She seems happy, but the stress of dad's unemployment could be hiding behind that smile. (Photo Credit: CC BY/Vicci/Moon Stars and Paper)

According to a new interdisciplinary academic study by the National Bureau of Economic Research, the stress of unemployment hits children hard. The study, entitled “Children Left Behind: The Effect of Statewide Job Loss On Student Achievement,” finds a correlation between community job loss and decreased performance on math and reading scores, reports the Huffington Post. This applies to the children of both the unemployed and the employed.

Significant effects on academic performance

In analyzing the math and reading test scores taken from fourth- and eighth-grade sample groups compiled by the National Center for Education Statistics, the study found that the stress of unemployment had significant effects. Specifically, for every 1 percent of a state’s working age population that is unemployed, the average math test score declined by 3 percent.

Study co-author Dr. Elizabeth Ananat of Duke University’s Public Policy and Economics department sees how uncertainty can create anxiety.

“Research has found that the stress and anxiety of losing your job is actually not so much greater than the stress of worrying about losing your job,” she said. “When there is a lot of job loss going on, the community gets depressed, and anxious. … That makes it harder for kids to learn.”

Growth recession indicates no real improvement

The current state of the U.S. labor market does not indicate to economic experts that a turnaround is in store, and thus the study authors expect the negative student achievement trend to continue. As many as 13.9 million Americans are officially unemployed, and another 8.5 million pursuing full-time work have had to settle for part-time jobs. Millions more face a kind of unemployment coma that keeps them from looking because of discouragement.

“When kids are at vulnerable times in their development, the impact of events like this can have long-lasting consequences,” Ananat said.

Low test scores in particular can remain on a child’s record for years, as numerous NBER studies have shown before.

‘The tip of the iceberg’

Study co-author Dr. Anna Gassman-Pines of Duke University said actions such as lowering class size can help counteract the negative effect of unemployment somewhat. However, many schools don’t have the economic means to make such changes.

Co-author Dr. Christina Gibson-Davis suggested that while the NBER’s test-score findings imply a problem, the implications likely run deeper.

“These are just test scores — not the greatest measure of the kids’ behavior,” Gibson Davis said. “This is probably the tip of the iceberg.”

Such scenarios as parents working multiple part-time jobs and multiple families living in the same household are no doubt issues that also contribute to the general sense of stress, experts believe.

Unemployment is a family affair

Sources

Huffington Post

National Bureau of Economic Research

More people question whether the cost of college is worth it, and there are compelling arguments on both sides. Image from Wikimedia Commons.

The past few months have featured a lot of coverage about the booming levels of student loans. Unlike other installment loans, there’s no way to discharge the debt, and many students are left holding the bag with fewer opportunities for decent employment. Many are questioning whether college is worth it.

College not worth it, says wide swaths of media

One may notice that similar columns appear on various news and opinion sites bearing a headline implying “College is not worth it” and some that assert the opposite. Billionaire Peter Thiel controversially offered anyone willing to drop out of or forgo college a personal loan from him of $100,000 to start a business. One of the people who took Thiel’s offer wrote a column for CNN stating college wasn’t worth it because it stifled entrepreneurial innovation. The author of a recent column on the Reuters website, John Wasik, contends that because tuition has risen 467 percent since 1986 whileinflation rose 106 percent, the cost of college may not be worth it because real wages are not keeping pace with inflation.

College pays off, but for whom?

College, though, does pay off for some people. In fact, the student loans pay particularly well for some people. The government, according to the Wall Street Journal, makes more money on student loans that are defaulted on than on loans that are paid religiously. Current estimates are that 85 percent of all defaulted students loans will end up being collected. Not only that, but the government expects to collect up to $1.22 on every dollar of student loans that are outstanding and in default. Credit card companies, by comparison, usually make about 10 percent of all defaulted debts back. The reason is that defaulting on student loans is different from other kinds of loans. The typical personal loan from a bank can be discharged in bankruptcy, and a house or car can be repossessed.

Average experience says college worth it

Going by the numbers, there appears to be a real incentive to attending a four-year institution and emerging with a bachelor’s degree. According to the Bureau of Labor Statistics, the college educated have an unemployment rate of 4.5 percent as of May of 2011. Those with only a high school diploma have an unemployment rate of 9.5 percent. According to the U.S. Census, men with a high school diploma or equivalency in 2009 earned on average $36,332 and women earned $22,868. Men with a bachelor’s degree earned, on average, $70,568 and women with a bachelor’s earned $42,128 on average, per year.

Sources

CNN

Reuters

Wall Street Journal

Bureau of Labor Statistics on Unemployment

Census page on income (requires Microsoft Excel to download tables)

A college education is a wonderful thing, but be sure to check out for-profit colleges thoroughly before taking out massive personal loans to attend. Image from Wikimedia Commons.

Potential students should be cautious if considering going to a for-profit, private college. Though college is usually worth taking out some personal loans to fund, the for-profit schools have higher default rates and are often at odds with state authorities. Some schools are worth it, but people should do their homework before attending.

The Donald may come under The Indictment

It was recently ann0unced that the New York Attorney General was beginning an inquiry concerning five companies that operate private, for-profit universities, according to CNN. One of the schools involved is the former Trump University, the small for-profit college launched by Donald Trump several years ago. The organization had to rename itself the Trump Entrepreneur Initiative after the New York Department of Education said it couldn’t call itself a school. The four other companies are, according to the New York Times, the Career Education Corporation, Corinthian Colleges, Bridgepoint Education and Lincoln Educational Services. No charges are being filed just yet, but these corporations and the schools they operate are being investigated.

