A discussion about student debt and how majors can affect how much you’ll owe… (or won’t owe) after you graduate school.

Ideally, a student would pay the expense of college tuition and living expenses with accumulated savings, scholarships, grants and/or earned income; however, these means are not always enough to last the duration of a four to five year degree program. Furthermore, many majors offer a substantially higher return for a master’s level or doctoral degree, which almost certainly requires the use of debt.

The amount of student loan debt that is reasonable depends on the return on investment. A student may be willing to go into debt to increase earning power above what can be earned without the degree. The return on the debt is calculated by dividing the debt into the difference between the starting salary with the degree and the salary without the degree which is at least the minimum wage of $15,000 per year on a full-time basis.

For instance, let suppose a student would earn $20,000 without the degree but $45,000 with a degree that costs $50,000 to attain. The return on the investment would be 50% [($45,000-$20,000)/$50,000]. If that same student were to pay $100,000 to earn the same degree, the return on investment would only be 25% [($45,000-$20,000)/$100,000]. If the return on investment is 25%, it would take at least 4 years to pay off the loan with no improvement in lifestyle.

The higher the return on investment the less sacrifice and discipline is required to pay off the loan. Although many lenders allow students up to twenty-five (25) year to pay off student loans, it can begin to feel oppressive to have a loan outstanding for such a long term. By striving to keep the return on investment above 20%, the student can plan to payoff the loan early and enjoy some material rewards in the meantime.

In 2012, the highest paying majors are expected to be engineering, most math and science majors, economics, finance, and international business which pay starting salaries in excess of $45,000 per year according to payscale.com. Engineers and pharmaceutical majors can expect to earn more that $65,000 per year. On the other end of the spectrum, the lowest paying majors include psychology, visual and performing arts, studio arts, communications, social work, theology and early childhood education. Time.com posted that the starting salaries are low and the average pay hovers around $40,000 per year.

This article was written by Heather Bain, who is an instructor and test prep tutor for Top Test Prep’s programs. To learn more about Top Test Prep’s admissions counseling, call (800) 501-7737.

Tags: Admissions Advice, Education Expert, Educational Financial Planning // View Comments

Skepticism about the value of a college degree has peaked recently in many media outlets as a seemingly temporary recession turns into a prolonged period of economic stagnation or worse. While economic challenges remain for even the best educated, unemployment and weekly earnings figures paint a vivid picture of the advantages of achieving college and advanced degrees. The following figures bear this out.

Degree , Unemployment Rate in 2009, Median Weekly Earnings in 2009
Doctoral, 2.5%, $1,532
Professional, 2.3%, $1,529
Master’s, 3.9%, $1,257
Bachelor’s, 5.2%, $1,025
Associate, 6.8% , $761
Some College, No Degree, 8.6%, $699
High School Grad, 9.7%, $626
Less than High School Diploma, 14.6%, $454
Average All Workers, 7.9%, $774

Conclusion about the value of school/education:

Degree attainment clearly correlates to job stability and earnings. Gaining access to the best schools is highly competitive.
David Dickson is an admissions counselor with Top Test Prep. Get in touch with Top Test Prep’s private tutoring programs today, to learn more about how you can gain admission to the best schools or call (800) 501-7737.

Tags: Colleges, Educational Financial Planning, private tutoring // View Comments

Rapidly Expanding Careers of the Future Requiring Higher Education

While the American economy has recently eliminated million of jobs for the non-college educated in construction and manufacturing, jobs continue to be created for the college educated. According to the US Bureau of Labor Statistics, more than a million new jobs will be created by 2018, most of which require college. Of the ten fastest growing occupations, seven will demand higher education. What are these jobs, how much do they pay, and what kind of training do they require?

Here are 7 of the fastest growing jobs with high pay:

1. Bio-Medical Engineer: Growth: 72 percent or 12,000 new jobs by 2018; Salary: $82,550 mean; Training: Masters degree or Ph.D.

2. Network Systems and Data Communications Analyst: Growth: 53 percent or 156,000 new jobs by 2018; Salary: $76,560 mean; Training: BS, Masters, or Ph.D.

3. Financial Examiner: Growth: 41 percent or 11,000 new jobs by 2018; Salary: $71,000 mean; Training: BA or Masters in accounting or finance focused on investigating the transactions of organizations to ensure compliance with the law.

