All Articles Tagged "college tuition"
The average tuition for public colleges jumped by a whopping 29 percent since 2007-2008, according to the Center on Budget and Policy Priorities. Meanwhile, during the same period, university chief executives pocketed a seven percent raise, CNN Money reports.
Let’s put these stats into perspective. Over the past seven years, tuition fees increased by $2,068. At the same time, public university presidents took home $428,000 in 2014 — this is 3.8 times the average salary of a full-time professor.
The highest-earning university CEO was Pennsylvania State’s Rodney Erickson, according to a survey conducted by the Chronicle of Education. Erickson raked in a whopping $1.5 million in 2013-2014. He snagged the chief executive position amid the sexual abuse scandal in 2011 and he stepped down last year.
“His compensation included a base pay of $633,336, bonus and severance totaling a combined $275,000, and retirement pay of $78,000,” CNN Money wrote. “On top of that, he received $586,267 in deferred compensation.”
Deferred compensation is a lump sum given to university presidents after they’ve served as CEO for a specific amount of time.
The second-highest paid public university CEO is R. Bowen Loftin, president of Texas A&M. He earned $1.1 million in 2014. His base pay was just $155,000, but since he stepped down from his position last year, he received a severance package of $850,000, a deferred compensation $123,432, and retirement pay of $100,000.
There’s a pattern here. CNN Money points out that six of the 10 highest-earning public university presidents resigned from their positions. Their departures grant them gratuitous pay packages that shoot them to the top of the list.
The highest paid college CEO of all time, according to the Chronicle, is the former president of Ohio State University and the current CEO of West Virginia University, E. Gordan Gee. He raked in more than $5 million in 2013.
“Since 2010, nine public college leaders have crossed the $1 million mark, some more than once,” CNN Money wrote.
Pay for public university presidents is rising, but their salaries pale in comparison to the earnings of private university CEOs. In 2012, 36 private college presidents raked in more than $1 million. The highest earning private university CEO, in 2012, was Rensselaer Polytechnic Institute’s Shirley Ann Jackson with a whopping $7.1 million in compensation.
Chronicle‘s analysis looked at 238 chief executives at 220 public colleges in the U.S.
Caitlyn Ricci, 21, may have left home but she still feels her parents should foot the bill for her college tuition. So she sued them and just last week a judge sided in her favor.
Caitlyn has been in court fighting August 2013. But now “a judge ruled that Michael Ricci and Maura McGarvey must pay $16,000 toward their daughter’s tuition for Temple University, where Caitlyn is a student,” reports Yahoo. Previously, another judge ruled the parents, who are divorced, must also pay for a community college she attended before transferring to Temple.
Michael decided to write his side of the events for Yahoo Parenting, and he said: “My daughter moved out, and I only ever see her in court. It’s certainly not what I wanted for my family.”
According to Caitlyn’s father she was kicked out of her Disney internship for underage drinking, and he and his wife punished her by having her do chores, abide by a curfew, and take summer classes. Caitlyn left home in February 2013 and went to her grandparents’. She sued for her college education and now Michael is upset that the court sided with his daughter.
“I am disappointed in the New Jersey Family court system for making parenting decisions for my daughter, as if they know what is best for her. The bottom line is, she made a mistake when she got kicked out of her internship program. There are consequences for her actions. She didn’t want to abide by our rules, so she left,” he wrote.
Michael says he’s so upset, he and his ex are trying to change local laws. He wrote: “My ex and I have met with legislators who are writing a new bill that protects parents from this happening again. Do you realize that if you are married in the state of New Jersey, you are not under any legal obligation to pay for college? But, if you get divorced, you must contribute?”
Caitlyn Ricci’s lawyer, Andrew Rochester, told Yahoo Parenting: “Since Caitlyn has moved in with her grandparents she has gotten into no trouble and her grades have gone up. She is a solid A/B college student and works a 30-hour job. Mr. Ricci should be proud of her accomplishments instead of disparaging because he doesn’t want to pay for her education…Mr. Ricci has made clear he wasn’t going to pay no matter what school Caitlyn went to. Mr. Ricci and Ms. McGarvey, based on their incomes, certainly have ability to pay, and we gave them options not to pay cash out of hand and they decided not to avail themselves of those options.”
So what are your thoughts on this situation? Should parents be obligated to pay for college if they have the means? Or should that be left to their discretion?
