Pay Now and Earn later
How much is college worth? With college costs at record levels, is higher
education cost effective? Is a public or private college education of more
value? In a revealing study, researchers from the University of Pennsylvania
have provided some answers to these questions.
The study selected female twins who had attended school together until college.
In selecting twins to study, Mark Rosenzweig, one of the researchers noted
"...choosing to use twins was the key factor in the study. Other studies
had shown the same economic impact but were not able to control for differences
in family backgrounds among graduates."
College or Increase in Lifetime Earnings over
University Person with just a High School Education
Large, Private
Research University 56.6%
Small Private College 40.3%
Large Public
Research University 31.7%
Large Public College 20.3%
The researchers caution that the results do not mean that attending an expensive
private research university like Harvard is the best economic choice. Rosenzweig
says, "A Harvard degree costs about $60,000 more than one from a public
research university like the University of Michigan. Even with higher lifetime
earnings, a Harvard graduate is unlikely to recoup the earnings."
Is there a clear message in these statistics? Higher education, even at
today's costs is a sound economic decision. Private colleges and universities
certainly cost more but also deliver more earnings potential. The key is
to do everything to reduce the initial cost of college. Through optimum
use of financial aid and private scholarships, families can do much to make
even private colleges cost effective. This newsletter is committed to helping
you do just that and more.
Federal Trade Commission Kicks-off Project $cholar $cam
For the past several years, this newsletter has cautioned parents and students
about 'scholarship search' companies. In September 1996, the federal Trade
Commission initiated project $cholar $cam, seeking $10 million in damages
from five companies.
While not all scholarship search companies are scams, few provide a real
service to students. Remember, everything offered by these companies and
much more is available for free at schools, libraries and through the Internet.
Training and Careers
Star Techies - The Next Generation
Laurence Hartje is a freelance computer consultant who has worked with Microsoft
and designed Web sites. Dan Lieberman is a computer professional employed
by Progressive Networks of Seattle. Jascha Franklin-Hodge does computer
programming and maintenance for Software Tool and Die. The surprise here
is that Laurence is 15 years old and Dan and Jascha are 17. According to
Jeff Ried, in a recent Business News (Fall 1996) article, these teenage
'star-techies' may be the cutting-edge of a new job market.
Teenage computer consultants are making as much as $25 per hour providing
companies with the technical help they need. Dennis Allison, software engineering
professor at Stanford University says "Many kids are doing computer
consulting work these days at levels of skill and comfort that would have
been unthinkable in the fairly recent past." At home or in school,
high school students are often much more experienced with computers than
are parents or teachers. According to Jeff Ried, a study from MIT "indicates
that the average age of Internet users is now 26; by the turn of the century,
the average age will be 15.
How can you start your own computer consulting business? If you have computer
skills, especially Internet experience with Web site development, it may
not be that hard. Below are some tips for finding work as a 'star techie'.
1. Get your resume ready. Prospective employers need to know what you can
do for them. Prepare a one-page resume that shows your experience and any
related work you have already done. Prepare a cover letter for your resume
that clearly identifies the type of work you want. You may want to provide
several references, names of people that can verify your skills.
2. Circulate your resume and cover letter to teachers, family friends or
other professional that may connect you with job opportunities. You may
even want to send copies to local companies, especially targeting small
businesses who need computer and Internet access but may not know where
to begin.
3. Use the Internet. Look for electronic 'help wanted' ads or place your
resume on electronic bulletin boards. If you can set up your own e-mail
it will help. Many public libraries offer free or low-cost e-mail access
to the public.
Internet Experience Means More Money
Workers who use e-mail on the job earn 7.4% more than their un-plugged counterparts.
Bernard F, Lentz, economics and business professor at Ursinus College studied
10,000 workers from a U.S. Census Bureau survey and found that the ability
to use e-mail and the Internet are key in setting salary levels.
Community and Technical Colleges
Older Students in College Classrooms
College classrooms look much different today. While the classroom itself
may have been updated, the more dramatic change is in the age of the students.
In 1970, only 5.5% of college students were age 40 or older. In 1993, 11.2%
of college students are over 40.
Today, 1.6 million college students are adults, age 40 or more. This represents
an increase of 235% over the past 23 years. According to The Chronicle of
Higher Education (10/25/96), the average 'non-traditional' or adult student
is white, female, attends a community college part time and works 30 or
more hours per week. The Chronicle reports that "The demands of their
jobs, their families, and their classes make it difficult for students 40
or older to spend much time reflecting on what they are learning. Forty-five
percent said they had never spoken with a professor about their work."
