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School is in full swing! Work hard during the fall semester and don't fall behind. Getting behind will catch up to you when finals roll around! In this Issue SAT/ACT Dates Next ACT: Oct 25 College Seminars Colorado Michigan Minnesota Missouri New York Ohio Pennsylvania Rhode Island |
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Danger Zone for College Students 
If you have a mailing address, you've almost certainly received at least one credit card offer this week, and maybe more than one. Don't be sucked into the growing population of students with credit card debt! A study by Nellie Mae showed that the average amount of debt a student has on a credit card is $2700--and this study was conducted in 2004, so that number is probably much higher now. The study also showed that ten percent of students have more than $7000 on their credit cards, and most students sign up for their first credit card when they go to college. College is a dangerous time for students to rack up debt: they are on their own for the first time, want to have money for shopping or hanging out with friends, and don't have anyone telling them what to do (or what not to do). The "buy now, pay later" mentality is appealing. They check their mailbox and find that they are pre-approved for a 0% interest rate (which will, of course, rise to 20% or so in the next month). It seems like an easy way to get free money, so they sign up. The truth is, nothing is really free. Credit cards are harmless when you pay them off right away, but if you don't, the interest rates are staggering. And the long-term effect of credit card debt is becoming more dangerous for young adults in today's world. As the stock market drops and lenders go bankrupt, it is becoming more and more difficult to get any kind of loans. Lenders can't give money to just anyone anymore; they have to know that the money will be repaid. As a student's credit rating goes down, he becomes less likely to get a loan or mortgage when he wants to buy his first new car or a house. Whether that student had credit card debt or not will be instrumental in his life. Make sure that you don't end up as a statistic. Pay off your credit card each month, or, better yet, get a debit card that takes money directly from your bank account. It could change the layout of your future. Check out our Blog! The founder of CAPlus, Paul Celuch, updates his blog at least once a week and discusses topics such as college loans, staggering statistics, how to avoid debt, some of the mistakes parents make, and how to make good choices. Visit his blog at http://forgiveusourstudentdebts.blogspot.com. Interview with a Graduate - Ben Sproles 
Editor's Note: Ben Sproles has a degree in computer engineering from Rensselaer Polytechnic Institute; he now works as a digital hardware engineer. CAPlus: Do you have college loans? BS: Yes, about $20,000 after four years for my bachelor's degree and a fifth year for my master's. CAPlus: Do you think your education was worth the loans you took out? BS: Yeah, for the most part. When I was taking out the loans, I looked at the average salary that an engineer makes, and it seemed like it would be easy to pay it off pretty quickly. CAPlus: Has it been as easy as you thought? BS: No, it hasn't. If I had really made it a priority, I probably would've paid it all off sooner. But it's hard to be that disciplined. Plus, unexpected things came up--my wife got laid off, so we didn't have her income for a while. Then we bought a house and had a baby. Things just come up. You could hold off those things if you try hard enough, but it's hard to do that. When you take on debt, you assume that you'll always be able to make the payments, but that's not always the way it actually works. CAPlus: If you could go back to when you were taking out the loans, is there anything you would do differently? BS: Probably two things. I wish that I had applied to more colleges so I had had some leverage when talking to the financial aid office. I shouldn't have applied for early decision. I did ask them for more money, but they already knew I was committed to the school, so they didn't care about finding more grants or scholarships for me. CAPlus: What's the other thing? BS: I wish I had been more careful with the money that I earned from working in college. I was earning good money during the summers, but somehow it seemed like the money didn't go as far as I expected it to. If I had been more disciplined, I think I would've taken out fewer loans. CAPlus: How could you have been more disciplined? BS: Well, once you decide that you're going to take out a loan, you figure, "What's another thousand dollars?" I wanted to have the freedom to go get pizza with my friends. I do think that was worth it, because I still have those friends that I made in college, but I think I still could have done those things with less money. I didn't think that another thousand would matter much, but the overall amount was a lot more than I expected. When I started college, my goal was to graduate with only $10,000 in loans--and it ended up being about $20,000. That's a big difference. High School Freshmen & Sophomores 
• At this point in their high school career, students should be participating in career profiles and college searches to begin getting an idea of what is available. • Keep doing volunteer and community service work to increase your chances of receiving college grants and scholarships. • Look into taking AP courses so you can make a good impression on college admission officers and get some college credits out of the way. Talk to your guidance counselor about this when it's time to choose courses for next semester. • Continue saving money for college. If the student has a job, keep the money in an account with the parent's name on it to shield it from the federal aid formulas. • If you have money in mutual funds, bonds, stocks, and educational IRAs, you should consider talking to a financial planner about moving those assets into accounts that are not exposed to the FAFSA's formula. High School Juniors 
