For College (Blog or Resources)

ELFI Parent Company Helps Former Student-Athletes Obtain Degrees

Posted on May 8, 2020

Empowering others to reach their full academic potential is an integral part of Education Loan Finance’s mission, and this extends to its parent company, SouthEast Bank.

This was shown in a recent UTSports.com article highlighting how several former standout University of Tennessee athletes are set to complete their undergraduate degrees after putting their education on hold to pursue professional sports careers – these athletes, including former NFL wide receiver Peerless Price, were able to obtain their degrees with the help of the SouthEast Bank Renewing Academic Commitment (RAC) program, which helps former University of Tennessee student-athletes return to the university to complete their undergraduate studies.

As a company, we are proud to empower these individuals in achieving their academic goals and we congratulate them for their achievements both on the playing field and in the classroom.

Read the SouthEast Bank blog for more details on how this program has helped former University of Tennessee student-athletes achieve their academic goals.

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.

Financial Aid Options for Middle-Income Families

Posted on February 10, 2020April 21, 2020

It’s no secret that college comes with a hefty price tag. Every year, students and their families have to figure out how they’re going to pay thousands of dollars in school bills. While high-income families may have the resources to pay tuition, footing the entire bill just isn’t realistic for some families, especially if they have more than one child attending college. This is why many students rely on financial aid to fund their education.

It’s generally known that students from lower-income families can qualify for special scholarships and grants that help fill the gap to fund their education, but for families around the middle-income tier, financial aid options may be harder to come by and make them feel that their options are limited. Rest assured that there are options for middle-class families to receive the financial assistance they need – it just may take a bit more effort.

FAFSA

When it comes to looking for financial aid for college, the FAFSA is a great place to start. The Free Application for Federal Student Aid has no income cutoff for eligibility, so your child could still receive some need-based aid from the FAFSA, especially if he or she plans on enrolling at a higher-cost school. The FAFSA opens October 1 every year, and you can apply as early as the year prior to your child’s first day of college. The earlier you apply, the more likely your child is to receive financial aid.

Scholarships

Researching and applying for scholarships has continually proven itself worthy of the effort. Many scholarships are merit-based instead of need-based, so your child may be eligible for many different scholarships depending on the qualifications. Start by looking for local scholarships – many locally-owned businesses and organizations offer scholarships for graduating high school students. If your child visits the school guidance office, they may have some applications on file. You or your spouse could also ask your employer if they offer any type of scholarships or financial aid for employees’ children. After exhausting local options, your child may want to research national opportunities. A quick web search could reveal countless free scholarships – Niche, Fastweb, and eCampusTours are a good place to start. Finally, many colleges offer merit-based scholarships and endowment scholarships. Make sure your child looks for institutional scholarships at the school he or she plans to attend. You may discover that if your child joins a club or raises a standardized test score by a couple of points, he or she could receive thousands more dollars of financial aid.

Tuition Discounts

If a family member, such as a parent or grandparent attended the same college or university you’re enrolled in, you may receive a tuition discount. There may be additional requirements to qualifying for this discount, such as, your family member being active in the school’s alumni association or maintaining a certain GPA.

Tax Rewards

Middle-income families are perfectly positioned to receive tax credits for college expenditures. For example, the Lifetime Learning credit has income requirements that exclude those who earn over and under certain amounts. Programs like this, as well as tuition savings plans, offer a few different ways for middle-income families to receive tax benefits.

Federal Loans

If you’ve taken advantage of all your financial aid options and find you still have more to pay, it may be time to consider loans. Non-need based federal loans such as the Unsubsidized Federal Stafford Loan for students and the Federal PLUS Loan for parents can bridge whatever gap you find in your aid and your expenses. Federal education loans generally have low interest rates or may be tax-deductible, so they’re a smart alternative to using a credit card, for example.

Private Loans

You may find that you still need financial assistance after exhausting all the options above. If that’s the case, private student loans may be for you. We always recommend you take advantage of grants, scholarships, and federal aid before taking out a private student loan. To learn more about ELFI’s private student loan options,* click here.

The cost of college can present a challenge for families at all income levels, but middle-income families often struggle the most to find good financial aid options because their finances fall between affording college and needing assistance. If your family is in this situation, don’t let it get you down. The options in this article are a good place to start searching for financial assistance. Don’t lose sight of the end goal – getting the degree you want and establishing a successful career. If you’re already looking for financial aid options, you’re well on your way.

