College Allocation Reduced for 2013 (Costly Classrooms) - Justin Capouellze works part time at the
Market Basket in Richland Township, doing anything that needs done. He also works as  a landscaper and at the commercial site of Stuver’s Nursery.

Capouellze, 20, a 2011 graduate of Greater Johnstown High School, knows how hard it is to earn money when so much has to go toward his college tuition.

His task will be even harder with an anticipated decision by the Cambria County Commissioners.



Effective with the 2014 budget, the commissioners plan to reduce the county’s allocation to Penn Highlands Community College, the school Capouellze attends.

“I’ve got to go back and look at my budget and find out where that money is going to come from,” Capouellze said.

“I’m worried about increasing my student loan debt.”

The commissioners recently notified the Penn Highlands board of directors that the county’s 2014 allocation will be reduced by $150,000 from the annual contribution of

$1.2 million, which includes $300,000 toward debt service.

The contribution does not come from Cambria County’s general fund, but rather a 1-mill dedicated tax imposed by county leaders about two decades ago when what was termed “The College Without Walls” was established.

Funds withheld from the college will be used for what Cambria County commissisoners Douglas Lengenfelder and Mark Wissinger are terming “economic development.”

Wissinger said the money is needed to cover costs associated with the planned Cambria County Economic Development Authority and setting up a foreign trade zone, which is designed to foster job creation.

“Last year, in the 2013 budget, to get enough money for economic development, we kind of robbed Peter to pay Paul,” Wissinger said.

The $150,000 cut, according to Frank Asonevich, Penn Highlands president, translates into a per student tuition hike of $75 per semester, or $150 per year. At this point, the only way to make up the $150,000 is by turning to the students, he said.

“I’m concerned if they’re going to look at the college budget and see it as a resource for other projects,” Asonevich said.

Future funding cuts to the college are not planned, said Lengenfelder who also is a member of the community college board. Prior to his election as commissioner, he taught at the college.

Lengenfelder views the funding reduction as indictive of what is happening everywhere in Cambria County government.

County offices have been forced to cut their expenses by 4.75 percent, something all are in the process of doing. The cut to the college, Lengenfelder said, is just more than 1 percent of its total annual budget of more than $12 million.

Those objecting to the cut point out it amounts to more than 12 percent of the total contribution from the county, far higher than the percentage of cuts in other budgetary areas.

Despite this, the $1.2 million the county is giving the college annually is significantly higher than what started out at $500,000 20 years ago, Wissinger said.

The total has more than doubled over the years, in part due to the action in 2005 to set the assessed ratio at 100 percent, up from the 50 percent of a property’s assessed valuation, Wissinger said.

County records show that in 2004, the college was receiving the revenue generated from

1.5 mills. Following the percentage change it was decreased to .75 mill and in 2010 increased to 1 mill.

This year, Cambria is facing a chicken and egg question – which comes first, Lengengelder said.

“With this, we will have a dedicated $150,000 a year for economic development, something the county has never had before,” he said. “It’s great to have an education, but if you have no jobs, it becomes an additional problem.”

A similar amount was carved out of the 2013 budget earmarked for economic development at the Johnstown/ Cambria County Airport.

The scope of Lengenfelder’s plans were larger than the all-volunteer airport authority wanted to tackle and the full $150,000 is still intact after Lengenfelder, in recent days, returned a $75,000 check to the county, Cambria County Controller Edward Cernic Jr. said.

Lengenfelder said the money will be used this year as efforts progress to form the authority, geared at economic development, and the $150,000 from the college will replace that county allocation.

Formed in 1993 as Cambria County Community College by commissioners Wissinger, Kathy Holtzman and the late Ted Baranik and later changed to Penn Highlands, the college has branch campuses in Richland, Ebensburg, Somerset and more recently Huntingdon.

The college is one of Holtzman’s most significant accomplishments.

