Navigating College Costs and Value

The COVID-19 pandemic has drawn more attention to disparities in internet access across the country. 

Now, researchers from Rice University have analyzed the benefits of schools investing more money into providing internet access to their students. Based on a survey of Texas public schools, the team found that expanding internet access was associated with improved classroom performance. 

“We are proud that Texas public schools can serve as a live learning case for understanding education policy,” said Vikas Mittal, one of the study’s authors. “Investments in internet access provide clear and meaningful academic benefits. Yet, schools need to implement policies to address increased disciplinary issues such as cyberbullying.” 

Kids are doing better in school

For the study, the researchers looked at data from more than 9,000 public schools throughout Texas. The team was interested in looking at how each school’s spending on internet access affected their students’ learning and behavioral outcomes between 2000 and 2014. 

From an academic standpoint, increasing internet access among student populations was a positive investment. Greater internet access was associated with higher SAT scores, better in-class performance, and higher graduation rates. 

The researchers also found that having greater internet access benefited students beyond their schooling years. They found that making the investment to provide more students with internet access led to a greater economic return long-term. 

Social repercussions

Though the academic outcomes were beneficial, the researchers also found that when more students had internet access, it negatively impacted their social dynamics. The study showed that disciplinary problems, including cyberbullying, increased as more students gained access to the internet. 

Though these findings are important, this study was conducted prior to the COVID-19 pandemic, and the researchers don’t believe these results will translate to virtual learning scenarios. 

“K-12 education has transformed into virtual learning due to COVID-19,” Mittal said. “Our research conclusions apply to a setting where physical learning is supplemented by internet access."

On top of the coronavirus-driven stimulus checks that the Biden administration is trying to push through, congressional Democrats are also asking for a $7.6 billion boost to help schools and libraries pay for students' distance learning costs as part of the relief package.

Frank Pallone (D-NJ), the Chairman of the House Energy & Commerce, announced the proposed allocation as part of the committee's package of recommendations for the COVI-19 budget reconciliation legislation.

If granted, the add-on would establish a $7.6 billion “Emergency Connectivity Fund” that would allow schools and public libraries to pay for internet service, Wi-Fi hotspots, modems, and routers, as well as digital devices for students and teachers to access the internet from their homes. The Federal Communications Commission would be tasked with implementing the fund.

Some regulators believe Pallone might be jumping the gun a bit. House Energy and Commerce Republican Leader Cathy McMorris Rodgers (R-WA) sent a letter urging him to pause what she called a “partisan sprint” towards a reconciliation package. She asked him to sit tight for one week so that “earnest, bipartisan negotiations” for coronavirus relief could be discussed.

Pandemic learning challenges continue to mount

The pandemic has created an untenable distance learning situation for millions of students. According to recent data from the Department of Education and other sources, the number of students without home internet ranges between 9 and 12 million, or about 14-16 percent of children ages 3-18.

Depending on parental education and family income, a good number of students’ only internet access is via a smartphone. Those numbers run as high as 17 percent for students whose parents never finished high school and 13 percent for students whose family income is in the lowest quarter.

If you’re going to borrow tens of thousands of dollars to secure a college degree, getting the best return on investment (ROI) takes on added importance.

Each year, The Princeton Review ranks 200 U.S. colleges for ROI, looking not only at costs but also salaries earned by graduates. In short, The Review is a guide for college-shoppers looking for an affordable, academically outstanding college that has a record of guiding students to rewarding careers.

Only 200 schools make the cut. They’re selected on an analysis of things like covered academics, cost, financial aid, career services, graduation rates, student debt, and alumni support.

Making the list doesn’t mean a school is among the least expensive to attend. It only means that, in the opinion of the editors, it’s worth the money.

"Only 7 percent of the nation's four-year colleges made it into this book," said Robert Franek, its lead author and The Princeton Review's editor-in-chief. "We salute them for their stellar academics and generous aid awards to students based on need and/or merit. They also provide their undergrads with career services from day one plus strong networks of alumni connections."

Several different lists

The book is not a single list but a number of them, with the editors ranking schools on different criteria. There is an overall main ranking list and it places the California Institute of Technology in the top spot. Stanford was second, followed by Princeton and MIT.

Internships have been proven to be an effective pathway to securing a good job after graduation, and The Princeton Review ranks colleges on their ability to help students become interns. Bentley University is number one, followed by Franklin W. Olin College, Wabash College, and the University of Richmond.

Just as important is assistance in getting jobs for graduates. Harvey Mudd College, in Claremont, Calif., ranks first, followed by the California Institute of Technology, Stanford, and MIT.

Best financial aid

If you are looking for a school with a generous financial aid package, there’s a list for that as well. Bowdoin College of Brunswick, Maine is at the top of the list for financial aid. It’s followed by Vassar, Princeton, and Yale.

