Recently in College Category

It’s not just for Dr. Evil; almost everyone would gladly have a million dollars—just ask the person next to you. According to a recent study at Georgetown University, though, it’s also about how much a college degree is worth over the course of your life, with bachelor’s degree holders making about 85% more than those who have only graduated high school. That’s almost double! What’s more, a college degree also made a huge difference for workers during this last recession as the one section of the workforce to gain jobs during the recession and the recovery.

From our YouTube series on education topics, Emma Gutierrez gives a great overview of Education and earning power in this video.

Of course, there are differences by what kind of post-high school degree you hold, and what major you choose. Even with these considerations, the overarching message is still largely that a college education does more than pay for itself.

See our Community discussion on Is student loan debt good debt?

What do you think your degree will be worth? What are your reasons for attending college?

Student LoanDown readers, I'd like to introduce you to guest blogger, Stephanie Rico. Stephanie is with our Environmental Affairs group working to help our company invest in environmental solutions for stronger communities. She's been focused on driving positive change, including supporting issues such as resource management, healthcare, education and the environment, for over 15 years.

In her post today, Stephanie tells us about how Wells Fargo is working with two great organizations to help make a positive environmental difference at some equally great colleges and universities! (—MB)

Thank you, Maurice! I am so proud to report, especially here on the Student LoanDown, that we've teamed up with Environmental Defense Fund (EDF) and the United Negro College Fund (UNCF) to help colleges and universities operate in a more sustainable and energy efficient way—and realize the benefits associated with doing so!

Specifically, we underwrote the cost of four specially trained fellows from EDF Climate Corps. The fellows will help places like UNCF Building Green Grantees, College of Menominee Nation, Los Angeles Community College District, Lane College, and Southern University and A&M College identify and assess cost-effective opportunities to save energy and reduce emissions.

Institutions were selected by representatives from EDF, UNCF and Wells Fargo based on capacity to support fellows, need and location.

Our positive experience with EDF Climate Corps and our desire to support a transition to a "greener" economy, per our renewed environmental commitment, have led to our support of this program. In 2010, EDF Climate Corps fellow Shinu Thomas helped identify savings of $2.8 million and more than 17,000 metric tons of carbon!¹

Moreover, EDF Climate Corps has a strong track record of delivering results. Since 2008, EDF Climate Corps fellows have identified energy-saving opportunities that could cut enough energy usage to power nearly 100,000 homes a year, avoid the annual carbon emissions of 200,000 cars, and save more than $1 billion in net operating costs over the project's lifetime.² As more fellows are supported and deployed into the field, these numbers are sure to increase.

The effort's currently underway, and details will be made available via this blog later this summer and fall. So please be sure to check back for more information. In the meantime, please let us know what you think by providing your feedback in comments!

¹ Source: Based on forecasted energy savings and factors from the EPA Emissions & Generation Resource Integrated Database (eGRID).
² Source:Environmental Defense Fund

Should I stay or should I go?

Many students wonder if attending new student orientation is worthwhile. The summer before your first semester in college can be a busy and nerve-wracking time. You're trying to prepare yourself for the great unknown while dealing with the thoughts of being away from home for the first time in your life.

Well, summer orientation is set up to help with your transition, so here are some tips on why you should go:

1. Meet new people. Heading off to college can be a scary time, and everything is less frightening when you know someone who can identify with the experience. This is your first chance to meet a person who may end up being the best man or maid-of-honor in your wedding someday. Attend as many of the social events as possible and take a risk by initiating the conversation with someone you don't know.
2. Get familiar with campus. Take some time figuring out where certain important buildings are located before the rest of the student body is on campus. If you have a class schedule, walk to the buildings and if possible to the actual classroom. This will give you an idea of how much time to allow for the commute and also it will allow you to figure out the tricky buildings. It will be much less stressful to do this before the first day of class and preferably with a friend or two so you can help each other out.
3. Experience dorm life. Most of the time orientations are held in dorms. This is a great time to experience what it will be like to live with a few hundred people. Understand the space constraints and make note of any items that would make your life more comfortable. Pay attention to where places like the laundry facility, parking lot, bike racks, etc. are in relation to your room. Also, pay attention to mobile phone service and your ability to send and receive messages.
4. Double check. Visit enrollment services to make sure all is ok with your financial aid, housing, admissions, insurance, etc. In many cases, you can complete anything that is outstanding while you are there.
5. Make note of resources. During orientation you will be exposed to many departments and resources that are available to help you succeed. Make a note of these and take some time to explore the ones that interest you. If possible, see about making a contact at the office so follow up will be easier when you need it.
6. Look for a bank. Hopefully your current bank will have a location near campus, but if not—or if you need to open your first account—make note of where they are located in relation to campus. If you're in a situation where you need to make a visit complete a transaction or discuss a problem, having one that is convenient will help.
7. Ask questions. Make a list of questions that you and your parents have and get some answers. Today's campuses are ever changing, so don't think any question is too basic. Something that seems as easy as "How do I see my grades?" or "How do I drop a class?" can turn out to be a daunting task. Also, the process that was described to you in a publication may not be the process today. It's better to ask and know the right answer than to assume all is correct.

New student orientation is designed to make your transition as painless as possible. Your school wants to see you succeed as much as you want to see yourself succeed. My advice is to attend orientation and make the most of it! The few days you spend on campus can make the transition away from home much easier.

Choosing a major can seem like the most important decision in the world when you're starting college. And while it is important, it doesn't necessarily dictate the work you'll do for the rest of your life. Some people stay in their college field of study, some don't.

I was a journalism and mass communications major in college, and today I'm a copywriter. I've always stayed within my field working at a newspaper, public relations firm, and ad agencies, holding various positions where writing was always a key component.

Take a look at how some of our career paths have played out so far:

Yasmine
My college major was International Relations, a multidisciplinary track that incorporated classes in political science, history, economics, and a foreign language (mine were French and Mandarin Chinese). The major required a study abroad experience for at least 1 Quarter, which was the best experience I had at college! I also completed a minor in Film & Media Studies, just to keep myself extra busy.

Today I apply a TON of my IR knowledge to my work in the anti-money laundering and counter-terrorist financing group. For example, we assign and assess country risk designations based on internal conflict within certain countries.

Also, my major is greatly beneficial to my everyday life, where I can discuss with my fellow colleagues the latest in global political, economic, and developmental shifts, as well as simply reading a news article and understanding the context of major global political topics. I'd recommend the IR major to anyone unsure of what they want out of college, and many people from my graduating class have pursued law school, state department work, and nonprofit careers with the major.

Cheryl
I majored in Mass Communications. Initially, I picked this major thinking I'd be a news broadcaster. But Senior year, I took an Advertising class that I loved! When I started looking for jobs, I focused on ad agencies and worked for 5 years in Advertising. Now, I am a Product Manager leading the marketing and product strategy for a credit card product at Wells Fargo. Definitely very different than being on the local news!

Veronica
I was a Psychology major, and the only reason I chose that major was because I had taken an AP Psych class in high school that I'd enjoyed and done well in. (Not exactly the most informed decision I've ever made in my life, but hey, who could blame me? I was 17 and attending a large university with 30,000 undergrads!) And while I enjoyed the curriculum, Caroline is absolutely right in saying it didn't dictate my career—I ended up going into Public Relations right out of college, which led to a job in Marketing, which eventually led me to pursue my MBA.

Sometimes I wish I had majored in something more "practical," like Business or Economics, but had I done that, I likely would not have chosen to pursue an MBA, which ended up being one of the best decisions I've ever made—not only because I had a great time in grad school, but because it helped me get to where I am today: driving the online strategy for various lines of business on wellsfargo.com as a Product Manager in the Internet Services Group.

Trang
I graduated with a BS degree in Human Resources and General Management. Today, I am working as a Marketing Consultant!

