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The news on college costs is mighty grim, but there are plenty
of creative ways to keep your college dream on track.
Dwindling state and federal aid, lower endowments and drops
in fund raising have forced many colleges and universities
to raise tuition prices and cut back on financial aid programs.
What's a cash-strapped student to do?
Get real and then get creative.
First off, face facts -- These are trying times for anyone
pursuing higher education.
It's time to pull out all the stops. Be flexible. Be determined.
Be willing to give the unusual a try.
Here's a roundup of some offbeat and overlooked strategies
for pursuing and paying for a college degree.
1. Accelerate your degree
Accelerated classes cram a semester's worth of material into
six- or eight-week sessions. The classes, while intense, can
really help to move up your graduation date. You land the
degree you want at a much lower price.
Tuition in an accelerated degree program at Albert Magnus
College in New Haven, Conn., is about half of the cost of
its traditional degree program. And many schools offer bachelor's
degree programs in three years instead of four.
For students on the physician track, George Washington University
in Washington, D.C., offers a seven-year program integrating
a bachelor's degree with a medical degree, saving a full year's
costs.
At Seton Hill College in Greensburg, Pa., a student can receive
a bachelor's degree and a master's degree in elementary art
education for the price of a bachelor's degree.
An accelerated degree program is a great option for a student
with a clear career goal. If you're ready to work hard, why
not put your college education on the fast track?
2. Be a transfer student
Consider the power of credit transfer.
In many cases, credits earned at a less-expensive college
or university can be transferred and applied toward a degree
from a pricey, elite school. You could earn a prestigious
diploma at a fraction of the price.
So why not attend a community college for a couple of years
and then transfer to your dream college? It's not as if the
fancy diploma you'll hang on your wall will say "transfer
student."
Taking the transfer-student route will save you some serious
cash. Every credit earned at a low-cost community college
could save you hundreds of dollars in tuition. Also, by bunking
at your parent's house, you could knock down your room-and-board
charges to zero.
"You get some of your core curriculum out of the way
for a cheaper price," says David Cooper, who runs the
college-bound Web site Wiredscholar at SallieMae.com.
The first step is learning about articulation agreements
at your dream university and nearby two-year colleges.
An articulation agreement specifies which community college
course credits will be accepted toward a bachelor's degree
at the four-year college or university. It also outlines scholarship
requirements and specifies what kind of grades a student must
achieve to transfer to the four-year school as a junior.
3. Go where you're wanted
Somewhere out there is a college or university that's dying
to have you as a student. Find that school, fire off an application
and watch the cost of your college education drop.
"Every student is a star at the right college,"
says Ray Loewe, president of College Money, a Marlton, N.J.,
financial planning firm specializing in helping parents pay
for college.
And star students get deep discounts for their education.
A college that really wants you will find the aid and scholarships
to keep you.
"Colleges know what they want, and if you fit their
criteria, they're willing to pay," Loewe says.
The trick is finding the school that considers you a star.
Peruse college guides. Do your grades and SAT scores match
or exceed the average marks of the current student body? Does
the college offer the courses you want?
If so, this could be the school that rolls out the red carpet
for you.
"Choose a college where you fit in the top 25 to 30
percent of a class," Loewe says. "Obviously, the
higher you are the more the school wants you and the better
position you're in."
Not sure where to start your college search? Begin by checking
out smaller, regional colleges in your area. An excellent
but less-known college may be searching for a student just
like you.
4. Choose a tuition-free school
Overwhelmed by tuition prices and the prospect of paying massive
student loans after you graduate? Why not attend a tuition-free
school? You get the college education you want without the
hefty price tag. The catch? You may have to work. Some schools
require students to work 10 to 15 hours a week on campus and
in jobs related to their majors.
Tuition-free colleges include The Cooper Union in New York,
N.Y.; Webb Institute in Glen Cove, N.Y.; Berea College in
Berea, Ky.; College of the Ozarks in Point Lookout, Mo.; and
Alice Lloyd College in Pippa Passes, Ky.
5. Get a sponsor
Can't quite swing the cost of college? Get a little help from
a rich uncle. MyRichUncle provides money from private investors
to college students who need help with education expenses.
In return, a student agrees to pay a fixed percentage of
their gross future income for a fixed period.
"They pay less when they make less," says Raza
Khan, managing director of MyRichUncle. "They pay more
when they make more."
This is an education investment not a loan, so there's no
interest to pay.
For every $1,000 of financial help, a student agrees to pay
10 to 40 basis points of future income. A basis point is one
one-hundredth of a percentage point, so someone who receives
an education investment of $10,000 might agree to pay anywhere
from 1 to 4 percent of future income.
