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Knowledge is power when the debt is yours
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8 College Degrees with the Worst Return on Investment

8 College Degrees with the Worst Return on Investment | student loans & managing debt | Scoop.it

"What's more expensive than going to college? Until recently, the answer was easy: not going to college."

 

"Numerous studies over the years have shown that individuals with college degrees significantly out-earn those with high school degrees by $1 million or more over the course of a lifetime."

 

"But as the cost of education increases faster than inflation and the economy remains relatively weak, people are beginning to question how they spend their education dollars."

 

"While there's no doubt that a college degree increases earning power and broadens opportunities, today's high cost of education means it makes sense to more carefully consider which degree you earn."

 

"When it comes to return on investment (ROI), not all degrees are considered equal. This article exposes eight college degrees with poor ROI." by  Dawn Dugan

 

Read more: http://salary.com/8-college-degrees-with-the-worst-return-on-investment/ ;

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How to Find the Best Value College for You as a Student

How to Find the Best Value College for You as a Student | student loans & managing debt | Scoop.it

"How can students and families navigate these confusing and ever-changing waters?"

 

"... I know that a substantial part of college choice must belong to the student. It must encompass facts, but also the “feel” of the college and the fit with the student’s background, personality and interests."

 

"... here are some things, beyond the College Scorecard, to consider in deciding which colleges provide value for you." By David J. Skorton

 

Read more: http://schoolsofthought.blogs.cnn.com/2013/03/26/hfr-my-view-students-find-the-best-value-college-for-you/

Ken Jondahl's insight:

David is the President of Cornell University and as you read his words it is clear he is thinking of the students choices and how they will impact their career. Nothing is a sales pitch for Cornell from what I read.

 

He covers 5 main topics and all of his words speak from the heart, not the back finanical office of a University. It is refreshing to see a President focused on the students well being, not the college. Just wish there were more like him running colleges today.

 

There are also links to other articles which look relevant if you are trying to choose between various colleges and which one will align with your career and your dream job.

 

How the College Score Card is working and "not" working, plus what other options exist to scope out schools. http://schoolsofthought.blogs.cnn.com/2013/02/22/college-scorecard-tries-to-reality-check-school-sticker-price/

 

How to get the most out of your college campus visit

http://schoolsofthought.blogs.cnn.com/2013/03/13/how-to-get-the-most-out-of-your-college-visit/

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A College Degree's Value Vs. the Level of Debt

A College Degree's Value Vs. the Level of Debt | student loans & managing debt | Scoop.it

"With tuition and student debt skyrocketing and dim job prospects awaiting many graduates, states are trying to show residents what kind of return they can realistically expect for investing in a degree from a public college or university."

 

"That’s why Virginia, Tennessee, and Arkansas are collecting salary data on their graduates and posting it online at www.CollegeMeasures.org..."

 

"Before picking a major at a public university, students in three states can go online to see how much money recent graduates are making."

 

Read more: http://www.businessweek.com/articles/2012-12-20/calculating-a-college-degrees-true-value#r=lr-fst

 

Ken Jondahl's insight:

To remove the emotion around the cost of college. Look at a college degree as an investment in your future.

 

Second, balance any debt you will take out against your personal ability to pay it back. The rule is 10 by 10. Using 10% of your take home pay, (after tax), be able to pay off all student debt  in 10 years or less.

 

Third, use current salary information around the job title you are going after when you calculate paying back your loans. (There are lots of surveys around every profession, seek these out, go in eyes wide open.)

 

Fourth, look for a school which will help you graduate in the normal time period for your degree. Many students take 5 years to graduate for a 4 year degree. No big deal, but this pushes up student debt by 25%.

 

NOTE: A small hidden fact around federal student loans. They are no longer forgiven in any way if you default. Yes, you can walk away from a loan and default. However, they can and will take money out of your tax refunds and/or social security payments longer term.

 

If you doubt this, simply google: "social security federal student loans".

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Nate Wilson's curator insight, April 11, 2013 3:47 PM

This interesting article addresses a solution that several states have found to issue of students stuggling finnancialy because of low return-on- investment colleges and degrees. These states have instituded a system to keep records of students, their college, major, and career. The data they collect is then compiled and made available in the form of general statistics to help inform students making future college/education/career choices. This same system had been proposed on a national scale but denied/stalled. These statistics would prove very influencial on student decisions who in turn effect which colleges and courses get the best students.

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Why Men Are More Likely to Drop Out - Wall Street Journal (blog)

Why Men Are More Likely to Drop Out - Wall Street Journal (blog) | student loans & managing debt | Scoop.it

"The wage gap between men with and without bachelor's degrees starts small but grows over time as better-educated men enjoy more opportunities for career advancement."

