Preparing Your Child for College
Preparing Your Child for College
A Resource Book for Parents
A NOTE TO PARENTS
It's never too early to think about college
-- about the
benefits of a college education and about ways
to put college
within reach academically and financially. Throughout
their
school years, students make academic and other
decisions that
affect whether they will be eligible to enter
college.
You -- working with others -- can help your child
make these
decisions wisely.
This resource book is designed to help
you with that
process. It will help you work with your child
and with your
child's teachers and guidance counselors, to ensure
that he or
she has the option of going to college. It will
help your child
to prepare academically for the rigors of college,
and it will
help you to plan financially for the costs of
a college
education. A good academic record on your child's
part and
sound financial planning on your part will help
ensure a menu
of opportunities when the time comes to decide
about college.
Although this book was written primarily as a
long-term
planning guide for parents, guidance counselors
and teachers
will also find it useful and informative.
This book will help you to
-- Set high expectations for your child's
future;
-- Know what college options are available;
-- Plan your finances with college in mind;
and
-- Know what financial assistance your child
may be eligible
to receive.
To ensure that today's students will be
able to live,
work, and compete in the 21st century, the U.S.
Department of
Education and the Nation's governors set a direction
for the
Nation by establishing six national education
goals. In brief,
the goals state that by the year 2000
* All children in America will start school
ready to learn;
* The high school graduation rate will improve
to at least
90 percent;
* All children will be competent in at least
English,
mathematics, science, history, and geography;
* American students will be first in the world
in science
and mathematics;
* Adult Americans will be literate and have
the skills
necessary to compete in a world economy;
* And every school in America will be free
of drugs and
violence.
As we turn from a "Nation at Risk"
to a "Nation on the
Move" we must assure that our children and
youth are prepared
to meet the challenge of the world economy, the
obligation of
civic responsibility, and the responsibility of
attaining the
national education goals.
Attaining the national education goals
depends greatly on
the efforts of the entire community, but especially
you, the
parents of our children. In helping your child
succeed in high
school and aim for college, you're also helping
our Nation
produce informed citizens and a competitive work
force for the
next decade and beyond.
Richard W. Riley
U.S. Secretary of Education
PREPARING YOUR CHILD FOR COLLEGE
I. General Questions About College
Why attend college?
What types of colleges exist?
What kinds of jobs are available to college
graduates?
II. Preparing for College
What can my child do to prepare academically
for college?
What can my child do outside the classroom
to prepare for
college?
III. Choosing a College
How can my child go about choosing a college?
IV. Financing a College Education
How much does a college education cost?
How can I afford to send my child to college?
What are the most common sources of financial
aid?
Is my child eligible for financial aid? If
so, how much ?
Are there other ways to keep the cost of
college down?
V. Long-Range Planning
How do I set up a long-range plan?
VI. Important Terms
What terms do I need to understand?
VII. Other Sources of Information
Where can I get more information on the
topics discussed
in this handbook?
Exercises and Checklists for You and Your Child
Help Your Child Think About a Career
Course Planner for Parent and Student
College Inquiries
College Preparation Checklist for Students
Financial Preparation Checklist for Parents
Charts
Chart 1: Examples of Jobs Requiring College
Preparation
Chart 2: High School Courses Recommended
for a Four-Year
College
Chart 3: Questions To Ask Guidance Counselors
Chart 4: Distribution of College Students
by the Amount of
Tuition and Fees Charged
Chart 5: Typical College
Chart 6: Average Tuition and Fees By Type
of College,
School Year 1991-1992
Chart 7: Amount You Would Need To Save To
Have $10,000
Available When Your Child Begins College
Chart 8: Examples of Savings Instruments
and Investments
Chart 9: How Much Need-Based Financial Aid
Can My Child
Get?
Chart 10: Military Postsecondary Education
Opportunities
Why attend college?
A college degree can provide your child
with many
opportunities in life. A college education can
mean:
Greater Knowledge
A college education will increase your
child's ability to
understand developments in science and in society,
to think
abstractly and critically, to express thoughts
clearly in
speech and in writing, and to make wise decisions.
These skills
are useful both on and off the job.
Greater Potential
A college education can help increase
your child's
understanding of the community, the Nation, and
the world--as
he or she explores interests, discovers new areas
of knowledge,
considers lifelong goals, and becomes a responsible
citizen.
More Job Opportunities
The world is changing rapidly. Many jobs
rely on new
technology and already require more brain power
than muscle
power. In your child's working life, more and
more jobs will
require education beyond high school. With a college
education,
your child will have more jobs from which to choose.
More Money
A person who attends college generally
earns more than a
person who does not.
For example, in 1989, a person with a
college degree from
a four-year college earned approximately $10,000
more in that
year than a person who did not go to college.
With a college
education, your child can earn higher pay.
Some of these benefits of college may
not be obvious to
your child. Even though he or she has to make
the final
decision to attend college, you can help in the
decision-making
process by learning about all aspects of college
yourself and
sharing what you learn with your child.
What types of colleges* exist?
* Throughout this document, the term "college"
is used to
refer to all collegiate institutions--both
colleges and
universities.
More than half of all recent high school
graduates in the
United States have had some type of postsecondary
education. In
many other countries, a smaller percentage of
students go on
for more schooling after high school. One reason
so many U.S.
students seek postsecondary education is that
American students
have a wide choice of colleges to consider. For
this reason,
your child is likely to find a college well-suited
to his or
her needs.
There are two basic types of colleges
that offer academic
programs:
Two-Year Colleges
These schools offer two-year programs
leading to a
certificate, an associate of arts (A.A.) degree,
an associate
of science (A.S.) degree, or an associate of applied
science
(A.A.S.) degree.
Four-Year Colleges and Universities
These schools usually offer a bachelor
of arts (B.A.) or
bachelor of science (B.S.) degree. Some also offer
graduate and
professional degrees.
Two-Year Colleges
For students who want a practical education
aimed at a
specific career in such areas as bookkeeping,
dental hygiene,
etc., a two-year program is probably the answer.
In many cases,
two-year degrees can be transferred to four-year
schools and
credited toward a B.A. or B.S. degree. Two-year
programs vary
from school to school, but, in general, are offered
by:
Junior Colleges: These are generally private
institutions,
some of which are residential and attended
by students who
may come from other parts of the country;
and
Community Colleges: These are public institutions,
mostly
serving people from nearby communities. Public
institutions are supported by state and local
revenues.
Many junior and community colleges offer
technical/vocational training, as well as academic
courses.
Many offer such programs in cooperation with local
businesses,
industry, public service agencies, or other organizations.
Two-year colleges often operate under
an "open admissions"
policy, which can vary from school to school.
At some
institutions, "open admissions" means
that anyone who has a
high school diploma or GED certificate can enroll.
At other
schools, anyone over 18 years of age can enroll
or, in some
cases, anyone deemed able to benefit from the
programs at the
schools can enroll.
Application requirements at some two-year
colleges may
include a high school transcript--a list of all
the courses
your child took and grades earned in four years
of high
school--and college entrance examination scores
as well. Some
schools have programs that allow "open admissions,"
while other
programs in the same school--particularly in scientific
or
technical subjects--may have further admission
requirements.
Since requirements vary widely, it is important
to check into
schools and programs individually.
Four-Year Colleges and Universities
Students who wish to pursue a general
academic program
usually choose a four-year college or university.
Such a
program lays the foundation for more advanced
studies and
professional work. Four-year colleges and universities
offer
bachelor's degrees (the B.A. and B.S.)in most
areas in the arts
and sciences, such as English literature, foreign
languages,
history, economics, political science, biology,
zoology,
chemistry, and in many other fields.
Here are the main differences between
four-year colleges
and universities:
Four-Year Colleges: These are postsecondary
schools that
provide four-year educational programs in
the arts and
sciences. These colleges confer bachelor"s
degrees.
Universities: These are postsecondary
schools that include
a college of arts and/or sciences, one or
more programs of
graduate studies, and one or more professional
schools.
Universities confer bachelor's degrees and
graduate and
professional degrees.
