With all this thought being given to college attendance and selection at an early age, I think that it would only be natural that parents also start planning on how they are going to get their student to that school (from a financial perspective). Based upon this assumption, I have come up with the following tips to help guide parents through a painless approach to saving for college.

• Save Early: It is never too early to start saving for college. Ironically, it is never too late either. Some folks believe in starting a college savings fund by the time their child reaches Kindergarten. Others have started long before the birth of their first child. The earlier you start saving the better chances you have of securing a sizable college fund by the time your student is graduating from high school.
• Start Small: One of the main reasons people give for not establishing a college savings fund is that they don’t have the extra discretionary cash to put aside. This may be the case in many households but my guess is that $5 a week or maybe even $5 a month may not be too much of a stretch for families to put into a college savings fund. As time goes on, and hopefully as extra income is available, parents could increase their college fund contributions.
• Be Consistent: $5 a week does not seem like much but if you start saving when your child is born, you could have $4680 (18×52x$5) in the bank by the time they head off to college… and that doesn’t include any potential growth on the investment. $4680 could cover all of the book expenses incurred by the student during their 4 years of college. Being consistent in your contributions not only helps your college fund but it also establishes a healthy practice of saving.
• Earmark Windfalls For College: I am not referring to the lottery as a windfall on this one (although that would be nice). I am thinking more along the lines of Christmas money, Birthday cash, Bar mitzvah moolah, etc… Basically, anytime you have extra cash that is for benefit of your child, you automatically put a portion (or all) of it into the college savings fund. This usually works pretty smoothly when they are young and don’t understand how money works but as they get older and “appreciate” what they can do with their cash; you are going to have a hard time diverting some of it to a “not-so-fun” college fund. However, this will be a great opportunity to turn this into a learning moment for your child about the importance of saving.

Practicing What I Preach

I hope the above tips help to get you thinking about the different approaches you can take on starting that college savings fund for your child. I want to conclude this article by giving you a little insight to how our family has established college funds for each of our three children (Ages 4, 3, and 18 months).

In the weeks following each of their births (usually after I got the Social Security card in the mail), I went to our local bank and opened up a savings account for each of our children. We have a set amount of money that is pulled from our household operating account each month and automatically transferred into their college savings accounts. In addition, we have taken every dime of Christmas and birthday money that the kids have received and we put it into those savings accounts. With the exception of a $20 “ticket” (his word not mine) that my 4 year old utilized recently to get a tractor – I told you it gets harder as they get older! Surprisingly, their college funds are doing pretty decent. My next step in this plan is to transfer the funds to a 529 savings option once they accumulate some more growth. My goal is to keep contributing to the savings account and making periodic transfers to the 529 savings fund. Once they head off to college, I will drain the 529 account as quickly as possible so that I don’t have to report it on my FAFSA every year (but that is a different article)…

Hope you found this information useful. Happy Saving!

If need be, click on the infographic to whisk you away to a larger version that is easier on the eyes.

This infographic has been graciously provided by Online Universities Blogs

As part of the coverage for Vice-President Biden, CheapScholar.org was recently highlighted by Mikaela Hunt from NBC 4 as a resource for  families and students trying to navigate the financial aspect of their college experience. Below is the video from that news segment and here is a link to where it can found on NBC’s site. Enjoy!

A wide range of costs

By not having to pay printing costs, those sizable savings can be passed on the consumer, in this case the student, right? Well, the answer that is most correct is – it depends. While some of the more sought after textbooks can be had digitally at savings of up to eighty percent compared to bound copies, studies that include other, less popular titles suggest that savings are negligible. Those who’ve finished their schooling, memories of lugging around heavy books around campus, probably have a hard time understanding why anyone would choose a traditional book over an e-book, but there are actually good reasons why adoption has been slow up to this point.

Converging realities

If you’re just entering college, the bottom line is that the future looks bright for your textbook costs to be much more affordable fairly soon. To support this silver lining, though, you need to understand a few key factors in why those costs aren’t already lower, starting with demand.

