The Credit Crunch and Financial Aid: What Will It Mean for College Admissions?

The press is full of startling articles about the impact of the economic downturn on financial aid.  For example, George Washington University is likely to transfer a portion of its financial aid budget for next year to students currently enrolled.  The private university fears that a significant portion of its student may have to leave before finishing their degrees because families’ savings have been decimated by the market plunge.

This fear is justifiable.  During a recent visit to the University of San Diego, I noticed that the front page of the student newspaper, The Vista, included a lengthy feature about USD students who were worried they might have to withdraw because their parents could no longer afford to pay their tuition bills.

Other examples abound.  According to an article on the KOMU website (a Missouri television station affiliated with the University of Missouri), more students are choosing to live at home to economize.  Even with the high cost of gas, students can save money by commuting, rather than living in the dormitories.  At Mizzou, for example, room and board can cost $7500, which is about the cost of an entire year’s tuition.

The Miami Herald also ran a recent story about a student who dreamed of attending Bennington College in Vermont (with a tuition sticker price of a whopping $49,000 per year), but who will likely end up attending a state institution in Florida.

The National Association of Independent Colleges and Universities (NAICU) conducted a survey of member institutions in September 2008, and reported the following findings.

While there was no widespread student loan crisis through September, there were multiple instances of students taking time off of school, switching to part-time status, and turning to alternative forms of financial support than reported in NAICU’s March survey.  There was a considerable amount of behind-the-scenes scrambling by private colleges to keep loan capital flowing to their students.

But what these financial difficulties mean for admissions offices?  Clearly financial aid budgets will be constrained, especially if other colleges like George Washington University move funds to support students already enrolled.  Fewer financial aid dollars will remain to support incoming freshmen.

So what does all this mean for students and parents who are in the midst of the admissions cycle? While it’s impossible to make too many assumptions at this point, here are a few possible effects.


1. Fewer colleges will be able to make a legitimate promise not to consider financial need in the admission process. Many colleges and universities claim that their admissions processes are “need blind” (though very few really are:  financial need always enters the admissions process in one way or another).  This year, admissions offices will be more aware of financial need than in the recent past.

2. Students whose families can pay the full cost of tuition will likely have an advantage in the admissions process, while students who must depend on merit aid and other grants to attend will find their aid packages insufficient to allow them to attend.

3. Full-pay students whose academic profile (high school grades and test scores) place them below the historical institutional averages may find that they have a better chance of admission this year than last.

4. As a result, colleges may see an erosion of their admissions statistics.  For example, at George Washington University, the average SAT has been 640, and the average ACT has been about 28.  This year, in order to make its budget and attract enough paying students, GWU may have to lower its standards a bit to ensure a full incoming freshman class.  One could foresee, for example, GWU’s average GPA falling by one or two tenths, and its average SAT declining by 50 to 70 points, and its average ACT falling by a point or two.

5. State institutions may actually become more competitive, as the number of applications to in-state public universities soars.  Fearing that more students than usual will accept offers of admission—which could result in overcrowding—admissions offices at public universities may accept a smaller percentage of applicants at first, and then use their waiting lists just in case they miscalculate their yield rates.

6. Waiting lists may be longer at private universities.  Admissions and financial aid officers will watch their yield rate carefully from April to May.  If more accepted students decline offers of admission than in the past, we can expect colleges turn to their waiting lists in order to fill their class and make their budget.  And financial aid packages are always much less for students pulled from the waiting list.

7. With fewer grant dollars (or “discounts”) available, more students may find that their financial aid package includes more loans than they might have received in the past.  This is somewhat paradoxical, given that fewer student loans may be available from private institutions (federal loans are still available, but the amounts are capped).

8. Financial aid offices are unlikely to be able to meet as much demonstrated need as in the past.  (Recall that a family’s “demonstrated need” is the difference between the cost of attendance and the “expected family contribution,” or EFC, as calculated by the Federal government on the FAFSA).  For example, GWU has met about 90% of demonstrated need in the recent past.  In the coming year, GWU may meet only 70-80% of need—or less—depending on how much financial aid money it has to move to subsidize students currently enrolled.


