If you watched President Obama's State of the Union or have been following the media reports about his agenda you have probably seen a headline on "Free Community College" like this story in the New York Times. In addition, you might have also heard about other plans to tax withdrawals from 529 savings accounts - which are investment funds specifically for the purpose of paying for college.
So you may be asking, aren't these two policies in conflict? On one hand you are proposing free community college, but on the other hand you are penalizing families who would use 529 funds to cover attendance at four-year colleges. Aren't community colleges inexpensive anyway and 4-year colleges where cost relief needs to come from? A very good point.
Let me try to explain what the President has in mind and how it might impact you.
Free Community College
Yes, you heard it right. The President is proposing that all who enroll in a community college, earn at least a 2.5 grade point average, enroll consistently and at least part time can get their community college tuition covered by a program that would be funded by a combination of federal and state dollars. So right off the bat, you can see two major hurdles for the President. He would need both the Republican controlled U.S. Congress and state legislatures across the country to ratify the plan. Many think this makes the proposal dead on arrival. However, there are elements of the proposal that could survive. One particular thing to watch is whether the federal government gets involved in the issue of poor community college graduation rates. Key to the plan was that community colleges participating in the program would have to make some significant changes to student support systems and be accountable for graduation rates. David Brooks makes the case for preserving that part of the plan and it could be a component families looking for affordable college options might monitor.
Taxing 529 Accounts
On the flip side. President Obama is proposing taxing withdrawals from 529 savings accounts. I have written about the value of these accounts in a previous post as a way to save for college. The tax is part of the President's "Middle Class Economics" strategy. The idea is to tax the earnings of from investments, which would include 529 plans. His argument is that a high percentage of families who invest in these plans are higher income homes that make over $200,000.00 per year. The White House argues that the tax would be levied on the students, not the parents and because students are typically low income, the tax would be mitigated by their low earnings. The bottom line here is that to avoid these taxes, you might have to consider having your son or daughter file taxes independently and count the 529 funds as income. However, unless they have developed a wiz bang app for the Iphone and are taking down serious money, the tax would be mitigated or eliminated because of their standard deduction and low income.
Tax Credit for College Costs
The President also proposes consolidating and simplifying the number of tax credits for those paying tuition for college. The proposal would consolidate existing programs into the existing American Opportunity Tax Credit (AOTC). The full tax credit of up to $2,500.00 is available to individuals who have an adjusted gross income of $80,000.00 or less or married couples with incomes of $160,000.00 or less. By consolidating existing programs under AOTC, he hopes more families will access the program. In addition, he is expanding access to the program for those students who enroll less than half time. His hope is that the losses from 529 plan will be more than compensated for by greater participation in AOTC.
Ending Student Loan Interest Deduction
The final component of the plan is to end the deduction on interest from student loans. The argument for eliminating the deduction is that the benefit reaped by borrowers is quite low, usually no more than about $100.00 and that those resources could be more effectively utilized to cover the costs for students who are currently enrolled in college. The fact of the matter is that you would need to be in repayment mode on your loans to benefit, which means you are not enrolled in college. It makes more sense to put money toward supporting students who are in college.
It very well may be that none of the proposals here ever see the light of day. On the other hand, education issues and workforce training are high priorities for both parties, so I suspect that something will be passed. College Prep Pop will be looking for proposals from the Republicans and do our best to keep you informed of what is happening.
Friday, January 23, 2015
Monday, January 12, 2015
Picking a 4-year Friendly College
How do you find a college that will help me graduate in four years? It's not easy. According to federal data, only 50 of the 580 public 4-year colleges in the country graduate over half of their students in 4-years. I would not suggest you concentrate only on those 50 colleges, I would encourage you to ask some pretty hard questions of campus representatives when you go on college visits.
Here are some important things we will be looking for this summer when we take Ben on some college visits.
Does Your College Offer Banded or Capped Tuition?
While most colleges require you to pay a per credit tuition rate, some colleges cap the tuition you would pay at the tuition rate for 12 credits, making credits 13 and above essentially free. In other words you pay the same tuition 15 credits as you would for 12. Since taking at least 15 credits a semester is what you need to graduate on time, you basically can get about a semester and a half of tuition covered by registering for 15 credits a term over four years at a school that offers capped or banded tuition.
Can I See a Semester by Semester Academic Map for my Desired Major?
Most parents remember perusing our course catalog and schedule for the courses in our major, but did anyone actually provide you a piece of paper or other resource that provided a suggested schedule of courses you should take each semester? Probably not. Many colleges are developing semester by semester schedules or academic maps for students who have decided on a specific major. A student who knows which courses to take each semester is more than likely going to enroll in those courses. Students who don't know which courses to take may not. Even if you are undecided, looking at the academic maps for a range of majors will go a long way to assisting you in making a choice of major.
If they have academic maps, make sure the schedule of courses add up to at least 15 credits, which academic requirements they fulfill (general education or major credit) and the grades necessary in the course to be competitive for a major. A student interested in a nursing degree, for example, probably needs to get a "B" or better in Biology to be competitive for that program.