Latest brouhaha between schools and states

State governments and the federal government are beginning to come down on for-profit universities, and some former students are not thrilled. Donald Trump is currently being sued in California by students of the now Trump Entrepreneur Initiative because they say they were misled. Corinthian’s colleges are also under investigation in Massachusetts, California, Florida and Georgia, according to Reuters. The Massachusetts Attorney General, according to the Boston Globe, is also investigating Apollo Group, the company that runs the University of Phoenix, as well as the Kaplan Career Institute, which is operated by the Washington Post Company. Smaller private colleges can be less stable than their megacorporate counterparts, as well. For instance, Alpine College in Spokane, Wash., recently closed its doors permanently in the middle of a term, leaving students holding the bag for thousands in personal loans and no degree to show for it.

Difficult to afford and impossible to pay for

One of the considerations one must make in choosing a university is cost. For-profit, private colleges can be incredibly expensive. In 2009, 15.2 percent of students who attended a for-profit college defaulted on their loans within a year, nearly twice the 7.3 percent of public university students who defaulted in the same period, according to Reuters. Private, not-for-profit schools had a default rate of 4.3 percent. For-profit college students also account for about half of student loan defaults overall. Many people have accused for-profit universities of fraudulent advertising and of not preparing students well enough for the job market, thus making it harder for them to meet their loan obligations. The Department of Education is currently trying to institute a rule that would deny federal loans to students attending a school with a 35 percent default rate or higher.

Sources

CNN

New York Times

Reuters on for profit default rates

Reuters on for profit school investigations

MSNBC

Boston Globe

Cambridge, in the United Kingdom, can be a less expensive, top quality education. Image: Flickr / wseltzer / CC-BY

The cost of college is steadily rising to a level many students can’t afford. Some families, however, are sending their students overseas because they are finding less expensive tuition. Exactly how good of a deal overseas college may be depends on several factors and the flexibility of the student’s family.

The cost of attending college stateside

Getting a post-secondary education can be very expensive. According to the College Board, public colleges cost between $7,605 and $11,990 per year in tuition. Private nonprofit colleges average $27,293. The cost of college is going up at a rate faster than health insurance, personal income or the consumer price index. The amount of available aid has also been declining. Average student loan debt has jumped to $19,200 per student. The top five most expensive universities in the world are all located in the United States.

Getting a deal overseas

Depending on the type of education a student wants to get, attending school overseas can be a smart financial decision. The exact price of overseas education can rise and fall with the exchange rate of the U.S. dollar, but in general, worldwide colleges are less expensive to attend. Top-ranked Cambridge university, for example, charges about $20,000 U.S. dollars for some degrees at current exchange rates. Some U.S. universities are opening campuses in other countries, and students can now attend New York University in Abu Dhabi or a variety of western colleges at Dubai International Academic City. While many college financial aid programs do not offer help to international students, U.S. federal grants can help. Many international programs are also intended to be completed in three years, which immediately cuts 25 percent off the cost of attending school.

Considerations for international students

Studying internationally can be a great way to save money, but there are many considerations that must be taken into account. First, families and students need to decide how to deal with changing exchange rates. Individual countries also have banking requirements that may limit how students operate, financially, in the country. International travel can be expensive, and the costs of flying back and forth should be figured into the cost of attending school. With careful planning, however, attending school internationally can mean getting a world-class education for less.

Sources

Cambridge University International information
Forbes
USA Today
NPR

It is getting harder for people to pay off student debts. Image from Wikimedia Commons.

It is getting harder for students to make payments on the loans they borrowed to pay for an education. The default rate on students’ personal loans is rising nationwide, and lenders, including the federal government, are not forgiving despite a tough economic climate.

Loan payments not as expensive as having to lawyer up

The U.S. government and other parties are becoming far more likely to sue someone who has defaulted on a personal loan obligation for education, according to USA Today. Some student loans are so far gone that the account has to be referred to the Department of Justice to collect, and the number of loans handed over to the government’s lawyers is going up. In 2006, 918 student loans in default were given to Justice attorneys to begin lawsuits. In 2010, that number increased to 5,393. A monthly loan payment can be expensive but not as expensive as having to  hire a lawyer to fight off a lawsuit, and student loans cannot be discharged in a bankruptcy.

Worth of college being debated

Because most students must borrow money to afford a college education, some are questioning whether a it is worth the trouble and cost. One in four people making payments on student loans are having trouble making their payments, according to the Los Angeles Times, and a college degree is not a guarantee that a person won’t wind up living paycheck to paycheck. As of the year 2008, two thirds of all students left college with some debt, and the average amount of student debt was $23,200. The total amount of all student debt in the United States is expected to reach $1 trillion during 2011, according to MSNBC, and there are whispers that student loans are the next bubble due to burst. About 7 percent of all student loans are reported to be in default, and because student loans can’t be discharged in bankruptcy, delinquent loans will perpetually harm a credit score.

Good news on the horizon

Students about to graduate may have an easier time getting hired out of college, according to CNBC. The National Association of Colleges and Employers reported recently that businesses were more likely to hire recent college graduates this year than in a similar survey from last year. The NACE reported an anticipated 19.3 expected increase in hiring for spring of 2011 and a 13.5 percent increase anticipated in the fall of 2011. Granted, any actual increases in hiring remain to be seen, but there are some indications that some people will have an easier time getting hired upon graduation.

Sources

USA Today

Los Angeles Times

MSNBC

CNBC

“So, you've started my 529 college savings plan, right?” (Photo Credit: CC BY-ND/Janielle Viggiano/Dr. Boyce Family Finance)

The earlier you begin to save for a child’s college education, the better. A 529 college savings plan enables you to watch money grow tax-free until it’s time for college. Particularly if a child doesn’t qualify for scholarships, a 529 plan can be quite useful.

