Those of you high school seniors who will be embarking on your college years starting this fall need to ponder a common exclamation that you’ll hear as you traverse those halls of ivy. “Just wait until you get out into the real world!” will be hurtled at you by those who are already in the real world. This should immediately make you ask, “Well, what is it about the real world that makes it so different from life here at college?”

Well, remember Raymond “Ray” Stantz, Ph.D from the movie Ghostbusters? Ray was a scientist who, in his esteemed career, avoided climbing the corporate ladder, which so many new college grads aspire to tackle. Perhaps his most cogent insight came when he proclaimed, “I’ve worked in the private sector. They expect results!” This wisdom is a prime key to understanding the difference between college and the real world.

Ray’s proclamation should make you wonder what your prospective real-world employers will expect of you as a potential new hire, fresh out of college. Some quantitative data have recently come to light that should help you get a preview of which areas to emphasize during your journey to your first sheepskin. Anne Fisher has written a highly interesting article on CNN Money entitled Executives to new grads: Shape up! — Most senior managers are unimpressed with the entry-level job applicants they’re seeing, reports a new survey. It spells out in exact terms the areas in which America’s corporate executives see recent college graduates falling short in their real-world (perhaps better said as “corporate ladder”) preparation. Whether these criticisms are more an indictment of colleges or the graduates themselves is a matter of conjecture, but the statistics are sobering. Let’s take a look at some highlights from Anne’s article.

Executives to new grads: Shape up!

Most senior managers are unimpressed with the entry-level job applicants they’re seeing, reports a new survey.

Note to recent college grads and the Class of 2012: You may not be as ready for the working world as you think you are. At least, that’s the opinion of about 500 senior managers and C-suite executives in a study by Global Strategy Group, on behalf of worldwide architectural firm Woods Bagot.

In all, a 65% majority of business leaders say young people applying for jobs at their companies right out of college are only “somewhat” prepared for success in business, with 40% of C-suite executives saying they are “not prepared at all.” Not only that, but even those who get hired anyway may not rise very far. Almost half (47%) of C-suite executives believe that fewer than one-quarter (21%) of new grads have the skills they’ll need to advance past entry-level jobs.

And what skills might those be? The most sought-after are problem-solving (49% ranked it No. 1), collaboration (43%), and critical thinking (36%). Also in demand is the ability to communicate clearly and persuasively in writing (31%). Technology and social media skills came in at rock bottom on the list, valued highly by only a tiny 5% minority of senior managers. The kicker: According to the poll, new grads fall far short of the mark in every one of these areas — except tech savvy, the least desired.

Jeffrey Holmes, principal at Woods Bagot, notes “an interesting disconnect”: “Despite a widespread impression that social media make people better at communicating and collaborating, that’s apparently not the case.” Why not? “Being adept at using social media is like ‘show and tell.’ It’s mostly one-way communication, with less emphasis on taking a flood of information and turning it into useful knowledge,” Holmes says.

“Companies need people who can synthesize information and apply it to business problems. I see this even at our own firm,” he adds. “There’s less room for new hires who don’t have that ability. Technical skill is not enough.” …

… “Now, companies want young people who walk in the door with these abilities,” Holmes notes. “The pace of business has accelerated to the point where expectations are much higher now.”

And whose fault is it if most college grads haven’t got what it takes to get ahead? The executives surveyed overwhelmingly believe that academia has failed to keep up with the breakneck pace of change in the business world: More than three-quarters (77%) blame educators for new grads’ lack of readiness.

***

Looks like these real-world execs don’t have a problem blaming colleges and universities for the shortcomings of new hires. So, the message here, at least according to this survey, is to adjust your thinking about what you’ll accomplish during your collegiate years. Maybe you should get a poster of the Ghostbusters Stay Puft Marshmallow Man and put it on the wall of your college dorm room. Then it can remind you of Dr. Ray’s admonition. Yes, Virginia, the private sector does expect results!

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Be sure to check out all my admissions-related articles and book reviews at College Confidential.

One of the bigger issues in national economy discussions is the ever-surging cost of going to college. I won’t bother showing you a chart that documents that fact. Just imagine two lines. The one that looks relatively flat over the past few decades is your income. The line that appears to track the flight of the space shuttle is the cost of attending a four-year, degree-granting college or university. Got the picture? I’m sure that you’ve seen those lines before.

Well, this is an election year, after all, so it’s time to promise hard-pressed families some relief from the financial burdens of higher education. The man in the driver’s seat now is President Obama, who is vigorously campaigning for re-election. This past week, while addressing students at the University of Michigan–Ann Arbor, he issued a threat to schools that intend to continue their steep increases in cost over the coming years. In warlike terms, he (as one news story reported) “fired a warning shot at the nation’s colleges and universities” by threatening to stop federal aid to those schools that continue to “jack up tuition” year after year.

How or if this will happen remains to be seen. Of course, there are several things to keep in mind. First, this was a campaign speech and a promise by a politician. One might care to consider the value of campaign promises. Next, not all colleges receive federal aid, so the president’s threat will fall on some deaf ears. Finally, even if such a promise were to be enacted, assuming the president’s second term in office, the wheels of government grind excruciatingly slowly, so this year’s high school senior might be fortunate to see his younger brother or sister benefit from a lower rise in college costs.

Here are a few highlights from that news story reporting on President Obama’s Ann Arbor speech. You can judge the effectiveness of his plan for yourself.

Obama warns colleges: Rein in tuition or risk aid

by Jim Kuhnhenn and Kimberly Hefling: Associated Press

President Barack Obama fired a warning shot at the nation’s colleges and universities on Friday, threatening to strip their federal aid if they “jack up tuition” every year and to give the money instead to schools showing restraint and value.

Obama can’t proceed, though, without the OK from Congress, where the reaction of Republican lawmakers ranged from muted to skeptical. Higher education leaders worried about the details and the threat of government overreach, and one dismissed it as mere election-year “political theater.”

Average tuition and fees at public colleges rose 8.3 percent this year and, with room and board, now exceed $17,000 a year, according to the College Board.

Obama delivered his proposal with campaign flair, mounting a mainstream appeal to young voters and struggling families. He said higher education has become an imperative for success in America, but the cost has grown unrealistic for too many families, and the debt burden unbearable.

“We are putting colleges on notice,” Obama told an arena packed with students at the University of Michigan.

“You can’t assume that you’ll just jack up tuition every single year. If you can’t stop tuition from going up, then the funding you get from taxpayers each year will go down.”

Obama is targeting only a small part of the financial aid picture — the $3 billion known as campus-based aid that flows through college administrators to students. He is proposing to increase that amount to $10 billion and change how it is distributed to reward schools that hold down costs and ensure that more poor students complete their education …

… Rep. John Kline, R-Minn., chairman of the House Education and Workforce Committee, said Obama put forward “interesting ideas that deserve a careful review.” But Rep. Virginia Foxx, R-N.C., who leads a House panel with jurisdiction over higher education, said Obama’s plan should have tackled federal regulations that she said contribute to the problem.

The top Democrat on the House education committee, Rep. George Miller, D-Calif., said Congress has bipartisan concern about the rising costs of college and thinks the president’s plan will open up a conversation about the problem. Some Republicans in the past have offered proposals similar to the president’s.

Enacted or not, Obama’s plan may have the kind of popular appeal he can use in the campaign …

… Mary Sue Coleman, president of the University of Michigan, said schools should be challenged to find ways to restrain costs, but they can’t continue to make up for state cuts. Money for state universities in Michigan dropped by 15 percent in this year’s state budget, and many — including the University of Michigan — raised tuition to help make up for the lost support …

… University of Washington President Mike Young said Obama showed he did not understand how the budgets of public universities work. Young said the total cost to educate college students in Washington state, which is paid for by tuition and state government, has actually gone down because of efficiencies on campus.

***

So, what do you think of the president’s plan? I posted a thread about this on the College Confidential discussion forum. There are some very interesting comments there. Check them out and then let me know what you think in the comments section below. Is the president’s plan a sound one or just so much campaign gunsmoke?

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Be sure to check out all my admissions-related articles and book reviews at College Confidential.

This article summarizes President Obama's FY2013 budget proposals for
the federal student aid programs. Most of these proposals will require
Congressional approval before they can be implemented. The combined
cost of the President's proposals are in excess of $10 billion per
year.

Student Loan Interest Rates

Who: 7.4 million undergraduate students receiving need-based
subsidized Stafford loans in 2012-13.

What: The fixed interest rate will be 3.4% instead of 6.8%.

Who Doesn't Benefit: The interest rates on subsidized Stafford
loans to graduate and professional students will remain at 6.8%. The
interest rates on unsubsidized Stafford loans will remain at 6.8% for
all students.

Duration: The change is a one-year extension of the 3.4%
interest rate, just for new loans in 2012-13. It is not a permanent
extension.

Impact: The average subsidized Stafford loan to undergraduate
students is about $3,500. Congress eliminated subsidized interest
during the 6-month grace period after graduation for new loans in
2012-13 and 2013-14. Assuming that the students capitalize the
interest during the 6-month grace period, the difference in total
payments over the life of the loan will be $888 on a 10-year repayment
term ($7.40 per month) or $1,855 on a 20-year repayment term ($7.73
per month). Assuming a typical distribution of repayment terms, an
additional year of 3.4% fixed-rate subsidized Stafford loans to
undergraduate students will cost the federal government more than $7
billion.

