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IS FOR
Debt Management

Paying for college takes commitment, and loan payments require planning and budgeting. As a team, we will brainstorm how to do this so that your child will not be overwhelmed after graduation. I want your child to have a better idea of what it takes to pay for rent, phone, insurance, buy groceries, make loan payments, and still be able to afford the fun things like clothing, restaurants, and entertainment. In other words, debt management is knowing how loans will impact finances, goals and your child’s lifestyle in the future. I want students to understand what repayment options (see R) will look like, which loans have interest that accrues while in college, how to pay down that interest, calculate your total loan using 10, 20 or 25 year repayment plans, and also talk to you about ways your child can cut down on expenses during college to reduce the total cost.

e

IS FOR EFC --
Expected Family
Contribution

The Expected Family Contribution, or EFC, is what you can expect to pay out of pocket for your child’s education. IFAP, a governmental website for federal student aid states, “The Expected Family Contribution (EFC) is a number that determines students’ eligibility for federal student aid. The EFC formulas use the financial information students provide on their Free Application for Federal Student Aid (FAFSA) to calculate the EFC. Financial aid administrators (FAAs) subtract the EFC from students’ cost of attendance (COA) to determine their need for the following federal student financial assistance offered by the U.S. Department of Education (the Department): Federal Pell Grants, Subsidized Stafford Loans through the William D. Ford Federal Direct Loan Program, Federal Supplemental Educational Opportunity Grants (FSEOG), Federal Perkins Loans, and Federal Work-Study (FWS).” Once a student fills out the FAFSA, he or she will receive their SAR (Student Aid Report) that details a family’s EFC.

• Tip From College By Design: The FAFSA “4 Caster” website provides a way to estimate your EFC using the federal methodology formula: see https://studentaid.ed.gov/sa/fafsa/estimate
• The College Board website also provides a way to estimate your EFC three different ways: by Federal Methodology (FM), Institutional Methodology (IM), or a combination of both http://apps.collegeboard.org/fincalc/efc_welcome.jsp?noload=Y
• For a step explanation of the EFC formula see http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf

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IS FOR
FAFSA

The FAFSA (Free Application for Federal Student aid) is your means to applying for federal student aid programs offered by the U.S. Department of Education (ED). Although the FAFSA asks a lot of questions, I am here to help you understand how the FAFSA works, and show you how the FAFSA “Gives you access to the largest source of financial aid to help pay for college or career school” (Studentaid.ed.gov/types). Believe it or not, federal student aid covers more than just tuition and fees, it can be used for room and board, books and supplies, transportation, and other expenses. Studentaid.ed.gov notes that over $150 billion a year in federal student aid is awarded in grants, work-study funds, and low-interest loans. Although many of you may think you will not qualify, before making that assumption, please go to the FAFSA “4 Caster” to help determine if you should fill out the FAFSA. If you can determine with 100 percent certainty that your child will not be eligible for financial need, you do not need to submit either a FAFSA or CSS Profile, and your student can check “No” on the question about whether or not he or she will be applying for financial aid on the Common Application. Please know that some schools require the FAFSA to be eligible for school aid, state aid, and even merit aid. 

Before starting, I suggest that you watch this 3 minute YouTube explanation and this YouTube video on the FAFSA “4 Caster”

• How to Get Your PIN: Your PIN will serve as an identifier and as your electronic signature. You can apply for a PIN from FAFSA’s website, or at the Federal Student Aid PIN website at www.pin.ed.gov. After completing the PIN application, you must choose how you want your PIN delivered to you.
• Here’s what you will need to fill it out the FAFSA: Your latest tax return, W-2 form, investment statements, assets, bonds, drivers license, child support, unemployment benefits, and then many of the same items for your child including his or her tax return, investments, assets, SS# and so forth.
• Important Note: When filling out the FAFSA, you do not need to submit right away, so you can do a trial run. Although you can print and fill out a paper application, College By Design suggests that you utilize the website as it does a great job helping you along the way. If you miss any pertinent information, a box will appear to assist you/make you aware of the mistake. In addition, each page asks you to double-check your answers, and at the end, you can choose to “clear all” or save the information to come back later.
• Please remember that if you do qualify for need-based aid, you will need to fill out the FAFSA each year, and if your finances or situation changes, the amount may fluctuate.
• It is crucial that you fill out the FAFSA accurately and do not falsifying information or try to hide any assets, as it could result in a $20,000 fine.