“It’s my baby,” said Holtzman, who serves as vice president of the board. “It’s grown beyond my imagination.”

Holtzman said she has mixed emotions about the funding cut.

“I hate to see that happen, but I understand the position the commissioners are in,” she said. “We have to take our hit here, everybody is getting cut.”

Commissioner Thomas Chernisky said a vote on the initiative to cut the college’s contribution is a long way off.

“A lot can happen between now and the end of the year,” he said. “I’m not going to be supporting it, but we’ll vote at budget time.”

Penn Highlands is one of the fastest growing colleges in the state, Chernisky said, and deserves kudos for all it has accomplished in tough times.

“The college is an investment and a real economic generator for our county. We need a trained workforce,” he said.

Passing the cost of the cut onto the students is a move Holtzman is opposed to. She plans to come to an August meeting between the college board and Penn Highlands Foundation with some ideas about bringing the business community on board.

“I think we have to make up the money in other ways,” she said. “Businesses have an interest in the community college and we need to look for new revenue sources we can tap.”

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Looking Works to Control the Cost of a College Education - Among the most significant barriers facing
Vermonters who are seeking a college degree is the cost of an undergraduate education. Sterling College, a leading voice for environmental stewardship in the United States, is making a new commitment to providing financial aid to graduates of Vermont high schools, as well as associate degree recipients and transfer students.

Sterling College is committed to providing access to students who wish to pursue studies in Ecology, Environmental Humanities, Outdoor Education, or Sustainable Agriculture. While Sterling is a private college, it has committed to match in-state public
university tuition of the University of Vermont, for all Vermonters who gain admission for September 2013.

Sterling College is only one of seven federally recognized work colleges helping students reduce tuition and living expenses through on-campus work. Additionally, the College’s Board of Trustees recently limited the increase in tuition to only 2% for 2013-14. “The board understands that these are very challenging financial times for families in Vermont, and it is our intention that Sterling help ease the transition for students who want access to our unique programs of study,” said Wendy Koenig, Sterling College trustee and chair of its Enrollment Committee. (see HERE)

“We know that the growing career opportunities associated with the Sterling College curriculum are the most important areas of challenge facing society in the 21st century, and, that Vermont is the epicenter in the nation for studying critical disciplines focused on food, water, health, energy, soil, climate, and education, as such, it is essential that students who aspire to become environmental stewards have access to a Sterling education,” commented Matthew Derr, Sterling’s new president at the College’s most recent admission open house.

“Sterling College is taking important action to support Vermonters who aspire to earn a college degree. The College is committing itself to keeping educational costs under control. I commend President Derr’s leadership on both access and affordability,” offered Congressman Peter Welch of the College’s recent actions. (see HERE)

“Sterling College is committed to educating future generations of environmental stewards, and providing financial aid is a key commitment we make to see that that happens” continued President Derr. “We think big and act on our convictions, whether it’s divesting our endowment from fossil fuels or offering scholarships to climate justice activists.

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Is College Expenses Not Deductible ? - With less than two weeks to go to file your 2012 tax return, you
Today's question:

probably have questions. Whether you prepare your own tax return or pay someone to do it for you, we are here to help. Every day until April 15, members of the American Institute of Certified Public Accountants have agreed to answer tax questions from USA TODAY readers. Submit your questions to taxadvice@usatoday.com.

Q: Our son is a freshman attending an out- of-state university. We are paying tuition, travel expenses, car expenses including insurance, books, dorm and meal fees and travel expenses for trips back and forth during holidays and other visits home. Tuition amounted to $25,000 for the fall 2012 semester, and with the additional expenses we easily spent $30,000 per semester for the 2012/2013 year. Can we claim the costs besides tuition as deductions on our taxes for 2012?

A: For purposes of the tuition and fees deduction, student activity fees and expenses for course-related books, supplies, and equipment can be considered qualified education expenses but only if they have to be paid to the institution as a condition of enrollment or attendance. For example, even if you buy your books directly from the institution, they will not be considered a qualified education expense unless they are required to be purchased directly from the institution.