Dinna
My major was Political Economy, so a mix of Political Science and Economics. My career didn't stray too far from my major, but it's allowed me to try out different areas of interest and different sized businesses. I've worked in Operations, Marketing, and Product Management for small internet startups as well as Fortune 500 financial institutions.

In the end, your major is what you make of it! If you have an idea of what you want to try, then focus on making it happen.

Are you in the midst of your college search? While you want a school that can offer a great education and an atmosphere that suits you—cost should also be an important consideration.

Once you know what you're looking for in a school, try to keep an open mind until you weigh in the cost factor. College price tags may not be meaningful to you on the surface, so dig a little deeper.

Using tools from The College Board or the National Center for Education Statistics you can quickly learn lots of financial and other details about the schools of your choice. Use the "Compare" tool to line up your choices side-by-side.

For example, for a student who wants to major in business, here is a cost comparison of two similar-sized schools in the same geographic region:

College A: A public university in a suburban setting, offers in-state tuition of about
                      $11,000/year.
College B: A private university in a suburban setting, offers tuition of about $34,000/year.

At a glance you can see the initial costs are widely different, so when you apply, closely examine the financial aid award offered by each school. Carefully compare how much grant and scholarship aid each school has to offer, and how much you'll actually need to borrow to attend each.

Once you know how much you'll need to borrow, it's time for a reality check. When you're talking thousands of dollars, the numbers may not mean much to you—they probably all sound like a lot of money, so start to break it down.

Use a repayment calculator to estimate what your monthly payments will be after graduation. Remember that you may need to borrow a couple different types of loans and their interest rates may differ, so you can use an average interest rate for this estimation.

Looking at your monthly payment amount is a little easier to digest and put into real terms. Think about what you expect to be earning after graduation. This monthly payment amount should be no more than around 10-15% of your monthly income. Talk to your parents about how these payments might fit into your future budget.

While these figures are just estimates, they should play a very real part of your college decision-making process. If you have a "dream school" in mind, be sure that the price is right for you, and if not, that you're open to looking at other options.

There are a lot of jobs for college students out there. Some are fabulous, some aren't much fun at all. When you're considering where to work during college, have you ever considered starting your own business?

I recently saw The Social Network, which obviously represents the apex of successful college-age entrepreneurs. And while you wouldn't know it by reading about the 10 most successful college entrepreneurs, you actually don't have to be a computer genius to be one.

Check out this story of a high school student who just recognized a need in the marketplace and has created a successful international business by meeting the need.

With the state of today's economy, some college students would rather create their own jobs, rather than look for a job. Although according to this article, fewer students are taking that route since the recession began.

Have you ever considered starting your own business after college? Or are you running your own business while you're still in school? Tell us about it.

Each year my hometown newspaper does a special feature at graduation time. Now, keep in mind that I'm from a town of about 1,200 people.  The paper publishes all the high school graduates' photos and includes their activities and honors, as well as their future plans.

As I read about the class of 2009, I had some interesting reactions: First (since I remember the birth of many of the graduates), am I really that old?

After that shock wore off, I started reading their future plans. To be honest, I got a little judgmental. So-and-so is going to a technical college to learn a trade. "Good for them," I thought, "saving money and getting the education you need." So-and-so is going to study elementary education at an expensive private school. "Well, that's not a smart choice," I thought, "probably over-borrowing considering their chosen field."

Obviously, there is much to consider when you're choosing your college.  You want to make sure that you'll feel comfortable on campus, that it's the right size, the right distance from home, etc. However, you also should make sure you're in the right price range for the degree you want to get.

Of course, there are some reasons you may want to attend a more expensive school that make perfect sense — like if your chosen program is one of the best around or if you were awarded a better scholarship package.

But if you're going to be borrowing $30,000 annually for four years to end up with a degree and a job that pays a maximum of $30,000, you might want to think again — and consider a lower-cost option.

How did cost fit into your college choice?

When faced with the choice to go far away to school, or stick closer to home, which would you choose?