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IS FOR
Grants

Grant Aid differs from Merit Aid, as grant money tends to come from the federal government and is awarded due to demonstrated financial need, as opposed to academic merit. There are several types of grants, but the most common are the Pell Grant, the FSEOG, and the TEACH Grant.

• Pell Grant: The Federal Pell Grant provides need-based money to low-income students pursuing a college degree. This money does not need to be repaid, and the amount a student will receive depends on the families EFC, the COA, and whether the student is enrolled full time. Pell Grants do have a maximum amount, roughly $5,700, though they can amount to more if a student’s parent died serving our country after 9/11.
• FSEOG: The Federal Supplemental Educational Opportunity Grant (FSEOG) is awarded to students that demonstrate exceptional financial need, and like the Pell Grant, does not need to be repaid. The funding comes straight from the academic institution’s financial aid office, and varies from $100 - $4,000. Pell Grant recipients do take priority, but timing is important as funds could run out.  Each year colleges receive a set amount of funding, and once it is gone, the FA office will not have any more funds to distribute. So get your FAFSA and applications in early.
• Teacher Education Assistance for College and Higher Education (TEACH) Grant: TEACH Grants require students to make both an academic and professional commitment to receive funding. If your child is certain he/she wants to go into education, is willing to work in a high-need field, and plans to teach in a district that serves low-income families, the TEACH Grant can provide up to $4,000 a year to help with the cost of attendance. Not only will your child need to sign an agreement, he/she will need to work for four years (and within eight years of graduating) to meet the grant’s requirements. The Federal Student Aid website states, “By signing the Agreement to Serve, you agree to these terms and conditions and acknowledge that if you do not fulfill the service obligation described in the agreement, the TEACH Grant funds you received will be converted to a loan that you must repay.” Thus, if your child changes his/her mind, he/she will need to pay back the grant with interest. Students must also meet specific academic and GPA requirements to keep their TEACH Grant.

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IS FOR
Honesty

Apart from purchasing a home, college is the biggest investment you will ever make.  In today’s economic environment, it is essential that you be upfront with your children about what you can afford, what you are willing to spend, whether you are willing to take out a loan (or allow your child take out a loan), and discuss what repayment will look like for these loans. College By Design is here to help you facilitate these delicate conversations, and please know that we can find so many great match schools at all different price points. In regards to affordability and budget, I want you to ask yourself this question: Would you allow your teen to try on a $2,000 designer prom dress when her budget was $200? I think most of you will answer, “Of course not!” With that in mind, we want everyone to be on the same page early on in regards to budget; being honest about what your family can afford/ is willing to pay is essential to creating a trusting environment for your teen. It is my job to help make the application process more transparent, and I ask that you give that same transparency to your child in regards to budget.

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IS FOR
Institutional Method

The Institutional Method, or College Scholarship Service (CSS) Profile, differs from the FAFSA in how a school awards need-based aid. In general, the Institutional Methodology formula counts more types of assets from more family members, which means that families with additional assets could have a higher EFC and receive less need-based aid. Today, over 400 private colleges and universities use the CSS Profile to help them award nonfederal student aid funds. The CSS Profile asks more questions than the FAFSA, and may inquire about home equity, small businesses, and family farms. Please watch the explanatory video at: http://css.collegeboard.org

• You will need to set up a PROFILE (create your account), or if your child already has a Username/Password from AP or SAT tests, you can use the same one. Remember, even if you have two children filling out the CSS, you must have two different accounts. Unlike the FAFSA, the CSS must be completed the first time through; so make sure you have all pertinent data required. You will need your (and your child’s) current year tax return, your previous year’s tax return, W-2 records and all current year income, records of untaxed income and benefits for the current and previous tax years, current bank statements, records of savings, stocks, bonds, and trusts. When filling out the questions, if a question does not apply, put in a zero. Also, do not use punctuation marks and round all numbers to the nearest whole number/dollar. 
• Remember that the CSS Profile is not free, and requires both an application fee and a college submission fee for each college you send the Profile to. You can access the CSS at: http://student.collegeboard.org/css-financial-aid-profile 

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IS FOR
(Professional) Judgment

The FAFSA and CSS Profile provide a snapshot of your finances, but what happens when a your financial circumstances change over the course year? If you have a significant change that results in a large “Gap” in your financial aid, you can request a Professional Judgment by the college’s financial aid department. Professional Judgments do not guarantee more aid, but since the FAFSA and CSS Profile are rigid, new information may warrant a second look. Professional judgment allows a college’s financial aid officer to review this new information to evaluate how your situation impacts your ability to pay. If he/she determines that your situation warrants an increase in financial aid, Congress has delegated that the school has the authority to compensate for special circumstances on a case-by-case basis with adequate documentation, and make appropriate adjustments. Although the school cannot change the need analysis formula or make direct adjustments to your EFC, the financial aid officer can adjust the inputs to the formula, and then apply the standard formula to the new data elements yielding a “new” EFC.

