Today's Economy vs. College Selection!

NACAC Survey Finds More Students Forgoing Dream Schools in Favor of Affordability

June 9, 2009 (Arlington, VA) – A majority (70%) of high schools reported an increase in the number of students who felt the need to modify their ambitions and choose more affordable options over their “dream schools.” The reverberations of a shaky economy were also felt on the college side, as 45% of colleges reported a decrease in the number of students accepting admission offers, also known as yield rates in the admission office, compared to 2008. The survey also found that 35% of the reporting colleges experienced budget cuts.

The 2008-2009 college admission cycle took place during a period of heightened economic uncertainty. Concerns over potential budget cuts, and unpredictable yield rates inspired NACAC to survey its high school and college membership for an evaluation of the admissions climate.

“The potential effects of the economy loomed large over this admission cycle,” stated Joyce Smith, NACAC Chief Executive Officer. “It appears that students and families were more concerned about cost, and plans about whether or where to enroll were changed as a result. The colleges’ experience this year is more difficult to generalize, though budget cuts and declining yield rates are indicative of a tougher year at many institutions.”

See below for a snapshot of the survey or view the full summary of results.

High School Survey

* Nearly three-fourths of high schools reported an increase in the number of students foregoing their “dream schools” in favor of more affordable options
* Overall, around one-third of all high schools reported budget cuts in the 2008-09 school year
* Nearly 60 percent of respondents indicated an increase in the number of students planning to enroll in public versus private colleges in Fall 2009

College Survey

* A majority of institutions reported increases for each of the following: inquiries (62 percent); total applications (62 percent); Early Decision applications (51 percent); Early Action applications (68 percent).
* Forty-five percent of respondents reported a decrease in their 2009 May 1 yield rates as compared to 2008
* About 35 percent of postsecondary institutions experienced budget cuts and 15 percent experienced staff cuts to the admission department during the 2008-09 academic year

About NACAC

NACAC is an Arlington, VA-based education association of more than 11,000 secondary school counselors, independent counselors, college admission and financial aid officers, enrollment managers, and organizations that work with students as they make the transition from high school to postsecondary education. The association, founded in 1937, is committed to maintaining high standards that foster ethical and social responsibility among those involved in the transition process, as outlined in the NACAC Statement of Principles of Good Practice.


Brad Asbury,
Access college Foundation

The true value of a collge education.

The escalating cost of higher education is causing many to question the value of continuing education beyond high school. Many wonder whether the high cost of tuition, the opportunity cost of choosing college over full-time employment, and the accumulation of thousands of dollars of debt is, in the long run, worth the investment. The risk is especially large for low-income families who have a difficult time making ends meet without the additional burden of college tuition
and fees.

In order to determine whether higher education is worth the investment, it is useful to examine what is known about the value of higher education and the rates of return on investment to both the individual and to society.

THE ECONOMIC VALUE OF HIGHER EDUCATION

There is considerable support for the notion that the rate of return on
investment in higher education is high enough to warrant the financial burden associated with pursuing a college degree. Though the earnings differential between college and high school graduates varies over time, college graduates, on average, earn more than high school graduates. According to the Census Bureau, over an adult's working life, high school graduates earn an average of $1.2 million; associate's degree holders earn about $1.6 million; and bachelor's degree holders earn about $2.1 million (Day and Newburger, 2002).


These sizeable differences in lifetime earnings put the costs of college study in realistic perspective. Most students today-- about 80 percent of all students--enroll either in public 4-year colleges or in public 2-year colleges. According to the U.S. Department of Education report, Think College Early, a full-time student at a public 4-year college pays an average of $8,655 for in-state tuition, room and board (U.S. Dept. of Education, 2002). A full-time student in a public 2-year college pays an average of $1,359 per year in tuition (U.S. Dept. of Education, 2002).



These statistics support the contention that, though the cost of higher education is significant, given the earnings disparity that exists between those who earn a bachelor's degree and those who do not, the individual rate of return on investment in higher education is sufficiently high to warrant the cost.

