I haven't written about higher ed issues (costs, value, etc) in part because my children have graduated (debt free, thank heavens) and because the issue is still too depressing. The kinds of issues I was struggling with years ago (is it "worth it" to go for a more prestigious college? how can one save if college costs rise at twice the rate of inflation? do schools offer "merit aid" and then nullify it with tuition increases in subsequent years, and so on). are--alas--with us still. Indeed, they are perhaps exacerbated by the fact that the job market is still difficult for recent graduates.
My clever title is borrowed from a piece I recently read in a new-to-me publication. The costs, the growth of the administrative class, the growth of the non-tenured instructor/part-timer class, yeah, I've seen it all. I used to tell my children that I felt that higher ed involved "trickle-up economics," with the borrowing/paying student enriching all those who stood to profit. The article in the link puts it better: higher education is a cash cow and the student is the cow.
Among the beneficiaries: the Testing Industries, you know, GRE, SAT, GMAT, MCAT, LSAT, and all others. Miss Em recently took the GREs and I was stunned to learn that the test cost over $160. Thankfully, she does not plan to take it again, having done well enough the first time.
I had this in mind when I received an email from Educational Testing Service, which puts out the tests. ETS wanted to know what works little old me taught in a survey course. I could contribute to the public weal (and to the AP Exams) by taking a survey. AND--as a reward--I could request a copy of the results.
You have got to be kidding, Mr and Ms ETS. My late father was in the survey biz and I remember that professionals who took surveys were compensated. So I shot back an email--which no doubt was not read--saying that if the ETS made money on the tests (it does) then the ETS should compensate with SOMETHING. I got another email a few days later, to which I made the same useless reply.
Take this out of your library!
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Showing posts with label College Finances. Show all posts
Showing posts with label College Finances. Show all posts
Tuesday, November 19, 2013
Thursday, August 29, 2013
Instead of a Rant about TIAA Reps, An Uplifting Story About Small Frugalities Adding Up
I just got off the phone with TIAA, where 3/4 of my net worth resides. Two out of three reps made me upset (with the first, I cried). They must have terrible training scripts!
But instead of writing about that experience, I will share a happy story about small frugalities. I am a pennywise person. I don't think I'm pound foolish, but I'm definitely not poundwise. Every time I try to save on a big ticket item (insurance, for one thing), I end up confused and frustrated.
Generally it's hard to figure out what effect these small frugalities have. Sometimes I feel like I'm nuts: I will NOT spend that for a jar of peanut butter! That kind of thing. Finally, though, I have some evidence of how things add up. Miss Em graduated last May. She just got her final settlement check from her university. Yes, a check FROM her university. It was pretty hefty for a recent grad.
$1600 of the check was for Dining Dollars. Each semester, students are required to buy $300 in Dining Dollars. This is mostly for coffee and snacks at the campus Starbucks, but can be used in the dining halls and at some off-campus venues. Miss Em reports that many of her friends blew through the money in a few weeks. Miss Em obviously spent some--out of $2400 (8 semesters), she spent $800. She said, I used it to go out with friends, not to get caffeine. She pointed out that--in addition to her dorm room where she had a coffee and teapot--she had access to the free coffee in various organizations and offices, in her case, the Honors College, the University Fellows Program office, and Creative Campus. She also carried her little thermos everywhere. In fact, the Starbucks was rather out of the way for her so the thermos was a time- as well as a money-saver for the most organized and time-efficient member of my family.
You go girl!
P.S. The check covered her new laptop and she still has some left over.
P.P.S. Should I move my money to Vanguard when I retire?
But instead of writing about that experience, I will share a happy story about small frugalities. I am a pennywise person. I don't think I'm pound foolish, but I'm definitely not poundwise. Every time I try to save on a big ticket item (insurance, for one thing), I end up confused and frustrated.
Generally it's hard to figure out what effect these small frugalities have. Sometimes I feel like I'm nuts: I will NOT spend that for a jar of peanut butter! That kind of thing. Finally, though, I have some evidence of how things add up. Miss Em graduated last May. She just got her final settlement check from her university. Yes, a check FROM her university. It was pretty hefty for a recent grad.
$1600 of the check was for Dining Dollars. Each semester, students are required to buy $300 in Dining Dollars. This is mostly for coffee and snacks at the campus Starbucks, but can be used in the dining halls and at some off-campus venues. Miss Em reports that many of her friends blew through the money in a few weeks. Miss Em obviously spent some--out of $2400 (8 semesters), she spent $800. She said, I used it to go out with friends, not to get caffeine. She pointed out that--in addition to her dorm room where she had a coffee and teapot--she had access to the free coffee in various organizations and offices, in her case, the Honors College, the University Fellows Program office, and Creative Campus. She also carried her little thermos everywhere. In fact, the Starbucks was rather out of the way for her so the thermos was a time- as well as a money-saver for the most organized and time-efficient member of my family.
You go girl!
P.S. The check covered her new laptop and she still has some left over.
P.P.S. Should I move my money to Vanguard when I retire?
Tuesday, January 29, 2013
Helping Adult Children Buy Houses: A Little Disclosure
There are so many issues involved, some of which were brought up in the comments to my last post. One has to think of one's own finances, especially retirement. One has to worry about creating dependency: The Millionaire Next Door authors talk about how Economic Outpatient Care weakens adult children and leads to less productivity. And: what about the other kid?
Well, who knows about retirement. Will we have enough? I have no idea. But my frugal chops are well-developed.
As for dependency: so far Frugal Son seems quite independent in his actions, especially considering how low his income is.
As for the other kid: both kids have similar profiles, for which see below.
The reason I am thinking about this is that--after almost 5 years of severe despondency and throwing my 403b statements in a box unopened, I took a peek recently and things seem OK, at least till the next bubble. When I say I, I mean we, by the way. I just do most of the planning, while Mr FS does the gardening, painting, and home and car maintenance. Since we are both frugal by nature and nurture, and because we fantasized about sending the two children to PRIVATE LIBERAL ARTS COLLEGES, we saved and saved, even as the cost of college soared at double the rate of inflation. We even started a 529 account, in which we amassed room and board expenses for four years, because we knew that if our children chose an in-state public institution, tuition would be free via the TOPS program.
As it happened, the dear children weren't as enamored of the private colleges as we were (perhaps there is a lesson there). They received some merit aid at private colleges. Each child also received room and board scholarships on top of tuition at public colleges. For that, we can all thank the test-taking gods or the fact that the children had genetic material from two families with good test takers. (Mr FS told me long ago that his older brother had perfect SATS. I have not independently verified this claim.) They each chose a public institution. Each is happy with that choice.
So, if you have been reading with any attention, you may have figured out that the 4 years of room and board fees remain untouched. Mr FS said "Why not let the kids share in the consequences of their choices?" I say, "No one would question our having spent this money on room and board or a car when they were in college, etc etc."
My musings will continue...
And, if you haven't read this, you should. It was a life changer for me.
Well, who knows about retirement. Will we have enough? I have no idea. But my frugal chops are well-developed.