When a student earns a bachelor's degree
it means that he
or she has passed examinations in a broad range
of courses and
has studied one or two subject areas in greater
depth. (These
one or two subject areas are called a student's
"major" area(s)
of study or area(s) of "concentration.")
A bachelor's degree is
usually required before a student can begin studying
for a
graduate degree. A graduate degree is usually
earned through
two or more years of advanced studies beyond four
years of
college. This might be a master's or a doctoral
degree in a
particular field or a specialized degree required
in certain
professions such as law, social work, architecture,
or
medicine.
What kinds of jobs are available to college
graduates?
Certificates and degrees earned by graduates
of two- and
four-year colleges or universities usually lead
to different
kinds of professional opportunities. Many professions
require
graduate degrees beyond the traditional four-year
degree, such
as a medical degree or a law degree. For example:
A course of study in bookkeeping at a
community college
generally prepares a student for a Job as
a bookkeeper.
A four-year degree in economics may prepare
a student for
any one of several Jobs in a bank or a business.
A four-year degree in English may serve
as background for
getting teacher certification in the subject
or for being
an editor with a magazine.
In Chart 1 below there is a partial listing
of different
occupations and the educational background generally
required
for each. Some people who go on to acquire Jobs
in the
four-year-college column obtain a graduate degree
or some
graduate education, but many of these Jobs can
be filled by
people who do not have more than a four-year college
education.
For more information on the educational requirements
of specific
jobs, contact a guidance counselor or check the
Occupational
Outlook Handbook in your library. (See the last
section of this
handbook for information on this book arid other
publications
that discuss jobs.)
CHART I
Examples of Jobs Requiring College Preparation
Two-Year College
(Associate's Degree)
Electrician
Drafter
Dental Hygienist
Emergency Medical Technician
Computer Service Technician
Bookkeeper
Commercial Artist
Film Technician
Medical Illustrator
Four-Year College
(Bachelor's Degree)
Accountant
Teacher
Registered Nurse
Engineer
Journalist
Diplomat
Insurance Agent
More Than Four
Years of College
(Various Graduate
Degrees Required)
Lawyer
Doctor
Architect
Scientist
University Professor
Economist
Psychologist
Sociologist
Dentist
EXERCISE
Help Your Child Think About a Career
Step 1:
Using the form on the next page, sit down
with your child
and make a list of jobs that sound interesting.
It may help to
first think about friends or people you've read
about or have
seen on television who have interesting jobs.
List those jobs
in the left-hand column. If your child cannot
think of
interesting jobs, have him or her list subject
areas of
interest. Then try to help your child identify
jobs in those
subject areas. Depending on the job, there may
be courses in
middle school or high school that will give your
child a
preview of the type of knowledge that is needed
for the
particular job. In the right-hand "Education"
column, write
down the level of education required for the job
and any high
school or college courses that may help your child
prepare for
such a career.
Step 2:
Take the form to your local library and,
with the help of
a reference librarian, locate books on some of
the careers your
child has selected. Libraries usually have directories
that
list career requirements. It is not a problem
if your child
does not know what career path he/she wants to
follow; his or
her focus during these years should be on doing
well in school.
(SEE FORM ON NEXT PAGE.)
[Form Omitted]
What can my child do to prepare academically
for college?
To prepare for college, there is no substitute
for your
child getting a solid academic education. This
means your child
should take challenging courses in academic subjects
and
maintain good grades in high school. Your child's
transcript
will be an important part of his or her college
application.
A college education builds on the knowledge
and skills
acquired in earlier years. It is best for your
child to start
planning a high school course schedule early,
in the seventh or
eighth grade. Students who don't think ahead may
have
difficulty completing all the required or recommended
courses
that will help them qualify for college.
Most selective colleges (those with the
highest admissions
requirements) prefer to admit students who have
taken courses
in certain subject areas. For example, many colleges
prefer
that high school students take algebra, geometry,
or some other
type of specialized math, rather than general
math. Some
colleges prefer three or four years of a foreign
language. Your
child's guidance counselor can help your child
determine the
high school courses required or preferred by different
types of
colleges. If your child is interested in specific
colleges, he
or she can contact those schools and ask about
their admissions
requirements.
Your child should take courses in at least
these core
areas:
-- English
-- mathematics
-- science
-- history and geography
A foreign language and computer science
are also highly
recommended.
Chart 2 lists the high school courses
that many higher
education associations and guidance counselors
recommend for a
college-bound student. These courses are especially
recommended
to students who want to attend a four-year college.
Even if
your child is interested in attending a two-year
college, he or
she should take most of these courses since they
provide the
preparation necessary for all kinds of postsecondary
education.
If your child is interested in pursuing
a vocational
program in a two-year college, he or she may want
to supplement
or substitute some of the courses listed in the
chart with some
vocational or technical courses in his or her
field of
interest. Your child should take at least the
suggested courses
in the core areas of English, math, science, history,
and
geography.
Traditional English courses such as American
and English
literature will help students improve their writing
skills,
reading comprehension, and vocabulary. History
and geography
will help your child better understand our society
as well as
societies around the world.
Mathematical and scientific concepts and
skills learned in
math classes are used in many disciplines outside
of these
courses. A recent study showed that students who
take algebra
and geometry in high school are much more likely
to go on to
college than students who do not. Algebra and
geometry are also
essential preparation for the college entrance
examinations--the
SAT (Scholastic Aptitude Test) or the ACT Assessment.
These tests measure a student's aptitude
in mathematical
and verbal comprehension and problem solving.
Students applying
to colleges in the East and West usually take
the SAT exam.
Students applying to schools in the South and
Midwest often
take the ACT. (However, students should check
the admission
requirements at each school to which they are
applying.)
Usually, the tests are offered in the Junior and
senior years
of high school and can be taken more than once
if a student
wishes to try to improve his or her score. Students
can get
books at libraries or bookstores to help them
to prepare for
all of the tests. Some of these books are listed
at the back of
this resource book. In addition, some private
organizations and
companies offer courses that help students prepare
for these
exams.
CHART 2
High School Courses Recommended for a Four-Year
College
Although academic requirements differ
across colleges, the
admissions requirements listed below are typical
of four-year
colleges. The specific classes listed here are
examples of the
types of courses students can take.
English -- 4 years
Types of classes:
composition
American literature
English literature
World literature
Laboratory Science -- 2 to 3 years
Types of classes:
biology
earth science
chemistry
physics
Mathematics -- 3 to 4 years
Types of classes:
algebra I
algebra II
geometry
trigonometry
precalculus
calculus
Foreign Language -- 2 to 3 years
Types of classes:
French
German
Spanish
Latin
Russian
Japanese
History & Geography -- 2 to 3 years
Types of classes:
geography
U.S. history
U.S. government
world history
world cultures
Visual & Performing Arts -- 1 year
Types of classes:
art
dance
drama
music
Appropriate Electives -- 1 to 3 years
Types of classes:
economics
psychology
statistics
computer science
communications
Many schools offer the Preliminary Scholastic
Aptitude
Test/National Merit Scholarship Qualifying Test
(PSAT/NMSQT) to
their students. This is a practice test that helps
students
prepare for the Scholastic Aptitude Test (SAT).
The PSAT is
usually administered to tenth or eleventh grade
students. A
student who does very well on this test and who
meets many
other academic performance criteria may qualify
for the
National Merit Scholarship Program. You and your
child can find
out more about the PSAT/NMSQT and the National
Merit
Scholarship Program by talking to your child's
guidance
counselor or by calling or writing to the number
or address
provided in the back of this handbook.
Some colleges also require that an applicant
take one or
more Achievement Tests in major areas of study.
It is a good
idea for a student to consult a guidance counselor
about this
early in high school; often the best time to take
an
Achievement Test is right after the student has
taken a course
in that subject. For example, many students take
the Biology
Achievement Test right after they have completed
a course in
biology. This could mean that your child would
take his or her
first Achievement Test as a freshman or sophomore
in high
school.
At the back of this handbook, in the section
that lists
places where you can get additional information,
you will find
the address and phone number where you can write
or call for
more information about the SAT and the Achievement
Tests. You
will also find the address and phone number for
the
organization that administers the ACT.