Recession creates 529 bidding war

Many 529 plan administrators noticed that the recession had kept cash-strapped parents from contributing to their compound savings accounts. Hence, fees began to drop, which resulted in a 529 savings plan price war in which the consumer is the real winner. Money goes into conservative-mix, age-based portfolios – which function much like mutual funds – and the payoff comes when the child reaches college age. These 529 plans must have state sponsorship, and each state typically has more than one sponsored plan – some have as many as five.

However, cream tends to rise to the top. Here are some of the best 529 college savings plans available, according to consumer advocate Clark Howard:

Utah: Utah Educational Savings Plan Trust

Iowa: College Savings Iowa

New York: New York’s College Savings Program – Direct Sold

The best of the rest

Alaska: University of Alaska College Savings Plan

Arizona: Fidelity Arizona College Savings Plan

Arkansas: Gift College Investing Plan

California: The Scholarshare College Savings Plan

Colorado: Direct Portfolio College Savings Plan

Connecticut: Connecticut Higher Education Trust

Delaware: Delaware College Investment Plan

Georgia: Path2College 529 Plan

Idaho: Idaho College Savings Program (iDeal)

Illinois: Bright Start College Savings Program Direct Sold Plan

Indiana: College Choice 529 Direct Savings Plan

Kentucky: Kentucky Education Savings Plan Trust

Louisiana: Start Saving Program

Maine: Next Gen College Investing Plan – Client Direct Series

Maryland: College Savings Plans of Maryland – College Investment Plan

Massachusetts: U.Fund College Investing Plan

Michigan: Michigan Education Savings Program

Minnesota: Minnesota College Savings Plan

Mississippi: Mississippi Affordable College Savings Program

Missouri: MOST (Vanguard)

Nevada: The Vanguard 529 Savings Plan

New Hampshire: Unique College Investing Plan

New Mexico: The Education Plan’s College Savings Program – Direct Sold

North Carolina: North Carolina National College Savings Program (Vanguard)

North Dakota: College SAVE 529 Plan

Ohio: Ohio College Advantage 529 Savings Plan (Vanguard)

Oklahoma: Oklahoma College Savings Plan

Oregon: Oregon College Savings Plan (Vanguard)

Pennsylvania: Pennsylvania 529 Investment Plan

South Carolina: Future Scholar 529 College Savings Plan – Direct Sold

South Dakota: College Access 529 – Direct Sold

Texas: Texas College Savings Plan

Vermont: Vermont Higher Education Investment Plan

Virginia: Virginia Education Savings Trust

Choosing the best 529 plan for your child

Consider age-based portfolios, which start strong but gradually become more conservative as the goal comes into view (the child’s age approaches 18). Another option is a Coverdell Education Savings Account, where money can be saved at a tax advantage either for college or private school grades 1 through 12. The annual limit is $2,000 and you have to manage the investment package yourself. Coverdells do not require state sponsorship. You can sign up for a Coverdell at most any bank or broker. Independent 529 plans are also available, where tuition at participating colleges are paid at current prices, to guard against the inevitable future price hikes.

Sources

Clark Howard

Private College 529 Plan

Comparing 529 college savings plans

With the right college major in place to maximize earnings, anyone can live like a king or queen. (Photo Credit: CC BY-ND/Linda/The Paper Collector)

The Bureau of Labor Statistics keeps track of the average starting salaries from various career paths. In order to maximize your earning potential, forget majors like English and consider the top 10 highest paying college majors in the U.S., advises Education-Portal.com. Salaries depicted here reflect annual pay for bachelor’s graduates without an advanced degree.

Grease the rails to cash: Become a petroleum engineer

Whether it’s building tools to improve oil and gasoline production or consulting on projects for petroleum companies, becoming a petroleum engineer pays. The median starting salary is $93,000, which increases to a median of $157,000 by mid-career (15 years, approximately).

Taking off with an aerospace engineering career

Air and space travel will be in your hands with an aerospace engineering degree. Operate and troubleshoot flight simulators and navigational instruments. Analyze flight data and apply it to the design of future aircraft. If you go for this degree, you’ll earn $59,400 to start, $108,000 by mid-career.

Better living through chemical engineering

Plastics, synthetic rubber, detergents, paper, gasoline and more are manufactured and made better by chemical engineers, who use techniques from chemistry, engineering and physics to make the products we depend upon every day. Starting median salary is $64,800, $108,000 by mid-career.

Get turned on to electrical engineering

Electrical equipment and systems for industry, government and science are the domain of electrical engineers. Median starting pay is $60,800 and $104,000 by mid-career.

Nuclear engineering is a tough job

The recent disaster in Japan underscores just how difficult it can be to work in nuclear engineering, but the intellectual challenges and pay are worth the trouble. Controlling and releasing nuclear energy and waste remain significant in the quest to power the world. Earn $63,900 to start, and in 15 years, the median salary is $104,000.

Learn applied mathematics

Applied mathematics apply to myriad career fields, including data mining, economics, environmental science and climatology, says the Society for Industrial and Applied Mathematics. The median starting salary is $56,400, which goes up to about $101,000 by mid-career.

Biomedical engineering continues the science/tech trend

Biotechnology and health care are huge growth industries right now, considering the number of retiring baby boomers in the U.S. Creating medical information systems, building artificial limbs and organs and managing care delivery are vital processes. Salary begins at $54,800 and hits $101,000 by mid-career.

The physics of a career

While advanced positions typically require a graduate degree, a bachelor’s degree in physics can prepare graduates for technician and research assistant positions. Pay starts at $50,700 and reaches $99,600 by mid-career.

Computer engineering: Start high and plateau

While a computer engineering degree may enable a graduate to start high at $61,200 median, the mid-career range ($99,500) indicates that salaries plateau quickly. Plus, there’s a great deal of competition due to the steady supply of graduates. Luckily, the demand isn’t going to go away.