For many university students, the previous twelve years of their academic life was spent holding, carrying and reading traditional books. Hopefully by the time they began to matriculate into colleges, those in the pipeline had figured out how to really extract a lot of knowledge from a textbook. While their games had mostly moved to the electronics realm, the students didn’t have digital textbooks as part of any tradition. Some of these people became early adopters of digital texts, but most never switched, even for a try. Of those thirty-nine percent who did, roughly one third returned to their familiar, bound texts.

Other reasons for students not trying, or trying and then rejecting, e-texts has to do with the still lingering problem of overall computer skills. Uncomfortable with the interactive features of digital texts, some students made a conscious decision to learn their course skills, but not updated technology skills. In the end, these realities combined to produce low consumer demand for many e-book titles and publishers priced the products accordingly higher as a result.

As college goes, so goes the books

You don’t have to look too far back to find graduates who know the pace of acceleration college has experienced. Now, it’s likely that a graduate received an online bachelor degree, albeit using bound textbooks. Colleges have gone digital in ways unthinkable only a decade ago and Ivy League schools are well known to offer completely-online courses. But while students adapt to digital classrooms, there is still a bit of a lag in adapting to digital textbooks.

A leading reason many students still prefer paper to digital materials has to do with the lack of value added features on even discounted e-books. Students simply aren’t interested in electronic copies of a bound text. However, when a publisher adds value to a text, students respond with their wallets, saving themselves money and providing the demand publishers like to see as they invest more in products that don’t have printing and paper material costs to drive up prices.

Publishers are responding to student quality expectations, and they’re being rewarded by higher sales numbers. The cycle of demand driving down price is already showing up, and for that freshman, this means book costs are almost certainly bound to fall dramatically while he or she is still in college.

Today’s guest article was provided by Joseph Baker.

The following is guest article provided by Louise Tillotson.

If you’re undecided as to where you’re going to study, and are up for a challenge, why not think about taking your degree abroad? Over 40,000 American students went across the pond to the UK in 2010 for a summer, semester or a full year.

Finding a course

You’ll need to find a University (College) which has a programme for international students in the course/s you’re taking. A good place to start looking is the educationuk site, which lists all the places of study offering international placements.

If you’re not familiar with the various counties in the UK the site has information on all the colleges and universities in its database, so you can make an informed choice. For obvious reasons it might be easier to choose a placement which includes accommodation.

Getting a Visa

Once you’ve settled on your place of study, you’ll need to decide how long you want to remain in the UK for, and obtain the necessary visa. A ’student visitor’ visa entitles you to stay in the UK for up to 6 months, without working. A general student visa covers you for up to 4 years and allows you to take a part-time job or do volunteer work while you’re studying.

Finding Accommodation

Halls of Residence tend to be the most popular choice for first year students as it helps them to meet their fellow students and adjust to campus life. Most Halls provide a basic room with a bed, desk and chair, and have a canteen offering cheap meals to the students.

Some Halls are self-catering, with a communal kitchen for all the residents to use. This can be useful if you have particular dietary needs or prefer to bring food from home.

Places in the Halls are limited, although international students are generally given preference so make sure you indicate that you require accommodation when you apply. You can expect to pay anything between £100-£200 per week for a basic room, less if you go self-catering. Utilities and internet bills are included.

If you can’t get a place in Halls, there are always a number of off-campus flats and houses available although these tend to be more expensive and may not be furnished. Rent will vary depending on the location; anything from £50 to £95 per week is considered normal. It’s advised that you start looking for a place as soon as you’re accepted on the course.

Other Costs Involved

Tuition fees in the UK can be much lower than in the US. The highest a UK student can expect to pay is around £9,000 (roughly $14,000), whereas in the US an annual fee of $20,000 is commonplace. Fees are paid as part of a student loan, which is then paid back once the graduate is earning over a certain amount. International students can also get loans for foreign study, but you will need to prove you have a place at a UK place of education before you can apply.

Food: Depending on your preference and where you’re staying, allow around £30-£50 per week. Buying the supermarket own brand products and sharing the grocery bills with your housemates can often work out cheaper than buying everything yourself and getting takeaways every night.

Telephone/Internet: If you’re in shared accommodation you and your housemates will be able to share the cost of the phone and internet, so you could probably get away with a cost of around £10 per week. You could also use internet cafes or University library resources if you don’t need to use the internet a lot.