 

"Moderate levels of debt can actually help students graduate by allowing them to work less and study more. But beyond a certain point, the relationship breaks down—wary of taking on too heavy a debt burden, students drop out."

 

"That dynamic exists for all students, but not equally. According to a new paper in the journal Gender & Society, men are more likely than women to leave school rather than take on more loans."

 

Read more:

http://blogs.wsj.com/economics/2013/02/22/why-men-are-more-likely-to-drop-out/

 

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Pressure Builds for Schools to Help Grads Land Jobs

Pressure Builds for Schools  to Help Grads Land Jobs | student loans & managing debt | Scoop.it

"What's happening at Wake Forest and a handful of other schools, however, is more of an exception than the rule, in spite of intensifying pressure that universities, in a tough job market, do more for students who go deep into debt to pay for their tuition."

 

"Most universities are spending less, not more, on their career centers. Last year, the budget of the average college career office dropped by nearly 16%,  according to the National Association of Colleges and Employers. The average number of job-hunting workshops and internship placements universities provide has also fallen."

 

"The average college career counselor today serves 1,645 students, and on campuses with enrollments of more than 20,000, the ratio is one to an unwieldy 5,876, the association reports."

Ken Jondahl's insight:

Another areas to consider when reviewing the cost of education is what types of helpful services do you get for your money.

 

I for one am not to interested in a school which has 5876 students per 1 career counselor. These schools appear to want one thing, your money...

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How to Get the Most Return on a College Investment

How to Get the Most Return on a College Investment | student loans & managing debt | Scoop.it

"With the rising cost of college and a tough job market, many students may be wondering what a degree is actually worth."

 

"Despite the rising tuition costs at many universities, a degree ultimately  brings higher pay."

Ken Jondahl's insight:

One of my peers used to always quote, "The devil is in the details". This saying brings forth one of the most important aspects of this article.

 

It is true a college degree will bring about more salary long term, however, so will many other forms of experience and/or education.

 

Only you can determine if the career you are studing for will actually "pay" for your education and the lost time/lost salary it takes to finish school.

 

The article covers numerous topics and is solid overview of what to consider around a college education.

http://www.foxbusiness.com/personal-finance/2012/12/17/how-to-get-most-return-on-college-investment/

 

Recommendation, go in eyes wide open and make sure you are reviewing the total cost of education and lost salary potential to go to college.  Not just the promise of a higher salary when you come out.

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Student debt at Minnesota State University among the highest in the nation

Student debt at Minnesota State University among the highest in the nation | student loans & managing debt | Scoop.it
Student debt at Minnesota State University among the highest in the nationMankato Free PressThe Institute for College Access and Success' study also indicated that recent college grads are entering a very tough job market, meaning repaying the...
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Grad School Doesn't Always Equal Career Advancement

Grad School Doesn't Always Equal Career Advancement | student loans & managing debt | Scoop.it

"If you've got job-search woes, promotion troubles, or career confusion, grad school is not the answer. Learn the five reasons to skip grad school when you're at a crossroads, and what you should do instead:"

 

The article discusses 5 areas to review as you consider your options to grow and advance your career.Only you can decide if now is the right time to take on additional debt and whether grad school will help you obtain your dream job.

 

1. There isn’t a high enough return.

2. Employers look for results, not education.

3. Grad school is a poor differentiator.

4. It’s better to do something, not just learn about it.

5. Success is based on relationships.

 

http://www.news.fluser.com/grad-school-doesnt-always-equal-career-advancement/

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Average student debt hits $26,600 while job outlook still bleak for college grads

Average student debt hits $26,600 while job outlook still bleak for college grads | student loans & managing debt | Scoop.it

"A survey of mostly nonprofit public and private four-year universities released Thursday reveals that the average student debt load for 2011 graduates increased yet again to $26,600, a 5 percent increase over 2010, according to the analysis by The Institute for College Access & Success (TICAS)."

 

"That is coupled with a higher-than national average unemployment rate among college graduates — 8.8 percent. The report aslo notes that 19.1 percent of recent graduates are underemployed or working part time and 37.8 percent are working in jobs that don’t actually require a college degree."