Of course, it’s difficult to prognosticate.  But given the buzz in the higher education press and my understanding of the university budgeting and admissions processes, we can certainly deduce that this year will be a wild one for high school seniors and their families.  And it will also be a wild one for admissions and financial aid offices around the country as we all adjust to a new economic landscape.


Mark Montgomery

College Counselor in Colorado





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Carnival of Education–Presidential Debate Edition

The newest edition of the Carnival of Education is up and running over at EduWonkette, one of the great EdWeek blogs.  The theme is appropriate, on this, the day of the last presidential debate of 2008.’


In addition to a post from yours truly, there is plethora of pleasing posts.  Among my favorites this week are:


Stories from School argues that school (or college) is not for everyone.  I have to agree.  While I think we should never stop learning in high school, I don’t like our cultural prejudice that dictates that if you don’t go to college, you’re a big, fat loser.  After all, only 25% of Americans have a BA.  Does that make 75% of Americans “worthless” or necessarily “uneducated?”


Stuart Buck makes the same argument (and you thought this was a debate!), based on a recent column by Charles Murray at the Cato Institute.  If you haven’t read Murray’s column, you should.  Post-secondary education is great, but again, it’s not for everyone.


Right on the Left Coast (one of my faves–he makes me think) sheds light on the idiocy of faculty/staff meetings.  Why do these sorts of meetings happen over and over?  Why is it that in schools, all leadership has to be “collective?”   (Perhaps we need The Decider to Decide?)


As always, the Carnival of Education is an excellent run around the Edusphere.  I’m looking forward to the next edition.


Mark Montgomery

Carnival of Education


Economy Sinks, and Applications to Business Schools Soar

When the going gets rough, the rough go to grad school.


Or something like that.


The International Herald Tribune ran an article yesterday about the increase in the numbers of applications to business schools this year. Business schools are a counter-cyclical business: they tend to do well when the economy stinks.


What are students not as interested in studying? Finance.


Where are they less likely to aspire to work? Wall Street.


What are they more interested in studying: management in solid industrial sectors.


Where are they more likely to aspire to work? Singapore and Dubai.


Thanks to Adam Markus for bringing this article to my attention.



Mark Montgomery

Educational Consultant





Montgomery guides students, parents though college admissions maze

Montgomery Guides Students, Parents Through College Admissions Maze
by Rosemary Fetter
The Villager Newspaper
9 October 2008, p. 26
 
Reprinted with permission.
 
For many high school students and their parents, selecting the right college can be very confusing and even anxiety producing.  There are so many choices to be made:  Public or private college?  In-state or out of state?  Conservative or  liberal?  And the tasks seem endless, from choosing the right high school courses, to registering and studying for tests, researching colleges, completing applications, writing essays, college visits and interviews.
 
Montgomery Educational Consulting helps to de-mystify the process, providing expert advice to students and their families as they navigate the college selection process.
 
“I do the same thing that a college counselor does, but on a much more personal level,” said Mark Montgomery.
 
The counselor in an average public high school serves more than 300 students, and the ratio is even higher in larger schools. Counselors have little time to provide the individual attention that is often needed.
 
“I work with students and their  parents to develop a college plan based on the student’s abilities, needs, interests and aspirations,” he said.  “I help guide them through the admissions process and develop a college plan and strategies for college visits.  I show students how to write essays that stand out in a crowd, and, as a  part of strategizing, I can also help with scholarship applications.”
 
A cum laude graduate of Dartmouth, Montgomery received his M.A. and Ph.D. from Tufts University, Fletcher School of Law and Diplomacy, and his professional Teaching License and coursework in Educational Administration from the University of Northern Colorado. He has been an associate dean at the University of Denver, admissions counselor at Fort Lewis College, and external evaluator for teaching and learning programs at other universities, including Yale University and the University of Kansas.
 
“Since college is such a major investment, making the right choice at the beginning is important,” he said.  “Colleges are becoming more and more selective.  For example, last year, Harvard accepted only 7 percent of applicants, making this the most difficult year ever.  Families are turning to people like me to get ahead of the game and help them understand how the admissions game works.”
 
In Holly Hills area,” Montgomery added, “about 25 percent of students go to a private four-year college.  It’s important to find the right fit.  A student came to see me recently, a liberal freethinker who was looking at a very conservative college.  It worked in terms of SATs, but in terms of environment, he probably would have been miserable and transferred before long.”
 
