With the College Financial Consultants Blog, we're focused on bringing you current, relevant and timely information and data related to the college funding and admission process.

CSU Cutting Enrollment

By Mitch Gross | November 23, 2009

Last week, it's bad news from the UC system. From the CSU camp, there's equally unwelcomed news. As many of you know, CSU system consists of 23 campuses and about 450,000 student and therefore has a large impact on affordable higher education in the state of California. While the announcement did not generate the same amount of news headlines as UC's fee hike, trouble is brewing for thousands of students looking at CSU schools.

As many as 30,000 students or nearly 7% could get cut next year from California State University campuses because of the budget deficit. This is a huge increase from the 4,000 student slots cut this fall. CSU officials did stress the importance of students applying by November 30 at which time about 1/2 of the campuses will stop accepting applications for freshment enrollment.

Many of my clients have CSUs down as safety schools. With dropping admission rates, rising tuition and less classes be prepared for an education that will certainly exceed 4yrs. I've advocated on a number of occasions that families should apply to private schools that can be deemed "safety schools", in addition to CSUs.

CSU Outlines Enrollment Custs - Article Highlights

• CSU estimates that it cut 4,000 students in fall 2009
• CSU needs to reduce its student numbers by more than 40,000 students in order to match student enrollment with funding received from the state
• Campuses are currently in the process of receiving applications for admissions in the fall 2010, and to date, the CSU has received more than 266,000 applications, a 53% increase over last year

For the full article:

CSU Public Affairs

The True Cost of a College Education

By Mitch Gross | November 3, 2009

The College Board recently published a report - Trends in College Pricing 2009. Some terrific analyses and valuable insights within. Among other data points, what drew my attention was that the average net tuition and fees have declined consistently since the late 1990s. However, what's kept the perception alive that costs are outpacing other goods and services, is that the increase in living costs have prevented those decreases in net tuition and fees from being reflected in total net costs of attendance. The report states, "average net tuition and fees at both public and private not-for-profit four-year colleges and universities declined from 2004-05 to 2008-09, but increased by about 2% in constant dollars in 2009-10."

Report highlights:

• Published changes do not reflect the prices most students pay. About one-third of full-time students pay without the assistance of grant aid.
• Avg. estimated 2009-10 net price for full-time students, after considering grant aid and federal tax benefits, is about $1,100 lower (in 2009 dollars) in the private sector and $400 lower in the public sector than it was five years ago.
• Full-time students at public four-year institutions receive an estimated average of about $5,400 in grant aid from all sources and federal tax benefits, reducing their average net price to about $1,600.
• About a quarter of full-time four-year college students are enrolled in institutions with published prices of $21,000 per year or higher.
• The 2009-10 median dollar increase in published tuition and fees for public four-year college students is $406.The median dollar increase for private not-for-profit four-year college students is $1,150.

In the first bullet, the report indicates that two-thirds receive need-based and/or merit grants/scholarships. That number is not entirely surprising. What follows is very surprising. The report goes on to state that 4yr public institutions allocated two-thirds of their grant dollars to merit aid, not need-based. Shouldn't the focus be affordability, helping state residents who are in need of financial assistance?

5 Types of Admisson Processes

By Guest Author - Ellen Fisher | September 24, 2009

Ellen Fisher is an Independent College Advisor working with high school students throughout the San Francisco Bay Area as well as across the Nation. Please visit her web site at www.college4u.info for more information about her services.

Since seniors are submitting their college applications this time of year, here is a brief high-level overview of the 5 types of admissions processes. Some colleges and universities have more then one option and thus it is essential to understand the options and dates for every college on your list. A final decision on the one college the student is going to attend is due by May 1 unless it is an ED (Early Decision) acceptance.

REGULAR DECISION - Students must apply by a certain date, usually January 1 or 15. Notification arrives in March or April.

ROLLING ADMISSIONS - Students may apply as soon as applications are available (sometimes in August). Colleges review the applicant and notify on the decision usually within 6-8 weeks.

EARLY ACTION (EA) - Applications and all support materials must be submitted by the due date (usually 11/1 or 11/15) and decisions are delivered around Christmas.

RESTRICTIVE EARLY ACTION - The same as EA, but a student is only permitted to apply to ONE college using this option.

EARLY DECISION (ED) - Similar to EA in structure and timeframes, but a student is only permitted to apply to ONE ED college. If accepted by that college, the student is committed to attend that one college. If other applications have been submitted, and if they are accepted at the ED college, the student must withdraw the other applications.