As for dependency: so far Frugal Son seems quite independent in his actions, especially considering how low his income is.
As for the other kid: both kids have similar profiles, for which see below.
The reason I am thinking about this is that--after almost 5 years of severe despondency and throwing my 403b statements in a box unopened, I took a peek recently and things seem OK, at least till the next bubble. When I say I, I mean we, by the way. I just do most of the planning, while Mr FS does the gardening, painting, and home and car maintenance. Since we are both frugal by nature and nurture, and because we fantasized about sending the two children to PRIVATE LIBERAL ARTS COLLEGES, we saved and saved, even as the cost of college soared at double the rate of inflation. We even started a 529 account, in which we amassed room and board expenses for four years, because we knew that if our children chose an in-state public institution, tuition would be free via the TOPS program.
As it happened, the dear children weren't as enamored of the private colleges as we were (perhaps there is a lesson there). They received some merit aid at private colleges. Each child also received room and board scholarships on top of tuition at public colleges. For that, we can all thank the test-taking gods or the fact that the children had genetic material from two families with good test takers. (Mr FS told me long ago that his older brother had perfect SATS. I have not independently verified this claim.) They each chose a public institution. Each is happy with that choice.
So, if you have been reading with any attention, you may have figured out that the 4 years of room and board fees remain untouched. Mr FS said "Why not let the kids share in the consequences of their choices?" I say, "No one would question our having spent this money on room and board or a car when they were in college, etc etc."
My musings will continue...
And, if you haven't read this, you should. It was a life changer for me.
Sunday, November 11, 2012
Should College Students Reap the Benefits of their Choice
Mr FS and I attended musical event last night. At the break, we talked to an acquaintance. Our chat followed a familiar course.
Acquaintance: How is Miss Em?
Me: Fine. How's Sarah?
There follows a 10 minute monologue detailing Sarah's many accomplishments. Poor Miss Em! The inquiry is perfunctory really: the acquaintance is only interested in blabbing about her daughter.
Las night the conversation took an unexpected turn. Instead of the expected bragfest, Mom said "I can't wait till Sarah graduates. I told her: that's it!" After some questions, I learned that Sarah--who attends a mid-range private college--got a lot of grants ("the tuition is over $40,000"). Still, Sarah faces $20,000 in debt and Mom and Dad pledged to pay it off.
I said, "$20,000 isn't all that bad for 4 years in a private college."
Mom said, "That doesn't count the $1800."
Me, "A year?"
Mom, "No, a MONTH."
I love math, as long as it's low level, so I quickly computed that we are talking about around $100,000 in after-tax income. Mom is a paralegal and I'm not sure what Dad does--something with maps.
Then I started thinking. If Sarah had elected to go to a state school, she would have received the Louisiana tuition scholarship (TOPS). Mom and Dad would have been on the hook for about $10,000/year for room, board, and books.
That totals $40,000. What about the other $60,000? Well, that could buy Sarah a car post graduation, leaving around $40,000 for a house down payment.
While I've heard some parents offer a wad of cash in lieu of a wedding to the happy couple, I've never heard of anyone offering to let the student reap all or even part of the financial benefit of choosing a lower cost school.
What do you think of this modest proposal?
Acquaintance: How is Miss Em?
Me: Fine. How's Sarah?
There follows a 10 minute monologue detailing Sarah's many accomplishments. Poor Miss Em! The inquiry is perfunctory really: the acquaintance is only interested in blabbing about her daughter.
Las night the conversation took an unexpected turn. Instead of the expected bragfest, Mom said "I can't wait till Sarah graduates. I told her: that's it!" After some questions, I learned that Sarah--who attends a mid-range private college--got a lot of grants ("the tuition is over $40,000"). Still, Sarah faces $20,000 in debt and Mom and Dad pledged to pay it off.
I said, "$20,000 isn't all that bad for 4 years in a private college."
Mom said, "That doesn't count the $1800."
Me, "A year?"
Mom, "No, a MONTH."
I love math, as long as it's low level, so I quickly computed that we are talking about around $100,000 in after-tax income. Mom is a paralegal and I'm not sure what Dad does--something with maps.
Then I started thinking. If Sarah had elected to go to a state school, she would have received the Louisiana tuition scholarship (TOPS). Mom and Dad would have been on the hook for about $10,000/year for room, board, and books.
That totals $40,000. What about the other $60,000? Well, that could buy Sarah a car post graduation, leaving around $40,000 for a house down payment.
While I've heard some parents offer a wad of cash in lieu of a wedding to the happy couple, I've never heard of anyone offering to let the student reap all or even part of the financial benefit of choosing a lower cost school.
What do you think of this modest proposal?
Saturday, August 11, 2012
We are all College Cooks
What is a College Cook? Someone with limited time, space, know how, and facilities. In truth, I have only one genuine College Cook in my immediate circle: Miss Em, who is heading into her last year of dorm life.
Frugal Son just moved to an apartment in New Orleans: he packed his beloved rice cooker. Mr C--an affiliate of our family, though not officially a member--just moved into his post-grad apartment and received his first rice cooker (courtesy of me and Goodwill) and a copy of the little guide Frugal Son and I put together:
This is not just a collection of easy recipes: we recommend 20 easy to buy and store products; we then offer 2 weeks of recipes that can be put together quickly, with little mess, in rice cooker or microwave, two college approved appliances. Oh, and did I mention that you or your cook will save a ton of money--not to mention time?
We priced it as low as Amazon can go for our program: $2.99. For the same price, you can order it from us and receive an ebook.
Even though I like to cook, I am as lazy as the next person (lazier, probably). I cook with my rice cooker most nights.
Check out our college Cooking blog for occasional posts and suggestions too.
Any other suggestions for the College Cook--even if the College Cook is long out of college?
Frugal Son just moved to an apartment in New Orleans: he packed his beloved rice cooker. Mr C--an affiliate of our family, though not officially a member--just moved into his post-grad apartment and received his first rice cooker (courtesy of me and Goodwill) and a copy of the little guide Frugal Son and I put together:
This is not just a collection of easy recipes: we recommend 20 easy to buy and store products; we then offer 2 weeks of recipes that can be put together quickly, with little mess, in rice cooker or microwave, two college approved appliances. Oh, and did I mention that you or your cook will save a ton of money--not to mention time?
We priced it as low as Amazon can go for our program: $2.99. For the same price, you can order it from us and receive an ebook.
Even though I like to cook, I am as lazy as the next person (lazier, probably). I cook with my rice cooker most nights.
Check out our college Cooking blog for occasional posts and suggestions too.
Any other suggestions for the College Cook--even if the College Cook is long out of college?
Tuesday, May 15, 2012
A Gift for the Grad: Using My Talents
The best gift, of course, is one the recipient wants. I recently bought a wedding gift, using the registry. Gnashing my teeth all the while, thinking I could get 10 things for the price of the one (biggish) gift I am buying. It was the right thing to do though.
