Well it has finally happened. The unsustainable Texas Top 10% rule has finally been changed. With top state universities like the University of Texas now forced to automatically accept 86% of their incoming class under the Top 10% rule it was time for a change.
Having helped literally hundereds of students I think that this is a huge step forward. Why? Because it just might cause many high school students to actually research what colleges will be the best fit for them. Far too many top students apply to only one or two colleges as a result of the Top 10% rule.
Why do SO many students do so little work researching their best choices for college? Simply put because they are guranteed admission.
So the new rule will guarantee that starting with the class of 2011, the top 8% of high school graduates will automatically be admitted to the University of Texas. This change is expected to limit the number of students automatically admitted to approximately 75%. I wouldn’t call this a perfect change, but a necessary change.
What should a family do? Get busy researching what your student wants to study, what schools offer what they want, and what schools will they have a chance to get into?
A great option for sophomores and juniors is to come to one of our upcoming college planning workshops. Click here.
Do you have a senior student that needs guidance with their college applications? We’ll they have about a month to complete their applications. For the first time we are offering our “College Application Bootcamp” to the public. For more information click here:
Here’s what your student will learn by attending this AWESOME workshop:
-5 secrets to completing each university application perfectly - in 50 minutes or less!
-The ’secret’ formula schools use to grade your college applications - revealed! And how to improve your chances of getting in - even at the last minute;
-10 steps to planning your perfect career;
-SAT & ACT myths dispelled, as well as how to improve your score by at least 100 points without studying; Also, how to take the SAT & ACT for ‘free’.
-How to decide which school is right for you. We’ll give you our 7 step evaluation process that works every time. We’ve never had a student that used it drop out or decide to switch colleges;
-The top 9 admissions resume tips that your guidance counselor doesn’t have the time to tell you;
-Essay writing tips from Ernest Hemingway, Larry the Cable Guy, and Harvard Admissions Officers;
-How to get a killer letter of recommendation, and have the teacher thank you for asking them to write it;
According to the today’s USA Today, college students
are racking up credit card debt to pay for
their education.
30% charge their tuition compared to 24% in 2004.
92% of undergrads charged textbooks, school
supplies and other educational expenses compared
to 85% in 2004.
Marie O’Malley, director of consumer research
for Sallie Mae, thinks families are underestimating
college costs and opting for more expensive
credit card debt in lieu of applying for cheaper
financial aid.
“Too many students are at risk of overpaying for
college by pulling out credit cards…instead of using
less-expensive financial aid…” said O’Malley.
Wow! Does this sound familiar?
Brannon and I have been warning about this,
like a broken record, for years.
Why don’t parents apply for financial aid? Put another
way, why do 53% of all eligible families not bother
to apply?
One reason is intimidation. You “need a PhD” to
figure out the FAFSA, according to Secretary of
Education Arne Duncan. The forms are annoying
and a pain the in the rump, with multiple land-mines
to stumble on and blow up all chances of aid.
Another reason is that parents put off their college
planning until it’s too late. The best time to start
the college planning process is the second half
of sophomore year, junior year at the latest.
What are the consequences to your children if
you don’t take this seriously?
One graduate who maxed out his credit cards
to pay for college fretted, “I wonder if I’ll ever be
able to get a home…with the debt I have now and
the marks against my credit.”
We’re running Four free college funding workshops
this month. Response to my emails and our
ads has caused attendance to spike.
Brannon and I were chatting about a client last week and I was commenting about how my client said that, “They were going to wait and see what happened with their financial aid” before they executed our college savings plan. While I was talking with Brannon he said something very interesting. He said, “Hope is not a plan.”
Long after we discussed the client, I kept thinking about what Brannon said….”Hope is not a plan.” If you hang out with Brannon you realize that he’s a really sharp guy. I didn’t think much about what he said at first, but it stayed with me for a while.
Here’s my problem. It seems like no one, and I mean no one wants to take ownership for anything. They don’t plan to do anything. They don’t plan to save, they don’t plan to make money, they don’t plan the next two, three, or four weeks of their lives, let alone the next few years of their lives on this planet.
