Is A College Honors Program Right for You?

Honors Programs and Honors Colleges Can Be A Great Option for Some Students 

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Students striving to get more out their undergraduate education might consider applying to schools with Honors Programs or Honors Colleges.  Although admission requirements vary, be aware that acceptance into any Honors Program usually requires test scores that are at the very top end of the college’s accepted students’ academic profile with similar overall strengths in high school course rigor and GPA.  You will find Honors Programs or Honors Colleges at both public and private institutions.  There are many variations among Honors Programs.  Most have honors level classes and often thesis and research requirements. Enrollment may come with perks such as dedicated Honors dorms (or sections of dorms allotted to Honors students), study abroad stipends, and mentors and/or special advising.  Often Honors students have priority registration for courses and Honors scholarships may be offered, some more generous than others.  Some of the larger public universities with Honors programs describe them as “a liberal arts college within a larger research institution with the advantages of both” or similar descriptor.  It pays to do some research to determine the institutional priority given and resources dedicated to support any particular Honors program and to fully understand if the school delivers on that promise.  In some cases, it can be a great way to get value-added academic and extracurricular experience with a more reasonable price tag.

Don't Be Afraid to Ask

There is a lot of data available to families during the college search process - student to faculty ratios, acceptance rates, graduation rates, freshmen retention percentages -- and the list goes on. Although the relevance of these statistics is a topic for a separate blog post, I want to focus on data that can be difficult to find but important to seek out.  Families looking ahead to the cost of four years of tuition recognize that educating their children is a large investment. Yet, in many cases, important financial information of the underlying institution to which you are writing large tuition checks isn’t included in the glossy brochures and marketing presentations.  You wouldn’t buy stock in a company that was fiscally irresponsible, nor should you risk investing in an educational institution that mismanages its money.  After all, a degree from a college that was insolvent and had to close its doors has little value.  So, when colleges talk about all of the new construction happening on campus, I think it is fair to ask about their long-term bond rating. While the credit agencies aren’t perfect at predicting financial troubles, they at least give us a sense of a college’s financial health.  In addition, the federal government releases a financial responsibility scorecard every spring that assesses private colleges’ financial strength.  Although the purpose of this is to protect federal student loan money from disbursement to students at colleges that will ultimately close their doors, this tool can also be helpful to parents in gauging the overall financial stability of private colleges.  If you do any research on the federal financial responsibly scorecard, you will soon realize that the metrics used and their predictive nature is certainly flawed.  However, it is better than nothing. What about the public universities that aren’t assessed under the federal scorecard?  The federal government assumes that the state governments keep tabs on the universities in their state, so they are excluded.

There are many interesting shifts in higher education to monitor. Fewer students will be applying to college in the near future, several states are struggling with budget deficits which are impacting budgets at state universities, and many colleges are becoming heavily tuition reliant depending on the health of their endowments.  This is not lost on the colleges and universities that, in many cases, are preparing for the changing landscape.  The reality is most will be just fine.  At the same time, I think it is an important time to do your research, ask appropriate questions, and choose colleges wisely.  After all, it is a significant investment.

The Benefits of Changing Your Major

With the cost of a college education continuing to climb, many parents are counting on their children graduating in four years.  It would seem logical that students declaring their academic major as freshmen would have the highest likelihood of graduating on time.  However, the data indicates otherwise. A study done by the Education Advisory Board found that college students declaring their major early and sticking with it are 4% less likely to graduate on-time relative to their counterparts that changed majors in the second semester or later. A possible explanation is that students that switch majors are likely to be more academically engaged in their major of choice versus the students who are simply sticking it out.  With as many as 80% of undergraduate students switching their majors at some point in their college experience it doesn’t necessarily mean an extra semester or year of tuition for parents.

New Allowance In Effect for 529 Plans

You can now use your 529 college savings plan to pay for private school -- from elementary to high school.  This bill was signed into law in December 2017 and could have interesting financial implications for your family. So I would talk to your financial planner or accountant to learn more.

Why Colleges Are Getting More Expensive

A recent survey by the Chronicle of Higher Education, "Filling the Funding Gap," asked college leaders how they plan to keep up with the increased challenges of funding for technology, innovation, and change. 68% said that they would likely raise tuition, 67% would raise student fees including room and board, and 52% planned on reducing staff.   

Student Loan Repayment Time

It’s that time of year when the buzz of the holiday season creates both excitement and some stress.  For those recently graduated from college, don’t get swept away in holiday cheer.  For those students with federal student loans, it is around the holiday time that your federal loans’ six-month grace period ends and you must start repayment.

It’s Beginning to Look a lot Like -- Loan Repayments

Please keep in mind that it is up to you to understand what debt you have outstanding, what institution is your loan servicer, and what you owe when.  Remember, although the Department of Education disburses federal loans, a loan servicer is a separate company that administers your loan.  The loan servicer should contact you, either by email or direct mail, to let you know about your repayment plan.  However, if you have not heard anything, you are still responsible for seeking out this information.  You can log into your Federal Student Aid account using your FSA ID to gather details about your federal loans. Also, in some cases, your loan may be transferred to a new servicer who will notify you of the change.  Sometimes this notification can look like a piece of “junk mail” so my word of advice is to open all of your mail just in case. If you have private loans outside of the federal student loan program, you must make sure you understand your repayment plan from this third-party lender. 
 
For high school students in the process of applying for financial aid, I recommend that you make sure you save your FSA ID.  You will need it to reapply for financial aid every year anyway, and it is necessary to access information about the federal loans that will eventually enter repayment.  Second, understand the grace period of your loans.  Many loans have a six-month grace period but not all.  It is important to understand how quickly your loans are expected to be repaid.  Finally, be aware of how much you are borrowing and what your monthly payment will look like when your loans enter repayment.
 
While a loan payment may diminish your holiday cheer, remember, a college diploma is a pretty awesome gift.

Ability to Pay Could Factor Into Your Admission Decision

National Association for College Admission Counseling recently reported that about half of institutions said an applicant’s “ability to pay” was of at least “some importance” in admissions decisions.

Why Two Years Before You Start College is Important

Last year was the first application cycle that parents were able to complete their financial aid forms with their prior-prior year income.  What does that mean?  For students enrolling in college for the fall of 2018, students and parents will use income and tax information from 2016.  So, dig out your 2016 tax return and get ready.  The FAFSA is available starting October 1st.