Want to know money? Try economics

An economics degree applies to a variety of business and financial fields, although a master’s or doctorate are typically needed to secure an economic analyst position in business or government. Pay begins at $48,800 and hits $97,800 after 15 years.

Sources

Ask the Advisor

Bureau of Labor Statistics

Education-Portal.com

Or you could follow your dreams and be poor

Ensure her education today with free term life insurance. (Photo Credit: CC BY/Vicci/Moon, Stars and Paper)

Life insurance can provide loved ones with financial security in the event of the policyholder’s death. For most people, term life insurance (aka term assurance) is among the most affordable packages, as low as a few hundred dollars per year for $250,000 worth of coverage. For customers of MassMutual Financial Group of Massachusetts, however, the price is even better. According to Bankrate.com, MassMutual is currently offering free term life insurance.

Get free term life insurance while you’re healthy

Life insurance experts advise potential customers that if they’re interested in a policy, the time to buy is when you’re young and healthy, as rates are significantly lower. If a person has dependents, life insurance is almost always a good idea.

In general, term life insurance provides coverage at a fixed rate for a limited period of time – the term period. At the end of the term, coverage expires unless additional coverage is obtained. If the insured dies mid-term, death benefits are paid to the beneficiary.

Take the MassMutual LifeBridge to free term life insurance

MassMutual Financial Group is willing to set aside $50,000 in free term life insurance that can be applied toward the education of the policyholder’s children in the event of the policyholder’s untimely death. This may seem too good to be true, but Bankrate.com says MassMutual is the real deal. Provided a person meets the qualifications for the free term life insurance policy through MassMutual’s LifeBridge program, the money can be there for the future.

The $50,000 is placed in a 10-year trust. If the policyholder dies during the life insurance term, benefits are paid directly toward children’s tuition, fees, books and on-campus room and board, whether the children are in pre-school, private school, trade school or college. After the policyholder’s death, the children have either 10 years or until age 35 to use the trust money, whichever is later.

Free term life insurance requirements

Those interested in MassMutual’s LifeBridge life insurance program must meet the following qualifications:

• Be at least 19 but not older than 42
• Be the parent or legal guardian of one or more dependent children younger than 18
• Be a permanent legal resident of the U.S.
• Be employed full or part time and have a family income between $10,000 and $40,000
• Be the only parent or guardian in your household to apply
• Be in good health in the view of MassMutual underwriters
• Have not been diagnosed with heart disease, cancer, HIV or Type 1 diabetes
• Have not abused drugs or alcohol at any time within the past 10 years
• Are not currently on probation

Blood and urine tests are required before free term life insurance approval. Suicide within two years of the policy’s effective date voids the policy. Additional information is available at MassMutual Financial Group’s website.

Source

Bankrate.com

MassMutual Financial Group

MassMutual LifeBridge brochure

MassMutual LifeBridge FAQ

Wikipedia

MassMutual LifeBridge program testimonial

Younger people, like recent college graduates, are optimistic about their future, even though they expect to not be as well off as their parents. Photo Credit: apermanentwreck/Flickr.com/CC-BY-SA

People of college student age are expecting to be less wealthy than their parents but more satisfied with life, according to a recent survey. An Associated Press survey of people ages 18 to 24 revealed that younger people, especially those saddled with higher amounts of student debt, expect a lower quality of life than their parents.

Younger generation expects less money, more happiness

The college age set is less optimistic about how much money the future may bring but is confident that the long term course of their lives won’t be doom and gloom, according to MSNBC. A poll conducted by the Associated Press and Viacom of 18- to 24-year-old people found that 40 percent of survey subjects thought that traditional goals like raising a family and purchasing a home would be more difficult than it was for their parents. About 25 percent believed that life would be easier for them than their parents. About 90 percent of the survey subjects believed they would eventually find a career they find fulfilling.

Student debt increases the burden

The people in the AP survey indicated that they believed making a living would be harder because of increased costs. Among costs steadily increasing for people in that age group is student debt. The average college graduate has about $24,000 in loan debt, according to the New York Times, which at an interest rate of 6.8 percent demands a payment of $276 per month, and student loans cannot be discharged in bankruptcy. The Department of Education reports that 65.6 percent of all undergraduates from 2007 to 2008 received some sort of financial aid, and 38.5 percent of all undergraduates had student loans of some sort. The Department of Education found that 30 percent of all undergraduates took out subsidized Stafford loans and 22 percent borrowed non-subsidized Stafford loans.

Investment that does pay off

The average wage earner with a college degree grosses about $53,000 per year, according to the Bureau of Labor Statistics, but few people earn that much upon graduation. A college degree is not a guarantee of immediately falling into a healthy income, but it increases the likelihood that a person will earn a solid middle class income during their lifetime. People with college degrees also tend to have lower rates of unemployment; Americans with bachelor’s degrees had a 4 percent lower rate of unemployment than those with only a high school diploma in 2009. However, the cost of the security that a college diploma offers is going up.

Sources

MSNBC

Department of Education

New York Times

Bureau of Labor Statistics

Every public school teacher in Detroit, Mich., will be laid off in July if severe fiscal issues aren't resolved soon. Image from Wikimedia Commons.

Every single public school teacher employed by the city of Detroit is being laid off, as well as all administrators. Starting July 29, no educator employed by the Motor City will have a job because of the deeply troubled finances of the city. People have been fleeing Detroit steadily for the past decade.

Motor City schools $327 million in debt

The public school system in the city of Detroit, Mich., is so plagued by financial problems that the city is being forced to lay off every single one of its teachers and school administrators, according to CNN. The Detroit School District has a $327 million deficit and issued emergency bonds in March to raise more than $230 million to keep itself functioning until August of this year. Though it was able to raise half a year’s budget, it was not sufficient, forcing drastic measures to be taken. First on the firing line was staff salaries. All 5,714 teachers in Detroit are receiving layoff notices as well as all school administrators. Effective on July 29, the city of Detroit will not employ a single teacher nor principal.