Other categories include the best alumni network, where Pennsylvania State University ranks first; and best schools for making an impact -- a list led by Wesleyan University.

Of the 200 schools in the book, 137 are private and 63 are public institutions. The average cost of attending for in-state schools receiving need-based aid is $12,972 a year. The average admission rate is 54 percent, with 13 schools admitting over 70 percent who apply.

Along with tuition, the cost of textbooks has been a significant driver of skyrocketing higher education costs.

But in an unexpected turn of events, the average price of textbooks decreased by more than $10 from January 2017 to January 2018, according to CampusBooks.com, an online book price comparison site.

The cost of textbooks has risen four times faster than the rate of inflation in the last decade. According to a recent report from CBS News, the main reason for the skyrocketing cost is the decline in used book sales.

It's not that savvy students don't know they can save money by picking up a used textbook. Kaitlyn Vitez, a higher education advocate for U.S. Public Interest Research Group, told CBS News that students are increasingly required to obtain electronic versions of texts that expire at the end of the semester.

"Students might have been able to resell the textbook in the past, but because the access code expires, it renders the textbook worthless," she told the network.

Most students still buy physical books

CampusBooks is a site where students who are allowed to use physical textbooks can compare prices for new and used books. The company says used book sales represent an average of 45 percent of all sales from 2016 through 2018, compared to 30 percent for new books.

Renting textbooks is a growing option, with nearly 20 percent of books falling into that category. While electronic textbooks are the fastest-growing segment, it still makes up a very small percentage of the overall total. The slight drop in the average cost of books could be a hopeful sign.

"The sign of college textbook decreasing runs counter to the 20-year narrative of staggering price increases, which will be beneficial to those strapped with large student loans," said Alex Neal, CEO of CampusBooks. "Students may be completely digital these days -- growing up on tablets and smartphones -- but when it comes to the college classroom, hardback books still represent the best value and learning tool."

Renting vs. book buy-back programs

Neal said students might like the cashflow convenience of leasing textbooks, but they can actually put money back in their pockets by taking advantage of textbook buy-back programs.

"Rentals might be the cheapest but they don't help pay off student loans," he said.

According to the College Board, the average textbook costs for a year at a four-year public college is $1,250, making up 5 percent of a student's total college expenses.

There’s no discounting the importance of teachers when it comes to young students’ academic success, but new research finds that many elementary teachers are stressed to the point of being ineffective.

A new study from the University of Missouri found that 93 percent of teachers are affected by high levels of job-related stress. They say that this extremely high percentage may be leading to poorer grades and a higher prevalence of behavior problems.

“It’s no secret that teaching is a stressful profession. However, when stress interferes with personal and emotional well-being at such a severe level, the relationships teachers have with students are likely to suffer, much like any relationship would in a high stress environment,” said professor Keith Herman from the MU College of Education.

High stress and low coping ability

The researchers came to their conclusions after analyzing teacher profiles and measuring levels of stress, coping ability, and self-reported levels of “burnout.” Herman says that the results indicated that a miniscule number of teachers showed both low levels of stress and high coping ability.

"It's troubling that only 7 percent of teachers experience low stress and feel they are getting the support they need to adequately cope with the stressors of their job," he said.

"Even more concerning is that these patterns of teacher stress are related to students' success in school, both academically and behaviorally. For example, classrooms with highly stressed teachers have more instances of disruptive behaviors and lower levels of prosocial behaviors."

More support needed for teachers

While there may be no surefire solutions to this problem, the researchers say that it’s important that teachers have access to support to minimize negative outcomes.

"We as a society need to consider methods that create nurturing school environments not just for students, but for the adults who work there," Herman said.

"This could mean finding ways for administrators, peers and parents to have positive interactions with teachers, giving teachers the time and training to perform their jobs, and creating social networks of support so that teachers do not feel isolated."

The full study has been published in the Journal of Positive Behavior Interventions.

High school students planning to attend college now have access to a free workbook to help them prepare.

Educational Credit Management Corporation (ECMC) has published the 2017-2018 Opportunities book, and online resource that walks students and their parents through the process of choosing a college, applying and obtaining financial aid.

Paula Craw, vice president of Student Success and Outreach for ECMC says the process starts with picking the right school. She says the choice isn't just about the cost of tuition.

“I think the fit for the student is really key," Craw told ConsumerAffairs. "Considerations include the size of the campus, the size of the classrooms, even the neighborhood. Its distance from home can also be a big consideration.”

Importance of financial aid

Financial aid is critical to today’s high school students, as college costs have risen dramatically in recent years. USA Today found college tuition has increased at roughly double the rate of inflation over the last decade.

