College, Quicker: 24 Practical Ways to Save Money and Get Your Degree Faster
288
College, Quicker: 24 Practical Ways to Save Money and Get Your Degree Faster
288eBook
Available on Compatible NOOK devices, the free NOOK App and in My Digital Library.
Related collections and offers
Overview
You can save time and money on your college education. And you can have an unforgettable adventure along the way. Step-by-step, College, Quicker shows you how!
On her first day of college, Kate Stephens had no government aid, no private scholarships, no significant savings—and no idea how she was going to pay for her education. But she graduated with zero debt in just two years. Her secret? Finding faster, less expensive ways to earn credits toward her degree.
In College, Quicker, Stephens guides you to an affordable education, sharing practical tips on how to:
- Design your graduation plan. Are you still in high school? Already in college? Get the lowdown on how colleges' transfer credit policies work and sample schedules to organize your plan.
- Choose the credit-earning options that work best for you. Are you a good test taker? Do you feel cooped up in classrooms? Basics, benefits, and bottom-line financial savings help you weigh the pros and cons of each option.
- Get started now! Hit the ground running with step-by-step instructions plus insider tips, common mistakes to avoid, and bonus opportunities.
24 Money-Saving Options for ANY Kind of Student:
- AP and IB exams
- Dual enrollment
- CLEP, DSST, TECEP
- Internships
- Military transcripts
- Prior learning portfolios
- Alternative spring breaks
- And more!
Product Details
| ISBN-13: | 9781492613398 |
|---|---|
| Publisher: | Sourcebooks |
| Publication date: | 07/14/2015 |
| Sold by: | Barnes & Noble |
| Format: | eBook |
| Pages: | 288 |
| File size: | 1 MB |
| Age Range: | 14 - 17 Years |
Read an Excerpt
College, Quicker
24 Practical Ways to Save Money and Get Your Degree Faster
By Kate Stephens
Sourcebooks, Inc.
Copyright © 2015 Kate StephensAll rights reserved.
ISBN: 978-1-4926-1339-8
CHAPTER 1
Section 1
ORGANIZE YOUR EARLY GRADUATION PLAN
The Basics of Transfer Credit Policy
"If you fail to plan, you plan to fail." You've probably heard this line from your parents or teachers. And while it's obviously cheesy, it's also inevitably true. In order to succeed, you need an outline, a model, a draft, or a layout. Or in this case, an early graduation plan. From teaching you about the all-important transfer credit policy to explaining financial advantages to debunking myths and misconceptions to revealing common pitfalls, this section will help you construct this very plan. So when you do start down the early graduation path, failure won't even be a possibility.
The Policy
Just as with students, no two schools are the same. They're often differentiated by location, environment, size, admission requirements, academics, athletics, financial aid, cost, facilities, activities, and housing. And while all of these are significant, a factor equally as important is missing from this list. But it should be on your radar since it'll make or break an early graduation — it's the transfer credit policy.
Unique and specific to each institution of higher education, the transfer credit policy outlines protocols and procedures for the transfer of credit from traditional sources (usually from other accredited schools) and nontraditional sources (standardized exams, noncollegiate learning, prior learning portfolios, and military training and experience) to the college or university. Confused? If your nose and forehead just scrunched up or you raised an eyebrow, you're not alone. This definition might seem complex, but the concept is actually not. Simply put, a transfer credit policy describes what types and how much transfer credit the school will accept. Still confused? Look at this example of a policy for a fictitious college, School A:
TRANSFER CREDIT POLICY
Must earn a minimum of 50 credits at School A
TRADITIONAL CREDITS
› Will accept up to 60 credits for work completed at other institutions
• Must be from a regionally accredited U.S. college or university (not a foreign or unaccredited institution)
• Must be presented on an official transcript
• Must be college-level, postsecondary courses (no remedial classes)
• Must be awarded a C or better
• Must be similar in nature, level, and content to a course offered by our school
NONTRADITIONAL CREDITS
Maximum of 45 credits from all nontraditional sources
› Will accept up to 15 credits from AP, CLEP, and DSST exams
• Must meet the American Council on Education (ACE) recommended score
› Will accept up to 15 credits for noncollegiate learning
• Must be identified, evaluated, and recommended for credit by the American Council on Education (ACE) or the National College Credit Recommendation Service (NCCRS)
› Will award up to 15 credits for a prior learning portfolio
• Must be degree-seeking and admitted to the program of study
› Will accept up to 15 credits for military training and experience
• Must be presented on an official JST or CCAF transcript
Obviously, the example will provide you with only a basic idea. Most transfer credit policies are much more detailed, spanning over multiple pages inside a school's course catalog and on its website. They're often wordy and complicated. Even so, don't skip over them. You'll need to read over the information to make an important determination. Is each policy generous or not? With a generous credit policy, you can accumulate a significant amount of credit from outside sources. And compared to credit earned on the school's campus, credit earned off campus is typically less costly and less time-consuming. Therefore, more than anything else, a generous transfer credit policy is the key to a quicker degree.