Having older students in the classroom can have direct advantages for all
students. Older students often bring valuable life experience to classroom
discussions. Older students may also hold faculty members to higher standards,
resulting in a better-taught class. Community and technical colleges in
the Pacific Northwest have long encouraged returning adults with programs
and services tailored to the needs of 'non-traditional' students.
The Cost of a Two-Year College
Tuition costs at two-year public colleges nation-wide have increased 5%
for the 1996-97 academic year, according to the College Board. A comparison
of community-technical college costs for Washington, Oregon, Idaho and Alaska
shows modest increases in that range and an actual reduction at Idaho's
technical college.
State Tuition and Fees 1994-95 Tuition and Fees 1995-96 Alaska $2,120 $2,150 Idaho* $1,132 $1,098 Oregon** $1,485 $1,620 Washington $1,350 $1,401 National Average $1,260 $1,330
*Eastern Idaho technical College, **Mt. Hood Community College
The 5% increase for two-year colleges matches that of 4-year universities.
Tuition and fees represent just part of the 'total cost of education', on
which financial aid is based. The national average for these costs at two-year
public colleges are:
Books and Supplies $ 591
Room and Board $1,810 (for students living at home)
Transportation $ 935
Other Costs $1,189 (other student necessities)
Total Cost of Education $5,910 (includes $1,394 for tuition and fees)
Admission Application Components:
What are colleges looking for?
What information do you need to give to schools when you apply for admission?
Generally schools ask for:
Personal information - name, address, date of birth, parents names, etc.
Official transcript - up-to-date grades, courses, test scores
Activities listing - with the range and duration of activities, sports,
jobs, etc.
Personal statements - educational goal statements, essays
Recommendations - generally from teachers, also from guidance counselors,
employers, community leaders, friends
What does this information tell them?
Selection committees may look at quantitative or qualitative information
when selecting students. Large public universities often limit their review
to quantitative data while smaller public and private colleges look beyond
the numbers to see the whole student. Some quantitative examples follow,
with their qualitative twins:
Quantitative Qualitative
numerical GPA level and range of coursework
test scores range and time of testing
rank in class % of class going on to college, un/weighted
position in outside activities/jobs duration and range of activities
indicated major personal/educational goals essays
teacher recommendations
Quantitative measures seek out the level of academic accomplishment - where
you stand, at present, with respect to learning skills. Also this information
is used to place you at the correct level in post-secondary courses.
Qualitative information shows what makes you individually suited for a college
or particular field of study. Self-motivation, discipline, intellectual
curiosity, social maturity are all factors which can be revealed in recommendations
and essays and, to a lesser degree, through activities and courses as they
reflect your choices during high school.
QUICK-FACTS - The cost of public 4-year colleges
From 1980-81 to 1994-95, tuition costs at public 4-year colleges have risen
234%. At the same time, incomes rose 82% and the cost of consumer goods,
74%. During this same period, Pell Grants have risen only 72%. Don't blame
college costs on faculty salaries, they have only gone up 97% since 1980-81,
while college expenditures per student have increased 121%. What everyone,
including Congress wants to know is where the rest of the 234% has gone?
source: The Chronicle of Higher Education (9/6/96)
Admission Essay Questions
Many colleges require applicants for admission to submit an essay. Some
colleges make the essay optional. These same questions are often asked for
scholarship essays. Students may want to write on one or more of these topics
for an English class assignment and then have an admission/scholarship essay
ready to go. The following are some sample essay questions.
Goals - Describe your educational, personal or career goals.
Role Model - If you could meet/be/have dinner with anyone in history, who
would it be and why?
Past Experience - Describe an event that has had a great impact on you and
why, or what was your most important activity/course in high school and
why?
Future - Forecast important issues in the next decade, century - nationally,
globally.
Standard Questions - Why do you want to study X? Why do you want to study
at X university? Tell us something about yourself, your most important activities?
Creative Approach - How would your room, computer or car describe you?
Learning a Second Language - Shifting to Spanish
For the first time in 38 years, more than half the college students studying
a foreign language are studying the same language - Spanish. Of the 1.1
million students in foreign language classes, 53% are taking Spanish, according
to the Modern language Association. At the same time, students taking French,
German and Russian have dropped dramatically. Professors believe the increased
popularity of Spanish classes is a result of more interaction with Hispanic
students and a desire to be better prepared for the multi-lingual job market.