Payment periods are 10 years for graduate students and 15
years for undergraduate students. Payments begin six months
after graduation.
Once the payment period ends, a student's obligation ends
even if you end up paying back less than you were given.
"We're actually taking a chance on a student,"
Khan says. "If a student succeeds, we succeed."
6. Lock in tuition
Can't stand the way college tuition keeps shooting up? Consider
locking in a single-tuition rate for four years.
The tuition rate you pay as a wet-behind-the-ears freshman
is guaranteed until you graduate. No more losing sleep over
skyrocketing tuition costs.
Colleges with locked-in tuition programs include Anna Maria
College in Paxton, Mass.; Baylor University in Waco, Texas;
Centenary College of Louisiana in Shreveport, La.; Concordia
University in River Forest, Ill.; Hardin-Simmons University
in Abilene, Texas; Huntington College in Huntington, Ind.;
Urbana University in Urbana, Ohio; the University of Charleston
in Charleston, W.Va.; and New York's Pace University.
Some schools offer guaranteed-tuition programs for free.
Others charge fees. Be sure to check.
7. Never give up on scholarships
You don't have to be a stellar student to land a big scholarship.
Unless it's strictly an academic scholarship, your grades
don't really matter. As long as your grades make the cutoff,
often a 2.5 GPA or higher, you have as good a chance as any
applicant of bagging a scholarship.
And there's no reason your scholarship search can't continue
through four years of college.
"It's really just beating the bushes," Cooper says.
The Web is a great way to get started. Check out individual
college Web sites, and search for scholarship sources on sites
such as FastWeb, College Board, Collegeanswer.com and ScholarshipCoach.com.
Avoid sites that charge you to search for scholarships.
Don't overlook local sources of scholarships. Community-based
awards may be smaller, but they're also easier to win.
"There's millions of dollars of scholarships at the
local, community level," Cooper says. "Students
should look to organizations such as the Kiwanis Club, YMCA,
parents' employers and area businesses."
You can learn about local competitions at the public library
and at the guidance office at your local high school.
8. Work off debt with community service
Got your degree? Why not do some good and wipe out a big chunk
of education debt at the same time?
Recent college grads can cancel part or all of their federal-education
debt by working in public-service jobs -- lower-paying professional
jobs that serve low-income communities -- or by volunteering.
Loan-forgiveness programs are available to everyone from
teachers to nurses to young doctors and lawyers to Peace Corps
volunteers.
Teachers who work in low-income elementary or secondary schools
may be able to cancel as much as $5,000 of their federal Stafford
loan debt.
The National Health Service Corps offers loan-forgiveness
programs to physicians, nurse practitioners, physician assistants,
midwives, dentists, dental hygienists, psychologists and therapists
who work for two years in communities in great need of health
professionals.
Similar programs are available to attorneys who pursue public
interest careers. About 50 law schools offer loan-forgiveness
or loan-repayment assistance programs. The National Association
of Public Interest Law has a list of the schools on its Web
site. The site also lists state and employer loan-repayment-assistance
programs.
Several volunteer organizations also provide assistance with
student loan debt.
Peace Corps volunteers who complete a two-year term can wipe
out 30 percent of their Perkins loans' balance. Student loan
payments may also be deferred while serving in the Peace Corps.
Members of Americorps and Volunteers in Service to America
receive educational awards of $4,725 for each year of service.
These awards can be applied to student loans or future education
expenses.
9. Get a little help from your friends
How's this for a graduation gift idea? Ask family and friends
for help with those dreaded student loans.
Register at GradFree.com and friends and family can make
direct payments to your student loan account via credit card.
"We've had gifts anywhere from $30 up to a couple of
thousand," says Adam Lloyd, founder of GradFree.com.
Any student loan held by a U.S. lender can be paid this way,
including consolidation loans.
All loan repayment gifts up to $200 cost $12. All gifts greater
than $200 cost $25. If your aunt decides to pay $100 of your
student loan, her credit card will be charged $112. If she
decides on a $250 gift, she'll be charged $275.
The trick is persuading family and friends to pay your student
loan.
"The greatest response has been with the students themselves,"
Lloyd says. "We've got thousands of students on the database.
The parents -- it's a little bit tougher sell."
Anyone with student loans can register for this service.
In lieu of birthday and holiday gifts, why not ask for help
with heavy student loan payments?
"It gives you a little bit of a breather," Lloyd
says.
And if you can find a way to ask for cool, hard cash without
ruffling any feathers, why not give it a go? That way your
family and friends won't have to pay a hefty fee to the middleman.
And you'll be able to write a monstrous check for your next
student loan payment.
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