But what exactly is a generous transfer credit policy? Unfortunately, there is no perfect answer. Since the term generous is fairly subjective, it's all relative. You've probably noticed this with money. Scenario #1: You show up to a birthday party with a $25 gift card, while everyone else comes with at least $100. Your gift is considered stingy. Scenario #2: You go to a party with the same $25, while everyone else arrives empty-handed. Your gift is viewed as generous. Ultimately, whether your gift is stingy or generous is determined almost entirely by the gifts of others.
The same principle holds true for transfer credit policies. A school with a generous policy accepts more traditional credit as well as more types of nontraditional credit than the other schools in its comparison group. So comparing three schools (Schools B, C, and D), if School B accepts 60 traditional credits and 30 nontraditional credits from standardized exams and noncollegiate learning, School C accepts 45 traditional credits and 20 nontraditional credits only from standardized exams, and School D accepts 30 traditional credits but 0 nontraditional credits, School B clearly has the most generous policy. Fairly easy, right?
When your comparison group is relatively small (less than 20 schools), you can look at all the policies together and spot the most generous without much trouble. However, this strategy isn't ideal for a large comparison group (20 or more schools). You'll spend hours and might make more than a few mistakes. Therefore, you should look at each school's policy individually and figure out whether or not the school accepts at least one to two years of credit (30 to 60 semester hours) from traditional sources and one year of credit (30 semester hours) from two or more types of nontraditional sources (standardized exams, noncollegiate learning, prior learning portfolios, and military training and experience). If it does, it has a generous transfer credit policy.
So how can you use this knowledge about generous transfer credit policies? It depends on your stage in the college search and selection process. If you haven't started either yet, evaluate dozens if not hundreds of colleges and select 10 to 15 with not only your must-haves but also generous transfer credit policies. Since you'll assess 20 or more schools, use the strategy for the large comparison group. That means, unless it's your dream school, eliminate any that don't accept at least one to two years of credit from traditional sources and one year of credit from two or more types of nontraditional sources. If your efforts are coming up short and you aren't looking to take classes on campus, research Excelsior College, Thomas Edison State College, and Charter Oak State College. In the test-for-credit world, these regionally accredited colleges are commonly referred to as the Big Three because they have the most liberal credit acceptance policies among postsecondary institutions. While they all offer online courses and their own credit-by-examination programs, their very low residency requirements mean you can transfer in most credit and earn little to none at their schools.
If you've already narrowed your selections to around 10 to 15 colleges, apply to the six to eight with the most generous transfer credit policies. Since you'll assess less than 20 schools in this case, employ the strategy for the small comparison group. In some circumstances, this task will be fairly quick and easy. Suppose, for example, seven of your top schools accept 45 traditional credits and 30 nontraditional credits from standardized exams and prior learning portfolios, while your remaining choices accept only 30 traditional credits and 15 nontraditional credits from standardized exams. Obviously, those in the first group have the more generous policies. In other instances, however, you'll need to put in additional effort. For example, suppose that all of your top schools accept roughly the same amount and type of credit. Instead of drawing straws or flipping a coin, take a closer look at each policy. Maybe one or more have tighter time restrictions on accepting transfer credit. Or higher minimum scores for exams for credit. Or pricier fees for transferring prior learning credits. Use these stipulations to make your final decision.