• Work hard in your junior year, because your junior year grades are very important on your high school transcript. By keeping your grades up, you might be rewarded with college grants, free scholarships, and other educational grants. • Check with your guidance counselor to see when the PSAT will be given; it is usually offered sometime in the middle of October. If you start preparing for the SAT now, you will have a better chance of doing well on the PSAT and the actual SAT exam. • Study for the ACT and SAT exams! The next ACT test date is October 25; late registration is accepted until October 3. The next SAT test is November 1; late registration is still accepted until October 11. Visit www.actstudent.org and www.collegeboard.com for more information and to find testing sites. There is also an SAT prep center at the website. Better scores can mean better financial aid! • Keep refining your list of possible college choices. Check out the websites and start comparing schools by factors that you think are most important. • Look into taking AP courses so you can make a good impression on college admission officers and get some college credits out of the way. Talk to your guidance counselor about this when it's time to choose courses for next semester. • Save papers, projects, or any other good work that you are doing in school. Having these things on hand will be helpful during the admissions process (and can serve as portfolios or references later!). High School Seniors 
• If you are an athlete who plans on playing in college, contact coaches at the schools you are interested in applying to. Ask about intercollegiate and intramural programs and athletic scholarships. If you want to play Division I or II sports, you also need to complete the NCAA Initial Eligibility Clearinghouse form. Talk to your coach honestly about whether you're talented enouch to play Div I or II before you apply. • If you aren't happy with your SAT/ACT scores, retake the tests. The highest combination of scores is always used, so taking the tests again won't hurt you. • Check the application and financial aid deadlines for any colleges you want to apply to. This is very important! Make a list so you don't miss any deadlines. • Plan visits to any colleges and set up interviews if you didn't get to them during the summer (or if you want to visit again). Read bulletin boards and the college paper, talk to students and professors, and try to spend a night in the dorms. Ask your CAPlus advisor for a college visit packet before you go! • Take advanced placement (AP) courses if you can. It will help boost your admission standing, and you might be able to test out of required courses when you get to college. • Due dates for recommendation letters are approaching, so figure out who you want recommendations from. Make sure you tell them exactly when the letters will be due, and don't hesitate to remind them! It's an important part of your application process. College Freshmen, Sophomores, and Juniors 
• Beware of credit card companies! You'll receive dozens of credit card offers in your college mailbox, some of which will offer you free t-shirts, iPods, and other gadgets. Don't sign up for a card unless you are going to pay it off each month. Credit cards do not give you "free money" that you can spend whenever you want. • Don't spend loan money on pizza and CDs. You may not realize it now, but you will be paying for that pizza for the next 30 years...with interest! It may cost $15 now, but add the interest and it will really cost you $65! • Students with cars should look into getting AAA in case something goes wrong while traveling home for Thanksgiving break. You can also get roadside/towing service through your insurance carrier. • Develop good study habits now at the beginning of your college career, and it will affect your grades for the next four years. • Don't buy new books from your campus bookstore! You can buy used or new books online for a fraction of the cost. We recommend several sites on our website. • When students meet with academic advisors to discuss plans for the next semester, talk about whether you are on track to finish your degree in four years. If you have not declared a major yet, determine which general classes you can get out of the way now. Don't get trapped into an extra semester! College Seniors 
• Don't buy new books from your campus bookstore! You can buy used or new books online for a fraction of the cost. We recommend several sites on our website. • If you have any special family circumstances, such as the recent discovery of an immediate family member with a serious illness or a sudden death in the family that is causing extreme hardship, write a letter to the college asking for a one-time gift in some form. Colleges may honor these kinds of requests if they have the funds to do so. • Plan how you will find a job once you graduate. Finding a job by graduation depends on strategizing and marketing yourself well. Begin searching now and network with others. Don't wait until two weeks before graduation...it will be too late! • Write letters to people you know in your field to help you find a job. Try to meet with anyone who might be able to help when you go home for Thanksgiving break. Remember that most jobs aren't posted on the Web or in the newspaper. Networking is the best way to find a job! What is CAPlus? College Assistance Plus assists parents in navigating the college process to make the process smoother and save money in multiple ways. This newsletter is available bimonthly and contains helpful advice for each age group. To receive the full benefit of this service, contact CAPlus to schedule a FREE consultation today! Find a Franchise For a complete list of our locations, please visit our website. |
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