Expenses for insurance, medical expenses (including student health fees), room and board, transportation, and personal living expenses are not considered qualified education expenses even if the amount has to be paid to the institution as a condition of enrollment or attendance.

It's also important to note that if you are married filing jointly and your Modified Adjusted Gross Income (MAGI) is $130,000 or less, your maximum tuition and fees deduction is $4,000. If your MAGI is $130,001-$160,000 your maximum deduction is $2,000, and if your MAGI is over $160,000 no deduction is allowed.

The Tuition and Fees Deduction section of IRS Publication 970 gives all the details of the tuition and fees deduction.

Clare Levison, CPA
Blacksburg, VA

Previous questions:

Q: Help! I didn't file taxes in 2011 or 2012, I make a modest wage in a factory and am losing my house to foreclosure. What's the best way to "get right" with the government?

A: I would like to encourage you to file your 2012 tax returns, federal and state, by April 15 or at least file extensions by that date and pay as much as you can with the extension. The IRS charges a penalty for the failure to timely file of 5% per month (maximizes at 25%) of the tax required to shown on the return, less credits for withholding and estimated taxes paid. The penalty for the failure to file timely adds a huge burden to what you will eventually owe the IRS. Each state has its own penalty structure so I will not be commenting on those penalties.

You should file your 2011 tax returns as soon as possible even if you do not have the funds to pay the tax liability in full. The IRS encourages taxpayers to "get into compliance" by filing delinquent tax returns by mailing them to the same Service Center that you mail your 2012 return. If you owe taxes with the return there will be a Failure to Pay penalty (1/2 of 1% per month up to 25%) and interest will run on the tax and the penalty.

It sounds like you might not have the money to pay the taxes owed with the return. If you have the ability to pay monthly on an Installment Agreement you can file a Form 9465, Installment Agreement Request, with your return or separately. Also, you can get an "Online Payment Agreement" application at www.IRS.gov. If you owe $50,000 or less, the IRS will allow up to 72 months to repay your tax, penalty and interest. There is a fee to establish an Installment Agreement of $105 if paid by check, money order or credit card but is reduced to $52 with electronic fund withdrawal. This user fee is reduced to $43 by filing Form 13844 for low income taxpayers.

There are other options, such as filing an Offer in Compromise, if you cannot repay your taxes over the 10-year collection statute of limitations. Also, for taxpayers owing greater than $50,000 financial information is required when establishing an Installment Agreement. These are topics for another day.

Mary Lou Gervie, CPA
Watkins Meegan, Bethesda, Md.

Previous questions:

Q. I had deferred compensation from my previous employer which was not paid upon my retirement in June 2009 due to bankruptcy. The court system has determined all people will get their deferred compensation less legal fees. My deferred comp was mapped to a mutual fund's performance to determine actual payout amount. Can I claim a loss for the difference between what was originally due to be paid upon retirement and the final distribution amount received almost four years later? Or, can I claim a loss for the value of the deferred comp based on the mutual fund's performance over the four years since retirement and the actual value received.

A. Unfortunately, you can't deduct income that you didn't receive and pay taxes on, which means that you are unable to claim a loss for the amount that you expected to receive but did not due to the bankruptcy. This is an example of the downside of deferred compensation, which is that when you made the election, you basically agreed to the risk of becoming an unsecured creditor of your employer.

A case could be made for taking a loss for the change in value of the mutual fund over four years based on the value you will receive, but that is a very specific case that would require the personal engagement of a CPA or tax attorney. May I also opine that considering the state of the stock market in 2009, there is a good chance that the mutual fund's value has only increased since then?