4. Medical Scientist: Growth: 40 percent or 44,000 new jobs by 2018; Salary: $84,760 mean; Training: Ph.D. or joint Ph.D. and M.D.

5. Physician Assistant: Growth: 39 percent or 29,000 new jobs by 2018; Salary: $85,000 mean; Training: A Masters in Health Science.

6. Biochemist and Biophysicist: Growth: 37 percent or 9,000 new jobs by 2018; Salary: $88,550 mean; Training: Ph.D.

7. Athletic Trainer: Growth: 37 percent or 6,000 new jobs by 2018; Salary: $41, 340 mean; Training: In 47 states a license and BS in athletic training is a minimum requirement. Close to 70 percent of practitioners hold a Masters. Not to be confused with personal trainers, athletic trainers work under a doctor’s supervision and are schooled in sports medicine to prevent and treat muscular/skeletal injuries.

Conclusion
Planning for college is a down-payment on your future. The jobs will be there, but you must be trained for them. Keep in mind that the two fastest growing non-college occupations, home health and personal aides, will only pay a poverty level wage for families of around $20,000. Give yourself a head start on a promising future with a test and college preparatory service like Top Test Prep.

David Dickson is a college counselor at Top Test Prep which offers tutoring and test preparation with admissions experts who help you gain admission to your top schools. To learn more about Top Test Prep’s programs, call (800) 501-Prep.

Tags: Colleges, Education Expert, Educational Financial Planning // View Comments

Here’s an article on highest starting salaries for different college majors:

With a backdrop of economic uncertainties and rising college costs, concerns have recently been raised about the value of a college education. A recently released study by Georgetown University’s Center on Education and the Workforce addresses this issue head on. The study entitled, “What’s It Worth? The Economic Value of College Majors” observes that “all undergraduate majors are worth it, even taking into account the cost of college and lost earnings.” The study then proceeds to offer the following figures on median earnings for those holding Bachelors and graduate degrees in different academic disciplines from the most lucrative to the least.

Here’s a list of the Highest Paying College Majors (Starting Salaries):

Engineering: $ 75,000 and $99,000
Computers and Mathematics: $70,000 and $89,000
Business: $60,000 and $80,000
Health: $60,000 and $80,000
Physical Sciences: $59,000 and $90,000
Social Sciences: $55,000 and $85,000
Agriculture and Natural Sciences: $50,000 and $70,000
Communication and Journalism: $50,000 and $62,000
Industrial Arts and Consumer Services: $50,000 and $65,000
Law and Public Policy: $50,000 and $70,000
Biology and Life Sciences: $50,000 and $85,000
Humanities and Liberal Arts: $47,000 and $65,000
Arts: $44,000 and $55,000
Education: $42,000 and $57,000
Psychology and Social Work: $42,000 and $60,000

Conclusion
In addition to exposing you to a new world of ideas, a college education is financially advantageous to a large majority of graduates. The life-time earnings gaps between a person with a high school degree and a person with a college and a professional degree are one million dollars and more than three million dollars respectively. The stronger your college academically the higher your earning potential in your major. Its time to hit the books and find a knowledgeable counselor to advise you on the college preparation and application process. If you do so, you can count on a life-time of opportunities.

****
The author of this piece is David Dickson, a college counselor at Top Test Prep, which offers private tutoring and test preparation with admissions experts who help you gain admission to your top schools

Tags: College Rankings, Colleges, Educational Financial Planning // View Comments

Can you afford your top college? Should you take out loans to pay for school? These are questions that weigh heavily on many students and their families. Decisions have been mailed out, but financial aid packages, scholarship decisions, and loans can strongly influence where students decide to go. A report in the New York Times this week shows that "Student loan debt outpaced credit card debt for the first time last year and is likely to top a trillion dollars this year as more students go to college and a growing share borrow money to do so."

Loans are an important part of a financial aid package, but should you rely on them to attend your top choice when a different school has offered better financial aid?

1. Visit the colleges, get a feel for the communities

How well do you "fit" different colleges? Nothing can replace fitting a college well. You will have a better educational experience and be able to do more if the college feels natural to you. If you do not fit a place or fit the mindset of the student body, you will be paying in different ways.