OTHER BENEFITS OF HIGHER EDUCATION

College graduates also enjoy benefits beyond increased income. A 1998 report published by the Institute for Higher Education Policy reviews the individual benefits that college graduates enjoy, including higher levels of saving, increased personal/professional mobility, improved quality of life for their offspring, better consumer decision making, and more hobbies and leisure activities (Institute for Higher Education Policy, 1998). According to a report published by the Carnegie Foundation, non-monetary individual benefits of higher
education include the tendency for postsecondary students to become more open-minded, more cultured, more rational, more consistent and less authoritarian; these benefits are also passed along to succeeding generations (Rowley and Hurtado, 2002). Additionally, college attendance has been shown to "decrease prejudice, enhance knowledge of world affairs and enhance social status" while increasing economic and job security for those who earn bachelor's degrees (Ibid.)

Research has also consistently shown a positive correlation between completion of higher education and good health, not only for oneself, but also for one's children. In fact, "parental schooling levels (after controlling for differences in earnings) are positively correlated with the health status of their children" and "increased schooling (and higher relative income) are correlated with lower mortality rates for given age brackets".


Brad Asbury,
Access College Fouyndation

College Rankings and College Selection

What do college rankings have to do with it anyway?

It is about this time of the year when colleges are ranked and students and their families sit up and take notice once again of the highest ranked schools in the nation. The comparisons are based on numbers reported by the colleges which tell just part of the story. As you know, choosing a college is lot more than just numbers and statistics.

Take a moment this year to forget about rankings and look at colleges in terms of what is best fit for the student. That best fit college will be THE best college for the student regardless of any ranking by popular press.

How do you begin to choose a college?

To begin, students should take the time to contact schools of interest by writing them a letter to ask for more information about the college. Not only will you be able to find out more about a college, the college will also notice you! Colleges love when students show interest in their college.

Now begin some real research into the colleges that interest the student the most based on their needs and personality. Here is where some of the numbers colleges provide are quite useful. The four and six year graduation rates are very important numbers. The graduation rates indicate the percentage of students who graduate in four and in six years. Those schools with higher four year graduation rates are more apt to get your student out of college in four years. Another number that is quite important is how much merit-based aid the school averages per student or how much of the financial aid package consists of merit-based aid. Review the strength of the academic programs at each school and research other aspects of campus that are important to the student such as location, groups and associations, and class size.

Don’t buy before you try!

When you have a list of schools narrowed down, go to visit the campus. Go on the campus tour but also set up appointments with Admissions, Financial Aid, Professors, and perhaps with current students. During your visit specify why you want to attend that college and come with a prepared list of questions. Anytime you visit a campus, be sure to notify the Admissions staff. They like to keep track of interested students and it could make a difference at admissions time.

Time to decide.

Choose carefully because college is a major investment in many ways. With all investments, you expect a big return, so choose a college which will yield the biggest returns in experiences, job placement, and career success. Base decisions on the best interest of the student and their career goals, not where their friends are attending or which college is closest to home. At this point, it may be time to go back and visit the campus again to make sure there is a great fit. When all is said and done, the college you select will be the best college for you.

Brad Asbury
Access College Foundation
basburycsa@yahoo.com

5 College Majors That Can Help You Get a Job

5 College Majors That Can Help You Get a Job


The job hunt may seem far away for college students now heading back to campus, but the process of making yourself an appealing candidate actually begins during school – and as early as when you choose your major.


This year, as college students wrestle with a decision that once guided only post-baccalaureate small talk, they now may want to consider not only whether it will increase their chances of landing a promising job after graduation, but also whether it will help them enter a field that’s growing. With the unemployment rate near a 26-year high and once-steady industries (e.g., autos, finance, housing) in flux, the conventional wisdom that it doesn’t matter what you studied as an undergraduate might seem a little less wise.

Some majors, like those in the science and engineering departments, lay the groundwork with the basic information that’s needed to work in expanding industries like health care, software development and the environmental sector. In contrast, students interested in liberal arts or humanities majors – often linked to industries like education and media, which aren’t growing – will have to take internships and be more aggressive in networking to prepare themselves for their job search.

SmartMoney examined data from the Bureau of Labor Statistics (BLS) and the Milken Institute, an independent economic think tank, to find fields of study that may help upcoming job applicants. Here are five majors that are closely tied to growing industries.

Engineering

By 2020, U.S. manufacturers will need as many as 10 million new skilled workers, according to a June report by the Milken Institute. Mechanical and software engineers will make up a huge portion of those workers, says Perry Wong, a senior managing economist at the Milken Institute.

Mechanical engineers are already needed in almost all manufacturing firms, including those in aerospace, aircraft and defense, shipbuilding and computer-hardware design, he says.

