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SAT or ACT? The Choice is Clear

Tue, 17 Feb 2026 20:30:08 GMT

For years, high school juniors have had to decide on which standardized college admissions test to take. For some, the choice is made by their states. More than 25 states require either the SAT or ACT as a part of their state-wide testing requirements or as a requirement for graduation. For others, it’s a question of access; one test may be administered by their district while the other is not. Many students have the option of taking either exam, and may take practice exams for both tests to see on which one they get the higher score.

The two tests have always been a little different. The SAT reading sections feature short paragraph readings while the ACT reading sections feature longer passages with more questions. The math sections differ as well. The SAT math section focuses more heavily on algebra, while the ACT exam features more geometry and trigonometry. The SAT requires students to work at a faster pace to complete all of the math questions than the ACT does.

In 2024, the College Board changed the structure of the SAT. The test is now digital and adaptive. Students complete a set of basic questions for each of the three core tests and then, depending on how they do, are shifted to one of two advanced sections. Students that scored higher on the basic questions get the harder advanced section and can achieve higher SAT scores. According to the College Board, this allows students to take a much shorter exam with equal predictive ability.

In 2025, ACT began to unroll their new, Enhanced ACT digital platform. This version features three core tests – English, Math and Reading, with two optional tests - Science and Writing.

But while the digital SAT is empirically equivalent to the old SAT, the Enhanced ACT is fundamentally different from the legacy ACT exam.

First, there are less questions (175 core questions vs 108 on the Enhanced ACT), but unlike the SAT where there is a predictive component, all students answer the same questions. The enhanced ACT test is longer than 108 questions, it’s actually 134 questions long. This is because each section has embedded field-test questions (FTs). These experimental questions do not count in the final scoring, instead they are being tested for future ACT exams.

There are two very important implications because of the FT questions. The first is a matter of numbers. There are so few questions for the core sections that there is no margin of error. Miss a question, you drop by at least one point on the section score. In fact, there aren’t enough questions to allow certain scores at all. If you miss two questions on the English section of the Enhanced ACT, you score a 35 for the section. Miss one more question, and your score drops to a 33. It’s simply not possible to get a 34. Or a 30. In the Reading section, you can’t score a 33, a 27 or a 19 and in the optional Science section, you can’t get a 13. Because there is such a premium on correctly answering each question, Compass Education recommends the following strategy for taking the ACT exam:

The takeaway for students opting for the ACT is clear: make sure that they are going into official exams with an airtight command of strategies and timing to avoid careless mistakes and excessive amounts of guessing. And plan on a retest or two as a safeguard against unlucky guessing.

The second problem occurs when students guess, especially if they don’t have enough time to complete all of the questions on the exam. There are four passages in the Reading section, each with 9 questions. One of those passages is an FT and won’t count. If a student runs out of time and chooses to guess at one of the passage questions, and it’s the FT passage, they get a really good score for the section. If it’s one of the other passages and they spent their time on the FT passage, they get a much lower score. Hint for students taking the ACT – the FT passages in English, Reading or Science is never the first or last; the FT questions in the Math sections are never at the beginning or the end of the test.

While both the SAT and ACT offer an optional Writing section, very few schools will look at it and only two schools require it. Most students elect not to take the section. The Science section, however, is unique to the ACT. Here’s were it gets confusing. A few schools (Boston University, Pomona and Georgetown) require it. A few other schools (Duke, Michigan State and the Rochester Institute of Technology) recommend students take it. And some schools (like Penn State or BYU) won’t even look at it if it’s included on the application. Just to complicate it further, some schools average Science into their ACT composite score and some do not. Some schools (like Swarthmore) insist that students who take the Science section include it on their applications, while other schools (like Kansas State) will look at the score only if it helps the students. Hint: Before taking the ACT Science section, go to each school’s website on your college list and see how they will use Science in your ACT score.

As you can see, I’ve spent a lot of time talking about the ACT exam, and just mentioned the SAT in passing. That’s not a slight to the College Board! But before students invest time studying for the ACT and taking hours of test prep, it’s important they know the dark side of the test. The ACT test has so many problems with variability, interpretation and scoring it’s hard to recommend it. I suggest to my students they take the SAT unless they feel much more comfortable with the ACT long-passage format and it translates to a noticeably better score on a practice test or two. I don’t recommend they take the Science test unless they have an overriding reason for doing so.