Visit and talk with students and faculty. The image a college projects through marketing, its website, and recruitment is important – that will tell you about its mission and ideal look – but how a place feels is determined by its community and daily functions, which you'll be a part of. When you choose a college, in a sense you are also choosing a lifestyle. How well you fit or see yourself growing into that lifestyle is essential in your decision.

2. Talk to current students and alumni

Current students provide perspective no one else can. They can tell you why they chose their school, how well it fits them, and what they hope to do afterward. You'll gain a solid sense of how you could be a part of the place. Talking with alumni will help you think about after college, and the continued community of a college. Those alumni connections also translate into jobs and important career connections, which is a crucial factor when thinking about educational debt.

3. Consider educational debt in the long-term

Students must be extremely cautious when considering taking out any  type of loan, but consider educational loans in the long-term. Look at federal loans first, and then consider private loans and read the small print. When holding up two colleges and making a decision, look realistically with fit and alumni network in mind. If you plan on working directly after college, what kind of career resources does the institution provide? If you expect to complete your B.A. and move directly into graduate school, more loans will likely be a reality. Will taking out loans now affect your finances in graduate school? Will attending your top school give you a better base for graduate school?

Talk with different financial aid offices, your parents, and consider the above factors. Best of luck.

__________________________________________________________

This post is titled, "Loans and Educational Debt – Can You Afford Your Top Choice?" It was written by Marta Casey, a writer at Top Test Prep.

To learn more about Top Test Prep's programs, call (800) 501 – Prep.

Tags: Educational Financial Planning // View Comments

Between overall economic trends and steep increases in college tuition, there have been hints of a tuition cost bubble. One of the main concerns is that the rise of college costs outpaces overall Consumer Price Index rates and inflation. Although worries over bubbles and general rising costs persist, the benefits of going to college continue to surpass the cost, not only in lifetime earnings, but also in job flexibility and growth. But there is no denying that college is increasingly expensive.

Economists Robert B. Archibald and David H. Feldman of the College of William & Mary in Virginia recently wrote a book, Why Does College Cost So Much?, about this trend. Contrary to popular notions that college tuition is skyrocketing out of control because of glorious dorms, tenure, and public money, they place their conclusions in a broader, historical context. Here are two of their arguments.

Service expenses and productivity

More service providers – professors and administrative staff — are highly skilled, and higher wages are demanded to keep these highly educated providers. Archibald and Feldmand also argue that providing good services in higher education is not only competitive, but also takes time. Because of these two factors, increasing productivity is also a challenge, which drives up institutions’ costs. Administrative staff for career services, mental health support, and health care are also essential in today’s college experience, which cannot be replaced. These workers are not “increasing output” per se – so in financial terms it may seem they are an extra cost. But their services are essential.

Technological innovations and trends

Taking a broad view, Archibald and Feldmand also see innovations in technology as one of the main factors increasing college tuition costs. While distance learning, computers, and other technology change, aid, and improve education, technology has not replaced real teachers or the time spent in a classroom – and those interactions take time and money. But college today is incomplete without training in electronic databases, lab equipment, and IT infrastructure. Maintenance costs for technology also show up in tuition costs. Equipment and technology is necessary for a complete, competitive education. It just takes…more money.

While written in economic terms, the book is accessible to the non-economically minded, and provides a myriad of data and a long-view of the rising cost of college tuition. For more information, see the New York Times recent interview with the authors. For anyone curious about the background of college tuition, the book provides a deep context and many perspectives.

This article is titled, "What Is Behind Tuition Costs?" and was written by Marta Casey, a writer for Top Test Prep's team.

To learn more about Top Test Prep's programs, call (800) 501-Prep.

Tags: Educational Financial Planning // View Comments

Scared by the price tag of a school? Don’t take the first number as the final number. Tuition costs can be heavy on a family, but there are many options available through loans, grants, and scholarships. Here are five of the best ways to look for money when applying to school – at any level. Remember – you should never pay to apply to a scholarship. If a website or organization requests a fee, verify the validity of the scholarship.

1. Check with the institution’s financial aid office.

This seems like common sense, but don’t overlook the obvious. Checking with the financial aid office at individual schools, you will find each institution’s merit-based scholarships. Financial aid varies from school to school, so this is an essential step in your search.