“One of the biggest challenges for manufacturers is they can’t find enough mechanical engineers, in part because we don’t have a lot of American students going into this major,” he says. Mechanical engineer jobs typically involve designing and creating equipment and transferring a prototype from paper to physical machinery.

Software engineers are already in demand. The product life cycle of computers and electronics continues to advance, says Wong. The industry needs new engineers who can create original programs and update older ones.

Life Sciences

As baby boomers age and Congress nears an overhaul of the nation’s health system, the health-care sector appears unlikely to shrink any time soon.

By 2016, employment of registered nurses is expected to increase by 23.5% and dental hygienists and pharmacy technicians are projected to rise by 20%, according to the BLS.

The U.S. is a couple hundred thousand nurses short, and hospitals are starting to recruit nurses from overseas, says Joe Kilmartin, the managing director of compensation consulting at Salary.com, a human resources and consulting company. “That’s only going to get more critical over the next two to 10 years.”

If any version of President Obama’s health-care reform comes to fruition, we’re likely to see a bump in demand for health-care technicians, as well as more positions for information processing and digitizing health records, says Wong. The life sciences major is tailor-made for the broad health-care industry; majors go on to become health-care practitioners, administrators or pharmaceutical engineers, he says.

The BLS projects employment in health-care support services will increase by 27% between 2006 and 2016. The aging population will increase demand for rehabilitation centers and physical therapy facilities and spur growth in pharmacology research, says Linda LaTendresse, the assistant director of employer relations and recruiting at the University of California, Riverside. Demand for home care will increase, as will social work and counseling, says Jody Queen-Hubert, the executive director of co-op education and career services at Pace University.

Statistics

Statistics majors tend to be highly sought-after graduates and are often hired into lucrative positions straight out of college, Wong says.

Companies from all sectors look for statistics experts, including pharmaceutical and insurance companies and Wall Street firms. Pharmaceutical companies are especially interested in biostatistics majors who can create models to test drugs. Wall Street turns to statistics experts for their quantitative skills and large-scale modeling. However, these positions often require a PhD.

“You need statistical analysis to do anything regarding research and to assess various alternatives, whether it’s in alternative energy or health care,” says Stephen Leeb, chief investment officer of Leeb Capital Management in New York.

Environmental studies

The stimulus package that passed in February provides roughly $70 billion for the nation's energy sector; most of it is earmarked for green energy jobs and development.

More universities are starting to offer majors in environmental design and technology for students interested in entering the green sector, Wong says. Coursework focuses on new ways to generate power and includes engineering elements (e.g., how to improve a product’s efficiency) and applied science (e.g., how to reduce a carbon footprint). Jobs in the green sector include hybrid car engineering, solar panel production and sales, wind farm design, hydroelectric and geothermal power management and pollution control jobs among the nongreen sectors.

“Green-related jobs are certainly going to be a growing sector of the economy,” says Leeb. “We’re going to need to find alternative energies, either for environmental reasons or because energy fossil fuels are becoming shorter in supply.”

Companies in these industries will look for environmental, science or technology majors, but they’re also going to fill positions in accounting and sales to sell their products, says Trudy Steinfeld, the executive director at the New York University Wasserman Center for Career Development.

Demand for jobs in the traditional energy sector will also continue to grow, especially for petroleum geologists and engineers who can find better ways to extract the earth’s remaining fossil fuels, Kilmartin says.

Finance

Since early 2008, Wall Street has witnessed the end of Bear Stearns and Lehman Brothers, as well as thousands of layoffs. Still, options remain for students who major in finance, Wong says.

The investment banks aren’t hiring to the levels that they hired two years ago, and those who can’t land a job on Wall Street should look into opportunities at smaller banks, says Sally Pinckard, the associate director of undergraduate career services in the Olin Business School at Washington University in St. Louis. Middle-market banks, community banks and credit unions are relatively unscathed after the market downturn and are hiring. Consulting firms are also hiring, she says.

Financial scandals that surfaced over the past year are creating demand for more auditors, LaTendresse says. That means promising job prospects for accounting majors.

Students should also think broadly about what other sectors they may apply their finance expertise, Pinckard says. Almost all sectors need financial analysts and chief financial officers, she says.