Knowing what will be required for college
is important;
by taking the right courses and examinations from
the beginning
of high school, your child may avoid admission
problems later
on. In addition, students who do not prepare well
enough
academically in high school, if admitted to college,
may be
required to take remedial courses. Most colleges
do not offer
credit for these courses, and students may have
to pay for
these extra courses and spend extra time in college
to earn
their degrees. Chart 3 lists some questions that
you or your
child may want to ask your child's guidance counselor.
CHART 3
Questions To Ask Guidance Counselors
* What basic academic courses do they recommend
for students
who want to go to college?
* How many years of each academic subject
does the high
school require for graduation?
* What elective courses do they recommend
for college-bound
students?
* How does a student go about completing
recommended courses
before graduating from high school?
* Can students who are considering college
get special help
or tutoring?
* What activities can students do at home
and over the
summers to strengthen their preparation for
college?
* How much homework is expected of students
preparing for
college?
* What kinds of high school grades do different
colleges
require?
Course Planner for Parent and Student
This exercise will give you and your child
a chance to
look ahead and choose future courses, but be aware
that some
courses must be taken in sequence. On the form
below, list your
child's current courses or courses he or she will
take this
year. Then list courses that he or she will take
during each
year of high school. If you are not sure what
courses your
child should take, you should make an appointment
with your
child's guidance counselor and get some advice.
[Form Omitted]
[Form Omitted]
[Form Omitted]
What can my child do outside the classroom
to prepare
for college?
Interpersonal and leadership skills, interests
and goals
are all important for college preparation. independent
reading
and study, extracurricular activities, and work
experience will
all help your child develop his or her skills,
interests, and
goals.
Independent Reading and Study
Independent reading and study will help
your child to
prepare academically for college. This is a good
way to develop
interests, expand knowledge, and improve vocabulary
and reading
comprehension skills needed for college and the
SAT or ACT.
Encourage your child to read all kinds of books
for
fun--fiction and non-fiction. The school library
and the local
public library are good sources of books, magazines,
and
newspapers.
Extracurricular Activities
Many school, community, and religious
organizations enable
high school students to explore their interests
and talents by
providing activities outside the classroom. Colleges
are often
interested in a student's extracurricular activities
such as
school clubs, the student newspaper, athletics,
musical
activities, arts, drama, and volunteer work, especially
if a
student has excelled in one or more of these areas.
Work Experience
Work experience--paid or volunteer--can
teach students
discipline, responsibility, reliability, teamwork,
and other
skills. Some students tutor elementary school
children or
fellow students in a subject they have mastered
themselves.
Others help the disadvantaged or volunteer in
hospitals. Many
colleges are interested in knowing about this
type of
experience.
A summer job is a good way to gain experience
and earn
money for college as well. If your child works
during the
school year, he or she should not work so many
hours that the
job interferes with school work.
Creating a Good Place To Study
Your child needs a quiet and comfortable
place to study.
Here are a few things that you can do:
(1) Help him or her find a quiet place with
some privacy.
(2) Set up a desk or large table with good
light and place
reference books such as a dictionary on the
desk or
nearby.
(3) Make sure your child studies there on
a regular basis.
How can my child go about choosing a college?
Colleges are located in big cities, suburbs,
and small
towns throughout the country. Some enroll tens
of thousands of
students; others enroll only a few hundred. Some
are public;
others are private. Some private institutions
are affiliated
with religious institutions; others are not. Some
schools
enroll only women, others only men.
The type of institution best suited to
your child depends
on his or her individual needs and talents. Your
child can
begin focusing on the choice of a college by considering
the
following questions:
-- Why do I want to go to college?
-- What do I hope to achieve in college?
-- Do I have some idea of what I want to
study or for which
job I want to prepare?
-- Do I want to live at home or go away to
school?
-- Do I prefer an urban or suburban environment?
-- Would I be happier in a small college
or at a large
university?
In order to choose a college, you and
your child should
ask the following questions about the nature and
qualify of the
schools in which your child has an interest.
The Nature of the Education Offered
* What is the philosophy of the particular
college and what
kinds of educational programs does this college
offer?
Ask about the college's specialties, which
types of
classes the school offers, and in which fields
students can
earn a degree or certificate. How many students
study in each
area, and what do they do when they graduate?
* How long does it take to earn a certificate
or degree at
this college?
Students should know how much time it
takes to complete a
program before they enroll in it. Programs can
last anywhere
from a few months to several years. Also ask whether
the time
involved reflects full-time or part-time attendance.
* What do students do when they graduate
from this school?
Do they get jobs in the areas that they were
trained for?
Do they pursue further education?
Job placement rates are particularly important
for
vocational programs. If a very low percentage
of students are
employed in their area of training a year after
completing the
program, there may be a problem. It can also be
useful to ask
about beginning salaries of program graduates
and the
institution's career advising and placement services
for its
students.
Students who enroll in two-year colleges
plans to transfer
to four-year colleges should inquire about the
possibility of
doing so and about the number of graduates who
transfer each
year. Students applying to four-year colleges
may want to know
how many graduates go on to graduate or professional
education.
The Quality of the College
* How many students who start at this school
earn a
certificate or degree? How many drop out?
A high drop-out rate may suggest that
students are
dissatisfied with the education an institution
provides. Be
particularly careful about having your child enroll
in a school
that graduates a very low percentage of its students.
Also ask
about tuition refund policies for students who
drop out in the
first weeks of an educational program.
* What is the default rate at this college?
Do students
repay their loans?
The default rate is the percentage of
students who took
out student loans to help pay their expenses but
did not repay
them properly. A high default rate may suggest
that students
who borrowed never completed their educational
program, or that
they were unable to find jobs and repay the loans
when they
graduated. Colleges with consistently high default
rates may be
barred from student loan programs, and students
attending these
institutions may thus be ineligible for Federal
loans.
* Have other students who have gone to this
college liked
it? What has their experience been?
Colleges should be able to refer you to
current students
or recent graduates of their programs. These individuals
can
give you their opinion about classes, facilities,
the faculty
(teachers), and the skills they have learned.
* What kinds of facilities does this college
have? Are they
adequate for my child's needs?
You and your child should consider the
condition of
classrooms, libraries, and dormitories when choosing
a college.
The types of facilities appropriate for a college
depend on the
type of education provided. For example, a college
offering
classes in the sciences should have modern laboratories,
and an
institution that offers computer education classes
should have
adequate computer facilities.
Admissions Requirements and Financial Aid
* What admissions requirements does this
college have?
Each institution can require students
to take certain high
school classes and submit certain items with their
applications. Make sure you know what is required
by the
schools that interest your child.
* Is this college accredited by an agency
recognized by the
Secretary of Education and eligible to participate
in
Federal student aid programs?
Federal financial aid is available only
to students
attending eligible institutions. Students attending
other
institutions cannot receive Federal financial
aid. If you are
interested in having your child apply for Federal
financial
aid, be wary of unaccredited institutions and
those with high
default rates. You can call the Federal Student
Financial Aid
Information Center toll-free to find out if a
particular
college is an eligible institution. The number
is
1-800-4FED-AID.
EXERCISE
College Inquiries
Using the form on the next page, help
your child list the
colleges he/she knows about and might be interested
in
attending. Write down whether they are two-year
or four-year
colleges or universities. Ask your child why these
schools are
appealing to him or her. You and your child may
want to contact
the colleges to get more information.
[Form Omitted]
How much does a college education cost?
Many people overestimate the cost of college
or believe
that all schools are expensive. For example, a
recent Gallup
survey indicated that 13- to 21-year-olds overestimated
the
average cost of public two- and four-year colleges
by more than
three times the actual figure. The same group
estimated that
the costs of private four-year colleges were one-third
higher
than they actually were.
Although some colleges are expensive,
costs vary from
institution to institution. In addition, the availability
of
financial aid--money available from various sources
to help
students pay for college--can make even an expensive
college
affordable for a qualified student.
