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Friday, July 18, 2014

Getting your children involved in saving for college

Real Vail – Jeff Nelligan

“Most articles about college planning focus on advice for parents or other adults who expect to pay the cost for a younger person’s education. But what about the beneficiary who plans to attend college? Although most young people don’t have the assets for college savings that their elders do, being part of the planning process can be educational, offering financial lessons for the future.” (more)

Monday, July 14, 2014

Parents: Stop Taking Out Loans For Your Child’s College Education

Forbes – Robert Farrington

“It’s almost time to write that first check for your child’s first year at college. Ouch. Looking at that first statement from your child’s university can be painful – even if they are attending a public college, you’re going to be paying several thousand dollars per year. It’s not cheap.” (more)

Saturday, July 12, 2014

Survey: Long-Term Effects of Student Loans Worry Parents

Education News – Grace Smith

“According to a Discover Student Loans survey, most parents are worried about the long-term impact of students loan debt. The survey included 1,000 adults with children 16-18 years old who are planning to attend college and was conducted by Rasmussen Reports, an independent survey research firm.” (more)

Friday, July 11, 2014

California Community College Students Taking Longer To Graduate

Education News – Kristin Decarr

“A study released this week from the Campaign for College Opportunity found that almost half of the 64,000 students enrolled in community colleges in California need twice the traditional two-year dedication to graduate with an associate’s degree.” (more)

Thursday, June 26, 2014

Global education summit raises £16.8bn

BBC News – Sean Coughlan

“An international summit on supporting education in developing countries has received pledges worth £16.8bn…The summit, held in Brussels on Thursday, brought together education and international development ministers, aid organisations and United Nations agencies.” (more)

Tuesday, June 24, 2014

Tuition financial aid on the way for middle-class California families

The L.A. Times – Larry Gordon

“Some financial relief is in sight for thousands of middle-class students at California’s public universities, under a new and unusual state program that will provide aid to families that earn up to $150,000 annually.” (more)

Monday, April 21, 2014

University Education, a Wise Investment?

News Herald – Juliann Talkington

Juliann

For the past forty years, college has been a right of passage – a place to have fun, make friends, and grow up. In the 1950s, 60s, and 70s a college degree of any type opened the door to high quality employment and above average compensation.

 

Then technology began to change and K-12 education faltered. High school graduates no longer had the skills employers needed for many jobs. In an effort to fill job openings with skilled personnel, employers began to require college degrees for a wider range of assignments.

 

These new employment requirements caught many families off guard. They had not planned for post secondary education, but wanted to provide their children with reasonable job prospects. To fill the gap many families obtained loans to cover the cost of college education.

 

At first the loans made financial sense, because the cost of college was low compared to income potential. This meant graduates could pay back loans quickly after graduation.

 

However the increase in demand for college education led to tuition increases as colleges and universities rushed to add programs and facilities. As the cost of university education increased, the payback period for loans increased as well – moving from a few years to decades.

 

At about the same time technology was radically changing the workplace. Low cost computer and communication technologies reduced the number of people required for most jobs and made it possible for companies to fill openings with lower cost workers from overseas. Most high quality job openings now require strong math and science skills, weak areas for most U.S. citizens.

 

U.S. colleges and universities have been slow to adjust to the new workplace demands. Many schools are still offering degrees that are useless in the 21st Century. This means students are graduating with poor job prospects and high debt.

 

According to Clayton Christianson, Harvard University Professor and expert on disruptive change, this is an equation for disaster. He predicts that over half of the colleges and universities in the U.S. will fail within the next 15 years because they are not offering a useful product.

 

Parents and students need to take proactive steps to avoid problems. Young people should be completely proficient in international level math and science by the end of grade 12. Parents need to confirm a college is financially stable before their child enrolls. Then young people need to select degrees that include advanced math and science and build strong communication skills.

 

Monday, April 14, 2014

Making a financial stretch is key to saving for college

Reuters – Liz Weston

“Parents who aren’t saving for college could learn a lesson or two from low-income parents who do.”(more)

Sunday, April 13, 2014

Paying Off Student Loans Puts A Dent In Wallets, And The Economy

NPR – Staff Writer

“Weighing in at more than $1 trillion, student loan debt is now larger than total credit card debt. Morning Edition recently asked young adults about their biggest concerns, and more than two-thirds of respondents mentioned college debt.”(more)

What You Don’t Know About Financial Aid (but Should)

The New York Times – Richard Perez-Pena

“In fact, consumers have more tools than ever to decipher college prices and financial aid. College websites are required by law to have net-price calculators, to help people estimate what they would really pay, rather than relying on inflated sticker prices.”(more)