Article from smartmoney.com
by AnnaMaria Andriotis

SAT vs. ACT: Both Test are Nationally Recognized

Article written By Mark Maier

Throughout their high school careers, prospective college students know about the importance of things like grade point average and extracurricular activities.

Unfortunately, when it comes time for standardized tests -- the SAT and ACT -- students often find themselves with many questions.

What is the SAT test?

The SAT Reasoning Test (formerly known as the Scholastic Aptitude Test and Scholastic Assessment Test) is a test used for college admissions in the United States. It is published and owned by a nonprofit organization, the College Board.

For more than 80 years, the SAT has aimed to gauge students' critical-thinking abilities. The test takes about four hours to complete, and it contains three sections: critical reading, writing and mathematics.

What is the ACT test?

The ACT, similar to the SAT, is another test used for college admissions. The American College Testing Program was introduced in 1959 as a competitor to the SAT. The ACT test is produced by ACT, Inc., a nonprofit organization.

Structurally, the ACT has few differences when compared with the SAT. Its format contains four sections: reading, English, mathematics and science. Including its optional writing section, which has been available since 2005, the test takes about three and a half hours to complete.

What is the difference between the tests?

Aside from their relative structures, the tests differ in a number of ways. They are scored differently, and their information is distributed differently.

The SAT's overall score is calculated by adding together its sections' scores, as opposed to the ACT's overall score, which is averaged for a composite score. While both tests feature multiple choice and essay questions, only the SAT penalizes students for incorrect answers. A perfect score for the SAT is 2400 points, while a perfect score for the ACT is 36.

Students who take the SAT are also subject to strict rules that require them to disclose all of their SAT tests to the schools to which they are applying. Students who take the ACT, however, may choose whether to disclose their scores.

Now that the ACT is formally recognized in all four-year U.S. colleges, the major difference between the tests remain a regional one. According to a USA Today article, the SAT is mainly taken by students who reside on the East and West Coasts, whereas the ACT is mainly taken by students located in the Midwest and mountain regions.

Which test should I take? Should I take them both?

While a student may take both tests, it is not required. Taking both tests may, however, improve their chances for college placement and scholarships because they may score better on one test than the other.

Otherwise, because of each test's level of recognition, there should be no preference for either students or their prospective colleges. While the SAT requires more time, the ACT is just as challenging; there is no "easier" test.

What is the best way for me score high?

There are many ways for students to boost their SAT and ACT scores but, as educational experts always say, the best way is to simply practice.

While a number of helpful practice guides and courses are available to students, one of the most common ways to practice is to take a preliminary run through the test. Both of the tests may be taken a number of times, as long as students are willing to pay the money. Because of the aforementioned scoring rules concerning the SAT, many students take the PSAT (or preliminary-SAT) to avoid having a lower SAT score reported to their prospective schools.

Of course, students must have a solid grasp of the subject matter if they expect to do well on a test. If students are applying to colleges, though, they should already have a good understanding of what these tests will require them to know. A good score, paired with good grades, should get them into the school they prefer.



Brad Asbury
Access College Foundation
basburycsa@yahoo.com

Economic Crisis

Economic Crisis

“Will the recent economic crisis have an impact on college bound teens?”
As the largest class of graduating high school seniors in America is completing college applications, a new study indicates their college plans are likely to change in response to the economic downturn. 50% of families polled are now limiting their child’s college choices to less expensive options and 54% of families are now considering in-state, public colleges. According to the ApplyWise and Next Step survey, 32% of families report their financial situation has changed in the past six months and so they are seeking more economical education options for their child. Another 38% say they are concerned about the economy and are now seeking more affordable college options. Interestingly, less than one-third of those polled say their college selection criteria have not been influenced by economic factors. 54% of parents report that recent economic events have changed the way they plan to pay for their child’s college education. When asked to select which financial resources they plan to access, they responded as follows:
•67% will apply for more need based scholarships
•62% of parents plan to have students work while in college
•53% plan to get more student loans
•30% of families will send a stay-at-home spouse back to work
•27% of families plan to take out a home equity loan
•11% plan to liquidate a retirement fund
•8% will borrow money from a relative

What people don’t realize is the negative effect the above strategies could have on aid eligibility. “Getting into college has become more competitive over the years and now paying for it will be a bigger challenge for many families,” said Dr. Kat Cohen, founder of IvyWise. “As families are forced to look for more economical options, it pays to consult experts who can help them identify potential financial resources and if the schools that would be a good fit for the student. Families need to be determined, not discouraged, at a time like this.