Background: The College Cost Reduction and Access Act of 2007
(P.L. 110-84) enacted a phased-in interest rate reduction on
subsidized Stafford loans to undergraduate students, gradually
reducing the interest rates from 6.8% to 3.4%. This legislation was
enacted to fulfill the Democrats' "Six for '06" pledge to slash the
interest rates on student loans in half. The interest rates were
reduced from 6.8% in 2007-08 to 6.0% in 2008-09, 5.6% in 2009-10, 4.5%
in 2010-11 and 3.4% in 2011-12. If Congress does not act, the interest
rates will be 6.8% in 2012-13.

Double the Number of Federal Work-Study Jobs

Who: About 713,000 mostly undergraduate students currently
receive Federal Work-Study jobs as part of their need-based financial
aid packages. (About 4% of the jobs go to graduate and professional
students.) The number of Federal Work-Study jobs would increase to 1.4
million per year, phased in over five years.

What: The Federal Work-Study program provides part-time jobs to
college students to help them earn money to pay for college costs,
such as tuition and textbooks.

Impact: The typical Federal Work-Study job involves 8-12 hours
of work per week and pays an average of $1,642 per year. Wages must be
at least the federal minimum wage of $7.25 per hour. The federal
government pays 75% of the wages, with the remaining 25% paid by the
employer (usually the college). The cost to the federal government for
this proposal, when fully phased-in, will be about $1 billion a year.

[page]

American Opportunity Tax Credit (AOTC)

Who: More than 9 million mostly undergraduate students benefit
from the American Opportunity Tax Credit each year.

What: The American Opportunity Tax Credit is a modification of
the Hope Scholarship Tax Credit. It increases the amount of the Hope
Scholarship tax credit from $1,800 to $2,500, extends it from 2 years
of postsecondary education to 4 years, makes the tax credit partially
refundable and raises the income phaseouts.

When: The American Opportunity Tax Credit expires at the end of
2012 if not extended by Congress. President Obama is calling on
Congress to make the American Opportunity Tax Credit permanent.

Impact: The cost to the federal government from this tax
expenditure is approximately $3 billion to $4 billion per year.

Background: The American Opportunity Tax Credit was enacted as
part of the American Recovery and Reinvestment Act of 2009
(P.L. 111-5). It was initially available for the 2009 and 2010 tax
years. The Tax Relief, Unemployment Insurance Reauthorization and Job
Creation Act of 2010 (P.L. 111-312) extended the tax credit for the
2011 and 2012 tax years.

Helping Consumers Make Informed Decisions about College Costs and Quality

What: The College Scorecard will provide families with
"essential information about college costs, graduation rates and
potential earnings," according to a White House fact sheet. The
Financial Aid Shopping Sheet will help families make informed
decisions concerning college affordability by providing clear, correct
and comparable disclosures of college costs and financial
aid. President Obama is also proposing to collect earnings and
employment information for colleges to help create the College
Scorecard. (This may also be a step toward extending the gainful
employment regulations, which are essentially affordable debt
restrictions, to all colleges, not just for-profit colleges.)

Background: The Higher Education Opportunity Act of 2008
(P.L. 110-315) required the US Department of Education to develop a
model financial aid offer form as a voluntary standard for colleges
and universities.
The US Department of Education and Consumer Financial Proection Bureau
released a draft Financial Aid Shopping Sheet as part of the
Know Before You Owe: Student Loans
project in October 2011.
The Consumer Financial Protection Bureau received more than
20,000 comments
on the draft, mostly positive.
President Obama is proposing to make an updated version of this draft
a required standard for colleges and universities.

[page]

Basing Campus-Based Aid on College Cost Containment

What: Campus-based aid are pools of money provided to colleges
and universities to award to students to help them pay for college
costs. The main campus-based aid programs are the Perkins loan
program, the SEOG grant program and the Federal Work-Study program.

How: President Obama proposes to increase the amount of Perkins
loan money from $1 billion to $8 billion a year. The SEOG and Federal
Work-Study programs each provide $1 billion in funding per year. The
$10 billion in campus-based aid will be about 6% of federal student
aid spending. The President's proposal would replace the historical
allocation formula with a new formula that bases a college's
allocations on whether the college reduces net tuition prices,
restrains tuition growth and enrolls and graduates relatively higher
numbers of Pell Grant eligible students. It would give colleges a
financial incentive to control college costs and to better serve
low-income students.

Caveats: The redesigned Perkins loan program would share few
features with the current Perkins loan program. The current Perkins loan is a
subsidized loan with a 5.0% interest rate and a 9-month grace period
after graduation. The new Perkins loan will be similar to the
unsubsidized Stafford loan, with a 6.8% interest rate and a 6-month
grace period after graduation. Colleges would be able to award Perkins
loans to students after they had exhausted federal Stafford and PLUS
loan eligibility. The new Perkins loans would be intended to replace
private student loan borrowing.

Background: The President's proposal is an updated version of a
similar proposal that was included in the
Student Aid and Fiscal Responsibility Act (SAFRA).
The SAFRA legislation passed the US House of Representatives on September
18, 2009, but the legislative language implementing the redesign of
the Perkins loan program was dropped from the Senate version of the
legislation, which ultimately became the Health Care and Education
Reconciliation Act of 2010 (P.L. 111-152).
The SAFRA legislation would have increased Perkins loan program
funding from $1 billion to $6 billion a year. A hold harmless
provision would have ensured that colleges retained at least their
current Perkins loan allocations. The new Perkins loan money, however,
would have been allocated according to a complicated formula
that compares college tuition rates and success in graduating Pell
Grant recipients with the performance of other colleges of the same
type (e.g., public, private non-profit and private for-profit).
Colleges with below-average tuition or net tuition rates would get
more money, as would colleges with above-average graduation rates for
Pell Grant recipients.

Race to the Top for College Affordability and Completion

What: President Obama proposes to award a total of $1 billion
in prize money to states who contain college costs and boost
graduation rates. President Obama is also calling on state governments
to make funding higher education a higher priority in state
budgets. Cuts in state appropriations have been a key driver of
tuition inflation at public colleges and universities over the past
several decades. For example, state legislatures cut funding for
higher education by 7.6% in 2011-12. More than four-fifths of the
state governments cut spending on higher education by as much as 41%
this year, leading to above-average public college tuition inflation,
with double-digit tuition increases in ten states.

Increase Maximum Pell Grant

What: The maximum Pell Grant will be $5,635 in 2013-14, up from
$5,550 in 2012-13, a 1.5% increase. This is the first increase in the
maximum Pell Grant in three years. The maximum Pell Grant has remained
unchanged at $5,550 since 2010-11.

Background: The increase in the maximum Pell Grant is according
to the schedule enacted as part of the Health Care and Education
Reconciliation Act of 2010 (P.L. 111-152).

I am under 24 years of age. I did not have any income the year
before last. I have 2 children and live with a partner of 6 years. He
is the father of my children. We are not married. He supported us on
his income; my mother did not. I was a stay at home mom. My school is
telling me I need to report my mother's information on the FAFSA. But
the people with FAFSA said I do not. I keep getting different answers
to what I should do.

Not to mention that I have been asking my mom to give me the
information since last semester, which I could not afford so I dropped
my classes. She said I'm an adult and I should be able to handle this
myself.

My school told me to write a statement of common law marriage to put
down my significant other's tax information so I could get financial
aid for this year. To me that is just all confusing, so I do not want
to do that until it legally says we are married.

I have been working since June of last year, but I'm not sure how much
I would have to make to say I provided half the support for my kids. I
only made under $8,000 last year. I also do not claim the kids on my
taxes; their father does.

I am just going to start out new for this year and deal with the
stress of paying out of pocket. But it's draining me. I won't be able
to continue like this. I do not know what I am supposed to do. Please
help point me in the right direction.
— Desiree

The answer provided by the FAFSA people, also known as the Federal
Student Aid Information Center (1-800-4-FED-AID), is correct.

Parental information is not required on the FAFSA of an independent
student. An applicant who has one or more dependents other than a
spouse is considered to be an independent student. (The refusal of the
applicant's parent to complete the FAFSA is irrelevant to the
determination of the applicant's dependency status.)

For the applicant's children to be considered dependents of the applicant,
the applicant must provide more than half of the children's
support. (It is sufficient if the applicant provides more than half
support to a single child, even if she has multiple children, since
just one dependent child is sufficient to make the applicant independent.)

The definition of support includes more than just the cash and in-kind
support that is directly provided by the applicant. Any support
received by the applicant for her children counts as part of the
support she provides to her children, so long as the support was not
received from the applicant's parents. For example, any support the
applicant receives from the children's father counts as part of her
support for the children. Money received from government benefit
programs, such as TANF, also counts as part of the applicant's support
for the children. (Note that the definition of support used for
federal student aid purposes is not the same as the definition of
support used for federal income tax purposes. The treatment of
government benefit programs is one of the areas in which the US
Department of Education and the IRS differ.)

If the support provided by the applicant exceeds the support provided by
her parents, the children are considered to be dependent on the
applicant and the applicant is considered to be an independent student.

