Students: Some Tips for Saving Money While You’re Still in School

87649503College is expensive. There is just no way to sugarcoat that. It’s not just tuition, room and board and textbooks. There are parking fees and printing fees. There’s pizza to buy, events to attend and t-shirts to order. Even with significant help from scholarships, grants and loans, my school bill is still nearly $10,000 a semester. This semester I was told I needed to buy an economics text book that would cost me almost $400! What could possibly make one textbook be worth $400?

In many ways, there is no avoiding the financial blows that college life will inflict, but I have compiled a list of eight really easy ways to save that might help ease the pain:

  1. Cool it on the Chipotle. I love the deliciousness of a burrito bowl as much as the next girl, but all of those fast food runs start to add up. Set a limit on the number of times you will eat fast food each week and then stick to it. Keep a few simple groceries in your room so that you will have the ability to avoid temptation when it strikes.
  2. Don’t buy your books from the bookstore. I totally get the convenience of it. I mean it’s right there within walking distance. But like I said, my bookstore tried to get me to buy an econ book for $400. Not cool. With just a little time management and advance preparation you can save HUGE amounts by buying your textbooks online. And that brings me to number three …
  3. It may not have to be the exact edition your professor is using. I am taking a constitutional law class this semester. The required text was the most current edition and it was over $200. I got on Amazon and bought the same book just a few editions removed for only $5. I mean, let’s be real, when was the last time the constitution changed? For the most part, “new” editions of text books are the same material just moved around a little.
  4. No more Starbucks. I love Starbucks. I mean, I love it a lot. The frothy goodness of a latte is good for the soul, but it’s also $5. Just like with the fast food runs, those pumpkin spice lattes will sneak up on you and before you know it you’ve spent $250 in one semester. (True story from my life – and no I am not proud of that.) During this season of your life, you may need to forget you ever heard of Starbucks. The lattes will still be there later when you can actually afford them.
  5. Find out where you can get a student discount. Local businesses love college students. Many places will give discounts or even free things if you just flash your student ID. Ask around your school and keep your eyes open in the local shopping venues. In addition, many national brands offer discounts to students — especially in the areas of electronics and software. And don’t forget to check into good student discounts for your automobile insurance!
  6. Don’t fall into the trap of online shopping. I know, it is so easy. You don’t even have to get out of bed. They’ll deliver it right to your door. Essentially online shopping is the greatest invention since, well, Starbucks lattes. Because it is so easy, online shopping has cost me big bucks in the past. Set a budget, tell your roommates, have someone tackle you when you pull up the Macy’s web site. Whatever you need to do, do it. Shopping therapy is not the way to get through the stress of college.
  7. Take advantage of the campus facilities. My school just built a big, beautiful recreational center and it is totally free to students. I mean kind of free… we do pay for it in our tuition. That’s the point, though; part of what we pay for in our school tuition are the great facilities and activities that our school offers. Take advantage of those rather than going out and spending more.
  8. Go to class. Okay, technically this doesn’t save you money. But it keeps you from wasting the money you are already spending. And mentally, going to class helps you learn to assign value to the investment you are making. You are paying for this class. Skipping it is like setting fire to money.

Most importantly, enjoy your time in school. Life is expensive, and college is kind of like a trial run on life. Learn how to budget now and “real life” will be much easier when the days of ramen noodles and wearing leggings as pants are gone.

Paige Ferise, a sophomore at Butler University, is interning in the Indiana Chamber communications department this fall.

Timeless Tips: I’ll Never Outgrow This Advice for College Grads

It was May 2000, I was graduating from college and I was scared to death about the future.

That period in my life was the best of times and the worst of times, as they say.

While an exciting new chapter was ahead, a painful one was underway. My dad recently had been diagnosed with cancer. There was a chance he wouldn’t be able to attend my graduation ceremony – the person who, along with my mom, had encouraged and supported me every step of the way. They cultivated from childhood a passion for learning.