2. Do well on your tests – especially the PSAT and SAT!

Besides looking good on your applications, testing well will open up numerous doors and qualify you for many different scholarships. If you score really high, you might be automatically considered for certain awards. You scores might also be required when applying to scholarships you find outside of schools.

3. Find local scholarships!

Rotary clubs, veteran groups, professional and trade organizations, and local companies all have scholarships. Some might be $100. Some might be $1200. Whatever you receive, no matter the amount, will help you pay for tuition and – later – be a great addition to your resume.

4. Use fastweb and other online search engines.

Online search engines should be free and are a great, quick way to look through thousands of lists quickly for scholarships that you qualify for. Fastweb is one of the best resources for scholarships. Entering your interests, hobbies, and academic interests, the search engine matches scholarships to your interests. You can also enter colleges that you’ve applied to.  In addition to scholarships, fastweb can also search for internships.

5. Check scholarships and grants through the U.S. government

Don’t forget Uncle Sam! The government has many scholarships and grants (besides loans) for all kinds of students. Filling out the FAFSA is the first step to qualifying. Then do research on your own. Check www.student.gov under “scholarships and grants.” The Department of Education is also a good resource, especially for graduate students, though the website can be dizzyingly bureaucratic. Just check under “funding” for different options.

_______________________________________________________________________

This post is titled "5 Ways to Find Scholarships" and was written by Marta Casey, a writer for Top Test Prep's team.

To learn more about Top Test Prep's programs, call (800) 501-Prep.

Tags: Educational Financial Planning // View Comments

After application submissions, who wants to fill out more forms? But with the new calendar year firmly established, taxes are on their way. Now is the perfect time to file paperwork for Federal Application for Financial Student Aid, or FAFSA, which is the form used to determine a student's eligibility for federal financial aid and grants. Here are a few tips on filing the FAFSA:

1. File No Matter What

Even if you expect your total family income or contribution to disqualify you from federal financial aid, filing the FAFSA will not work against you. Many scholarship and grant programs use the FAFSA to determine who its recipients will be. Not filing means giving up any chance of federal financial aid. Even if parents earn a substantial income, a student may be eligible for a grant or loan. State and university programs also refer to students’ FAFSA information to determine financial aid award.

2. Earlier Submission Means More Aid

Check individual school deadlines, but try to submit FAFSA forms as early as possible no matter what the deadlines are. The earlier FAFSA forms are submitted, the better chance students have at receiving awards. Many federal aid awards – including the Pell Grant, AC Grant, SMART Grant, FSEO Grant, Supplemental Educational Opportunity Grant, and work study – are given on a first-come, first-awarded basis. Submitting late might cut students out of certain forms of aid, or shrink their overall award.

3. File Taxes Now for FAFSA Information

The first way to ensure early submission of FAFSA forms is to file taxes early. Almost 80% of FAFSA information comes from IRS tax data. If you do not yet have pay stubs or W-2 forms, estimate based on last year’s information and attach copies of last year’s forms. Once you get all the necessary forms and complete your tax return, you can file a FAFSA correction if needed.

4. Coordinate and Communicate Family Finances

Federal financial aid ability depends on the need of a family, which is determined by weighing college expenses against a family’s annual income and savings. The greater the need of the family, the larger the amount of aid for the student. A family can raise its aid ability by putting more than one student through school simultaneously. This includes parents who might be returning to school, too. A little coordination can increase aid dramatically.

Communication between families and to financial aid offices is also essential. If family income was higher than usual, inform the school’s financial aid office to explain why it was unusual and unlikely to happen again. On the other hand, if a family member had a layoff, salary cut, or any medical expenses, families can appeal to have their financial aid package adjusted. Send  documentation of these circumstances with a notification to the school.

5. Remember to sign all required lines

Last but not least, make sure all required signatures are complete! Missing a signature can deny a complete FAFSA. This is a simple mistake, but commonly cited in college financial aid offices.

Tags: Educational Financial Planning // View Comments

Even if money is a problem, don’t give up on college or finding ways to pay for college – you can find a way to make it work. There are many scholarship and financial aid programs and other ways to find the money.