Kelley C. Long, CPA
Shepard Schwartz & Harris, Chicago

Q: I live in Washington state, where gay marriage is legal, we have no state income tax, and we are a community property state. My partner and I have been together for 12 years, but we have not yet converted our domestic partnership to marriage since it became legal in December. In previous years we have both filed our federal returns as single, but this year we bought a house together and we are wondering what the proper way would be for us to file our federal income tax.

A: Federal law does not treat same-sex or registered domestic partners (RDPs) who are married under state law as married. Thus, such couples may not file their federal income tax return as married filing jointly (MFJ) or as married filing separately (MFS). So, being married under state law will not change your filing status under federal law.

Because you live in Washington state though, being married or RDPs changes how much income you each report on your federal returns. The IRS will follow state community property laws and has provided guidance for RDPs and same-sex couples in three such states: California, Nevada and Washington.

Basically, spouses or RDPs in these states split their community property income, with each spouse or partner reporting half of it on their federal returns. The IRS has provided several FAQs, as well as Publication 555, and Form 8958, to help in determining how to report community property income (as well as deductions and credits) on each spouse's federal tax return.

You each still file a separate return (not a joint return). Note that there could be changes to the filing rules depending on the outcome of the U.S. Supreme Court's decision on the constitutionality of the Defense of Marriage Act (DOMA).

For the mortgage interest, if you are married or RDPs in Washington, you can show the split of the mortgage interest on Form 8598 (and report your share on your Schedule A, with a reference to "See Form 8958"). If you are not RDPs or a married couple in Washington, you each determine your share of the mortgage interest and you each deduct your share that you paid.

One of you likely received a Form 1098, Mortgage Interest Statement, with only one name and Social Security Number on it. The IRS suggests that the other payor attach a statement to their return explaining that they paid part of that Form 1098 amount and provide the name and address of the person who received the Form 1098, and how much of the mortgage interest each owner paid. On Schedule A, Line 11 for mortgage interest, add "See attached" so the IRS knows the statement explaining the interest amount is on the return (since the IRS does not have a Form 1098 for that owner). For details, see IRS Publication 936, page 9.

Annette Nellen, CPA
San Jose State University, San Jose, Calif.

PREVIOUS QUESTIONS

Q: I filed 2 state tax returns for 2011, one for Massachusetts and one for Rhode Island. I received $400 from Rhode Island, but paid $200 for Mass. I itemized on my federal return. Do I have to claim the $400 refund as income, or can I reduce it by $200?

A: I will answer the question in two parts:

• The $200 paid to Massachusetts can be claimed as an itemized deduction on your 2012 tax return.

• The $400 refund from Rhode Island will need to be reported as income in 2012 if you paid taxes to Rhode Island in 2011 and claimed the taxes as an itemized deduction on your 2011 tax return. The entire amount of the refund would be reported as income if the entire amount of Rhode Island taxes were paid in the 2011 calendar year. This would include withholding amounts, quarterly estimates, extension payments and balance-due payments.

A portion of the refund may be taxable if the Rhode Island taxes credited on the 2011 tax return were paid over two years. In other words, you need to determine if payments were made in the 2012 calendar year but were credited in the 2011 tax-reporting year.

These type of payments would include a 2011 fourth-quarter estimate paid in January 2012 as estimates are due January 15th. Another type of payment is an extension payment that was paid in April of 2012 but was for the 2011 tax return year.

Therefore, if a state tax refund is the result of payments paid in two different years, you make an allocation to exclude the portion of the refund that was allocable to the 2012 calendar year payment. Please note that the portion that was excluded from income is also an offset to your 2012 state tax deduction.

Don Zidik, CPA
McGladrey LLP, Boston

Q: I am 73 and I cannot itemize my deductions (I will use the standard deduction of $7,400). My question: I heard there was a way to deduct my property tax ($4,600) while utilizing the standard deduction. Is this still allowed?

A: Unfortunately, this is not still allowed, and there is no way to deduct your property taxes on your federal income tax return without itemizing.