Below is a comparison of enrollment percentages for various foreign languages,
showing changes from 1980 to 1995.
Foreign Percentage of Students Enrolled
Language 1980 1995 Chinese 1.2% 2.3% French 26.9% 18.0% German 13.7% 8.5% Hebrew 2.1% 1.2% Japanese 1.2% 3.9% Russian 2.6% 2.2% Spanish 41.0% 53.2%
source: The Chronicle of Higher Education (10/18/96)
Money Talk
Insider's View - Five Important Steps to Financial Aid
by Doug Robison, Washington Mutual Bank
1. Don't be influenced by 'horror stories' - It's true, higher education
is more expensive today, but there are still many options to make it more
affordable. Full use of grants and scholarships, along with student employment
and responsible borrowing can still cover college costs. The investment
is small compared to available career rewards.
2. Have a financial plan - Families need to sit down and talk about how
college will be financed. Be sure to attend any school-sponsored, college
financial aid workshops.
3. Applying for financial aid - Many financial aid administrators recommend
that all families apply, even if less than confident that aid will be available.
Over 90% of families with college students NEED help with educational costs.
4. Scholarships - Remember, you are competing for limited resources. Applications
must be as 'perfect' as possible. Follow directions to the 'T' and be truthful,
but don't be modest. It's okay to brag - your competing for valuable dollars!
5. Don't put all your eggs in one basket - Apply at more than one college,
it's best to have alternatives to compare. Colleges compete for students
with financial aid.
Top College Football Players Earn Big Money... For Colleges
No one expects college students to earn from $480,000 to $650,000 per year,
while still in college. Well almost no one. According to Robert Brown, an
economist at the University of North Texas, this is exactly what premier
football players bring in revenue to their colleges each year. By dividing
the football revenues of 41, Division 1-A colleges by the number of premier
players drafted by the National Football League, Mr. Brown determined the
financial contribution made by each player.
According to Brown, further calculations showed that by dropping the required
minimum grade point average for football players from 2.64 to 2.43, The
players value to the college would jump to $814,000 - $1.1 million per year.
This is because more premier players would be available to colleges. He
goes on to say, "Colleges have an incentive to do this. That's obvious
to anyone who follows college football, because that is what teams have
done."
College football programs can make the point that in preparing premier players
for the NFL, they are providing an opportunity for substantial future earnings.
Awareness of these revenue-per-player numbers may also give premier players
and their families new leverage in admission and scholarship negotiations.
Requesting and Providing Financial Aid Information
As soon as students and parents begin to identify prospective colleges,
write to the financial aid offices of the colleges you are interested in
attending and request information. This can be done in the sophomore or
junior year. Some questions to keep in mind are:
All colleges will require high school seniors to fill out the Free Application
for Federal Student Aid (FAFSA) to apply for federal and state aid. Many
private colleges also require a supplemental form in order to apply for
their own institutional aid, however, they cannot require completion of
these additional forms or use information from these forms for awarding
federal or state aid.
Once you mail the completed FAFSA, an analysis of your financial need is
sent to the institutions you specify and a Student Aid Report (SAR) is sent
to you. Review the SAR for any data entry errors and make any additional
changes to the information you provided. Make copies of the SAR for each
college considering you for aid, sign each copy and send it to the college
financial aid office. The financial aid officer will evaluate your need,
determine what funds are available and which types of aid you may be offered.
After confirming that you have been offered admission, the financial aid
office will send you a financial aid offer.
Quick Financial Aid Facts - Tips for Completing the FAFSA
1. The FAFSA is not a tax form. It is essential to provide estimates for
parent and student income and assets and a mistake to wait for exact numbers.
Opportunities will be available later to provide exact numbers from 1996
tax returns. The best way to be at the front of the line for financial aid
is to send the FAFSA in at the earliest possible date after January 1st.
2. Do not leave any FAFSA questions blank unless instructed to do so. If
you are unsure about answering a question, don't leave it blank. Experts
recommend you put in a zero (0), even for non-numeric questions. A zero
shows you saw the question but your answer was "nothing" Use "na"
or "none" only where instructed.
3. If you have questions? Call 1-800-4 FED AID, the FAFSA infoline.
