Alleviating the Stresses of an Expensive College Tuition

By: Claire Bendig, Recent Graduate of Chapman University

Tuition loans can be a cause of student stress, especially with enough interest accrued to require repayment well into the future. Difficult to evade, only determined hard work will eventually pay them off.

As a college graduate myself, we enter a world of endless responsibilities, unsure of what to do. The debt that is carried over from an undergraduate degree is astronomical. education-2385117_1920According to Student Loan Hero, a blog that guides indebted students, “Americans owe nearly $1.3 trillion in student loan debt, spread out among about 44 million borrowers. In fact, the average Class of 2016 graduate has $37,172 in student loan debt, up six percent from last year.”

There are ways to alleviate the stresses of an expensive tuition. FAFSA, or Free Application for Federal Student Aid, is a government form that qualifies students for aid based on their particular financial situation.  The problem for many is the tedious application process. It has more than 100 questions, including inquiries about parents’ assets, taxes and net worth.

In March 2016, a group of seven students went to Washington, D.C., to help pass a bill to streamline the FAFSA process. Patrick McDermott was among those who attended. As a student working with college freshmen in dealing with these issues, he says, “The FAFSA process could be made a lot easier by not only implementing the IRS direct transfer as is done now, but by streamlining the amount of information required in determining the monetary awards.” (The IRS Data Retrieval Tool has since faced security issues, causing it to be shut down for now)

Even though the application can be overwhelming for students to fill out, it is well worth the effort to gain access to guaranteed school funding.

Credit unions can help students with financial debt as well (along with other perks like reduced transaction fees, online banking, debit and low-interest rate credit cards). Organizations such as Credit Union Student Choice lay out credit union options for students and mentor them on how loans work and ways to evade interest penalties. When joining a credit union, if the student has a co-signer, they can get a lower interest rate.

In line with their mission to help others, credit union loans will often allow the co-signer to be without obligations if the student has been consistent with payments for the past 12 months. Toni Jaroszewicz, Detroit Branch Manager of Lake Trust Credit Union says, “We offer credit counseling and work with our young folks to help get them on the right track to pay down debt and implement plans that will lead them to financial success.”

Counseling is the educational foundation that is needed to better understand the expectations of the college graduate, and because of the member-status of account holders, credit unions are willing to provide more financial guidance than they are likely to find at banks. My peers and I have graduation fears because so much is unknown. By expanding practical education, we can enter the professional world more confident in our abilities to succeed.

Claire Bendig is a contributor to the Millennial Voice column for CO-OP Financial Services, a financial technology company for 3,500 credit unions and their 60 million members. She is a recent graduate of Chapman University in Orange, California, with an Emphasis in Creative and Technical Writing.

Student Loan miniseries just in time for for your college plans: #MyCollegeCorner

Students and parents are already gearing up for college payment decisions, so we put together a student loan miniseries on our Youtube Channel to help get the knowledge out there. #MyCollegeCorner features weekly updates, so subscribe to stay on track with your plan.  Today’s episode covers subsidized and unsubsidized loans.  Stay tuned for insight on Parent Plus in upcoming episodes.

John Hupalo on college planning solutions with “The Opening Bell” WGN Chicago

Families putting together college plans are looking at different avenues to find success.  John joined The Opening Bell to share some insight from the book “Plan and Finance Your Family’s College Dreams“, helping families get through the planning process.

  • Starting early on savings will reduce the need to borrow in the future.  There’s 529 programs in place with creative ways to hit savings goals over time. Consistent long term savings combined with any gifts can really grow.
  • College value is different for every family. Be realistic, rather than pessimistic or optimistic.  The planning process has many little steps involved to determine the right fit school considering everything going on in a young person’s life.
  • During election season, we hear ideas about “free” college and student loan debt forgiveness being made more widely available.  At the end of the day, college choices come down to individual decisions based on personal goals and needs. Real solutions are not easily found through claims made during elections.

Check out the full recording beginning @ 19:43 on WGNRadio.com

 

Three Simple Ideas to Start Fixing the Student Loan Mess

I’m back from a few days in Washington, DC.   Despite working on Capitol Hill for two years, I’m still struck by the disconnect that seems to exist between our real world and their political world.   These ecosystems need to collide if we’re going to seriously begin addressing the real world student loan debt crisis.  Here are three simple ideas that would help borrowers immediately and could be the basis for a long-term solution to the spiraling college debt problem:

  • Stop categorizing federal loans as “aid” on Financial Aid Award Letters
  • Stop charging students and parents origination fees to obtain federal loans
  • Start requiring the Direct Loan Program to report Annual Percentage Rate (APR) calculations

We know the statistics: there is $1.3 trillion of student loan debt outstanding. We’ve heard the sound bites: college loans hamstring graduates who have taken on piles of debt and are underemployed.  So what’s the answer? Previously I’ve offered my thoughts about college affordability and ways for students to avoid excessive debt. However, there are some factors that are simply out of their control and need to be fixed in Washington. And soon.