Just when I thought there would be an empty chair in the crowd when I accepted my diploma, things started to look up.

My dad, weak from chemotherapy and radiation but beaming with pride, watched me graduate after all. And the following month, a phone call I made to the Indiana Chamber would change my life forever.

I inquired if there were open positions. There was one. And on June 26, I began my 14-year journey.

What a ride! I’ve honed my craft. I’ve learned from peers about the business world and – equally as important – about friendship. Beyond these doors, I’ve relished my role as a mentor to my nephews and niece as they’ve grown and now to my children.

So when I read an article today titled Five Mistakes College Grads Make When Starting Careers, it inspired me. I didn’t expect it to. After all, it was written to guide workforce rookies. But this veteran gleaned wisdom from each tip.

Do you tend to stay in your comfort zone? Do you always follow the rules? Are you intimidated by senior management? Don’t be, says the author. His anecdotes add a personal touch.

I for one will try to stop worrying so much about failing (mistake No. 5) whether it’s at work or at home (you never know, I could be the next Master Chef). It’s never too late to put fear in its place.

Complete College on Time with 15 Credits Per Semester

On-time graduation rates at public Indiana colleges and universities are staggeringly low. Only one in 10 students at two-year colleges finish a degree on time, and only three in 10 students finish a four-year degree on time, according to the Indiana Commission for Higher Education’s 2014 College Completion Reports.

The reports provide a robust, comprehensive picture of student success at each public college and university in Indiana. They include data on transfer and part-time students and disaggregated data by race, ethnicity, and socioeconomic status to focus attention on persistent achievement gaps.

Statewide, there’s a 24-point completion gap at two-year colleges between the highest-performing racial/ethnic group and the lowest-performing group. At four-year colleges, the gap is 31 points. Additionally, less than 4% of Pell grant recipients graduate on time from two-year colleges. About 17% of students receiving this need-based grant graduate on time from four-year colleges.

Why do these low graduation rates matter? First, graduating on time yields greater returns for students by lowering their cost per degree. The estimated cost of an additional year of schooling to a student is $50,000 in tuition, fees and lost potential income. What’s more: Indiana college graduates borrow over $27,000 for a four-year degree. As loan default rates rise, so does the importance of cutting college costs. The surest way to lower a student’s cost per degree is to finish sooner.

Second, institutions and the state bear significant costs for extra semesters as well, in lost productivity and additional financial aid awards. According to the College Completion Reports, four-year schools spend about $62,000 for each degree produced. About 30% of students don’t complete a four-year degree within eight years, adding to productivity losses for institutions.

Of course, for many students who are working or raising families, attending part-time may be the best option. Unfortunately, as students take additional semesters and hit state and federal financial aid limits, their probability of completing the degree declines. In fact, full-time students are six times more likely to graduate with a four-year degree than part-time students. And students who invest in their education but do not receive a diploma bear the greatest lost, reaping nearly zero return on their investment, according to the Indiana Commission for Higher Education’s Return on Investment Reports.

Fortunately, the state has made great strides on both policy and institutional levels to improve completion rates. For instance, thanks to recent reforms, state financial aid now funds completed credits rather than attempted credits to incentivize completion.

Additionally, credit creep legislation cut the number of credits per degree to 120 for four-year degrees and 60 for two-year degrees. This means students who take 15 credit hours per semester set themselves up to finish on time.

As we work to combat student loan default rates and the rising costs of college, we must continue to ask how we can use dollars more efficiently. Tackling graduation rates, and ensuring those who invest in their education complete it in the shortest time possible, is imperative to minimizing those costs.

To read institution-specific data in the 2014 College Completion Reports, visit the Indiana Commission for Higher Education’s web site.

Hannah Rozow is a senior at Indiana University – Bloomington and a student representative on the Indiana Commission for Higher Education.