*Subject to credit approval. Terms and conditions apply.

Note: Links to other websites are provided as a convenience only. A link does not imply SouthEast Bank’s sponsorship or approval of any other site. SouthEast Bank does not control the content of these sites.

FAFSA Deadlines for 2020

Posted on January 27, 2020April 21, 2020

Congratulations! You are graduating high school and taking the next step into college. You may have been accepted into different schools and still deciding where you will attend or you have already been admitted into your dream school and are now wondering how you will pay for it. Whether you’re already committed to a school or still planning your future, it’s important to know what the FAFSA is and the deadlines associated with it when you are figuring out how to pay for college.

What is the FAFSA?

FAFSA stands for Free Application for Federal Student Aid. You should complete the FAFSA in order to be eligible to receive federal, state financial aid, and aid from your school. The aid can be in the form of grants, scholarships, work study, and federal student loans. The application is easy to complete online or by paper. The application provides the necessary information to calculate your financial need to see what aid you would be eligible for. There are no income limitations so it’s smart to fill out FAFSA regardless of your financial situation. Even if you think you and/or your family may not qualify for financial aid, you will not know for sure until your university’s financial aid office reviews your application.

Note: As the name states it is a free application, so be aware of any websites that charge you to fill out the application to avoid any scams!

Who Should File the FAFSA?

If you are a senior in high school and will be attending college you should fill out the form. Also, returning college students who previously filled out the FAFSA must fill out the FAFSA every year while in school. The information allows financial aid offices to determine your financial need.

Your financial need is determined by taking the Cost of Attendance (COA) and subtracting your Expected Family Contribution (EFC). COA – EFC = Financial Need.
The COA is different for each school and includes tuition, books, supplies, transportation, and room and board.
Your EFC is calculated by a formula established by law based on the information provided on the FAFSA. The formula takes into account your family’s income, assets, and family size, among other factors for a dependent student.
If your EFC is low you may be eligible for more financial aid.

So how does all this work? Here is an example:

You plan to attend a school with a COA of $25,000.
Your EFC is $10,000.
$25,000 – $10,000 = $15,000 is your financial need. This amount could be awarded to you in grants by the school, state or federal grants or by subsidized federal student loans.

Preparing to File the FAFSA

Ready to file? Here is the information you will need to complete the application.

If you are a dependent student (receiving financial help from parents) you will need the following for both you and your parents:
- Social Security Number
- Tax returns
- Bank statements
You will also need to apply for a FSA ID. This is a username and password that will allow you to access the Federal Student Aid’s system to complete and sign the FAFSA electronically.

Important Dates to Know

The earlier you file the FAFSA, the better because you will be eligible for more aid. It is also important to file before the federal deadline because some states set their own deadlines that may be earlier than the federal deadline. Your state may also require an additional form, so be sure to check the Federal Student Aid website to see what your state requires. In addition, some schools have an earlier deadline then the federal deadline so you should check with your school’s financial aid office to ensure that you don’t miss their deadline.

The important federal dates to know are:

October 1 – the application becomes available
June 30 – the deadline to file each year

The application becomes available on October 1, the year before you would start school. While you have until June 30 after the school year to submit the application, it’s advantageous for you to apply as early as possible.

This means for the 2019-2020 school year the application became available on October 1, 2018 and the deadline is June 30, 2020. For the 2020-2021 school year the application became available on October 1, 2019 and must be submitted by June 30, 2021. On October 1, 2020 the application for the 2021-2022 school year will become available.

Other Options: Private Student Loans and Student Loan Refinancing

Maybe you didn’t know about the financial aid process and the deadline passed or didn’t receive enough aid and are looking to cover the gap in education expenses. Luckily, there are other options to help you pay for school.

Private student loans are a great resource to help you pay for higher education. Private student loans are from a private lending company or bank that you can use to pay for your school expenses included in the cost of attendance. You can apply for private student loans at any time. Just like with the FAFSA, you will need to provide some financial information and documents, such as your most recent W-2 and paystub. If you do not have these items you may need a co-signer, such as a parent, who will have these documents.

