How Working Can Help Your College Student

Wking-Help-College-Student

The financial, networking and training benefits of working while in college can seem pretty obvious. Students earn cash that can be used to offset loans, pay college costs and fund other expenses. They learn to value money and to budget. They can connect with professionals who may be able to help them locate and succeed in future jobs. They learn how to navigate the workplace, gain skills they can use in their careers and put classroom lessons into practical use.

What may not be so obvious is how working part-time during the academic year can also boost a student’s grades. Although a student’s first job is performing well in school, working for pay a few hours a week may help the student achieve more academically.

The most recent data available from the National Center for Education Statistics (NCES) backs up earlier research performed by Lauren Dundes and Jeff Marx of McDaniel College in Westminster, Maryland. Dundes’ 2006 study found that the academic performance of students who work 10–19 hours a week was better than all other students’ performance, including those who worked more or less and those who didn’t work at all.

According to 2012 NCES data:

  • The average GPA for all full-time college students is 2.99.
  • Those who worked 10–19 hours per week earned an average GPA of 3.07.
  • Those who worked 1–9 hours per week earned an average GPA of 3.10.
  • Those who did not work earned an average GPA of 2.98.

GPA Per Hours Worked

Estimated Hours Worked Per Week

Average GPA

0–40+ (overall) 2.988
0 2.981
1–9 3.105
10–19 3.065
20–29 2.972
30–39 2.895
40+ 2.971
Source: U.S. Department of Education, National Center for Education Statistics, 2011–2012 National Postsecondary Student Aid Study (NPSAS: 12)

Why Working Works

The reasons for the grade boost may vary widely by student, job and college, but researchers often conclude that the busier schedule forces students to better manage their available time.

Hanna, a graduate of an Iowa high school now attending Kansas State University, agrees. “Having the extra responsibility of a part-time job forces me to study more efficiently,” she said. “I know I won’t have the time to keep procrastinating.”

Another possible reason for the higher average GPA may be that students who work to pay for part of their education expenses are more invested in the outcome. Students who are likely to succeed because of their own goals and motivation may also be more likely to look for and obtain part-time work.

By: Iowa Student Loan

Iowa Families Can Win Cash for Educational Expenses – Register by May 11

Iowa high school students and their families can enter weekly drawings for two $250 awards, and Iowa high school seniors can enter a grand prize drawing for two $1,500 awards by completing a free online tool that helps them estimate the total cost of a four-year undergraduate degree.

Learn more and enter the giveaway today!

Iowa high school students, and their parents or guardians, can enter their information for the drawings after completing the College Funding Forecaster until May 11. The free online tool provided by Iowa Student Loan uses information from students’ freshman year financial aid award packets, as well as outside scholarships and grants and family savings and earnings, to project estimated costs, funding gaps and potential student loan debt over four years.

“We want to help families make the connection between first-year costs and the total financial investment in a college education,” said Steve McCullough, president and CEO of Iowa Student Loan. “This tool helps them see how their costs might increase, what happens when one-year scholarship awards are exhausted, and how the family and student contributions can play a role in reducing overall costs.”

The tool allows families to customize both expenses and available funding to adjust results for changes in students’ situations over the four years. The results show yearly and total estimated costs of attendance, available funding and projected funding gaps. The tool also provides informational tips on how to reduce costs and potential debt.

After viewing their results, users have the opportunity to enter the drawings. Two names will be drawn each week to receive $250 awards for educational expenses. In a grand prize drawing, two names will also be drawn to each receive $1,500 for the students’ college expenses in fall 2017. The grand prizes will be paid directly to the students’ colleges.

For details and complete rules for the giveaway, visit www.IowaStudentLoan.org/Giveaway. Or, to begin the College Funding Forecaster and enter the giveaway, go to www.IowaStudentLoan.org/Forecaster.

By: Iowa Student Loan

The Graduation Checklist for Parents

This milestone for your student can mean a lot of work for you. Use this checklist to bring some order to the chaos.

□ Work with your student to be sure they’ve completed the administrative steps to officially graduate.

  • Remind your student to follow through on these tips for college students and high school graduates.
  • Your student should receive information on how and where to obtain a cap and gown—along with any special stoles, pins, tassels or regalia—for the ceremony.

□ Consider mementos of the occasion.

  • Your student will have the opportunity to order class rings, yearbooks and other products to mark this important milestone. Check for deadlines.
  • Graduation is also a good opportunity for family and individual photos. Many photographers specialize in senior portraits.

