A+ Test Prep & Tutoring Blog

In this issue:

Featured Student: Jessica Savitz

We are pleased to report on the achievement of Jessica Savitz, who completed A+’s one-on-one SAT prep program this spring. Jessica, who is going into her senior year at Council Rock North High School, took the SAT in May and got a score of 1630, which represents a 270 point increase from her PSAT score from the previous fall.

Launching of the New Common Application for College

The new 2010-2011 Common Application is now available at commonapp.org.  Over 415 colleges accept this application both online and in print versions, but it is important to note that not all schools accept it.

Saving Money on College-Related Expenses

Funding a college education is a major expense for any family, yet there are many ways in which students and parents can cut corners on college-related expenses such as books, food, and travel once their son or daughter is on campus. Here are a few of our favorite frugal tips.

FREE Proctored SAT and ACT Exams

Mark your calendars! Due to the popularity of our free proctored exams, we are once again offering free, no-obligation, proctored ACT and SAT practice exams. These exams are open to current students and to members of the community.

The Higher Education Opportunity Act of 2008, passed in August of that year, requires colleges to provide a ‘Net Price Calculator’  on their websites by October 29, 2011. What this means for families of students applying to college, is that they will now have the ability to determine the actual cost a student will incur if they decide to attend a specific college. Whereas in the past, many families would just consider the “sticker price,” the published cost of tuition, fees, books, housing, etc., now they should have a more realistic idea of what they will actually have to pay for college, after all aid has been calculated into the price.

It is hoped that with this new tool, students and their families will be able to make better informed choices based upon the realistic cost of attending an institution. One potential benefit of this new requirement is that some families may realize that they do not have to rule out a specific college or colleges that may seem out of their price range if they are just considering the “sticker price.” Often it is hard for families to get an accurate picture of what they will ultimate have to pay for college.

Some colleges have put net price calculators on their websites well in advance of the law’s deadline. These include several Ivy League schools, M.I.T., and locally, Albright College.  Families should be aware that the federal government has created a net price calculator template that colleges can use in developing their own versions. In some cases the calculators created based upon this template may be less accurate than ones developed by the colleges themselves, since they may not take into account some of the variables specific to an individual school. Therefore parents should make sure to ask someone at the financial aid office at each school they are considering whether the college created its own net price calculator, and how accurate the results tend to be.

Good luck with your college search!

A number of colleges, some obscure such as The College of St. Rose in Albany,NY , and others very well known, such as the University of Minnesota, are now sending out direct mail packages offering “no fee” college applications. Not only are the applications without a fee, they are also nearly completely filled out with the potential applicant’s name and other relevant information. Therefore students who are interested in applying need to do little more than sign their name and mail the applications in. Colleges employing this strategy have seen a significant rise in applications.

Why are colleges doing this? And why now? Well, given the current state of the U.S. economy, many colleges are having difficulty getting enough students to apply. In addition, there is increased competition for ranking in the many college guides, including the US News and World Report’s Annual College Rankings. Colleges that have significant increases in the number of applicants can improve their rankings in these publications.

Is this a good thing for students? That is a subject of debate. The direct mail firms that colleges hire to do these types of marketing campaigns stress that this is a way for them to help make students aware of the existence of certain colleges they might not otherwise know about.  In addition, colleges report that this type of marketing campaign has helped them to increase diversity on campus across a number of dimensions, such as geography, gender,  and ethnicity. However some critics argue that this may make it too easy for students to apply to college, thereby reducing the amount of time a student actually spends comparing colleges. Ultimately this could lead to a student applying to a college because it is easy, rather than looking for the best fit.

Time will tell if this is a trend that will last beyond the current economic slump. In the meantime, happy college hunting!

Source:  The New York Times, January 25, 2010

Further Reading: College Confidential, US News and World Report, National Association of College Admissions Counselor

Admissions Officers from Eight Top Colleges Discuss and Demystify the College Admissions Process

Parents and other professionals interested in the ever-changing college admissions landscape will be interested in a recent addition to the New York Times website. The Choice, features the latest information, from admissions professionals, on college admissions, financial aid, standardized testing, and much more.

This week, in a five-part series, The Choice has been featuring answers to select reader questions by Gaston Caperton, who has been president of the College Board since 1999.

Two new programs recently enacted by the Federal Department of Education provide needed relief to those who borrowed for their college educations but are having difficulty repaying their loans.

The Public Service Loan Forgiveness Program encourages students to take jobs working in government, at any level, or for non-profits and other public service oriented organizations. Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time by certain public service employers. More information about this program can be found here.

The Income Based Repayment Plan is designed to cap your monthly payment at an amount that is intended to be affordable based on your income and family size.  In order to be eligible to participate in this program, your income must be low relative to your student loan debt and your family size.  Other benefits of this program:

• Participants in this program will have a maximum of 25 years of payments to make. Any remaining debt will be waived after that time.
• If your monthly IBR payment does not cover the monthly interest that accrues on the loans, the government will pay your unpaid interest on Subsidized Stafford Loans (either Direct Loan or FFEL) for up to three consecutive years from when you first enter IBR repayment.

By using the IBR Calculator you can determine if you are eligible. You can also view a factsheet, which contains basic information about the program and a chart showing the current repayment amount for individuals with specific levels of income and family size.

For more information about these programs, as well as information about other student loan repayment options, visit the Federal Department of Education’s Repayment Plans web page.

Saving for college is a necessary, but scary responsibility. This is especially true in these tough economic times. Most experts agree though, on the most important elements of a successful plan:

1. Start early — yes, I mean early. If possible start setting aside something every month from the time your kids are born. Even saving just $100 per month per child can make a big difference when the time comes for you to begin paying for college.

2. Set up automatic payments — Make it one of your monthly bills that gets paid automatically. The easiest way to do this is by either using your online banking service, bill payment through a personal finance program, such a Quicken, or by allowing your savings plan to deduct the payment from your bank account each month.

3. Stick to your guns — Don’t get spooked when times are bad, such as they are now. Given a long term time horizon for your investment, you will benefit from the advantages of dollar cost averaging. The earlier you start the more you will benefit from this approach.

For more information about different college savings plan options, please refer the following links:

Wall Street Journal

Saving for College

Money Magazine

Sallie Mae’s Education Investment Planner