Right now, I am in the process of buying a graduation gift for Mr C, a recent family friend. On Saturday, I noticed that the 2.8 million dollar home a few blocks away had a yard sale sign. So off we went. Mr C found some sport coats (cashmere and camel hair!) in his size. I said: Let me buy those as part of your graduation pres. He was pleased, so I got him a nice belt too.
Hmmm. This is really using my frugal talents. Next, I'm going to buy him a slow cooker (new) and a stick blender (ditto).
I already gave him a second-hand rice cooker and a copy of the little ebook Frugal Son and I put together.
Finally, I am going to get some food staples for his first real cooking adventures. Mr. C will be working in a Vista program next year while studying for the dreaded MCAT exam. If he learns to cook efficiently, he will have skills that will take him through med school and beyond. I've finally found the perfect recipient! Happy Graduation Mr C!
Thursday, March 15, 2012
FAFSA Update
Sooooo, I and 10 zillion other people received this correction. I sent a query to the FAFSA people--I assume I was not the only one pointing out that the income tax filing date is more than a month away and that the email was incomprehensible.
We recently sent an e-mail advising you to update your tax data on the FAFSA once you have filed your tax return. Please note that the e-mail stated in error that the federal tax filing deadline has passed. You should disregard that sentence. The federal tax deadline this year is April 17. We apologize for any confusion this may have caused. You should still update the tax information on your FAFSA after you file your federal taxes, and we strongly encourage you to do that by importing your 2011 income tax information from the IRS into your FAFSA using the IRS Data Retrieval Tool.
U.S. Department of Education
It seems that the real message is that you can import 2011 tax info from the IRS website. That would have been a one-sentence email.
I could be wrong....
We recently sent an e-mail advising you to update your tax data on the FAFSA once you have filed your tax return. Please note that the e-mail stated in error that the federal tax filing deadline has passed. You should disregard that sentence. The federal tax deadline this year is April 17. We apologize for any confusion this may have caused. You should still update the tax information on your FAFSA after you file your federal taxes, and we strongly encourage you to do that by importing your 2011 income tax information from the IRS into your FAFSA using the IRS Data Retrieval Tool.
U.S. Department of Education
It seems that the real message is that you can import 2011 tax info from the IRS website. That would have been a one-sentence email.
I could be wrong....
Wednesday, March 14, 2012
College Aid: The FAFSA Yet Once More
Ugh. For some reason, I hate filing the FAFSA (Federal Financial Aid form or whatever). My children did not receive Federal Aid, but the form is still the gateway to other aid, of the sort they got. So, I filled out what I thought would be my last one (for Miss Em). Since it was not crucial that all my numbers be accurate (because those numbers are used for Federal Aid such as Pell Grants and subsidized loans), I completed the form before I completed my taxes, as I had in the past.
Here's the email I got yesterday. Hold on to your hats.
Recently your information was provided in the parental section of your student's 2012-2013 Free Application for Federal Student Aid (FAFSA). The information you provided indicated that you were going to file your taxes and were providing estimated 2011 tax information. Now that the federal tax filing deadline has passed and you have probably filed your 2011 tax returns, it is time for you to update your student's FAFSA.
Updated information can be provided once your student accesses their FAFSA at www.fafsa.gov. You should change your answer on the FAFSA (question 79) to reflect that you have "already completed" your tax return. Once you've made this change, you will need to update the information you initially reported on the FAFSA to reflect the actual information from the 2011 tax return you filed. If you filed a federal tax return with the IRS, when you update the information online, you may be eligible to use the IRS Data Retrieval Tool, which is the best and easiest way to provide accurate tax information. With just a few simple steps, you can view information from your IRS tax return and transfer that information directly into your student's FAFSA.
If you are unable to use the IRS Data Retrieval Tool, you are still required to update the income information so that it reflects the information on the 2011 tax return you filed. The tax-related questions you should review on your student's FAFSA include adjusted gross income, income tax paid, number of exemptions, and income earned from work. You should also ensure that your FAFSA correctly identifies the type of tax return that was filed (IRS 1040, 1040A, 1040EZ, foreign tax return, etc.) and that you have entered the correct amounts for Additional Financial Information (questions 91a-f) and Other Untaxed Income (questions 92a-i).
It is important that you make the necessary changes to the tax information so that your student's FAFSA includes the same information that was included on your tax return. However, when making corrections based on your completed federal tax returns, do not update other information that was correct at the time you filed your FAFSA. For example, do not change your answer for household size (question 72) or for number in college (question 73); unless your answer was incorrect as of the date you originally signed the FAFSA.
Keep in mind that if the FAFSA also contains estimated tax information for your student, that information should also be updated to reflect the actual information from the 2011 tax return your student filed. If your student filed a federal tax return with the IRS, they may also be eligible to use the IRS Data Retrieval Tool when they access the FAFSA online. If you or your student has not completed the 2011 federal tax returns at this time, you must be sure to update your FAFSA information once the returns have been completed. Your student's ability to receive federal student aid can be impacted if you do not make the necessary updates or corrections.
Thank you for your attention to this important matter. If you have additional questions regarding the IRS Data Retrieval Tool, online help is available. Visit www.fafsa.gov and click the "Browse Help" feature on the FAFSA home page for information on the tool and the FAFSA process.
U.S. Department of Education
This is nearly incomprehensible, even to me, with my excellent reading skills. My favorite part is the statement that since the federal tax filing date has passed, I should update my form. UMMMMM. APRIL 15, anyone?
Oh, how I loathe these emails. Surely, the bureaucrats can find someone in need of a job....WHO CAN WRITE CLEARLY. And know what the federal filing date is.
Here's the email I got yesterday. Hold on to your hats.
Recently your information was provided in the parental section of your student's 2012-2013 Free Application for Federal Student Aid (FAFSA). The information you provided indicated that you were going to file your taxes and were providing estimated 2011 tax information. Now that the federal tax filing deadline has passed and you have probably filed your 2011 tax returns, it is time for you to update your student's FAFSA.
Updated information can be provided once your student accesses their FAFSA at www.fafsa.gov. You should change your answer on the FAFSA (question 79) to reflect that you have "already completed" your tax return. Once you've made this change, you will need to update the information you initially reported on the FAFSA to reflect the actual information from the 2011 tax return you filed. If you filed a federal tax return with the IRS, when you update the information online, you may be eligible to use the IRS Data Retrieval Tool, which is the best and easiest way to provide accurate tax information. With just a few simple steps, you can view information from your IRS tax return and transfer that information directly into your student's FAFSA.
If you are unable to use the IRS Data Retrieval Tool, you are still required to update the income information so that it reflects the information on the 2011 tax return you filed. The tax-related questions you should review on your student's FAFSA include adjusted gross income, income tax paid, number of exemptions, and income earned from work. You should also ensure that your FAFSA correctly identifies the type of tax return that was filed (IRS 1040, 1040A, 1040EZ, foreign tax return, etc.) and that you have entered the correct amounts for Additional Financial Information (questions 91a-f) and Other Untaxed Income (questions 92a-i).