• For special circumstances, such as loss of a job or reduced hours, large medical expenses, retirement, supporting an elderly parent, reduction in child support, or an unusually high AGI, it is best that you (the parent) write a concise letter to the financial aid office detailing your circumstances and provide all pertinent documentation. Most colleges want to work with you; if you do not contact them to explain your situation, they will not be aware of the changes or the difficulties you will face making payments. 

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IS FOR
Knowledge

Be in the “know,” as the more you know about the process, the better off you will be!  Sign up for the Financial Aid News and Blog, research your individual colleges, don’t be afraid to contact financial aid offices, learn about need-based aid, merit aid, scholarship searches, loans, and do a test run of the FAFSA. I am here to educate you on the nuances of applying to schools, and how to better make those schools fit your budget. Paying for college is a huge expense, and I want to ensure that you know your options.

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IS FOR
Loans

• Apart from institutional grants, scholarship and merit aid, loans provide a means to help pay for college. Here at College By Design, I want to help you understand the four main federal loans, what the interest rates look like (the government sets a fixed rate each year), what to expect for repayment options, and compare your potential loan amounts to what your starting salary might be. The Counselors and Mentors Handbook on Federal Student Aid notes that loan programs enable “Eligible students and parents to borrow from ED at a low interest rate, with a choice of repayment plans, and under other attractive terms.”
• I want my students to emerge from college with the knowledge and tools to make sure they do not have a lifetime of debt.

Please watch this 2 minute YouTube video on Responsible Borrowing

Types of Loans

• Direct Subsidized: Direct Subsidized Loans are the most appealing loan option, as interest does not accrue until after your child graduates. Your child’s college or university determines the amount you can borrow based on financial need ($3,500-$5,500 depending on the student’s grade level). The federal government pays the borrower’s accrued interest during their schooling, and also during the grace period after graduation, or if he/she places the loan in deferment). Therefore, these loans are “subsidized.”

• Direct Unsubsidized: Unsubsidized loans, on the other hand, are not need-based, and thus the borrower is responsible for accrued interest throughout the life of the loan. This vastly impacts the overall dollar amount of the loan; if you do not pay off the interest as it accrues throughout college, the resulting total amount owed will be significantly higher.

• Federal Perkins Loan: The Perkins Loan is a federally guaranteed student borrowing option administered jointly by the U.S. government and individual colleges and universities for up to $5,500 per year of undergraduate school. The low-interest, long-term loans target students who demonstrate exceptional financial need. Unlike a Direct Subsidized Loan, the Perkins Loan is made through the student's school's financial aid office. Therefore, the school is the lender, and the loan will be repaid to the school. Repayment on the loan begins nine months after the student graduates, leaves school, or drops below half-time status.

• Parent PLUS Loan: The Parent PLUS Loan offers you a means to bridge the gap between what you can afford, and the financial aid package your child receives. The PLUS loan is not based on financial need, and you can take up to the cost of attendance minus any other financial aid your child receives. However, it is important to remember that interest accrues on the PLUS Loan, and that it comes with a higher interest rate than your child’s subsidized/ unsubsidized loans. To be eligible, your child must be enrolled at least half-time.

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IS FOR
Merit Aid

In addition to providing Need-Based aid to families that qualify, some (but not all) colleges offer Merit Scholarships. Merit awards, like other grants and scholarships, do not need to be repaid. Colleges offer merit awards in several ways: some automatically award a merit scholarship based on the student’s GPA, standardized test scores, and other information found in the student’s general application to the college, and do not require an additional scholarship application. Colleges that offer merit awards this way often include the monetary amount of the merit scholarship in the student’s letter of acceptance.