College Costs
The basic costs of college are tuition,
fees, and other
expenses:
* Tuition
Tuition is the amount of money that colleges
charge for
instruction and for the use of some facilities,
such as
libraries. Tuition can range from a few hundred
dollars per
year to more than $18,000. However, there are
a few
institutions that don't charge any tuition at
all. As shown in
Chart 4, most students attend colleges that charge
less than
$3,000 per year for tuition. This occurs because
over
three-quarters of students attend public institutions
whose
tuitions are much lower than those of private
institutions.
[Graphic Omitted]
* Fees
Fees are charges (usually small) that
cover costs
generally not associated with the student's course
load, such
as costs of some athletic activities, student
activities,
clubs, and special events.
* Other Expenses
Besides tuition and fees, students at
most colleges and
universities pay for room, board, books, supplies,
transportation, and other miscellaneous costs.
"Room and board"
refers to the cost of housing and food. Typical
college costs
are listed in Chart 5 below.
CHART 5
Typical College Costs
Tuition Books
Fees Supplies
Room Transportation
Board Miscellaneous Expenses
Tuition at Public and Private Colleges
It is important to know the difference
between public and
private institutions. A school's private or public
status has a
lot to do with its tuition.
* Public Institutions
Over three-quarters of all students in
two- and four-year
colleges attend State or other public colleges.
Since these
schools receive a large proportion of their budgets
from State
or local government, they can charge students
who live in that
State (in-state students) relatively low tuition.
Students from
other States (out-of-state students) usually pay
higher
tuition.
In 1991-92, in-state students attending
public four-year
colleges faced an average tuition and fees of
$2,137 per year.
in-state students at public two-year colleges
faced an average
tuition and fees of $1,022 per year in 1991-92.
If the costs of room, board, books, supplies,
and
transportation are added to tuition and fees,
the average total
cost of attending a public four-year college was
$6,437 in
1991-92. Since many students who attend two-year
public schools
live at home, the average total cost of attending
a two-year
public college in 1991-92 was $2,404. This includes
the cost of
tuition, fees, books, supplies, and transportation
for a
commuter student.
* Private Institutions
Private (sometimes called "independent")
institutions
charge the same tuition for both in-state and
out-of-state
students. Private college tuitions tend to be
higher than those
of public colleges because private schools receive
less
financial support from States and local governments.
Most private colleges are "non-profit."
Other private
postsecondary schools-mostly vocational and trade
schools--are
"proprietary." Such institutions are
legally permitted to make
a profit. Students at private colleges in 1991-92
faced an
average tuition and fees of $10,017 per year at
four-year
colleges and $5,290 per year at two-year non-profit
colleges.
If the costs of room, board, books, supplies,
and
transportation are added to tuition and fees,
the average total
cost of attending a private four-year college
was $15,381 in
1991-92. If these same kinds of costs are added
to the tuition
and fees of a two-year private college, the average
total cost
of attending such a school was $10,019 in 1991-92.
Chart 6 below shows the average tuition
and fees faced by
students at four different kinds of colleges in
school year
1991-92.
Future College Costs
By the time your child is ready to attend
college, the
tuition, fees, and costs of room, board, and other
expenses
will be larger than the amounts discussed in this
handbook.
Because there are many factors that affect the
costs of a
college education, it is impossible to know exactly
how much
colleges will charge when your child is ready
to enroll. Be
cautious when people tell you a particular amount;
no one can
be sure how much costs will change over time.
In addition, as
college costs increase, the amount of money you
earn, and thus
the amount you will have available to pay for
college, will
also rise.
[Graphic Omitted]
How can I afford to send my child to college?
Saving money in advance and obtaining
financial aid are
common ways for parents to make their child's
education
affordable. Other ways of making college affordable,
such as
attending college part time, will be discussed
later in this
handbook. (See the section beginning on page 32.)
Saving Money
Saving money is the primary way to prepare
for the costs
of college. Setting aside a certain amount every
month or each
payday will help build up a fund for college.
If you and your
child begin saving early, the amount you have
to set aside each
month will be smaller.
In order to set up a savings schedule,
you'll need to
think about where your child might attend college,
how much
that type of college might cost, and how much
you can afford to
save. Keep in mind that colleges of the same type
have a range
of costs and your child may be able to attend
one that is less
expensive. You can also pay part of the costs
from your
earnings while your child is attending school.
In addition,
your child may also be able to meet some of the
costs of
college by working during the school year or during
the summer.
Finally, some Federal, State, or other student
financial aid
may be available, including loans to you and to
your child.
You will also want to think about what
kind of savings
instrument to use or what kind of investment to
make. By
putting your money in some kind of savings instrument
or
investment, you can set aside small amounts of
money regularly
and the money will earn interest or dividends.
Interest refers
to the amount that your money earns when it is
kept in a
savings instrument. Dividends are payments of
part of a
company's earnings to people who hold stock in
the company.
A savings instrument has an "interest
rate" associated
with it; this refers to the rate at which the
money in the
instrument increases over a certain period of
time. Principal
refers to the face value or the amount of money
you place in
the savings instrument on which the interest is
earned.
Chart 7 shows how much you would need
to save each month
in order to have $10,000 available when your child
begins
college. As the chart demonstrates, the amount
varies depending
on the interest rate you obtain and the number
of years that
you save. The higher the interest rate and the
earlier you
begin to save, the less you need to set aside
each month.
For example, if you start saving when
your child is born,
you will have 18 years to save. As shown on the
chart, each
month you will only have to deposit $32 in an
account earning 4
percent interest in order to save $10,099 by the
time your
child is 18. However, if you use the same savings
instrument
but do not start to save until your child is 16,
you will have
to save $401 each month. In addition, if you use
the instrument
with the higher interest rate--8 percent--you
will only have to
put away $21 each month starting when your child
is born.
Remember, by starting to save early and
by using
instruments with higher interest rates, you can
put aside
smaller amounts. If you wait until later to start
saving, you
may not be able to afford to put away the larger
amounts of
money needed to meet your savings goals.
CHART 7
Amount You Would Need To Save To Have
$10,000 Available
When Your Child Begins College
Amount Available When Child
Begins College
If you start Number
saving when of years Monthly
your child saving Savings Principal
Earned Savings
(Assuming a 4 percent interest rate.)
Newborn 18 $32 $6,912
$3,187 $10,099
Age 4 14 45 7,560
2,552 10,112
Age 8 10 68 8,160
1,853 10,013
Age 12 6 124 8,928
1,144 10,072
Age 16 2 401 9,624
378 10,002
(Assuming an 8 percent interest rate.)
Newborn 18 $21 $4,536
$5,546 $10,082
Age 4 14 33 5,544
4,621 10,165
Age 8 10 55 6,660
3,462 10,062
Age 12 6 109 7,848
2,183 10,031
Age 16 2 386 9,264
746 10,010
When deciding which type of savings instrument
or
Investment is right for you and your family, you
should
consider four features:
-- Risk: The danger that the money you set
aside could be
worth less in the future.
-- Return: The amount of money you earn on
the savings
instrument or investment through interest
or dividends.
-- Liquidity: How quickly you can gain access
to the money in
the instrument or investment.
-- Time Frame: The number of years you will
need to save or
invest.
When you select one or more savings instruments
or
investments, you should balance these factors
by minimizing the
risk while maximizing the return on your money.
You will also
want to be sure that you will be able to access
the money at
the time you need to pay for your child's education.
If you start early enough, you may feel
confident about
making some long-term investments. Some investments
are riskier
than others but can help you earn more money over
time. Chart 8
lists some of the major kinds of savings instruments
and
investments that you may want to use. You can
get more
information on these and other savings instruments
at local
banks and at your neighborhood library.
Don't forget that you won't necessarily
have to save for
the entire cost of college. The following section
tells about
student financial aid for which you and your child
might
qualify and other ways to keep college costs down.
[Graphic Omitted]
Financial Aid
Financial aid can help many families meet
college costs.
Every year millions of students apply for and
receive financial
aid. In fact, almost one-half of all students
who go on for
more education after high school receive financial
aid of some
kind. In school year 1990-91, postsecondary students
received
about $28 billion in financial aid.
There are three main types of financial
assistance
available to qualified students at the college
level:
-- Grants and Scholarships;
-- Loans; a
-- Work-Study.