 

Read the full article:

http://www.rawstory.com/rs/2012/10/18/average-student-debt-hits-26600-while-job-outlook-still-bleak-for-college-grads/

 

Curious how your state looks compared to other states for average student debt levels, here is another site. Details, including state- and college-level data, can be found in the full report and by clicking on the map and other links on this page.

http://projectonstudentdebt.org/state_by_state-data.php

 

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Flexible Degrees Introverts Can Earn from Home for the Job Search

Flexible Degrees Introverts Can Earn from Home for the Job Search | student loans & managing debt | Scoop.it

"Are you interested in making your way back to school, but prefer a classroom of one, studying solo, and having heated discussions via the computer - opposed to in-person? If so, your introverted personality could find solace in an online degree program."

 

"An introvert would be comfortable in an online setting because there's no face-to-face interaction, they're just in front of a computer," says Anna Katsuki, an academic advisor and associate professor at Orange Coast College in California. "In some online classes, students may just read notes and take quizzes and tests."

 

"Of course, online degrees vary depending on class and instructor, and in some cases, you may still have to interact with students and teachers, notes Katsuki."

 

"All that said, if you think an online degree program might be right for you and your reserved personality, keep reading to learn about five online degrees that could be well-suited for introverts."

http://education.yahoo.net/articles/online_degrees_for_introverts.htm


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Why Students Should Be Wary of Campus Debit Cards - U.S. News & World Report (blog)

Why Students Should Be Wary of Campus Debit Cards - U.S. News & World Report (blog) | student loans & managing debt | Scoop.it

At the Student Loan Ranger, we like to remind students of ways to avoid spiraling debt and to use student loan money wisely. And, with a new school year about to begin, we want to join the warnings about what appear to be school-endorsed debit cards.

 

The Consumer Financial Protection Bureau (CFPB) recently issued a consumer advisory with three important tips:

 

• "You can't be required to use a specific bank or card." Even if there's a bank on campus or you could have funds disbursed on a student ID, schools must offer a paper check or cash option.

 

• "Consider choosing an account before arriving at school." Evaluate fees. Some banks don't charge for using different ATMs.

 

• "If your school offers it, sign up for direct deposit as soon as possible." This should get you your funds faster than a check.

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Marketing Pros: Big Brand on Campus

Marketing Pros: Big Brand on Campus | student loans & managing debt | Scoop.it

Schools are getting the message about messaging.

 

Elite colleges and universities are still attracting plenty of applicants, but weak job-placement numbers for graduates and heavy student debt loads have put schools on the defensive, forcing them to prove to families and state governments that a degree is worth the investment.

 

Enter the chief marketing officer. A relatively new academic position, these marketers manage schools' identities and messaging, a role covering everything from admissions brochures and Twitter feeds to brand management.

 

Some say the arrival of the CMO is the biggest shift in higher-education administration in the past decade—but even more so as schools blur the lines between academia and the corporate world by tapping marketing pros from Fortune 500 firms or hospital systems.

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Appendix A to Subpart N of Part 668—Sample Default Prevention Plan

e-CFR Data is current as of August 16, 2012

Title 34: Education
PART 668—STUDENT ASSISTANCE GENERAL PROVISIONS
Subpart N—Cohort Default Rates

 

Appendix A to Subpart N of Part 668—Sample Default Prevention Plan

 

This appendix is provided as a sample plan for those institutions developing a default prevention plan in accordance with §668.217

 

(a). It describes some measures you may find helpful in reducing the number of students that default on Federally funded loans.

 

These are not the only measures you could implement when developing a default prevention plan.

 

I. Core Default Reduction Strategies

 

II. Additional Default Reduction Strategies

 

III. Statistics for Measuring Progress

 

Full Appendix is here:

http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=ac4f1ccb05f84d368bd8f003be970538&rgn=div9&view=text&node=34:3.1.3.1.34.14.39.19.10&idno=34

 

 

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Choosing a Practical Major to Pay for any Student Loans

Choosing a Practical Major to Pay for any Student Loans | student loans & managing debt | Scoop.it
The major issue for many students is that subjects that often appear practical may turn out to be completely impractical in the context of what students typically want and ought to accomplish in college.
Ken Jondahl's insight:

Worthwhile read as you explore levels of debt as well as which major to consider.

 

I found it intersting which degrees "beyond" science degrees where prevalent in pre-med students which were accepted.

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For Recent Grads, Student Loan Delinquencies Reach 35%

For Recent Grads, Student Loan Delinquencies Reach 35% | student loans & managing debt | Scoop.it

"At the end of last year, almost 17 percent of borrowers were more than 90 days late on payments. Take away those who have deferred payments or are still in school, as illustrated above, and nearly a third of all borrowers were delinquent."

 

"Given the lousy economy and rising college costs, perhaps the true shock is that more borrowers haven't defaulted."