Urban decay writ large

Detroit, once a sprawling metropolis and industrial powerhouse, has been losing people steadily for more than a decade. Nearly 25 percent of its population has left the city in the past 10 years, leaving Detroit with the same number of people there were in 1910. A third of the city, according to MSNBC, sits vacant. The school district has 10,000 fewer students than in 2001. In March, when the Detroit School District went into crisis mode, a law titled Public Act 4 was passed by the Michigan legislature that granted broad powers to emergency financial managers hired by state and local governments. The law is being utilized by Robert Bobb, the emergency financial manager of Detroit’s public schools, as an emergency measure.

Not many will lose their jobs

Not all teachers who receive a layoff notice will actually end up being fired. Bobb, the emergency financial manager, is said to be restructuring Detroit schools in order to bring them in line with declining enrollment. However, he is also going to restructure the collective bargaining agreement that exists between the city and the Detroit Federation of Teachers. The district and the union reached an agreement in 2009 that cut back on teacher salaries and health benefits, which the union suspects Bobb of trying to circumvent. Detroit also is facing the possibility of a state takeover, according to Reuters, if it cannot get its fiscal issues under control. Detroit already has a $155 million deficit, which could grow to $1.2 billion by the fiscal year of 2015, which begins in July 2014. An emergency financial manager could be appointed by the state, who will take the city under direct control just like Bobb has done with Detroit schools.

Sources

CNN

MSNBC

Reuters

Teach him to save, and he'll be on his way to being a smart consumer. (Photo Credit: CC BY-ND/Consider the Ant)

Many parents have wrestled with whether they should pay their kids for good grades. Some look at a little cash as an extra incentive to excel, while others believe that it sends the wrong message to children about the value of both money and education. However, studies suggest that there is a golden middle path that is motivating and teaches children lifelong financial lessons.

‘School is your job’

Many parents who support the idea that paying for grades is productive argue that school is a child’s vo0cation. It’s a kid’s job to learn as much as possible to prepare for the endless education that is life. As such, paying for performance is like an employer compensating an employee.

The opposing side to this argument, however, is that not all jobs in life net monetary rewards and that children should strive for good grades simply for personal growth. Does withholding cash for grades prepare children for the joy of unpaid internships, where experience is its own reward? Or are such jobs nothing more than volunteered slavery to a corporation, where the game of “paying your dues” obscures the truth that labor is being exploited?

Pay for good grades programs have been instituted in a number of public school systems to good effect, reports the New York Times. Yet controversy has remained. While Urban League President Darwin Davis praised such efforts for mirroring the reward systems of U.S. capitalist society, Manhattan Institute fellow Sol Stern called it “an insult to every hard-working parent.”

Never work for free

Teaching children they should be properly compensated for hard work and achievement is one of the ways parents can help instill an entrepreneurial spirit. In short, the lesson is that if you’re good at something, never do it for free. Yet for such a principle to sink into a child’s mind, it must be accompanied by knowledge regarding the value of money. Here’s a crash course in teaching kids the value of money, courtesy of Money Crashers:

1. Cash is king. If you’re dealing with teenagers, do not give them gift cards or prepaid debit card as a reward for grades. The tangible feeling of handling dollars and cents as they purchase the things they want will help them understand the finite nature of money and help them visualize what it’s like to develop a savings.
2. Get a job. In addition to earning money for good grades, if kids need more money, they should find part-time employment. For younger kids who aren’t already receiving an allowance, this could be doing yardwork for neighbors. For teenagers who are old enough, it could mean a paper route or other part-time job. The sense of accomplishment gained from earning money goes a long way toward teaching kids to value it.
3. Teach kids about giving. Doing good in society can take many forms, donating time and/or money. Developing a healthy sense of selflessness early in life can help a child build an appreciation for money, education and the value of life in general.

Sources

Money Crashers

New York Times

Exxon is paying high school students for grades

College graduates can use internships as a fast track to career success. (Photo Credit: CC BY-ND/NRCSA)

Most colleges do not effectively prepare graduates to take on the job market, thanks to under-funded, under-staffed, under-motivated college career centers. Students must find motivation within themselves, but it never hurts to have parents who take an active role. According to Fox Business, parents can be instrumental in helping students obtain internships after college.

Internships for college grads: A welcome ROI

Parents want their sons and daughters to do something with their college education, if for no other reason than to produce a return on their tuition investment. Yet most colleges do not take an active role in connecting graduates with jobs, and most students who have lived in the collegiate social incubator for four years or more aren’t in the career mindset upon graduation. Thus, parents have their work cut out for them.

A student internship is a great way to test drive a career field to determine whether it’s an appropriate choice, plus it can give a student an inside track to a paid position. Here are a few things parents can do to help grads land an internship opportunity.

Facebook can never replace face time

While LinkedIn, Facebook and other forms of online social networking are valuable, nothing can replace face-to-face time with a potential employer. Parents can aid children (long before they’re graduating from college) by teaching them how to network in person. Making a personal connection with someone cuts straight through the contact lists and sound bites. Hiring managers and industry organizations will remember the “go-getters.” As Woody Allen once said, “Eighty percent of success is just showing up” – and that means showing up in person.

Don’t discard online social media in the process, suggests Fox Business. Social recruiting apps on Facebook like Branch Out and Career Amp are tools any social media-savvy student can use. Internships.com is another site to visit, and LinkedIn has become increasingly popular as a professional online networking tool.

Call in some favors

The by-product of real social networking is having people in important positions whom you can call for favors. Parents should not be afraid to call people they know if it means helping their graduates secure an internship.