* Grants and Scholarships
Grants and scholarships provide aid that
does not have to
be repaid. However, some require that recipients
maintain
certain grade levels or take certain courses.
* Loans
Loans are another type of financial aid
and are available
to both students and parents. Like a car loan
or a mortgage for
a house, an education loan must eventually be
repaid. Often,
payments do not begin until the student finishes
school, and
the interest rate on education loans is commonly
lower than for
other types of loans. For students with no established
credit
record, it is usually easier to get student loans
than other
kinds of loans.
There are many different kinds of education
loans. Before
taking out any loan, be sure to ask the following
kinds of
questions:
-- What are the exact provisions of the loan?
-- What is the interest rate?
-- Exactly how much has to be paid in interest?
-- What will the monthly payments be?
-- When will the monthly payments begin?
-- How long will the monthly payments lost?
-- What happens if you miss one of the monthly
payments?
-- Is there a grace period for paying bock
the loan?
In all cases, a loan taken to pay for
a college education
must be repaid, whether or not a student finishes
school or
gets a job after graduation. Failure to repay
a student loan
can ruin a person's credit rating and make finances
much more
difficult in the future. This is an important
reason to
consider a college's graduation and job placement
rates when
you help your child choose a school.
* Work-Study Programs
Many students work during the summer and/
or part time
during the school year to help pay for college.
Although many
obtain jobs on their own, many colleges also offer
work-study
programs to their students. A work-study job is
often part of a
student's financial aid package. The jobs are
usually on campus
and the money earned is used to pay for tuition
or other
college charges.
The types of financial aid discussed above
can be
merit-based, need-based, or a combination of merit-based
and
need-based.
* Merit-based Financial Aid
Merit-based assistance, usually in the
form of
scholarships or grants, is given to students who
meet
requirements not related to financial needs. For
example, a
merit scholarship may be given to a student who
has done well
in high school or one who displays artistic or
athletic talent.
Most merit-based aid is awarded on the basis of
academic
performance or potential.
* Need-based Financial Aid
"Need-based" means that the
amount of aid a student can
receive depends on the cost of the college and
on his or her
family's ability to pay these costs. Most financial
aid is
need-based and is available to qualified students.
What are the most common sources of financial
aid?
Student financial aid is available from
a number of
sources, including the Federal Government, State
governments,
colleges and universities, and other organizations.
Students
can receive aid from more than one source.
* Federal Financial Assistance
The Federal Government supplies the largest
amount of all
student aid, about 75 percent or $20 billion annually.
The
largest and most popular Federal student aid programs
are:
-- Federal Pell Grants
These are need-based grants that will
be given to over 4
million students for school year 1992-93. In school
year
1992-93, the maximum Pell Grant will be $2,400.
-- Federal Stafford Loans
Starting in October 1992 there will be
two Stafford loan
programs-one need-based program and another non-need-based.
In
1992 approximately 4 million students will receive
Stafford
Loans.
Under the need-based program, the Federal
Government pays
interest on the loan while the student is in school
and the
student starts paying back the loan and the interest
after
graduation.
Under the non-need-based loan program,
the interest
accrues while the student is in school. After
graduation the
student must pay back the loan and the interest
on the loan,
including the interest that accrued while the
student was in
school.
Under the Stafford loan programs, the
combined loan limits
are $2625 for the first year, $3500 for the second
year, $5500
for the third or more years. An undergraduate
cannot borrow
more than a total of $23,000.
In addition to Federal Stafford Loans
for students, two
other Federal loan programs are available through
which
students or their parents can borrow funds to
attend school.
-- Federal Campus-Based Programs
The Federal Government also provides money
to colleges to
give to needy students. There are three Campus-Based
programs--a grant program (Supplemental Educational
Opportunity
Grants or SEOGs), a loan program (Perkins Loans),
and the
College Work-Study Program.
Students can get aid from more than one
Federal program.
For the most up-to-date information about student
aid supplied
by the Federal Government, call the Federal Student
Financial
Aid Information Center toll-free at the U.S. Department
of
Education at 1-800-4FED-AID. You can also obtain
a guide to
Federal financial aid for students, called The
Student Guide,
which provides an extensive and updated discussion
of all
Federal student aid programs. You can obtain the
Guide by
writing to the following address:
Federal Student Aid Information Center
P.O. Box 84
Washington, D.C. 20044
Call: 1-800-4FED-AID
* State Financial Assistance
States generally give portions of State
budgets to public
colleges and universities. This support lowers
tuition for all
students attending these schools. Some States
also offer
financial assistance directly to individual students,
which can
be need-based or merit-based. To find out about
State aid where
you live, call or write your State's higher education
agency.
The phone numbers and addresses of all of these
agencies are
listed in the last section of this handbook.
* College/University Assistance
Colleges themselves provide aid to many
of their
students. Most of this "institutional aid"
is in the form of
scholarships or grants. Some is need-based and
some is
merit-based.
When your child wants financial aid information
about
specific schools, he or she should contact the
financial aid
offices of these schools and request information.
* Other Types of Assistance
Other organizations, such as corporations,
labor unions,
professional associations, religious organizations,
and credit
unions, sometimes award financial aid. You can
find out about
the availability of such scholarships by contacting
someone
from the specific organization or by directly
contacting its
main headquarters.
In addition, some organizations, particularly
foundations,
offer scholarships to minorities, women, and disabled
students.
To learn more about such scholarships, go to the
nearest public
library with a good reference section and look
for directories
that list such scholarships. (The names of a few
books that
list scholarships appear in the last section of
this handbook.)
College admissions offices and high school guidance
counselors
should also be able to provide more information
about
scholarships.
* Help in Getting More Information
The guidance counselors at your child's
high school should
be able to provide information on when and how
to apply for
Federal, State, and other types of aid. If they
cannot give you
this information, try a local college. Even if
your child
doesn't plan to attend that particular institution,
financial
aid officers there should have information on
Federal financial
aid. Many colleges can also tell you about State
aid and their
own institutional aid.
Is my child eligible for financial aid? If
so, how much?
To qualify for Federal aid, you or your
child must submit
a financial aid application. Applications for
financial aid
request information about your family's income,
savings, and
assets, as well as information on the number of
children in the
family who are in college. You can get a copy
of the Federal
financial aid form by calling the toll-free number
that was
mentioned earlier: 1-800-4FED-AID.
To apply for other aid in addition to
Federal aid, you may
need additional forms. High school guidance counselors
can tell
you more about applying for financial aid, including
where to
get forms you might need for State aid.
From information you report on the financial
aid forms,
your expected family contribution (EFC) is calculated.
The EFC
is the amount of money a student and his or her
family are
expected to contribute to the costs of attending
college. Using
the EFC and other information that you provide,
each college to
which you apply will determine your financial
need. Financial
need equals the cost of education minus the EFC
and represents
the maximum amount of need-based aid the student
can receive.
In addition, students can borrow money to cover
the EFC.
Because financial aid determinations consider
both
financial need and education costs, you should
not rule out a
school because you think it costs too much. In
fact, with
financial aid it may cost no more to attend an
expensive
institution than a cheaper one. Chart 9 below
summarizes the
simple calculation that is performed to determine
financial
need.
CHART 9
How Much Need-Based Financial Aid Can My Child
Get?
The amount of need-based financial aid
a student qualifies
for depends on his or her financial need. Financial
need is
equal to the cost of education (estimated costs
for college
attendance and basic living expenses) minus the
family
contribution (the amount a student's family is
expected to pay,
which varies according to the family's financial
resources).
Expected
Cost of Family
Financial
Education Contribution
Needs
Includes costs
of
Tuition
Students can receive
Fees Based on the financial up
to this amount of
Room - resources of a student = need-based
financial
Board and his or her family aid,
such as Pell
Books Supplies Grants
and Stafford
Transportation Loans.
To give you a better idea of how you can
finance your
child's college education, examples of two college
students'
financial aid packages are shown below. Note that
these
financial aid packages are Just examples of the
kinds of
packages that students with these profiles would
receive if
they attended the schools described below.