SAT or ACT? The answer is clear. Take the SAT unless you have a strong rationale for taking the ACT instead.

FAFSA Updates: What's New for 2026/27

Tue, 30 Sep 2025 14:39:53 GMT

The 2026/27 FAFSA is now open; on time for the first time in two years. While changes to the FAFSA aren’t as drastic as the major overhaul in 2024/25, there are several significant changes that families preparing for college should note. This year's changes focus on refining the application process and adjusting how certain assets and income are handled. The good news is the form is now open earlier and is intended to be more user-friendly.

One significant improvement is the simplified process for creating a StudentAid.gov account, or FSA ID. Applicants with a Social Security number can now be verified instantly, removing the frustrating multi-day waiting period from previous cycles. Additionally, inviting contributors (parents or spouses) has been streamlined. Students no longer need personal details like Social Security numbers to send an invite; a simple email address and code will do.

For the 2026/27 FAFSA, several asset exemptions are now in effect. The net worth of small, family-owned businesses (with 100 or fewer full-time employees), family farms where the family resides, and family-owned commercial fishing businesses will no longer be counted in the Student Aid Index (SAI) calculation. Family-owned primary residences have never been counted towards the index. On the negative side, foreign earned income will now be included in the SAI calculation.

Two other note-worthy improvements should be mentioned: Students can now select up to 20 schools to send their FAFSA scores. This means that, for the large majority of students, they won’t need to go back and order the FAFSA be sent toeach school on their list that didn’t make the FAFSA 10-school limit. Also, it is now easier to use the IRS data tool; tax data can now be imported into the FAFSA in real time as you’re competing the application.

Gaming Your Undergrad and Grad School Decisions

Sat, 31 May 2025 19:38:57 GMT

In most social circles, students planning to go to college are pushed to attend the most prestigious college or university that will admit them. Students spend hours pouring over school rankings like those presented each year by U.S. News & World Report. “Can I get into the #5 school over the #10 school?” becomes an existential question that keeps kids up at night.

But what if you’re one of the 70% of college applicants planning a career that involves grad school? What to be a scientist and do research? You’ll need a PhD. What to go into the health fields? Almost all career choices where you’re actually treating patients require advanced degrees. All told, nearly 40% of undergraduates will continue on to a grad-school program after completing their college degrees. Prestigious colleges often come with huge price tags. If you’re not careful, you could end up with so much debt after graduation you can’t maintain a decent standard of living.

As a high school junior looking at colleges, how do you game the system to get you through college and a graduate program? The single most important factor that you have control over is the cost of your college programs, especially at the undergraduate level. Even if your family has saved money for your education, it makes a lot more sense to reserve some of that money for your graduate program where you may be attracted to higher-priced schools by unique educational opportunities or employment considerations.

At least for your undergraduate degree, you should be looking to create a list of value colleges. A “value college” is one that offers you a quality education at a reasonable cost. Note that “reasonable cost” is not the university’s published cost of attendance. That’s like the sticker price on a car – no one pays that! Instead, reasonable cost is based on the net price you’ll pay after grants and scholarships. You can get a ball-park estimate of the net price you may pay at any college by using their Net Price Calculator, which colleges are required to post these on their websites.

This does not mean you are stuck in a public, state-school program (although many state and state-related schools offer very high quality educations)! It does mean that your college list should be heavy on schools where you’re most likely to get the highest merit aid awards to reduce your net cost of attendance, leveraging your good grades in high school to a great deal at college. As an example, a 4.0 weighted GPA may get you a spot on main campus at Penn State your freshman year, which will cost you $50,400 this September. You could use those same great grades to get a full tuition scholarship to Temple University, a savings of $24,368, for a net cost of $17,690. That’s $32,700 less than attending good old PSU! Multiply that by 4 years, and you’re saving over $130,000! Of course, not everyone achieves a 4.0 GPA, but merit scholarships can start to kick in at GPAs as low as an unweighted 2.7 at many private schools like Rider University, where a full-tuition, Presidential scholarship requires a GPA of only 3.5.

