FAFSA goes mobile

Applying for financial aid has just become easier - the Free Application for Federal Student Aid (FAFSA) has gone mobile.  The FAFSA is the first step in nearly all student aid - it's the application for federal student aid (for both grants and federal loans), is used by many states to determine state grant aid, and is required by most colleges and universities to apply for institutional scholarships. This summer, the US Department of Education updated the FAFSA website to be mobile friendly, allowing students and their families to complete the application on their phone or other mobile device.  They also developed an app (myStudentAid) that is meant to provide one-stop shopping for all things financial aid.

The app, which is available for both iOS and Android devices, allows students to complete the FAFSA, edit and manage their federal student aid ID (FSA ID), view federal student loans and loan history, access financial aid information on studentaid.gov, and eventually students should be able to use the app to make student loan payments.  The app also customizes the FAFSA experience based on the type of user (student or parent), making the process easier and less confusing. Perhaps best of all, it provides access to important financial aid information and applications on the devices where we spend much of our lives.

Remember, the application window for the FAFSA opens October 1, and absolutely needs to be completed by March 2 to qualify for California state aid.  The sooner you complete the application, the better, as some types of financial aid are first come, first served, and have limited availability.  And with the added convenience of the mobile app, there's no excuse to put it off.

To download the app, visit Google Play or the Apple App store at the links provided below.

Google Play

https://play.google.com/store/apps/details?id=com.fsa.mystudentaid

Apple App Store

https://itunes.apple.com/us/app/mystudentaid/id1414539145

Examining Student Debt

We've all heard the horror stories about student debt.  Previous posts have examined the value of a college education, and the importance of investing in your future through education.  While I firmly believe that higher education is worth the investment, even if you might need to take out some student loans, I think we can all agree that the best practice is to minimize student debt as much as possible.

Below are three strategies to help minimize your student debt:

1. Apply for Financial Aid

Complete your Free Application for Federal Student Aid (FAFSA) on time in order to maximize your chances or receiving grant money to help pay for college.  Deadlines vary by state; for California, the deadline for state grants is March 2.  Be sure to research and apply for private scholarships as well, and contact the financial aid office at your college to explore scholarships offered by the college.

2. Explore all options

And don't make assumptions.  Sometimes colleges and universities that at first seem more expensive actually end up with a lower net cost (the price you actually pay).  An organization called Lend EDU completed a study of average student loan debt by state and by individual universities. The results may be surprising.  California, with high cost of living and relatively high tuition rates for its public university system ranked #4 in lowest average debt per graduate. This is most likely due to the availability of state grants and institutional aid. Which state has the lowest debt per graduate?  Utah. Looking at specific colleges, many seemingly expensive private schools top the list for lowest amount of student debt among their graduates.  Again, this is likely due to generous financial aid policies; although the tuition at some of these universities can top $35,000 per year, many of them are committed to meeting students' full financial need. This means that many students are eligible for grants (free money) to fund their education, eliminating the need for student loans. Which schools have the highest average debt for graduates?  Not surprisingly, that list is full of art and design schools, which tend to be expensive, without much in the way of financial aid.

This is why many counselors (myself included) recommend that students apply to at least 4 colleges or universities, including a mix of public, private, in-state and out-of-state.  With a broader range of choices, you are more likely to find a college with a financial aid package that meets your needs. Of course, you should not pick these colleges at random; you should look for a good fit based on a variety of factors, including average net cost (and possibly average debt of graduates).

3. Stay on Track

One of the surest ways to rack up debt is to spend extra time in college. More and more students are taking 6 or more years to graduate.  Every extra year in school results in added expenses and pushes back the time in which you are actually making money and benefiting from your investment in college. There are several things you can do to minimize the time you spend paying for college:

• Meet with your advisor early and often.  Without the guidance of your advisor, you may end up taking a bunch of classes you don't need, or getting behind schedule with classes that need to be taken in order, resulting in a longer timeline to graduation.
• Take a full load each term.  Obviously, you don't want to overload yourself to the point where you have difficulty passing your classes, but if you just take the minimum each term, it will likely add at least a year to your degree.
• Use campus resources and get a tutor if you need it.  Yes, this can be an extra expense, but if you fail the class, you will have to take it over (and pay for it again).

Everyone needs to decide for themselves the amount of student loans they are comfortable with.  Of course, the best option is to avoid them altogether.  Unfortunately, sometimes the only way to complete your education is with the help of student loans.  Using the strategies outlined above, you can minimize your need for student loans, and more quickly reap the financial benefits of your investment in your own education.