I don’t mean to get all philosophical or anything but I’ve recently noticed that people have become completely unable to make a decision in their lives. They are hopeless. They are paralyzed. They are frozen. They just can’t move.
Is it the economy? Is it the uncertainty about the future? Is it the news? I don’t know exactly what it is. But I’ve got a few clients that absolutely refuse to make a decision. Let me give you an example. Three years ago I presented a client with a plan to pay off credit card debt, pay off their car, pay off a credit line, and pay for college for their three kids. Well, the good news is they did part of it. The bad news is that they only took care of half of their cash flow challenges. Guess what they told me? They told me, “We’ll wait to see what happens.”
Well I heard from them yesterday and they are in bad shape. One kid has graduated from college, one is a sophomore in college, and the other is a freshman in college, and THEY ARE COMPLETELY OUT OF MONEY!!! This is AFTER I got a $360,000 bill down to $200,000.
Now they are out of money, the equity in their house is non-existent, their business is in the tank, and they now have to try to borrow the money via PLUS loans. I say try because I’m not sure that they can even borrow the money.
Here’s the irony, if they had just listened and executed the plan….their cash flow would have been LESS than it is now!!!
How about you? Are you hoping for a great 2009?
You better not be! Don’t hope that things will work out. They almost never will work out they way that we want without doing something.
Being aggressive in getting your business taken care of beats out hope every single time.
Make a plan, execute the plan, and make 2009 the best year ever.
Last week, The Wall Street Journal carried a story, “Harvard’s Endowment Drops 22% in 4 Months.”
It seems that even the mighty Harvard isn’t immune to the woes afflicting the financial markets. Harvard announced that it would curtail spending and look at other ways to cut costs.
The Harvard endowment, the biggest of any university, stood at $36.9 billion as of June 30, meaning the loss amounts to about $8 billion. That’s more than the entire endowments of all but six colleges, according to the latest official tally.
It’s unconfirmed, but I have it on good word that they’ve taken the drastic steps of suspending their afternoon teas at the Harvard Club!
It’s unclear what effect our recession will have on grants, scholarships and other financial aid at colleges across the U.S.
Here’s the good news:so far, many institutions have indicated that they will do everything possible to maintain, or even increase, student aid!
If you have a student who will be enrolled in college anytime between now and the next few years, you need to roll up your sleeves, dig in and research which schools are offering money.You also should identify the colleges that are not doling out the dollars anymore.
Yes, some schools have more money than others.
Wouldn’t you like to know who has what BEFORE your student applies?
Attend one of our final college funding workshops next week and I promise you’ll learn a heckuva lot of “inside” information that you’ll never find out anywhere else.Info that you can use to save tens of thousands of dollars in college costs.
I have to say that we were completely overwhelmed with the response from yesterday’s radio show. The College Planning Power Hour is on Sundays at 5PM on 1070AM.
College insiders have resumed their radio show, giving parents priceless advice to help them save thousands.
While they’ve saved thousands of families too much money to count, local college planning experts say that’s not going nearly far enough. After speaking in front of tens of thousands of parents over the last five years local college planning experts will begin broadcasting their message using 10,000 watts of power since, as Jeff Farmer says, “One man can only shout so loudly, we need to get the word out that people can save more on college.”
If you have never had the privilege to see Jeff, Jeremy, or Brannon in person conduct one of their famous and controversial college planning workshops, this week is your chance. They are making personal appearances at 2 workshops this week at 7:00 PM at the Sugar Land Library, 550 Eldridge in Sugar Land, and the Cypress Creek Community Center and Church (open to the public), 6823 Cypresswood Drive in Spring.