Higher Ed: Putting a Dollar on Degrees Off to a Slow Start

College costs are the theme today. We've written before about the desired $10,000 degrees in Florida. The options appear to be limited with few takers thus far at the 23 state colleges (formerly known as community colleges). The savings for students would typically come at the end of their academic experience. The Sun-Sentinel reports:

A highly touted program to offer $10,000 college degrees is off to a slow start in South Florida.

The region's three state colleges accepted a challenge from Gov. Rick Scott in January to offer low-cost degrees this school year in fields where there is high job demand. But the degree options are limited, the eligibility requirements are often tough and the marketing efforts have been light.

Broward College opened the program up a month ago, but so far no one has signed up for any of the 80 open slots.

"We've gotten some interest. We haven't gotten any applications," said Linda Howdyshell, Broward College's provost. "We just started getting the word out.''

Palm Beach State hasn't started accepting applications yet. The college is still determining eligibility requirements and only plans to offer the $10,000 degree in one field, information management.

Both colleges have decided against offering discounts in nursing, one of the most popular high-demand degree fields.

"We only offer three bachelor's degrees, and the nursing one is extremely expensive," said Grace Truman, spokeswoman for Palm Beach State. "We felt the information management degree was the most workable."

Randy Hanna, chancellor for the state college system, said it's too early to measure the success of the program. He and a spokeswoman for Scott said they were pleased all 23 community colleges that offer bachelor's degrees agreed to designate at least one $10,000 degree.

"You have to have time to structure programs that meet the needs of students and the local workforce," Hanna said.

The $10,000 price tag is about $3,000 cheaper than the normal cost of tuition and fees for a bachelor's degree at state colleges, formerly known as community colleges. It's less than half of what four-year public universities charge.

Each college determines how to derive the $10,000 cost. Some schools, including Indian River State College, require students to take dual enrollment classes in high school to qualify.

At Broward College, students can sign up now, but they won't see any savings until their final year. Students must pay full tuition for their first three years, which totals about $10,000, and then they get their fourth year free.

Attainment Goals Aim to Bridge Skills Gap

Jamie Merisotis of the Lumina Foundation recently spoke with the Indiana Chamber Foundation Board of Directors. He discussed Lumina’s main goal – to increase the proportion of Americans with high-quality degrees, certifications and other credentials to 60% by the year 2025.

In the projections of what the U.S. will need in reaching the 60% goal, the number of degrees that would need to be produced between now and then is 23 million. Of those 23 million, estimates are that 10 million are credentials below the Associate's degree level.

Fifty-five percent of all Indiana jobs will require a post-secondary credential by 2018; right now, only 34% of working-age Hoosiers hold an Associate’s degree or higher. Between now and 2025, Indiana will need to produce about 600,000 more credentials than we are on the path to producing to reach the 60% goal.

IndianaSkills.com is committed to sharing current labor market data, and one main goal is to show job seekers what jobs are in demand in order to begin bridging this “skills gap.” These attainment goals are achievable with the good work of organizations like Lumina, the Indiana Chamber of Commerce, state workforce agencies and many others.

Caution Required in College Ratings Plan

Yes, the explanation gets a bit technical. But the point – although changes in the current system are needed, getting a valid set of measures in place is not going to be easy — is valid in this Brookings analysis of President Obama's announced college ratings plan. Current data gaps are only one part of the challenge.

The President’s plan, which he is touting on a two-day bus tour through New York and Pennsylvania, proposes that the Department of Education develop a new rating system that will judge colleges based on accessibility for low-income students, affordability, and outcomes, including employment and earnings.  The ratings will be developed over the next year and will ultimately be made available to students shopping for college on the White House’s College Scorecard.
 
There is clearly a need for more and better information on college quality. The current lack of transparency has created a highly dysfunctional market for higher education in which students can choose from a wide variety of institutions but often have access to better information about the amenities colleges offer than the quality of their academic programs.  Consequently, colleges compete on measures that factor into popular rankings such as average SAT scores and student-faculty ratios rather than quality and price.
 