What you can do to prepare for college applications this summer

Summer is here, and while I encourage you to enjoy some rest and relaxation, there are many things you can do during the summer months, regardless of where you are in high school, that will make your college application season much less stressful.

Incoming freshmen and sophomores

College may seem a long way off, but it will be here before you know it.  Taking some important steps now can help you be ready when the time comes - much sooner than you think.

• Start thinking about what you enjoy and what you are interested in.  Take notes on what you're reading, where you head to in a book or magazine store, where your internet searches take you. In conversations, what makes you sit up and listen more closely?  What are you doing when you lose track of time?  You certainly don't need to decide on a career or a major now, but noticing what you enjoy will help you decide on a direction when you get to college.
• Start casually looking at colleges.  Maybe check out websites like Big Future, College Greenlight, Colleges that Change Lives, and others to get ideas of what's out there.  Talk to your friends about their college plans; see what they're looking at.  Ask adults in your life about their college experiences.  Start making your long list of colleges - jot down any college that sounds interesting to you. You'll dig a little deeper later.
• If possible, start visiting some colleges.  Start with the ones close by.  Even if you're not necessarily interested in that particular college, starting some visits now can help you notice what's important to you (Does the huge campus make you feel stressed?  Do the sporting and social activities sound like fun? Does the layout and architecture of the campus depress you - or possibly inspire you?)
• Get a job.  Summer work experience helps you build job skills, a successful work history shows responsibility, and gives you something to put on your college and scholarship applications.  
• Or find a volunteer or internship opportunity.  Colleges and scholarship committees are not just interested in your grades - they're interested in how you spend your time outside of school, how you interact with your community. Try to find something you're interested in and stick with it over time - colleges like to see that you have interests that you dedicate time to, not just a laundry list of random activities you do to pad your application.

Incoming juniors

It's time to ramp up your college preparations.  Yes, do take time to relax and enjoy the summer, but to make senior year less stressful, work on the following:

• Start researching majors and careers.  The College Board Website is good for this. The California Career Zone website is another good one.
• Get serious about your college search.  The following websites can help: Big Future, College Greenlight, Colleges that Change Lives.  College Scorecard is another good one, with information on average net cost, graduation rate, and post-graduation salary, as well as data on student debt loads, for almost 4,000 colleges in the US. Talk to your friends about their college plans; see what they're looking at.  Ask adults in your life about their college experiences. Throughout your junior year, you should continue adding to your long list of possible colleges.
• If you haven't already done so, create an account at raise.me.  On this website, you create an account and enter information about your academic and extracurricular activities.  You can earn micrsoscholarships at almost 300 participating colleges and universities, and more are being added constantly.
• Get a job or internship, or volunteer.  See above for why this is important.
• If at all possible, visit colleges you may be interested in.
• Start thinking about when to take the SAT or ACT.  Many private colleges are moving away from this test requirement, but many schools (both private and public) still require it, so start getting ready.
• When you get back to school, make an appointment with your counselor.  Junior year is an important time for planning; deadlines come up fast in senior year, so it's important to be ready.

Incoming seniors

You guys have some serious work to do this summer.  Once school starts, you'll be hit with a whirlwind of deadlines, on top of your senior year academics, so a little preparation now can go a long way to reduce your stress later.  Some suggestions for your summer preparations:

• Continue researching majors and careers
• Narrow down your long list to your short list of colleges you plan to apply to.  I recommend applying to between 4 and 10 schools - by the end of the summer you should aim to have a pretty good idea of what those schools will be.
• If at all possible, visit the colleges on your short list.
• Check out the applications for these colleges and start crafting your essays.  If the colleges you're applying to use the Common App, you can see the essay prompts now, and even start working on your applications.
• Start working on your scholarship search.
• Decide who you will ask for letters of recommendation, and contact those people as soon as school is back in session.  You're much more likely to get a good letter if you give your teachers and counselor some time.
• As soon as school starts, make an appointment with your counselor.
• If you haven't already done so, sign up to take the SAT or ACT.  Your counselor may be able to provide you with a fee waiver if your family can't afford the testing fee.
• Get a job or internship, or complete some volunteer work.  Colleges and scholarship committees are not just interested in your grades - they're interested in how you spend your time outside of school, how you interact with your community. 
• Remember to include work experience and extensive family obligations (such as caring for siblings, grandparents, etc) on your application. Some students may not think that working at a fast food restaurant or doing house and yardwork for grandpa is something that colleges are interested in, but more and more colleges are realizing that some students may not have time for volunteer community service because they need to work or care for family members, and it turns out they do take this into account.

