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WHY THE INCREDIBLE STUDENT LOAN BURDEN MUST CHANGE

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WHY THE INCREDIBLE STUDENT LOAN BURDEN MUST CHANGE

Student loan debt in our country has reached horrifying levels with no end in sight! There are more than 44 million borrowers who collectively owe approximately 1.5 trillion dollars with another 100 billion about to be added to tin the coming months as people graduate. Student debt is the second largest form of consumer debt in the United States, second only to mortgage debt. The average college graduate owes approximately $40,000 in student loans upon graduation.

How did we get into this situation and better yet, how are we going to get out of it? It seems clear that the student loan crisis didn’t happen because of one trend or change and that it’s going to take a multi faceted approach to bring student debt into balance. Let’s look at what some of the contributing factors are:

  • Rising college tuition: Costs for secondary tuition have jumped dramatically and those jumps include tuition at 2-year public colleges, 4-year public colleges, and 4-year private colleges. It costs $930 more per year to attend a 2-year college in 2018 than it did in 2008, $2670 more per year to attend a 4-year public college, and $7,390 more year to attend a private 4-year college (difference given in 2018 dollars). The average rate at which tuition has increased ranges from 1.2 times that of general inflation to 2.1 times the general inflation rate – effectively doubling the cost of tuition every 8 years.
  • Rising number of people attending college: Enrollment in 2-year, 4-year, and post graduate programs has increased more than 50% since 1995. This increase is attributed, in part, to employers requiring college degrees to even be considered for most positions.
  • Government education subsidies not keeping pace: State and federal education subsidies,whether directly to the institution or to students in the form of Pell grants, have increased massively over the years but not in proportion to the rise in the number of students. This translates to lower direct and indirect support per student for post-secondary education.
  • Ballooning administrative costs: Administrative positions at colleges and universities increased 60% between 1993 and 2009 according to Bloomberg, 10 times the growth in tenured faculty positions
  • Pricey, upgraded campus amenities: Colleges keep upgrading housing, dining, technology, entertainment and fitness options to be competitive when it comes to attracting the most desirable kind of students: those with high GPAs and low need for financial aid. Costs spent per student by colleges are often viewed as attractive or used in comparative college rankings, rewarding institutions who outspend their competitors with increased student demand to attend.
  • Stagnating wages: Wages have not kept pace with inflation and certainly haven’t kept pace with rising college costs. Adjusted for inflation, the average American earns less today than they did in 1988. It’s become virtually impossible for even highly motivated students to be able to pay for college by themselves by working part-time. Stagnating wages also negatively affect graduates’ ability to pay off student loans after graduation.

The lure of a college degree as validation for student debt can be especially deadly for those who never graduate. 60% of students who start at a 4-year college graduate within the next six years. That leaves 40% without the college degree usually required to get better jobs but still likely burdened by student debt. It shouldn’t be too shocking to learn, then, that it’s borrowers with lower levels of student debt who are much more likely to default on their loans. 32% of borrowers with $5,000 or less in student debt defaulted on their loans within a four year period according to a report from The Urban Institute.

There are very real costs to society when young people are burdened by such high levels of debt. A 2017 Federal Reserve study found a correlation between higher student debt and lower rates of home ownership. Deferring marriage, waiting to have children, deciding against graduate school or not taking a lower paying public service job were additional real consequences of student debt, the study found.

College remains a good investment provided that those incurring debt are able to graduate and get their degree because of the value conferred by having a degree. College graduates can expect to make 84% more than a high school graduate, according to a 2011 Georgetown study. That degree value is lower for women and non-whites as well as for degrees such as those in fine arts or less marketable specialties.

It’s likely that overall, the student debt situation will become worse before it becomes better. We might need to get to a real crisis level of default, debt, and inability to fill jobs before politicians find the urgency and motivation to address how we finance college educations and how we manage student debt. We know, as a country, that we’re not producing highly skilled workers at a pace to replace soon to retire professionals. Meanwhile student debt continues to accrue at vast and terrifying pace.

Office Hours: The University of California Application; Inside the Admissions Office: American University; Listener Questions on College Finance By Elizabeth Heaton

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Variety
Office Hours: The University of California Application; Inside the Admissions Office: American University; Listener Questions on College Finance By Elizabeth Heaton

In this week’s Office Hours segment, we’ll be exploring the University of California application.

In another installment of Inside the Admissions Office, we’ll look at how admissions are done at American University.

Finally, we’ll be answering your college finance questions.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

Office Hours: Summer College Visits; Evaluating College Career Services Offices; Your College Finance Questions By Elizabeth Heaton

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Variety
Office Hours: Summer College Visits; Evaluating College Career Services Offices; Your College Finance Questions By Elizabeth Heaton

In this week’s Office Hours segment, we’ll be offering tips for making the most of your college visits this summer.

While you’re visiting schools, you might consider a stop at the Career Services office. Michael Sherman of Graduate to Employment will offer tips to best evaluate how much support a college will offer in terms of finding a job.