Expanding the College Scorecard is a worthy strategy on its own, but President Obama has proposed to go a giant step further and eventually tie the availability of financial aid to the new ratings.  Students attending highly rated institutions would receive larger Pell grants and more generous terms for federal student loans. Institutions would receive a bonus grant based on the number of Pell-eligible students they enroll and graduate.  As a result, institutions would have an incentive to recruit and graduate more low-income students, and low-income students would have an incentive to attend higher quality institutions.
 
If the problem in the market for higher education is a lack of information, why does more information need to be accompanied by top-down accountability from Washington rather than the bottom-up, market-based accountability produced by the information itself?  Congressional Republicans have reacted to the president’s plan with fears of “price controls” and “standards set by Washington bureaucrats.”  But these objections miss an important point about higher education: because taxpayers are footing the bill for a significant fraction of the nation’s investment in higher education, we cannot rely entirely on consumers to incentivize institutions to operate efficiently, innovate, and generate good student outcomes.
 
But getting from a laudable set of principles to a workable set of policies is going to be hard work.  The first task is for the Obama administration to develop a set of measures of college quality that will ultimately be accurate enough to use for accountability purposes.  This is not possible with existing data, with notable shortcomings including the fact that graduation rates are only calculated for first-time, full-time freshmen (who comprise a small share of students at many institutions) and a federal law banning the government from connecting education and earnings data in order to examine graduates’ success in the labor market.  These problems are fixable, but will take significant effort and, absent a back door to earnings data, Congressional action.

States Turning Tuition World Upside Down

Recently, Oregon was the first state to propose a "Pay it Forward" college tuition plan. While many questions remain on whether the dramatic proposal is valid, that isn't stopping a legislative leader from another part of the country from recommending further study of the concept. NJ.com reports:

Under the plan, New Jersey public colleges could waive tuition and fees for students who pledge to give the state a portion of their salaries after graduation.

In theory, the idea would reduce the amount of loans students take out to go to college.

"When kids are getting out of college, they’re buried in debt," Sweeney said. "It gives another pathway to higher education. As someone who didn’t go to college and recognizes how fortunate I am that things worked out for me, you don’t want to leave things up to luck."

New Jersey’s public colleges have some of the highest tuitions in the nation. For example, the average in-state Rutgers University undergraduate will pay $13,499 in tuition and fees for the 2013-14 school year. Once room and board are added in, the total cost of attending Rutgers will be $25,077 for students living on campus.

New Jersey would not be the first state to explore the idea of delaying tuition payments.

On July 29, the governor of Oregon signed a bill to appoint a commission to study a "Pay it Forward" plan and recommend whether the state should institute a trial program.

Although details have not been finalized, proponents of Oregon’s plan have called for the state to waive tuition for students who agree to pay 3 percent of their incomes over 24 years.

Supporters say the program will help alleviate the nation’s growing student loan problem since many graduates leave college encumbered with tens of thousands of dollars of debt before they ever find their first job.

But critics say the "Pay it Forward" idea has too many holes.

While students would get free tuition and fees while they are in school, they will still have to take out loans to cover the cost of living on or off campus, buying books, paying for transportation and other costs that often account for more than half of the expense of attending college.

It is also unclear if asking students in Oregon to repay 3 percent of their income for a quarter century would cover the cost of running a college or if the schools would have enough cash to operate in the first few years of the program. Critics also questioned whether the state would be able to keep track of the incomes of students who move out of state or out of the country.

Guest Blog: College Course Costs Not Always What They Appear to Be

Budgeting for college can be tricky business. Students and families must take into consideration tuition rates, living expenses, books, transportation and more, but even the most diligent financial planners cannot be fully effective when undisclosed costs are imposed.
 
This summer, I enrolled in an online class at Ivy Tech to fulfill a requirement before fall semester. As Ivy Tech reports, undergraduate in-state tuition is $116 per credit hour, so I anticipated a bill of roughly $350 for the course.  However, including fees and homework access, the course has cost roughly $550.
 