Five years ago, Congress passed a bill allowing a single person to deduct up to $500 of property taxes on a primary residence in addition to their standard deduction. The limit was $1,000 for a married couple filing jointly.

Unfortunately, this provision was only put in place for 2 years, so for the years 2008 and 2009, a person could deduct at least a portion of their property taxes, even if they were not itemizing.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended some tax breaks, but this tax break was allowed to expire and has never been reinstated.;

The instructions to for the 2010 Form 1040 on the IRS website lists expired tax benefits on page 6. For more information on itemized and standard deductions:

Frequently asked questions for itemized and standard deductions

Mackey McNeill, CPA
Mackey Advisors, Bellevue, Ky.

http://www.9news.com

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Compares College Costs Regionally and Nationwide 2013 - The cost of attending colleges and

Graduation rates, meanwhile, put regional institutions mostly in the middle of the pack nationally.

North Dakota University System Chancellor Hamid Shirvani, who has expressed concern with costs and graduation rates, said he thinks North Dakota institutions can do better.

The college scorecard is available through the White House website and helps students find colleges based on affordability, location, future occupation and other factors.

The site also allows students to see how a university compares to institutions nationwide that offer the same education level. For example, the University of North Dakota in Grand Forks primarily offers bachelor’s degrees, and it was compared with others that do the same.

universities in eastern North Dakota and northwest Minnesota are still mostly on the low end compared to similar institutions nationwide, according to the U.S. Department of Education’s new online “college scorecard.”

Better bang

Among four-year institutions around the nation, UND, North Dakota State University, Valley City State University and Minnesota State University Moorhead are all considered low-cost universities with medium graduation rates.

It cost a North Dakota State University student an average of $13,284 a year in 2010-11, including tuition and room and board. Of students who began in the fall of 2005, 53.7 percent graduated within six years with a bachelor’s degree. (see HERE)

The annual cost at MSUM was $11,684, while the six-year graduation rate was 44.7 percent.

For UND, the annual cost was $11,952, and the graduation rate was 54.3 percent.

At VCSU, the annual cost was $9,947, and the graduation rate was 42.1 percent.

Some four-year institutions in the three-state region boast better graduation rates.

Concordia College – a medium-cost institution at an annual price of $19,948 – ranked as having a high graduation rate, with 69.4 percent.

South Dakota State University is also low-cost at $12,815 but boasts a high graduation rate of 59.7 percent. The University of Minnesota, Twin Cities, is medium-cost at $16,019 and has a high graduation rate of 70.2 percent.

Among two-year institutions, Lake Region State College in Devils Lake and North Dakota State College of Science in Wahpeton and Minnesota State Community and Technical College, which has a campus in Moorhead, are all considered medium-cost colleges. Lake Region costs $7,460, MSCTC costs $10,578 and NDSCS costs $9,365.

Lake Region and NDSCS both have what’s considered a high graduation rate among their peers: 52.4 percent of students graduate with an associate degree within three years at Lake Region and 52 percent and NDSCS. MSCTC has a medium graduation rate of 35.4 percent.

Earlier this week, Shirvani said he believes graduation rates can be improved with the statewide education reform plan he introduced last year, which aimed to pair students with institutions they are most suitable for. He stressed the importance of students at four-year institutions graduating in four years, particularly for the state’s two research universities, UND and NDSU.

The college scorecard does not show how many students graduate in four years, but Shirvani said Thursday that 23 percent of UND students and 22 percent of NDSU students do so compared to 47 percent of U of M students.

Student debt

Student debt was considered medium at the majority of colleges and universities in the region. After completing or leaving school, former UND students pay a median $197.02 per month. For former NDSU students, it’s $182.98, and for those who attended MSUM, it was $175.50.

Loan payments for former VCSU students were deemed low at $151.53.

Concordia’s monthly loan payments were ranked as high at $272.44.