There are many private lenders so it’s best to do your research and compare. You want a lender that is reputable and offers a good rate on your loan. It’s also important to compare the terms of any loan offers. For example, you should check if there is a prepayment penalty on the loan or any fees associated with the loan.

A private student loan company should make the process easy. At ELFI there are no fees to apply, no origination fees and no prepayment penalties*. There are also flexible repayment options. The online application is a simple process that allows you to see personal rates within minutes and you receive a dedicated Personal Loan Advisor to help you through the loan process.

Private student loan companies can also help if you have already taken out loans. Through student loan refinancing*, you can reduce the interest you are paying on your student loans and as a result, reduce your monthly payments and the amount you pay over the lifetime of the loan. To see how much you could save by refinancing, check out our student loan refinance calculator.

Bottom Line

Mark the dates in your calendar and be sure to fill out the FAFSA early. Paying for school can be one less worry if you plan ahead!

*Subject to credit approval. Terms and conditions apply.

This Week in Student Loans: January 24

Posted on January 24, 2020April 21, 2020

Please note: Education Loan Finance does not endorse or take positions on any political matters that are mentioned. Our weekly summary is for informational purposes only and is solely intended to bring relevant news to our readers.

This week in student loans:

A Zero Based Budget Helped This Woman Pay Off $215k Worth of Student Loan Debt in 4 Years
Court Cites Student Loans As Reason To Deny Bar Admission To New Lawyer
Student Loan Debt Is a Key Factor for Gen Z When Making Career Decisions

A Zero Based Budget Helped This Woman Pay Off $215k Worth of Student Loan Debt in 4 Years

When Cindy Zuniga accomplished a major milestone when she graduated from law school in 2015, however, she also came out with $215,000 in student loan debt. See how she managed to eliminate her debt in just four years by both refinancing her student loans and using a zero based budget.

Source: ABC News

signing legislation

Court Cites Student Loans As Reason To Deny Bar Admission To New Lawyer

Student loan debt can sometimes be a barrier to obtaining professional licensure, specifically for teachers, doctors, and nurses. For one recent graduate of law school, her student loan debt played a significant role in her being denied a license to practice law.

Source: Forbes

Student Loan Debt Is a Key Factor for Gen Z When Making Career Decisions

A recent survey found that Gen Z’s concern over student loan debt is a key factor in their career decisions, causing many to prioritize finances over passion when it comes to their fields of study. The study found that an overwhelming 61% of college students would take a job they’re not passionate about due to the pressure to pay off their student loans.

Source: Yahoo News

That wraps things up for this week! Follow us on Facebook, Instagram, Twitter, or LinkedIn for more news about student loans, refinancing, and achieving financial freedom.

5 Things to Do Immediately After Graduation

Posted on January 21, 2020April 21, 2020

By Kat Tretina

Kat Tretina is a freelance writer based in Orlando, Florida. Her work has been featured in publications like The Huffington Post, Entrepreneur, and more. She is focused on helping people pay down their debt and boost their income.

If you’re in your senior year and preparing for graduation — congratulations! Graduating from college is a huge accomplishment.

But after the hat toss, you have to start worrying about things like finding a job. And, if you’re like most college students, you probably have student loan debt to manage, too. As you start preparing for graduation, here are five things you should do to handle your student loans.

1. Find Your Loan Details

You likely needed to take out several loans to pay for school. It’s common for graduates to have as many as 12 different student loans when they graduate from college. Worse, your loans can be sold and transferred to different servicers, making it difficult to keep track of your debt.

After you graduate, look up all of your student loans and figure out who your loan servicers are, what your monthly payment is, and your due dates.

Federal Student Loans

To find your federal loans, use the National Student Loan Data System. Just enter your Federal Student Aid ID and password and you can view all of the federal loans under your name. The site will list your loan servicer and loan balance. Once you have that information, you can go to the loan servicer’s website and create an account and start making payments.

Private Student Loans

For private loans, you can identify the different loans and lenders by looking up your credit report at AnnualCreditReport.com, which allows you to get one free credit report per year. Your credit report will show what company currently manages your loan. When you find your loan servicer, you can contact the company directly to find out how to open an online account and make payments.