Montgomery also points out that the popularity of a school does not affect the quality of education.
 
“Not all clients are Ivy League bound.  I work with a variety of students, average kids and kids with disabilities.  What’s important is to find the best fit,” he said.
 
Montgomery also does some pro bono work for Montbello and Adams City high schools and provides help for graduate school students and veterans from the war in Iraq.
 
“I generally work with two groups, those who start planning for college early and those who don’t much think about it until the last  minute,”  he said.  “Of course, it’s always better to start early, even freshman or sophomore year, and plan your courses accordingly.  But even for those who wait, there’s no need to panic.  We can help.”

Carnival of College Admissions, 2nd Edition

Welcome to the second edition of the Carnival of College Admission.  The Carnival is a biweekly round-up of interesting blog posts related to the transition from high school to college.


I’ve had many folks contact me asking what a blog carnival is, and why they should consider submitting posts to each edition.  My friend, Peter Baron over at AdmissionsQuest, called me up last week to ask me to describe what we’re doing.  He recorded our video conversation, and I’d like to kick off our Second Edition by sharing it with you.


College Admission Carnival / A conversation with the Carnival’s founder, Mark Montgomery from Peter Baron on Vimeo.



So, now, on with the October 8, 2008 edition of Carnival of College Admission.  Enjoy the ride!


Admission

Andrew Burns, the Director of Admission at Fort Lewis College in Durango, Colorado, presents insight on how to get the most of attending a college fair.  He provides great advice to the high school senior about how to get good information, and at the same time make a good impression on admissions officers.  


Adam Epstein, an admissions counselor at Worcester Polytechnic Institute (WPI), presents a post entitled, “So What’s In A High School Visit?” in which he explains why admissions folks visit high schools, and what students can expect from an encounter with people like him. Check out Adam’s blog at Adamissions.


Brad J. Ward, an admissions officer at Butler University and a technology guru in the higher education field, shares a hilarious post from his blog Squared Peg about the importance of responding to emails from admissions officers.  Why?  Because they like it!


Todd Johnson presents Legacy admissions. The best way to gain admissions to selective colleges? posted at College Admissions Counseling Blog.  Todd is another prolific blogger, and he provides all sorts of useful information to families of college-bound students.


Yours truly, Mark Montgomery, is happy to direct you toward his post that gives an insider’s view on admission to schools of art and design.  I was able to make a video of a portfolio review of a young woman hoping to be admitted to the Art Institute of Boston.  If you want to check out my blog, well, you’re already here.



Boarding School
Peter Baron at AdmissionsQuest, a resource for boarding school admission in the US, shares a post from a new guest blogger on his site: a parent. Her first post a welcome to her boarding school admission journal.  Thanks again to Peter for putting together the short video introducing the Carnival!

Sean Costello at VideoJug posted his organization’s video channel related to school admission in the UK. 



Test Prep

Mark Truman presents Someone Finally Stops Inviting the SAT and ACT to the College Party posted at Omniac Attack!.  In this amusing post, Mark highlights the report from the National Association for College Admissions Counseling (NACAC) that encourages colleges and universities to reconsider their use of the SAT and ACT tests as important criteria in the admissions decision.  Perhaps more and more colleges will be going test optional here soon.


Todd Johnson shares another post in which he explains how many colleges “superscore” the ACT and SAT tests.  Students who worry excessively about the fact that a college  may see both low and high scores on the same test can rest assured that colleges have every incentive to give you the benefit of the doubt. Find Todd’s blog at College Admissions Partners.



College Life

Shae presents, “Hey Roommate–Stop Stealing My Food!”  Shae has a lot of fun stuff to share about how important food can be in college life.  And I remember those days when I had to label the food in the communal fridge to keep the crew team from swiping my comestibles.  Check out Shae’s blog at The Collegiate Gourmet.


Ali Hale, who blogs as Alpha Student, presents a post entitled “Feeling Shy?” in which she provides tips for getting to know people on campus. As Ali says, “If you’re feeling shy and a bit nervous of approaching new people at college – don’t worry, you’re not alone.”


Linda P. Taylor has submitted Part 2 of her series on the limits of political speech on campuses.  She examines the new regulation at the University of Illinois that bans faculty from wearing political buttons or participating in political rallies on campus.  Linda blogs at AskLindaPTaylor.com, and of course, you can also find Part 1 of her series there!