Former Lake Region students pay $77.68, considered low. Median monthly loan payments for former students at MSCTC were $109.33, while it was $123.62 for former NDSCS students.

The median monthly payments were based on an interest rate of 6.8 percent and included all federal loans borrowed by a student who graduated or withdrew in 2010-11.

The cost of higher education in North Dakota has skyrocketed in recent years, with total student debt at the Bank of North Dakota alone reaching $1.68 billion at the end of 2012.

Shirvani said the college scorecard data is evidence that UND and NDSU have avoided charging high tuition adopted by other public colleges and universities in the mid-1990s, and he expects the state’s two research universities to keep costs low. (see HERE)

“Given the state’s newfound wealth,” he said, “we would expect both our institutions to steer clear of what has become a national embarrassment with so many low- and middle-income families choosing to opt out of postsecondary educational opportunities due to the high level of debt from borrowing.”

Source : www.inforum.com

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Telling How to Make College Affordable 2013 - The California Senate introduced legislation this month. The Senate’s concerns surely include some basic facts: The cost of getting a college degree is no longer affordable to most young people, and even if they can afford college, they cannot get the general education courses they need to progress in their academic career. Major problems to be sure.

More universities are looking at blended learning – a form of distant education – or even at Massive Open Online Courses or MOOCs, as one possible solution. It’s true that to accommodate larger student bodies, the large lecture hall combined with some online activity makes sense. Indeed, some courses can as easily be taught outside the classroom or lecture hall.

Allowing students to learn when and where it is most convenient for them is extremely attractive. Given the widespread availability of technology, it is not surprising that the “cyberschool” approach is fast becoming ordinary and acceptable at high schools and colleges in America, Europe and in other developed nations.

But collaboration and cooperation between most universities really hasn’t taken hold. Last month, according to the Chronicle of Higher Education, Steven G. Poskanzer and David R. Anderson, the presidents of Carleton College and St. Olaf College talked “about how these two colleges could work together more closely in areas like the library, the colleges’ technology infrastructure, human resources and payroll, and, ultimately, their academic programs.” And they did it.

There was criticism that they could’ve done more … and it’s still early. But while this collaboration occurred between smaller universities, isn’t there an opportunity for all universities?

The motto of the modern day corporation, as Robert Logan and Louis Stokes wrote 10 years ago, was “Collaborate to Compete.” The basic idea is to determine your core strength or strengths and leverage them while finding ways to cooperate with others … to provide things that must be done but in which your organization has no special talent.

The purpose is to make your organization more competitive in the marketplace. (see HERE)

The concept has worked and gained widespread acceptance, at least in the corporate world, but this same philosophy seems not to be applied to nonprofits, local governments, or to universities.

In the California State University (CSU) system and other state systems there must be similar opportunities to lower the costs and increase efficiency and availability. And, for curriculum too. Each university, for example, has an undergraduate program full of courses that everyone should take in their first two years; and subsequently, courses that are duplicated – depending on the major – in each of the 17 universities that are part of the CSU system.

Are they each so unique that there cannot be collaboration – even if they are team-taught? And aren’t we able to find ways to have the best faculty use blended learning techniques to all the CSU student body? Of course we can.

Furthermore, the idea of logging on when its convenient for many students and asking questions whenever they need to without the formality – and often embarrassment of more traditional classroom settings – also has its appeal. And, according to many experts in the online field, the new media make lectures more accessible and even more entertaining.

that could reshape higher education by requiring the state’s public colleges and universities to give credit for online courses.

Social media, email, and texting have displaced personal contact in a way that would have been hard to predict just a few years ago. Electronic media have become the standard way of communicating, according to Glenn Hartz a professor of philosophy at Ohio State University (See HERE). “Assuming that the content is there, the course is now judged largely on how artfully and smoothly the elements meld together into a coherent, pleasing whole,” Hartz said.

If we really want to be more accessible, more affordable and more efficient at delivering basic college education to more students, we need to ask how we can collaborate, where we can work together, and determine what we can do that is so unique to our university that it becomes our basic mission.