Finally, take a hike, go the beach or lake, and spend some quiet time thinking about your bright future!

Major Decisions

It seems that everyone has advice on choosing a major.  Given the topic of this week's post, I guess I'm no different.  However, in my typical fashion, I'm not going to tell you what to do so much as give you some things to think about as you muddle your way through making this important decision for yourself.

But I don't know what I want to do!

First, though, a slight detour.  In my conversations with students, I often hear "I think I'll just start at the local community college, because I don't really know yet what I want to study."  OK, fair enough.  This can be a wise decision and a good way to save money under the right circumstances.  However, keep the following in mind:

Does the community college have a wide range of options?

If your local community college has a wide range of fields to explore, this can be a good approach.  Some smaller colleges, however, have limited options, and if the point is to explore the possibilities, you may be limiting yourself.  Your experience at the community college may leave you unsatisfied, with no better idea of what you want to do.  When you eventually transfer (hopefully with most or all of your general education completed), you may find an exciting field to study, only to discover you still have 3 or 4 years before you can complete your degree.

What are you doing at the community college to help you decide?

Are you meeting with an advisor?  Doing some reflection and noticing what catches your interest? Looking for internships or other work experience in possible fields? Unfortunately, many of the students I talk to who start at a community college are no closer to knowing what they want to do at the end of the two years (or three, or four....) than they were at the beginning of the process.  It turns out that putting off the decision for a couple years doesn't necessarily make it any easier when it comes time to decide.

So what should I do?

Advice on how to choose a major generally falls into two categories:

1. Find a career path where you can make money, and choose a major that will help you find employment in that field.
2. Do what you love, and the money will follow.

Like I said, I'm not going to tell you what to do. After all, this is your life, not mine.  You have to live with your choices.  I will, however, take a moment to disagree with both types of advice listed above.  

To address the first point, I strongly encourage you to think about more than just average income when considering your future.  Spending 4 (or more) years pursuing an education primarily for the paycheck, then finding out you don't really enjoy that career is a recipe for misery.  While you make your way through your college education, take time to notice what peaks your curiosity, what you spend time on when you don't have to, and what subjects you really enjoy. Also keep in mind that most careers have several different entry pathways, and most majors can lead to several different career options.  In other words, don't get too tied down to a particular major for a particular hypothetical career, particularly if you haven't taken time to get some work experience in that field to see if you really like it.

On the other hand, if your intellectual passion is in a somewhat esoteric field with few clear career options, it may be really fun to study, but at some point you will need a job.  So, while "follow your bliss" may work for some, you also don't want to end up with a pile of student loans and a minimum wage job.

So consider this as a middle ground: figure out what fascinates you and sparks your intellectual curiosity, and study that.  If that happens to be a field with no clearly defined career path associated with it, incorporate some classes that will give you in-demand technical skills, like computer programming, GIS, data analysis, etc.  The communication and interpersonal skills (that is, the "soft skills") you develop through a liberal arts degree, combined with some high-demand technical skills, can be the perfect combination for many career fields.

Five Things Parents Need to Do to Help Students Prepare for College

Children grow up so fast.  Wasn't it just yesterday they were just learning to walk?  Before you know it, the years slip by and your baby is starting high school.  As they're making this transition into adulthood, what can you do to help them prepare for their future?

1. Help them explore their interests and talents

OK, nobody knows what they want to do for the rest of their life when they're 16.  Well, almost nobody.  And I'm not suggesting you pressure your child to make major life decisions at this time.  But if you thought the Kindergarten through 8th grade years went fast, high school will fly by even faster.  Helping your child think about possible career and education directions during the first few years of high school will really help when it comes time for college applications.

2. Encourage your child to connect with the school's academic counselor

The counselor knows a lot about what options are out there, and how the process works.  Take advantage of his or her expertise to gather all the information you can while considering your child's options.

3. But don't let anyone - including you - pressure your child to make decisions they're not comfortable with

Everybody has advice for high school students, and of course you have your child's best interests in mind.  But remember, this is your child's life - not yours - and although you can provide input and advice, it ultimately needs to be their decision.  Too much pressure on your child can backfire, causing them to completely shut down and make poor decisions, resulting in anger and frustration all around.  Be supportive, state your thoughts and concerns openly, and be clear about what you are willing to do to support your child, but accept that it is ultimately their decision.