If you've formally accepted admission or are already enrolled in college, either embrace your school's transfer credit policy or switch schools. However, while you technically have these two options, transferring should ideally be a last resort. You should first get to know your college's policy inside and out. Read through it thoroughly in the course catalog, and discuss it at length with your academic advisor or a staff member in the registrar's office. Only after all of this research should you even consider leaving. And since you might lose a few credits during the transfer, you should only go to an institution that has a significantly better policy (i.e., it accepts 45 credits more — not 5 more) than your current school's.
Why does a generous transfer credit policy matter? You already know two reasons. Since credit acquired off campus is typically less costly and less time-consuming, you won't spend as much money or waste as much time. In addition, there is a third not as obvious but still as important advantage. By choosing a school with a generous transfer credit policy, there's a strong possibility that you'll feel valued by your educational provider. Some colleges and universities have the "my way or the highway" mentality. You can only attend their classes with their teachers in their classrooms. A school with a generous credit policy, however, often has a more student-centered focus. It doesn't only care about its balance sheet, it also cares about you. Even if it means it loses a year or two of your tuition, the school allows you to earn credit through other schools, exams, experiences, and so on. Its ultimate goal is for you to succeed, graduate, and become a proud alum.
The Projections
Forget staring into a crystal ball or having your palm read. You're about to see into your financial future without them. Or to be more exact, two possible futures. One where you graduate in four years and another where you graduate in less time.
Four-year graduation plan: With average tuition, room, and board costing between $11,052 and $42,419 per year, your college expenses could add up to around $44,208 to $169,676 (see Table 1). And since, on average, scholarships cover only 17 percent and grants 14 percent, you and your parents will have to foot the remainder of the bill out of your own pockets. Like 7 out of 10 graduates from public and private nonprofit colleges, you'll probably have to take out loans — which for the graduating class of 2013 averaged $28,400 per student — and spend the following 10 or more years paying off your debt.
Early graduation plan: Although most of the fast-track opportunities aren't free, the majority are fairly inexpensive. Consequently, by earning credit through them and thus graduating early, you'll reduce your overall tuition and fees as well as avoid a full four years of on-campus housing and meal costs. Depending on your total time in school, you could potentially save thousands to tens of thousands (see Table 2) and take on only a small amount of student debt, if any. After accepting your diploma, you can start full-time employment, affording you the possibility to live on your own, buy a new car, or splurge on a 60-inch LCD sooner than anticipated. You'll also have the funds to start a decent savings account or invest in retirement at an earlier age. Just by putting away $7,500 a year beginning at age 25 instead of 35, you'll have more than an additional $1,000,000 at age 65 with an 8 percent rate of return.
After reading both, you probably favor the early graduation plan over the four-year plan. However, fortune-telling isn't an exact science. Your actual savings will be contingent on your selected fast-track opportunities and your individual college costs. To get a more precise picture of your future, start by going to any of The Bottom Line segments. They'll show you the short- and long-term financial advantages of completing the FTO instead of taking the traditional course of action. The short-term advantages will be pretty straightforward. An Advanced Placement Exam worth three credits, for example, will cost only $91 compared to the $4,986 it would cost to get the same three credits from Rice University; a short-term savings of $4,895.
The long-term savings are where the math gets a bit more complicated, but also where the biggest payoffs come in. Taking a loan out for that $4,895 would mean going into debt and accruing interest on the loan until it's paid off. If it took you 10 years to pay off that $4,895 and the loan had a 5 percent interest rate, you'd actually end up paying $1,335 in interest on top of the initial $4,895, for a grand total of $6,230. (That number would be even greater if the loan was unsubsidized and interest accrued on it while you were in school.) But if you took the AP Exam instead and put the money you saved into a retirement account, you could actually let your money accrue compounding returns (make interest on interest). After 40 years with just 5 percent annual returns, your initial investment of $4,895 ($4,986 minus $91 for the AP Exam) would balloon to $29,566 in retirement! This is what people mean when they say, "Let your money work for you."