Make sure your grad knows the ‘Big Five’

In order to become a successful intern, the student job blog I Am Next suggests applicants apply the following:

1. Sell yourself to win over your supervisor.
2. Work hard and pay your dues.
3. Understand what you’re after.
4. Appreciate the lessons learned from your supervisor.
5. Don’t leave the internship without a letter of recommendation.

Sources

Fox Business

I Am Next

Student internships are a learning opportunity

The cost of attending a university is going to keep increasing, which means high student debt will likely become the norm. Image from Wikimedia Commons.

Budgets are getting squeezed in practically every state in the U.S. In an increasingly conservative fiscal climate, one of the biggest items on the chopping block nationwide is education funding, which is leading to drastically less funding for state universities. The cost of higher education is likely to get higher as many universities will need tuition hikes to keep up.

Higher education budgets slashed in 43 states

A total of 43 states have had to cut funding for higher education during the recession of the past few years, according to MSNBC, and it is not a trend that will likely be reversing soon. During times of fiscal hardship, higher education is one of the first spending items on a budget to find itself in the cross hairs of legislators — especially because raising taxes is tantamount to political suicide. As a result of deep cuts to state funds for higher eduction and fewer federal funds to go around, tuition hikes will not be far behind. More students will have to take out considerably larger personal loans for a post-secondary education.

Federal funding slashed

Legislators at the federal level are also focusing on spending cuts, and federal funding for higher education has fallen under the ax in recent months. Federal Pell Grants, which provide financial aid based on need, could be reduced by up to $5.7 billion in the 2012 national budget, according to the Christian Science Monitor. The maximum amount of the Pell could be reduced to just more than $4,000 per year, which is not enough to cover the cost of tuition at most four year universities. The cost of attending one year at a public, non-profit university is $16,140, according to College Board.

Harder to go to college

College Board, the educational organization that creates and administers the Scholastic Aptitude Test (SAT), asserts that enrollment at public universities has increased by 33 percent in the last 10 years. Tuition at public four-year universities has increased by at least 6 percent per year since 2001, and students will bear the brunt of those increases. The installment loans needed to pay for school will be larger, and the sheer cost of attending college may become a disincentive.

Sources

Christian Science Monitor

MSNBC

College Board report on Trends in College Pricing

Finding jobs for college graduates requires perspiration. (Photo Credit: CC BY-ND/Kufarms/The HR Farmer)

College graduates face a tough job market, particularly in the wake of the recession. Experienced, unemployed workers are clamoring for work, which means that finding jobs for graduates requires more insight. With job hunting tips for college grads in the quiver, however, the journey becomes easier.

Jobs for grads: Answering the big questions

Finding jobs for college graduates (or “jobs 4 grads” in Google-speak, which is how many people start the job search) requires the job hunter to face some difficult questions. Should you follow an employed significant other to a new city if you don’t have a job lined up? How do you negotiate salary? Is accepting an unpaid internship a wise move? A host of experts sounded off on these matters through Automated Trader.

Can’t live on love

Regarding moving with a significant other but no job lined up, Jason Levin of career site Vault.com says while love is lovely, it can be fleeting.

“Being kicked out on the street with no money and no friends is (ugly),” said Levin.

The risk may be too great, unless you have a plan when it comes to the bills. Without an exit plan, the consequences can be dire.

Inexperienced negotiators, know your market

Life after college tends to magnify just how little real world experience a graduate may possess. Thus, the college graduate won’t have the hard ammunition to negotiate pay. An understanding of the job market gives the graduate a frame of reference. Viewing government data regarding average starting salary ahead of time can help graduates protect their financial interests so they don’t need loans — not bad credit loans, not payday loans. Even if there’s no flexibility in an employer’s offer, it doesn’t hurt to inquire. At worst, a lower-paying job could pay off in learning opportunities.

“If you feel like the offer is lower than expected, you can certainly say something,” Levin said. “You can mention that you did your research and that a position with an undergrad degree should receive X or Y.”

Are unpaid internships a good idea?

Charles Purdy of Monster.com points out that while the recession has sent many companies scrambling for unpaid interns, the benefits can be great for students on that post-college job hunt. Just make sure you can afford to work for the experience before signing up.

“It’s important for younger people to take a long-term view of their career and consider the benefits of an internship — experience, networking, and so on — over immediate financial gain,” Purdy said.

Waiting until after graduate school

So long as a college student has a clear career goal in mind, obtaining a graduate degree can be beneficial. Greater income isn’t guaranteed, but it certainly won’t hurt your chances. The U.S. Census Bureau found in 2004 that college grads with master’s degrees earned 23 percent more over their careers. A more advanced degree also gives students the chance to build their knowledge base before entering the job market.

Nailing the interview

For a straightforward guide to how to nail the job interview, sites like Worksmart California are a great reference.

Sources

Automated Trader

eHow

Worksmart California

Some schools are choosing to opt-out of federal funding, which will make getting to graduation even more expensive. Image: Flickr / jamesalmond / CC-BY-SA

For most post-secondary schools in the United States, federal student loans are a large portion of funding. New rules enacted last year set limits on the percentage of loans that can go into default. Some schools are considering rejecting federal loans all together, even though they are not hitting this limit.

The federal student aid program

The federal government provides several programs to help students finance their education. Federal grants do not need to be paid back – they are simply money given to students to help their education. Federal student loans, on the other hand, are low-interest installment loans backed by the government that students must pay back after they leave school. The federal student loan program guarantees billions of dollars in loans each year. The American Recovery and Reinvestment Act committed another $195 billion to purchase even more loans.

