"The Factors in College Success" article on Yahoo Finance today

[K-FL]

The Factors in College Success

 

by Laura Rowley

 

 

 

I recently spoke with a family who lost much of their college savings fund in last year's market meltdown.

 

The family is planning to send their oldest child, who earns straight A's and excels in sports, to a local junior college for two years, then on to finish at a four-year school. They insist they wouldn't qualify for aid because their household income is too high, so they are not filling out the federal application for student aid (also known as FASFA).

 

The problem is, bright, talented students who are qualified for four-year institutions but go to community colleges are 36 percent less likely to finish their bachelor's degree, according to William Bowen, president emeritus of Princeton and co-author of "Crossing the Finish Line: Completing College at America's Public Universities."

 

In the book, Bowen and his co-authors argue that America is losing its competitive edge because of high drop-out rates. Overall, 44 percent of undergraduates leave school before they complete their bachelor's degrees. It's not a first-semester phenomenon either; half of students depart after finishing the second year.

 

"The share of the population that graduated from college went up steadily for almost 200 years and put the U.S. at the top, and that has flattened out for last 20 to 30 years, while other countries continue to increase their educational attainment," Bowen says. "That's very worrying, when you think about a world dominated by brain power and knowledge."

 

With $25 billion lost in 529 college savings plans last year, according to a Treasury Department report, many families are altering their aspirations for higher education. "Crossing the Finish Line" is a timely guide to factors that matter most in college graduation rates. The authors assembled and analyzed a large new trove of data, including the characteristics of 200,000 freshmen who entered college in 1999. Five of the key findings:

 

1. High school academic performance matters more than standardized test scores. "It was striking in our data how important high schools grades are," says Bowen. "They are a powerful predictor of who graduates, because they measure not only cognitive skills but coping skills, self discipline, time-managements skills -- and those have an enormous amount to do with success later on." Studies of Chicago high school students found 58 percent of those who entered college with a "B" average graduated, compared with 47 percent of students with lower GPAs.

 

2. The size, location and racial mix of a high school did not affect the ability to earn a college degree. "We were surprised how little difference (those factors) made," says Bowen, stressing that while the data are solid, they are unique to North Carolina, and the outcome in other states may differ. But the findings are significant for parents who are considering paying for a smaller private high school to give their children a leg up in college. If the public high school is good, parents may be better off saving that money for higher education (see No. 4).

 

3. Parents of limited means may be better off renting a home in a wealthy school district than buying one in a poorer school district. "If the high school is in a wealthy neighborhood, it does make a difference," says Bowen, because that wealth is usually a proxy for parental income and education. The authors found a 4 percent matriculation advantage for schools in relatively affluent neighborhoods and modestly higher college graduation rates.

 

4. Money changes everything. The book looks at equally qualified students who attended the most competitive public universities in the study -- the University of California-Berkeley, the University of Virginia and the University of Michigan. Of that group, 57 percent of students from the highest socio-economic group graduated in four years, compared with 38 percent from the lowest bracket. (For students who graduate within six years, the rates are 83 percent and 68 percent, respectively.) "One of the clear findings is upper-income families have consistently higher completion rates," says Bowen. "Money really matters, and it matters in large part because it allows you to help students get past bumps in the road."

 

A recent Sallie Mae survey found six in 10 parents are saving for college, with annual savings of $2,600 and total accumulation of $13,800. But that's not enough to pay for a full year at the average public institution, where tuition, room and board currently average $14,333, according to the College Board. Moreover, only 29 percent of parents were likely to meet or exceed their college savings goal if they continued to save at their current rate, the study found.

 

5. Beware the undermatch. "The single most striking finding was the "undermatch phenomenon" -- how many well-prepared, talented kids from moderate circumstances don't go to the schools for which they're qualified," Bowen explains. "In North Carolina, 40 percent of all students who on a very conservative calculation were eligible to attend one of best universities in the state were lost at the application stage. It's not that they applied and were rejected. They didn't apply because they didn't know how to apply and they didn't think they could afford it. Undermatch rates are twice as high for students from modest backgrounds than kids from more privileged families."

 

Comparing equally qualified students, just 44 percent of the undermatched students graduated in four years, compared with 59 percent of students who attended the more selective university. (The numbers were 66 percent and 81 percent for graduation within six years.) "What produces success is good classmates -- if you are surrounded by smart, hard-driving people, that helps you, and if the expectations are that everybody is going to graduate, that helps you," Bowen says. "Where there is not as strong an expectation, your odds go down."

 

For many parents the dilemma is the mystery surrounding the net cost of education – something most families don't find out until the spring before college enrollment. A recently launched service, StudentAid.com, is focused on helping students get accurate net costs as early as their junior year in high school.