So how about that graduate degree? Choosing a value college for your undergraduate degree gave you more financial flexibility when you chose your graduate program. If you decide you need to attend a more expensive graduate program because it offers you unique educational options or future job opportunities, you’re in a better position to afford the more-expensive graduate program. But if you’re like most people, you can still use the value college approach to creating your list of graduate programs. The first year of a Wharton MBA program will cost $120,960, including room and board. A similar MBA program at Pitt’s Katz School of Business will only cost you $49,444 if you live in Pennsylvania. How much of a boost will you get from Wharton (ranked #5 by Forbes) than you will from Katz (ranked #37)? Probably not more than the $140,000 extra you’ll pay for the Wharton MBA, especially if that $140K is financed.

So what’s the sweet spot for maximizing merit scholarship awards? Most colleges use complicated algorithms to develop their class lists. The boxes where they give the highest scholarships can include several factors, including academics, extracurriculars and achievements.

GPAs are the best tool to predict which schools might offer you the most merit aid, because the information is most accessible. GPAs are important statistics for colleges. They affect rankings and the ability to attract quality students. GPAs below average reduce average rankings; GPAs that are too much higher than average are great, but students that are overqualified for a school are less likely to actually matriculate. The sweet spot for schools is generally between the 60th and 80th percent of their applicants. To maximize your chances of getting financial aid, your school list should be heavy on schools where your GPA falls within this range. Many schools are now test optional, but SAT or ACT scores that support your GPA or better can also increase your chance of acceptance and scholarships.

Sometimes, it’s not about the grades. If Luther College, which is very big on music, needs a French Horn player for their orchestra and you happen to have gone to States for French Horn, you’re likely to get an offer with a good amount of money.

But, but, but – that USNWR top-school rating! Relax! Your chance of getting into a good grad school isn’t dependant on your school’s undergraduate ranking, it’s dependant on how well you did while you were at school. Wharton MBA students are as likely to come from Iowa State as they are from Carnegie Mellon, but they all have one thing in common: they excelled in their class work and made a name for themselves at school.

When you take a step back and look at the big picture, a quality education at a reasonably priced “value school” will leave you in a position to enjoy a financially secure and productive future. Choosing value schools, based on net-price-calculators and appropriate GPA ranges, to build your list of colleges will give you the best chance of choosing between a number of schools that offered you a great education at a very reasonable price.

Academic Freedom and Research Threatened at Leading Universities

Thu, 24 Apr 2025 13:59:43 GMT

The Trump administration has recently taken actions to freeze federal funding for several prominent universities, citing concerns over campus activism, allegations of antisemitism, and issues related to diversity and inclusion policies. These actions have sparked significant controversy, raising concerns about government overreach and the protection of academic freedom.

While over 60 universities are facing funding reviews, seven universities have been targeted already because of their prominence. By far, Harvard University faces the largest funding freeze, with $2.2 billion in multi-year grants and $60 million in multi-year contracts. Harvard University has been particularly vocal in its opposition, filing a lawsuit against the administration and publicly rejecting its demands.

Columbia University has had $400 million in federal grants canceled. They were threatened with a far higher amount, but negotiated a settlement that included adopting the government’s definition of antisemitism, willingness to adhere to the administration's demand for stricter disciplinary actions against students deemed to be disruptive and academic oversight of many Asian and Middle Eastern programs by the University’s senior provost.

In response to a funding freeze on $1 billion in research funds, Cornell has attempted to placate the Trump administration while attempting to retain their educational integrity. They recently announced they were renaming their Dysob School of Applied Economics and Management to the Donald J. Trump School of Business Excellence in Business. This change was made after a significant donation and pressure from President Donald Trump, according to reports.

The University of Pennsylvania was slapped with a freeze on $175 million because they allowed a trans swimmer to compete in an NCAA swim meet last year. Penn responded by saying that they have no athletic policy of their own - they follow NCAA’s policies, which at that time allowed trans-sexual students to compete. The freeze is still in place, but no new sanctions have been levied.

Other institutions that have been sanctioned include Brown ($510 million), Princeton ($210 million, which represents half of their federal grant money) and Northwest university ($790 million).

To date, academic institution responses have varied. Harvard University has been particularly vocal in its opposition, filing a lawsuit against the administration and publicly rejecting its demands. It has also floated bonds to recapture lost federal funds. Columbia University, in contrast, has agreed to implement some of the administration's requested policy changes to avoid losing federal funding.