New rules on student loan defaults

In late 2010, the Government Accountability Office suggested new rules intended to target for-profit schools. Called the “gainful employment” rule, the amount of debt a student carries is measured against their income after graduation. If that ratio is consistently high, the government reconsiders the school’s eligibility for receiving loans. The rule is also tripped if a high proportion of students default on their loans after graduation. In short, any school that turn out graduates that cannot make enough money to pay back loans would no longer qualify for these personal loans.

Pulling out of the student loan program

Though the new rules are intended to cut for-profit schools out of the federal student loan program, other schools could get caught in the net. Small community colleges often cater to underserved communities — groups that take out a higher proportion of their income in student loan debt. Student loans cannot be written off by bankruptcy, and if the student eventually defaults, the school is responsible for at least a portion of the debt. Facing these realities, many small schools are considering pulling themselves out of the federal student loan program entirely.

What no federal loans could mean

For both for-profit and community colleges, pulling out of the federal student loan program could have wide-ranging effects. Students who wish to attend school would still qualify for higher-rate, more-difficult-to-qualify-for federal loans. This means students will have to find co-signers or outside funding for their average $23,000 in educational loan debt. For the average taxpayer, this means fewer people in college and fewer federal student loans.

Sources

News Channel 5
New York Times
Miami Herald
FinAid.org

Student loans for middle-income students are available for those willing to put in the legwork. (Photo Credit: CC BY-ND/Federal Student Loan Debt)

Financial aid is a necessity for many low- to middle-income students and their families. Thankfully, there are student loan programs designed specifically for people who fall within the low- to middle-income brackets. Banknote suggests those looking for ways to pay for college use this three-pronged attack.

Aim high for need-based qualification

If a student doesn’t qualify for student loans at one college, it is quite possible that student could qualify at a more expensive university. Sally Donahue, Harvard’s director of financial aid, points out to Banknote that need-based financial aid is contingent upon income and assets, relative to admission costs. Thus, not qualifying at a $20,000-per-year school doesn’t mean a $60,000-per-year option is out of the question.

“We have probably 600 families with incomes over $180,000 receiving grant aid right now, and that’s usually because they have two or three students in high-cost colleges,” says Donahue. “It just depends on where you go.”

Harvard happens to be a “no-loan” school that enables students to obtain the necessary financial aid via grants, scholarships and work-study programs. The Institute for College Access and Success indicates that there are more than 50 such no-loan schools across the U.S. from which to choose. Keep in mind that most require family income to be below $50,000 annually.

Tax credits offer long-term help

Carol Stack, co-author of “The Financial Aid Handbook,” claims that 2011 is a banner year for student loan tax credits. Specifically, the American Opportunity Credit is one to watch. Extended through 2012, this credit can mean an extra $2,500 for families, as long as at least $4,000 is spent each year on college-related expenses. Intended for the first four years of post-secondary education, the American Opportunity Credit applies 100 percent to the first $2,000 spent during the tax year, and 24 percent to the next $2,000. At least half-time enrollment is required and family income must not exceed $160,000 per year. Check with the IRS for more information.

The Lifetime Learning Credit is great for part-time students and those who attend college for more than four years. Approved college expenses up to $10,000 are reimbursed at a 20 percent clip.

Good aid for good students

Merit-based aid exists for men and women who may not qualify for need-based student loans, grants or scholarships. Collegiate financial aid search engines, like College Navigator and Meritaid.com, state that $11 billion in merit-based aid is distributed annually. Thus, there are plenty of opportunities for good students to take advantage. Chris Long from Cappex, a Meritaid.com sister company, advises students to find schools outside their geographic area that would benefit from their test scores and GPA.

“You should also apply to schools where you’re at the upper end of the academic scale. You’re going to be very attractive to those schools because they want to increase their average GPA, SAT and ACT (scores),” he said.

Sources

Bankrate

Cappex

College Navigator

IRS.gov

Considering scholarships and grants

The "Texas white man scholarship" offers $500 to individuals with at least 25 percent Caucasian heritage and a 3.0 GPA. Image: Flickr / MoneyBlogNewz / CC-BY

According to the newest Census reports, within the next decade the minority in the United States will likely be those who are “non-Hispanic white.” The new Former Majority Association for Equality is responding to this by offering a Texas “white men scholarship.” The scholarship gives $500 to applicants who are at least 25 percent non-Hispanic Caucasian.

Beginnings of the Former Majority Association for Equality

The Former Majority Association was started by Texas State University student Colby Bohannon. Bohannon is an Iraq war veteran who was trying to find additional ways to fund his education. When he discovered that most scholarships were offered to women or individuals who were not Caucasian, he got together with friends to start the association.

$500 Texas white men scholarship

The small scholarships offered by the FMAE can be claimed by anyone with 25 percent non-Hispanic white heritage with a 3.0 grade point average. According to the FMAE website, the group “has no political aspirations, financial agenda or radical social philosophies whatsoever.” The group simply aims to fill the gap in available scholarships for white men. The $500 Texas white men scholarship is accepted by schools the same way other scholarships targeted toward specific groups are accepted.

The changing face of America

The FMAE scholarship, like other “white men scholarships” offered before it, seeks to highlight the fact that white men are not truly a majority in the United States any longer. Non-whites account for 48.6 percent of births in the United States, and women account for approximately 55 percent of the population, according to the latest Census figures. Some say that these changing statistics mean that scholarships based on race or gender should be eliminated entirely; others argue the criteria should be adjusted to match current statistics.

Sources

Census.gov (PDF)
Wall Street Journal
Reuters

Providence, R.I., may be short 1,926 public school teachers by quarter's end. (Photo Credit: CC BY-SA/Juliancolton/Wikipedia)

At the end of the current winter public school quarter, every one of the 1,926 teachers in Providence, R.I., schools will be dismissed, reports the Providence Journal. The desperate move on the part of the Providence School Board will culminate in a vote that insiders believe will favor teacher dismissal as a means of addressing a $40 million deficit. The budget deadline for Providence schools is March 1.