The applicant does not need to be married to her boyfriend or to list
his income on her FAFSA in order to count the support he provides as
part of her support of the children. However, any support he provides
to the applicant or her children must be reported on her FAFSA in the
line labeled "Money received, or paid on your behalf (e.g., bills),
not reported elsewhere on this form." This includes not just the cash
he provides and the bills he pays on the applicant's behalf, but also
the fair rental value of the lodging he provides. According to page
AVG-20 of the 2011-12 Application and Verification Guide, "Cash
support includes money, gifts, and loans, plus housing, food,
clothing, car payments or expenses, medical and dental care, college
costs, and any money paid to someone else on [her] behalf."

[page]

This scenario is specifically addressed by the Application and
Verification Guide. The Application and Verification Guide is part of
the Federal Student Aid Handbook, a source of subregulatory guidance
provided to college financial aid administrators by the US Department
of Education. College financial aid administrators must generally
comply with the guidance published by the US Department of Education
unless there is a special circumstance not addressed by the
guidance. The following is an excerpt from page AVG-25 of the 2011-12
Application and Verification Guide. Similar guidance has been
published for over a decade.

Other sources of support for children and other household members

If the student is receiving support to raise her child, is the child
still considered a legal dependent? If one or both of the student’s
parents are directly or indirectly providing more than 50% support in
cash or other assistance to the child, then the student would answer
"No" to the FAFSA question about legal dependents. "Indirect support"
to the child includes support that a parent gives to the student on
behalf of the child. If the student is living with a parent who is
paying for most of the household expenses, the parent would usually be
considered the primary source of support to the child, and the student
would answer "No" to the question about legal dependents. However,
there may be some cases where the student can demonstrate that she
provides more than half of her child’s support even while living at
home, in which case she would answer "Yes" to the question about legal
dependents.

When the student receives money for the child from any source other
than her parents, she may count it as part of her support to the
child. Sources include child support and government programs, such as
TANF and the Supplemental Nutrition Assistance Program (SNAP, formerly
the federal Food Stamp Program), that provide benefits for dependent
children. So a student may be considered independent when the benefit
she receives is the primary support for her child. For example, if a
student who lives alone with her child receives cash from her
boyfriend that amounts to more than 50% support for her child, then
she would be able to count the child as a dependent and in her
household size, and she would be independent. If the boyfriend is the
father of the child and a student himself, then he would also be able
to count the child as a dependent and in his household size, and he
would be independent too.

Page AVG-14 of the Application and Verification Guide addresses
situations in which the applicant reports no income on her FAFSA. An
applicant who reports zero income is likely to be selected for
verification. The college financial aid administrator may ask the
applicant for information about how she supported herself even if her
FAFSA wasn't selected for verification. The financial aid
administrator may use professional judgment to adjust the income data
elements on the FAFSA to "reflect income the family receives that
doesn’t appear on the tax return." The Application and Verification
Guide also states that "Any cash support for the student, other than
support from a parent for a dependent student, counts as untaxed
income and must be reported." While in-kind help is not considered to
be untaxed income, the financial aid administrator may use
professional judgment to make adjustments corresponding to the value
of the in-kind help. These adjustments may include modifying data
elements on the FAFSA and/or changing the cost of attendance, as
appropriate.

Ask Kantro is written by Mark Kantrowitz, an expert on paying for
college and publisher of Fastweb.com and FinAid.org, the leading free
web sites for information about student financial aid, student loans
and scholarships. Write to Ask Kantro at AskKantro@Fastweb.com.
Follow him on Twitter at @mkant.

When I was in high school, I knew a guy whose motto was, “They say cheaters never win, but I’m doing okay.” Talk about pragmatists. Unfortunately, cheating has become so widespread that our academic culture is changing. Perhaps the biggest and most dramatic change may be about to happen in regards to taking the SAT.

You might have heard about the Long Island SAT cheating scandal, which may have been the straw that broke the Educational Testing Services’ back. It’s a fact that the cleverness of today’s youth, combined with our ever-evolving technology has created myriad challenges for those who deploy both standardized and in-class tests. Consequently, that same sophisticated technology is allowing test administrators to push back against the cheaters.

Can you say, “mobile DNA security scan”? Here’s the scoop from CBS New York:

‘Digital DNA’ May Soon Be Required To Take SAT And ACT Exams

Stony Brook Scientists Create What They Say Is Foolproof Way To Defeat Fraud

Since the SAT and ACT cheating scandals broke wide open on Long Island, lawmakers have pledged to come up with unique cutting edge ways to combat identity theft.

… If you plan on taking college entrance tests in the future you may be subjected to a new “digital DNA” scan, one that researchers say can’t be beaten by fraud …

… Inside the applied DNA sciences lab at Stony Brook University researchers are hard at work inventing and perfecting a system that can prevent cheating on SAT and ACT exams.

“A novel system that’s absolutely unbreakable for securing the identity of a student taking the SAT exam,” said Dr. James Hayward.

The foolproof ID plan and others will be presented to lawmakers, who have pledged to parents, teachers and students that they will work together to protect exam integrity, hold cheaters responsible and fix the fraud, following the shocking scandal that spread from Great Neck North High School to include some 30 test takers and test payers faking their own identities, hoping to buy their into top scores and top schools.

[Regarding that Long Island cheating scandal linked to above:

"Eshaghoff says taking the test for someone else was as simple as making a high school ID.

'I took the template from my high school ID, pasted my picture on top of it, and whatever person’s name whose test I was taking, I would have their name and date of birth on it. And it was really as easy as that,' he said.

Over nearly three years, Eshaghoff took the SAT at least 15 times, scoring in the 97th percentile or higher for the students he called his 'clients.' He charged as much as $2,500 per test."]

“It’s a great way for people to really be who they are when they take the test, and not try to fake it,” Massapequa High School graduate Jennifer Karp told McLogan.

Karp volunteered her forensic image for a digital DNA. It begins with mandatory pre-registering at a student’s home school with official legal ID documents only.

“All of that is uploaded to an I.T. system of wireless connections called the ‘CLOUD,’” Dr. Hayward said.

The student’s unique digital DNA code is created and assigned to an ID card with covert authentication marks printed onto it. Proctors can verify instantly with a simple UV light and smart phone scan.

… The technology has been used by the federal government at highly secure sites. Some lawmakers see no reason why a plan like this can’t be implemented and paid for by the Educational Testing Service and College Board.

The mobile DNA security scan would be done as the student enters and again at the conclusion of the test.

***

I’m always leery of phrases like “researchers say [it] can’t be beaten by fraud.” The same technology that created the unbeatable system can certainly be used to defeat it. My suggestion for SAT takers: Do your best … on your own!

**********

Be sure to check out all my admissions-related articles and book reviews at College Confidential.

In the state of the union address on Tuesday, January 24, 2012,
President Obama proposed several increases in student aid
spending. The first two proposals call for Congress to extend existing
student aid programs that are scheduled to expire this year.

Stop the pending increase in student loan interest rates. The
College Cost Reduction and Access Act of 2007 enacted a phased-in
interest rate reduction on subsidized Stafford loans to undergraduate
students. This legislation cut the fixed interest rate on these loans
from 6.8% in 2007-08 to 6.0% in 2008-09, 5.6% in 2009-10, 4.5% in
2010-11 and 3.4% in 2011-12. But unless Congress acts, new loans in
2012-13 will revert to a 6.8% interest rate, double the current 3.4%
interest rate.

Extend the American Opportunity Tax Credit's improvements to the
Hope Scholarship Tax Credit. The American Opportunity Tax Credit,
one of President Obama's original campaign promises, increased the
maximum Hope Scholarship tax credit from $1,800 to $2,500, made it
available for four years of postsecondary education instead of two,
added textbooks to the list of qualified higher education expenses,
increased the income phaseouts and made the tax credit partially
refundable. These improvements will expire at the end of 2012 unless
extended by Congress.

Double the number of Federal Work-Study jobs. Federal
Work-Study jobs help more than 700,000 students earn money to pay for
college. President Obama's proposal would double the number of Federal
Work-Study jobs to 1.4 million.

In addition, President Obama called upon state legislatures to put a
higher priority on funding for higher education, colleges to control
tuition inflation and Congress to pass the Dream Act.

Public college tuition inflation goes through feast/famine
cycles. During a recession and for a few years afterward, state income
tax revenue decreases because of high unemployment rates. The states
must balance their budgets and one of the first budget items they cut
is support of postsecondary education. This, in turn, forces public
colleges to cut classes and increase tuition. They also increase
enrollment of out-of-state students who pay higher tuition. Cuts in
state appropriations to public colleges over the past four decades
have been the primary driver of public college tuition inflation. The
state legislatures have also cut state grant programs on a per-student
constant dollar basis. The cuts in state appropriations and state
grant programs this year are particularly severe. But it is also
ironic for the federal government to be calling on state legislatures
to increase their investment in postsecondary education, when Congress
has been cutting federal student aid programs.

President Obama's proposals for increasing student aid funding are
targeted at middle-income families, not just low-income students. A
quarter of students receiving subsidized Stafford loans are from
middle-income families. A third of the recipients of education tax
benefits and Federal Work-Study jobs are from middle-income families.