• Some colleges offer merit scholarships, but require that the student submit a separate application by a specific date. Often, the student will need to write an additional essay and/or include more information about extracurricular activities or community service as part of the merit scholarship application process.
• Sometimes colleges offer merit scholarships for special talents – such as music, dance, or theater – but require that students attend an audition at the college (on a specific, pre-determined date) and commit to participating in college
• Important Note: Many colleges require that the student apply Early Action, or have a specific deadline for merit aid that differs from the regular admission’s deadline to be eligible for merit scholarships.
• I also want you to know that some schools practice “frontloading” of grants, meaning that in trying to woo your child to their institution, they may offer more merit aid for freshman year as they will for subsequent years. To help determine whether a school frontloads, the article 10 Rules For Decoding College Financial Aid Award Letters on Forbes.com notes that on College Navigator (a free tool provided by the National Center for Education Statistics), you can pull up the school you’re considering and see that school’s financial aid information. Within the financial aid category, there are two sections: typical financial aid for beginning undergraduate students and financial aid for all undergraduates. If the average grant in the “beginning” students is significantly higher than the average grant size for all undergraduates, it’s a sign that school frontloads its grants.” 
• Rohit Chopra, student loan ombudsman and assistant director of the Consumer Financial Protection Bureau notes that students “Should inquire as to what they need to do to keep that scholarship each year. They don’t want to be surprised and get a higher student loan amount.” He goes on to advise that, “if you ask about this, schools should be able to provide an answer about the likelihood of a scholarship declining or disappearing altogether.”
• To find out which colleges offer merit scholarships, see Cappex. You can also visit individual college websites and use the college’s search function for “merit scholarships” or “merit aid,” normally found on the college’s financial aid website. Most colleges are upfront about whether or not they extend merit aid to students, and what a student must do to qualify/apply.

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IS FOR
Need Based Aid

Need-Based college aid is awarded based on your family’s financial need. The Department of Education and the colleges and universities you’re applying to determine your need by taking the COA – Your EFC = Your NEED. Because all federal aid is need-based, you must submit the FAFSA to be eligible for federal aid, as well as any need-based aid from states and institutions. Some need-based aid consists of educational grants that you will not need to repay, while some comes in the form of college loans that need to be repaid with interest.

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IS FOR
Other Tips, Websites, and CALCULATORs

• After your child receives his/her award letter, you can compare aid awards at: https://bigfuture.collegeboard.org/pay-for-college/financial-aid-awards/compare-aid-calculator#
• College Cost Shopping Sheet: http://collegecost.ed.gov/shopping_sheet.pdf
• Funding Your Education: The Guide To Federal Student Aid http://www.edpubs.gov/document/en1168p.pdf?ck=696
• Do You Need Money For College: http://www.edpubs.gov/document/en1158p.pdf?ck=996
• A Primer on Economics for Financial Aid Professionals: http://www.collegeboard.com/prod_downloads/highered/fa/Economics-Primer-2004.pdf

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IS FOR
Public Service Loan Forgiveness Program

The Federal Student Aid Public Service Loan Forgiveness Program or PSLF states, “The PSLF Program is intended to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, you may qualify for forgiveness of the remaining balance due on your William D. Ford Federal Direct Loan Program (Direct Loan Program) loans after you have made 120 qualifying payments on those loans while employed full-time by certain public service employers.” Any non-defaulted loan made under the Direct Loan Program is eligible for loan forgiveness, including Direct Subsidized and Unsubsidized loans, Parent PLUS loans, and Consolidated loans. Though the program does include those working in public education, public library services, school library or other school-based service, emergency management, military service, public safety, law enforcement, public interest law services, early childhood education (including licensed or regulated health care, Head Start, and state-funded pre-kindergarten), public service for individuals with disabilities and the elderly, public health (including nurses, nurse practitioners, nurses in a clinical setting, and full-time professionals engaged in health care practitioner occupations and health care support occupations), loan forgiveness only covers a small portion of what your child owes on his/her loan, and should not be looked upon as an obligatory “out.”  For more information go to: https://studentaid.ed.gov/sites/default/files/public-service-loan-forgiveness.pdf

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IS FOR
Questions to Ask

Questions; you’ll have dozens as you maneuver this process. College By Design is here to guide you, and I will also help you identify what questions to ask. The sticker price of a college may not showcase the true “Cost of Attendance,” and thus you need to know what to look for so you don’t have any surprises later on.  