2. Create a Budget

Your student loan payments will likely eat up a significant part of your monthly income, especially when you’re just starting out in your career. To make sure you can afford the payments and your other living expenses, spend some time creating a monthly budget.

While you can use software like You Need a Budget (YNAB), you can also make a budget with just a simple pen and paper. List all of your monthly income, including earnings from your job and side gigs. Next, list all of your expenses, such as rent, utilities, internet service, student loan payments, car payments, and insurance.

Hopefully, your income exceeds your spending. If that’s not the case, you’ll have to look for areas to cut to give you some more breathing room in your monthly budget. Or, you can boost your income by freelancing or launching a side gig.

3. Sign Up for an Income-Driven Repayment Plan

If your starting salary is too low, or if you can’t afford the payments on your federal student loans, consider signing up for an income-driven repayment (IDR) plan.

There are four different IDR plans. While the specifics of each plan vary, the general concept is the same: the loan servicer extends your repayment term and caps your monthly payments at a percentage of your discretionary income. Depending on your income and family size, you can dramatically reduce your monthly bill. In fact, some people qualify for payments as low as $0.

After 20 to 25 years of making payments, the loan servicer will forgive your remaining loan balance. While the forgiven amount is taxable as income, IDR plan forgiveness can still help you save thousands.

You can apply for an IDR plan online.

4. Refinance Student Loans

If you have private student loans or a mix of both federal and private loans and want to pay off your debt as quickly as possible, look into student loan refinancing. By working with a private lender to take out a loan for the amount of your existing debt, you could potentially lower your interest rate, helping you save money. Or, you could get a longer repayment term and reduce your monthly payments, making them more affordable.

How effective is student loan refinancing? The savings can be significant. According to The Institute for College Access & Success, the average graduate has $29,200 in student loan debt. If you had that much debt with a 10-year repayment term and a 6% interest rate, your monthly payment would be $324. By the end of your loan term, you’d pay a total of $38,902.

But if you refinanced your debt and qualified for a 10-year loan at 4% interest, your monthly payment would drop to $296 per month. Over the course of your loan, you’d repay just $35,476. Refinancing your student loans would allow you to save over $3,400.

chart showing the difference between refinances student loan and original loan

While there are some drawbacks to refinancing your education debt, refinancing can be a smart way to manage your loans. If you decide that student loan refinancing is right for you, use ELFI’s Student Loan Refinancing Calculator to get an idea of what your repayment plan could look like. Prequalification is 100% online, free, and won’t affect your credit score*.

5. Sign Up for Automatic Payments

Managing your different loans and their various payment due dates can be overwhelming. But missing a payment can hurt your credit, and you could be subject to costly fees and penalties.

Signing up for automatic payments is a great way to ensure you never miss a payment and improve your credit history.

The Bottom Line

Your college graduation may feel far off, but it’ll be here before you know it. When it comes to preparing for graduation, developing a student loan repayment strategy is essential. By creating a plan now, you can ensure you’re ready to handle your student loan debt when your payments are due.

*Subject to credit approval. Terms and conditions apply.

This Week in Student Loans: January 17

Posted on January 17, 2020April 21, 2020

This week in student loans:

House Democrats Overturn DeVos on Student Loan Forgiveness
Could Elizabeth Warren Really Wipe Out $1 Trillion in Student Loans in a Single Stroke?
Study: Barely Anyone is Paying Off Their Student Loans
IRS Issues Tax Guidance On Discharged Student Loans

House of representatives

House Democrats Overturn DeVos on Student Loan Forgiveness

This Thursday, the Democrat-controlled House voted to overturn regulations introduced by Education Secretary Betsy Devos that eliminate the “borrower defense” rules introduced by the Obama administration. Critics have said the new regulations make it more difficult to get student loan forgiveness if a college suddenly closes. Sources say that the move to overturn Devos’ new regulations won’t pass the GOP-controlled Senate, however – and Trump is likely to veto the bill even if it does.

Source: USA Today

signing legislation

Could Elizabeth Warren Really Wipe Out $1 Trillion in Student Loans in a Single Stroke?

Democratic Presidential Candidate Elizabeth Warren recently vowed to eliminate hundreds of billions of dollars in student loans on her first day in office if elected president. Her plan was released just before Tuesday night’s Democratic primary debate. While the ability to erase debt is typically a decision left to Congress, student loans may be a different story due to a loophole involving the “Higher Education Act” passed in 1965.