It is important that you make the necessary changes to the tax information so that your student's FAFSA includes the same information that was included on your tax return. However, when making corrections based on your completed federal tax returns, do not update other information that was correct at the time you filed your FAFSA. For example, do not change your answer for household size (question 72) or for number in college (question 73); unless your answer was incorrect as of the date you originally signed the FAFSA.
Keep in mind that if the FAFSA also contains estimated tax information for your student, that information should also be updated to reflect the actual information from the 2011 tax return your student filed. If your student filed a federal tax return with the IRS, they may also be eligible to use the IRS Data Retrieval Tool when they access the FAFSA online. If you or your student has not completed the 2011 federal tax returns at this time, you must be sure to update your FAFSA information once the returns have been completed. Your student's ability to receive federal student aid can be impacted if you do not make the necessary updates or corrections.
Thank you for your attention to this important matter. If you have additional questions regarding the IRS Data Retrieval Tool, online help is available. Visit www.fafsa.gov and click the "Browse Help" feature on the FAFSA home page for information on the tool and the FAFSA process.
U.S. Department of Education
This is nearly incomprehensible, even to me, with my excellent reading skills. My favorite part is the statement that since the federal tax filing date has passed, I should update my form. UMMMMM. APRIL 15, anyone?
Oh, how I loathe these emails. Surely, the bureaucrats can find someone in need of a job....WHO CAN WRITE CLEARLY. And know what the federal filing date is.
Sunday, August 14, 2011
College Costs and Parental Resentment: After Graduation
No, not my resentment. I have noticed a common theme in my chats with parents of recent grads: resentment at the costs.
I was chatting with a volunteer at the Food Bank Thrift the other day. I mentioned that I was searching for some nice clothes for Frugal Son, a recent grad.
Her:Do you feel that you were paying to fund a small country?
Me: No. Frugal Son made use of TOPS, a Louisiana free tuition program. He also got some other scholarships. I'm so glad he chose to go to a public institution.
Her: My daughter didn't. She went to *** (some private college I've never heard of in Iowa??? It must be fairly obscure if I've never heard of it.).
Me: Oh, well at least she's done. I hope it was a good experience.
Her: She liked it. I paid for it all. Then she went to grad school for physical therapy and dropped out after a semester. She's working at the Y and living at home.
Me: It's great that she has a job! And a lot of kids are living at home, so that's OK too.
Her: No, it's not OK. I told her to figure out what she wants to do. She's going to have to pay for it herself.
WOW!!! I don't know if I managed to convey the resentment and even anger emanating from this normally sweet-natured woman.
Anyway, it's probably too late for the soon-to-be college students, who have already made their choices and paid their tuition. Still, the message to parents has been let your child follow his or her bliss. The message from colleges is we're worth it! The abysmal job market for recent grads has perhaps revealed to parents some unarticulated and unacknowledged expectations.
Thoughts?
I was chatting with a volunteer at the Food Bank Thrift the other day. I mentioned that I was searching for some nice clothes for Frugal Son, a recent grad.
Her:Do you feel that you were paying to fund a small country?
Me: No. Frugal Son made use of TOPS, a Louisiana free tuition program. He also got some other scholarships. I'm so glad he chose to go to a public institution.
Her: My daughter didn't. She went to *** (some private college I've never heard of in Iowa??? It must be fairly obscure if I've never heard of it.).
Me: Oh, well at least she's done. I hope it was a good experience.
Her: She liked it. I paid for it all. Then she went to grad school for physical therapy and dropped out after a semester. She's working at the Y and living at home.
Me: It's great that she has a job! And a lot of kids are living at home, so that's OK too.
Her: No, it's not OK. I told her to figure out what she wants to do. She's going to have to pay for it herself.
WOW!!! I don't know if I managed to convey the resentment and even anger emanating from this normally sweet-natured woman.
Anyway, it's probably too late for the soon-to-be college students, who have already made their choices and paid their tuition. Still, the message to parents has been let your child follow his or her bliss. The message from colleges is we're worth it! The abysmal job market for recent grads has perhaps revealed to parents some unarticulated and unacknowledged expectations.
Thoughts?
Wednesday, July 27, 2011
Gifts for the College Bound: NO to extra-long sheets and quarters
Everywhere you look in the blogosphere, you see lengthy lists for the college bound: lamps, garbage cans, fans, fridges, even ironing boards! When we brought our scholars to college, we would see huge SUVs unloading masses of stuff--including cases of bottled water. Almost every scholar brought a dorm fridge and microwave--even though the dorms at my daughter's school had fridges and microwaves in EACH ROOM. So the tiny rooms were outfitted with 3 fridges and 3 microwaves. UGH.
Miss Em always brings too much; still she is restrained compared to most others.
Anyway, a cornerstone of frugality is WAITING. You can buy stuff at the college town, if necessary. And I am here to say NO to two commonly suggested necessities.
--Extra-long twin sheets. If you can get a good deal on these, go right ahead. I am kind of picky about sheets and only buy combed cotton. I found some combed cotton stretchy sheets at Ross for my dear child. What the scholar REALLY needs is a FOAM or FEATHER MATTRESS PAD. Dorm mattresses are thin. Once you put the pad on, you will discover that you can put your regular twin sheets ON THE MATTRESS PAD. Unless your kid is on the basketball team, a regular twin mattress pad will suffice and then you can use your regular twin sheets.
--Quarters for laundry. A lot of kids will NEVER do the laundry. And before you start saving quarters, find out if the machines even take them. At some schools, students have plastic cards that are loaded with cash. These can be used at vending machines, laundry rooms, coffee shops, and so on.
One expense from which there is no escape is textbooks. UGH. A gift card from the college bookstore or even good old Amazon would be much appreciated, I am sure.
Miss Em always brings too much; still she is restrained compared to most others.
Anyway, a cornerstone of frugality is WAITING. You can buy stuff at the college town, if necessary. And I am here to say NO to two commonly suggested necessities.
--Extra-long twin sheets. If you can get a good deal on these, go right ahead. I am kind of picky about sheets and only buy combed cotton. I found some combed cotton stretchy sheets at Ross for my dear child. What the scholar REALLY needs is a FOAM or FEATHER MATTRESS PAD. Dorm mattresses are thin. Once you put the pad on, you will discover that you can put your regular twin sheets ON THE MATTRESS PAD. Unless your kid is on the basketball team, a regular twin mattress pad will suffice and then you can use your regular twin sheets.
--Quarters for laundry. A lot of kids will NEVER do the laundry. And before you start saving quarters, find out if the machines even take them. At some schools, students have plastic cards that are loaded with cash. These can be used at vending machines, laundry rooms, coffee shops, and so on.
One expense from which there is no escape is textbooks. UGH. A gift card from the college bookstore or even good old Amazon would be much appreciated, I am sure.
Sunday, June 19, 2011
Advanced Degrees Worth the Debt
Something useful from Kiplingers: 5 Advanced Degrees Worth the Debt.
There are no big surprises in the list. What is especially useful is that you get information on average indebtedness, average salaries, and--most useful--AVERAGE MONTHLY REPAYMENTS.