PROFILE 1 -- FIRST STUDENT
I. Student's Background
Family Income ....................................$12,000
Family Size.............................................4
Number of Family Members in College ....................1
II. Characteristics of the College That Student
Would Like To
Attend and Student's Financial Aid Package at
That College
A. A 2-Year Public College. Total cost of attending
this
college comes to $4,000.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$4,000
Expected Family Contribution (EFC) Parents............$0
Student**(from summer job savings) .................$700
Financial Need....................................$3,300
For this student, the total cost of education
is $4,000.
When you subtract the EFC, the financial need
is $3,300.
Therefore, the financial aid package below was
offered to the
student.
Example of Financial Aid Package:
Financial Need....................................$3,300
Pell Grant.........................................2,400
SEOG***..............................................400
State Aid............................................500
Total Financial Aid ..............................$3,300
B. A 4-Year Public College. Total cost of attending
this
institution comes to $6,500.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$6,500
Expected Family Contribution (EFC) Parents............$0
Student** (from summer job savings) ...............$
700
Financial Need....................................$5,800
For this student, the total cost of education
is $6,500.
When you subtract the EFC, the financial need
is $5,800.
Therefore, the financial aid package below was
offered to the
student.
Example of Financial Aid Package:
Financial Need....................................$5,800
Pell Grant.........................................2,400
SEOG***..............................................600
Work-Study...........................................800
Perkins Loan****...................................1,000
State Aid..........................................1,000
Total Financial Aid ..............................$5,800
C. A 4-Year Private College. Total cost of
attending this
institution comes to $15,200.*
Student's Financial Aid Package at This College:
Total Cost of Education .........................$15,200
Expected Family Contribution (EFC) Parents............$0
Student** (from summer job savings) ...............$
700
Financial Need ..................................$14,500
For this student, the total cost of education
is $15,200.
When you subtract the EFC, the financial need
is $14,500.
Therefore, the financial aid package below was
offered to the
student.
Example of Financial Aid Package:
Financial Need ..................................$14,500
Pell Grant.........................................2,400
SEOG***............................................1,000
Work-Study.........................................1,200
Perkins Loan****...................................1,000
Stafford Loan......................................1,500
State Aid..........................................1,400
Institutional Aid..................................6,000
Total Financial Aid .............................$14,500
PROFILE 2 -- SECOND STUDENT
I. Student's Background
Family Income .........................................$32,000
Family Size..................................................4
Number of Family Members in College ........................
1
II. Characteristics of the College That Student
Would Like To
Attend and Student's Financial Aid Package at
That College
A. A 2-Year Public College. Total cost of attending
this
college comes to $4,000.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$4,000
Expected Family Contribution (EFC) Parents........$1,500
Student** (from summer job savings) ...............$
700
Financial Need ...................................$1,800
For this student, the total cost of education
is $4,000.
When you subtract the EFC, the financial need
is $1,800.
Therefore, the financial aid package below was
offered to the
student.
Example of Financial Aid Package:
Financial Need ...................................$1,800
Pell Grant...........................................700
SEOG*** .............................................500
Work-Study...........................................600
Total Financial Aid ..............................$1,800
B. A 4-Year Public College. Total cost of attending
this
institution comes to $6,500.*
Student's Financial Aid Package at This College:
Total Cost of Education ..........................$6,500
Expected Family Contribution (EFC) Parents .......$1,500
Student** (from summer job savings) ...............$
700
Financial Need ...................................$4,300
For this student, the total cost of education
is $6,500.
When you subtract the EFC, the financial need
is $4,300.
Therefore, the following financial aid package
was offered to
the student.
Example of Financial Aid Package:
Financial Need ...................................$4,300
Pell Grant ...........................................700
SEOG***...............................................600
Work-Study..........................................1,400
Stafford Loan.......................................1,000
State Aid.............................................600
Total Financial Aid ...............................$4,300
C. A 4-Year Private College. Total cost of
attending this
institution comes to $15,200.*
Student's Financial Aid Package at This College:
Total Cost of Education .........................$15,200
Expected Family Contribution (EFC) Parents .......$1,500
Student** (from summer job savings) ................$700
Financial Need ..................................$13,000
For this student, the total cost of education
is $15,200.*
When you subtract the EFC, the financial need
is $13,000.
Therefore, the financial aid package below was
offered to the
student.
Example of Financial Aid Package:
Financial Need ..................................$13,000
Pell Grant............................................700
SEOG***.............................................1,200
Work-Study..........................................1,500
Perkins Loan****....................................2,000
Stafford Loan.......................................2,500
State Aid.............................................800
Institutional Aid...................................4,300
Total Financial Aid ..............................$13,000
* This "total cost" includes tuition,
fees, room, board,
books, supplies, and transportation.
** The student worked during two summer vacations
while in
high school and saved $700 for college.
*** An SEOG is a Supplemental Educational
Opportunity
Grant--which is a Federal award that helps
undergraduates
with financial need, and is awarded by the
school.
**** A Perkins Loan is a low-interest Federal
loan for
undergraduates and graduate students with
financial need,
and is awarded by the school.
Are there other ways to keep the cost of college
down?
Enroll in a Two-Year College; Then Transfer
to a Four-Year
College
Local community colleges are usually the
least expensive.
In addition to charging low tuition, they are
located in the
area in which the student lives, which makes it
possible to
save by living at home and commuting to campus.
After completing an associate's degree
or certificate in a
two-year college, students often can transfer
to a four-year
college and work toward a bachelor's degree.
If your child chooses this route, he or
she needs to take
courses in the two-year college that will count
toward a
bachelor's degree. Certain community college courses
may not be
transferable to a four-year institution. Community
college
admissions officers can explain transfer terms
and
opportunities.
Work Part Time
Some students choose to work part time
and attend college
part time. If your child wishes to do this, he
or she should
make sure that work, classes, and time for studying
do not
conflict. Some institutions offer programs that
enable students
to combine work and classes. Although going to
school part time
is a good option for many students, it usually
takes longer for
part-time students to earn their degrees.
Take Advantage of Armed Forces Education Programs
All of the ways to get postsecondary educational
training
through the Armed Forces are shown in Chart 10
below. The armed
forces offer educational programs during or after
active duty.
If your child prefers to work toward a college
degree
immediately after high school, attending one of
the military
academies or attending a civilian school and enrolling
in the
[Graphic Omitted]
Reserve Officers Training Corps (ROTC)
program are
options. If your child wants to join the armed
forces before
attending college full time, he or she can attend
college after
military service by taking advantage of the Montgomery
GI Bill
or by obtaining college credit for some of the
military
training he or she will receive.
* Military Academies
Each branch of the military, with the
exception of the
Marine Corps, has its own academy--a four-year
college that
offers a bachelor's degree and a commission in
the military
upon graduation. The military academies are highly
competitive
and are tuition-free to students who are admitted.
The three
main military academies are:
(1) U.S. Military Academy, located in West
Point, New York;
(2) U.S. Naval Academy, located in Annapolis,
Maryland; and
(3) U.S. Air Force Academy, located in Colorado
Springs,
Colorado.
* ROTC
In the ROTC scholarship program, the military
covers the
cost of tuition, fees, and textbooks and also
provides a
monthly allowance. Scholarship recipients participate
in summer
training while in college and fulfill a service
commitment
after college.
* The Montgomery GI Bill
This bill provides financial support for
people who wish
to pursue a college education after serving in
the military.
* Other Ways To Get a College Education
in the Armed Forces
Most branches of the military offer some
kind of tuition
assistance program that enables members to take
college courses
at civilian colleges during their off-duty hours
while on
active duty. In addition, military training while
on active
duty can sometimes count toward college credit.
All branches of
the military offer training in various technical
and vocational
areas, and military enrollees can often obtain
college credit
for some of this training.
Local armed forces recruiting offices
can provide detailed
information about education opportunities through
the military.
How do I set up a long-range plan?
Step by step, you can help your child
make informed
decisions about his or her education, do well
academically,
learn about colleges, and find the best possible
opportunities
for a college education.
Following are two checklists that are
designed to help you
and your child, year by year, progress toward
preparing for
college--both academically and financially. The
first list
speaks directly to your child, although he or
she may need your
help. The second list speaks directly to you.