□ Make any reservations required.

  • If you will be traveling to a college graduation, you may find that hotel rooms and transportation options are booked quickly and up to a year in advance.
  • Graduation party venues may also become scarce depending on location and number of other graduates on your desired date.
  • If you will order baked goods, catering, tents or other services, be sure to start that process early.

□ Invite friends and family to the party.

  • Work with your student to plan a celebration everyone will enjoy.
  • If guests ask what they can gift to your high school graduate, consider suggesting contributions to a college saving account or a gift card that can be used for textbooks and materials.
  • Don’t forget to have thank-you cards on hand for your student to send shortly after the celebration.

□ Start planning the move.

  • Whether your college student is moving to a new job or returning home for a while, he or she may need assistance. See our moving checklist for college graduates.
  • As your high school graduate prepares to move to campus, keep a copy of the college’s suggested packing list handy. Also see some items you may want to take care of before fall term begins.

By: Iowa Student Loan

PLUS Loan Basics: What You Need to Know

The federal Direct PLUS Loan for parents is a common option for families who need more money to pay the full cost of college. It’s often included in colleges’ financial aid award packets to make up the difference between other types of aid and the cost of attendance but, like student loans, you are not required to accept a PLUS Loan.

Before taking out a PLUS Loan, carefully consider its features, benefits and drawbacks.

Features of the PLUS Loan

  • Availability: The PLUS Loan is available to biological and adoptive parents, and in some cases stepparents, who do not have adverse credit history.
  • Limits: A parent can borrow up to the cost of attendance amount determined by the student’s school minus other financial assistance received by the student.
  • Interest Rate: The PLUS Loan has a fixed interest rate, currently at 7.00% for the 2017–2018 school year. The rate for the 2018–2019 year will be set on July 1.
  • Fees: An additional loan fee is calculated as a percentage of the loan amount (currently 4.264% for disbursements on or before Sept. 30, 2018) and is deducted from each disbursement.
  • Repayment: Borrowers may choose from federal repayment plans to repay the loan over 10 to 25 years. Repayment generally begins as soon as the loan is disbursed, but you may defer the payments while the student is enrolled at least half time plus an additional six months.

Benefits of the PLUS Loan

  • Cash flow: Obtaining a PLUS Loan before a college bill is due allows some parents to pay for the entire term without financing fees or late penalties and then make payments on the loan as cash becomes available during the term.
  • Pre- and overpayment: Some parents choose to make extra payments without penalty to pay down PLUS Loans more quickly and to lessen the impact of interest.
  • Federal repayment options: You may choose from among federal repayment plans (not all are available for PLUS Loans). PLUS Loan servicers also offer deferment and forbearance options if you have difficulty making payments, but be aware that interest continues to accrue daily even when payments are not required and unpaid, accumulated interest will be capitalized, or added to the loan balance at the end of the deferment or forbearance period.
  • Death and disability: The loan can be discharged if the parent borrower dies or becomes totally and permanently disabled. In addition, the loan can be discharged if the student dies.
  • Cancellation: If already taken out, you can cancel all or part of the amount before the loan is disbursed. After disbursement you have a little time to cancel all or part by contacting the school financial aid office.

Drawbacks of the PLUS Loan

  • Discharge: Federal PLUS Loans are rarely discharged for financial difficulties resulting from unemployment, age-related or other illnesses and injuries, or bankruptcy.
  • Nontransferable: You cannot transfer the PLUS Loan to your student to repay after your student finishes school. You and your student may be able to work together to refinance the loan in the student’s name through a private lender; doing so will result in the loss of federal repayment options.
  • Timing: Many parents face repayment of heavy loan debt burdens at a time of life when earning power generally decreases and limited income is needed for living or medical expenses. Default on a PLUS Loan can lead to the garnishment of Social Security benefits, tax refunds and wages.

Other Considerations Before Taking Out a PLUS Loan

The following items could be considered a drawback or a benefit, depending on personal and other circumstances.

  • Qualification: Approval for a PLUS Loan does not take into consideration income, other outstanding debt, assets, income or years to retirement, so consider carefully how much you will realistically be able to repay.
  • Interest: The fixed interest rate will not increase during the life of the loan, but you won’t be able to take advantage of lower market rates in the future.

Before taking on a PLUS Loan, you should also compare it to other options, such as our College Family Loan.