Source: CBS News

can't pay student loans

Study: Barely Anyone is Paying Off Their Student Loans

A recent study revealed that very few people are making progress on paying off their student loans, along with shifting factors in the nation’s rising student loan debt. The study found that 51 percent of students who took out loans from 2010-12 haven’t made any progress in paying them off. Additionally, it showed that while in the past higher enrollment and rising tuition costs were the main drivers in the rising debt, slow repayments and amassing interest have now become the primary drivers.

Source: NY Daily News

IRS building

IRS Issues Tax Guidance On Discharged Student Loans

The Internal Revenue Service recently issued guidance for some taxpayers who took out federal or private student loans and qualified to have their loans discharged. Typically, having loans discharged is treated as a taxable event, in which the forgiven amount is treated as income – but the tax break from the IRS allows the discharged amount to not be recognized as taxable income.

Source: Forbes

That wraps things up for this week! Follow us on Facebook, Instagram, Twitter, or LinkedIn for more news about student loans, refinancing, and achieving financial freedom.

This Week in Student Loans: January 10

Posted on January 10, 2020April 21, 2020

This week in student loans:

Half of Income-Driven Repayment Borrowers Miss Recertification Deadlines
Colorado Weighs “Get On Your Feet” Bill to Assist College Graduates in State
Filling Out FAFSA Won’t Get You Drafted, Experts Say
The Student Loan Forgiveness Tax Bomb
ELFI Surpasses $1 Billion in Student Loan Refinancing

Income-Driven Repayment Borrowers After Missed Deadlines to Recertify

Half of Income-Driven Repayment Borrowers Miss Recertification Deadlines

Over 8 million student loan borrowers use the Federal Income-Driven Repayment plan to help afford monthly payments. The plan can drop payments as low as $0 per month, depending on the borrower’s income and family size. However, in order to stay in these plans, borrowers must recertify annually to avoid consequences such as increased payments, a larger loan balance, and potentially defaulting on the loans. ABC News reported that according to Department of Education data, more than half of borrowers miss the deadline to recertify.

While they will likely have to recertify annually, a new law is being put in place to allow borrowers to opt into automatic recertification. The article encourages borrowers with income-driven repayment plans to watch for the option to become available.

Source: ABC News

Colorado weighs "get on your feet" bill to help in-state graduated with student loans

Colorado Weighs “Get On Your Feet” Bill to Assist College Graduates in State

New graduates of public colleges in Colorado may have more incentive to stay in-state following graduation due to a new bill in the works that could mandate the state to pay their student loan payments for two years. If passed, the “Get On Your Feet” bill will take effect for public college graduates who commit to staying in Colorado and enroll in an income-based repayment program.

Source: Denver Post

college student panicking because of FAFSA rumors

Filling Out FAFSA Won’t Get You Drafted, Experts Say

With tensions rising between the U.S. and Iran this week, a misinterpretation of the fine print within the FAFSA application led some college students to panic over the potential of being drafted. Despite the widespread social media panic, experts say that the federal form won’t actually increase your chances of being drafted.

Source: USA Today

student loan forgiveness tax implications

The Student Loan Forgiveness Tax Bomb

Forbes writer Robert Farrington published an article on January 6 highlighting the tax liabilities that borrowers who receive loan forgiveness through income-driven repayment plans will face. While it’s not widely known, forgiven debt is treated as taxable income during the year that debt is forgiven through an income-based repayment plan. The article outlines the surprising amount that borrowers might pay in taxes when having their loans forgiven.

Source: Forbes

ELFI team celebrates $1 billion in refinanced student loans

ELFI Surpasses $1 Billion in Student Loan Refinancing

Education Loan Finance (ELFI), a division of SouthEast Bank, announced the successful funding of over $1 billion in student loan refinancing and consolidation loans. This funding has positively impacted over 14,500 graduates, parents, and cosigners since they began offering student loan refinance products in December of 2015. ELFI maintains an industry-leading “Excellent” 4.8/5 rating on Trustpilot.com and has been named one of NerdWallet’s Best Student Loan Refi Companies for Customer Service for 2019.