Scholarships
Scholarships are a great way to pay for college because you don’t have to pay them back! Diligent students have a good chance of gaining a scholarship. To increase your chances of getting the money you need by the time you graduate high school, start looking for scholarships during your junior year.

Most scholarship programs require applications. The process for applying can be as simple as sending an application form, or as complicated as writing a number of essays and providing detailed transcripts. Searching online is a good way to find scholarships.

Merit-based
There are a number of merit-based scholarships available. Some pay your entire tuition; most pay a portion. If you’re a hard-worker with good grades and decent test scores, you can apply for merit-based scholarships, specific university scholarships and other nonprofit scholarships intended to attract talented students.

Need-based
Need-based scholarship programs are for students in need of money for college. These are often run by colleges and are based on a combination of your income and your family’s income. Some are specific to a major or location. Research the need-based scholarship programs at the colleges you wish to attend to determine if you’re eligible.

Other types
Along with traditional scholarships, you will also find state-run programs, business-run scholarships and money for students of specific religions or ethnicity. There are also special scholarships for your sports and artistic talents. Ask your school guidance counselor for details!

Financial aid programs
Financial aid programs are another good way to pay for college. Usually combining grants and loans, they are often run on a first-come, first-served basis, so apply early.

Government financial aid
To determine your eligibility for financial aid, such as grants and low-interest government loans, fill out the FAFSA (Free Application for Federal Student Aid). Familiarize yourself with this application before applying for financial aid.

Other programs
Some colleges run their own aid programs aside from scholarships. These are specific to each school, so research the financial aid programs at the schools to which you intend to apply.

Other options

Work
You can always work to pay for school, but be careful not to overwork. As a college student, you will already have a large amount of work on your plate.

Accelerated programs
Some schools run accelerated degree programs that allow you to complete classes in a less-than-usual amount of time. These programs may help you graduate sooner, but you might find the pace overwhelming

Getting a college education can be expensive, but it is worth every dollar. Use these techniques to get started on your quest to pay for college. If you need more help, talk to your school counselor or the admissions office at a college nearby.

Ross Blankenship is Founder of Top Test Prep and an education expert and admissions consultant.

This article appeared in Next Step Magazine and was written by Ross Blankenship.

Tags: Educational Financial Planning, Scholarships // View Comments

Recommended College Planning Resources

Career Search

The following site will help you in your college search.
www.careerkey.org

Test Registration

As the time for testing looms on the horizon, you should be mindful of deadlines and registration requirements. Almost equal numbers of students took the ACT and the SAT during the most recent admission cycle. Check the following sites for more information about tests, dates and registration deadlines.
www.ACTStudent.org (ACT, PLAN)
www.CollegeBoard.com/index.html?student (SAT, PSAT, AP, CLEP)

List of Standardized Test Optional Colleges

The rapidly growing list of accredited, four-year colleges and universities that do not require the submission of ACT or SAT scores as part of their admission requirements is nearing 750! You can see the entire list at:
www.fairtest.org/optinit.htm

ACT/SAT Conversion Charts

The ACT and SAT are very different college entrance test. Now that every college in the country will accept either test result, you might be interested in an approximation of how your result equates with scores on the “other” test.
www.collegeboard.com

Formula for U.S. News & World Report College Rankings

Check this link to learn more about how the editors at U.S. News & World Report arrive at their results.
www.usnews.com/usnews/edu/college/rankings/about/weight_brief.php

Alternative to Rankings

The National Survey of Student Engagement (NSSE) conducted annually by the Indiana University at Bloomington provides a comprehensive overview of outcomes for participating institutions. To learn more about this resource, visit their site and go to the “Students and Parents” page.

http://www.nsse.iub.edu/index.cfm

Scholarship Searchs

Looking for scholarships? The following sites will give you access to scholarship information and help you assess your viability as a candidate to receive merit awards.
www.FinAid.org
www.FastWeb.com
www.Internationalscholarships.com

Financial Aid

It you are looking for guidance in completing the financial aid process or you have received a financial aid award and aren’t quite sure what to make of it, these sites provide a good orientation to the terms, the construction of financial aid award letters and how much assistance you are actually receiving.
www.FinancialAidLetter.com (“decode” financial aid awards)
www.FinAid.org (comprehensive resource)
www.fafsa.ed.gov (complete/submit FAFSA to determine eligibility for federally-administered need-based aid)
profileonline.collegeboard.com/index.jsp (complete/submit Profile to determine eligibility for institutionally awarded need-based aid)