You also see what a relative bargain in-state medical and law degrees prove to be.
College students should take a look also. Then they should look at this.
There are no big surprises in the list. What is especially useful is that you get information on average indebtedness, average salaries, and--most useful--AVERAGE MONTHLY REPAYMENTS.
You also see what a relative bargain in-state medical and law degrees prove to be.
College students should take a look also. Then they should look at this.
Sunday, June 12, 2011
How Much Is Too Much?
Oh, that question! Once you get beyond subsistence living, life is full of choices. The most recent query comes from Miss Em, blissing out in Florence.
I have a monetary question. Frugal goddess, please answer my queries.
How much is too much?
At first glance, it seems like the answer to that question here in
Italy is: EVERYTHING. Everything is too much. Coffee is too much.
Gelato is too much. Everything is expensive.But then again, one can't think like that. I spent a lot of money toget the plane ticket over here; what's the use of scrimping and saving and wasting energy thinking about how much things cost? That would only waste my valuable time here.
Summary follows of what other kids are doing: lots of bar-hopping, pub crawls (yuk?!!), side trips to Pompeii and even Switzerland, lots of souvenir shopping. Miss Em was horrified by the girl buying a daily 4-6 euro coca-cola!
Miss Em is nosing around Florence, exploring museums and neighborhoods. It should be noted that she will be traveling around Europe with her friend Maggie for SIX WEEKS after her program ends.
Ughhhh I guess that what I'm trying to say is, I see pretty things I
want, and some pretty things I've already bought! My purchases are WONDERFUL (will give account of them later) but they seem like such anexpense. How much should I budget for these material things for myself?
But the question remains: how much is too much? Or, how much should I budget for this month for food, so I can take the difference and buy myself something?
We did not give her a budget at all, relying on her good sense to know when to say yes and when to say no. It's easier to have a flat amount, of course: you can't spend more than xxx euros. OR, which may be true for some students, no budget because we have tons of money.
How we crave boundaries. Any ideas of a basic budget for students in Florence? Her lodging, a few meals, and several side trips are all v=covered. So far, even one gelato was covered!
I have a monetary question. Frugal goddess, please answer my queries.
How much is too much?
At first glance, it seems like the answer to that question here in
Italy is: EVERYTHING. Everything is too much. Coffee is too much.
Gelato is too much. Everything is expensive.But then again, one can't think like that. I spent a lot of money toget the plane ticket over here; what's the use of scrimping and saving and wasting energy thinking about how much things cost? That would only waste my valuable time here.
Summary follows of what other kids are doing: lots of bar-hopping, pub crawls (yuk?!!), side trips to Pompeii and even Switzerland, lots of souvenir shopping. Miss Em was horrified by the girl buying a daily 4-6 euro coca-cola!
Miss Em is nosing around Florence, exploring museums and neighborhoods. It should be noted that she will be traveling around Europe with her friend Maggie for SIX WEEKS after her program ends.
Ughhhh I guess that what I'm trying to say is, I see pretty things I
want, and some pretty things I've already bought! My purchases are WONDERFUL (will give account of them later) but they seem like such anexpense. How much should I budget for these material things for myself?
But the question remains: how much is too much? Or, how much should I budget for this month for food, so I can take the difference and buy myself something?
We did not give her a budget at all, relying on her good sense to know when to say yes and when to say no. It's easier to have a flat amount, of course: you can't spend more than xxx euros. OR, which may be true for some students, no budget because we have tons of money.
How we crave boundaries. Any ideas of a basic budget for students in Florence? Her lodging, a few meals, and several side trips are all v=covered. So far, even one gelato was covered!
Monday, May 16, 2011
Student Debt Encore Encore
I'm supposed to be relaxing; I turned in my grades last night. But this morning I listened to yet another installment of Student Debt Woes and Warnings. This time it was NPR.
I noticed that the students with the most debt attended private colleges. I can't help thinking that these schools, with their increases at double the rate of inflation for many years, are to some degree complicit in the problem. There are fewer articles on how student debt is GOOD DEBT. (Similarly, there are fewer articles on how MORTGAGE DEBT is GOOD DEBT). The idea was that GOOD DEBT was an investment in an appreciating asset, while bad debt was spending on a depreciating asset--like a television.
All I have to say at the moment: consider public education. Your debt will be smaller.
I have other things to say too, but will do so later. Oh yeah. Can't resist. Take the student debt quoted when you apply for your loan and MULTIPLY BY FOUR. And add on for the inevitable inflation factor.
Any words of wisdom on this topic?
I noticed that the students with the most debt attended private colleges. I can't help thinking that these schools, with their increases at double the rate of inflation for many years, are to some degree complicit in the problem. There are fewer articles on how student debt is GOOD DEBT. (Similarly, there are fewer articles on how MORTGAGE DEBT is GOOD DEBT). The idea was that GOOD DEBT was an investment in an appreciating asset, while bad debt was spending on a depreciating asset--like a television.
All I have to say at the moment: consider public education. Your debt will be smaller.
I have other things to say too, but will do so later. Oh yeah. Can't resist. Take the student debt quoted when you apply for your loan and MULTIPLY BY FOUR. And add on for the inevitable inflation factor.
Any words of wisdom on this topic?
Sunday, May 1, 2011
Frugal Son has a Net Worth!
So, fingers crossed, Frugal Son is about to graduate from college. He went to State U, incurring costs of zero. I had a lot of ambivalence and conflict about his not going the private route, probably more than he did. As far as I can tell, he is no more or less happy with his choice than other kids he knows, whether they chose private or public school.
Over the years, he has amassed bits and pieces of cash, either from working, or from gifts. This last year, he decided to buy stocks and utilities! He is ahead of me, since I've stuck to mutual funds in my fearful way.
He informs me that his net worth, some of which is in a Roth IRA, is a little over $16,000. And he has no debt.
I think this is a good start. In fact, he's bugging me about letting him choose investments for ME. I think I'm going to buy a few things.
MY SON THE FINANCIAL ADVISER. Any mom would be proud. Of course, I'm his only client and he's doing it pro bono. Credentials: a BA in English. Wow!
Over the years, he has amassed bits and pieces of cash, either from working, or from gifts. This last year, he decided to buy stocks and utilities! He is ahead of me, since I've stuck to mutual funds in my fearful way.
He informs me that his net worth, some of which is in a Roth IRA, is a little over $16,000. And he has no debt.
I think this is a good start. In fact, he's bugging me about letting him choose investments for ME. I think I'm going to buy a few things.
MY SON THE FINANCIAL ADVISER. Any mom would be proud. Of course, I'm his only client and he's doing it pro bono. Credentials: a BA in English. Wow!
Sunday, April 10, 2011
Victory, Panic, Reprieve
Like Funny About Money, I had a customer service win recently: the email I sent to Asics about Frugal Son's fallen-apart shoes was successful! I sent in the old shoes and they will send a new pair! Savings: about $60.00.