Will the Courses on My Academic Map be Available?
Even if the college gives you a semester by semester map, there is no guarantee those courses will be available when you register for classes. You should ask the college if you can get some assurance that the courses you need will actually be available the term you need them. Many colleges have developed systems for predicting demand for courses to ensure enough sections are available to meet demand. Students should no longer tolerate closed courses.
Will my Advanced Placement, Dual Credit or Transfer Courses Fulfill Requirements for My Major?
Students think they are getting a head start on their degree by taking AP courses, enrolling in dual credit courses while still in high school or picking up a few courses at the local community college. While those credits may indeed be accepted by the college as elective credit or even general education credit, you should make sure that courses you take for the purpose of completing credits in your major are accepted by that program. The dirty little secret of many colleges is that they will not count credits earned outside of the college to complete major requirements. Be sure to ask the college if credits taken through AP, dual credit or other options do indeed meet major requirements. Ask whether there is an online resource for determining if course credits from other institutions will be accepted by the college. In some states there is a "transfer library" where you can look at any class from a state college and determine if it transfers to another state college. Most colleges have some kind of resource specifically for their college.
If you are transferring credits from an out-of-state institution that does not have a transfer agreement with your college, see if you can petition the credits in by providing a syllabus from the course, taking an exam or show examples of work completed in the course that will enable them to evaluate whether you met requirements. Don't get cheated out of getting major credit for courses that you have already taken and appear to fulfill major requirements.
I'm Undecided, How Will You Help Me Choose a Major?
One of the biggest reasons students don't complete a degree on time is because they switch majors or take too long to choose a major. We all know the story of starting down a program path, deciding it is not for us, doubling back and starting a new path. Many students think they know what they want to study or just delay the decision for as long as possible, accumulating a mish-mash of credits that don't add up to a degree.
To address these problems, colleges are inviting undecided students to choose a broad area of study called an academic focus that allows students to take a default set of courses that meet the requirements for a group of majors. For example, a student might choose an academic focus in Health Sciences and then enroll for a schedule of courses that meet the entry-level requirements for the majors in that focus area. In addition, the college offers advising services, such as a major selection workshop, to help students explore different majors within the academic focus. Finally, the college will ask that the student make a final decision on a major no later than the end of their first academic year, ensuring that they are on track for on-time graduation.
How Can I Make Up Credits If I Fall Behind?
Inevitably most students will get derailed on their path to a degree. Students may drop or fail a class. Life may get in the way as well - an unexpected illness or family obligation may require students to lower their credit load. In these cases, the college should have other options to help students to get back on track. Inquire about opportunities for students to make up courses on their academic map over summer terms, January terms, mini-semesters that start after the traditional semester start date or online courses. All of these options can help a student catch up and most colleges offer at least one of these options.
However, you should make sure that the courses available meet program requirements and also don't cost more than a traditional class.
If you receive financial aid, make sure the courses will be covered by your financial aid package. Summer classes for example, sometimes cost more and are not covered by financial aid.
In the end, it is up to the student to take the necessary steps to complete their degree on time. However, your college should be your partner as you seek to achieve that goal, not an obstacle. Asking some of these questions will determine if a college is committed to you completing your degree on time.
For institutional examples of these college support strategies - refer to the hyperlinks embedded in the text of this post.
Here are some important things we will be looking for this summer when we take Ben on some college visits.
While most colleges require you to pay a per credit tuition rate, some colleges cap the tuition you would pay at the tuition rate for 12 credits, making credits 13 and above essentially free. In other words you pay the same tuition 15 credits as you would for 12. Since taking at least 15 credits a semester is what you need to graduate on time, you basically can get about a semester and a half of tuition covered by registering for 15 credits a term over four years at a school that offers capped or banded tuition.
Can I See a Semester by Semester Academic Map for my Desired Major?
Most parents remember perusing our course catalog and schedule for the courses in our major, but did anyone actually provide you a piece of paper or other resource that provided a suggested schedule of courses you should take each semester? Probably not. Many colleges are developing semester by semester schedules or academic maps for students who have decided on a specific major. A student who knows which courses to take each semester is more than likely going to enroll in those courses. Students who don't know which courses to take may not. Even if you are undecided, looking at the academic maps for a range of majors will go a long way to assisting you in making a choice of major.
If they have academic maps, make sure the schedule of courses add up to at least 15 credits, which academic requirements they fulfill (general education or major credit) and the grades necessary in the course to be competitive for a major. A student interested in a nursing degree, for example, probably needs to get a "B" or better in Biology to be competitive for that program.
Will the Courses on My Academic Map be Available?
Even if the college gives you a semester by semester map, there is no guarantee those courses will be available when you register for classes. You should ask the college if you can get some assurance that the courses you need will actually be available the term you need them. Many colleges have developed systems for predicting demand for courses to ensure enough sections are available to meet demand. Students should no longer tolerate closed courses.