The total cost of the three student aid proposals is at least $10
billion a year. Assuming a 10-year repayment term, extending the 3.4%
interest rate on subsidized Stafford loans to undergraduate students
will cost about $5.6 billion for each additional year ($4.5 billion on
a net present value basis, assuming a 5% discount rate). Assuming a
20-year repayment term, the cost is $12.6 billion for each additional
year of new 3.4% fixed rate loans ($8.2 billion on a net present value
basis). Doubling the number of Federal Work-Study jobs will cost $1.2
billion a year. Extending the American Opportunity Tax Credit will
cost several billion dollars a year.

These proposals are not well-targeted at students with the greatest
financial need. The 3.4% interest rate on subsidized Stafford loans,
for example, mostly helps students after they graduate. Individual
borrowers will save about $6 per month per year of subsidized Stafford
loans at the higher rate, on average. Cutting the interest rates on
student loans does not improve access to a postsecondary education,
retention rates or graduation rates.

This is in contrast with the student aid cuts enacted by the
Consolidated Appropriations Act of 2012. For example, this legislation
reduced the income threshold at which a low-income student receives a
full Pell Grant from $32,000 to $23,000. This cuts the Pell Grant for
13.5% of Pell Grant recipients by $1,100 to $1,600. Such a big cut in
federal grants makes it much more difficult for more than a million
low-income students to pay for college, hurting college enrollment and
completion rates. The savings from this cut in Pell Grant
funding is less than a quarter of the cost of extending the 3.4%
interest rate on subsidized Stafford loans. If Congress has $10
billion a year available to spend on student financial aid, some of
that money should be used to reverse the cut to the auto-zero EFC
income threshold.

Editor's Note: A follow-up article,
Summary of President Obama's Budget Blueprint for Federal Student Aid,
provides additional details.

In my humble opinion, conventional wisdom is a lot like stereotypes. They can both lead to miscalculation and, ultimately, disappointment, especially in the confusing and seemingly perilous world of college admissions. One example of conventional wisdom might be the “More is better” mindset. If two letters of reference are required, then four could be twice as impressive. If three Subject Tests are needed, then six . . . And so on.

We’ll never fully know why admissions committees make the decisions they make. There are hundreds of books, blogs, discussion forums, and other avenues of “insights” out there, proclaiming to have insider information about what works and doesn’t work in the college admissions process. But, surprisingly, even the true insiders — those who work on the admissions committees themselves — sometimes don’t follow a strict set of guidelines to admit or deny applicants. It can very often be a very subjective selection process that feels a lot like flying by one’s seat of the pants (no offense to clothing manufacturers out there).

So, I started to search the Web for evidence of erroneous conventional wisdom regarding the process of applying to and getting into college. It didn’t take long to discover an excellent article by Jay Matthews, who has a long track record of pithy opinions on higher education that appear in The Washington Post. His “5 wrong ideas about college admission” make classic sense and call in an air strike on stereotypical conventional wisdom. Here are some key points from what Jay said:

January is the beginning of the college admission season for high school juniors and their parents. It’s just a formality, of course. In this region, the most college-focused in the nation, every season is college admission season.

Energetic and well-informed high school counselors are assembling their notes for upcoming parent meetings. These sessions are usually valuable and informative. Yet, despite all the good data and advice, some false assumptions about college admissions stubbornly survive. You encounter them while dining with friends, surfing the Internet or eavesdropping on the sidelines at youth soccer games.

Here are five of the most resilient and harmful of these wrong ideas about finding the best college for you:

1. Colleges are impressed by a lot of extracurricular activities. What a high school student does outside the classroom is important. Extracurriculars can make the difference when seeking admission to colleges that have three times as many straight-A student applicants as they have space. At one Ivy League college, I heard admissions officers describe applicants as, for instance, the violin-playing quarterback or the math-medalist poet. They never mentioned more than two activities. They wanted depth, not breadth …

2. The more Advanced Placement or International Baccalaureate classes and tests, the better. Selective colleges expect applicants to enroll in three to five AP, IB or similar college-level courses and take the final exams. If you like AP, taking 12 of them won’t hurt you but confers no advantage …

3. Every high school grade counts. High grade-point averages are vital, but it is possible to get Bs in three or four courses and still have an average above 4.0. The extra weight given AP or IB courses makes the difference. Admissions officers often discount mediocre grades in freshman year, if the student’s record improves after that …

4. A student has little chance to get into a top school without an SAT prep course. I spent a lot of money on the course my daughter took her junior year. These courses teach important things and give students confidence walking into the exam. But we have data showing such courses did little good for students who listened in their high school classes, did their homework and took a few practice SAT exams from the book in their counselor’s office …

5. The harder a college is to get into, the more it will ensure a bright future. It is difficult to persuade tribal primates like us that this isn’t true. We are genetically wired to respect pecking orders. If we see a college listed No. 1, we want to go there. When its admissions rate falls below 10 percent, we are even more excited. Research indicates that the most selective schools look good because they attract so many of the students with character traits, such as persistence and humor, that ensure success …

***

Of course, you may say, “Hey, I already knew all of this.” If so, well good for you! However, there are many among the masses out there who insist on operating by way of the path of least resistance, or, as I call it, mob mentality. Don’t just follow the crowd, or you may discover that the beautiful view up ahead is preceded by a steep cliff. Keep your eyes on the Road of Reality!

**********

Be sure to check out all my admissions-related articles and book reviews at College Confidential.

Everyone has an idea of what their EFC (Expected Family Contribution) should be, but it typically never matches with what the FAFSA declares, leaving a lot of students and families clambering for more options to pay for school.

Understanding how the EFC is determined and what happens after might lead to greater transparency into the process, helping you and your family to think more realistically about financial aid and the true cost you and your family will be paying.

How EFC is Calculated
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Your EFC “is a measure of your family’s financial strength and is calculated according to a formula established by law,” according to fafsa.ed.gov. This formula configures the following:

• Taxed and untaxed income

• Assets

• Benefits, like unemployment and Social Security

• Family size

• Number of family members enrolled in college

The only way your family would qualify for full financial aid assistance is with an EFC of 0. While many students may hope that they’ll be expected to pay nothing, the reality is that nearly every student will have to pay somehow.

Even if you did have an EFC of 0, the financial aid package would likely contain loans (unless you enrolled in an institution with no loan policies for low-income students like UNC Chapel Hill), which would require you to eventually pay for some of your education anyway.

How Your EFC is Used

Once your EFC has been determined, the schools you have applied to take that number and create a tailored financial aid package for you. They do this by subtracting your EFC from the school’s cost of attendance at your school, which includes tuition and fees, room and board, books and supplies and personal expenses and transportation. This figure is thus named your “need.”

Get more expert advice on the FAFSA.

The components of a financial aid package attempt to meet this need and are separated into grants, work study and loans. But not every student will qualify for each of these components. Some may receive grants and work study, while others will only receive loans.

If your EFC is greater than the cost of attendance, there's a very slim chance you will receive any financial aid. The only option for you, then, would be to take out a unsubsidized Stafford loan or PLUS loan in the event that you needed assistance in paying for school.

Discrepancies in Your EFC

If you believe that your EFC isn’t a realistic picture of what you can pay for school, you have the opportunity to combat that number with your school’s financial aid office through a professional judgment.

A financial aid officer will likely make a professional judgment in your favor if it’s an unusual circumstance like job loss, disability or a parent in school at the same time. You’ll find little help, though, in calling your financial aid office to declare that your EFC is “unfair” if you don’t have a circumstance to prove it.

Essentially, many families will find that their EFC is unfair and not an accurate representation of what they think they can really pay. The point is that you will have to think out of your comfort zone when it comes to financing your education. Maybe that means taking out federal loans or choosing another school entirely that fits within your budget.

Unfortunately, the EFC is the reality check of the college search. Up to this point, it’s been nice to focus on getting into the “the dream school,” but this is the time to start asking those tough questions about paying for said dream school.

What can you do to help your situation and make college more affordable? Is that college worth all of the debt that you would rack up or is there a less costly option? Can you be applying for more scholarships? Should you start at a community college and then transfer? Is your dream school worth it no matter what?

I am a disabled parent who hasn't worked since 2007. I am
currently on long term disability and have been ruled disabled by the
Social Security Administration. My child is heading off to college in
the fall and we are working on his FAFSA. My Social Security came
through in late November in a large lump sum due to back dating.
However, my long term disability has a clause that says I must give
this SSDI sum to them as an offset and therefore it isn't really an
asset of mine. I am just waiting for them to send me my determination
letter so I can transfer the funds, which are currently in my savings
account. How do I account for this on the FAFSA? I don't want them to
think that the sum is extra money cause it isn't.
— H.R.

In most cases where a family argues that income or an asset isn't
really their money, they actually do hold legal title to the money. For
example, when a grandparent transfers ownership of their home and
other assets to the parent in order to qualify for Medicaid, the
parent often argues that the money isn't really theirs. But the parent
owns the assets and can use them for any purpose, even if the parent
feels a moral obligation to use the money for the benefit of the
grandparent. The grandparent wouldn't be able to qualify for Medicaid
if the money was being held in trust for them. The family can't claim
that the money isn't the grandparent's for Medicaid purposes and then
also claim that the money is really the grandparent's for federal
student aid purposes.

Most college financial aid administrators will insist that the assets
be reported on the FAFSA because the parents hold legal title to the
money. They often look to see who is responsible for paying taxes
associated with the asset, such as property taxes on a home or income
taxes on the interest and dividends. Financial aid administrators
might allow a professional judgment adjustment for eldercare expenses
paid by the parents, but the asset must still be reported.