College Preparation Checklist for Students
PRE-HIGH SCHOOL:
* Take challenging classes in English, mathematics,
science,
history, geography, and a foreign language.
* Develop strong study skills.
* Start thinking about which high school classes
will best
prepare you for college.
* If you have an opportunity to choose among
high schools,
or among different programs within one high
school,
investigate the options and determine which
ones will help
you --
further your academic and career
interests and
open doors to many future options.
* Investigate different ways to save money--buying
a U.S.
Savings Bond or opening a savings account
in a bank, etc.
* Start saving for college if you haven't
already.
HIGH SCHOOL:
gth GRADE
* Take challenging classes in English, mathematics,
science,
history, geography, and a foreign language.
* Get to know your career counselor or guidance
counselor,
and other college resources available in
your school.
* Talk to adults in a variety of professions
to determine
what they like and dislike about their jobs
and what kind
of education is needed for each kind of job.
* Continue to save for college.
10TH GRADE
* Take challenging classes in English, mathematics,
science,
history, geography, and a foreign language.
* Talk to adults in a variety of professions
to determine
what they like and dislike about their jobs,
and what kind
of education is needed for each kind of job.
* Become involved in school- or community-
based
extracurricular (before or after school)
activities that
interest you and/or enable you to explore
career
interests.
* Meet with your career counselor or guidance
counselor to
discuss colleges and their requirements.
* Take the Preliminary Scholastic Aptitude
Test/National
Merit Scholarship Qualifying Test (PSAT/NMSQT).
You must
register early. If you have difficulty paying
the
registration fee, see your guidance counselor
about
getting a fee waiver.
* Take advantage of opportunities to visit
colleges and talk
to students.
* Continue to save for college.
11TH GRADE
* Take challenging classes in English, mathematics,
science,
history, geography, and a foreign language.
* Meet with your career counselor or guidance
counselor to
discuss colleges and their requirements.
* Continue involvement in school- or community-based
extracurricular activities.
* Decide which colleges most interest you.
Write these
schools to request information and an application
for
admission. Be sure to ask about special admissions
requirements, financial aid, and deadlines.
* Talk to college representatives at college
fairs.
* Take advantage of opportunities to visit
colleges and talk
to students.
* Consider people to ask for recommendations--teachers,
counselors, employers, etc.
* Investigate the availability of financial
aid from
Federal, State, local, and private sources.
Call the
Student Aid Hotline at the U.S. Department
of Education
(1-800-4FED-AID) for a student guide to Federal
financial
aid. Talk to your guidance counselor for
more information.
* Investigate the availability of scholarships
provided by
organizations such as corporations, labor
unions,
professional associations, religious organizations,
and
credit unions.
* If applicable, go to the library and look
for directories
of scholarships for women, minorities, and
disabled
students.
* Register for and take the Scholastic Aptitude
Test (SAT),
the ACT, Achievement Tests, or any other
exams required
for admission to the colleges you might want
to attend. If
you have difficulty paying the registration
fee, see your
guidance counselor about getting a fee waiver.
* Continue to save for college.
12TH GRADE
* Take challenging classes in English, mathematics,
science,
history, geography, and a foreign language.
* Meet with your counselor early in the
year to discuss your
plans.
* Complete all necessary financial aid forms.
Make sure that
you fill out at least one form that can be
used for
Federal aid.
* Write colleges to request information
and applications for
admission. Be sure to ask about financial
aid, admissions
requirements, and deadlines.
* If possible, visit the colleges that most
interest you.
* Register for and take the Scholastic Aptitude
Test (SAT),
American College Test (ACT), Achievement
Tests, or any
other exams required for admission to the
colleges to
which you are applying. If you have difficulty
paying the
registration fee, see your guidance counselor
about
getting a fee waiver.
* Prepare your application carefully. Follow
the
instructions, and PAY CLOSE ATTENTION TO
DEADLINES! Be
sure to ask your counselor and teachers at
least two weeks
before your application deadlines to submit
the necessary
documents to colleges (your transcript, letters
of
recommendation, etc.).
Financial Preparation Checklist for Parents
PRE-HIGH SCHOOL:
* Investigate different ways to save money--buying
a U.S.
Savings Bond or opening a savings account
in a bank, etc.
* Start saving money for your child's college
education.
HIGH SCHOOL:
9TH GRADE
* Continue to save for college.
10TH GRADE
* Continue to save for college.
11TH GRADE
* Help your child investigate the availability
of financial
aid from Federal, State, local, and private
sources. Call
the Student Aid Hotline at the U.S. Department
of
Education (1-800-4FED-AID) for a student
guide to Federal
financial aid. Have your child talk to his/her
guidance
counselor for more information.
* Help your child investigate the availability
of
scholarships provided by organizations such
as
corporations, labor unions, professional
associations,
religious organizations, and credit unions.
* If applicable, go to the library with your
son or daughter
and look for directories on scholarships
for women,
minorities, and disabled students.
12TH GRADE
* Make sure your child completes all necessary
financial aid
forms. Be sure that he or she completes at
least one form
that can be used for Federal aid.
* Continue to save for college.
What terms do I need to understand?
Below is a glossary of some terms that
you may want to
remember:
A.A.: This stands for an "associate of
arts" degree, which can
be earned at most two-year colleges.
A.A.S.: This refers to an "associate of
applied science"
degree, which can be earned at some two-year colleges.
Achievement Test: Achievement Tests are offered
in many areas
of study including English, mathematics, many
sciences,
history, and foreign languages. Some colleges
require students
to take one or more Achievement Tests when they
apply for
admission. Write to the address on page 41 of
this handbook for
more information about such tests.
ACT: This is a test published by American College
Testing,
which measures a student's aptitude in mathematical
and verbal
comprehension and problem solving. Many colleges
in the South
and Midwest require students to take this test
and submit their
test scores when they apply for admission. Some
colleges accept
this test or the SAT. (See below for explanation
of SAT.) Most
students take the ACT or the SAT during their
junior or senior
year of high school.
B.A. or B.S.: B.A. stands for "bachelor
of arts," and B.S.
stands for "bachelor of science." Both
degrees can be earned at
four-year colleges. Some colleges only grant B.A.s
and others
only grant B.S.s--it depends on the kinds of courses
offered at
the particular college.
Certificates of Deposit: See chaff beginning
on page 22.
Default Rate: The default rate is the percentage
of students
who took out Federal student loans to help pay
their expenses
but did not repay them properly.
Dividends: Dividends are payments of part of
a company's
earnings to people who hold stock in the company.
Expected Family Contribution (EFC): An amount,
determined by a
formula that is specified by law, that indicates
how much of a
family's financial resources should be available
to help pay
for school. Factors such as taxable and non-taxable
income,
assets (such as savings and checking accounts),
and benefits
(for example, unemployment or Social Security)
are all
considered in this calculation. The EFC is used
in determining
eligibility for Federal need-based aid.
Fees: These are charges that cover costs not
associated with
the student's course load, such as costs of some
athletic
activities, clubs, and special events.
Financial Aid: Financial aid in this handbook
refers to money
available from various sources to help students
pay for
college.
Financial Aid Package: The total amount of
financial aid a
student receives. Federal and non-Federal aid
such as grants,
loans, or work-study are combined in a "package"
to help meet
the student's need. Using available resources
to give each
student the best possible package of aid is one
of the major
responsibilities of a school's financial aid administrator.
Financial Need: In the context of student financial
aid,
financial need is equal to the cost of education
(estimated
costs for college attendance and basic living
expenses) minus
the expected family contribution (the amount a
student's family
is expected to pay, which varies according to
the family's
financial resources).
General Educational Development (GED) Certificate:
The
certificate students receive if they have passed
a high school
equivalency test. Students who don't have a high
school diploma
but who have a GED will still qualify for Federal
student aid.
Grant: A grant is a sum of money given to a
student for the
purposes of paying at least pad of the cost of
college. A grant
does not have to be repaid.
Individual Corporate Bonds or Stocks: See chad
beginning on
page 22.
Interest: This refers to the amount that your
money earns when
it is kept in a savings instrument.
Investment: In this handbook, an investment
refers to using
your money to invest in something that will enable
you to earn
interest or dividends over time.