 

Read more: http://www.businessweek.com/articles/2013-03-01/for-recent-grads-student-loan-delinquencies-reach-35-percent

Ken Jondahl's insight:

If you find yourself going into late payments and heading towards default on your federal student loans. Take action by contacting your loan servicer. Options exist, yet the worst thing to do is to let a default occur, "if" options exist.

 

Bankruptcy may get rid of your private loans, however, federal student loans will haunt you forever. Google: "social security federal student loans" to get some ideas of how bad it can become.

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Beyond College Rankings: The Students' Guide to ... - Online Colleges

Beyond College Rankings: The Students' Guide to ... - Online Colleges | student loans & managing debt | Scoop.it

"College rankings have become a pretty big deal over the past few decades, with many schools fighting tooth and nail to raise their rankings or to maintain their current position."

 

"The system, however, has some flaws. While college rankings can give prospective students some idea of what schools have to offer, they’re not exactly a great predictor of which schools would be a good match... depending on individual student needs."

 

"The best way to compare colleges and to ultimately determine which is the best for you? Focus on doing your own meaningful, customized college research."

 

If you’re not sure where to begin, read on to learn some essential tips and tools that can help you in the process..."

http://www.onlinecolleges.org/beyond-college-rankings-the-students-guide-to-college-comparison/

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Career Development hosting Sales and Marketing Networking Night

Career Development hosting Sales and Marketing Networking Night | student loans & managing debt | Scoop.it

If graduation is in your near term sight, it is likely time to consider attending events like this one to begin the process of informational interviews.

 

Granted, they are called Networking events. However, if you attend with the attitude they are informational interviews, it may be easier on the nerves.

 

If you are in the process of considering which school to attend and have it down to a short list based on academics and how it feels at the school. It may be time to ask the question many schools do "not" want you to ask while deciding if you will or will not attend their school.

 

Such as:

 

What types of events on campus does the school support for my discipline in helping me find a job when I graduate?

 

What percentage of my discipline upon graduation from your school find a job within 6 months and what is the average pay? (Does this cover any loans you may have?)

 

What types of support does the school provide to help me with my career development and growth?

 

If they are unable to answer these types of questions. You may want to seriously consider is this the right school for you to attend during these tough job market times.

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The Myth of the Four-Year College Degree

The Myth of the Four-Year College Degree | student loans & managing debt | Scoop.it

According to the Department of Education, fewer than 40% of students who enter college each year graduate within four years, while almost 60% of students graduate in six years.

Ken Jondahl's insight:

My understanding is all schools now have to post someplace to the public how many students graduate within the normal time. There are numerous factors which help and/or hinder graduating on time.

 

The bigger question is how does a school address if they are below normal and what do they say about it. If nothing is said, you may want to add a few more schools to your "wanted list to attend".

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New Student Loan Repayment Option Could Help Recent Graduates

New Student Loan Repayment Option Could Help Recent Graduates | student loans & managing debt | Scoop.it

 

"November is an anxious time for many recent graduates as grace periods end and payments come due on student loans."

 

 

"And last Thursday, as the month began, the Department of Education issued final rules for the new Pay As You Earn plan, giving many federal loan borrowers a new income-driven repayment option."

 

"Income-driven repayment plans can help you avoid default by basing your payment amounts on your income. In addition to the new Pay As You Earn option, current plans for federal loans include Income-Contingent Repayment (ICR), Income-Based Repayment (IBR), and Income-Sensitive Repayment. (Options for private loans will vary depending on your lender, so be sure to ask what's available.)"

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During Job Search Look Within Your Niche

During Job Search Look Within Your Niche | student loans & managing debt | Scoop.it

You can "spray and pray" by using the large job boards, or you can hunt down the jobs which need your skills and capabilities and will grow your career.

 

"With an overwhelming amount of employment websites, how can job seekers be sure they are doing all within their means to completely immerse themselves in their job search? The answer: Search within your niche. Searching for a job in a specialized market can transform your search, and also boost your odds of actually connecting with key players in your industry."

 

"Job seekers can benefit by redeveloping their job search strategy to emphasize the niche of their industry or their personal qualifications. By taking a step back from large job boards and attempting to gain exposure in their specialized industry, job seekers can revitalize their search."

 

Read the article for tips on searching for jobs within your niche market. What many refer to as your sweet spot. Or you can roll the dice and spray and pray on the large job boards.

http://mashable.com/2012/11/11/job-seeking-niche/

 

** Embrace Niche Job Boards

** Network Within Your Niche

** Find Niche Groups in Social Forums

** Volunteer For Your Niche


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Project on Student Debt: State by State Data

Project on Student Debt: State by State Data | student loans & managing debt | Scoop.it

"Two-thirds of college seniors who graduated in 2011 had student loan debt, with an average of $26,600 per borrower. Meanwhile, unemployment for young college graduates remained high at 8.8 percent in 2011."

