College Loans

Seniors: Review Financial Aid Awards Carefully

Posted on Wed, 03/19/2014 - 13:34

As you receive financial aid offers (also called "financial aid packages" or "financial aid award letters") from the colleges that admit you, review these offers carefully. There is no standard financial aid offer or award letter format. Each college has its own way of reporting and itemizing your aid package. This can make it difficult to understand which combination of price and student aid award is best from offer to offer. Be a wise consumer! Make sure you understand what is being offered and what you are accepting.

For example, pay particular attention to how much you have been awarded in grants vs. loans. Note the proportion of loans to grants—and the actual amount your family will pay -- each year! Figure out whether the grants are for one year or can be renewed.

The Difficulty of Standardizing Cost Information for Students

Posted on Tue, 06/12/2012 - 21:41

"Buying a Refrigerator, Choosing A College" Don't miss this thought-provoking article by Sandy Baum and Michael McPherson of the Chronicle of Higher Education on the difficulty of providing clearer, more standardized information to prospective students about the potential cost of their college degrees. "College pricing is complicated," the authors note. That is the strength and the drawback of higher education in the United States.  There are more than 2,600 four-year colleges and universities in the United States and they are all different in everything from their curriculums, missions and financing to their football teams and tastiness of the food service. Choosing a college is an exercise in finding the right personal fit. So how can students and families expect a one-size-fits-all ingredient label when it comes to cost? That diversity in cost and financing at a college -- like the diversity in engineering programs or arts opportunities from campus to campus -- creates both opportunities and risks for students looking for the right fit.

A Q&A on Financial Aid at The Choice

Posted on Wed, 04/25/2012 - 08:19

The Choice blog at the New York Times is hosting a Q & A on scholarships, loans, and financial aid all week, featuring the advice of expert Mark Kantrowitz, founder of FinAid.org. This is a great resource for families evaluating financial aid offers in the run-up to May 1st when all applicants must notify one college of their acceptance of an offer of admission. But even those families who aren't quite there yet should take advantage of this opportunity to learn more about how to pay for college. You can find Part 1 of the series here.

Loans: A roundup of expert advice

Posted on Wed, 04/18/2012 - 21:03

For families evaluating their financial aid at this time, here's a roundup of advice from some experts on the role of loans in funding a college education.

Jonathan Burdick, dean of admission and financial aid at the University of Rochester, has an excellent guest post at the College Inc. blog for the Washington Post -- Five steps to a prudent student loan.

For more insight from an expert, check out our own guest post from Jon Boeckenstedt, vice president for Enrollment Policy & Planning at DePaul University for his thoughtful look here at when and where borrowing is worth it.

College Loans: Is Borrowing Worth It?

Posted on Fri, 03/16/2012 - 18:32

Today's guest post is from Jon Boeckenstedt, vice president for Enrollment Policy & Planning at DePaul University, who has a gift for cutting to the chase whether he's writing about testing, college tours, or tuition. Here is his take on the value of a college degree and how a student may want to think about borrowing to obtain that education: 

It has long been believed that attending college paid back financially and with a better quality of life in general.

Then we had a little economic calamity in this country, and people aren’t so sure any more.

Some people think we’re in the middle of “A Perfect Storm,” where several important (negative) things are happening at the same time, thus creating a crisis: College tuition keeps increasing, and often increasing faster than inflation; federal aid keeps shrinking, causing student debt to grow dramatically; and the jobs recent graduates need to pay back student debt are growing scarcer.  On top of that, problems like unemployment are even greater for people who don’t have a college degree.