HBCUs, College Costs, and Money – Why You Should Care

I just finished reading a post in the Higher Education blog about Historically Black Colleges and Universities and I’m fighting mad.

the six-year graduation rates of 83 four-year HBCUs last year, finding that just 37 percent of black students attained degrees within six years. More striking than the low completion rate was the fact that the national college graduation rate for black students is actually 4 percentage points higher than that of HBCUs collectively, calling into question the long-held notion that HBCUs are better at graduating African Americans.

It’s not only the fact that only 37% of students at HBCUS are graduating after 6 years that’s getting me riled up. The part that stuck out to me the most is:

Asked about graduation rates Thursday, Education Sector panelists suggested that funding levels could not be discounted as a significant drag on student success at HBCUs.

“A lot of that [graduation] rate …. is grounded in money, lack of money,” Wilson said.

Some HBCU officials say they still encounter hundreds of academically eligible students each year who drop out of college because their financial need cannot be met with Pell Grants and other aid. The vast majority of HBCUs have small endowments, so there isn’t a pot of money to dip into when financial challenges arise.

I take two things from this:

1) Many students of color rely on financial aid to pay for college costs. To make sure that students of color have access to the funds they need financial educators like myself have to:
– Make sure that parents have access to more information about saving for college early and regularly.
– Reach students to plan for college costs earlier.
– Help students of color save and aggressively seek scholarships and grants.
– Assist families of color in better understanding college costs and finding the school with the best fit for them.

2) Students that graduated from HBCUs aren’t supporting the colleges and universities financially as much as they could. I wonder if there is an opportunity to assist HBCU students, and potential graduates, in becoming more successful and understanding how their contributing to their alma maters contributes to building a strong community.

I think we all know the reasons we want more youth to have access to higher education. More young people in college means fewer young people getting into trouble with the law or getting stuck in low wage jobs. If we want our communities to be strong then we have to do what it takes to support others that are striving for positivity.

In an effort to reach more HBCU students I’m making an effort to share my new book 10 Things College Students Need to Know About Money with all 105 HBCUs in the United States. To kick things off I’ll be visiting Fayetville, Atlanta, Birmingham, Jackson, and Dallas-Ft. Worth this August.

Want Shay to visit your school? Call Shay!

Save Money on College Costs

As it gets closer to the May/June season of graduations it’s time for many to think about college costs.

Even if you don’t think you will be awarded any income based grants, you should apply for aid using the FAFSA application just in case. It’s free to apply.

Remember to check that you want to have Work-Study grants on the FAFSA application. Work-Study grants allow for students have part-time jobs on campus. They are a great way to gain work experience and a decent wage.

Apply for grants from the school you’ll be attending as well as general grant clearinghouses such as Fast Web. Site should not charge you to have access to grant information.

Consider local, in-state schools as well as out-of-state schools. There are some very good bargains to be had in education. Don’t fall for the hype. Almost all undergrad degrees are equal. Going to a school with a great general reputation doesn’t mean that your major has a great department or that you’ll be offered a job automatically after graduation. Find a school that has a great department in your major and has great connections to jobs, research, etc.

Buy used textbooks. There is no reason to pay full price for textbooks. When you get on campus you’ll see notices from other students wanting to sell their old textbooks. Buying from other students is a great way to buy book cheaply. Another way to buy used textbooks is to visit the college bookstore or buy online.

Take out loans only as a last resort. Many students get stuck in student loan ruts.

Lastly, there are college and universities that will provide enough grants to make your college experience free! I found this list of 10 schools that will provide you with a great education and expect no payment.

For those that aren’t going off to college just yet, remember that high school students can:

– Take advance placement classes that will provide the student with college credit. Placement classes are available at high schools. Students sign up for these classes with their high school counselors. They are a great way to prepare students for the rigor of college coursework and shave a few dollars off of college costs.
– Take college courses at a community college while still in high school. Many students have done so well in their high school careers that by senior year they don’t plan on taking too many challenging classes. This is folly. Taking even two classes at a community college each semester over senior year, including summer, will knock off paying for a whole semester of college costs.

Guerilla Financial Tactics

In celebration of April being Financial Literacy Month my new eBook, Guerilla Financial Tactics, is available now for free download. This brief eBook suggests ways to evade would-be identity thieves and be proactive about staying off the financial grid.

Download Guerilla Financial Tactics here.

April is Financial Literacy Month – Establish Credit

Since April is Financial Literacy Month I’ve invited a few folks to share their blogs with my readers throughout the month.

One of the most often asked questions about personal finance is how to establish credit. There are several strategies that people use. One of my favorite tips is to get a cell phone. It’s a manageable monthly bill that will allow you to have a needed service while building credit. This article from The Smarter Wallet suggests a few other ways to establish credit.

Don’t forget to purchase a copy of Money Matters: The Get It Done in 1 Minute Workbook at a 25% discount (use code XS8K4YGX). Spread the word that financial literacy is power! Buy a book for a friend and a relative.

April is Financial Literacy Month – Financial Makeover

Since April is Financial Literacy Month I’ve invited a few folks to share their blogs with my readers throughout the month.

How many of us have seen those makeover shows on cable and wished we could have a financial makeover? Well, here’s your chance! This article on making over your financial life is a great place to start. It covers some simple, but important, tips to help you take control of your financial life.

Don’t forget to purchase a copy of Money Matters: The Get It Done in 1 Minute Workbook at a 25% discount (use code XS8K4YGX). Spread the word that financial literacy is power! Buy a book for a friend and a relative.