Liquidity: A term that refers to how quickly
you can gain
access to money that you invest or deposit in
some kind of
savings instrument.
Loan: A loan is a type of financial aid that
is available to
students and to the parents of students. An education
loan must
be repaid. In many cases, however, payments do
not begin until
the student finishes school.
Merit-based Financial Aid: This kind of financial
aid is given
to students who meet requirements not related
to financial
needs. Most merit-based aid is awarded on the
basis of academic
performance or potential and is given in the form
of
scholarships or grants.
Money Market Accounts/Money Market Mutual Funds:
See chart
beginning on page 22.
Mutual Funds: See chart beginning on page 22.
Need-based Financial Aid: This kind of financial
aid is given
to students who are determined to be in financial
need of
assistance based on their income and assets and
their families'
income and assets, as well as some other factors.
Open Admissions: This term means that a college
admits most or
all students who apply to the school. At some
colleges it means
that anyone who has a high school diploma or a
GED can enroll.
At other schools it means that anyone over 18
can enroll. "Open
admissions," therefore, can mean slightly
different things at
different schools.
Pell Grants: These are Federal need-based grants
that will be
given to over 4 million students for school year
1992-93. In
school year 1992-93, the maximum Pell Grant will
be
Perkins Loan: This is a Federal financial aid
program that
consists of low-interest loans for undergraduates
and graduate
students with financial need, and is awarded by
the school.
Postsecondary: This term means "after
high school" and refers
to all programs for high school graduates, including
programs
at two- and four-year colleges and vocational
and technical
schools.
Principal: This refers to the face value or
the amount of money
you place in a savings instrument on which interest
is earned.
Proprietary: This is a term used to describe
postsecondary
schools that are private and are legally permitted
to make a
profit. Most proprietary schools offer technical
and vocational
courses.
PSAT/NMSQT: This stands for the Preliminary
Scholastic Aptitude
Test/National Merit Scholarship Qualifying Test,
a practice
test that helps students prepare for the Scholastic
Aptitude
Test (SAT). The PSAT is usually administered to
tenth or
eleventh grade students. Although colleges do
not see a
student's PSAT/NMSQT score, a student who does
very well on
this test and who meets many other academic performance
criteria may qualify for the National Merit Scholarship
Program.
Return: Return refers to the amount of money
you earn through a
financial investment or savings instrument. You
earn money on
investments and savings instruments through interest
earnings
or dividends.
Risk: In reference to saving money or investing
money, risk
refers to the danger that the money you set aside
in some kind
of savings plan or investment could be worth less
in the
future.
ROTC: This stands for Reserve Officers Training
Corps program,
which is a scholarship program wherein the military
covers the
cost of tuition, fees, and textbooks and also
provides a
monthly allowance. Scholarship recipients participate
in summer
training while in college and fulfill a service
commitment
after college.
SAT: This stands for the Scholastic Aptitude
Test, which is a
test that measures a student's aptitude in mathematical
and
verbal comprehension and problem solving. Many
colleges in the
East and West require students to take the SAT
and to submit
their test scores when they apply for admission.
Some colleges
accept this test or the ACT. (See above for an
explanation of
the ACT.) Most students take the SAT or the ACT
during their
junior or senior year of high school.
Savings Accounts: See chart beginning on page
22.
Savings Instrument: In this document, savings
instrument refers
to any kind of savings plan or mechanism you can
use to save
money over time. Examples of savings instruments
discussed in
this handbook are savings accounts, certificates
of deposit
(CDs), and money market accounts.
Scholarship: A scholarship is a sum of money
given to a student
for the purposes of paying at least part of the
cost of
college. Scholarships can be awarded to students
based on
students' academic achievements or on many other
factors.
SEOG (Supplemental Educational Opportunity
Grant): This is a
Federal award that helps undergraduates with financial
need,
and is awarded by the school. The SEOG does not
have to be paid
back.
Stafford Loans: These are student loans offered
by the Federal
Government. Starting in October 1992, there will
be two
Stafford Loan programs -- one need-based program
and another
non-need-based. Under the Stafford Loan program,
students can
borrow money to attend school and the Federal
Government will
guarantee the loan in case of default: Under the
Stafford Loan
programs, the combined loan limits are $2625 for
the first
year, $3500 for the second year, $5500 for the
third or more
years. An undergraduate cannot borrow more than
a total of
$23,000.
Transcript: This is a list of all the courses
a student has
taken with the grades that the student earned
in each course. A
college will often require a student to submit
his or her high
school transcript when the student applies for
admission to the
college.
Tuition: This is the amount of money that colleges
charge for
classroom and other instruction and use of some
facilities such
as libraries. Tuition can range from a few hundred
dollars per
year to more than $18,000. A few colleges do not
charge any
tuition.
U.S. Government Securities: See chad beginning
on page 22.
U.S. Savings Bonds: See chad beginning on page
22.
Work-Study Programs: These programs are offered
by many
colleges. They allow students to work pad time
during the
school year as part of their financial aid package.
The jobs
are usually on campus and the money earned is
used to pay for
tuition or other college charges.
Where can I get more information on the topics
discussed in
this handbook?
In this section you will find phone numbers,
addresses,
and books that you can use to get more information
about
planning for college both financially and academically.
You
should be able to find most of these books and
others like them
at your local library.
The following publications and organizations
represent a
partial list of such sources of information. Their
placement on
this list does not constitute an endorsement by
the U.S.
Department of Education.
Books About Occupations and Careers
(1) The Occupational Outlook Handbook, 1992-93
Edition. U.S.
Department of Labor, Bureau of Labor Statistics,
1992.
(2) Careers for the '90s: Everything You Need
To Know to Find
the Right Career. Research and Education
Association,
1991.
(3) The College Board Guide to Jobs and Career
Planning, Joyce
Slayton Mitchell. The College Board, 1990.
Books About Choosing a College
(1) The College Handbook, 1992. The College
Board, 1991.
(2) Peterson's Guide to Four-Year Colleges,
1993, Twenty-Third
Edition. Peterson's Guides, Inc., 1992.
(3) Barron's Profiles of American Colleges,
Nineteenth
Edition. Barron's Educational Series, Inc.,
1992.
Information About Taking Standardized Tests
(1) The Scholastic Aptitude Test (SAT) and
the Achievement
Tests. Write or call:
The College Board/ATP
P.O. Box 6200
Princeton, NJ 08541
Phone: 609-771-7600
(2) The ACT. Write or call:
ACT Registration
P.O. Box 414
Iowa City, IA 52243
Phone: 319-337-1270
(3) The Preliminary Scholastic Aptitude Test/
National Merit
Scholarship Qualifying Test (PSAT/NMSQT).
Write or call:
PSAT/NMSQT
P.O. Box 24700
Oakland, CA 94632-1700
Phone: 609-683-0449 or 510-653-5595
Books About Preparing for Standardized Tests
(1) Barron's How To Prepare for the Preliminary
Scholastic
Aptitude Test/National Merit Scholarship
Qualifying Test,
Seventh Edition, Samuel Brownstein, Mitchel
Weiner, and
Sharon Welner Green. Barron's Educational
Series, Inc.,
1989.
(2) Barron's How to Prepare for the Scholastic
Aptitude Test,
Sixteenth Edition, Samuel C. Brownstein,
Mitchel Welner,
and Sharon Welner Green. Barron's Educational
Series,
Inc., 1991.
(3) Cracking the The SAT and the PSAT, 1993
Edition, Adam
Robinson and John Katzman. The Princeton
Review, 1992.
Books About Financing Your Child's Education
(1) How To Pay For Your Children's College
Education, Gerald
Krefetz. The College Board, 1988.
(2) Meeting College Costs. The College Board,
1991. (booklet)
(3) College Financial Aid, Fourth Edition.
College Research
Group of Concord, Massachusetts, and John
Schwartz. Arco
Publishing, a Division of Simon and Schuster,
Inc., 1991.
Information About U.S. Savings Bonds
Write to:
Office of Public Affairs
U.S. Savings Bonds Division
Washington, DC 20226
Information About Federal Student Financial
Aid
Request The Student Guide by writing to:
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