College acceptances in some ways are easier to come by than financing the education that comes with them. Despite the various financial aid/ loan packages one can sign up for, many students still fall short on payments needed for their housing or class materials. While some students turn to part-time jobs to relieve financial burdens, others decide to enter escort services.
The Atlantic reports that 44 percent of the 2.3 million women who are enlisted escorts — “sugar babies” — on the site Seeking Arrangement are in college. If the “babies” sign up to Seeking Arrangement with an .edu email address they receive free premium membership whereas male users must pay $1,200 for it. The “dating” site also claims the sexual relationships created between their “babies” and users are natural. Seeking Arrangement also upholds the illusion that its services are not prostitution despite the clear sex-for-money exchange.
Even though the relationships can get very physical, many of the sugar daddy/sugar baby relationships have an added dimension. It’s not just about physical looks, but also intelligence. It was duly noted in The Atlantic’s investigative piece, “some men on the site use it exclusively for sex, the majority want sex and something else. They want someone to come along on business trips, go to company events, and meet their friends—someone who understands and appears interested in what they have to say. Most importantly, they want someone who will help them pretend that the relationship is not a transaction.”
The “babies” interviewed by Caroline Kitchener, author of the investigative article, told her when they do not ask for their payments upfront, they receive more funds. Some of men even give the young women credit cards to make the exchange feel more personable. One woman, named Wanitwat shared:
“I found that some, if not most, of the guys don’t want to talk about money. I suspect that’s because it kills the fantasy. They’re trying to pretend that these smart, beautiful women actually want to hang out with them.”
Though these men may try to avoid the reality of the relationships they have with their “babies,” Kitchener challenges readers and even the “babies” to break through another illusion. The “babies” may be brilliant college students trying to fund their education, that does not exempt them from the label of prostitute. Or does it?
Whether you already graduated and are thinking of going back, or didn’t have the chance earlier in life, the opportunity to attend college can come your way. In fact, many employers now include tuition reimbursement programs that help lift much of the cost off your shoulders. Should you happen to work for an employer that has this benefit you might want to jump at the chance. But here are some things to consider with tuition reimbursement programs.
Student debt is out of control. The numbers say so. Recently The Huffington Post looked at the current coats of college versus nine years ago, and the increases are significant. The cost of public four-year colleges went from just over $10,000 in 2005 to nearly $20,000 in 2012. Private college tuition was a little more than $25,000 nine years ago. Now it’s more than $30,000. And student debt was less than $20,000 in 2005. Now it’s just shy of $30,000.
Sen. Elizabeth Warren is trying to push through some changes that will help students with student loan debt. And the rest of the Democrats have gotten behind it. The student loan bill introduced is a “wedge issue” in the 2014 midterm elections, forcing Republican candidates to either support it or explain why they don’t, reports Mother Jones.
Warren’s legislation would decrease interest rates on most federal student loans below four percent, reducing millions of Americans’ bills by hundreds or thousands of dollars a year. According to a recent Harvard poll, 57 percent of Americans ages 18 to 24 say student loan debt is a “major” issue for them.
The bill would be funded by eliminating tax breaks on millionaires and is part of what Democrats have called their “Fair Shot Agenda,” an election year slate of proposals.
The Senate Democrats will hold a vote on Warren’s bill, or a version of it, in early June.
Student debt has become a hot political topic. “In April, Student Debt Crisis, a group that advocates for student loan interest rate reform, nominated Rep. John Kline (R-Minn.) for television host Bill Maher’s ‘Flip-A-District’ contest, a campaign Maher launched to find the worst member of Congress and boot him from office,” reports Mother Jones. The group selected Kline because he proposed increasing student loan interest rates.
And in 2013, GOP senators filibustered student interest rate relief before agreeing to a compromise bill at the 11th hour. While the legislation prevented interest rates on new federal loans from doubling to 6.8 percent, it didn’t help the 40 million Americans who have existing student loan debt, some of whom have loans with rates of up to 10 percent.
Below is a recent speech that Sen. Warren made on the topic. See what she has to say.
Why does it seem like before we know it, our children are going to their first day of school? Do you remember your parents scrambling at the last minute to send you to college? Or did your folks plan ahead, expecting the day that you would be packing up and heading to university would arrive soon enough?