Other universities are still in the process of developing their responses. For instance, while Cornell has not yet filed a lawsuit, legal experts, including Cornell Law Professor Michael Dorf, have publicly stated that the funding freeze of over $1 billion is likely "illegal." At the same time, the university has attempted to placate the President by renaming their Dysob school in his honor.

Key Points:

1. The administration's actions have raised concerns about the potential erosion of academic freedom and the politicization of higher education.

2. The financial impact of the funding freezes will have significant consequences for research and innovation at more that 60 universities. Penn has already reduced or eliminated several graduate programs and most schools will find they need to shift student research to favor graduate programs and away from undergraduate students.

3. The legal battle for NIH and NSF funds is just getting underway. It will take months perhaps years to sort out where and if the government has overstepped its legal authority to freeze funds authorized by Congress.

4. Any legal recourse that universities are able to win won’t be in time to address funding losses for the 2025/26 academic school year. Students entering majors that rely on lab or research activities need to talk with their school’s department heads to see how their courses might be affected.

It's crucial to follow this developing situation as it unfolds, as it has far-reaching implications for the future of higher education in the United States.

Changes to the Department of Education May Affect School and Career Choices

Thu, 20 Mar 2025 00:33:08 GMT

Over the past two months, significant changes within the U.S. Department of Education have profoundly impacted student loans and financial aid. Many news articles have discussed these changes and their impact on students who are currently repaying their loans. This Blog article recaps some of the changes that have been made to the federal student loan system and discusses how they might affect students looking at colleges or looking forward to starting college next year.

1. 50% of the Department of Education staff was laid off two weeks ago, including most of the staff in the Federal Student Aid Office (FSAO), which oversees federal student loans and Pell grants. This could cause delays in rolling out the FAFSA form or making sure that the FAFSA website is online. In 2022, the FAFSA, which usually rolls out October 1st, was delayed until mid-December. This was due to implementation problems streamlining the FAFSA as mandated by Congress. Part of the reason the update took so long is the Federal Student Aid Office was understaffed for the project. This could just be a taste of the future with only a bare-bones staff left after the firings. It is interesting to note that the FAFSA website was down for hours the day after the FSAO cuts.

Bottom Line for high school Seniors: Read up on current student loan guidelines on FinAid.org and make your FAFSA applications as soon as the application is released in the fall.

2. All Income Driven Reduction programs (IDR) have been effectively halted because borrowers cannot access the form required to update their income as required by the program. There have been Reddit and newspaper reports of students’ loan payments ballooning since the IDR programs have been suspended. An article in Fortune (3/17/25, Preston Fore) gave examples of monthly repayments that ballooned from $500 to several thousand dollars. It is important to note that IDR programs, including the Income-Contingent Repayment plan (ICR), the Pay as You Earn plan (PAYE), the Revised Pay as You Earn Plan (REPAYE) and the Saving on a Valuable Education Plan (SAVE) are plans spun off of the original Income Based Reduction (IBR) plans authorized by Congress in 2009. While the Trump Administration may be able to discontinue all IDR programs, it should not be able to discontinue the IBR program. The New York Times (2/28/25, Tara Siegel Bernard) quoted Scott Buchanan of the Student Loan Servicing Alliance saying he expected that IBR program applications will be available again in a few months, but we just don’t know.

Bottom Line for prospective and current federal loan borrowers: Do not base your college or career plans on the hope of income-based repayment programs. If you need to borrow a lot to attend college, make sure your major and eventual career will support your loan payments. If you’re setting your sights on an expensive private college, consider more affordable alternatives like state universities.

3. The Public Service Loan Forgiveness Program (PSLF), authorized by Congress in 2007, allows borrowers who work for the any government office or non-profit organization, including schools, libraries and hospitals to apply for loan forgiveness after 10 years. PSLF is an IDR-based program, so during the repayment period, borrowers’ monthly payments are often much less than they would be on a straight 10-year repayment plan. An Executive Order signed by President Trump on March 7th immediately removed any program that may impact immigration, DEI, LBGTQ+ issues or any service that may “obstruct or influence Federal Government policy” from the PSFL program. This impacts thousands of health care workers, non-profit employees and many teachers who anticipated writing off the remainder of their student loans after 120 payments. Instead they may face an immediate increase in their monthly repayment schedule.

Bottom Line for high school and college students looking to enter careers in teaching, governments work or health care: PSFL programs may be reduced to only certain professions, subject to future review or eliminated because repayments are based on an IDR formula. You should base your career and lifestyle choices on repaying student loan on a 10-year amortization schedule.