But when there is a legal or contractual obligation against the money,
it really isn't the family's money. For example, most long-term
disability insurance policies include clauses that treat SSDI payments
as an offset to the disability payments and require repayment if the
insured receives a retroactive lump sum payment of SSDI benefits.

Section 480(g) of the Higher Education Act of 1965 (20 USC 1087vv(g))
acknowledges this in its definition of net assets (emphasis added):
"The term 'net assets’ means the current market value at the time of
application of the assets (as defined in subsection (f)), minus
the outstanding liabilities or indebtedness against the assets."
So not only is the value of an asset reduced by the amount of any debt
secured by the asset, but also by any liabilities against the
asset. If an insurance company has a legal claim on the money, the
amount of that claim will offset the value of the asset.

There are two approaches one can take to address such a situation,
since the FAFSA doesn't provide the applicant with an opportunity to
explain any liabilities against an asset. One is to report the net
asset value on the FAFSA (i.e., after subtracting the liability to the
disability insurance company). The other is to report the savings
account balance on the FAFSA and ask the college financial aid
administrator for a professional judgment adjustment to compensate for
the liability to the disability insurance company.

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Either approach carries some risk.

If the applicant reports the net asset value on the FAFSA and the
FAFSA is selected for verification, the college will question the
mismatch between the savings account balance and the amount reported
on the FAFSA. The applicant must be able to clearly document that the
money must be repaid to the long-term disability insurance
carrier. Even so, the college might still decide to disallow
it. College financial aid administrators like to see offsetting
transactions occurring in the same year. It is also a bit problematic
if the money was commingled with other funds, as opposed to being
deposited in a dedicated account.

If the applicant reports the savings account balance and asks for a
professional judgment review, it is possible that the college may deny
the request. Professional judgment reviews are subject to the
discretion of the college financial aid administrator, and decisions
to grant or deny an adjustment can sometimes be a bit arbitrary.

Either way it is possible that the college financial aid administrator
will disallow treating the liability to the insurance company as an
offset to the value of the savings account. But asking for a
professional judgment review may put the college's financial aid
administrator in a more positive frame of mind than having the
financial aid administrator note a discrepancy during
verification. When a discrepancy is identified during verification,
colleges tend to be more suspicious and less likely to be
accommodating to the family.

The best approach, however, is to report the net asset value on the
FAFSA, consistent with the statutory requirements and the FAFSA
instructions. When in doubt, follow the rules. The family should also
call the college's financial aid office and/or the Federal Student Aid
Information Center at 1-800-4-FED-AID (1-800-433-3243) before filing
the FAFSA to ask how to report the money. This will help allay
suspicions that the family was trying to hide the money. The family
should write down the response along with the date and time of the
call and the name of the person with whom they spoke. If the FAFSA is
selected for verification, the family should include a copy of these
notes along with an explanation that documents the calculation of the
net asset value and the liability to the insurance company.

Ask Kantro is written by Mark Kantrowitz, an expert on paying for
college and publisher of Fastweb.com and FinAid.org, the leading free
web sites for information about student financial aid, student loans
and scholarships. Write to Ask Kantro at AskKantro@Fastweb.com.
Follow him on Twitter at @mkant.

An eTextbook isn't just an eBook version of a textbook; it's an interactive educational tool. That’s what Apple is trying to achieve in their push for iPad textbooks, something they hope will disrupt the $8 billion textbook market.

Built-in video, interactive 3D objects, and the ability to highlight content (that can be automatically turned into flash cards when preparing for exams) are just a few of the features of textbooks on the iPad.

Using iPads in the classroom has brought new excitement to course material. An instructor from Notre Dame, who had his business class take part in a pilot program, noted how the ability to easily share and collaborate with the device made the class “more interesting and dynamic”.

IPads have become so useful in certain academic settings that some colleges are making them a required item. This is the case at Brown University's medical school, where incoming students were required to purchase iPads last fall.

Students as part of a eTextbook pilot program at Cal State enjoyed the cost savings, the ability to search by keyword, and the lightweight option that digital textbooks provided, however, eTextbooks did not provide the greatest user experience for many of the students. Their biggest complaint: they felt as if they were reading a textbook on the Internet.

It is apparent iPad textbooks aren’t for everyone. Three out of 4 students still prefer a print textbook over the digital version, according to a March 2011 survey of 655 college students. Current sales of eTextbooks only account for a small percentage of the $8 billion textbook industry.

Is it worth buying an iPad just for textbooks?
Based on current “savings” eTextbooks give over print textbooks, it would take about two semesters worth of textbooks to break even, after spending $500 for the iPad. Of course, buying the eTextbook version means the book can’t be resold and certain publishers even limit the time you have access to the book.

With Apple’s recent announcement of iPad textbooks available in the latest update of the iBooks app, they are taking steps toward building a catalog of textbooks available for purchase within the app. The current selection of textbooks is limited, with most of the titles being high school textbooks.

Where to get iPad Textbooks

The nice thing about textbooks on the iPad is they can be accessed immediately after purchase (no standing in lines at the bookstore or waiting for your books to ship). Here’s where you can get college textbooks for your iPad.

Kno

Kno has a huge selection of textbooks for the iPad. The Kno Course Manager application lets students organize their textbooks and other course material in a central location. With Kno textbooks you can search, zoom in on pictures, add sticky notes, highlight text, and easily share course material with fellow students via social networks. A recent edition of their app added video integration and support for interactive 3D objects to further enhance learning on the iPad.

Kno, a startup created by the founders of Chegg.com, originally developed their own oversized tablet specifically designed for digital textbooks. As soon as the iPad started taking off, the company realized the device was the backbone for the future of the industry and bailed on its own hardware efforts last April.

About eTextbooks from Kno

• Available on: Ipad, Web
• Purchase options: Buy or Rent (6 months).
• Length of access: Lifetime access as long as you have a Kno account.
• Printing limitations: No printing allowed.
• Available offline: Yes, the textbook is permanently stored on your iPad.
• Deals: They offer a 15-day free trial (no credit card required).

Inkling

Inkling was started in 2009 when Matt MacInnis, a former Apple employee (who worked in Apple's education division for eight years), noticed that technology and textbooks weren’t reaching their full potential.

Their goal is to make learning interactive and engaging by taking advantage of new media devices, like the iPad. They want to reinvent the textbook by looking at a digital textbook not as a book, but as software. This new technology enables learning assessment tools to be built into the textbook, like having interactive quizzes at the end of every chapter. Inkling also brings a social aspect to learning by enabling students to follow each other’s note streams, all within the application.

Inkling textbooks are generally 30%-40% cheaper than the list price of print books. Students also have the option of purchasing individual chapters for a few dollars each (which comes in handy for those classes that only cover a few chapters of the book). Their catalog has over 100 fully-enhanced, interactive titles available, including some of the most popular titles for undergrad, MBA and medical students. They have a limited number of books available because they customize every textbook specifically for the iPad to make it interactive and engaging.

About eTextbooks from Inkling

• Available on: iPad only
• Purchase options: Buy the full textbook or by the chapter.
• Length of Access: Lifetime use.
• Printing limitations: No printing allowed.
• Available offline: Yes, although some multimedia content (streaming video and music) in the textbook does require an Internet connection.
• Deals: Free chapter by downloading their iPad app.

CourseSmart

CourseSmart is currently the largest seller of eTextbooks. They claim to save students 60% when purchasing over printed textbooks. The textbooks at CourseSmart are sold as digital rentals that give users digital access rights to the textbook for 360 days. CourseSmart textbooks can be used on the iPad by downloading their free app.

About eTextbooks at CourseSmart

• Available on: Most digital devices: iPad, iPhone, Kindle, Laptop computers and Android devices both online and off.
• Purchase options: Free trial before buying. After purchase, access to the eTextbook is given for the “digital rental” period, which is 360 days.
• Length of access: 360 days
• Printing limitations: Up to 10 pages at a time. Total limit is 1.5 times the number of pages in the book.
• Available offline: Yes, but content must be checked out via their online app.
• Deals: Free eTextbook Trial (for 14 days or 50 page views, whichever comes first).

Amazon

For eTextbooks at Amazon, students can either buy the digital textbook outright (lifetime access) or rent it (cheaper option), better known as Kindle Textbook Rentals. Renters can choose their rental period (any length between 30 and 360 days), so you only need to pay for the time you actually need access to the book. After the rental period ends, students still get access to all of their notes and highlighted content in the Amazon Cloud.

Even though Amazon has eTextbooks labeled as Kindle edition books, they can still be used on the iPad. To access Kindle Textbook Rentals on your iPad you will need to download the Kindle app from the App Store (therefore, no Kindle device is required). Additionally, you always have the option of accessing the textbook from other devices (PC, Mac, Android, Blackberry, and iPhone) at any time with Amazon’s Whispersync technology.