“We have the perfect storm brewing right now, a tanking stock market, an economy in a recession, and a record number of applicants creating the most difficult college admissions in history. However, for millions of families the need to send a student to college is not going away. It’s shocking that so many parents won’t even be able to afford for their kids to go to school in the next few years, so many good students won’t be able to go, and many students will have to drop out, unless they know the inside information that the colleges don’t want given out,” says Jeremy Farmer. He then adds, “It’s not even a matter of affording the best school….it’s being able to have ANY money left at all these days. Brannon Lloyd was astonished when he first started talking to parents and realized how much bad information was floating around-some of it in the media, “It’s amazing how many parents are desperate for this kind of information. I really don’t know what to say, except that I’m totally blown away.”
The College Planning Power Hour broadcasts Live on KNTH AM 1070 Sundays from 5-6pm.
To register or view other dates, please click here.
We are also on Itunes!
The guys have started adding their previous shows to iTunes as a podcast. From the iTunes store search “College Planning Power Hour.”
We’ve been pretty busy here at College Planning Central this past week - seems like every workshop we run books up solid this time of year.
If you’ve been on checking our site for any length of time, but haven’t yet had a chance to see either Jeff, Brannon, or yours trulyup close and personal in a workshop, don’t put this off any longer.
I was chatting with a fella who took months before he decided to attend a wokshop.It got me thinking.
Sometimes prospective workshop attendees view my ads month after month, see the emails, read the articles published by us, but don’t do anything although they know they need help.Then they rush around at the last minute.I think I know the reason.
It’s because they think there’s a “catch.”They don’t see how a three guys who put themselves out there, week after week, promoting their business to the public, can possibly be doing anything other than selling something at these “free” workshops.
Well, here’s a confession – we do get an occasional client out of our workshops!Yes, it’s true.
But that’s not because we are “selling” anything there.
In fact, we have a strict “no-pitch” policy at each of the locations we conduct - each location is a non-profit or educational setting:community centers, libraries, colleges, high schools…places like that.
We’re giving the workshops as a community service.Teachers, administrators, students and college advisors show up at our events. So do doctors, lawyers, entrepreneurs and candlestick makers.
None of them receives a sales pitch.Zero.
In fact, there are plenty of folks who attend our events who we could help, but specifically choose not to.That’s because we’re extremely busy this time of year and can afford to cherry pick the ones who we think we’ll enjoy working with!
So yes, occasionally folks at workshops will approach us and, ultimately, become clients.Of course that happens - duh.
But if you’re worried about having your arm twisted or being hounded to hire us, you can relax.
See, here’s what really goes on behind closed doors.
We educate you on the ‘rules of the game’ of college tuition discounts, scholarships and financial aid.
We give clear, tangible “nuggets” of information that you can implement right away to slash thousands of dollars off your college costs,
including:
*The “secret” way to double or triple your eligibility for free money for college, regardless of your income;
*How the Department of Education calculates how much aid you’ll qualify for;
*and a lot more (this email is long enough already!)
But I promise, there’s absolutely no pressure to sign or pay for anything on the spot.
So if you’re afraid that we’re selling timeshares or used cars, chill out!Forget about that stuff, you have more important things to worry about, like the high costs of college!
Don’t be shy, come out to one of our workshops!You could walk away with information that could be literally worth tens of thousands of dollars!
Due to various calls and emails wondering about our Radio Show:
Our sponsor, KNTH 1070 AM, is airing the Aeros and Comets games during the Sunday @ 5pm hour that is usually reserved for the College Planning Power Hour Radio Show.
We look to continue on with our show, according to KNTH on the 2nd Sunday in December, the 14th, 2008.
Thank you for your inquiries and your time,.
Sincerely yours,
College Planning Power Hour Staff.
Jeff, Brannon, and I constantly talk about how even millyunaires (yes, I know how to spell it, but that word gets spam-filtered easily….) should apply for college financial aid, even if they think they won’t qualify.
Before I get to the story I read today, let me give you a little background on college admissions.
Background that you’ll never hear anywhere else.
Are you familiar with US News and World Report?
This magazine is at the top of the heap when it comes to ranking colleges and universities.
Many admissions heads obsess over their rankings, particularly the colleges in the fourth, third and even second tiers, trying to figure out how to move up in rankings.Better rankings equals more applicants, more enrolled and the ability to charge higher tuition and fees.