4. Policy makers are considering changes to tax laws exempting student loans from taxation. Traditionally, the federal government has encouraged high school students to continue on to college by making college education affordable. Financial aid grants are not taxed. IDR and IBR balances that are forgiven are not taxed. Student loan interest can be deducted on your Schedule A. Congress is currently considering eliminating all of these “perks”.

Bottom line: A tax on grants effectively reduces the net benefit of the grant. At a 12% tax rate, a $10,000 grant will be worth only $8,800 after taxes. Students and their families will have to make up the difference out of pocket – not directly to the school, but to their family budgets on April 15th when they absorb the tax hit. Young families struggling to make ends meet may also loose the interest write-off every year they’re repaying their student loans.

These changes to the Department of Education, student loan programs and, potentially, the tax code are an evolving story. The Trump Administration may fine-tune these programs or discard them. Judges have stepped in and may find that these changes are unlawful and must be reversed. High School Seniors are under the gun – they need to evaluate these changes immediately so they can make sure their college choices are still appropriate by the May 1st decision deadline. Juniors have the luxury of taking a wait-and-see position as policy is solidified. Students in college need to reevaluate the career choices if they were planning on refinancing their loans into an IBR or IDR or if they were planning on applying for the PSFL program. To stay safe, keep informed, don’t take on too much debt, write your congressman.

University Research Faces Unknown Future

Sun, 09 Mar 2025 18:47:10 GMT

Over the last several weeks, the Trump administration has curtailed federal funds to research institutions, including most colleges and universities that do any kind of scientific or medical investigation. Recent administration directives have mandated that the NIH cap indirect research grants at15% of a project’s direct cost. This is supposed to result in as much as $4 billion in federal budget savings (1), but could place many research projects in jeopardy. According to Arnold & Porter(2), research institutions typically receive two to three times that amount from the NIH. Many schools cannot afford the loss of millions of dollars in expected federal grants.

The Trump administration has also put in motion plans to drastically cut National Science Foundation (NSF) budget and staff. According to R&D World, NSF, “a major funder of basic research in the U.S., would be forced to considerably reduce or halt grant awards, potentially impacting thousands of researchers, universities and projects.” (3)

On another front, the administration has attempted to discontinue all USAID funding, including research fellowships and programs in Global Health, Economic Growth and the environment. USAID funding, much of which was already authorized, continues to be in limbo: Judges have ruled the program funding must continue while the administration says they’ve canceled the projects, so there is nothing left to fund.

While many of these funding cuts have been temporarily suspended by federal judges, research institutions like universities have taken steps to reduce their risk in the event the grants are reduced, modified or rescinded. The New York Times (4) reported that many universities, like NC State and Stanford, are freezing all new staff hiring. University of Kentucky cited a potential loss of more that $20 million in NIH research funding if the freezes were to be made permanent. The Daily Pennsylvanian, Penn’s newspaper reported that Penn Medicine stands to loose up to $240 million if current situation stands. Penn Medicine was instructed to cut Ph.D. admissions for 2025/26 by 35% due to funding uncertainties.(5)

The damage is not just affecting Ph.D. programs and graduate research. As the number of research opportunities diminish, undergraduates at most universities will have less opportunity to do research as funding is reserved for the graduate students that rely on it. Even at colleges, where there are no graduate students, opportunities to do research will be affected as schools loose NIH funding they have relied upon in the past.

The only thing we know for certain at the moment is that the situation is fluid and government-funded research will shrink going forward. I’ve advised my Seniors that hope to do any kind of undergraduate research to contact their schools in April to see how their programs may be affected by the change in federal research funding; students can change their school decision easily before May 1st. I also suggest that they contact the head of their departments and establish some contacts so they can be first in line for undergraduate research opportunities once they get to school in August.

For now, sit down and grab some popcorn. There’s sure to be several unexpected twists and turns to this saga as the summer unfolds.