In short, we must find where we can collaborate … and, using technology, better serve young people in our region, and our country.

Eger is Van Deerlin Chair in Communications and Public Policy Director, Creative Economy Initiative School of Journalism and Media Studies San Diego State University.

Source : www.utsandiego.com

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The budget Crisis Has Dramatically Reduced Access to Colleges - The budget crisis has dramatically

In a study released this week, the PPIC says the state cut $1.5 billion from community college budgets from 2007 to 2012, resulting in the loss of one in five courses. That has left an estimated 600,000 students peering through closed classroom doors..

What's interesting is who these students are: primarily, the PPIC says, those of lower ability.

That makes sense. The most committed, savvy students can still navigate a shrunken system. Indeed, completion and transfer rates have gone up, and students who have enrolled most recently have the most improved success rates. This is probably the result of narrowing the student population to the best prepared. Many current students would have gone to the University of California and California State University in better times (see HERE).

But California can't afford to just educate the best and brightest. It's a matter of volume. The economy demands that far more people have some education beyond high school, whether it's training in a trade or in academic skills needed for entry-level jobs. High school graduates who still lack basic skills need to acquire them. Low-wage workers who want to move up the economic ladder need to be able to do so.

reduced access to the state's 112 community colleges. Yet as the economy recovers, California will need a workforce with the skills to help businesses and communities thrive -- and community colleges are crucial to that struggle.
California has confirmed what observers already knew: The budget crisis has dramatically reduced access to the state's 112 community colleges. Yet as the economy recovers, California will need a workforce with the skills to help businesses and communities thrive -- and community colleges are crucial to that struggle.

Proposition 30 and the improving economy will mean some new money to restore counselors and courses, but not enough. Gov. Jerry Brown has proposed reforms, including more online courses and a limit on how many state-subsidized units a student can take; that would free up space for lower-skilled first-time students.

Parcel taxes, the PPIC suggests, may be an option (see HERE). Student fees, at $46 a unit, are less than half the national average; they could go up again without affecting access because fees are waived for poor students. The state needs a combination of strategies, and more of them.

California has to keep its promise of higher education for all --not just for the sake of individuals but for its economic survival.

Source : The San Jose Mercury News

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How Important the Sticker Price of College - The parents of college-age children have some pretty interesting ideas college costs. Big takeaway: the sticker price of college matters a lot.

According to an article by Scott Jaschik in Inside Higher Ed:

    Only about 16 percent of parents are sure they won’t restrict colleges to which their children will apply because of concerns about costs (although another 14 percent
said that it was “not very likely” that they would do so), the results show. Parents are also likelier to see vocational certificates than liberal arts degrees as leading to good jobs for their children — and they view job preparation as the top role for higher education.

About two-thirds of parents say they are “very likely or somewhat likely” to prevent their children from applying to certain colleges because of cost (or, well, the stated cost). So the students will never apply and never see if the school can offer a good financial aid package.

This comes from a poll of parents performed by Inside Higher Ed in conjunction with Gallup.

Richard Ekman, president of the Council of Independent Colleges, told Jaschik that the information should be “a wake-up call” to colleges.

    “We have to get people past this affordability mental block,” he said. He said that there is a “tremendous amount of aid” being offered by colleges where the sticker price has very little relationship to what most students pay. Somehow colleges have failed to make people understand this, and parents are a crucial audience to reach, he said.

That might be because the high-tuition, high-aid financial aid policies colleges have used for many years are confusing and aren’t an effective way to get low or even moderate-income students to apply to college (see HERE).

Parents want to know what college will cost them; that’s how they make financial plans and decide what they can afford. Promising them vaguely that there’s a “tremendous amount of aid” available isn’t really that helpful. Parents just want to how much they’re going to have to pay.

Source : www.washingtonmonthly.com

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