In the political world, current efforts are largely focused on relieving over-leveraged borrowers of repayment stress with loan forgiveness programs and income-based repayment plans. Great, but these programs address the problem after it has occurred and leave the root causes untouched.   We need to fix the problem at the source. In this case, before a loan is made.

Transparency and disclosure are all the rage – and rightfully so. But, the federal government comes up woefully short in providing adequate disclosure in two critical areas for the Direct Loan Program:

  • Marketing loans via colleges
  • The total cost to borrowers

Did you know that the federal government:

  1. Permits colleges to categorize federal student loans as “aid” on Financial Aid Award Letters.
  2. Charges borrowers fees but does not disclose an Annual Percentage Rate (APR) for their loan?

In effect, the largest student loan lender — with over a 90% market share — permits itself to market student loans as financial aid through colleges and universities without disclosing the APR. I bet the Consumer Financial Protection Bureau would have a field day with a private lender engaged in these business practices.

Loans as “Aid”

Remember the old story of the wolf in sheep’s clothing? I do whenever I think about a high school senior first encountering a student loan “awarded” via the financial aid process.   Or worse, a parent relieved that their child’s dream college is within reach because they’ve been “awarded” a PLUS loan. A PLUS loan is packaged as “aid” but it comes with big up-front fees and encourages parents to borrow up to the full cost of attendance as long as they don’t have adverse credit — a very low level of scrutiny. Intentional or not, the disingenuous miscategorization of loans as aid no doubt confuses borrowers and leads to some very bad decisions regarding college affordability.

APR not required for a lender with a 91% market share 

According to the College Board, for Academic Year 2013-14, approximately $113 billion of student loans were made. Approximately $9.7 billion of these loans were made by non-federal lenders, mostly banks, credit unions, finance companies and some state based entities.   Few, if any, charge fees to originate the loans, and all are carefully watched to ensure consumers are treated fairly and receive proper disclosures including APR calculations.

Then we have the other lender, the federal government, which made more than $103 billion in student loans.   This monopolistic market share resulted from a long political struggle to replace private lenders participating in the government’s guaranteed student loan program with a nationalized student loan program under the auspices of the Department of Education.

No matter your opinion of the Direct Loan Program, can anyone make an argument to justify:

  1. Why government charges fees to obtain loans when private lenders do not?
  2. Why the Department of Education is not required to disclose an APR?

The Good News – Thanks to the DoE

Kudos to the Department of Education for recognizing the first problem addressed here – student loans nicely wrapped in the sheep’s clothing of a Financial Aid Award Letter.   Beginning in Academic Year 2013-14, the DoE introduced its Federal Aid Shopping Sheet, which asks colleges to CLEARLY show the:

  • Cost of attending the college
  • Amount of grants and scholarships awarded to the student
  • Net Price that the family will pay.

The standardized form then delineates what options the family has to pay those net costs:

  • Work options
  • Federal loan options
  • Other options including non-federal loans

Thousands of colleges have agreed to use the Federal Aid Shopping Sheet but thousands do not. Some likely add to the confusion by providing students with both the institution’s Financial Aid Award Letter and the Federal Aid Shopping Sheet.

Here’s a federal regulation I would support: require all Title IV eligible colleges to use the same form of a Financial Aid Award Letter with simple and clear disclosures so families can easily compare the cost, aid packages and options for filling the gap.   Don’t re-invent the wheel: the Shopping Sheet seems to fit the bill very nicely.

A Final Thought

To end where I started: our political leaders, no matter how well intentioned, seem stuck on a very unproductive treadmill of churning out sound bites about the student loan mess.   They’re spending too much political capital addressing the symptoms of the problem rather than actually fixing it at the root.  It’s time to replace political sound bites with real world actions to help families avoid excessive student debt.  My suggestions:

  1. Require all Title IV eligible schools to use the Federal Student Aid Shopping Sheet
  2. Stop charging students and parents fees to obtain federal loans – the private student lenders do not charge fees
  3. Provide APRs to federal borrowers

What do you think?