Cell phones, called mobiles in the UK, will be expensive to run if you keep to a US SIM card. You can get free pay-as-you-go UK SIM cards to use while you’re there, although calling home will use up  a lot of the credit. If you plan to call home a lot, arrange for family and friends to install Skype so you can speak to them over the internet for free.

Household bills, such as utilities and council tax, can be shared with your housemates and you can expect to pay around £10-£15 per week for your share.

Insurance: If you do stay in a private house or flat you’ll also need to consider contents insurance for your personal items, but this can be for as little as £5 per month. If you drive, you’ll also need car insurance which can be rather more expensive. If you get a place close to campus it would be cheaper using public transport. You can get a student bus pass for as little as £9 per week, which will cover all bus journeys in a certain area.

Socializing

Don’t forget to have fun while you’re in the UK! The legal drinking age is 18, and most University campuses have their own bars serving alcohol well into the night.

Many places offer student discounts, so always carry your student card with you to make the most of this!

Carrying Currency

If you’ve got a credit card already this will probably be accepted throughout the UK. However, it might be easier for you to get a prepaid card which allows you to pre-load it with money before spending it. Many students prefer this option, as prepaid cards can be used just like credit cards but avoid the temptation to run up any debts.

You may need to open a UK bank account, especially if you get a part-time job. You might be able to transfer money from your US bank account to a UK bank, so ask in your local branch at first.

To open a UK bank account you’ll need your passport, letter of acceptance, a UK address and references/statements from your home bank.

The following is a guest article provided by Joseph Baker.

Many liberal arts educations are set up in such a way that encourages students to try their hand at many subjects before settling on a major. The idea is noble in that discovery is one of the most important parts of higher education. Exposure to new ideas of which you were previously unaware can be the catalyst to a lifetime of passionate study. On the other hand, many students get stuck in indecision, taking on a major that may be convenient for grades but not representative of the career path they want to follow.

When a company wants to test something out, they create a rapid prototype of it. A rapid prototype is essentially a model from which the manufacturer can determine what changes need to be made before a product is churned out en masse. It helps save costs during the manufacturing process because a small mistake could result in a huge and costly recall.

Indecision could be that defect. Coming into college with an actionable plan for what you want to achieve puts you on a dedicated path and gives you a focus and a goal to strive towards over your college career. That’s not to say there can’t be variation – you can and you should attend classes that interest you, that put you out of your comfort zone. Sometimes those classes are the most important ones. Just don’t lose sight of your goals. Even if they change, making sure you are aiming for more specific than “a degree in something” will help you avoid the same pitfalls that consume year after year of students.

Speaking from experience, this is the largest and most depressing reason to switch around your college career. By my junior year I was working three jobs, enrolled in the honors curriculum and drowning in the stress and anxiety of it all. Financial aid had run out and I was failing in classes I cared about. It’s not uncommon. In fact, it’s long been known that dropout rates are linked to financial woes.

Students who pay for school themselves are more likely to dropout due to financial issues than those who get help from their families, according to a survey conducted by Public Agenda reported by the New York Times. Many students are faced with the reality that they may not graduate on time due to class scheduling, changing majors, and other factors. The survey shows that 2.8 million new students enroll in higher education every year. Of this number, only one in five students who enroll in an associate’s degree program graduate in three years, and two in five who enroll in a four-year plan graduate in six years. Students who face paying for tuition themselves may not be able to afford the tuition for extra years.

When money woes occur, there is often very little you can do about it other than try to mitigate your exposure, find more college money resources (apply for grants and scholarships like crazy, take on a second job, take cheaper classes) or drop out. It’s a dreary juncture to come to and it can be avoided with a comprehensive plan going into college. It’s a tall order to ask a high school student or first year freshman to plan their academic careers in advance, but the payoff, though distant, is worth it.

In an effort to celebrate this momentous occasion, CheapScholar.org has teamed up with eCampus.com to provide some great gifts for our readers. For those that don’t know, eCampus.com is a leading retailer of textbooks and college apparel. They not only rent and sell textbooks but they also provide top dollar for students looking to make some money from their used books.