 

For $49, the company offers a College Cost & Planning Report, which assesses an individual student's out-of-pocket costs at more than 6,500 colleges; eligibility for 8,000 different grant and loan programs, including federal, state, college, private and local offerings, and detailed comparative data on college choices. Parents must provide information on income, assets, GPA, class rank and SAT scores. (For $99 families can get assistance by phone as well. The site is currently offering its service for free to households with income of less than $40,000.)

 

"We spent two years working on our algorithm based on 25 million test cases and gave feedback to 28,000 families based on their personal circumstances," says David Childress, general manager of StudentAid.com. Childress, a West Point grad, says his involvement was inspired by his own frustration in applying for a master's program after completing his Army service.

 

"I had to wait until after I applied and received my aid award letter, which arrived a few months before tuition bills were due," he says. "That's how the process works for traditional students entering senior year. It's not until March or April that they get the award package and understand that net cost. We're targeting juniors and seniors trying to answer questions about net costs as early as possible."

 

Bowen agrees that net college costs must be made more transparent to raise graduation rates. "The biggest takeaway for government is to approve a drastic simplification of financial forms and show the net price charged by public universities," he says. "The sheer complexity and uncertainty of the process really frightens people from applying to college -- never mind being able to continue."

 

And the takeaway for parents? "Emphasize old-fashioned discipline and character traits -- that's what pays off," Bowen advises. "Focus on that much more than paying for high-priced test preparation class or a traveling soccer team."

[JFSinIL]

Interesting article...until he tries to sell us something. Many of the college websites I have seen say to beware ANYONE who offer to find scholarships, etc. for a fee.

[K-FL]

Interesting article...until he tries to sell us something. Many of the college websites I have seen say to beware ANYONE who offer to find scholarships, etc. for a fee.

 

True! I thought the stats re: undermatching, etc were interesting though.

 

I have a personal theory on drop-out rates however. In talking to some young men who graduated from ps, the 1st couple of years of college were just another repeat & they dropped out due to wanting to "get on with it." I know our hs doesn't advertise about the dual-enrollment options. They want those kids in THEIR seats ($$ of course.) So many could dual enroll helping their "senior-itis" (regardless of age) and get past the basic courses in college which would help them get the Bach. degree that much sooner & into the workforce.

[Brenda in MA]

True! I thought the stats re: undermatching, etc were interesting though.

 

I have a personal theory on drop-out rates however. In talking to some young men who graduated from ps, the 1st couple of years of college were just another repeat & they dropped out due to wanting to "get on with it." I know our hs doesn't advertise about the dual-enrollment options. They want those kids in THEIR seats ($$ of course.) So many could dual enroll helping their "senior-itis" (regardless of age) and get past the basic courses in college which would help them get the Bach. degree that much sooner & into the workforce.

 

K-- I think you are right about this one. I personally know of two young men who languished the last two years of high school because they were capable of more than their high school offered.

 

I also agree with this article's comments about the fact that peers in college matter. It's much easier to do the work when you're surrounded by other diligent students.

 

As to the comments at the end about the fee service that will estimate your financial aid at various schools, this information is available for free on the web, but you have to know where to look for it. Here is one website that can be used to estimate the federal EFC:

 

http://www.finaid.org/calculators/scripts/estimate.cgi

 

I've found the message boards at College Confidential very helpful in learning about the financial aid process in general and also the particulars of which schools tend to be generous with aid and which do not.

 

I do agree with that gentleman that parents should look into the financial piece of college much, much sooner than most do -- and certainly before their student chooses which schools he or she will apply to. I have heard and read that a lot of school guidance counselors will encourage students to "dream" and apply wherever they want, but it makes for a very sad spring if they don't look at the financial piece ahead of time and suddenly find out that they can't afford any of their "dream" schools.

 

I also liked this quote:

 

"Emphasize old-fashioned discipline and character traits -- that's what pays off," Bowen advises.

 

This is where we homeschoolers have an advantage, I think. My feeling is that it's much easier to instill theses values and traits in our young people if they are with us and around other adults frequently.

 

Thanks for sharing the article,

Brenda

[In The Great White North]

But that's not enough to pay for a full year at the average public institution, where tuition, room and board currently average $14,333, according to the College Board.

 

Really??? I'd like to know the names of any four year colleges that cost that little.

[creekland]

Interesting article - and it doesn't surprise me at all with the drop out rates. In our public high school (where I've subbed math/science for the past 11 years) the work required and work ethic of the students has been on the decline the whole time - yet grades are inflated so parents can think their younguns are doing well. Students are regularly given 'practice tests' that are essentially the same as the real thing... and many still have difficulties!