 

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John Hupalo is the Founder of Invite Education and co-author of the recently released book: Plan and Finance Your Family’s College Dreams: A Parent’s Step-by-Step Guide from Pre-K to Senior Year

Invite Education Featured on “Money Matters” @KPFTHouston

It’s “Back-to-school” season and parents are looking for answers when dealing with the high cost of college.  Join Chris Insley of the “Money Matters” show on @KPFTHouston interviewing Invite Education CEO John Hupalo to discuss the new book Plan and Finance Your Family’s College Dreams.  Early savings strategies, student lending, choosing a major, considering career opportunities and other key topics are up for discussion and solutions.

Interview: Invite Education CEO John Hupalo on @KDURradio: “Plan and Finance Your Family’s College Dreams”

Rachel Frederico host of “Off the Rim” at Fort Lewis College Community Radio (@KDURradio) interviewed John Hupalo on the topic of college costs, savings and student loans, providing insight from the new book “Plan and Finance Your Family’s College Dreams.” The interview covers many topics including:

  • How college financing is a holistic planning process covering the years of early childhood leading up to high school graduation.
  • Why 529’s are so advantageous.
  • Translating the “lingo” of the college funding process into plain english.
  • What is a Gap Year and why it matters before college?
  • How can students and parents best manage college loans?

Check out the full recording:

 

Interview: Invite Education CEO John Hupalo featured on “The Experience Pros” talk radio

Invite Education CEO John Hupalo was featured on the Experience Pros  radio show talking about his new Book “Plan and Finance your Family’s College Dreams” and how parents are dealing with higher education costs today.

During the 9 minute interview, hosts Angel and Eric raise key questions that families are dealing with when it comes to paying for college, bringing up topics affecting many today, like savings plans, gap year and more.  Since college is not getting any less expense, parents are concerned.  Some highlights from the interview.

John: “94% of parents believe college costs will impact ability to pay for retirement.  College costs are increasing at a rate above inflation.  Parents are starting to scratch their heads and say “Is the cost really worth what’s on the other side?” Hopefully a graduate without too much debt in their pocket.”

How do we make this affordable if we didn’t start saving when they were toddlers?

John: “Not many families started early enough.  529 plans prevalent today were just barely getting off the ground 20 years ago.  Some families with children in high school woke up today without enough in their savings account, and they ask what do I do?   We say, take a deep breath, it will be ok.  There are opportunities to receive scholarships, need based aid, and merit based aid from the school. It’s a mistake to rule out any particular college before actually going through the financial aid process and getting a financial aid package back from the school.  They may be pleasantly surprised. Even for juniors or seniors in high school, by the time they graduate from college, that might be 5 or 6 years down the road, so saving a dollar today to offset some of those costs tomorrow is a good plan. Every dollar you can put towards actual reduction in that cost of school is a dollar less that has to be borrowed, and that’s a good thing.”

Is “gap year” a good idea?

John: “It depends on each student’s circumstance.  For most kids taking a gap year, it’s a great idea…  For some students it’s an opportunity to go out and work a little bit, maybe put a “down payment” on their college education so they don’t have to actually borrow as much.  Other students may not be properly motivated.  If you look at the data, students who do not complete the college course they are significantly more likely to default on their loans.  So they have debt and no degree — there 0-2.  That’s not a circumstance anyone wants their child to be in.  So a gap year could really be an important maturity year and an opportunity to earn some money.”

What about student’s that are dropping out because of debt?  Is debt impacting graduation rates?

John: “I think that’s right.  The answer is better financial education up front.  What parent would say to their high school senior, “Go to the local car dealer and pick out the car of your dreams and then drive away fully financed without terms that you actually understand.” Sometimes that’s what we do with some of our students, pick the college of your dreams, we’ll figure out how to pay for it later.  That just doesn’t work any more.”

 

John’s Jots #4: Defining College Affordability

Guess what – there isn’t a standard definition of an affordable college.   Google “Affordable Colleges” or “Is College Affordable for Me?” and you get a hodgepodge. No wonder families are overwhelmed when trying to figure out how they know if they can afford college or if they’re saving enough. How can families assess the financial fit of a college when the “experts” can’t agree on what it means for a college to be affordable?

I’d like to solve this problem for families.  I’ll tell you what I think — let me know if you agree or not — with the hope that we can start to demystify this important question.