I didn't post about this because of a financial panic, also involving Frugal Son. As you may know, he spent 2009-2010 in Nantes, studying French. Upon return, he had to get credits from the home insitution. Hello, Bureaucracy! Hello, Procrastination! In the meantime, his scholarship was affected by the delay in not getting credits.
"Oh, by the way, I just got a bill for $9200.00, retroactive. I'm sure it will work out."
Yeah, maybe. So Mr. FS and I called various places at the university and the state offices. So far, we have gotten a partial reprieve. As of Friday, the bill is down to $5200.00.
The problem with bureaucracies is that you don't know if you've done something wrong (or not done something) until it's too late. I've heard horror stories about students losing scholarships (in one case of about $16000) because of neglecting to fill out a piece of paper. I almost made a mistake myself.
Now that the total reprieve is in sight, I can be happy about the replacement of the defective shoes.
It seems that the little financial victories are often accompanied by panic-inducing dangers also of the financial sort.
But it's worth taking a chance with Asics I guess. Just be mindful of the scary bureaucracies that hold so much power over us.
Any good customer service lately?
I didn't post about this because of a financial panic, also involving Frugal Son. As you may know, he spent 2009-2010 in Nantes, studying French. Upon return, he had to get credits from the home insitution. Hello, Bureaucracy! Hello, Procrastination! In the meantime, his scholarship was affected by the delay in not getting credits.
"Oh, by the way, I just got a bill for $9200.00, retroactive. I'm sure it will work out."
Yeah, maybe. So Mr. FS and I called various places at the university and the state offices. So far, we have gotten a partial reprieve. As of Friday, the bill is down to $5200.00.
The problem with bureaucracies is that you don't know if you've done something wrong (or not done something) until it's too late. I've heard horror stories about students losing scholarships (in one case of about $16000) because of neglecting to fill out a piece of paper. I almost made a mistake myself.
Now that the total reprieve is in sight, I can be happy about the replacement of the defective shoes.
It seems that the little financial victories are often accompanied by panic-inducing dangers also of the financial sort.
But it's worth taking a chance with Asics I guess. Just be mindful of the scary bureaucracies that hold so much power over us.
Any good customer service lately?
Wednesday, April 6, 2011
A Roth IRA for my Daughter
Ahhhh. A poignant moment. Miss Em earned about $1100.00 last year, so I urged her to start a Roth IRA. Of course, I had to help her through the complexities, which were exacerbated by computer glitches and other stuff. So a 15 minute on-line process ended up taking a lot of time.
Miss Em doesn't quite understand WHY I am so insistent on her Roth. I said, "In 40 years, when Mr. FS and I are gone, you will see this account and be happy you did it."
In case you are wondering, she got Vanguard STAR, a balanced fund, which is the only one with a $1000.00 minimum. We are putting it under our family account umbrella, so she is exempt from the low balance fee.
My college-age children earn very little money. They chose fully-paid-for scholarships, so we are happy to provide spending money and support summer programs. Both also volunteer in the summer. Their scholarships allow them the luxury of participating in service activities.
But when they earn some money, it goes into the IRA. Now our family has funded its Roths for 2010 and Mr. FS and I have funded for 2011. You have till April 18 to fund your 2010 Roth. JUST DO IT.
If you are lower-income, you may be eligible for a Saver's Tax Credit.
Do you love the Roth IRA as I do?
Miss Em doesn't quite understand WHY I am so insistent on her Roth. I said, "In 40 years, when Mr. FS and I are gone, you will see this account and be happy you did it."
In case you are wondering, she got Vanguard STAR, a balanced fund, which is the only one with a $1000.00 minimum. We are putting it under our family account umbrella, so she is exempt from the low balance fee.
My college-age children earn very little money. They chose fully-paid-for scholarships, so we are happy to provide spending money and support summer programs. Both also volunteer in the summer. Their scholarships allow them the luxury of participating in service activities.
But when they earn some money, it goes into the IRA. Now our family has funded its Roths for 2010 and Mr. FS and I have funded for 2011. You have till April 18 to fund your 2010 Roth. JUST DO IT.
If you are lower-income, you may be eligible for a Saver's Tax Credit.
Do you love the Roth IRA as I do?
Monday, March 7, 2011
College Debt Once More: Worth It?
I haven't written on this topic for a while. Then I got a comment on an oldish post. Rather than answer there, where it will languish in obscurity, I thought I would appeal to my readers for some more responses. From Alyssa:
Though the debt is daunting, as a senior in high school hoping to major in Anthro and Archaeo with an acceptance into Oxford (which will only give me a scholarship if I'm from a third world country) tucked under my belt, it seems worth it. However, struck by the thought of so much debt (with the current $ to pound exchange rate the tuition + room + board + extra expenses is about $43,000 (25000 pounds)) my parents forced me to apply to UIC. UIC does NOT have an archaeology program, only an anthropology one. Trying to explain to my parents (who did not go to college during the worst bubble for higher education in history) that debt may be my only viable option for succeeding in my major (compare UIC's lack of an Archaeo program to Oxford tons of onsite excavations and 6 world renowned museums) is near impossible.
For the average student, debt is horrendous. Humanities and Social Science majors on average do not make enough to cover for such costs, but ironically, theirs are the majors that are dependent on the school's resources the most. So when is it worth it? Pay the extra when you have a degree that pays off, but when you didn't really need to pay the extra? Working part time to pay off $130,000 (3 years at Oxford) doesn't frighten me as much as going to a school with a 54% graduation rate just to commit an act of "financial responsibility" does. Though the maxim "a good student does well anywhere" may be true, anyone who has seen a public high school juxtaposed against a magnet high school can attest that such "good students" are still limited by the opportunities within their environment, no matter how gifted they are.
Some of my thoughts.
--Many students don't end up doing anything directly related to their majors. Archeologists: jobs in academics, museums, what else? How do you KNOW this is what you want to do?
--Why UIC? Is that University of Illinois at Chicago? A while back, Stanley Fish was Dean there and did some pretty fancy hiring. In fact, I read that the quality of faculty far exceeded the quality of students! So it may not be such a bad option. I'm sure many students go to grad school in archeology with anthropology degrees.
--What about University of Illinois at Champaign-Urbana? That's the flagship?
--Here is my favorite. As a frugal gal, I try to think of OTHER WAYS TO GET WHAT I WANT. So, why not go to a state school and DO AN EXCHANGE PROGRAM AT OXFORD or similar? It should be better known, but, in exchange programs, you often PAY THE FEES OF YOUR HOME INSTITUTION. My son spent a year in France. The Americans from private schools paid $30,000-$50,000; the Americans from state schools paid their in-state fees. FOR THE SAME PROGRAM. In fact, I would check on the exchanges available from state schools before making a decision.
--Summers. With the money you save by going to a state school, you can do summer archeology programs. My cousin leads such programs in Israel and Turkey from his state school in NJ. You could go to Greece too!
Any other thoughts, Dear Readers?