 

We regularly see 'top' students go off to college who then aren't able to handle college level work... and they return. It's sad. These students would have been capable had they been used to actually doing work in high school. Little was expected of them, so most did little thinking they were doing well.

 

And... our school rates roughly at the 50% level in the state... and our state generally rates in the mid pack of the nation. We're about as average as a school can get. I don't think we're unusual. It's the main reason we chose to homeschool our 3 once the oldest reached high school.

 

The article lost me when it started the sales pitch... before that it was quite interesting. I do agree that students do best when going to school with their peers academically, but I wouldn't want my son to be in the bottom 25% of students at a school. I've seen plenty of those come home - far less when students are in the top 50%, but not the top 5%.

[NCMom]

Really??? I'd like to know the names of any four year colleges that cost that little.

 

Public- just off the top of my head, lol...

 

UNC Asheville - in state and non resident

UNC Charlotte - instate and probably non resident

Mississippi State - tuition/room & board/books - in state at least

Most of the public colleges in FL my oldest has checked out

Texas A&M

 

Honestly, there are plenty of inexpensive colleges, in the south at least. Sure they are just public U's or smaller LACs but we know plenty of kids who are getting a degree for way less than 14K per year.

 

Georgia

[In The Great White North]

Sadly,

 

Texas A&M (res) $20K (non-res) $35K

https://financialaid.tamu.edu/Cost.aspx

 

Mississippi State (res) $18K (nonres) $25K

http://www.sfa.msstate.edu/cost/

 

UNC Asheville (res) $13K !!!!! (non res) $24K

http://www.unca.edu/admissions/affording/

 

UNC Charlotte (res) $12 !!! (nonres) $22k

http://studentaccounts.uncc.edu/TuitionAndFees.html (plus a few other sites for housing, dining plans, etc)

 

So, UNC is under $14,000, but not enough to balance out UVM (res) $22K (nonres) $40K for the national average to be $14,000.

[NCMom]

Sadly,

 

Texas A&M (res) $20K (non-res) $35K

https://financialaid.tamu.edu/Cost.aspx

 

Mississippi State (res) $18K (nonres) $25K

http://www.sfa.msstate.edu/cost/

 

UNC Asheville (res) $13K !!!!! (non res) $24K

http://www.unca.edu/admissions/affording/

 

UNC Charlotte (res) $12 !!! (nonres) $22k

http://studentaccounts.uncc.edu/TuitionAndFees.html (plus a few other sites for housing, dining plans, etc)

 

So, UNC is under $14,000, but not enough to balance out UVM (res) $22K (nonres) $40K for the national average to be $14,000.

 

Yeah but I'm was basing it on tuition, room, and board, which is what he stated in his article, lol.

 

I do agree w/the poster about the first two years, especially at the CC. Man it IS boring for my ds. But he doesn't mind too much and is always learning other stuff on the side. He chose to do it this way to save money. And since we have so far paid $0, it is working. :001_smile:

 

Georgia

[Murphy101]

I have a personal theory on drop-out rates however. In talking to some young men who graduated from ps, the 1st couple of years of college were just another repeat & they dropped out due to wanting to "get on with it." I know our hs doesn't advertise about the dual-enrollment options. They want those kids in THEIR seats ($$ of course.) So many could dual enroll helping their "senior-itis" (regardless of age) and get past the basic courses in college which would help them get the Bach. degree that much sooner & into the workforce.

 

:iagree: spending a helf day every day off high school campus saved me big-time. I was counting the day to get the heck out of there and I think if I'd had to spend anymore time there I'd have at least considered getting a GED and just walking out. I hated school.

 

I didn't get the impression the sales pitch was to get scholarships, but rather a fee to have someone explain the bottom line to you. Which I have to admit would be mighty fine.

 

To not know whther you need to come up with 10+ or heaven knows what less than 6 months before you are expected to cough it up is a bit unrealistic of colleges imho. and I agree with the author that I think it scares people off and or makes them think there's just no way it can happen. I think it's set up that way to push student loan debt. Let's face it, the attitude is basicly don't worry about how much it costs, just get a loan.:glare:

[K-FL]

To not know whther you need to come up with 10+ or heaven knows what less than 6 months before you are expected to cough it up is a bit unrealistic of colleges imho. and I agree with the author that I think it scares people off and or makes them think there's just no way it can happen. I think it's set up that way to push student loan debt. Let's face it, the attitude is basicly don't worry about how much it costs, just get a loan.:glare:

 

You & I are of the same mind :D. Even once you get the scholarship & other $$ paperwork, it's still is a bit vague on what you REALLY have to come up with. The state $$ aren't set until you register for classes (based on credit hrs & the budget in the fall) plus you may get additional $$ from an outside source, yada, yada, yada.