Given the reality that many students may never attain a college education without help, Craw says the workbook spends a lot of time guiding families through various scholarship options.

“We believe the scholarship piece is critical because we always want students to find free money,” she said.

Once accepted at a school, students should fill out the federal student aid form, known in education jargon as the FAFSA form. This form contains financial information about students and their families to determine eligibility for financial aid.

The workbook outlines the required information and directs applicants to this Department of Education worksheet to help organize their information.

In addition to possible government aid, the FAFSA opens the door to potential scholarships and grants provided by individual colleges and universities. Schools begin accepting these forms each October and Craw says students should file them quickly.

File early

“We recommend that students apply just as early as possible because many of these aid packages from individual colleges are awarded on a first-come, first-served basis,” she said.

In addition to the workbook, ECMC also provides a free tool called College Abacus, which helps users quickly determine how much aid they could receive from several different schools.

Craw stresses that students should also have a conversation with someone in the financial aid office of their chosen school because a discussion of an individual student's needs, interests, and background may lead to other sources of student aid.

A report last month revealed just how important it is to investigate every source of financial aid. An analysis by personal finance site NerdWallet found $2.3 billion in federal education grant money went unclaimed last year.

Application prep

In addition to the financial component, the workbook also has sections designed to prepare students for the application process. Craw says it contains fairly general information on exam prep, with links to the individual test sites.

"We also provide a checklist for a student's last two years of high school, detailing when these tests should be taken," Craw said. "We don't go into a lot of detail because we want the students to work closely with their high school counselors to get ready for these tests.”

The workbook even includes recommendations on avoiding scholarship scams. Craw says it costs nothing to apply for a scholarship. If an organization tells you it needs a check before you can apply, Craw says that's a good reason "to run the other way."

In recent years, it has become a given. If you plan to go to college, you'll be taking out student loans. Otherwise, you can't afford it.

Of course, that wasn't always the case. Until very recently going to college was fairly affordable. It might put a crimp in the household budget but most middle-class families could afford to send their children to college, especially a state-supported college or university.

But millions of students who took out loans to attend college in the last decade are now saddled with significant debt, preventing them from buying a home or making other purchases that young people often do when starting a career and family.

Now, students planning to attend college are looking for ways to do it without piling on the debt. But is that even possible?

You need a certain income

Personal finance site GoBankingRates.com crunched the numbers in an effort to answer that question. The editors determined that it is possible, but that it requires a certain income -- and that income varies by state, based on the cost of tuition at state universities and the cost of living.

In its state-by-state breakdown, GoBankingRates.com found Indiana requires the lowest annual income in the nation in order to send a child to a four year college without taking out a loan. The annual required income is $62,091. The average college tuition and fees in Indiana amounts to $9,200 a year.

Arkansas, Ohio, Missouri, and Kentucky are also in that range, with required annual incomes ranging from $62,596 to $64,111.

At the other end of the scale are Hawaii and California. Families in Hawaii would need an annual income of $124,454 to send a kid to college debt-free. In California, the required income is $106,771.

Tuition reimbursement

Of course, there is another way to graduate from college debt free. Just go to work for the right company while you are attending school.

Dozens of firms offer their employees -- even part-time employees -- tuition reimbursement as a perk. There are often conditions placed on this benefit, however. The field of study might have to fall within a set of guidelines. In some cases, you might have to commit to remain with the firm for a period of time after graduation.

You might also have to attend a particular school, and take courses online. Starbucks reimburses employees who attend Arizona State University online. Anthem has linked up with Southern New Hampshire University's online curriculum.

You can find a list of other companies that provide at least partial tuition reimbursement here.

With the cost of college tuition rising much faster than the rate of inflation, and college loans loading students down with crushing debt, many students are looking for alternatives.

Online degree programs may be one answer. No, you don't get the college experience of campus life, but you don't get all the bills either.

Online programs might only be a little cheaper than brick and mortar schools, but you can attend while living at home. You can also complete them on your schedule, so students can hold down a job while attending school.

Rating the schools

Some online programs, of course, are better than others -- just like there can be variations in the quality of traditional colleges. To help prospective students find the best value, OnlineCollegePlan.com has rated what it says are the top online schools in the Northeast, near New York City.

Factors included freshmen satisfaction, graduation rates, and affordability. Not surprisingly, some of the best of these online schools are also some of the best traditional colleges, since both public and private colleges have greatly enhanced their distance learning programs in recent years.

In some cases, the tuition might be the same as if you were attending classes on campus, but as we have noted, attending online often keeps costs down in other ways.

Columbia University

Number one on the list is Columbia University, located in New York City. According to U.S. News, the tuition for the online engineering degree program is $1,858 per credit hour, whether you are a New York resident or not.

