FOUR YEAR DEGREES: A “DYING” BREED

Oxymorons have become a generally-accepted part of American culture. Accurate horoscope, airline food, casual Dress, good loser, long shorts, authentic reproductions, and now, “a four-year college degree”!!!

The latest polling data from the National Center for Education Statistics shows that only one-in-three of every freshman entering college in the Fall of 2009, will graduate by 2015!!

This explodes the prevailing myth that colleges are “four year degree experiences”; six-year degrees are more the norm.

This also contributes to the ever-increasing numbers of students who graduate with staggering amounts of student loans. The most recent statistics show that currently there is $85 Billion in student loans (as measured by the U.S, Department of Education); and most likely an ADDITIONAL $40 Billion in Home Equity loans that cannot be traced to college (but are being used to fund undergraduate studies).

On average, four-year colleges graduate fewer than 60 percent of their freshmen within six years---------but at many institutions graduation rates are far worse.

Examples abound: the University of Louisville (which enrolls over seventeen thousand undergraduates) has a 44 percent six-year graduation rate. At the University of Memphis, the rate is 34 percent and at the University of Alaska, Fairbanks only 25 percent of students graduate within six years.

Colleges and universities receive tens of billions of dollars directly AND indirectly from taxpayers every year, but the graduation rates suggest that many of these institutions are not serving their “customers” well-------------particularly in the area of up-front OR projected cost-of-attendance.

“We received a TERRIFIC Financial Aid Package for our student…………”

How many times have you heard this comment from a friend or acquaintance??
Recently I was discussing the high cost of attending college with a friend.
When he mentioned the college his daughter was attending, I responded how expensive that particular school was (almost $50,000 per year!!). My friend replied that she would never have gone to that school but “they offered her a terrific financial aid package”.

That caused me to think, has anyone ever told you that their son or daughter received a TERRIBLE financial aid package? Perhaps one of the reasons we have not heard this, is that the college ALWAYS says that we are offering you a GREAT financial aid package!!

In analyzing our clients’ college financial aid packages, we have found that the offers that most parents feel are good--------------are MEDIOCRE at best.

The ONLY way to truly understand the worth of a college financial aid offer is to compare it to offers given in the past to students and families in similar situations.
Of course, our statistical database allows us to do that, and also empowers the family to negotiate with the college in an effort to increase the financial aid package.

So the next time you hear about a “terrific financial aid package”----------a GREAT response would be------------------“compared to what??”