(1) Federal judge blocks drastic funding cuts to medical research, AP, Neergaard L., Casey M, 3/5/25

(2) Impact of Trump Administration Directives on Scientific Research in the U.S.,Arnold & Porter, 2/12/25 online article

(3) NSF layoffs in 2025: Deep budget cuts headed for U.S. research sector, Buntz B, R&D World, 2/21/25

(4) NYT, As Trump Goes After Universities, Students Are Now on the Chopping Block, 3/6/25

(5) Penn Medicine graduate programs instructed to cut Ph.D, Admissions by 35% due to funding uncertainty, Chitirala I, Ryan F, DP 2/25/25

Education Research Cuts at the Department of Education

Wed, 19 Feb 2025 22:00:29 GMT

The Department of Education has been a target of Republicans for more than 10 years. In February, President Trump, promising to eliminate the department, made his first round of cuts by eliminating almost all of the data-gathering contracts for primary and secondary education research. The Institute of Education Sciences (IES), the independent research arm of the Department was told to shut down all activities.

According to NPR in an article published online on February 10th, EIS is responsible for gathering and publishing data on many aspects of education including research-backed teaching practices and student achievement. So far, 89 IES contracts have been canceled, affecting the full range of programs geared to research issues affecting private schools, home-schooling and technical education. A study investigating ways to help students make up ground in math skills that have slipped since COVID was terminated, and serves as a good example of the type of research IES funded.

For Secondary education, collection of data related to colleges and college admissions may also be discontinued. The College Navigator website, which has been an important tool to research colleges for high school students and educational consultants may be shut down as early as February 20th. For the moment, the National Assessment of Educational Progress (NAEP) will not be on the chopping block. This program collects data on how K-12 students are mastering skills in core subjects, such as reading and math.

The bottom line: Almost all federally-funded educational research has be discontinued. Without research on how students are learning, or programs to help students behind in their learning catch up, the federal government has eliminated the opportunity to establish national baselines or educational goals.

Resources for Seniors

Fri, 27 Mar 2020 14:26:30 GMT

In many ways, seniors are in the cross-hairs of the COVID-19 pandemic. Their financial situations may have changed as the bottom fell out of the stock market. They aren't able to visit colleges to decide between their top choices. Their AP tests in May have been canceled and not rescheduled and the test format and scope have changed.

Because things are changing daily, it's more helpful to provided links to dynamic resources than to publish lists of important changes to school policies at any given moment.

1. Visiting Schools and Deposit Deadlines NACAC, the National Association for College Admissions Counseling, has posted a searchable database that lists whether or not college are open to visitors, are hosting any admission events and whether or not they have changed their deposit deadlines. The database is searchable by college, location or status. Many colleges are developing resources to aid their accepted students. Smaller schools are doing Video conferences with admissions officers, many schools are providing Zoom meetings. Seniors should check with their school's admissions offices to see what resources are available.

2. Test Optional Policy Changes At the moment, a dozen schools that are not usually test optional will go test optional, at least for their 2021 applications. That number is likely to increase during the spring and summer. Fair Test keeps a current list of all test-optional schools and you can use this resource to see the list of schools that will be temporarily test optional.

3. AP Test Requirements If you're still confused about what the College Board is doing about AP tests or when the online tests will be administered, please use this link to AP Central for a detailed explanation of what you'll be required to know for each AP course. At this time, the test dates have not been published, so check the link often. One of testing partners is providing free on-demand AP tutoring in almost every subject. Please contact me if you are interested.

If you have any specific questions, please know that College Match Guru is here to help! Give me a call or send me an email and I'll do all I can to help during this troubled time!

AP course exams will be offered online

Fri, 20 Mar 2020 14:17:45 GMT

The College Board announced today that AP tests will not be given in their usual proctored format this year because of the Corona virus. Instead, students wishing to take the AP test will be offered the opportunity to take the tests at home. For most courses, the test will only include sections that should have already been covered in class. For the Art-related courses, students will need to submit a smaller number of works and investigations.

AP tests are important because most colleges and universities will give students credit for AP test scores in the 4 and 5 range. This can allow students to substitute other classes so they can explore areas they may find interesting or to graduate early. AP tests are an indication that students have mastered their course work and most colleges consider AP courses in their admissions decisions.

Art works and investigations will be due May 26th; testing dates for other courses have not yet been published. For more information, go to the College Board website https://apcentral.collegeboard.org/about-ap/news-changes/coronavirus-update .

Effects of the COVID-19 virus on Admissions and Testing

Mon, 16 Mar 2020 14:14:20 GMT

Here in sunny Bucks County, spring is well underway. Everything from crocuses to Forsythia are in bloom. Of course, we're also on emergency lock down with non-essential businesses closed, including restaurants, theaters, and many small businesses.