University of California May Raise Tuition 30%

By Mitch Gross | September 16, 2009

Troubling news. For starters, The State of California has cut funding for the UC system by $800 million this year. They're now considering raising tuition 30% next year - 15% increase starting in winter and spring terms and then another 15% next fall. This is on top of an increase earlier in the year. Looks very similar to the actions of the CSU system. With increased operating costs, the 10 campus system is laying off thousands, cutting courses and academic programs and is now considering reducing enrollment by 7%.

Here at College Financial Consultants, we're seeing families apply to more private schools, as a result of the UC fee increases. In many cases, if families are able to obtain meaningful need-based financial aid from private schools, it's a  less expensive alternative than some UCs.

Read more...Examiner.com

Read more...AP Release

Creating The Optimal List of Schools

By Mitch Gross | September 10, 2009

I was reading an New York Times Blog with the article titled "Answers From a Guidance Counselor." The question was posed, third one down on the page, "How many colleges do you recommend applying to, and how should it be broken down by in terms of “Reach,” “Likely” and “Safety”?". And, I thought the answer was quite insightful. Now more than ever, families need to factor affordability into the equation. That means, know where the money is. I always like to recommend  to families that they start with a larger list of potential schools and pare that down based on a schools record of meeting the needs of families through need-based grant/scholarship dollars.

While the answer to the questions is a legnthy one and insightful, but here's the author's answer to the question - "I recommend applying to at least two “very probable” colleges, two to four “probable” colleges, and four to six “reach” colleges. Eight to 12 college applications should be sufficient; however, each student’s goals and admissions qualifications are unique; please take these numbers as guidelines only."

And, financial aid should should play a major factor when finalizing the list. A good portion of this list should contain schools with excellent reputation of meeting the financial need of the family. To read the entire article click here.

The Princeton Review Financial Aid Honor Roll

By Mitch Gross | August 13, 2009

Princeton Review recently released "The Best 371 Colleges" which included their 2010 Financial Aid Honor Roll. The list salutes 13 institutions that received the highest possible score. Most of these schools cover 100% of need-based aid and mostly in the form of grants/scholorships. However, some of these schools have relatively low acceptance rates given their academic and financial reputations. Most of these schools are on the smaller side, based on total undergrads. Acceptance rates below are for the 2008-2009 school year and are available on the College Board website. That said, some of the rates changed with the upcoming 2009-2010 class. You can likely find out the rates by visiting the websites for each college.For example, Claremon McKenna College acceptance rate dropped 6 ppts or 38% to 16%.

The Princeton Review's Honor Roll list includes(in alphabetical order):

College Prep Time

By Mitch Gross | August 12, 2009

While schools in the most of the country begin before the end of August, many students are starting to put their list of schools together, possibly considering Early Decision and looking at taking the SAT or ACT again.

Students will hit full stride once they're back in school, but with a little down time now it's a good time to visit schools and put together the proper plan to alleviate undue stress during the Fall.

A great blog post came out yesterday from the New York Times outlining a short to-do list before school is in session. In addition to Seniors, the blogger talks about incoming Juniors and how they can stay a step ahead. Definitely worth a read.

And, let us not forget Financial Aid. The College Board just released the 2010-11  CSS/Financial PROFILE Student Guide. Students can file the PROFILE as early as October 1, which is right around the corner. Parents need to be prepared, as the  financial award package could in the end be the deciding factor.

California State School Becoming Less Affordable?

By Mitch Gross | July 27, 2009

Recently the California State University (CSU) board approved a 20% rate hike on July 21. Let’s not forget that there was a 10% hike in May! The CSU system consists of 23 schools, including Cal State Long Beach, San Jose State, San Diego State and other popular institutions within the state of California. Tuition is now close to $5,000/year for school and not much available for financial aid within these public schools.

The CSU system is grappling with a reduction in funding by 20% as a result of California’s budget crisis. Over $8b is being cut from education across the state to try and close the deficit. Education is taking the brunt of the cost cutting, representing the largest category being cut from government spending. For example, the Community colleges of California are facing their largest cut in history.

While an affordable education is becoming harder to obtain in the state of California, the state government allowed Cal Grants to survive. The grants provide financial aid ranging from $3,354 to $9,708 a year for low-income students. But, there’s still a large portion of the student population looking at a 30% rate hike this year if they’re planning to attend a CSU school.

I’ve written about this before, but these cuts are completely short sighted. The repercussion of such dramatic rate hikes for higher education can’t possibly be measured in the present. It’s getting to a point, where college bound students in the state of California, can easily find schools out of state that are more affordable and on par academically. Is the future generation going to plant their seeds elsewhere? It starts with education, then affordable housing and jobs. California is struggling on all fronts.