Finally, we’ll be answering your college finance questions.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

Applying to College as an LGBTQ Student; Office Hours: Your College Finance Questions By Elizabeth Heaton

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Variety
Applying to College as an LGBTQ Student; Office Hours: Your College Finance Questions By Elizabeth Heaton

In this week’s episode, we welcome Point Foundation program manager Jonathan Rosales and student scholar Bryce Celotto to the show to discuss applying to college as a LGBTQ student.

In Office Hours, we’ll be answering listener questions regarding college finance.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

Alternative Path to Accelerated Medicine Programs: Bachelor of Science/Doctor of Osteopathic Medicine; Office Hours: College Finance and Admissions Listener Questions By Elizabeth Heaton

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Variety
Alternative Path to Accelerated Medicine Programs: Bachelor of Science/Doctor of Osteopathic Medicine; Office Hours: College Finance and Admissions Listener Questions By Elizabeth Heaton

Lots of high school students aspire to careers in medicine, and they hope to get on the fast track to being a doctor by applying to BS/MD programs. But many aren’t aware there is another option that is slightly less selective, and therefore often a bit easier to attain: BS/DO. We’ll tell you all about it on this week’s show.

We’re also answering your college finance and admissions questions in Office Hours.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

Alternative Path to Accelerated Medicine Programs: Bachelor of Science/Doctor of Osteopathic Medicine; Office Hours: College Finance and Admissions Listener Questions By Elizabeth Heaton

Posted by Editor on
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Variety
Alternative Path to Accelerated Medicine Programs: Bachelor of Science/Doctor of Osteopathic Medicine; Office Hours: College Finance and Admissions Listener Questions By Elizabeth Heaton

Lots of high school students aspire to careers in medicine, and they hope to get on the fast track to being a doctor by applying to BS/MD programs. But many aren’t aware there is another option that is slightly less selective, and therefore often a bit easier to attain: BS/DO. We’ll tell you all about it on this week’s show.

We’re also answering your college finance and admissions questions in Office Hours.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

New Common App Essay Prompts; Scholarship and Financial Aid Renewability; Office Hours: Starting Your Common App Essay By Elizabeth Heaton

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Variety
New Common App Essay Prompts; Scholarship and Financial Aid Renewability; Office Hours: Starting Your Common App Essay By Elizabeth Heaton

One of the most important things you need to understand about your financial aid and/or scholarship packages is whether or not they are renewable for all four years. Tune in to this week’s episode for more information about how to determine the terms of your offer from this perspective.

In other segments, we’ll be walking you through the Common App essay prompts for the 2017/2018 application season, which were recently released.

And in our Office Hours segment, we’ll offer some thoughts on starting the essay process.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

A Day in the Life of an Admissions Officer; How to Financially Plan for all Four Years By Elizabeth Heaton

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Variety
A Day in the Life of an Admissions Officer; How to Financially Plan for all Four Years By Elizabeth Heaton

Ever wonder what life is like as an admissions officer? Understanding what they’re doing on a daily basis can be especially valuable in understanding who will be reading your application. This segment will specifically focus on reading season, which is what we call that time of year when pretty much all you do as an AO is read files. 
In our other segment, we’ll talk about the importance of crafting a plan for paying for all four years of college and offer suggestions about how to best do that.  

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

Can an Average Student Get Into a Top-Tier School?; Options if You Can’t Pay the Spring College Bill; Office Hours: Avoiding the Rumor Mill; Our 100th Show! By Elizabeth Heaton

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Variety
Can an Average Student Get Into a Top-Tier School?; Options if You Can’t Pay the Spring College Bill; Office Hours: Avoiding the Rumor Mill; Our 100th Show! By Elizabeth Heaton

We celebrate our 100th episode with a special giveaway for our listeners!

We answer a lot of listener questions on the show, and one that we get asked fairly frequently is “Can an average student get into a top-tier school?” Tune in to find out.

We’re also looking at options for families who find themselves without the money to pay for their spring college bills.

And in Office Hours, we’ll discuss the rumor mill, including how to recognize a rumor and separate fact from fiction.

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

More Here!

School’s Out Application Workshop; Paying for Multiple Kids in College; First Generation Students on College Campuses By Elizabeth Heaton

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Variety
School’s Out Application Workshop; Paying for Multiple Kids in College; First Generation Students on College Campuses By Elizabeth Heaton

One of the scariest things about having more than one child close together is paying for all those diapers, but what happens when diapers turn into college tuition? We have some advice for those of you who will be in this situation shortly.

We’ll also explore predictors for success and discuss resources for first generation students heading off to college.

And we’ll feature another of our School’s Out Application Workshop sessions. Tune in!

About College Coach

Since 1998, College Coach has been the nation’s leading provider of educational advising and 100% of our students have received acceptances.

Every College Coach advisor is a full-time team member and all were admissions or finance officers at the nation’s top colleges, including Columbia, Georgetown, Harvard, and more.

Tune in to Getting In: A College Coach Conversation every Thursday at 1pm PST

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