Where did the extra $200 go? Roughly half went to mandatory fees including a technology fee and student life fee, which are listed below the tuition chart on Ivy Tech’s web site. The other half purchased access to MyMathLab, an online portal that houses required homework and quizzes. This course is not $116 per credit hour but closer to $183 … and that doesn’t include the book or exam proctor fees.
 
Unfortunately, students (at most, if not all, colleges and universities) are all too familiar with these additional, often hidden, costs of school, both institutional and course-specific. While institution-wide mandatory fees are generally listed on a bill statement, they are not always included in the per-hour tuition figure. Furthermore, course-specific and professor-specific costs – such as access to homework and class participation clickers – are often unknown until the first day of class. For many students, finding a couple hundred more dollars for each class simply is not a financial possibility.
 
But Indiana colleges and universities can make a few minor changes to assist students in their financial planning. First, institutions must make tuition and mandatory fees more transparent by reporting them as one figure. While most institutions combine tuition and fees for estimations of annual cost of attendance, fees are often left out of per credit hour figures, making the tuition rate misleading and confusing to students. Second, professors should report any additional fees required for their classes at the time of enrollment to allow students to make the best financial decision for them.
 
As college costs continue to rise, students and families must have accurate and complete information to effectively budget. Transparency in all fees will help them financially prepare for school.

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Hannah Rozow is the student representative on the Indiana Commission for Higher Education. A senior at Indiana University in Bloomington, she is pursuing a double major in economics and political science with a minor in Spanish.

GUEST BLOG: Computer Science Education Reaching Critical Mass

Graduation season is always a time for reflection in higher education, and this year is no different for those of us who prepare students in one of the fastest growing fields in the country: Computer science.

With more than 60 students graduating this year from IUPUI with either a bachelor’s or master’s degree in computer science, we’re pleased we are making progress in meeting a critical need for trained computer scientists in central Indiana. Even so, it is a constant challenge to match the pace of the job creation in the field. It’s estimated there are three computer science jobs available for every one new graduate, a departure from the environment of underemployment many new college graduates are facing today. The “big picture” scenario of the industry clearly illustrates we have a much higher hill to climb before declaring success.

The good news for students who are considering a computer science degree is that the facts are in your favor. Jobs are plentiful and pay well compared to other fields. Every imaginable industry can use the problem-solving and critical-thinking skills of a trained computer scientist, and the field offers a great deal of marketability and job security for graduates. Consider these additional facts:

  • The U.S. Bureau of Labor Statistics lists the median annual salaries for computer scientists at more than $97,000 and starting salaries for computer software engineers in Indianapolis with a bachelor’s degree at more than $50,000.
  • Occupations requiring a bachelor’s degree in computer science are growing at more than 20% annually.
  • Computer science jobs account for 70% of the annual job growth for all STEM (Science, Technology, Engineering and Mathematics) fields.

Despite these powerful and tangible benefits, the fact remains that universities across the country, not just the School of Science at IUPUI, still find it challenging to expand their computer science enrollment rosters. The field faces an identity crisis. The misguided image of computer scientists as introverts hunkered down in a dimly lit room for days at a time is no longer reality. Today’s computer scientists are professionals from all races and genders and represent an integral part of every industry looking to grow with the help of technology. Every computer scientist has the ability to impact a variety of fields, and the versatility of such a degree can open up immense possibilities. Computers are simply tools to help scientists think smarter and work more efficiently when solving complex problems. Until this distinction is made, most students are drawn to other majors that have a more clear social relevance and easily identifiable job description.

So why is there such a gap between the number of computer science students and the number of professional computer scientists?

Computer science has not been integrated well enough yet into middle and high school education requirements. K-12 students rarely have options to pursue computer science courses that will give them college credit while also allowing them to expand their knowledge and interest in the field. Not all students are expected to become biologists, but biology is a required course. The same emphasis should be applied to computer science courses, but not just those that focus on computer applications. We need to support students in efforts to create technology, not just learn how to use it. Just because students use technology everyday does not mean they understand it. Computer scientists are trained to understand the how and why of information technology, not just its functionality.