College Admissions FAQ

Question: What is the difference between a scholarship and a grant?
Answer: In the language of admission and financial aid offers, a scholarship and a grant are basically the same thing. Each is considered “gift aid” which means they do not need to be paid back. However, this doesn’t mean there aren’t some “strings” attached. Many scholarships and grants require the recipient to focus study in a particular major. Others have a grade average requirement to keep the scholarship or grant over the college experience. Students need to make certain they know the conditions under which they accept and can maintain gift aid.

FAFSA FAQ

What are “Untaxed Benefits”?
Answer: Untaxed income or benefits not reported elsewhere on Worksheets A and B, such as worker’s compensation, untaxed portions of railroad retirement benefits, untaxed portions of capital gains, Black Lung Benefits, Refugee Assistance, disability, foreign income that wasn’t taxed by any government, etc. For parents whose W-2 Forms show combat pay, any untaxed portion of that pay must be reported on Worksheet B and the full amount must be reported as income earned from work. Do not include benefits from flexible spending arrangements (e.g. cafeteria plans), student aid or Workforce Investment Act (WIA) educational benefits.

Early Decision vs. Early Action

As one applies to college, something that may come up is Early Decision and Early Action. Hopefully, this can help:
Early Decision
•You absolutely agree to attend the college if accepted.
•You may only apply to one college in the method of Early Decision
•You apply in October or November and receive an answer by December
•You may only apply to other colleges under the regular process
•If accepted, you must withdraw all other applications from other schools
•You will typically be required to give a non-refundable deposit by May

Early Action
•Similar to Early Decision, however, not binding
•You can apply in October or November and receive an answer by December
•If accepted, you may commit then, or in the spring
•You may apply to other colleges under Early Action
•You may apply to other colleges under the regular admissions process

Brad Asbury
Access College Foundation
basburycsa@yahoo.com

Time is of the essence

Time is of the essence

Fill out the FAFSA form early and plan for it. I think that's the one thing that people really overlook. People are often told to fill out the FAFSA, but they do it without preparation. I emphasize that planning is what makes the form useful.
Many aspects of the FAFSA are not straightforward, so it's essential to set aside sufficient time to read over the instructions. Filling out the FAFSA is generally not a quick 45-minute process or something to try to do during the Superbowl half-time — as one family did — and made mistakes.

The fundamental issue and therefore problem with the FAFSA is that people approach it like a tax-preparation form. Definitions and rules differ between tax forms and FAFSA forms, as to what are considered assets, investments, and household income.

One example of family situation: "If I'm divorced, my son is going to college, and he lives with his mom 95 percent of the time but I claim him as a dependent on my taxes, the student includes only the income and assets from the mom and not from the dad on the FAFSA form."

A few more things to keep in mind when filling out the FAFSA form. For income, the base year is the year before. For assets, it's the moment you submit the FAFSA form, what the assets are worth the day you file the FAFSA. It's easy to confuse the parent and student information, so watch carefully where you record what. The student sections, which come before the parent sections, refer to spouse because some students applying for financial aid are married.

When to fill out the FAFSA?
The sooner the better is the rule of thumb to use here. High school seniors and those already in college or trade school should aim to complete the FAFSA by Jan. 31, if possible. If you haven't completed your taxes yet, they suggest using estimates based on previous years tax returns to complete the FAFSA and sending an amendment later.

Submitting early can mean getting Pell grants before they are all given out. It can mean getting subsidized or Perkins loans, [in which the government covers the interest when you are in school], as opposed to unsubsidized.

Most people submit their FAFSAs in March or April, after they submit their taxes; but by then, many of the funds have already been allocated to other students. The bottom line is: The longer you wait, the less funds will be available. Even something like work-study is on a first-come, first-served basis.
The FAFSA generates the SAR (Student Aid Report). Three to four weeks after you file a FAFSA, it [the SAR] comes back to you in the mail, and that will have what they calculate to be your estimated family contribution.
Even high school freshmen can fill out an estimated form based on where they're planning to attend school, so they know what their savings goal needs to be. For example, if you're looking at Yale, you'll have a better idea whether it will cost your family $50,000 a year for you to attend - or $10,000. (See http://www.fafsa4caster.ed.gov.)

Brad Asbury
Access College Foundation
basburycsa@yahoo.com