About eTextbooks at Amazon

• Available on: Even though Kindle textbooks were designed with the Kindle in mind, they are accessible on iPad, PC, Mac, Android, Blackberry, and iPhone.
• Purchase options: At Amazon you can buy or rent in both print and digital form. As far as eTextbook rentals: choose any rental length between 30 and 360 days. You can extend the rental period for as little as one day or convert the order to a full purchase and keep the book permanently.
• Length of access: Depends on the purchase. The textbook can be rented from 30 to 360 days.
• Deals: Click here and enter the code ETXTBOOK to get a $10 credit applied to your Amazon account to use on your next eTextbook purchase. Offer expires at 11:59 p.m PST on January 23, 2012.

Chegg

Textbook renter Chegg.com just recently started offering eTextbooks that are available on the iPad. The eTextbook is web-based, therefore viewable on any device connected to the Internet. Not having the textbook available offline is a downfall, but being online lets you connect to Chegg’s 24/7 Homework Q&A service through the eReader. Ordering a print textbook from Chegg? Customers can get a 7-day access pass to the eTextbook version while they wait for their physical textbook to ship.

About eTextbooks at Chegg

• Available on: Any device with an Internet connection.
• Purchase options: At Chegg you can rent textbooks, buy new and used, or get eTextbooks.
• Length of access: The eTextbooks have a digital rental period of 180 days.
• Printing limitations: According to Chegg, copy and print limits will vary per eTextbook. Clicking on the ‘View Details’ next to the eTextbook will show the limitations of the book you are ordering. Most of the eTextbooks seem to allow up to 50% of the book to be printed. Printing over 10% of the book will void any returns of the book for a full refund.
• Available offline: No
• Deals: Check current textbook coupon codes.

CengageBrain

Cengage offers textbooks in multiple formats: print, rentals, eTextbooks, and by the chapter (eChapters). The eTextbooks and eChapters are available on the iPad for both online and offline use. Being able to buy textbooks down to the individual chapter and getting free access to the eTextbook version while your print textbook ships are two big advantages of getting textbooks at CengageBrain.

About eTextbooks from CengageBrain

• Available on: You can view eTextbooks and eChapters on a desktop, laptop, iPad, iPhone or Android device.
• Purchase options: Buy eTextbooks by the book or by the chapter (eChapters). Also offer print textbooks for sale or rent.
• Length of access: Standard length of access to digital content is one semester. Some titles that are published for courses that last multiple semesters have a longer access period. Individual chapters are only available for an access period of 6 months.
• Printing limitations: Up to 10 pages at a time. Total limit is 1.5 times the number of pages in the book.
• Available offline: Available both online and offline with the free eReader app for your iPad. Currently, offline access is only supported when using a desktop, laptop or iPad.
• Deals: See CengageBrain Coupon Codes

Open Textbooks

There are many freely available open textbooks that can be used on the iPad. While you likely won’t find the textbook your professor assigns here, convince your instructors to start using open textbooks and the $8 billion textbook market can really be disrupted.

I recall with great fondness sitting in my college classes and wondering what my professors’ true motives were. Some seemed apathetic. Some were extremely passionate. Others were rather matter of fact. A few acted like they were doing us a favor by showing up to disperse their elegant pearls of wisdom before us mere swine students. Usually, that latter group had Teaching Assistants (TAs) at the ready to take over the instant the lecture was finished, similar to a press secretary taking questions after the president hurriedly departs the rostrum.

Those of you seniors who are anticipating your first-year experiences in the halls of ivy may be wondering about what you will encounter in the way of professorial behavior, motives, and demeanor. Along those lines, have you ever perused the opinions on RateMyProfessors.com?  Of course, there are myriad motivations for posting the likes of some of those opinions, but many are quite entertaining. For example:

STAY AWAY! Does not want you to succeed. Is condescending and does not like opinions that differ from her own. Also doesn’t do well teaching online due to she cannot comprehend what you mean. Will give zero for paper if she feels you didn’t address her question fully. Also gives zeros for work turned in even 20 minutes late. BEWARE!!!!

But I digress. The real purpose of my post here today is to give you a peek inside the head of one professor whose behavior, motives, and demeanor aren’t in the “BEWARE!!!!” category. Far from it. I think it’s good that professors speak out in a candid sense about what they’re trying to accomplish in the classroom. If you’re wondering what you might encounter this fall, then hope that you can get a majority of faculty members like this one. Here are a few excerpts from inside this professorial head:

I Don’t Lie Awake At Night Thinking of Ways to Ruin Your Life

by Art Carden, Assistant Professor of Economics at Rhodes College in Memphis, Tennessee

… One of the popular myths of higher education is that professors are sadists who live to inflict psychological trauma on undergraduates. Perhaps you believe that we pick students at random and then schedule all our assignments in such a way as to make those students’ lives as difficult as possible. The older I get and the longer I do this, the more I recognize that we (the professors) need to be more transparent about our philosophies of evaluation. How does this work? Let’s clarify a few things.

First, I do not “take off” points. You earn them. The difference is not merely rhetorical, nor is it trivial. In other words, you start with zero points and earn your way to a grade. You earn a grade in (say) Econ 100 for demonstrating that you have gained a degree of competence in economics ranging from being able to articulate the basic principles (enough to earn a C) to mastery and the ability to apply these principles to day-to-day affairs (which will earn an A). …

Second, this means that the burden of proof is on you to demonstrate that you have mastered the material. It is not on me to demonstrate that you have not. My assumption at the beginning of each class is that you know somewhere between nothing and very little about basic economics unless you were lucky enough to have an exceptional high school economics course. Otherwise, why are you here? …

…  Finally, I’m here to be a mentor and instructor. This means that our relationship differs from the relationships that you have with your friends and family. Please don’t infer from this that I don’t care about you, because I do. A lot. I want to see you make good choices. I want to see you understand basic economics because I hope it will rock your world as it continues to rock mine and because the human consequences of lousy economic policy are enormous. That said, you should never take grades personally. I don’t think you’re stupid because you tank an exam, an assignment, or even an entire course. …

Dear student, I once thought as you do. I once carried about the same misconceptions, the same litany of cognitive biases, and the same adolescent desire to blame others for my errors. I was (and remain) very poorly served by my immaturity. As shocking as it may seem, I still cling to a lot of it, even after four years of college, five years of graduate school, and now five-and-a-half years as a professor … I’m still learning to put aside childish things. I hope you will do the same. Start now. The effort is daunting, but the rewards are substantial.

***

You should all be so fortunate to end up in classes with teachers like Professor Carden. So, start searching Rate My Professors!

**********

Be sure to check out all my admissions-related articles and book reviews at College Confidential.

Office hours are arguably the most underused resource available to students.

With that said, there is no reason why you shouldn’t be using what is perhaps one of the biggest tools at your disposal to understanding the material and getting a better grade. Basically, if you’re not using it, you better be getting an A on the next exam.

Office hours are your opportunity to get one-on-one instruction on course material. These are specific times that instructors (professors, TAs, etc.) set aside to make themselves available to students.

A professor will typically announce his/her office hours and location on the first day of class and in the syllabus. This information should also be available on the professor’s website.

A Valuable, Yet Often Underused Resource
Throughout the term you may find your professor complaining to the class about being lonely during their office hours. This is your sign that they want visitors. Here they are reaching out to offer a valuable service (that you are technically paying for) only to have it be neglected by the class.

Your Professor During Office Hours.

Simply put, not enough students take advantage of office hours. Either students are too busy, too lazy, or too embarrassed and afraid they will ask a stupid question or be called out about missing the class when the information was covered.

Utilizing Office Hours

With set office hours, it’s comforting to know there is a time and place you will always have access to your professor.

To make the most of an office hours visit, you’ll need to do a little preparing beforehand. This includes coming in with specific questions and other items you would like to go over with the instructor. Keep a list of questions and concerns to discuss during your visit. This ensures your meeting will run as smoothly and quickly as possible.

The best way to prepare for this meeting is to review your class notes and attempt to do some of the homework before your visit, so you can identify exactly what it is you are having trouble with. Sometimes students are so lost they don’t know where to start. This is fine and something where a few visits to office hours can get the student back on track.

Even if you don't have any questions about course material, stop by your professor’s office to say hi and introduce yourself. This way you’ll know where the office is located should you ever need to visit throughout the term and the introduction will help your professor get to know you by name. This is especially important in larger classes (but equally as important in smaller classroom settings as well). This initial introduction helps establish a connection, which could be beneficial later on. Professors are generally pretty welcoming and accommodating to students who come in for office hours.

While attending office hours is not required, if the effort isn’t made to show up, you leave yourself no excuse at the end of the term when grades are dispersed and you are left with a grade you are not satisfied with.

Benefits of Using Office Hours Straight Up: Attending office hours puts you at an advantage over other students.

Students who utilize office hours often do better on exams and papers, are more satisfied with their classes, and feel more connected to their college, classroom and professor. It is an opportunity to show instructors your enthusiasm for the material. A place you can follow up on aspects of the class you find compelling by asking questions that go beyond what the lecture and textbook cover.

Help Preparing for Exams

Take advantage of office hours and discussion sections, especially before big tests. The week before exams and finals are times in which your professor will be in high demand. This is why sometimes a professor will schedule additional office hours the week before a test.

It is essential to visit during these times because professors are typically in the process of determining what will be on the exam and can give away clues about what it will cover. If you can cut out material you don't need to focus on for the upcoming exam, you'll save yourself hours of study time in exchange for the short 30min investment of time for an office hours visit. Knowing what to study (and what not to) before a test can be very beneficial when it comes time to cram for the exam.