With that as a backdrop, COVID-19, the corona virus, has had a tremendous impact on college admissions too. Several colleges are moving their acceptance deadlines from the traditional May 1st to June 1st. This is to give accepted students more time to visit and make their decisions after the crisis has (hopefully!) passed. The list of schools affected is ever-changing, so if you are a senior looking to postpone your decision, please contact your schools' admissions offices to see if they are still on the May 1st deadline. A phone call never hurts! Many schools that haven't officially changed their admissions deadline will give you an extension if you call and ask.

If you were planning to make your decision after visiting again during Accepted Student Days, you may be out of luck. Most schools have notified students they have canceled their ASDs. So how can you get more information to make your decision? Here are a few suggestions:

Take a virtual tour -- go to websites like CampusReel or YouniversityTV that offer over 300 campus guided tours.
Login to the school's Facebook page and join conversations with accepted students and upperclassmen
Check out the schools' YouTube channels. Often the content here is superior to the schools' own web pages and can give you different insight on what the schools have to offer.
Contact Admissions -- see if they can hook you up with a student in your intended major for a conversation via Skype or FaceTime.
Go to the college's website and do some research. Check out the schools' course catalogs and compare the course descriptions from one program to the others on your list.
Make sure you are getting (and reading!) emails that the colleges and universities are sending you. Check your college web-portals often. This is likely to offer you the most up-to-date, breaking news from the schools on your accepted list.

Above all, don't panic! If you have specific questions about one school vs. another, make a list and call Admissions to get answers. If you're just waiting for an opportunity to visit a few campuses to confirm your choice, you should be able to postpone your decision until you've had your chance to get back on campus.

Private Bank Loans Can Be Deceiving

Mon, 17 Feb 2020 15:11:41 GMT

Many families turn to private sources when their children’s college costs are more than they can afford after the school’s financial aid package arrives in the mail.

Often, families look to private loans to make ends meet. Unfortunately, these loans are less regulated than their federal counterparts like Stafford or PLUS loans. A student applying to a community college or a smaller, regional private college may find that student loans originating from even the largest banks have interest rates or points that vary based on the school they choose to attend.

Last week, a Courier Times article discussed a paper by the Student Borrower Protection Center that showed students who borrowed money from some of the largest national lenders, like Wells Fargo, charged significantly more for loans they wrote for some students than others. For instance, students attending Howard University in Washington, D.C. were changed almost $3,500 more than students attending New York University for an identical 5-year loan. Or a student attending the Borough of Manhattan Community College may be charged nearly double the interest on the same loan written for a student attending nearby City College of New York. Thus, students looking to save money by attending less expensive schools like community colleges may find their actual savings are significantly reduced.

If you’ve recently received a financial aid package that exceeds your budget, what can you do to avoid this problem?

If your child is a high-school senior, make sure their college choice takes finances into account. Many times, equivalent schools offer far different net prices. Take emotions out of the decision: Is it really worth attending Prestigious U instead of Other U and pay $20,000 to $80,000 more over 4 years?
Apply for outside scholarships. Thousands of dollars are up for grabs in local, regional and national scholarship money, especially for freshmen.
Consider other sources of financing. If you have equity in your home, consider a home equity loan. while the interest is no longer deductible they're still less expensive than PLUS or private-bank student loans.
Do NOT use your IRA or 401-K savings! You’ll pay a 10% penalty for withdrawing funds early and the proceeds will be considered untaxed income on future financial aid forms. More importantly, you should not jeopardize your retirement to pay for your children’s education.

Choosing which college to attend can be a stress-filled, emotional experience. A one-hour consultation with an unbiased professional can often help families make the right college choice!

Changes to college financial aid notices are coming soon

Tue, 12 Feb 2019 15:01:36 GMT

College admission season is well underway. Schools with rolling admissions have been notifying high school seniors of their admissions status for a few months now. Beginning is late March, and culminating on April 1st, when many schools notify their applicants, seniors will face one of the most important decisions of their young lives -- which school do they attend?

Financial aid is often one of the more important aspects of a college's offer of admission, but it can be very difficult to compare one school's offer with another because of the way each school determines family financial need and how they propose to meet that need. To address this situation, the Department of Education has proposed that colleges and universities use a common template for presenting their financial aid packages in next year's admissions cycle.

