The College Planning Blog

Hey Guys,

I ran across this article on CNN regarding the Student Loan Meltdown.

Loan Crisis Goes to College

Paying for college could get even tougher this year as smaller lenders tighten standards and raise rates. But big banks are holding the line.

By Tami Luhby, CNNMoney.com senior writer

February 15 2008: 12:12 PM EST

NEW YORK (CNNMoney.com) — The credit crunch is hitting the college classroom.

When parents and students try to line up college funding this spring, they will likely be in for a nasty shock. They may still get a loan, but it will come at a price. Borrowers will have a more limited choice of lenders and find discounts for on-time payments or direct debit scarce. On top of that, they’ll see higher rates and fees.

The credit crisis, which started last year with mortgages and has bled into many other areas, is now affecting student loans. Many lenders, particularly smaller companies not affiliated with banks, are finding their main source of funding for private student loans cut off as investors balk at buying securities backed by these loans. This will force some to boost interest rates on private loans by up to 1 percentage point, raise minimum credit scores to 650 and require parents to co-sign the loans, experts said. (more…)

Warning: Students, What You Post On Facebook Could Haunt You!

It happened again. In January, 2008, almost 100 students (!!!!) from one high school in Minnesota were suspended or kicked off of sports teams for photos that were posted on online websites like MySpace and Facebook that showed them drinking and partying. So, if you’ve been working hard to get into college– have busted your rear getting good grades, studied late at night for the SAT, polished and perfected your essay, and prepared for campus interviews—you’re not done just yet. Let’s talk about how NOT to let a stupid photo or two ruin your chances of getting in….or worse.

Now, if you haven’t already come in to talk to us about your own personal situation, what are you waiting for? Pick up the phone right now and give Deniz a call at 281 822 6200 for a personal appointment. We have been able to help hundreds of families’ fight the high cost of college, get into great schools, and helped students find the right career.

First, let’s talk about the dilemma: currently, it’s reported that up to 85 % of the students at any given school or college post to at least one of the major social websites, whether it’s MySpace, Facebook, Xanga, LiveJournal, or Friendster. And while some students believe that what they post there should be private, or should be to allow them to ‘express themselves’ and it shouldn’t matter to anyone else, the reality is that what you post online is public, and in some cases, permanent. And it does matter.

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Hey Guys,

Here’s a great article. Aren’t you glad you have help with this?

Bad News U:
Colleges Reject Record Numbers

Policies at Harvard, Princeton Create Uncertainty at Elites; Financial-Aid Picture Improves

By ANJALI ATHAVALEY
April 3, 2008; Page B11

The college-admissions season set records this year — both in the number of students who applied, as well as the number of students who were rejected.

Harvard University has a record applicant pool of 27,462 and an admissions rate of 7.1%, meaning that 1,948 students were accepted — the lowest number in the school’s history and a drop from last year’s 8.9%. Yale University received 22,813 applications and accepted only 8.2%, down from 9.6% last year. And at Princeton University, of the 21,369 applications, 9.3% were accepted, down from 9.5% last year.

State schools, too, are reporting a tough admissions season, with acceptance rates down at the University of Texas and the University of North Carolina, among others.

On the positive side for some students this season, schools are having a hard time predicting their all-important “yields” — the percentage of students admitted who will actually attend. And high-school counselors are hoping that ambiguity will result in more acceptances for students who are on waiting lists — a strategy schools use to reach enrollment targets.

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