Until we approach the educational imperatives this field requires, we will continue to play catch up in the challenge to fill these jobs and to help our technology-dependent industries innovate and grow. As a result, central Indiana’s tech sector and other businesses are at a disadvantage they cannot afford.

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Shiaofen Fang, Ph.D. is a professor and chair of the Department of Computer and Information Science at Indiana University Purdue University – Indianapolis (IUPUI).

GUEST BLOG: Women’s Colleges Provide Advantageous Learning Environment

The following is a guest post from Dottie L. King, Ph.D., president of Saint Mary-of-the-Woods College:

At Saint Mary-of-the-Woods College (SMWC), we affirm that a women’s college is more than relevant today. In this single-gender environment, the lines are purposefully blurred between college preparation and preparation for life making a women’s college a wise and practical choice.
 
According to the Women’s College Coalition, graduates of women’s colleges tend to hold higher positions in careers and obtain a larger percentage of advanced degrees than women who attended coeducational schools. Because women’s colleges emphasize individual thought and student leadership, graduates have higher self-esteem, confidence and aspirations that make these outcomes possible.
 
Opportunities at SMWC for the development of leadership skills in and out of the classroom are limitless, preparing students for the wide range of responsibilities they will undertake long after graduation. Our female students fill all student leadership roles on campus. They lead classroom discussions, student government, laboratory experiments and community-based initiatives. Having consistent access to a wide variety of successful female role models of faculty, administrators and alumnae tends to increase the aspirations and career achievements of female college students. 
 
Additionally, student participation in the STEM fields (science, technology, engineering and mathematics) is also a place where SMWC and many other women’s colleges excel.

In 2010, the American Association of University Women issued a report titled “Why So Few?” detailing women’s under representation in the STEM fields.  If girls grow up in an environment that cultivates their success in science and math, they are more likely to develop their skills as well as their confidence and consider a future in a STEM field.

We strongly agree that learning environment influences an individual’s mindset and that is one of the reasons we believe that a women’s college is an intelligent and rational choice for those who seek a supportive growth environment.
 
The results of the National Survey of Student Engagement (NSSE) and the Women’s College Coalition indicate students who attend a women’s college are:

  1. enrolled in the traditionally-male disciplines of math, science, and engineering in higher percentages
  2. more likely to experience high levels of academic challenge
  3. promote a multifaceted understanding of diversity
  4. engaged to a higher degree in active and collaborative learning
  5. experiencing frequent and extensive interaction with faculty
  6. participating in activities that integrate their classroom and outside of classroom experiences more than their counterparts at coeducational institutions
  7. reporting greater gains of self-confidence and self-understanding, and
  8. more likely to graduate and more than twice as likely as female graduates of coeducational institutions to earn doctoral degrees. 

In our 171-year tradition of commitment to the education of women in our campus program at SMWC, graduating students must be proficient critical thinkers and effective communicators. We want students to conceptualize, apply concepts, analyze, synthesize and evaluate as the preliminary to reaching to a conclusion or a judgment.
 
We strive for our students to learn about the integrity of personal power through the friction of intellectual discovery and accomplishment. Our goal also is to inspire our students to examine issues and events from ethical and spiritual perspectives. It is not our role to tell them what to think or what informed opinion to advocate, but it is our responsibility to provide an environment in which they can explore analytical skills from multiple perspectives.
 
So, yes, we are extremely proud of the role of women’s colleges and SMWC. Specifically, we demonstrate our ability to remain true to our mission while evolving in response to an ever-changing society. For those who seek a progressive learning environment with the maximum potential to fully develop their spiritual, intellectual and leadership abilities, we confidently suggest that a women’s college, such as SMWC, is a vibrant, powerful and providential choice.