Build a Connection

In the digital world, people are losing touch with interpersonal communication. By taking the time to go into office hours you get a face-to-face connection with your professor. Going in and personally introducing yourself helps your instructor put a name to a face, which can only be beneficial unless you plan on pulling the "Do you even know my name?" at the end of the term.

One-on-one instruction creates the prime environment to build on the student-teacher relationship. If a positive connection is established in your meetings, the professor can help with letters of recommendation, job offers/leads, and having them as an advisor for independent study.

Common Questions about Office Hours

Should I email professors ahead of time to let them know I am stopping by?
While it is a good gesture, office hours are open for you to stop by. You can call/email to make sure they are available and not already with another student, but for the most part they sit there and expect students to show up, therefore no appointment is needed. A heads up email is nice, but not necessary.

How should I approach a professor during office hours?
When dropping in unannounced, your best bet is to show up at the beginning of office hours. If you show up and your professor is already assisting another student, knock or otherwise politely announce your presence upon arrival. Don't feel like you're being a nuisance, these are hours specifically set aside for you and your classmates. If you find the office too busy, politely ask to make an appointment.

Things to Remember

• Be courteous and respectful.
• If you make an appointment, arrive on time.
• Address the professor by his or her last name with the appropriate title unless asked otherwise.
• Value their time by being prepared and staying on task.
• Avoid waiting until the day before the test or the day before an assignment is due to seek assistance.
• Show up early to office hours and bring your work with you. This way you can get the help you need and continue working right there in the office while the new understanding of the material is fresh on your mind. This also allows you to ask and get immediate help with any other questions that come about while advancing through your studies.
• Thank them for their time.

What Professors are Saying

Here's what some top professors at University of Michigan are saying about office hours:

Students should go to office hours because…
…we're a friendly bunch; but really, some people learn best by discussing the topic and getting one-on-one attention, and with large courses, office hours are really the only way to do this. …your professor will get to know who you are and you might be more comfortable asking them to write you a letter of recommendation later. - Brenda Gunderson, Statistics Department at University of Michigan
The most productive office hour interactions seem to begin with a student pulling out a short, focused list of specific questions. It is helpful if they are able to reference a particular lecture or reading. This makes it possible to put the answer into a relevant context. Written questions are great strategy for focusing the meeting and it gives shy students a sort of script. Often the initial discussion will generate other questions and, ideally, the student walks away with a broader understanding of the topic. - Denise Guillot, Anthropology Department at University of Michigan
As an instructor of a large lecture course, I value office hours because it gives me an opportunity to speak directly with students from the class. In particular, it gives me the opportunity to better gauge how well students are understanding the material from lectures. If I find that students are not understanding the material, then I can respond to that in subsequent lectures. - David Smith, History Department at University of Michigan
Why should students go to office hours? I wouldn't just say "go", I'd say "go early". I get popular just before exams, but at other times am sometimes sitting in my office waiting for students to stop by. It's an opportunity to be engaged --- to review class material, expand on what you learned in class, or just talk about the discipline more generally. - Jan Gerson, Economics Department at University of Michigan

Just as in professional sports, there are two levels of participants: rookies and veterans. When it comes to college admissions and all that’s related to that complex field, the vets have a decided edge over the rookies, especially in the crucial area of financial aid. The vets have been through the mill at least once, maybe more than once, discovering what sources are available to help pay for the exorbitant costs of higher education.

Pity the poor rookies, though. They have to wade into the quagmire of FAFSAs, CSS Profiles, and possibly private colleges’ own detailed applications for financial aid, all without the benefit of having done these before. Of course, there are a number of resources that can help buffer the impact of ignorance. Perhaps one of the best ever is the College Confidential discussion forum’s financial aid section. The reason this treasure trove of knowledge is so effective is because of the friendly interface between veterans and rookies.  If you know little to nothing about financial aid, you won’t be embarrassed asking your questions here. So, I encourage you to spend as much time as you need reading the highly informative and easy to understand answers and comments.

Trying to explain the intricacies of financial aid to a rookie can be frustrating, both for the veteran and the rookie. I’m always on the lookout for efficient ways to do this. That’s why I was intrigued by the article I found on the 20sfinances.com site by (simply) “Corey” entitled Different Types of Financial Aid. At least to me, this is the kind of information that I wish I had had access to when I was a financial aid rookie. So, for all of you other rookies out there, let’s take a look at what you can expect when you go looking for help paying for college, courtesy of some excerpts from 20finances.com.

Different Types of Financial Aid by Corey

Paying for college can be a challenging task. I am convinced that almost every college students asks him/herself if there is another way they can get money for school. While I think it is important to reduce your spending in college, it is also important to understand the different forms of financial aid that is available. It’s essential to understand the differences between them because if you misunderstand a loan for a grant, you could be stuck later paying back that money (and some).

Scholarships and Grants

Scholarships and grants are basically free money. There are many different forms of scholarships or grants. Some are awarded based on financial need, while others are based on merit (academic achievements). While I won’t take the time to explain the best approach to obtain scholarships and grants, it is important to understand that this form of financial aid does not need to be paid back. For whatever reason, consider it a gift. While there are certain scholarships that require you to work X amount of hours per week, these are often a great deal …

Loans

Loans also come in various shapes and sizes. If not already understood, loans require that you pay money back to them with interest. As with any form of a loan, you are given a certain amount of money now with the agreement that you will pay all of the money back with interest in the future. Many people take this route to pay for school because it means that they are able to focus on school and not worry about the stress that may come with figuring out how to pay for school. If you fill out a FAFSA, you will automatically qualify for some form of loan. Some loans do not start compounding interest while others do. It is important to understand the fine print on any loan before you use this method …

Work Study

Work study is a federal funded job. It is usually an on campus job. While these sorts of positions do not offer the highest salary, it does provide you with extra income that does not take away from qualifying for financial aid in the future. On campus work study positions often provide flexible hours so that you can focus on your studies. If you don’t qualify for work study, you may find that it is hard to find employment on campus. Often because of budgetary issues, certain departments can only afford to hire work study students because the wage is funded by the government. If your parents make too much money, you may find it difficult to find a job …

Payment Plan

While this isn’t money in any form, universities often offer payment plans. If you are working while in school and can’t afford to pay your school bill all at once, the university’s payment plan may be the right option. Often there will be a small fee to buy into this plan, but it is a great service for working students. This allows you to pay your bill over the course of the semester or year. If you know you don’t make enough money to keep up the with the payments, make sure to take this into consideration …

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As a teaser to whet your appetite for the College Confidential discussion forum, here’s a good place to start: Does Existing Student Loan Affect EFC? Or how about: 10 Things Financial Aid Offices Won’t Say.

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Be sure to check out all my admissions-related articles and book reviews at College Confidential.

In our base year, my spouse will have a one-time job that will
significantly raise our income for one year only. We have significant
credit card debt and no savings for our child's college education. We
plan to use the extra income to pay down our debt and to have
money available to help with college costs. But will this one time boost in
our income, which will happen to fall during our base year, limit our
access to financial aid? Also, unfortunately, I will be getting income from
the sale of my parents' home, which would also have gone directly to
debt reduction/college expenses. The timing of this is unusually bad
for us.
— B.J.

Having extra money to pay bills and reduce debt is never
unfortunate. Even if the money reduces eligibility for need-based
financial aid, the family will still come out ahead financially.

The Free Application for Federal Student Aid (FAFSA) considers both
income and assets when calculating ability to pay. Extra income during
the base year can show up on the FAFSA as both income and an
asset. However, if the family uses the money to pay down credit card
debt or other forms of consumer debt (e.g., auto loans or mortgages),
it can reduce or eliminate the treatment of the money as an asset on
the FAFSA. Still, the money will be counted as income on the FAFSA,
which can have a significant impact on eligibility for need-based
financial aid.

The best solution is to ask the college for a professional judgment
review, sometimes called a special circumstances review or financial
aid appeal. The goal of need analysis is to use the prior tax year
income as a proxy for income during the academic year. So college
financial aid administrators are often persuaded by arguments that
claim that the extra income was due to a one-time event that is not
reflective of the ability to pay during the award year. College
financial aid administrators also dislike the double-counting of a
windfall as both income and an asset.

The family will need to present documentation demonstrating that the
extra income was due to a one-time event that is unlikely to be
repeated. The college financial aid administrator may want to see
copies of the past 3-5 years worth of federal income tax returns to
verify that the extra income was an unusual event.

It also helps to demonstrate that the money was used to pay down debt
and is no longer available to pay for college costs (except for any
money contributed to a 529 college savings plan).

Is there any way around the fact that we withdrew money from
retirement accounts to purchase a house. We are a low-income family
but wanted to take advantage of the housing market and reduce our monthly
housing costs. Our FAFSA/EFC will be very skewed because of this "taxed
income". We have two children in college and I (mom) will be
returning to school on a full-time basis. Any advice?
— Jackie A.

Distributions from retirement plans count as taxable income even if
the money is used to buy a home, pay for tuition or other
hardship expenses.
This can artificially increase the family's income, affecting
eligbility for need-based financial aid.