4. Be open and honest about your family's financial situation and what financial support you can provide for college

This is a difficult topic for some families to discuss.  As a counselor, I work with many students who tell me they don't have any idea of their family's income because their parents won't talk about it - they just say "don't worry".  Again, I know this comes out of a loving intention, but it makes it very difficult for me to discuss college options with your child if I don't have any idea about the family's financial situation. Students may be eliminating some options as too expensive, even though they would qualify for significant financial aid. In fact, some schools are committed to meeting 100% of a student's demonstrated financial need, meaning that if the family income is very low, the student may get a full scholarship.  There are a lot of factors that affect financial aid, and I can't always determine how much a student will get, but I've had enough experience with this to give a general idea of what students in a given family income bracket can likely expect.  Without a general idea of family income, it severely limits my ability to accurately and effectively advise students.  To get a better idea of what your financial aid picture is likely to be, use the FAFSA4caster and the net price calculators available on all college websites.

5. Start having these financial discussions early

It takes a while to sort out the financial details of getting a college degree, and sticker shock can indeed be quite shocking.  Remember that the majority of students do not pay the full cost of attendance; roughly 2/3 of students receive some sort of financial aid, and over half of that aid is in the form of grants and scholarships rather than loans.  And early planning can help you to think about creative ways to reduce college costs and avoid loans (For more on college costs and financial aid, see these posts from 2013 or this post from 2015). During the course of my career, I have seen far too many students limit their choices because they ran out of time to figure out what was possible.

To sum it all up:

To sum up the advice in this post: start your planning (both academic and financial) early. It takes time to figure this all out, and senior year will be here before you know it.  Research financial aid, using the FAFSA4caster and net price calculators on college websites.  Work with your school counselor to help identify potential college options and to get an idea of how much it will actually cost YOUR family (which is likely different than the published cost of attendance).  And last of all, enjoy the ride, because it will be over before you know it.

Seven Things You Need to Know About Financial Aid

With the rising cost of college, and increasingly dire news about the student loan burden in this country, it's more important than ever to think carefully about financing college.  The following tips can help maximize your chances at getting financial aid:

1. Complete the FAFSA, and do it early!

FAFSA stands for Free Application for Federal Student Aid, and it is the first step in the process of applying for nearly all forms of financial aid, including some merit-based aid that does not depend on income.  Some types of aid are first come, first served, so the earlier you get your application in, the better.  You need to complete the FAFSA every year. The application is available at fafsa.ed.gov

2. If you are a California resident and meet eligibility requirements, the Cal Grant will pay the full tuition at a UC or CSU school.

And the income limits may be higher than you think.  To qualify for a Cal Grant, you need at least a 3.0 GPA (or 2.0 for the Cal Grant B, for lower income applicants), and a family income under $98,900 for a family of 4.  The Cal Grant will pay the full tuition at a UC or CSU school, and up to $9,000 per year at qualifying private schools in California.  Completing the FAFSA automatically submits an application for the Cal Grant. If you are a resident of another state, check to see if your state offers similar aid programs. More information about the Cal Grant is available from the California Student Aid Commission.

3. The net price of a college may be much less than its "sticker price".

Many colleges that look more expensive on paper actually have generous financial aid policies, making the net price for low and moderate income families much less than other schools that appear less expensive based solely on tuition prices.  Some expensive private schools will meet 100% of demonstrated financial need, meaning low-income students may pay nothing at all.  This financial aid may also cover living expenses like room and board and transportation.

4. Not all loans are created equal.

In general, federal student loans have better terms and better protections than private loans.  There are two types of federal loans: subsidized and unsubsidized.  Both types of loans allow students to wait until 6 months after they are no longer in school to begin making payments. The difference is that interest does not accrue on subsidized loans during the time the student is enrolled at least half time, and during the 6 month grade period after the student is no longer enrolled. Unsubsidized loans, on the other hand, DO accrue interest during this time, and if the interest is not paid, it is added to the principal amount, so the student then needs to pay interest on the interest as well as the principal. If you must take out unsubsidized loans, at least try to make the interest payments while you are in school (even though you are not required to make payments).

5. You should apply to 4 or more colleges.

Different schools have different financial aid policies, and completing a variety of applications increases the chances that one of the colleges will offer a financial aid package that works for you. Aim for a mix of in-state, out-of-state, public, and private colleges, and carefully compare financial aid offers before making your final decision.