Barbara Nixon is an educator and technology fan.  She offers 10 Tips for Success on Assignments. Check out Barbara’s blog, Making Connections.


My friend Andrew Burns is really getting into the spirit of the Carnival.  He submitted another interesting post describing Fort Lewis College’s community book program, which this year featured Greg Mortenson and his book Three Cups of Tea.  More an more colleges are adopting these community book programs, especially for first year students, to help ease the transition to college.  Check out the rest of Andy’s blog posts.


Many of us in the college admissions field recognize that more students with autism and Aspberger’s are applying to college–and getting accepted.  Michelle McFarland-McDaniels presents resources and information on Preparing Students with Autism for a Successful College Experience.  Michelle blogs at Autism Assistance.



Financial Aid

Julie Stewart over at Virtual College Fairs, presents a post that explains how to determine your EFC, or Expected Family Contribution.  This all-important number is an indicator of a family’s financial need.  Check out Julie’s blog, too.


Everyone has seen their portfolios shrink in recent weeks.  Students and their families are among the most nervous about the credit crunch.  John presents Student Loan Crunch Getting Tighter posted at Free College.


Wenchypoo, in a post entitled “The College Conundrum,” explores the “return on investment” that we make in pursuing a college degree. As she points out, financially some degrees just don’t make economic sense. Wenchypoo also submitted a similar post on the same subject, entitled, “The NEW Lessons in Higher Education.” You might want to take a look at her other blog posts: Wenchypoo is a prolific blogger!


The Editors of Financial-Aid-Resource-Center.com present Grants for College, which explains that federal grant programs are designed to assist students with the greatest financial need.  Read this post for a summary of available grants.



Scholarships

Jeremy Zongker presents Free College Education Exists. This post highlights the few colleges that actually offer a complete college education at no cost. Have a look at the entire blog at Destroy Debt.


Michelle McFarland-McDaniels presents another post this week, providing resources on information on sscholarships for college students who have autism.  If autism is a particular interest, make sure to check out Michelle’s blog at Autism Assistance Resources and Information Blog.



Other Cool Stuff

Malia Russell presents Christina is Graduating This Month (May 2008) posted at Homemaking 911.  Malia gives the story of her daughter, who has achieved a lot…through both dedication and heart.


Karin Chenoweth presents We Need Better Teaching posted at Britannica Blog.


Raymond presents Where Is The Safest Place To Save Or Invest Your Money? posted at Money Blue Book Finance Blog.



This wraps up the second edition of the Carnival of College Admission. Please participate on our next edition, which will open on October 22nd right here at Great College Advice. Submit your blog article to the next edition using our handy submission form. Past posts and future hosts can be found on our blog carnival index page.


See you in two weeks!


Mark Montgomery

Great College Advice



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Artist Portfolio Review at National Portfolio Day

My clients who aspire toward a career in fine art know that they need to prepare a portfolio of their work to present to admissions officers.  These portfolios need to show off their best work, and provide a window into their creative thought processes.


Most students interested in admission to a school of art and design participate in one of nearly 50 different National Portfolio Day events around the country.  Admissions officers from accredited art schools gather to meet with students and offer advice and constructive criticism on how to construct their portfolios.  Admissions officers also get an opportunity to meet with potential recruits and tell them about their school.  Students also have an opportunity to learn more about the programs and schools that may interest them.  (For see my post about National Portfolio Day here).


My clients ask, “what is a portfolio review like?”


So I took my camera to a recent National Portfolio Day event and asked both admissions officers and students if they would allow me to film the experience and share it with others.  Jon Nutting, an admissions counselor at the Art Institute of Boston, readily agreed.  And an aspiring artist named Sarah from Firestone, Colorado, was more than happy to share her experience with my clients–and with you.

As you can see, Mr. Nutting’s comments are both encouraging and constructive.  He offers personalized advice on how to improve her portfolio to give admissions and scholarship panels more information about her artistic talent and the way she approaches different sorts of projects and ideas.