Since this is a one-time event that is not reflective of ability to
pay during the award year, the family should ask the college financial
aid administrator for a professional judgment review. The family
should provide the financial aid administrator with documentation
concerning the hardship withdrawal from the retirement plan accounts,
such as the amount withdrawn and the purpose for which it was used. It
helps to refer to it as a hardship distribution. Note that this
situation is similar to the rollover from a traditional IRA to a Roth
IRA, where Dear Colleague Letter GEN-99-10 gave guidance to encourage
financial aid administrators to eliminate from income the amount
attributable to the Roth IRA conversion. As with the Roth IRA
conversion, neither the retirement plan nor the family home is a
reportable asset on the FAFSA and the family does not have additional
available income or assets to spend as a result of the hardship
distribution.

Ask Kantro is written by Mark Kantrowitz, an expert on paying for
college and publisher of Fastweb.com and FinAid.org, the leading free
web sites for information about student financial aid, student loans
and scholarships. Write to Ask Kantro at AskKantro@Fastweb.com.
Follow him on Twitter at @mkant.

Things can get pretty boring during the winter months. The restlessness, boredom, and additional time spent indoors create a prime environment for mischievous acts. Students in the dorms with too much free time on their hands can only lead to one thing: Dorm Room Pranks.

Here's a look at some of the most popular dorm room pranks pulled on fellow dorm mates.

10 Classic Dorm Room Pranks

1. The Upside Down Dorm Room Prank

2. The Foiled Dorm Room Prank

3. The Post-it Note Prank

4. Water Cups Prank

5. Multiple Alarm Clocks Prank

6. Tug of War Dorm Room Door Prank

7. Bowl of Water to the Ceiling Prank
A classic dorm prank that involves getting students to hold a bowl of water against the ceiling with a stick.

8. The Empty Dorm Room Prank
This is why you don't leave your dorm room unlocked.

9. Dorm Room Foam Prank

10. Dorm filled with Newspaper Prank

Been wondering about the next new thing in higher education? Well, it may already be here: Badges. “Say what?” you say? Yep, just like the Boy Scouts.

There’s a highly interesting article in The Chronicle of Higher Education that shines a spotlight on the badges initiative, which has been underway for some time now, apparently right under many of our noses. In my humble and sometimes not fully informed opinion, the badges concept likely falls into the “Do what you want and the money will follow” camp. Essentially, what badges entails is hooking up with a legitimate (hopefully certified or accredited) sources of learning (can you say, “MIT”?) and meeting the requirements for a very specific kind of discipline (think along the lines of mentorship or digital video editing). Once you have met the standards of the online course material, you receive your badge in that skill, which then becomes a resume line item.

This laser-focused cafeteriaization (whoa, a new tech term!) of educational credentials tends to fly in the face of the liberal-arts ideals of colleges and universities. Conceivably, one could go through life learning only about what one likes and has passion for. I guess the analogy might be a diet comprising only desserts.

Thinking back to my own college experiences, I know that my life is richer because of being exposed to information and areas that I may have happily ignored, if given the chance. However, our brave new world is hurting (economically) and the requirements for employment are becoming more and more specific. Thus, the badges concept appears to be an offspring of the mother of invention: necessity.

Let’s take a lok at some key points from this highly interesting article.

‘Badges’ Earned Online Pose Challenge to Traditional College Diplomas by Jeffrey R. Young

The spread of a seemingly playful alternative to traditional diplomas, inspired by Boy Scout achievement patches and video-game power-ups, suggests that the standard certification system no longer works in today’s fast-changing job market.

Educational upstarts across the Web are adopting systems of “badges” to certify skills and abilities. If scouting focuses on outdoorsy skills like tying knots, these badges denote areas employers might look for, like mentorship or digital video editing. Many of the new digital badges are easy to attain—intentionally so—to keep students motivated, while others signal mastery of fine-grained skills that are not formally recognized in a traditional classroom.

At the free online-education provider Khan Academy, for instance, students get a “Great Listener” badge for watching 30 minutes of videos from its collection of thousands of short educational clips. With enough of those badges, paired with badges earned for passing standardized tests administered on the site, users can earn the distinction of “Master of Algebra” or other “Challenge Patches.”

Traditional colleges and universities are considering badges and other alternative credentials as well. In December the Massachusetts Institute of Technology announced that it will create MITx, a self-service learning system in which students can take online tests and earn certificates after watching free course materials posted by the university.

MIT also has an arrangement with a company called OpenStudy, which runs online study groups, to give online badges to students who give consistently useful answers in discussion forums set up around the free lecture materials the university has long posted as part of its OpenCourseWare project …

… “We have to question the tyranny of the degree,” says David Wiley, an associate professor of instructional psychology and technology at Brigham Young University. Mr. Wiley is an outspoken advocate of so-called open education, and he imagines a future where screenfuls of badges from free or low-cost institutions, perhaps mixed with a course or two from a traditional college, replace the need for setting foot on a campus. “As soon as big employers everywhere start accepting these new credentials, either singly or in bundles, the gig is up completely.” …

… Some observers see a darker side, though, charging that badges turn all learning into a commodity, and thus cheapen the difficult challenge of mastering something new. Rather than dive into an assignment out of curiosity, many students might focus on an endless pursuit of badges, argues Alex Reid, an associate professor of English at the University at Buffalo. “The presence of a badge could actually be a detriment to an otherwise genuine learning experience,” he wrote on his blog earlier this year …

… “The biggest hurdle is the one I had, which is prejudice,” says Cathy Davidson, a professor of interdisciplinary studies at Duke University and author of Now You See It: How the Brain Science of Attention Will Transform the Way We Live, Work, and Learn. She says she initially viewed educational badges as frivolous, but is now a leading proponent as a co-founder of Hastac.

“People seem to think they know what school is and they know what work is,” she says. “We live in a world where anyone can learn anything, anytime, anywhere, but we haven’t remotely reorganized our workplace or school for this age.”

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Intriguing, no? I say, “Yes!” The really intriguing part is to ponder the possible long-range effect of the badge initiative if it really takes off. Can you envision a Badge of Science in computer engineering?  Or maybe a Badge of Arts in European Literature? If college marketing departments start to view all this as a theat to their hallowed halls, I can even foresee a bumper sticker some day that shouts, “Ban the Badge!” That might be a problem for the University of Wisconsin, though.  Think about it. (Hint: They’re the Badgers.)

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Be sure to check out all my admissions-related articles and book reviews at College Confidential.

You know the feeling. It’s the second week of January and all your college applications are in! Oh, happy day! Well, as the famous phrase goes, “Not so fast there, Kemosabe!”

You may be thinking back to all those wee-hours nights/days when your eyes were crossed as you tried to come up with the perfect essay topics. You squeezed every drop of creativity from your brain trying to think of memorable ways to tell your dream school of what you would bring to campus to enhance diversity. You followed up on your recommendation letters and made sure that your parents are aware of all the financial aid process details. You dotted all your applications’ “i”s and crossed at the “t”s. Now you can relax, right? Wrong.

As the poet said, “Miles to go …” It ain’t over yet.

The finish line is not yet in sight, my friend. Another folkish phrase goes, “The devil is in the details.” So, what kind of devilish details should you be tending? Well, I found a cool article that spells it out in easy to understand language. On College: College application is finally in; now what? by Purvi S. Mody. So, let’s see what is “now what?” 

Mody notes: It is hard for many high school seniors and their parents to believe that the season of applying to college will ever come to an end. But January is upon us, and while there are some looming application deadlines, many students submitted their last applications just before the new year began. After such a stressful and trying process, most students are ready to relax and hopefully enjoy the remainder of senior year before decisions start to roll out. But before you completely zone out of the admissions process, there are several things you need to get in order first.

Here are some excerpts from those “several things” (five, to be exact):

1. The financial-aid process is just beginning. If your family is planning to apply for aid, this is the time to start planning. Families are now eligible to fill out FAFSA forms, the starting point in this process. This is the federal financial aid form. To complete it, your parents first should try to get their taxes done as quickly as possible. So make sure they don’t wait until the April 17 deadline. Waiting means you likely will not get your aid packages from different colleges before you have to make a final decision on where to go next year …

2. Many colleges also require students to submit mid-year reports, which will list your first semester grades from this year. Some students do not take their finals until late January; just make sure your school sends off these reports as soon as grades become available. If you do not ensure that your mid-year grades are sent, your admissions decisions are in jeopardy.

3. Occasionally, colleges will send questionnaires to specific students. If you get one of these, please do not take it lightly. This is a college’s way of saying it needs more information from you to make an appropriate decision. Failing to submit the form indicates a lack of interest in that school, and that can in no way be interpreted positively …

4. Now is also the time that colleges that conduct interviews will start to make those requests. Check your email and phone messages in a timely manner. You don’t want to ignore an interviewer. While the college interview and its impact have been hotly debated, please don’t take these lightly …

5. While it is common for “senioritis” to settle in easily, do not let your grades slide. I cannot stress enough how important this is. Colleges reserve the right to rescind an offer of admissions whenever they so choose. If a college receives your final semester grades in July and they are not up to par, you may lose your acceptance late in the summer and not have many options …

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This article is an excellent read and could give you a few crucial insights to help you make it all the way to that elusive finish line. When it comes to college admissions, keep in mind the immortal words of New York Yankee great, Yogi Berra: “It ain’t over ’til it’s over.” Be sure to go the full nine innings and don’t strike out!

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Be sure to check out all my admissions-related articles and book reviews at College Confidential.