Sound pretty great? Well before you sign up for a dozen AP Exams, remember that your actual savings will be contingent not only on your selected FTOs but also on your individual cost of college. So while the tuition numbers in each of The Bottom Line segments are real 2013 — 2014 and 2014 — 2015 rates published by U.S. postsecondary institutions, they each only represent one college or university and don't factor in financial aid. Therefore, you will need to subtract the cost of the FTO from your cost of a class, semester, or year at your school (tuition minus need- or merit-based aid). (If you aren't enrolled in college yet and don't know the cost, use the Net Price Calculator on your intended college's website for a rough estimate.) Once you've found the difference, you can discover how much you'd save in interest by avoiding a student loan of that amount. Because of factors like capitalized interest, loan fees, minimum payments, and whether loans are subsidized or unsubsidized, calculating interest on student loans can be complicated. To get accurate interest amounts, I recommend that you use the FinAid Loan Calculator (www.finaid.org/calculators/loanpayments.phtml), which I used to calculate the interest figures that are included throughout this book. I also used and recommend the Dave Ramsey Investing Calculator (www.daveramsey.com/article/investing-calculator/lifeandmoney_investing) to determine how much you'd make in interest by investing the dollars you'd save by not borrowing loans.
Do these same calculations for all of the FTOs you select, and before you know it, you'll have a good idea of your financial future. Say for instance you decide to earn a total of 30 semester credits by completing FTO #6: College-Level Examination Program (CLEP) Exams, FTO #14: Distance Learning, and FTO #21: Noncollegiate Learning (Table 3) and you attend a college that costs you $35,000 per year ($45,000 in tuition and fees minus a $10,000 academic scholarship).
The difference between your cost of college ($35,000) and the cost of earning 30 credits through your selected FTOs ($1,963) is how much you'll save in the short term ($33,037). In the long term, one of two things could happen, depending on your financial situation. If you're like most students with little to no funds set aside for school, you'll save even more money. You could save $9,012 in interest by avoiding subsidized student loans totaling $33,037 (assuming each loan has a 5 percent interest rate and a term of 10 years). But if you're one of the lucky few who has a good chunk of dough stashed away, you'll actually make money. You could earn a whopping $199,543 in interest by investing that $33,037 in retirement accounts (assuming each investment has a 5 percent interest rate, compounded annually), and letting them grow for 40 years.
The (Mis)Perceptions
You've probably heard them. Those facts about college that are often nothing more than fiction. You'll gain 15 pounds during your freshman year. You'll receive a 4.0 GPA if your roommate dies. You'll be broke and starving. But the myths and misconceptions don't stop there. Early graduation has a few of its own. And just like your weight, grades, and bank account, many aren't completely accurate. Ready for a reality check? Below are some of the most popular myths debunked.
(Continues...)
Excerpted from College, Quicker by Kate Stephens. Copyright © 2015 Kate Stephens. Excerpted by permission of Sourcebooks, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
Table of Contents
Contents
Introduction,Section 1. Organize Your Early Graduation Plan: The Basics of Transfer Credit Policy,
Section 2. Utilize College-Level Coursework in High School,
Section 3. Standardize Your Testing,
Section 4. Optimize Your Time,
Section 5. Maximize Your College Experience,
Section 6. Capitalize on Nontraditional Opportunities,
Final Thoughts,
Appendices,
Appendix A: Which Fast-Track Opportunities Are Right for You?,
Appendix B: Sample Schedules,
Appendix C: Side-by-Side Exam Comparisons,
Appendix D: College Credit-by-Exam Learning Materials,
Appendix E: Trip Preparations,
Appendix F: Commonly Used Acronyms,
Acknowledgments,
About the Author,