The template is optional, so school's still out (if you can forgive the pun) on whether the template will be accepted by enough colleges and universities to make the idea work, but the template has some definite pluses. It clearly indicates what the family's Expected Financial Contribution (EFC) will be, and shows how the school plans to offset these costs with federal aid, merit aid, work study and family contributions. It breaks loans out into an entirely separate section, highlighting the fact that loans are NOT aid. The template makes it much easier to compare the net costs of attending one school with another; differences that can be tens of thousands of dollars apart.

For this year's senior class, it will be harder to compare offers, since there is no unified system. Just remember -- loans, work study and summer earnings are not financial aid and are not guaranteed to offset the cost of the college experience.

To learn more, click here for a link to the federal financial aid template.

October 1st Means It's FAFSA Time

Fri, 28 Sep 2018 13:52:02 GMT

Financial Aid and FAFSA

October 1st marks the beginning of a new financial aid cycle as the 2018-19 FAFSA goes online. One recurrent theme I get each year is when students should file their FAFSA, or Free Application for Federal Student Aid, and whether filing a FAFSA application will hurt their chances for admission or merit aid.

Do I need to file the FAFSA if I don’t have financial need?

At last count, less than a dozen schools required the FAFSA to be eligible for merit aid. This means that if you’re a full-pay student, you don’t need to file the FAFSA. However, if you or your family may need to borrow money during the school year, it is always helpful to have the FAFSA on file, or to file it after you’ve been admitted. FAFSA is required to borrow money from one of the two available federal loan programs – Stafford loans (students) and PLUS loans (parents). Think of it as a no-cost insurance policy against major changes in a family’s financial situation, like job loss or illness.

If I need to file the CSS Profile, do I need to file a FAFSA application to?

The CSS Profile provides an alternate view of a family’s financial situation. The Profile builds a picture of a family’s assets, income and debt in the same way the IRS 1040 does, while the FAFSA starts with gross income and builds a picture of available income with allowances and deductions. Because they offer colleges two views of student and family income and assets, all schools that require the CSS Profile will require both forms. While the vast majority of schools only require the FAFSA, all schools that offer 100% needs-met financial aid and several of the more selective schools require the CSS Profile.

Will filing the FAFSA hurt my chances of getting into college?

Almost all schools are “needs aware” these days. This means that while they don’t base admission on a student’s financial situation, it is possible that financial need may influence a school’s choice of admission for a student or two “on the bubble.”

I may file a FAFSA application. Should I check the “I’m planning to apply for financial aid” box on my application?

If you check this box, you need to file a FAFSA. Many schools will consider your application incomplete if you don’t. If you’re not sure you’re going to file – don’t check the box. You can file the FAFSA regardless. But if you discover that you do want to be considered for loans or other needs-based aid, you also need to call your schools and tell them that you want them to be aware of your changed status.

Federal Loan Costs Just Went Up

Mon, 18 Jun 2018 13:31:04 GMT

Except for the 60 or so colleges and universities that have "no loan" policies, most financial aid packages include student loans. Federal loans are call Stafford loans and can either be interest deferred, which means interest doesn't accrue until 6 months after a student graduates, or non-deferred, which means either students pay the interest each year or it is rolled back into principle until graduation.

The interest rate on Stafford loans are updated each July and reflect changes in 10-year Treasury Note interest rates. This year, the interest rates rose from 4.45% to 5.05% on Stafford loans. That's a 13% increase in a single year! According to the New York Times, this is expected to increase monthly payments by around 2.8%. For graduate students eligible for the Stafford loan, the interest rate rose from 6.0% to 6.6%, a 10% increase.

Th Since interest rates are expected to rise over the next few years, it is very important to consider how much you can safely borrow without putting your future on hold after you graduate. I urge all of my students to strongly consider net (actual, after aid) cost when they make their decisions on which school to attend. If Drexel's net cost is $20,000 less than Penn each year, is the prestige of an Ivy League education really worth $80,000? For some, the answer may be "yes," if they believe that Penn can offer educational or employment opportunities not available at Drexel. For most students, the answer is most likely "no." And if parents have to borrow expensive PLUS loans to cover the additional cost, that difference isn't $80,0 00, it's a whole lot higher.