11.27.08
Happy Thanksgiving!
To all my readers, it’s Thanksgiving today in the U.S., a day to be thankful for friends, family and all that we hold dear.
In honor of the day, I offer you my wishes for a bountiful harvest and the love of family and friends.
11.22.08
Florida state colleges among lowest tuition in nation – but face double-digit tuition increases
Wow, you lucky Floridians! You can attend a local state school for around $4,000 per year in tuition! Up here in Massachusetts, we pay a lot more.
Looks like you’ll be facing a double-digit tuition increase this year though. Governor Charlie Crist publicly supported the plan on Thursday, after university officials complained of $200 million in budget cuts over the past two years.
According to the New York Times:
“The proposal from Mr. Crist, who in the past has opposed raising tuition, would give individual universities the power to increase it up to 15 percent annually until Florida’s in-state tuition rate reached the national average, now about $6,500 a year.
Florida’s current tuition for residents is among the lowest in the nation, averaging less than $4,000 a year, according to a new report by the College Board.
Unlike many other states, Florida has a university system whose tuition rates have been set annually by the Legislature. In the last two years, some of the state’s larger research universities have won the power to set a rate above what lawmakers approved, but even that has been subject to a cap.
At a news conference where he was flanked by higher-education officials, Mr. Crist described his proposal as a way of instilling financial stability at the state’s universities. His turnabout was warmly received by university presidents, who have complained about the effect of almost $200 million in budget cuts over two years. To cope with those cuts, the universities have had to pare classes, eliminate some majors and lay off instructors.”
11.21.08
Want to save money? Take class(es) online
Online classes are experiencing quite a boom these days what with the economy and all.
You save on gas, many “books” are available online, and online classes are sometimes cheaper than their classroom contemporaries as colleges and universities don’t have to pay to find that extra bit of space to hold yet another class.
Now, online classes aren’t for everyone. They require A LOT of self-discipline.
If this sounds like a good option for you, start investigating what’s available!
11.19.08
Cuomo investigating links between colleges and health insurers
New York Attorney General is at it again – this time investigating links between the health care industry and colleges, rerports the New York Times. Here’s an excerpt:
The investigation by the attorney general… appears to be focused on the adequacy of disclosure of policy terms and costs to students. Investigators also appear to be looking into whether colleges are receiving any improper payments in exchange for requiring students to use a particular insurer.
“We are primarily focused on whether insurance companies are paying schools to push students into health coverage they don’t really need and shouldn’t really want,” Benjamin M. Lawsky, special assistant to the attorney general, wrote in an e-mail message. “With students and their families being financially squeezed at every turn, colleges must ensure that they are looking out for students’ best interest first and foremost as opposed to their own financial bottom line.”
The request to State University of New York institutions, for example, asked for copies of colleges’ requests for proposals from insurers, contracts with insurers, statistics on premiums paid and information given to students about available policies, said Megan Galbraith, a spokeswoman for SUNY.
11.12.08
Federal student loans – tax deductable?
Yes! In many cases you can deduct the interest you pay from your taxes.
The IRS publication 970, Tax Benefits for Higher Education explains these benefits in greater detail. You can call the IRS at 1-800-829-1040 with any additional questions you may have.
As with any other tax deduction, there are exemptions and qualifications, so read the form closely. The relevant section begins at the bottom of the left column on page 25.
Please note – I am linking to the 2007 document as I can’t find the 2008 document yet (it may not have been released yet). If you do want to claim this deduction, PLEASE CHECK FOR THE MOST CURRENT VERSION of this document before preparing taxes, as the rules change from year to year.
11.06.08
Don’t blame professor’s salaries for high tuition
Contrary to what the average person believes, most professors don’t earn a lot of money. Enjoy this excerpt from the Chronicle of Higher Education – the truth is likely much different than you would expect.
“During a debate among the Democratic presidential candidates at Saint Anselm College in January,
Charles Gibson, the moderator, used what he thought was a realistic example of a two-career academic
couple at the small college in New Hampshire. Between them, he ventured during a discussion about tax
policies, they would earn about $200,000 a year.
The audience met Mr. Gibson’s statement with laughter and guffaws. Even some of the candidates told
him he was off base — and they were right. On average, tenured associate professors at Saint Anselm
earned around $65,000 last year. For young assistant professors, the pay was closer to $50,000.
The TV anchor apparently is not the only one who envisions professors as among the well-heeled. When
The Chronicle videotaped interviews with ordinary people on the streets in Washington this fall, asking
them what accounted for large increases in college tuition, many pointed at faculty salaries. “It’s the
rising costs of tenured faculty and all that stuff,” said one woman.
So, what is the truth about faculty pay?
First, it varies wildly according to discipline and by what kind of institution is cutting the paycheck:
public or private, two-year or four-year. Second, although some faculty members earn enough to qualify
as rich, the vast majority do not.
Professors in disciplines like finance do quite well, earning as much as $406,781 a year, according to a
2007 survey of 100 major public institutions by Oklahoma State University. But in that same survey,
English professors earned $67,931 on average.
Still, the association is well aware that the public — and some legislators — believe there is a direct
correlation between faculty salaries and rising college tuition. The AAUP spent time trying to punch
holes in that notion, without much success.
In a 2004 report called “Don’t Blame Faculty for High Tuition,” the association said that on average, tuition and fees at public colleges increased by more than double the rate of faculty-salary increases
between 1990 and 2003. Tuition rose 6.6 percent per year, on average, while faculty pay rose by only
3.2 percent per year.
“If tuition and fee increases had been held to the rate of average faculty-salary increases during this
period,” the AAUP report said, “average tuition and fees would be substantially lower today.”
Compared with average Americans, professors are well off. While the average full-time faculty member
earned about $75,000 last year, the median household income in the United States was just over
$50,000, according to the U.S. Census Bureau. But compared with other professionals with advanced
degrees, faculty members don’t fare as well. Indeed, professors are fond of saying that no one else with
as much education earns as little as they do.
According to the U.S. Census Bureau’s Current Population Survey, the average person with a
professional graduate degree earned $123,141 last year. That is almost $50,000 more than the average
professor. “