Like it or not, that’s the way it is.
Many ambitious, upwardly-mobile colleges will do all sorts of things to improve their standing with US News.
Some offer “bribes” to good students by way of merit scholarships to pry them away from Ivy League or other highly competive schools.This funding is doled out without regard to the family’s financial picture.And it’s heaped upon students with grades and scores that are not “Ivy-caliber”, too!
Now check out what Baylor University did.Apparently, the SAT’s of last year’s incoming freshman class was worse than the previous year’s.This would look bad in US News.
So Baylor did something creative to counter their impending drop in the rankings.They bribed their accepted, incoming freshmen to re-take the SAT!
Yes, you read that right!Baylor offered a $300 book credit to any freshman who sat for the SAT again.And, if the student increased his or her score by 50points, there was another grand in it for them, per year!About 177 qualified for even more scholarship funding.
Of course, Baylor denies that they created their SAT contest because of the US News rankings.
My point is the college financial aid game works in ways that non-insiders can’t possibly understand.Even parents who make “deep” six figure, or higher, incomes can save thousands off college costs, if they know the rules of the game.
So take away two points from this letter - do your research about what schools over this kind of aid (and what their standards are) and do NOTblow off applying for financial aid if you think you earn too much money, because you never know!
Best,
- Jeremy
P.S.Want more info on “How to Pay for College Without Going Broke or Raiding What’s Left of Your Retirement Portfolio?”We’ve got more college funding workshops this month and they’re than 77% booked up.
P.P.S.You can check availability and locations at:
Here’s what is going on locally here in Texas. Things are getting ugly. So far the politicians solution is to make it harder to get help, instead of actually fullyfunding the program in place.
July 25, 2008
Source: The Dallas Morning News
Holly K. Hacker
Jul. 25, 2008 (McClatchy-Tribune Regional News delivered by Newstex) — When it comes to qualifying for the state’s biggest pot of college financial aid, being poor may no longer be enough.
The Texas Higher Education Coordinating Board forwarded a plan to lawmakers and Gov. Rick Perry on Thursday that could fundamentally change the design and mission of the TEXAS Grant program.
It would favor students who excel academically, shifting priority away from those with the greatest financial need.
Kimberly Anderson of Dallas fears the proposed changes could prevent some students from going to college. The 2008 graduate of CarterHigh School is headed to the University of Texas at Austin in the fall and plans to pay with grants and scholarships.
“I understand they don’t want to waste the money,” she said. “I think it’s still fair to go off needs.”
Thursday’s move paves the way for debates in the coming legislative session about spending priorities for higher education.
Since 2004, the state hasn’t provided enough money to cover all students eligible for the grants, which provide about $5,200 a year — enough to cover average tuition and fees at public universities.
For the coming school year, the coordinating board estimates there will be enough grant money for only 28,000 of the 70,000 new students who qualify.
Thursday’s action is a move toward deciding which students deserve the money most.
“It is not a good message to send to poor students that by virtue of the fact you’re poor, you’re going to get aid,” said Raymund Paredes, the state’s higher education commissioner. “Students from all income classes should be sent the message that you should be expected to perform as well as you can.”
But state Sen. Rodney Ellis, D-Houston, said the changes could hurt the very students the program was supposed to help.
“Don’t be in a position where we end up being penny-wise and dollar-foolish. The plan is working,” said Mr. Ellis, who led efforts to create TEXAS Grants in 1999.
Under current rules students must take a college-preparatory curriculum in high school to qualify for the grants. The vast majority of Texas students meet that standard today.
The proposed changes come at a time when political and business leaders are pressing public universities to enroll more low-income and minority students — people who make up a growing share of the state’s workforce.
The bulk of TEXAS Grants goes to students whose families make less than $40,000 a year. Three-fourths of recipients are minorities.
Last year, the Legislature ordered a review of state aid programs to make sure money is spent efficiently. The coordinating board hired a private consultant to come up with recommendations.