By: Iowa Student Loan

Iowa Families Can Win Cash for Educational Expenses

Iowa high school students and their families can enter weekly drawings for two $250 awards, and Iowa high school seniors can enter a grand prize drawing for two $1,500 awards by completing a free online tool that helps them estimate the total cost of a four-year undergraduate degree.

Learn more and enter the giveaway today!

Iowa high school students, and their parents or guardians, can enter their information for the drawings after completing the College Funding Forecaster until May 11. The free online tool provided by Iowa Student Loan uses information from students’ freshman year financial aid award packets, as well as outside scholarships and grants and family savings and earnings, to project estimated costs, funding gaps and potential student loan debt over four years.

“We want to help families make the connection between first-year costs and the total financial investment in a college education,” said Steve McCullough, president and CEO of Iowa Student Loan. “This tool helps them see how their costs might increase, what happens when one-year scholarship awards are exhausted, and how the family and student contributions can play a role in reducing overall costs.”

The tool allows families to customize both expenses and available funding to adjust results for changes in students’ situations over the four years. The results show yearly and total estimated costs of attendance, available funding and projected funding gaps. The tool also provides informational tips on how to reduce costs and potential debt.

After viewing their results, users have the opportunity to enter the drawings. Two names will be drawn each week to receive $250 awards for educational expenses. In a grand prize drawing, two names will also be drawn to each receive $1,500 for the students’ college expenses in fall 2017. The grand prizes will be paid directly to the students’ colleges.

For details and complete rules for the giveaway, visit www.IowaStudentLoan.org/Giveaway. Or, to begin the College Funding Forecaster and enter the giveaway, go to www.IowaStudentLoan.org/Forecaster.

By: Iowa Student Loan

What to Do If a Financial Aid Award Is Inaccurate or Incomplete

When that financial aid award notification arrives, check it carefully. Here are some circumstances you may run into and what you can do.

Situation What to Do
Contact information is incorrect. Contact the financial aid office with updated information. The student should also log in to the FAFSA portal to update information.
Financial information has changed since you submitted your FAFSA. Contact the financial aid office about drastic financial changes due to loss of a parent’s job or other circumstances.
The student wants to be considered independent for financial aid purposes due to a severed relationship or abusive situation. Students with extenuating circumstances in regard to their relationship with their parents may contact the financial aid office to clarify the situation and determine the dependency appeal process.
An expected federal or state award is not listed. If the student qualifies for but didn’t receive a federal or state grant or scholarship, first determine if the award is automatically granted to all eligible applicants.

  • If an automatic award wasn’t received, contact the agency responsible for administering it and notify the financial aid office.
  • If the award is not automatic, funds may not be available for all applicants. You may try contacting the agency administering the award to see if any remaining funds will be awarded later.
An expected institutional award is not listed. Not all awards are automatically granted to all eligible students. If the FAFSA was filed by the college’s priority deadline, contact the financial aid office to determine if any institutional awards are still available. If the award was offered by a specific department, ask a financial aid representative if the office has been made aware of the award.
A state or federal award was submitted to the wrong college. Contact the agency responsible for administering the award. Also notify the financial aid office and the financial aid office at the other institution of the mistake.
An unexpected award is listed. Many colleges consider an application for admission to also be an application for other institutional awards. If the student doesn’t meet the qualifications for an award, contact the financial aid office to clarify.
A grant or scholarship awarded by an outside entity isn’t shown. Tell the college about all grants and scholarships received. If an award is missing, contact the financial aid office.
A work-study award is listed. This award may be dependent on the student finding a work-study position and earning a paycheck based on hours actually worked. Start with the financial aid section on the college’s website. If that doesn’t contain information about how to locate and apply for work-study positions, contact the financial aid office.
Not enough aid was awarded to cover costs of attendance. If there is a large difference between aid and costs, some options to consider are:

  • Contacting the financial aid office to inform them of the situation and see if any additional aid is available.
  • Increasing student employment to earn income to cover the shortfall.
  • Asking about monthly payment plans.
  • Exploring less expensive education options, such as a public university or community college.
  • Relying on gifts or federal PLUS Loans for parents to help pay for college.
  • Taking out private student loans to cover the remaining expenses.

By: Iowa Student Loan

Winners Announced for 2017 Save Now, Save Later Program

Parents across the state of Iowa are getting a $1,000 boost to their student’s College Savings Iowa® account this winter, thanks to Iowa Student Loan’s Save Now, Save Later: College Savings Plan Parent Giveaway.

