a tile floor, but these things are not required and even if you do choose to purchase them, they are low cost items that can be used for all four years and beyond. NOTE: chose a dark-colored area rug.
4. Borrow it. This is actually a fun experiment for social media. Let’s say your college-bound student has a short list of items they still want for their dorm room; coffee pot, posters, area rugs, storage bins, step stool – whatever. Send the list out on social media to family and friends and watch these things flood in. There are probably a number of people who have exactly what you’re looking for and are willing to loan or simply give these things to your student.
5. Remember this fact. This is a temporary home in which your student will most likely just sleep and change clothes. Studying, socializing, and eating will usually take place elsewhere.

http://www.businessinsider.com/average-spending-on-dorm-decor-skyrockets-2012-9

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.