Though the debt is daunting, as a senior in high school hoping to major in Anthro and Archaeo with an acceptance into Oxford (which will only give me a scholarship if I'm from a third world country) tucked under my belt, it seems worth it. However, struck by the thought of so much debt (with the current $ to pound exchange rate the tuition + room + board + extra expenses is about $43,000 (25000 pounds)) my parents forced me to apply to UIC. UIC does NOT have an archaeology program, only an anthropology one. Trying to explain to my parents (who did not go to college during the worst bubble for higher education in history) that debt may be my only viable option for succeeding in my major (compare UIC's lack of an Archaeo program to Oxford tons of onsite excavations and 6 world renowned museums) is near impossible.
For the average student, debt is horrendous. Humanities and Social Science majors on average do not make enough to cover for such costs, but ironically, theirs are the majors that are dependent on the school's resources the most. So when is it worth it? Pay the extra when you have a degree that pays off, but when you didn't really need to pay the extra? Working part time to pay off $130,000 (3 years at Oxford) doesn't frighten me as much as going to a school with a 54% graduation rate just to commit an act of "financial responsibility" does. Though the maxim "a good student does well anywhere" may be true, anyone who has seen a public high school juxtaposed against a magnet high school can attest that such "good students" are still limited by the opportunities within their environment, no matter how gifted they are.
Some of my thoughts.
--Many students don't end up doing anything directly related to their majors. Archeologists: jobs in academics, museums, what else? How do you KNOW this is what you want to do?
--Why UIC? Is that University of Illinois at Chicago? A while back, Stanley Fish was Dean there and did some pretty fancy hiring. In fact, I read that the quality of faculty far exceeded the quality of students! So it may not be such a bad option. I'm sure many students go to grad school in archeology with anthropology degrees.
--What about University of Illinois at Champaign-Urbana? That's the flagship?
--Here is my favorite. As a frugal gal, I try to think of OTHER WAYS TO GET WHAT I WANT. So, why not go to a state school and DO AN EXCHANGE PROGRAM AT OXFORD or similar? It should be better known, but, in exchange programs, you often PAY THE FEES OF YOUR HOME INSTITUTION. My son spent a year in France. The Americans from private schools paid $30,000-$50,000; the Americans from state schools paid their in-state fees. FOR THE SAME PROGRAM. In fact, I would check on the exchanges available from state schools before making a decision.
--Summers. With the money you save by going to a state school, you can do summer archeology programs. My cousin leads such programs in Israel and Turkey from his state school in NJ. You could go to Greece too!
Any other thoughts, Dear Readers?
Monday, February 7, 2011
Paying for Grad School: "Discounted" Tuition
There was another mediocre article today in the Wall Street Journal, this time about paying for graduate school. I'm not going to get into the usual discussions about should you or shouldn't you? or are humanities degrees worthless?
I just want to point to a tuition trick I've seen before. Trick is probably a harsh term. Scheme? Whatever.
When 24-year-old Kristi Roybal was choosing between graduate programs in social work and international studies, she picked one at the University of Denver, which offered her a $20,000 annual scholarship.
But with a $53,000 total annual tab, she had to figure out how to cover the rest.
About 5-6 years ago, a friend/student/neighbor suddenly decided that she wanted to get a Phd in Food Studies. At the time, I thought this was a bad plan because the person was clearly not cut out for academic life, though she was smart enough for anything. Anyway, she applied to the Anthropology Program at the University of Chicago, an august institution.
In reply, she received not a rejection, but an invitation to the MA Program in Social Thought or something like that. The letter had a perky tone: (paraphrase) "It must be strange to get into a program different from the one you applied for and with a scholarship at that!" She was offered $15,000 off of $35,000 tuition. And she actually thought about it for a long time, even though it would have involved a loan for AT LEAST $20,000.
I looked into the program and discovered that there were no designated faculty; there was no department. Students took various courses from various social science departments. In other words: a no cost program from the school. No wonder they could be so generous.
As for the young woman in the WSJ article: instead of thinking of the big discount from U of Denver (a private school), why not get your social work degree from your state school. You may not get a discount of $20,000, but you will be paying in-state tuition.
There are some cases where the prestige of the institution really matters: if you are seeking an academic career, the better the school (and that may even include undergraduate), the better your chances of being hired at a similarly prestigious gig. Law schools MAY be the same.
But social work? That's a vocational degree and I imagine that it's more important to emerge with few loans for what is likely to be a rewarding but low-paying job.
The scholarship tactic reminds me of stores: $100 off! I was thrilled by a scarf at an on-line catalog: reduced from $119 to $9 (!!!), I was swooning with desire. But I hesitated. And the scarf was removed from my cart. It had sold out. I realized that I already had scarves in the offered colors.
As always, it's not what you save, but what you spend.
Thoughts?
I just want to point to a tuition trick I've seen before. Trick is probably a harsh term. Scheme? Whatever.
When 24-year-old Kristi Roybal was choosing between graduate programs in social work and international studies, she picked one at the University of Denver, which offered her a $20,000 annual scholarship.
But with a $53,000 total annual tab, she had to figure out how to cover the rest.
About 5-6 years ago, a friend/student/neighbor suddenly decided that she wanted to get a Phd in Food Studies. At the time, I thought this was a bad plan because the person was clearly not cut out for academic life, though she was smart enough for anything. Anyway, she applied to the Anthropology Program at the University of Chicago, an august institution.
In reply, she received not a rejection, but an invitation to the MA Program in Social Thought or something like that. The letter had a perky tone: (paraphrase) "It must be strange to get into a program different from the one you applied for and with a scholarship at that!" She was offered $15,000 off of $35,000 tuition. And she actually thought about it for a long time, even though it would have involved a loan for AT LEAST $20,000.
I looked into the program and discovered that there were no designated faculty; there was no department. Students took various courses from various social science departments. In other words: a no cost program from the school. No wonder they could be so generous.
As for the young woman in the WSJ article: instead of thinking of the big discount from U of Denver (a private school), why not get your social work degree from your state school. You may not get a discount of $20,000, but you will be paying in-state tuition.
There are some cases where the prestige of the institution really matters: if you are seeking an academic career, the better the school (and that may even include undergraduate), the better your chances of being hired at a similarly prestigious gig. Law schools MAY be the same.
But social work? That's a vocational degree and I imagine that it's more important to emerge with few loans for what is likely to be a rewarding but low-paying job.
The scholarship tactic reminds me of stores: $100 off! I was thrilled by a scarf at an on-line catalog: reduced from $119 to $9 (!!!), I was swooning with desire. But I hesitated. And the scarf was removed from my cart. It had sold out. I realized that I already had scarves in the offered colors.
As always, it's not what you save, but what you spend.
Thoughts?
Friday, January 7, 2011
American Opportunity Education Tax Credit: Textbooks Included
For all the laments about the rising costs of college, there are plenty of people who pay low or no tuition. For some, perhaps most, this is need-based. For others, including many members of the middle class or beyond, this is merit based.