Fifty parents have been chosen as winners in the program’s fourth year. Each parent will receive the $1,000 deposited directly to the College Savings Iowa account of their registered child. The registration period ran during September and October and was open to Iowa residents who have a student in grades six through 12 at an Iowa school.

“This program really helps highlight the importance of saving for college and being proactive with planning for your child’s future,” said Shari Higgins, a 2017 winner from Nevada. “The information presented was useful and something I can come back to later as I have questions.”

Parents who registered had a chance to experience the Parent Handbook, a new online educational module from Iowa Student Loan. The handbook provides financial literacy tips for parents with students in middle school or high school.

After the registration period, entries were chosen at random from nearly 4,000 qualified participants. Iowa Student Loan works directly with College Savings Iowa on the giveaway. College Savings Iowa is the state’s direct-sold 529 program, administered by State Treasurer Michael Fitzgerald.

Winners of the Save Now, Save Later program:

Name City Name City
Kelsey Lorenzen Davenport Kristin Johnson Urbandale
Erika White Vinton Shari Higgins Nevada
Dawn Atwood Colfax Heather Kingsbury Vinton
Shanan Redinger Hanlontown Jennifer Sassman Waverly
Rhonda Sirfus Johnston Jennifer Tischer Mount Vernon
Michele Foreman Cedar Rapids Mary Hauptmann Algona
Kelly Willis Waverly John Flint Cedar Falls
Melissa Korell New Sharon David Finley Estherville
Rhea Wright Perry Karen Hamilton Council Bluffs
Rosely Imler Knoxville Susan Swartzendruber Knoxville
Amanda Lawless Saint Lucas Jason Carlson North Liberty
Jamie Carlson Guthrie Center Mary Dietrich Pleasant Hill
Sara Laures Cedar Falls Amy Carlisle Griswold
Amy Wilson Coralville Tami Wise Urbandale
Andrea Juergens Adel Lee Brungardt Council Bluffs
Dawn Gunderson Muscatine Nicole Metcalf Climbing Hill
Jody Fairbanks Anamosa Mundi McCarty Solon
Stephanie Gengler Merrill Julie Borelli Carroll
Andrea Masteller Clive Angela Beer Cedar Rapids
Amanda Salyars Muscatine Christina Hlas Adel
Eric Kovaleski Bouton Gayle Shatek Mason City
Kathy Oulman Forest City Regina Critchlow Carlisle
Tim Bloom Newton Tracie Rogiers Buffalo
Thomas Evans Dubuque Jody Sturmer Blue Grass
Amy Hammer Cedar Falls Scott McCarty Ottumwa

By: Iowa Student Loan 

 

College Visits 101

The college applications are in and the FAFSA is filed, so what should you and your student do while you wait to hear about acceptances and financial aid awards? Many families choose this time to visit or re-visit their top choices for next year. Here’s what you can do to make the college tour a valuable experience this winter.

Determine your itinerary for each trip.
The number of colleges you visit in a single trip depends on a number of factors, including the time available to you and your student, transportation and lodging costs, your and your student’s tolerance for multiple visits, and campus schedules.

Try to make a logical plan for visiting multiple colleges in a single region or trip to avoid backtracking, extra expenses or lack of time to see everything you want to. Also consider your student’s current commitments, such as class projects or extracurriculars, that may be distracting while he or she is traveling.

Check each school’s admissions website for blackout dates, campus breaks and scheduled events to help you choose an optimal date for each.

Contact each college.
Your student should be able to find the admissions officer responsible for your home region online and investigate the options for visiting. Some things to consider:

  • Is a scheduled visit day for scholarship recipients, accepted students or high school seniors the best venue for you and your student?
  • If your student hasn’t been accepted yet, does the college consider interest in its acceptance decision and how can your student best demonstrate that while on campus? If an interview is required or optional for acceptance or for a scholarship opportunity, is there an opportunity to do that?
  • Would you prefer a group campus tour and information session or a more individual experience if available?
  • Is your student able to attend an academic class, spend the night with student, or speak with club or activity leaders?
  • Will your student want to meet with an athletic coach, a professor who offers research opportunities, an academic sponsor or other faculty?
  • Do you and your student want to investigate resources for any special needs, such as dietary concerns, physical limitations or learning styles?

Allow your student to investigate and schedule any meetings or tours.