The consultant recommends that to receive TEXAS Grants, students either score 1350 out of 2400 on the SAT or 18 out of 36 on the ACT; graduate in the top half of their high school class; or complete the state’s most rigorous high school curriculum.
Dr. Paredes offered an even tougher set of recommendations Thursday. They include requirements that students either score 1500 on the SAT or about 21 on the ACT; graduate in the top 30 percent of their high school class; or graduate high school with a B average.
While board members voted to send the consultant’s report to the governor and lawmakers, they didn’t expressly endorse it. Nor have they endorsed Dr. Paredes’ recommendations. Rather, several board members said they need more information on how the proposed changes would affect lower-income and minority students.
Board member Robert Wingo of El Paso said more study is needed “so we are not putting the very students we’re trying to help at risk.”
The possible changes come as tuition at four-year public universities keeps rising in Texas, and as students are relying more heavily on loans to pay for college.
Tuition and fees at four-year public universities have risen about 50 percent since 2002, according to a Dallas Morning News analysis that adjusts amounts for inflation. The charges have risen as the Legislature has allowed state funding per student to drop and authorized campuses to make up for the shortfall by setting their own tuition.
And TEXAS Grants don’t begin to cover the total cost of attending a four-year public university in Texas — add in books, room, board and other expenses, and the total averages $17,500 a year.
Keshav Rajagopalan, student government president at UT-Austin, said adding some academic standards makes sense, but the consultant’s report leaves out a key issue.
“There is nothing that talks about actually funding these programs,” he said. “You can’t just say we’ve got programs and then not put money toward them.”
Coordinating board officials said any changes in eligibility wouldn’t take effect for several years.
An advisory group of financial aid experts and others helped prepare the report, though not all their suggestions were included.
The group made a point that, however the state’s aid programs are structured, they must be fully funded to meet the state’s goals of sending more low-income students to college, said George Torres, a committee member and official with Texas Guaranteed Student Loan Corporation (NYSE:STU) , a nonprofit created by the state to guarantee federal student loans.
He said any surplus money in future state budgets should go toward making sure all eligible students receive TEXAS Grants.
Staff writer Joanna Cattanach contributed to this report.
USA Today ran a brief paragraph on an upsetting story. Eight student lenders, including some of the biggest (Nelnet, GMAC bank, among others), coughed up $1,400,000.00 dollars to settle NY Attorney General Cuomo’s probe in their alleged unfair and deceptive marketing practices.
Some of the companies sent solicitations to students that looked as if they had come from the federal government, according to the attorney general’s office.
He added, “It is unconscionable for lenders to entice students into loans that are not best for them.”
“Numerous vendors do millions of dollars of business on college campuses, and we have found that they often pay to play,” Mr. Lawsky said. “The question then becomes, are students getting the best deals or, as we found in the student loan industry, are universities entering into financial arrangements that benefit them at the expense of students?”
Others advertised interest rates not available to most borrowers. Some offered prizes and ran contests to lure student borrowers.
How does this affect you? This might be a little shocking.
For one thing, if a college financial aid office recommends a particular student lender, you can now feel a little relieved because they can no longer receive a “kickback” from that lender.
Yep, you read it right. College financial aid offices used to get ‘referral fees’ for recommending loans. Nice, right? Betcha didn’t know that!
But here’s a bigger issue - because most families are baffled by the financial aid process (there are approximately 1,100 pages of regulations promulgated by the Department of Education, after all), they needlessly ‘default’ into obtaining student loans when they might otherwise qualify for free grants and scholarships.
What kind of aid would you like, free money or a loan? (Need I ask?…)
How do you find the free stuff? Some colleges have more generous financial aid packages than others. There is a VAST range among America’s colleges. Not every school is created equal (in aid!)
Don’t you think it’s a good idea to get a handle on the potential costs of college BEFORE you even think about applying?
One great resource to kick-start your research is our free workshop, “How to Pay for College Without Going Broke.” Click the link Free Workshop RSVP button on the right and register today.