Students Forgoing Their Dream Schools

By Mitch Gross | Jun 23, 2009

Recently, the NACAC (National Association for College Admission and Counselor) released results from a recent survey. According to the survey, 70% of high school students from the 2009 graduating class modified their college plans and chose more affordable options. The study also revealed that nearly 60% of respondents (i.e. high school guidance counselors) indicated an increase in the number of students planning to enroll in public versus private colleges in fall 2009, which supports the notion that students are no longer going for their “dream schools.”

While times are tough for many, students and their families are looking at the sticker prices and simply can’t fathom how they might be able to afford a $50,000/year education. While some schools re-allocated a portion of institutional grant dollars to their returning students, incoming freshman still stood a solid chance to get in with a generous financial aid package. We’re seeing

hundreds of award letters that support the notion that private institutions are still budgeting large amount of need-based grant dollars for the incoming class, albeit maybe not as generous as in year’s past.

It’s critical that families seek advice of a professional when applying for need-based aid, as there is simply no room for error given the current economic downturn directly impacting schools, in addition to the student’s family. Don’t let affordability get in the way. There are tremendous benefits in the career and life of an individual who pursues a top tier education versus a community college. Don’t allow your children to settle for anything less, if academically they can get in. There is still billions of grant dollars available for incoming freshman, but clearly it’s now more competitive than ever. Presenting your financial situation in the best light possible to the schools and the government is what will allow students, your children, to attend the school of their dreams and fulfill their aspirations.

Paying for Higher Education in California

By Mitch Gross | Jun 6, 2009

There's been a lot of news about the budget crisis in the state of California. I've been a resident of this beautiful state for over 20 years. Born on the East Coast, I went to school in Southern California at UC Santa Barbara. To say the least, it was a wonderful cultural experience for a young man, but school was inexpensive too. UCSB offered up a fantastic education, while on occasion, allowing a nice early surf session before class. Yes, sometimes dreams do come true. But, times are changing, and the state of California is under immense pressure to cut the budget deficit and higher education will certainly be impacted. Some UC schools are backed by a somewhat healthy endowment and therefore are in better shape than others to help offset price increases for students when taking into account student aid. The combined endowments of the 10-campus UC system are about $8 billion, as of 2008, less than half of Stanford's. And while the UC Berkeley endowment is in the neighborhood of $800 million---it is dwarfed by a well known California private institution - Stanford. Since 2001 University of California and California State University (CSU) systems have increased prices by more than 70%, even after adjusting for inflation. And, the news gets worse. In May, UC Regents increased the price of an in-state education by 9.3% and the CSU system recently implemented a 10% fee hike.
	And, while private institutions across the country average roughly $40,000-50,000 for the cost of attendance (COA), some UC schools continue to close the gap. UC Berkerley' COA is $28,000 for in-state and tops $50,000 for out-of-state students for the upcoming school year. Keep in mind, this takes into account all the variables that contribute towards COA - tuition/fees, room/board, food, transportation, personal expense. Long gone are the days where this historic public institution, with the goal of providing a stellar education at an affordable price for state
residents, is able to maintain that commitment. California budget cuts are inflicting a painful toll on the system. UC President Mark Yudof recently testified before the state’s Joint Legislative Conference Committee and stated, "Cuts of the magnitude proposed in Gov. Arnold Schwarzenegger’s budget proposal will require us to consider extremely painful options. These include the possibility of further reducing first-time freshman admissions for 2010-11, revisiting the fee increase levels for 2009-10 and implementing furloughs, more layoffs and salary reductions for our employees.” And, that's not all. Gov. Schwarzenegger is also proposing reducing the number of Cal Grants which would be devastating for families. More than 46,000 UC undergraduates receive Cal Grants, which generate $293 million in grant aid for students from lower-income California families. According to the governor's proposal, the elimination of Cal Grants would save the state $173 million in the new fiscal year that begins July 1 and an additional $450 million in the following fiscal year. However, a legislative committee rejected Gov. Arnold Schwarzenegger's plan in a 6-4 party-line vote with Democrats in the majority. So, stay tuned on that front... The reduction in student aid and fund commitments for higher education, plus fee hikes have dramatic consequences that will likely have a ripple effect in this state for years to come. I just hope California can keep it together and stay focused on what's important to maintain the 7th largest economy in the world. We need to invest in higher education through the UC, CSU and Community colleges and empower younger people to achieve great success and give back to this beautiful state. RSS Blog