Generic Application Forms

Interested in exploring application options that will allow you to complete one form from which you can generate applications to multiple colleges? The following links take you to websites for two membership organizations that provide such opportunities.
www.commonapp.org
www.universalcollegeapp.com

National Association of College Admission Counseling (NACAC)
NACAC is the professional association of which most colleges and universities are members. This site includes a comprehensive orientation to the college process for students and their parents covering topics such as college preparation, scholarship scams, international student resources and online resources.
www.nacacnet.org/MemberPortal/Students/

Athletic Recruitment and Admission

If you are an athlete who is eager to continue competing in college at any level, scholarship or non-scholarship, you need to be aware of the rules that govern the manner in which you may be recruited and considered for admission. The National Collegiate Athletic Association (NCAA) and the National Association of Intercollegiate Athletics (NAIA) are the two associations of which most intercollegiate athletic programs are members. Visit their sites to make sure you are aware of the rules before you become too heavily involved in the recruitment process.
www.ncaa.org (go to Academics & Athletes)
naia.cstv.com

If you have any questions about any of these sites, don’t hesitate to call or contact us about getting college counseling. Call 800-501-PREP.

Get help today with our college admissions counseling

Tags: College Counseling, Educational Financial Planning, Tutors // View Comments

It may very well be the last thing that is discussed when planning for college, but financial planning is serious business. Secondary education can be expensive, and without proper planning some families are left struggling to find the money.

College today can cost up to $40,000 per year, for tuition and housing alone. By planning early and saving often, you can ensure that your child gets the best education possible.
Here are some quick tips to get you started.

1. Saving: Of course the easiest way to pay for college is to save the money. Unfortunately, for many families, saving enough simply isn’t possible.
You should still save whatever money you can. Parents can contribute to their own education fund, and a student can save their money throughout their high school years. Instead of expensive cell phone plans, consider putting that same money into a monthly savings account.

2. Scholarships: The next route to consider is scholarships. This money doesn’t need to be paid back, and can be a big help in paying for college. Scholarships are available from businesses, colleges and high schools, individuals, religious groups, and more. There are both merit based and need-based scholarship programs.
A student should apply to as many scholarship programs as they can. There are online search services that can help. You can find other scholarship programs through your school; high school counsellors can be a big help in this area.
The application process for scholarships is sometimes as complicated as the college application itself. The earlier you start with this, the more chance you have at success.

3. Work-Study Programs: Another option is a work study program. This government run program pays colleges to employ students in part time jobs, in exchange for tuition and housing. This program is largely needs based, and works on a first come first serve basis.

4. Tax Benefits: There are certain tax benefits for parents (and students) paying for college. The Hope Scholarship Credit and the Lifetime Earning Credit are both prime examples. Consider having your taxes done by a certified accountant for the college years. They know how to find the deductions, and if paying for the first year saves you $2,000 in income tax, then that money can be used towards the next year. There are also benefits for interest earned on accounts used to pay for college.

5. Student Jobs: One way many students end up paying for college is through work. A part time job after school is another way to pay for college.

6. Financial Aid: Probably the most common way to pay for a college education is through financial aid. Each college will have their own programs, but they all require the FAFSA. This is where you should start. Again it is a first come, first serve basis. Financial aid packages usually come as a combination of loans and grants, and they are based on the family’s needs. Most colleges require the financial aid application along with your college application.

Don’t automatically write off a better college because of its cost. Save early, and work to find scholarships. By doing so you are getting the right start. You should consider a college education an investment, thus do what it takes to get one.

Top Test Prep helps students and parents make informed decisions before and after their admission.

This article on college financial planning tips was written by education expert, Ross Blankenship.

Tags: Admissions Advice, Educational Financial Planning // View Comments

We’re available if you have any questions about our test prep and admissions consulting services. If you’d like a free consultation, fill out the form at, http://TopTestPrep.com

Tags: Admissions Advice, Admissions Interviews, College Applications, Educational Financial Planning, SAT Prep, Test Prep, Tutors // View Comments