To help alleviate the impact on your wallets next semester, eCampus.com is providing a $200 gift card that can be utilized on their website. Since textbook rental is much cheaper than buying outright, it is very possible that this $200 prize could take care of all of your textbooks expenses next semester. In addition, if you find that you have any money leftover, you can shop for a number of other items on eCampus.com.

The following represents the many different ways in which you can submit an entry into the giveaway:

• You can leave a comment below
• You can follow CheapScholar.org on Twitter
• You can like CheapScholar.org on Facebook
• You can mention this contest and @CheapScholar on Twitter
• You can subscribe to receive our informative articles via email

Each of the methods above will give you an entry into the giveaway.  So, you could potentially have up to five chances to win the $200 gift card from eCampus.com…

***WINNER UPDATE***

Sarah Walker is the winner. I will send an email out to Sarah so that she can claim her prize. Congrats to all that participated. Be sure to stay tuned for another giveaway that we will be doing in January.

***WINNER UPDATE***

This giveaway will close on Saturday December 10th at midnight (Eastern Standard Time). I will randomly select a winner (using the wonders of technology) from the entries and announce the winner on this article on December 11th.  The winner has a week to contact me and arrange for delivery of the $200 gift card. If I don’t hear from the winner, I will randomly select an alternate.

Hope you enjoy this giveaway. If you know of any deserving people that could make good use of free textbooks or college apparel, please feel free to utilize the “share tab” below to pass this information onto them.

Good Luck!

Over the next few months, higher education institutions will be convening their boards and trustees to help establish what their position will be on tuition pricing for the upcoming academic year. When it comes down to it, they really only have three options: Increase Tuition Rates, Freeze The Cost of Tuition, or Reduce Tuition Rates. Let’s take a look at these three options and see the pros and cons for each.

Increase Tuition Rates

Pros:

• Price (higher) equals prestige…
• College will be better equipped to meet budget demands and provide more student focused initiatives

Cons:

• Students will have to find a way to cover the additional costs…
• College may price themselves out of range for some prospective families
• Some upperclass students may not return (probably because of other issues but the tuition increase may provide additional justification)

Some tuition increase articles from the last year:

• Warning! – Double Digit Tuition Increases Ahead
• Princeton University Sets The Pace For Tuition Increases
• Massachusetts Students Brace For Record Tuition Increase
• Want To Avoid Tuition Increases? Here Are 5 Tips!

Tuition Freeze

Pros:

• Keeps tuition rate at the same level and families and students don’t have to worry about absorbing additional costs
• Provides a marketing tool for the university when trying to recruit prospective students
• Could help to boost enrollment numbers for incoming and returning students

Cons:

• University will have to absorb the lack of tuition increase into their budget (may not be a problem for many but with costs rising in every other sector it could be a challenge)
• Based upon the above, some new student programming initiatives may be delayed indefinitely

Examples of schools providing tuition freezes:

• 13 Colleges That Guarantee No Tuition Increases
• EMU Displays Oneupmanship With Freeze On Fees
• University of Missouri Freezes Tuition for 2010-2011
• Tuition Freeze at Maine Community Colleges

Reduction In Tuition

Pros:

• Students (and their families) will be holding parties in the streets in favor of this decision
• Provides a huge marketing edge for the university to use in recruitment of prospective students
• A reduction in tuition rate may put a college or university in the prospect pool for more families.

Cons:

• In order to sustain/support this model (tuition reduction) a university or college will need to have steady growth in enrollment.
• If the tuition reduction is rolled out to upperclass students (and depending on the amount of the reduction), their financial aid packages may need to be adjusted accordingly so that the desired net revenue is still met by the college (University of the South – Sewanee recently got some flack for this approach)
• Students will not have as much tuition expense to deduct on their taxes using the 1098-T. This is actually a good con!

Examples of some colleges providing a reduction in tuition costs:

• Reducing Fees – An Outside of the Box Approach to Tuition Pricing
• University Of Charleston Vows To Cut Tuition Rates By 22 Percent
• Cutting Tuition, Increasing Revenue – Muskingum, Albertson, and Wells College

So What Do You Think?

After looking at all of these options, what do you think would be the best approach for your university or college to adopt as it moves forward in tuition pricing for the upcoming academic year. Can you think of any other options or approaches to tuition pricing? Feel free to leave your comments, thoughts, or ideas below.