Providence schools issued pink slips en masse before

Last year, Central Falls High School in the Providence area dismissed 88 teachers because students weren’t meeting standardized test score requirements. Yet the scale of the Providence School Board’s upcoming move is unprecedented. In accordance with state law, Superintendent of Providence Schools Tom Brady told all teachers and staff via e-mail that the move is a “precautionary action” designed to address the $40 million shortfall in the 2011-2012 budget.

“Since the full extent of the potential cuts to the school budget have yet to be determined, issuing a dismissal letter to all teachers was necessary to give the mayor, the School Board and the district maximum flexibility to consider every cost savings option, including reductions in staff,” said Brady.

Maximum flexibility to alienate the voting public

The fact that the Providence School Board’s blanket action may not actually dismiss all Providence teachers offered little consolation to teachers’ union leadership.

“This is beyond insane,” said Providence Teachers Union President Steve Smith. “Let’s create the most chaos and the highest level of anxiety in a district where teachers are already under unbelievable stress. Now I know how the United States State Department felt on Dec. 7 , 1941,” the day of the Pearl Harbor bombings.

Providence Mayor Angel Taveras told local press that the unsettled state of city finances, coupled with the March 1 deadline, led to the decision to issue the statement that all Providence teachers would be fired. It was a move that provided the school board and Providence city government with “maximum flexibility,” but minimum public sentiment.

Blowing the student-teacher ratio out of the water

Smith exclaimed that sending pink slips to all Providence public school teachers is senseless if the school district is still committed to educating its students, regardless of the budget problem.

“You have so many students,” he said. “You need so many teachers. You have a student-teacher ratio of 26 to 1. Do the math.”

Sources

CNN

Providence Journal

‘Exciting times in Rhode Island public education’

http://youtube.com/watch?v=wOCJ2Jnu4KY

Notre Dame University has been hit with a second charge of under-investigating sexual assault. Image: Flickr / paul_everett82 / CC-BY

Notre Dame is a prestigious Catholic University. However, for the second time in a few months, Notre Dame has a sex assault complaint, and the families are claiming it was under-investigated. The Education Department has stepped in to investigate Notre Dame’s actions.

Suicide follows first Notre Dame sex assault complaint

The Notre Dame police department is a service that covers all of Notre Dame, Indiana. The city is home to both Notre Dame University and St. Mary’s University. On Sept. 10, 2010, 19-year-old Elizabeth Seeberg committed suicide after complaining that Notre Dame was not “aggressively” pursuing her complaint of sexual assault. A second family, who has asked to remain anonymous, has spoken out against Notre Dame. The family members claim that their daughter’s complaint has been “buried” in order to protect Notre Dame University. The United States Department of Education has opened an inquiry into the investigation processes of Notre Dame.

The second sex assault complaint against Notre Dame

The second complaint of under-investigated sexual assault was made to the media only recently. The alleged attack took place on Sept. 4, and the victim met with police and indicated she wanted to press charges on Sept. 11. Within the last week, Prosecutor Michael Dvorak announced that the case would not be prosecuted. Dvorak indicated that there was simply a lack of evidence in the case. In both cases, the accused attacker was not interviewed for almost two weeks.

Sexual assault in higher education

Higher education institutions — colleges and universities — face a very difficult challenge with sexual assault. Notre Dame’s second sex assault complaint includes an admission that the victim had been drinking before the attack. Though drinking in no way justifies or excuses sexual assault, it often complicates the question of consent. In both of the Notre Dame sex assault complaints, the alleged attacker indicated that the encounters were consensual. A statement released by Notre Dame indicated:

“We regret that some are critical of our handling of sexual misconduct allegations, and we understand the pain these families are experiencing. At the same time, we stand behind the thoroughness, integrity and objectivity of our investigations, as well as the comprehensive services available to students who are subjected to sexual misconduct.”

Sources

Chicago Tribune
ABC News

The 130-year old oak trees at Toomer's Corner have been deliberately poisoned. Image: Flickr / booleansplit / CC-BY

Auburn University’s Toomer’s Corner has long been the location of celebration for the school. The Auburn trees were poisoned by a vandal, however. The Toomer’s corner tree poisoning arrest has been made, but even Dow Chemical isn’t sure it can save the giant, 130-year-old oak trees.

Auburn trees poisoned

Toomer’s corner on the Auburn campus is a grove of 130-year-old oak trees that serves as the center of many celebrations. After the Auburn football team wins, it is tradition to cover the trees with toilet paper. After the Iron Bowl, a game Auburn won, a national radio show received a disturbing phone call. A man said he had poisoned the Auburn trees with 80DF, also known as tebuthiuron. The caller claimed he had done this because he did not approve of the Auburn students celebrating.

Toomer’s corner tree poisoning arrest made

The day after the Paul Finebaum Show aired the call claiming that the Auburn trees were poisoned, police began investigating. This morning, Harvey Almorn Updyke was arrested and held on $50,000 bond on a charge of criminal mischief. During the call-in show, the caller had identified himself as “Al from Dadeville.” If Updyke is convicted of the Auburn tree poisoning he could be facing between one and 10 years in prison and fines for his “prank.”

Dow chemical trying to help Toomer’s corner trees

The chemical used to poison the Toomer’s Corner oak trees was a Dow Chemical product. The herbicide is “very lethal” at .78 parts per million, and university labs found up to 65 times that amount in the soil around the trees. Trenches are being dug around the trees for activated charcoal to be placed in the soil, and Dow Chemical is trying to find ways to protect other plants in the park. The likelihood that the poisoned Auburn trees will be saved, however, is unfortunately low.

Sources

WSFA
Bleacher Report