First, despite the current good-faith efforts by many, my google search for “Affordable Colleges” amplified the problem.  The returns included:

  • The 100 most affordable colleges — after community colleges and others were eliminated from the sample.  But those that were eliminated are likely very affordable options.
  • Affordable colleges ranked by ROI — a measure that many champion as “the answer” which may be true if you can accurately predict a student’s future income and the total cost of college before your student enters.  Although I like ROI calculations and it’s a financial term that many use because it sounds sophisticated, its fundamental  value is as a backward looking comparative tool.  Like all such measures, the output  can only be as accurate as the inputs, which in the case of predicting college costs and post-graduate wages are highly variable, at best.
  • Affordable colleges ranked by annual tuition and expected income — the winners were the U.S. Naval Academy and West Point, which don’t charge tuition but require a highly selective appointment.
  • Advice to attend a community college for two years, then attend a state school, live at home, buy used textbooks, work at a paying job during the summer and avoid debt.

All good — but not particularly specific to guide a family. So I tried to narrow the search by asking “Is College Affordable for Me?”  I hoped that would give me more personal financial advice.  Here’s what I found:

  • A U.S. Department of Education Blog, which is mostly cheerleading about the  Administration’s efforts. The efforts, like most high-level policies are well intended, but don’t specifically help me unless I like to eat tax credits.
  • Many articles arguing to make some colleges free — likely driven by the election sound bites to make community colleges free.  A interesting political idea but somebody’s still going to have to pay for the college experience.  In this case, taxpayers.
  • A link to The Lumina Foundation’s excellent study arguing that a college is affordable if the total cost of a bachelor’s degree does not exceed the total of 10% of a family’s discretionary income over 5 years plus the amount a student can earn working 10 hours per week during the school year.  It’s mostly applicable to lower income families but is a useful guide.

Kudos to Lumina for more good work and an attempt to address the issue.   But what’s the answer for most families?  How does a family know if a college is affordable?

There are 5 factors that determine if a college is affordable without taking on debt:

  1. The college selected. Families have  COMPLETE control over this important part of the equation.   There are over 7,000 colleges and  universities — one will certainly be a good academic, social and financial fit.  Picking a college based on cost is one sure fire way of ensuring that it is affordable.  The problem: many, if not all, students and parents have a pre-conceived notion (their dream, which I completely get) of the type or specific college they seek, so many choose higher cost alternatives than they may need.  Knowing the student’s longer-term goal is helpful. Do they want/need a job after college or is grad school an immediate option?
  2. Family Income.   Financial aid is mostly driven by family income – not assets.  Need-based aid is readily available at most colleges — and some of the most selective colleges provide 100% aid for low income, high achieving students.
  3. Savings. How much will likely be saved by the start of freshman year?  Very few families will save 100% but establishing a savings plan early  — and contributing routinely — will make a big difference.
  4. Getting “Free Money.”   Grants and scholarships will help defray college costs.  In addition to federal, state and third-party grants and scholarships, many colleges offer generous Merit Aid to students who help the college fill-out the entering class.  The college may be seeking an actor or thespian or woman/man from a particular geographic area and will offer lots of money to them. Other times gifts from relatives and others help students cover college costs.
  5. Current Income.  Will parents and/or students be able to contribute cash while the student is in-school?

If these sources cover the full-cost of college (tuition, fees, room/board, other projected expenses such as travel), the college is affordable.   If there is a gap, the discussion gets more interesting because loans are now necessary — and this is where parents and students get into trouble.

Part of the problem: the federal government allows schools to include loans as “aid” in Financial Aid Award Letter  — including a Parent PLUS loan that is offered for the full amount of attendance with little  regard for whether the parents can actually afford the loan.  So the college indicates that it is affordable — based on packaging a boat load of loans without regard to a family’s capacity to repay them.  Sometimes, schools will also front-end load grants or scholarships that might not be renewed or available after freshman year.   Again, the college may appear to be affordable, but maybe only for freshman year.   It’s mind-boggling but true.  It’s like walking into a car dealership and getting a “no questions asked” loan to buy a Mercedes.   The dealer will no doubt think:  Enjoy the great drive — until we repossess the car because you can’t afford the loan payments (which, by the way, we knew before you drove away).  Don’t let this happen to your family!