Will my Advanced Placement, Dual Credit or Transfer Courses Fulfill Requirements for My Major?
Students think they are getting a head start on their degree by taking AP courses, enrolling in dual credit courses while still in high school or picking up a few courses at the local community college. While those credits may indeed be accepted by the college as elective credit or even general education credit, you should make sure that courses you take for the purpose of completing credits in your major are accepted by that program. The dirty little secret of many colleges is that they will not count credits earned outside of the college to complete major requirements. Be sure to ask the college if credits taken through AP, dual credit or other options do indeed meet major requirements. Ask whether there is an online resource for determining if course credits from other institutions will be accepted by the college. In some states there is a "transfer library" where you can look at any class from a state college and determine if it transfers to another state college. Most colleges have some kind of resource specifically for their college.
If you are transferring credits from an out-of-state institution that does not have a transfer agreement with your college, see if you can petition the credits in by providing a syllabus from the course, taking an exam or show examples of work completed in the course that will enable them to evaluate whether you met requirements. Don't get cheated out of getting major credit for courses that you have already taken and appear to fulfill major requirements.
I'm Undecided, How Will You Help Me Choose a Major?
One of the biggest reasons students don't complete a degree on time is because they switch majors or take too long to choose a major. We all know the story of starting down a program path, deciding it is not for us, doubling back and starting a new path. Many students think they know what they want to study or just delay the decision for as long as possible, accumulating a mish-mash of credits that don't add up to a degree.
To address these problems, colleges are inviting undecided students to choose a broad area of study called an academic focus that allows students to take a default set of courses that meet the requirements for a group of majors. For example, a student might choose an academic focus in Health Sciences and then enroll for a schedule of courses that meet the entry-level requirements for the majors in that focus area. In addition, the college offers advising services, such as a major selection workshop, to help students explore different majors within the academic focus. Finally, the college will ask that the student make a final decision on a major no later than the end of their first academic year, ensuring that they are on track for on-time graduation.
How Can I Make Up Credits If I Fall Behind?
Inevitably most students will get derailed on their path to a degree. Students may drop or fail a class. Life may get in the way as well - an unexpected illness or family obligation may require students to lower their credit load. In these cases, the college should have other options to help students to get back on track. Inquire about opportunities for students to make up courses on their academic map over summer terms, January terms, mini-semesters that start after the traditional semester start date or online courses. All of these options can help a student catch up and most colleges offer at least one of these options.
However, you should make sure that the courses available meet program requirements and also don't cost more than a traditional class.
In the end, it is up to the student to take the necessary steps to complete their degree on time. However, your college should be your partner as you seek to achieve that goal, not an obstacle. Asking some of these questions will determine if a college is committed to you completing your degree on time.
For institutional examples of these college support strategies - refer to the hyperlinks embedded in the text of this post.
Tuesday, January 6, 2015
The 4-year myth
Did you finish your degree in four-years? I didn't - I took five. Why didn't I finish in four? Because no one encouraged me to do so or fully explained to me what is required to complete in four years. In the end, I took out more students loans, which I am still paying off, and delayed my entrance into the workforce.
The fact of the matter is that graduating with a college degree in four years is more the exception than the rule in higher education today. In the past not finishing in four years might have been OK when tuition rates were more affordable. But today, the fact of the matter is that the cost of higher education is becomingly increasingly burdensome for many families and the prospect of paying for four, much less five or more years for a bachelor's degree is problematic.
A recent report entitled the 4-Year Myth, by my organization, Complete College America reveals that very few public colleges and universities graduate students in four years and that students who take longer than four-years end up paying much more for their education. The report also goes on to describe how colleges have created a culture that allows and, in some cases, encourages students to take longer than four years to complete a degree.
There are many practices by colleges that undermine students' efforts to complete a college degree on time. Among them are:
- Academic advising that allows or even encourages students to enroll in less than the required 15 credits per term that students need to complete a degree on time.
- Complicated processes for transferring credits from a previous college or dual enrollment program that results in students not receiving credit for courses they have taken.
- The lack of a clear academic schedule for new entering students that get students off on the right foot by taking general education or entry-level courses that apply toward a degree in their desired field.
- Poor advising to students who have not decided on a major, resulting in students wandering through the curriculum, taking courses that don't add up to a degree.
- Financial aid programs that consider full-time at 12 credits, resulting in substantially higher out of pocket expenses for students who seek to enroll in 15 credits or more per term.
Fortunately our report goes on to describe a set of strategies we call Guided Pathways to Success that colleges and universities can adopt to encourage more students to complete a degree.
In upcoming blog posts (I promise to be better about posting in the future) I will provide some pointers on how parents and students can better discern whether the colleges they are considering provide the support students need to graduate on time; We will explore questions you can ask when you visit campuses or information you can look for in college materials.
Students don't have to take five years or more to complete their degree!
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