• For example, do courses with labs cost more money? Will an art class cost more if a student wants studio space? Does the school require your child to purchase a laptop? Will certain classes require specific software that students must purchase? Are there different meal-plan options? Does the school require your child to have a specific health care plan? Are things like counseling or physical therapy included in that health plan? Will living in a certain dorm cost more than another dorm? When a college lists travel costs, does that estimation include on-campus transportation, transport within the city or town, or does it solely refer to travel home on breaks? Are there activity fees each year? Does Freshman Orientation cost extra? Does a school offer merit aid? If your child receives outside scholarships, will that impact his/her financial aid package? Many of these questions require digging; some can be found on college websites, others will require speaking to admission reps. I will help you identify what questions to ask, and help you or your child pose these important questions so you have a better grasp on what to expect.

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IS FOR
Repayment Options

Taking out a loan is a serious step, and before your child (or you) takes on debt, it is important to educate him/her about the expectations of repayment and how it will impact finances after college. It can be hard for freshman-seniors to picture what their finances might look like six-months after they graduate. When applicable, we will start a dialogue on what it means to be out on your own, pay monthly bills, and make loan payments. Taking your child’s future careers into consideration, we will help you estimate first year earnings, and offer advice on what is reasonable to borrow. To achieve an accurate figure, an income and expenditure test will establish what monies are coming in and what is being paid out; it is important to remember that loan payments should not exceed 8-10% of your child’s first year earnings.

• The Department of Education’s Federal Student Aid website details repayment plans and options at https://studentaid.ed.gov/sa/repay-loans/understand/plans
• Repayment generally starts 6-9 months after graduation; that time is known as the grace period. Your child will have several options within two categories of repayment: Traditional Repayment Plans, and Income-Driven Repayment Plans.

  • Traditional Repayment Plans: 10 Year Standard Repayment Plan where payments are a fixed amount, a Graduated Payment Plan where payments start out low and increase every two years, Extended Repayment Plan where payments can be fixed or increase gradually to ensure it is paid off in 25 years

  • Income-Driven Repayment Plans: Income-Based Repayment (IBR) which also gives you up to 25 years to pay off debt, and the payments cannot exceed 15% of your discretionary income, Pay As You Earn Repayment Plan gives you up to 20 years, and payments will be less than 10% of your discretionary funds (but only some are eligible), Income-Contingent Repayment Plan (ICR) gives you up to 25 years, payments will be the lesser of 20% of discretionary income or the amount you would pay on a 12-year Standard Option

• Tip from College By Design: Utilize the Federal Student Aid’s Repayment Estimator! This calculator will show you what your loan payments will look like, both for student loans and Parent PLUS loans. The total can vary widely depending on repayment options, so it is important to use this calculator to estimate costs.  https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
• Please watch this 2 minute YouTube Video on Repayment: What to Expect https://www.youtube.com/watch?v=oJHySMdXjxE

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IS FOR
Scholarships

Each summer College By Design will offer a scholarship workshop to kick-start your child’s interest in searching for scholarships. My motto is that your child should aim for small scholarships – as $200 here, and $500 there can really add up! At the Scholarship Workshop “Navigating Scholarships and Financial Aid,” I walk students through an overview of the scholarship search process. With millions of scholarships out there, this process can be overwhelming and time consuming. You may have a lot of questions: What are scholarships and where do we find them? How do scholarships differ from Merit Aid? Will scholarships impact an overall aid package? Will your child need to fill out a separate application? If your child is not a straight A student, can he/she still apply for scholarships? I will help you answer these questions.

• Together we will search for independent scholarships, local and state scholarships, and then larger national scholarships (which are harder to obtain). In our search we will utilize “magic words” to help yield more matches, and also ask that you inquire about scholarships at your place of business, local rotary clubs, and other local organizations that you or your child may be involved in. I want you to know that searching for scholarships is a year-round activity. So, don’t wait to start—search early and often as the more you/your child looks, the more scholarships your child might receive…
• Tip from College By Design: Never apply to a scholarship that requires money or too much personal info. Unfortunately, scams do exist, so please be on the look out for things that seem too good to be true.
• Some good places to start: fast.web, finaid.org, scholarships.com, cappex.com, Sallie Mae, College Grants

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IS FOR
Time Management

Time management is essential both in the financial aid process, and in applying to schools.  With Early Action and Early Decision deadlines that sometimes include the deadline for merit aid/institutional scholarships, it is essential that you help your child stay organized and keep track of deadlines. If you are on top of the process, fill out the FAFSA/CSS Profile early, and remind your child of pertinent deadlines, you will help alleviate some of the stress. 