 

"Details, including state- and college-level data, can be found in the full report and by clicking on the map and other links on this page."

http://projectonstudentdebt.org/state_by_state-data.php

 

If you are a recent graduate and are looking for student loan tips, go here:

http://projectonstudentdebt.org/recent_grads.vp.html

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Concerns raised about student loan defaults

Concerns raised about student loan defaults | student loans & managing debt | Scoop.it

"Former students of for-profit colleges who took out federal loans defaulted on them twice as often as their peers from public institutions during a recent three-year period, the government reported Friday."

 

"What is known as the three-year cohort default rate was 22.7 percent at for-profit schools, 11 percent for public schools and 7.5 percent for private, nonprofit schools. For all sectors combined, the rate was 13.4 percent."

 

What is not mentioned is student loans are no longer forgiven when you take them out from the government programs.

 

Net/net, the best thing you can do is make sure to pay off your student loan. This means taking a degree which allows you to payoff your student loan in 10 years from graduation.

 

If you don't pay off your student loans today the government can actually substract what you owe on your debt from what they owe you in terms of tax refunds, fuure social security, etc.

 

Even today, many seniors are paying for student loans out of their social security payments where they co-signed for a grand-child or child in the past on a student loan. Don't let this happen to you.

http://www.washingtonpost.com/local/education/concerns-raised-about-student-loan-defaults/2012/09/28/99ba45b8-099d-11e2-a10c-fa5a255a9258_story.html

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Snap! Crackle! Pop!...Goes the Student Loan Bubble! - Business Insider

The real fallout from the student loan crisis will hit in mid-2013, four years after the volume of government-funded student loans surged. Like the infamous option ARMs (adjustable-rate mortgages) during the housing bubble, these loans have precisely timed fuses: Four years after the loans are made, borrowers must start making payments.

 

The US Department of Education has become the Countrywide of student lending. After a lending binge started in 2009, it now holds a massive $452 billion portfolio of student loan receivables, according to Federal Reserve data. This so-called “asset” will become a liability by next year.

Thanks to the punk job market, a huge percentage of these loans will go bad or have to be restructured. When that happens, Congress will have to appropriate money to make up for the loan-payment shortfall. What was quietly off budget will soon make a big splash on the federal budget. I expect defaults on government student loans to reach tens of billions of dollars per year starting in late 2013.

 

Like Countrywide, the government is not honestly accounting for its portfolio risks. This $452 billion portfolio doesn’t even include a few hundred billion more in guaranteed student loans. The chief accountant of the Government Accountability Office (GAO) wrote a report dated December 2011 on the federal government’s accounting deficiencies: “The deficiencies, for the most part, involved credit subsidy estimation and related financialreporting processes.” In other words, accounting for below-market loan interest rate subsidies is complex, and the government is not adequately disclosing the risks it is taking.

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It's Time for Customer-Centered Reform of Education: Part 1

It's Time for Customer-Centered Reform of Education: Part 1 | student loans & managing debt | Scoop.it

In our August 7 post, we called upon the national Commission on Educational Attainment to bring forward new "business models" and actionable approaches to enable higher education to do a much better job in creating value for its customers -- i.e., students.  In this post, we provide our analysis and thoughts on why it's time -- past time, indeed -- for customer-centered reform of higher education by examining the following areas that impact the value equation for students:  college costs; graduation and placement rates; return on investment; and career education and skill development.

 

Costs: Colleges Gone Wild. The Federal Student Aid division of the U.S Department of Education in its Strategic Plan FY 2012-2106 states:

 

Graduation and Placement: Less Than Full Achievement and Disclosure.

 

Return on Investment: Fewer Dollars, Less Sense

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Default Prevention and Management

As the director of Federal Student Aid's Operations Performance Division (OPD), I welcome you to the Default Prevention and Management Web site. This Web site is intended to provide default-related information, references, and resources in one location.

 

OPD calculates draft and official cohort default rates, disseminates the rates to schools electronically and allows schools the ability to challenge/appeal the rates since both benefits and sanctions apply to particular cohort default rate thresholds. Guaranty agency and lender cohort default rates are also calculated and disseminated by OPD; however, this Web site pertains only to school cohort default rates and associated issues including default prevention.

 

Katrina Turner Director Operations Performance Division

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