In my world, a college is affordable if — after exhausting 1-5 above — the student or parents need a loan to fill the gap and BEFORE taking a loan consider:

  • Student’s post-college life.   Students needs to avoid the trap of simply taking big loans to attend the school of their dream without first UNEMOTIONALLY and REALISTICALLY thinking about what their goals are after college — how much are they likely to earn per month?  Before signing for the first loan, determine how much debt is likely to be necessary over 4 years and see what the monthly payment will be — for 10 or more years after graduation.  There are a few rules of thumb on this: Don’t borrow more than your first year’s starting salary. Don’t borrow more than 15-20% of your projected monthly disposable income.  If the monthly payments do not line up with projected income, that college doesn’t sound affordable to me.
  • Parent’s life style and retirement plans if they co-sign their students or take parent loans.   If parents take on debt to pay for their child’s education, they’re best advised to understand what it will mean to carry that debt for 10 or more years after graduation, which just may happen to coincide with their planned retirement.   Will the college debt extend the number of years they  have to work or substantially reduce the amount of their available retirement savings?   Do they plan to borrow against retirement savings?   If so, that college doesn’t sound affordable to me.

This may all sound simple. Theoretically it is:  choose a college that is affordable and offers a social scene and academic rigor in line with your student’s abilities and interests. We should also consider how the student can make progress from the challenges they face in college.  Ideally they are given the opportunity to learn from failure after giving their best efforts towards something they are passionate about.  Not everything has to be perfect to make for a great learning experience.  The result will be a happy, empowered college graduate who, like fearless Felix Baumgartner, lands on his feet: with a diploma in hand, a well-paying job, and student loans, if necessary, that are manageable.   And parents who have helped their child successfully navigate this process without putting their retirement or life style in jeopardy.

Let me know if you disagree with this train of thought — and why. Together we can help families grapple with this vexing issue.

 

 

 

 

Let’s help college students land on their feet like Fearless Felix

Meet “Fearless” Felix Baumgartner (“Jump” image from Flickr) – an Australian daredevil. Fearless Felix participated in the Red Bull Stratos Project. He rode a helium balloon into the stratosphere – 24 miles up and should be an inspiration for all of us to ask why all college grads can’t be more like him and land on their feet after their diploma hits their hand.Felix_Baumgartner_2013 Wikipedia

After saying,  “I’m coming home,”   Felix casually leaned forward to begin his descent from the high altitude balloon. And what a descent it was:

  • He was in free fall for 4 minutes and 19 seconds.
  • Reached a speed of 843.6 miles per hour – that’s Mach 1.25.
  • He caused a sonic boom – by himself – the first person ever to break the sound barrier without the aid of a vehicle.
  • He also came out of a death spiral. The engineers who modeled his free fall realized that at some point he would start spinning out of control, which had to be stopped in order to deploy the parachute on his back. So they taught him how to right himself if this were to happen.

Watch the You Tube videos of this. It’s mesmerizing and was motivational for me.

After:

  • two years of planning,
  • 2 test jumps,
  • many visits to a sports psychologist to overcome his one fear – claustrophobia, and
  • 1 delayed jump due to bad weather

On October 14, 2012, Felix:

  • jumped from 127,852 feet
  • controlled his in-flight wobble that could easily have resulted in his death
  • and proceeded to land on his feet.

A perfect landing. An Olympic gymnast would have been in awe.

So I have to ask you: How is it that we can dedicate that kind of ingenuity to accomplish such an audacious goal, but we can’t seem to find a way to have our college graduates land on their feet: with a degree, a well-paying job and if they need some loans, with a debt burden that is manageable.   It boggles my mind.

We’ll discuss this in more detail in later posts, but here’s a start for families trying to achieve their dreams of a college education for their children.

Parents and students should recognize that colleges are a business with two primary goals  for admitting next year’s class:

  • Maximize net tuition revenue
  • assemble a diverse class that competes favorably against peer institutions, is well-balanced with a talented pool of matriculants, and will make the class, the administration, the faculty and the alumni proud.

Too often families take a “damn the torpedos” approach and borrow whatever they need for “the best” brand name college    Families that resist basing this important decision mostly on emotion and instead act like traditional consumers — in this case of education — have a much better chance of a college graduate who lands on their feet.  Here’s a simple formula for success for families:

  • Be realistic, college is not for everyone.  Is it the student’s dream, or at least strong desire, to attend college?  Is the student properly motivated to be successful or are they fulfilling what they perceive to be someone else’s dream: a parent, guardian or guidance counselor?  Sometimes delaying college of a year or two, or not attending, is a a better choice than starting, only to drop out.
  • Determine what type of school best fits the student’s needs. Cost aside for this moment, a  4 year private college may be the right answer for many, but not all – particularly the very most selective which admit fewer than 10% of the applicants. Community colleges give many students a terrific start.  Public colleges offer excellent learning environments that are the ticket to success for many students.  The key is finding the best academic and social fit for that particular student.
  • Select a school in that spectrum that is affordable.  There is no magic formula for affordability but a one litmus test:  will the student and/or parent be required to take debt in order for the student to attend?  If so, will the student’s potential post-graduate job prospects likely pay enough to repay the debt. Likewise, is parental debt affordable based on income?  Is the parent’s debt burden affecting their retirement savings?
  • Have these conversations early and over time — starting as early as ninth grade with general thoughts and become increasingly concrete as the student’s record of achievement in high school takes shape, test scores come in, college visits are made and the student’s desires sharpen.  The earlier you start and the franker the discussion you can have, the greater opportunity you  will have to manage expectations and provide our son or daughter with practical advice that they will hopefully listen to.

Following these steps will help high school seniors select a school that is right for them academically and financially ,and will substantial increase the odds that they will land on their feet with a degree, a well-paying job, and student loans, if necessary, that are manageable.

John’s Jots: Reduce Customer Anxiety About Paying for College

More parents worry about paying for their kids’ college (73%) than they do about saving for their own retirement (68%). (Gallup, April 20, 2015). It is good business for you to help them by clarifying their options by offering information, tools and services to give them a chance to finance their family’s college dreams.

Here’s what you can do strategically to help them:

  • Identify the sources of funds they can use to pay for college.   There aren’t many so help them zero in on those that make the most sense for their situation:
    1. Savingsstarting early is preferred but it’s never too late to start. A penny saved today could translate into fewer dollars borrowed tomorrow.
    2. Free Money: The federal government, states, foundations, colleges and others offer financial aid including grants and scholarships.
    3. Current Income: Families who have been saving for college may also continue to contribute while the student is in school to reduce amounts the student might need to borrow.
    4. Loans: Loans should be at the bottom of the list of financing options used to close small gaps in financing. It is critical to help customers understand if the amount borrowed will be affordable after graduation.
  • Focus them on important issues: Paying for college is as much about understanding the cost of the college experience as it is about assembling a financing package. Significant issues that drive the cost of college up or down include:
    • College type: 2 vs. 4 year, public vs. private, in-state or out-of-state
    • Location: travel and living expenses vary widely
    • Living on campus or off?

Provide Resources.   Offer the information, tools and services families need to understand what it takes to fulfill their college dreams.   You have a trusted advisor relationship that affords you a unique opportunity to calm their trepidation while strengthening your bond.   It is a win-win for you and your customer.

Here’s what you can do to help them tactically:

  • Spice up your web site. College planning calculators, content and helpful links are very attractive value-additions to your web site. Invite Education’s experience with a commercial lender in New York is instructive. The bank put a College Planning button on its web site and had more than 20,000 visitors inquire about the service. This is a bank with a commercial focus — illustrating that employees are people too. They may have originally sought information about the bank’s services for their business purpose.  But when they arrived at the site, their personal curiosity prevailed and they sought guidance on an issue that affects them personally. It happens all the time.
  • Sponsor college-planning seminars (live or via webinar) on topics of interest to your customers on topics such as “Savings for College” or “Selecting Affordable Colleges.” There are many local experts, including guidance counselors and others, who would be glad to be featured at your event.
  • Offer a scholarship (and an internship?). It doesn’t have to be a large amount. Perhaps even offer a summer job or internship to the recipient. Students need cash for college but they also need experience for their resumes.   Picture your scholarship winner working at your institution – earning money while gaining experience and serving as your ambassador. You will leverage your scholarship dollars by creating good will in the community many times over.
  • Create a “Student Package.” Provide a package of products that students need (savings accounts, debit card, checking accounts – maybe even a secure credit card and/or loan product) and financial education outlining the benefits and responsibilities of the financial products you offer. These products and services to students — beginning in late high school and into college – will help you establish a customer for life.

Helping your customers and their students (your future customers) reduce their anxiety over the college process is good business. Get started today.

John Hupalo is the Founder and CEO of Invite Education, a company dedicated to providing the information, tools and services families need to effectively plan and pay for college. Learn more about John on LinkedIn and Twitter. His upcoming book Plan and Finance Your Family’s College Dreams: A Parent’s Step-by-Step Guide from Pre-K to Senior Year will be published by Peterson’s in June 2016.