Second on the list is the University of Pennsylvania's Online Learning Initiative, whose tuition also reflects its Ivy League status. Courses range from Introduction to American Law to Accounting Analytics.

The third rated online program is the College of New Jersey. It's a state-supported institution that has lower tuition costs for New Jersey residents.

And just as tuition costs are similar for online schools as their campus counterparts, selectivity is also a factor. Unlike for-profit online institutions, online programs at prestigious schools are often just as selective as if you were enrolling on campus.

The list

Here's the complete top 20 rankings:

1. Columbia University
2. University of Pennsylvania
3. College of New Jersey
4. Lehigh University
5. Rutgers University
6. The Jewish Theological Seminary
7. New York University
8. Muhlenburg College
9. Stony Brook University
10. Yeshiva University
11. Fordham University
12. Temple University
13. State University of New York
14. Monroe College
15. Baruch College
16. Pamapo College of New Jersey
17. Marist College
18. Quinnipiac University
19. Manhattan College
20. University of the Sciences

Everyone knows college is incredibly expensive, but exactly how expensive it is often depends on a set of circumstances.

First, it often depends on what college you attend. Next, whether a student qualifies for aid can make a big difference in whether he or she graduates with a degree and college debt the size of a mortgage.

But perhaps the biggest affordability factor is the student's family's income.

The Institute for Higher Education Policy (IHEP) has released a report that finds, even with aid, college is often unaffordable for a wide range of low-income, working-class, and middle-class Americans.

Bleak college cost realities

“This analysis sheds light on the bleak college cost realities facing many of today’s students,” said IHEP President Michelle Asha Cooper. “High prices are keeping the promise of higher education out of reach for so many Americans. Policymakers must act now. Students—and our nation’s economic and social vitality—depend on it.”

To compile the report, IHEP researchers looked at what 10 typical college students from different economic backgrounds should be able to pay for a college education. The report used data from the College Abacus net price calculator to find and compare net prices at more than 2,000 colleges.

The net price calculator takes a student's household income into account, showing what each individual college or university is willing and able to provide in the way of aid, which reduces the sticker price of an institution to an individual net price.

The assumption going in is there will be more financial aid for lower income students than those from affluent families. In fact, that's pretty much the case. But is it enough to tip the scales of affordability in a meaningful way, researchers asked?

Conclusions

The report concluded that a student from an affluent household, with over $160,000 a year in income, could afford around 90% of the schools in the sample. Students from households with less than $69,000 annual income are in a much different category, the researchers found. Only 1% to 5% of colleges were affordable.

The report concludes that there are several things federal, state, and institutional policymakers can do to make college more affordable.

They include increasing money spent on Pell Grants; beefing up state investments in higher education; directing colleges to spend more of their resources on students; and making the application process more transparent to help prospective students make informed choices.

It may not be a coincidence that college started to get a lot more expensive when schools began restricting who could attend, then spent millions of dollars on facilities to compete for the students they wanted.

Costs surged and so did tuition. Now that millions are paying off student loans the size of small mortgages, policymakers are looking for ways to make college more affordable.

In some states the legislature has enacted laws that guarantee a tuition level for students during his or her enrollment. The goal is to make college costs more predictable and affordable.

It may do that for some students, but researchers at the University of Illinois say these laws have unintended consequences that may make college less affordable in the long run.

Researchers Jennifer Delaney and Tyler Kearney have published a study examining guaranteed-tuition laws and their impact on mandatory student fees and out-of-state student enrollments. These are important alternative revenue streams for colleges that are not subject to the laws.

Cost-shifting

With guaranteed tuition laws in place in Illinois, Texas, and Oklahoma, costs got shifted around. From 2000 to 2012, public colleges and universities in the states that have these laws increased mandatory student fees by 40%. They also raised their out-of-state tuition by 28%.

When they did that, out-of-state student enrollment dropped by 23%, putting public colleges and universities even deeper in the hole. The effects were even more severe at universities specializing in doctoral programs and research.

"These findings suggest that guaranteed-tuition programs are not beneficial for either in-state or out-of-state students," said Delaney.

She notes that institutions barred from getting money from one source will just get it from another.

Finding alternatives

So how do you make a college degree more affordable. The simple answer may be to obtain it from an institution that specializes in online programs.

Previously offered mostly by expensive for-profit schools, a number of quality, non-profit colleges have built up their online degree programs, and some have reduced tuition costs to reflect the savings.

Southern New Hampshire University was a pioneer in this area, with a national advertising campaign promoting its online degree programs. Other non-profit schools quickly followed suit.

Today, there are a number of schools offering online degrees that typically cost less than pursuing a degree on campus. Earlier this year, we profiled five of them here.