6. It is sometimes possible to get more financial aid just by asking.

Seriously.  One student I recently worked with received an admission offer from her dream college, but the financial aid package didn't work for her.  She contacted the college to thank them for the offer but explained that she could not afford to attend.  They increased her financial aid by $10,000. This is more likely to happen at small, private liberal arts colleges than public universities. Of course, it's also more likely if you are an outstanding student or have some particular talent that makes you attractive to the college, but regardless of your circumstances, it never hurts to ask.

7. Even moderate and higher income students may qualify for some aid.

In California, the Middle Class Scholarship offers some aid to students with family income up to $120,000 per year.  Also, your eligibility for need-based aid depends on both your family income and assets AND on the cost of attendance.  So if your income is relatively high, and your Expected Family Contribution is $20,000, but you're applying to a school with a total cost of attendance (including room and board) of $30,000, you may be eligible for financial aid.

Six Great Websites for Your College Search

With over 4,000 colleges and universities in the US alone, the college search process can be overwhelming.  I generally recommend that students start the process of building their "long list" - a list of all colleges and universities they are interested in - as early as possible during their high school experience.  During freshmen, sophomore, and junior years, you should keep a list of all colleges that spark your interest - don't worry about specifics now, you're casting a wide net to capture all possible colleges that could turn out to be your dream school.  Towards the end of your junior year, you'll start sorting and narrowing down to get the list of colleges you will ultimately apply to.

But with so many options, where do you start?  The following tools can be helpful in generating your long list:

College Board: Search nearly 4,000 colleges and universities according to parameters you can set, including location, type of school, majors offered, support services offered, athletic opportunities, cost and average financial need met, and more.  For each college, there is a profile that includes a brief overview, application deadlines, majors and learning environment, campus life, application process, and cost and financial aid information.  I like this site because it's user-friendly and includes a lot of information in a consistent format - the profiles for all colleges are organized in the same way, so information is easy to find.  On each college profile, in the menu bar to the left is also a "see similar colleges" tab, which can help you find new schools you may not have thought of. If you have an account, you can save your college list. The college board website also has a wealth of other resources, including information on majors and a scholarship search.

College Greenlight: You need to sign up for a free account.  After entering some basic information about yourself, you can search colleges based on your interests.  Based on the colleges you choose, the site will suggest similar colleges you may be interested in.  You will also receive messages (within the site, not to your email) from colleges interested in students like you, which can give you some new ideas of colleges you may not have known about. There is a tool to compare colleges, and College Greenlight also provides information about college majors and has a scholarship search tool.

CollegeXpress: Again, you will need to sign up for an account (it's free).  The site offers a college search tool, where you can search based on location, majors, sports and activities, size, etc.  There is also a scholarship search tool.  My favorite thing about this site, however, is the "lists and rankings". These are not your US News and World Report generic rankings, these are lists created based on very specific factors - you can look at lists of the best schools for a certain major, but also by sport, and by factors such as "Colleges for the Independent Learner" or "Colleges for Students Slow to Make Friends".  The lists can be useful in finding colleges of interest, of course, but they can also help you figure out what's important to you in your college experience - including some things you may not have thought about before - like "Schools with Lots of Cooperative Education Options."

And for when you're a little farther along in your search, and are looking to compare colleges based on affordability and college outcomes:

The Chronicle of Higher Education: College Completion: This website allows you to compare colleges based on a variety of factors, including freshman retention and graduation rates (both 4- and 6-year).  This is useful because many websites only give 6-year graduation rates.  The information on this site allows you to see the percentage of students who graduate in 4 years, which is important because graduating in 4 instead of 6 years will obviously save a lot of money - two full years of colleges expenses.

College Scorecard: This site lets you filter by degree type, major, location and other factors, and compares colleges based on average annual cost, graduation rate, and average salary of graduates.  If you click on a particular college, it provides more information, including a breakdown of average cost for different levels of family income, average debt of graduates, and more information about the school.

And to help pay for college:

Raise.me: Sign up for a free account, and earn microscholarships at over 250 participating colleges.  Students document achievements (good grades, extracurricular activities, taking the PSAT or SAT, taking an AP test, community service) to earn microscholarships from participating colleges and universities.  If you end up attending one of those schools, the money earned will be awarded through your financial aid office.

Taking some time during the first three years of high school to research colleges and create a college list will save you a lot of stress and frustration senior year.