[Deb in NZ]

is UVM now $22K / year for VT res.??? Wow! My 17yod begins her BS in Marine Sciences in Feb. 2010 here in NZ & the total cost of her tertiery education will be under NZ$20K. We have just began to jump through the hoops of applying for student loans / student allowances.

 

Blessings,

[Nan in Mass]

Per year or total?

[Deb in NZ]

not including living costs, but the NZ student allowance should cover her living costs if she budgets carefully. So under NZ$20k for a BS isn't too bad IMHO.

[Nan in Mass]

Wow! Student allowance!!! Room and board is about 8k a year. And that is only covers 8 or 9 months of the year. Add to that books and tuition, and it mounts fast. What percent of your income do you pay in taxes? We pay about 30%. I'm wondering where the student allowances (and things like health care which you probably do more compassionately than we do here) come from, which is why I asked about taxes. We have two children in college and all I can say is thank goodness for loans and savings and scholarships and relatives who gave them college accounts when they were born. All that doesn't come close to covering the expense, but at least it puts a significant dent in it. Can anyone in NZ go to college? How selective is it? Is it heavily subsidized by the government?

-Nan

[Deb in NZ]

are a kind of grant for tertiary students to help with living costs during tertiary study. Amounts vary as parent's income is used as a basis for determining amounts. People are limited to 40 months student allowance in their lifetime (~4 years study as it isn't paid during holidays of more than 3 weeks). Based on what dh makes dd can hope to get $158/week student allowance + $40 housing supplement. As her rent will be $125/week if she gets accepted into student housing, this will leave her enough for food & other costs, if she is careful. Where she'll be studying has only 18 places for student housing, but as she'll still be 17yo & from out-of-town we're hoping she'll get a place. Otherwise we'll need to look for an apartment & her allowance won't stretch that far. Tuition is $5-6K/year & books will be minimal in her field. Instead her diving gear will set us back ~$1000. NZ has socialized medicine, so health costs aren't a worry. She'll need to get a gov't student loan for the tuition costs, but as a BS is only 3 years here, it won't be a huge loan by US standards.

 

Taxes here are 33.3% & basic living costs are much higher than that in the States, so savings for uni weren't a priority for us.

 

Tertiary study isn't the main goal of many teens here. Many opt for apprenticeships, on-the-job training, enlisting in the military, etc. Many people go back for a degree later in life. After 20yo anyone who can pay the fees, can enter uni. Only a few select programs limit entry (medical school, etc.) My boys are looking at the navy &/or apprenticeships instead of uni.

 

Blessings,

[Laura Corin]

There are no tuition fees for university if you are resident in Scotland and going to a Scottish university. If you want to go to one in England or Wales, and are an EU citizen and resident in the UK, you pay about £3,000 per year (about USD 4,800). Living expenses are on top of that, but there are grants for lower income people and cheap loans for everyone else. The fees are similar for all universities, including Oxford, Cambridge, etc.

 

Laura

[Nan in Mass]

Thank you Deb and Laura. I'm always curious about how other places do things, especially when things differ widely, like education. We didn't save all that much for college either. Instead, we concentrated on paying off our house, thinking that then when we had to pay for college, it would be easier because we wouldn't have a mortgage. Everyone told us we were crazy to do it this way because you get aid for college based on what you have saved and what you own (farmers are at a severe, severe disadvantage here) and your income, and there are tax-sheltered college savings plans, but then when the stock market dropped so sharply recently, our way suddenly seemed rather clever. I'm seeing many of my sons' friends falling into a crack between apprenticeships/jobs and college, and getting lost. Their parents went to college and want them to go to college, the resources are there and they can get in, but they don't want to go (this part is rather puzzling - something weird about our town's school system?). As a result, they don't get a proper job or apprenticeship or non-college training; they just drift waiting, not even knowing what they are waiting for. It is sad.

-Nan

[chanda7]

When I was a freshman in college, I took a non-academic test that said it was unlikely I would graduate from college (basically because I didn't value the education/degree). Based on the criteria above, I came from a middle-class family, went to a rural high school and was "undermatched" at my college.

 

I graduated with high honors in four years. Don't let an article like that scare you.

[Laura in CA]

I saw an article recently (USN&WR?) about what a great deal overseas universities are for U.S. students -- even factoring in airfare & nonresident surcharges -- and how American students are beginning to take advantage of this.

 

I took classes at a German university (after passing a language test, which I assume isn't required in anglophone countries ;-) --although I'm sure there are some misunderstandings at first!) and the cost was minimal. A great deal!

[Laura Corin]

Oxford costs around £14,000 per year in fees. I suspect that's not expensive compared to the Ivy League. You'll need a bunch of APs at the highest possible level to get in though.

 

Laura

[ChristineP]

Thanks for posting!