Each one teach one.

April is Financial Literacy Month – Credit Cards for Students

Since April is Financial Literacy Month I’ve invited a few folks to share their blogs with my readers throughout the month.

As we all know, the new CARD Act has a restriction that will prohibit people younger than 21 from applying for a credit card unless they have a co-signer that is older than 21 years old. That means that parents with students that will be heading off to college soon may want to co-sign for a card for their child to use in emergency situations, but how do you know which card is a good fit for a college student? This guest post from Digerati Life discusses some of the pros and cons of credit card usage for college students and which credit cards may be the best option for your student.

Don’t forget to purchase a copy of Money Matters: The Get It Done in 1 Minute Workbook at a 25% discount (use code XS8K4YGX). Spread the word that financial literacy is power! Buy a book for a friend and a relative.

Each one teach one.

Default: The Student Loan Documentary

I’m so pleased to tell you that the makers of Default: The Student Loan Documentary have partnered with Bigger Than Your Block to include the trailer for Default in all copies of my second book, 10 Things Students Need to Know About Money.

As you know, my work educating folks about how important personal finance is includes college costs as well. Right now paying for college is one of the biggest challenges many families have. Traditionally, taking out loans has been the way many college students have bridged the gap between costs and available funds. While loans are not bad in and of themselves, many students weren’t sure of what they were getting themselves into and found themselves with a mountain of debt. Default: The Student Loan Documentary will help families better understand loan products. I’m proud that this informational documentary trailer will be available with 10 Things College Students Need to Know About Money.

April is Financial Literacy Month – 50 Games to Play FREE

Since April is Financial Literacy Month I’ve invited a few folks to share their blogs with my readers throughout the month.

I love working with youth around financial literacy. To remind us that personal finance is not all series business here are 50 games that you can play with your child to help them understand financial literacy.

Don’t forget to purchase a copy of Money Matters: The Get It Done in 1 Minute Workbook at a 25% discount (use code XS8K4YGX). Spread the word that financial literacy is power! Buy a book for a friend and a relative.

Each one teach one.

College and The CARD Act

There are two real changes that have taken place for college aged youth.

– You will not be sent any pre-screened offers if you are under 21.
– You will not be able to receive a credit card if you are under 21 unless you can a) prove that you have sufficient income to pay the money back or b) you have a co-signer over the age of 21.

What does that mean for college students? It means that no longer will many college students have access to easy credit. That means that students will really have to buckle down and look at the bigger picture. Before you go to your parents and beg them to co-sign on a credit card with you, think about the potential implications of you racking up bills that you might not be able to pay and your parents becoming frustrated by your inability to pay. If you have a card together and you can’t pay it falls to the co-payer to foot the bill.

Many college students don’t even need credit cards while in college. Credit cards are a tool that can be used in emergency situations, but they tend to have high interest rates. I’d think long and hard before turning to credit cards to pay for my college expenses. Think about this, before The CARD Act, the average American college student graduated with a little over $3,000 in credit card debt. The average APR was 14%**. Paying the minimum balance, let’s say $50 a month, it will take you 9 years to pay off the debt. Instead why not be proactive and figure out what you want to spend money on and then come up with a plan to bring in at least that much money. Each semester students should:

Write down all income that you anticipate.
Write down a spending plan for all expenses.
Keep an eye on your credit score so you’ll be able to get a good job after you graduate.
Monitor your checking accounts closely to make sure you’re not needlessly overspending.

Get out of college, not into debt.

PEACE

* Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004’s $946 to $1,645. Twenty-one percent of undergraduates had balances of between $3,000 and $7,000, also up from the last study. (Source: Sallie Mae, “How Undergraduate Students Use Credit Cards,” April 2009)

** Average APR on credit card with a balance on it: 14.31 percent, as of December 31, 2009 (Source: Federal Reserve’s G.19 report on consumer credit, March 2010)

Cash Savvy Kids FREE Teleseries

I’m so excited that I’ve been invited to be a part of the Cash Savvy Kids Teleseries hosted by Raising CEO Kids! You’ll be able to listen to experts in the field of youth development and personal finance April 28, 29, and 30 talk about strategies to help your kids become cash savvy.

Each expert will provide an audio interview about their area of expertise and some great bonuses just for registering.

I’m giving away a bonus worth $20! Register now to get access to:

* Three Checklists: Adult, Student, Teen.
* Learn what you need to do now to take control of your finances.
* Use the Checklists to figure out what areas you need to work on.
* Use the Checklists with your children to help them better understand personal finance.

April is Financial Literacy Month – Psychology of Spending

Since April is Financial Literacy Month I’ve invited a few folks to share their blogs with my readers throughout the month.

The first blog is about the Psychology of Spending. I’m sure we all know that we shouldn’t spend more than we make and we shouldn’t purchase things based on emotion….. but sometimes that’s harder said than done. In that spirit here’s a great article with tips to help you use money wisely.

Don’t forget to purchase a copy of Money Matters: The Get It Done in 1 Minute Workbook at a 25% discount (use code XS8K4YGX). Spread the word that financial literacy is power! Buy a book for a friend and a relative.

Each one teach one.

Zahra’s Book Signing TODAY

Today I’ll be signing books at Zahra’s Books located at 900 N La Brea in Inglewood, CA. If you get a chance come on out! As a special bonus, those that buy books today will get the password to access 3 Financial Checklists to help your whole family get on the same money team. Happy Financial Literacy Month!

See you at Zahra’s at 2pm.