My stepdaughter was recently faced with this question when she got into two different grad schools. One school was two states away, the other, here in Iowa. 

It can be a tough call — on the one hand, moving away is an adventure, a chance to spread your wings and experience new things. On the other hand, sometimes staying closer to home is more practical from a financial standpoint , and there's something to be said for being near family and friends.

It can be an emotional decision, but try not to make it based solely on emotions. Sit down with a clear head and write a pro and con list for each school. Consider some of the following questions when making your lists.

For the far-away school:

• Have you ever visited the school/city/state? Did you like it?
• Does the school offer the academic and social atmosphere you're looking for?
• Do you know anyone nearby who could help in an emergency?
• How often will you want to return home, and what will the cost of transportation be?

For the nearby school:

• Have you had the opportunity to visit/live in new place before? Do you foresee having the chance to do so in the future?

• Does the school offer the academic and social atmosphere you're looking for?
• Would you be tempted to spend most of your time back in your hometown, or with your old friends? Or would you make an effort to branch out and meet new people? 

Ultimately my stepdaughter weighed her options carefully, and chose the school close to home. She was impressed with the program and the campus at the school she chose. And she's excited about the prospect of being near her friends and family. (So are we!)

Have you had to make a similar choice? What influenced your decision the most?

We all strive to be above average in some of the things we do. Scholars are hoping to surpass the average grades, athletes are striving for higher than average statistics, you get the picture.

Yet we tend to settle on being average in other arenas. And, yes, sometimes it's just fine to run with the pack as just your average Joe or Jane.  But there is one area that you should never find comfort in being average — your finances.

Why not? I can tell you from personal experience that finding comfort in being average can come back to bite you!

When I graduated from college, a little over $2,000 on a college credit card followed me into the real world. Now for someone who had a scholarship to cover college expenses that seems a bit high, right?

Well, here's the deal. Looking into some credit card facts  I kept hearing over and over that the average college student graduates with over $2,000 in credit card debt. So I thought, "What the heck?" If my counterparts are dealing with the same situation, I can charge a few things, too.

However, when we get stuck thinking that the debt is inevitable, we become less conscious of how much we are spending on things we don't really need. Part of that $2,000 on my credit card was for an iPod, and be sure that I whipped out the plastic for a pair of shoes or two (or three...).

So in the end, thinking average college debt was OK helped me develop some pretty bad spending habits. And unfortunately, those habits stuck with me until I started working for a bank and talking about financial education!

I challenge you to be better than average when it comes to your finances — both during college and after. Think twice about charging that sweatshirt at the campus bookstore. Resist ordering a pizza for dinner when you could use your pre-paid meal plan at the campus cafeteria.

Don't fall into the average trap with your student loans, either (the average for student loan debt is almost $20,000 ). Consider a part-time job to supplement your living expenses rather than taking out more student loans. Pay your interest during school to avoid capitalization.

Each tiny step will put you leaps and bounds in front of the students who settle for "average."

Here at the Student LoanDown, we like to think that every month is financial literacy month. But this April, it actually is National Financial Literacy Month!  Time to brush up on your financial fundamentals!

One of the personal finance bloggers we follow regularly, J.D. from Get Rich Slowly, asked his readers what they want to learn during Financial Literacy Month.  They've been more than forthcoming with interesting suggestions — some even want to know more about student loans.

You've been asking some interesting questions lately, too. In case you've missed them, I thought I'd highlight some of our recent exchanges:

• Do you have questions about student loan default or federal student loan rehabilitation? Check out the comment string on my post about student loan repayment.
• Are you thinking about cosigning a private student loan for a student and wondering how long you'll be on the hook?
• Want to know more about how Wells Fargo's private student loan interest rates are calculated? Barbara answers Tyler's questions here.
• If you're curious about student loan consolidation, our most popular post probably addresses the topic somewhere in the comments section!

What haven't we discussed that you'd like to know? You don't have to wait for Financial Literacy Month to roll around — you can ask us anytime.