Why am I mentioning this? Because I have mentioned the American Opportunity Tax Credit to many people and not one had heard of it. There have long been tax credits for tuition and fees. And for most, tuition and fees ate up--and continue to eat up--the credit, In 2009-10 (and, I think extended in the recent lame duck congressional session), TEXTBOOKS are included in the $2500/year potential credit. TEXTBOOKS were never included before.
Because both of my children made use of their National Merit Scholarships, they pay no tuition or fees. THANK YOU CHILDREN FOR YOUR CHOICES. Like many, I have been appalled by textbook prices. Even with all my ingenuity and frugal bloodhound skills, I have seldom managed to save very much.
As of 2009, I can relax. The French text is $120 plus a $90 computer pad fee...well, tant pis.
But many don't know about this. My daughter wanted to lend her books to her pal last semester. The books were keepers and I didn't want them to go astray. Miss Em's friend had very high SATs and received free tuition at the same college. I told Miss Em to tell the friend to tell her parents that they would be eligible for the credit. Via the grapevine--from a doctor--a thank you.
Miss Em's hometown friend who received both need- and merit-based aid was lamenting the fact that she couldn't accompany us to Goodwill for a fun shop because she had to save for her textbooks. I told her to tell her mother about the credit. I hope she does.
Many students in Louisiana (TOPs program) and Georgia (HOPE credit) pay no tuition. Other states give free or reduced tuition to students--like my daughter's friend above--who have high SATs or ACTs (over 1400 seems to be required; over 1500 will be better. This is just for the first two parts. For the ACT, I think over 30 is the requirement. It may be higher.)
Even students at private schools may receive tuition scholarships. Textbooks, often not covered, are estimated to cost around $500/semester. I think this is a low estimate, since textbooks prices--like prescription drugs--are both required and prescribed by people often clueless about the cost to the users. Much has been written about the constant, unnecessary revisions in textbooks, which render used books unusable.
OK. Enough of that rant. For those who pay no or low tuition--and this perhaps applies to community college students in some areas--the American Opportunity credit can BE USED FOR TEXTBOOKS.
I hope Miss Em's pal's mom files an amended return for 2009 and 2010.
If you know anyone in a relevant situation, please pass on this info!
P.S. I am NOT A TAX EXPERT. LOOK INTO THIS YOURSELF. PLEASE.
Why am I mentioning this? Because I have mentioned the American Opportunity Tax Credit to many people and not one had heard of it. There have long been tax credits for tuition and fees. And for most, tuition and fees ate up--and continue to eat up--the credit, In 2009-10 (and, I think extended in the recent lame duck congressional session), TEXTBOOKS are included in the $2500/year potential credit. TEXTBOOKS were never included before.
Because both of my children made use of their National Merit Scholarships, they pay no tuition or fees. THANK YOU CHILDREN FOR YOUR CHOICES. Like many, I have been appalled by textbook prices. Even with all my ingenuity and frugal bloodhound skills, I have seldom managed to save very much.
As of 2009, I can relax. The French text is $120 plus a $90 computer pad fee...well, tant pis.
But many don't know about this. My daughter wanted to lend her books to her pal last semester. The books were keepers and I didn't want them to go astray. Miss Em's friend had very high SATs and received free tuition at the same college. I told Miss Em to tell the friend to tell her parents that they would be eligible for the credit. Via the grapevine--from a doctor--a thank you.
Miss Em's hometown friend who received both need- and merit-based aid was lamenting the fact that she couldn't accompany us to Goodwill for a fun shop because she had to save for her textbooks. I told her to tell her mother about the credit. I hope she does.
Many students in Louisiana (TOPs program) and Georgia (HOPE credit) pay no tuition. Other states give free or reduced tuition to students--like my daughter's friend above--who have high SATs or ACTs (over 1400 seems to be required; over 1500 will be better. This is just for the first two parts. For the ACT, I think over 30 is the requirement. It may be higher.)
Even students at private schools may receive tuition scholarships. Textbooks, often not covered, are estimated to cost around $500/semester. I think this is a low estimate, since textbooks prices--like prescription drugs--are both required and prescribed by people often clueless about the cost to the users. Much has been written about the constant, unnecessary revisions in textbooks, which render used books unusable.
OK. Enough of that rant. For those who pay no or low tuition--and this perhaps applies to community college students in some areas--the American Opportunity credit can BE USED FOR TEXTBOOKS.
I hope Miss Em's pal's mom files an amended return for 2009 and 2010.
If you know anyone in a relevant situation, please pass on this info!
P.S. I am NOT A TAX EXPERT. LOOK INTO THIS YOURSELF. PLEASE.
Wednesday, July 28, 2010
Textbook Computer Codes
I mentioned the other day that my daughter had to buy a $100.00 computer code for her French class to go with the $75.00 used book. The new book-natch-was $175.00. I didn't mention that her math teacher had the class purchase codes, but told them not to bother with the text. the text PLUS code was only a little more than the code alone.
Funny About Money plaintively inquired:
Computer access code!? Heaven help us.
That is inexcusable. Is there any reason classmates can't be put in groups or group themselves informally so they can all access the computer using one member's code? What if each kid in the group paid the person who sprung for the new textbook $10 or so? That would bring down her cost and let the students who can't afford to spring for $175 for a French text(!!!!!!!) save their money.
She probably wasn't plaintive, actually. It's a good question.
Not being in the textbook biz, this is what I think. Anyone who knows better/different, do not hesitate to set me right on this.
I think this is a way the publishers keep students from buying used or sharing. The codes provide access to all sorts of material for students--in that sense, offer extra value. BUT BUT BUT the codes have to be-I think-unique, because they are linked to quizzes.
The quizzes are--again, I think--composed, graded, and recorded BY THE TEXTBOOK PUBLISHER. This is a way that publishers market their books--"Look TEACHER, we can save you the dreary work of composing and grading quizzes."
Anyone care to correct me on this? Really, I'm just surmising. What do you think of the practice?
If I'm right, what is for sale is a unique code. The text itself is just gravy.
Funny About Money plaintively inquired:
Computer access code!? Heaven help us.
That is inexcusable. Is there any reason classmates can't be put in groups or group themselves informally so they can all access the computer using one member's code? What if each kid in the group paid the person who sprung for the new textbook $10 or so? That would bring down her cost and let the students who can't afford to spring for $175 for a French text(!!!!!!!) save their money.
She probably wasn't plaintive, actually. It's a good question.
Not being in the textbook biz, this is what I think. Anyone who knows better/different, do not hesitate to set me right on this.
I think this is a way the publishers keep students from buying used or sharing. The codes provide access to all sorts of material for students--in that sense, offer extra value. BUT BUT BUT the codes have to be-I think-unique, because they are linked to quizzes.
The quizzes are--again, I think--composed, graded, and recorded BY THE TEXTBOOK PUBLISHER. This is a way that publishers market their books--"Look TEACHER, we can save you the dreary work of composing and grading quizzes."
Anyone care to correct me on this? Really, I'm just surmising. What do you think of the practice?
If I'm right, what is for sale is a unique code. The text itself is just gravy.
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