Sign up as required.
You may need to reserve a spot for a campus tour, informational session or special activity. Many colleges offer an online signup; you or your student may need to call or email others. Make sure you understand the process for joining a tour, meeting with faculty or students, lunch at a dining hall and other activities.

Determine what to do if you miss a scheduled time due to travel delays, weather or illness.

Do your homework.
Research statistics and information on the colleges’ websites, read reviews and student comments on social media, and compare offerings with tools like College Navigator. By making an effort ahead of time, you’ll know more about what to expect and what to look for. In addition, it frees you and your student to gather information that’s not readily available elsewhere.

See what to ask and what not to ask on college visits.

Be ready to create a record.
Depending on the number of colleges on your list, you and your student may easily start confusing or forgetting information. Be prepared to help with a notebook or notecards, by snapping photos, and bringing lists of questions you and your student have discussed for each campus.

After a round of visits, allow your student some time to digest information and form opinions before you ask for his or her thoughts about a campus or share yours.

Enjoy your trip.
Consider your student’s frame of mind when visiting colleges and be prepared to duck out early, graciously, if your student is overwhelmed or doesn’t feel a campus is the right fit. Find appealing activities to do in the surrounding communities if you have the time to provide a break from the tours and to experience life around campus.

Consider a respectful game of campus tour bingo to prevent tours from blending together.

By: Iowa Student Loan

Plan and Portion for College Success

Thanksgiving is a time to reflect and gather with family, but a successful holiday often requires advance planning and thoughtful portions of each element. Success after high school can be accomplished in the same way: having a plan in mind and accomplishing it in portions beginning as early as middle school.

Portion One: Determining Options

The first step is often considering the options available to your student. Will your child pursue a military career, a trade apprenticeship, a two-year degree or certificate, a four-year bachelor’s degree, or a professional degree spanning years of education and training?

Even if you and your student don’t have a clear determination yet, exploring the options — including important considerations like cost and entrance requirements — will lay the foundation for the following portions.

Portion Two: Financial Planning

Using the options found above, you and your student can explore costs for possible education or training programs and start to plan ways to pay. Look at average costs and costs at the high and low ends of the spectrum, as well as the recent history of cost increases to get an idea of how much your student might be expected to pay in total for his or her education.

Will you need to increase the amount you’re currently saving for postsecondary education? What other options, like college savings accounts, will be useful to you from a tax and financial standpoint? You may wish to consult a financial planner or tax adviser who is knowledgeable about paying for college for assistance.

Portion Three: Academic Requirements

Using some of the education options from above as a guide, determine the entrance requirements for each so you can make a plan for academics through high school. Options to take specialized or advanced classes may be available as early as middle school to allow for more of the same at the high school level.

Consider whether dual enrollment, Advanced Placement, International Baccalaureate, Project Lead the Way or other high school programs will allow your student to earn transferrable credits that cost much less than tuition. School and college counselors can often point students to programs that are most suitable for their goals.

Additionally, explore standardized test score and GPA requirements for admission and for specialized honors, merit or other programs. A goal helps your student understand why it’s worthwhile to complete homework and prepare for the ACT or SAT.

Portion 4: Scholarships

As high school graduation approaches, you and your student can start to look for scholarship opportunities that will provide funding for college or other postsecondary options. Knowing the requirements for earning specific scholarships ahead of time allows your student time to do what is needed to qualify.

Scholarships are often awarded by colleges and corporations for academic or athletic achievement, but other opportunities that don’t require specific accomplishments are available. Check into whether scholarships are offered by parents’ and student’s employers, organizations your student is involved in, community organizations and leagues, local businesses and the state and federal governments, as well as other sources.

Portion 5: Aid Application

Beginning the fall of your student’s senior year in high school, you and your child may begin completing financial aid applications to have a better idea of expected cost. The Free Application for Federal Student Aid, or FAFSA, is an online application that you and your student complete to qualify for federal and state aid (including grants, work-study and loans) and for financial aid awarded by colleges. Some colleges also require another application to award aid from their own resources.

Your student need not have made a final college choice when completing financial aid applications, but the colleges listed on the FAFSA that have accepted your student for admission will generate a financial aid award packet that lists your student’s expected costs for attendance, your family’s expected contribution from savings and earnings based on the information provided on the financial aid application, and the aid that college will award your student. These packages are meant to help your family make an informed choice about the program most affordable to your family while still meeting your student’s goals.

By: Iowa Student Loan

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