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IS FOR
Unmet Need (otherwise known as the "gap")

Many colleges do not meet the full demonstrated financial need of all students, and this leaves a “Gap” between the “Cost of Attendance,” your child’s financial aid award, and your EFC. If you take the COA, subtract your EFC and aid package and there is still money left to pay, then you will need to strategize on how to fill that “Gap.” With limited student aid budgets, and more and more colleges offering student loans as part of the package, “Gaps” happen more and more often. In addition: watch out for award letters that try to mask gapping by including non-need-based aid as part of the financial aid package. Parent PLUS loans should never be looked at as part of an aid package, though many schools place that as an “option” on award letters.

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IS FOR
Verification Process

Roughly 30% of all FAFSA filers are selected for verification, which requires schools to collect documentation to check the accuracy of the FAFSA information. If selected, the verification process must be completed before financial aid can be awarded, and can take up to 45 days. Verification can happen at random, because your FAFSA was incomplete, had estimated information, or because it had inconsistencies. Finaid.org notes that, “Verification is intended to improve the accuracy of the information submitted on the FAFSA. It is not intended to function like a forensic audit. But the college’s financial aid office may not process requests for professional judgment or disburse federal student aid until the verification process is complete.” Important note, you must contact your school’s Financial Aid office, not ED. Your financial aid administrator must resolve any discrepancies found during verification, and verification can result in an increase or decrease of your financial aid package.

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IS FOR
Work-Study

Many financial aid packages include something called “Work-Study.” Federal Work-Study provides part-time jobs for those that demonstrate financial need; if your child qualifies, it will allow him/her to earn money to help pay for educational expenses. Schools that participate administer the program, and thus Work-Study tends to be on a first-come-first-serve basis. Here is how it works: The Federal Student Aid website explains that for schools that participate, ED provides funding for these campus-based programs based on the amount the school has applied to receive, the amount available nationally, and the amount the school utilized in the previous year. Each college or university then awards these funds to students according to federal guidelines, and because funds are limited, the earlier an eligible student applies, the more likely he/she is to receive available campus-based aid. 

• Finding a Work-Study position requires persistence by the student, and may entail that your child perform a job that he/she does not enjoy doing (for instance: washing trays at the dinning hall or staffing the graveyard shift at the library). Though Work-Study can be a good supplement, College By Design wants you to weigh the pros and cons of a Work-Study job as it may eat into time where your child could be studying, doing research, participating in campus activities, or being with friends. Work-Study funds should not be viewed as concrete money; please know that your child may not find a suitable Work-Study position, and remember that he/she will earn the money over time, and thus it should be used for incidentals/second semester books/cost of living, as opposed to actual tuition payments.

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IS FOR
xerox

Tip from College By Design: Keep copies of all pertinent financial aid documents in a folder. Make sure to include your child’s FAFSA Pin ID/Password and all FAFSA documents, your College Board Id/Password and all CSS Profile documents, Xerox’s of your tax returns, W-2’s, investment/banking statements, bonds, trusts and assets, your child’s SAR report, and any financial aid award letters you receive.

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IS FOR
Yield

Though expensive, college is a sound investment. In fact, a 2012 study conducted by the Brookings Institution through its Hamilton Project initiative found that despite the rising costs associated with a four-year college degree, the inflation-adjusted increase to one's lifetime earnings is accelerating even faster (currently at a 3:2 earnings-to-costs ratio). To compare, this yield (or internal rate of return) of roughly 15% per year is almost double the historical expected annual return on equities. The study utilized the mean for both costs and for earnings, so with debate over whether a liberal arts education will yield as high an income as someone who majors in a specialized degree (such as engineering), the study clearly shows that a college degree is one of the best investments anyone can make.  

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IS FOR
Zoology to attorney --
A look at professions and estimated earnings

Before taking out any loans, a good rule of thumb is to make the connection between your child’s anticipated salary and the maximum amount he/she should borrow. To do this, I will utilize results from the Myers Briggs test, discuss potential interests, and brainstorm possible professions/careers. In the end, you do not want your child’s loan amounts to exceed 8-10% of their prospective earnings. The Occupational Handbook http://www.bls.gov/ooh/ showcases professions/fields and details potential earnings. Other sites like Know Your Salary: www.careerinfonet.org or www.salary.com, College Board Explore Careers https://bigfuture.collegeboard.org/explore-careers/careers and O*Net Online http://www.onetonline.org/ all provide insight, give your child an idea of what careers are out there, and will help you pinpoint earnings to better understand future finances and repayment of loans.