Mark Montgomery

College Consulting



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Three Reasons to Attend the University of Wyoming

university

I recently visited the University of Wyoming. Situated in Laramie, the university is the only four-year college in the entire state. As such, the entire population is focused on providing Wyoming students with the best in higher education. I met with Brooke Spicer, an Admissions Representative, and asked her what would make for a great college fit.  She offered up three solid reasons that students anywhere should consider the University of Wyoming.

Here is her response. In a nutshell, her three reasons were as follows:

First, Wyoming is a big state with a big spirit, and because the University has no competition for the hearts and minds of its people, students benefit from the support of the entire population. As she says, football fans travel seven hours–each way–and even if the team is losing–to see a Cowboys game. This spirit engenders a sense of pride in being a student in Laramie.

Second, the outdoor opportunities at the University of Wyoming are unparalleled. Hiking, biking, skiing, camping, sledding, spelunking–it’s all here. Anyone who likes the out-of-doors should consider trekking to Laramie for the sunshine and the access to unspoiled wilderness.

Finally, Wyoming is a relatively wealthy state in proportion to its population. With recent tax windfalls from surging oil and gas prices, the state’s legislators have decided to pour hundreds of millions of dollars into the University. The result is a construction boom–new library, a new business school, a new student union, technology investments and upgrades. And at the same time, tuition costs have been kept quite reasonable. So in terms of value, the University of Wyoming is a place where you get plenty of bang for your buck.

Thanks to the folks in the admissions office who welcomed me with open arms. I had a great day exploring the University of Wyoming.

Mark Montgomery
College Admissions Counselor

The Economy Affects College Enrollments and Admissions Strategies

An excellent article from the Baltimore Sun analyzes the way in which colleges are reacting to the economic downturn.  Here are some of the trends.

  • More private colleges are turning to their waiting lists to fill their classes.
  • More families are making deposits accepting admission to more then one institution, then bargaining hard for financial aid, pitting one school against the other.
  • More students are questioning the value of a private education in a time of economic uncertainty.
  • Enrollments at community colleges seem to be increasing.

 Mark Montgomery
College Admission Counselor

Directory of Summer Opportunities and Gap Year Programs

A client asked me the other day where she could find a directory of summer opportunities for high school students. I told her the best resource is maintained by Phillips Andover in Massachusetts. You can find the directory of summer programs here. It includes some excellent “gap year” or “interim year” programs, as well.

Mark Montgomery
College Search Expert and Counselor

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College is an Investment: Choose Wisely

If you’re like most parents, you’ve begun saving money for college. You know what a huge investment college can be.
But have you thought about about the investment in choosing the right college?
Consider these facts:

  • A college education is the biggest investment a family will make, aside from a home.
  • The cost of attending an in-state college is now well over $100,000.
  • The cost of a private four-year college can easily amount to $250,000.
  • Most students take MORE than four years to graduate, so plan on at least 4 1/2 to 5 years of tuition payments.

Add to these facts another, sobering statistic: almost half of all students entering college either drop out or transfer to some other institution.
Moreover, families can save considerable amounts of money if they take more care in choosing colleges that are more likely to award their student merit-based financial aid.
So it makes sense to invest in choosing the right college.
More and more families across the country are turning to professional advisers to help them in choose the right college. The Independent Educational Consultants Association (the IECA, of which I am an associate member) estimates that 22% of students attending private, four-year colleges have had some sort of professional assistance in the admissions process. Closer to home, a college counselor in a premier district in Colorado estimates that at least 25% of its student body hires a professional educational consultant.
So as you consider whether it makes sense to invest in hiring me to help map out your college journey, ask yourself these questions:

  • Do you seek professional advice to help you manage your other investments?
  • Did you buy your house without the assistance of a real estate broker?
  • Do you get legal advice from the internet or books you pick up in the bookstore?

My fees are a tiny fraction of what you can expect to pay for a college education. An investment in the college selection and admission process will pay off in terms of:

  • dollars saved
  • headaches avoided
  • student’s happiness on the college campus
  • student’s academic success
  • peace of mind

So if you’re ready to invest in choosing the right college for your student, give me a call or send me an email today. I’d be happy to talk to you personally about how I can help you and your student invest your educational dollars wisely.
Mark Montgomery
Independent College Consultant
720.279.7577
Technorati Tags: save money for college, college admission, financial aid, college costs, tuition, admission, university