And there are plenty of expenses in between kindergarten and college: braces, ballet classes, summer camp, prom, etc. etc. etc. This is why we need some sort of game plan.
Here are some ways to save for your child’s financial future sooner than later.
No matter how you cut it, it seems like our society has moved to using more and more plastic – and by that I mean credit cards. Swipe it here and get rewards there, you know the deal. Even with other alternatives in place (“Swipe No More! Credit Card Alternatives to Consider“), there’s just no getting around the temptation of using a credit card.
The question is, what do you use your credit card for? Quick pick-me-ups at the store or maybe a spur of the moment shopping spree? Though everyone is different, there are certain things you just shouldn’t charge on your credit card.
As Spring makes its way across the country, so do college acceptance letters for high school seniors. While students are happily rejoicing, parents are wondering where they will find the money and pray that their children won’t end up defaulting on future loans.
“This is the month of negotiating,” Bob Ilukowicz, a financial aid consultant said to Reuters. Ilukowicz says that there is definitely aid still available. In fact, this upcoming 2012-2013 school year is seeing higher offers than those of years past. The average cost of a private nonprofit four-year college is now $38,590 including tuition, fees room and board but aid, classified as grants and federal tax breaks, generally take off $15,530 from that cost. According to the US Department of Education, about 80 percent of full time undergraduate students receive some kind of aid, and almost 64 percent receive grants that don’t have to be paid back. Still, student loans make up almost half of all financial aid.
Reuters suggest that in lieu of these facts, the first things parents and students should do is ask for more. Joe Paul Case, Amherst College’s financial aid administrator reveals that about two-thirds of parents who make a request for more aid get it. Amherst is a school that sticks to needs-based assistance, but schools that have the funds to offer merit and competition demands offer an even better chance that a parent’s appeal will be rewarded.
Be open and honest about family situations. Some colleges will take family problems that don’t appear on the financial aid sheet into consideration. Situations that often get re-considered are instances where non-custodial parents are not willing to help with school fees, and parents that now have good jobs but weren’t able to fully recover from a year of unemployment or healthy problems.
Think creatively. Starting school at a more affordable community college to take pre-requisites saves money. Taking a gap year to work before going to college also helps to offset the high cost of tuition. If a deferral puts the older student in college at the same time as the younger, this may also help a parent’s case to win more financial aid.
Schools that won’t negotiate may allow parents to pay on a monthly basis as opposed to a one large sum in a semester. This can help with cash flow. Also keep in mind that home equity credit lines now have lower rates than college loans. In addition, refinancing a home mortgage may also help with college costs.
Remember, before any decisions are made, consider all options and make as many appeals as you can. Many students aren’t able to attend their first-choice school because of finances. But consider the high cost of tuition vs. education quality and job opportunities upon graduation. Research shows that great students will do well regardless if they attended a public or a private school. Perhaps it’s best not to spend all of the money and obtain thousands of dollars in debt for an undergraduate education.
(New York Times) — Each incoming freshman at Randolph-Macon College this year was eligible to take part in a brief signing ceremony. The new student, along with a parent and the college president, could sign a special agreement that is emerging at some colleges and universities: As long as the student keeps up with academic work and meets regularly with advisers, the college guarantees that earning a degree there will take no more than four years. If it fails to hold up its end of the bargain — if required classes are not available, or if advisers give poor counsel — the college promises to cover the cost of additional tuition until the degree is completed. Four-year degree guarantees, as they have become known, are being offered at a growing number of smaller private colleges. They work as a marketing tool, giving colleges a way to ease parents’ fears that their children might enjoy college enough to stick around for five or six costly years. And they help to focus attention on the task at hand: graduating in four years.
(Washington Post) — American families spent 9 percent less on college in the 2010-11 academic year than in the previous year, reversing a recent trend toward increased college spending, according to a new Sallie Mae study. Previous surveys from the student loan giant found families spending progressively more on college from the 2008 to 2010 academic years, despite the recession. Why the sudden shift? More families began moving to lower-cost schools in 2010-11, the survey said, with a sharply higher share of high-income students choosing community college. There was also a rise in the sheer number of low-income students, some of whom presumably were middle-income students a year earlier, the study said. It also found that middle- and high-income families are spending less out of their own pockets (and bank accounts), and low-income families are spending more.