Source: Education Loan Finance

That wraps things up for this week! Follow us on Facebook, Instagram, Twitter, or LinkedIn for more news about student loans, refinancing, and achieving financial freedom.

Educate Yourself Before Taking Out Student Loans

Posted on November 25, 2019February 7, 2020

Taking out student loans to attend college has become extremely common in the United States. However, just because they are common does not mean you shouldn’t pay attention to what you’re getting into. It’s important to know your responsibilities when taking out a loan of any type, especially student loans. Take these steps before making an investment in your education by taking out a student loan.

Educate Yourself

Before you take out a student loan, educate yourself on the details of it. Make note of the interest rates, eligibility terms, repayment terms, etc. before signing off on the loan. Our friends at eCampusTours have several articles and resources about student loans that can help you better understand your loan terms:

Repayment Plan

Keep in mind that when you take out a student loan, you will have to pay it back – even if you don’t graduate or aren’t happy with your education. If you want to get a grasp on what your repayment will look like following college, check out this worksheet:

Budget Worksheet While Attending College

Ideally, you’ll secure a job in your field after graduating from college. Although you’ll want to pay off your loan quickly, keep in mind that your overall repayment shouldn’t exceed 15% of your monthly income. ELFI has some additional tips for prioritizing your student loan repayment. Here’s a worksheet that can help you determine how to repay your loans following college:

Budget Worksheet After Graduation

Taking out student loans is a commitment. Educating yourself on the responsibilities associated with student loans will help you make sound decisions about your education and will prevent you from feeling blindsided by your student loan debt and repayment terms later on.

The Average Cost of College

Posted on November 18, 2019December 3, 2019

When it comes to shopping, many of us have champagne taste and a beer budget. We shop with our eyes and our hearts before taking a peek at the price tag. The process of selecting a college is no different. We make decisions based on location, athletic teams, available programs of study, greek life, or even where our friends apply. Unfortunately, for many people, the cost of college lives at the bottom of the checklist, despite being a vital factor to consider.

The average cost of college for the 2019-2020 school year, is $21,950 for public, four-year, in-state colleges and $49,870 for private universities. This is an increase of 2.6% and 3.3%, respectively, over the year prior, alone.

Without question, college is expensive, and very few people are talented enough to get an athletic or academic scholarship to completely or partially cover the cost of education. An even smaller number of people are able to pay for a degree out-of-pocket. That leaves the majority of college students and their families to rely on loans to pay the bills.

Further complicating matters, a lot goes into the cost of college, including your residency status, level of degree you seek (bachelor’s, master’s, or doctoral), where you live (on-campus, alone, or with a house full of roommates), and even how much you eat or how you commute to campus.

To help you understand where you can save, as well as how you can cover expenses with financial aid, let’s dig into what comprises the average cost of college.

Tuition

Average Cost: $10,440 (public) | $36,880 (private)*

Tuition is the amount you pay your university to enroll in classes. The total changes based on the number of credit hours you take and if you take courses with additional charges like science labs or residential academic programs that let you attend smaller classes in your dorm. Offers like the Western Undergraduate Exchange (WUE) can help students save money by providing in-state tuition to out-of-state students. Despite programs like this, the average cost of college is always rising because tuition increases each year based on inflation, school budgets, and a variety of other factors.

Mandatory fees are lumped into tuition and include contributions toward campus construction and access to things like:

Student rec center
Athletic events
Career services
Student activities
Computer labs
Bus passes
Etc.

Room and Board

Average Cost: $11,510 (public) | $12,000 (private)*

Many colleges require you to live on-campus for at least your first year of attendance. The benefit of this requirement is that you’re close to classes and resources, including dining halls and bodegas that can be paid for with your room and board fees. These costs aren’t typically part of the bill for community colleges or schools with a high population of daily commuters. However, students will still need to cover living expenses like rent, utilities, and groceries if they chose not to live at home with their parents and amounts vary based on eating habits and geographic locations. For example, rent in California is higher than in Tennessee and the general cost of living in an urban setting is higher than it is at a rural school.

