Obama is President. What does that mean for college costs?

This morning, we woke up to a new President-elect. Barack Obama.

Our new President has a lot of work ahead of him, and one major issue (the one I'm sure you're very concerned with) is paying for college. Recently, President-elect Obama sat down with Sway from MTV and talked about college costs and student loans. Below is the discussion. If you want to read the entire article, click here.

In the meantime, have a great day!

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If he's elected Tuesday, Senator Obama said he'd work to create new programs — and overhaul existing ones — to help students pay for their college education, which he said was vital not only for young people, but for the overall future of the economy.

"Look, this is something I can relate to," he said, answering a question from Joy0294 of San Antonio, Texas. "I went to college having to take out student loans. I went to law school having to take out loans. Michelle took out student loans. When we got married, I think together, our total loan payments every month [were] more than our mortgage when we bought a house, and that lasted for about 10 years."

Obama said that the average student applies for between $25,000 and $30,000 in student loans, and "that's a huge burden, especially at a time when wages and incomes aren't going up." Obama said he'd like to increase the Federal Pell Grant Program for starters, but also "eliminate banks as middle men from the Direct Loan Program; they're taking out billions of dollars in profits. I want to take that money, apply that to increasing the number of loans that are out there and reducing the rate. And then, what I want to do is provide a $4,000 tuition credit to every student every year, in exchange for national service."

The credit would be available to students who volunteered with the Peace Corps, worked in their communities in some fashion or joined the military. "We're going to make sure they can afford their college tuition," Obama said. "In certain areas, like teaching, where we really need teachers, especially in math and science and nursing, where we really need nurses, we will potentially provide them even more than that, to get the high-quality teachers and nurses we need."

Those who already started incurring student loan debts won't be left out in the cold, either. Senator Obama said he'd work to find ways to consolidate some student loans. But, he admitted, "there's only so much we're going to be able to do going backwards."

Answering a question from Seb88 of Buffalo, New York, he said that we need to "focus on going forward. There are a lot of students out there who have already paid off their loans, and they may not be happy with it. They wouldn't mind getting some of their money back too.

"By the way, this isn't just four-year colleges and universities," he continued. "My attitude is, if young people are going for two years at the community-college level, for some technical training of some sort, or if they are returning to school after having worked for a while, all that is part of creating a knowledge-based workforce that's going to be the key to our competitiveness long-term. We're looking at potentially being able to consolidate some of these loans, and, if they are part of a broader pool, we may be able to lower interest rates on the debt they already owe. But the key is, going forward, making sure young people will be able to afford to go to college."

Avoid college credit card debt.

As the cost of college continues to rise and private loan options cut-back, more students are paying their tuition bills with credit cards. The result? Average students will leave college with $2,600 in credit card debt. Like you don't have other things to worry about after graduating: like getting a job.

Putting your tuition on a credit card is the worst thing you can do. 

When you rack up consumer debt on top of your student loans, you're just asking for trouble, and hurting yourself in the long run.

Paying for college requires a bit of foresight and some planning, but you can find alternative ways of paying for school--without racking up debt. Pursue scholarships early, ask for micro-loans from friends and family, be creative. If you want more information about how to save money in college, check out my ebook: The College Cash Course: 12 Ways to Start Paying for College Now.

For more information about credit cards and tuition, click here.

MEFA money shortage: how does it affect you?

Paying for college issue for presidential candidates.

If you are watching the candidates for this year's presidential election, pay close attention to their views regarding higher education--it directly effects you! I don't care who you're voting for (you need to choose who you think is best), but it is important you get involved with the process and make your voices heard in November.  

Here is an article I found today regarding the candidates: article here.

McCain's educational plan here.

Obama's educational plan here.

Please take the time to compare and consider each plan--it's your future!

The true cost of college.

When you apply for college, you might think that the price tag listed on your university's website is the real sticker price. However, this estimate could be significantly less than the true amount you will be spending. 

In order to figure out the true cost of college, consider the following expenditures:

1. Tuition (this is a no-brainer).

2. Fees. Fees are a lot like taxes for college kids, they include things like lab fees, student activities fees, etc.

3. Room and Board. (where you live and what you eat)

4. Travel. All those weekend trips are going to cost money. And, you have to go home every once in a while.

5. Textbooks. Please see my previous post on how to save on textbooks, but this can be a big expense!

6. Extra supplies. Are you going to buy a computer? How about study abroad?

7. Health insurance. You are most likely covered by your parents if they have an insurance plan. However, some schools require you to purchase health insurance if you don't have it. 

When all these expenses are totaled up, you should have a pretty good idea how much you'll be spending. (Don't forget to add in about 5% for miscellaneous expenses.)

If you want to get an estimate on how much you'll be spending for college, goto the government's free college cost estimator here. 

Tricks of the college textbook trade. Save hundreds.

It is a dreaded but necessary expense: college textbooks. In one semester alone I paid over $600 for my books, and I know people that have had to paid more. The problem? By the end of your college career, you may spend upwards of $4,500 for textbooks--most of which you keep because it is almost pointless to sell them back (imagine my shock when I tried to sell back my Organic Chemistry books only to be offered $40 for what I paid $150). 

But, never fear. There is hope! Both professors and publishers are starting to realize that more and more students have access to the internet (duh). And, they are catching on by choosing and offering textbooks in e-format. So, before you goto the campus bookstore and spend a fortune, check out these places for online (and cheaper) versions of your assigned textbooks.

1. ichapters.com. This site offers the widest selection of e-books and single chapters of common textbooks (about time, it is so annoying when professors ask you to buy a book only to assign three chapters). They also offer regular old print textbooks with a smaller price-tag.

2. coursesmart.com. Like ichapters, this website offers online textbooks from over 4,000 of the most commonly adopted textbooks as e-books.

3. Safari Books Online. If your school has a membership with this group, you may already have access to online books that have been assigned. Check with your professor or librarian to see if your college has a membership. 

Online books are a great way to save money. But, don't forget tried and true methods like buying used textbooks if you can't find your book online.  Also, selling textbooks direct to other students will earn you more than those bookstore buy-backs. 

Right now, finding online versions of your textbooks is a little tricky, but it is up to you and your friends to make it a more common and available resource. Check out this article for more information.

The moral of the story? Before you take the dreaded walk to the bookstore, try to find your textbook online--you just might save a bunch of money!  

College costs rising (duh).

If you're in college, it's no surprise that prices are going up. If you're getting ready to go to college, you need to know that costs are rising. The time to act is now! Get a start on those scholarship applications, get a summer job, start saving money. Trust me, you will be glad you did when you have to listen to your friends complain about still having to pay off their student loans when they're 40. 

Check out this news report for more information.