Books

Average Cost: $1,240 (public and private)*

Books can be a secret killer when it comes to college expenses. No one ever anticipates the sticker shock associated with their first $300 textbook. These costs also include necessary technology like tablets or laptops for note-taking and essay writing. It also can include special supplies like graphite pencils and drawing paper for art majors or scrubs or stethoscopes for nursing majors. These semesterly shopping trips can do real damage to your checking account and add to the average cost of college.

Transportation

Average Cost: $1,230 (public) | $1,060 (private)*

So far, we’ve focused on what you’ll need to pay to get by on campus, but we haven’t talked about the expenses associated with getting to campus. These costs impact resident and commuter students and range from airplane tickets and bus fare to parking passes and tanks of gas.

Financial Aid

When factoring the average cost of college, the other side of the ledger is represented by financial aid in the form of scholarships and need-based grants. With these awards, that don’t have to be repaid, the cost of tuition is reduced.

In addition to scholarships and grants, federal and private loans are available to help cover the cost of college. Private lenders offer student loan options for undergraduate students, graduate students, and even parents. Loans cover everything from tuition to personal expenses that you’ll occur during your college years, like cell phone bills, clothes, laundry, or even a bed for your apartment. The biggest thing to keep in mind when taking out loans is to borrow only what you’ll need. It’s necessary to have money to pay bills while you’re a full-time student, but borrowing too much can put you in a bind when it comes time to pay back those loans.

* Source: https://research.collegeboard.org/pdf/trends-college-pricing-2019-full-report.pdf

What is Early Decision for College?

Posted on November 12, 2019February 7, 2020

If you, or your son or daughter, are currently applying for colleges, you live in a world of deadlines. There are ACT registration dates, SAT prep dates, application deadlines, and scholarship due dates. When you live by the calendar, it can feel like torture waiting to hear back from schools, especially your top choice. Some colleges have early decision options that help push the application and admissions process along. What is early decision? Students can elect to apply early decision to (typically) one school as early as November, and can subsequently hear back from that school in just a few weeks. There’s more to the agreement though…

Let’s dig into the details to see if this application option is right for you.

What is Early Decision?

Early decision is available at many private colleges and universities, and some public schools also offer this option. Certain highly selective programs like Ivy League schools can limit students to only one early application. Through this option, prospective students submit applications in early- to mid-November and hear back as early as late-November. This notification rolls in months before you might hear back from other colleges. In a typical application timeline, students submit applications in early winter for decisions by mid- to late spring.

There are two different early application windows. Early Decision I is typically in November while Early Decision II is in December or even January. If you don’t get into your Early Decision I school, you can still apply to another school’s Early Decision II deadline.

Early decision can also give you an edge when it comes to acceptance rate. In 2018, colleges with early decision had an average regular acceptance rate of 50.7%, while the early decision acceptance rate was 62.3%. Colleges appear to weigh early decision applications differently since these potential students demonstrate a strong interest in their programs.

What Are the Drawbacks of Early Decision?

If you apply to a binding arrangement like early decision, you lose the opportunity to compare financial aid packages from multiple colleges. This might also impact a college’s incentive to offer you merit-based financial aid. If you already expressed excitement and interest, why would the school need to convince you to attend by offering scholarship discounts? You might even have to accept the offer before hearing from third-party scholarship organizations, affecting your ability to accurately determine if you’ll be able to afford that dream school.

You can only typically reject an early decision offer if the school’s financial aid package isn’t realistic for your financial situation or if your financial situation has changed. However, if the school truly is your first choice, you can still apply for scholarships or private student loans to help bridge the gap.

Finally, if you’re going to hit early decision deadlines, you need to be very organized. Submitting applications four to six months early means you also need to have application materials ready early. It’s recommended that you leave time to take the ACT and/or SAT at least twice, in case you need to boost your score. Without planning ahead, you might find yourself up against early decision deadlines.

If early decision seems like an intimidating commitment, many schools also offer early action. This option allows students to apply and receive an admission decision earlier than typical decisions. But the main difference is that the option isn’t binding.

What’s The Right Choice?

Now that we’ve answered the question, “What is early decision?” the next question is whether this option is right for you. It can be tempting to want to hear back from your dream school before the holiday break hits. However, you have to consider if you’re prepared to submit your best application at such an early date. You also have to do your research regarding financial aid.

There are many choices to make when applying for college. Be sure you’re aware of what your choices mean for your college career and the loans that will help you get through those four years.