by Kendra Weinisch on November 19, 2009
“Probe of Extra Help for Men.” The headline on the Inside Higher Ed website shocked me. Could it be that the tide has shifted and that male students now require affirmative action to get into college? It seems impossible. For as long as I can remember, there have been organizations dedicated to eradicating the gender imbalance in academia (weighted, of course, toward men). Throughout school, all I heard were rallying cries for women continuing after high school, taking advantage of admissions assistance policies, and scholarship opportunities specifically for the fairer sex. Clearly, times have changed.
According to an article in the New York Times, “’for every one hundred women who graduate with a bachelor’s degree, only seventy-three men’ do so.” This describes the backend but doesn’t explain why these boys are having trouble getting in to begin with. Then I read further. Apparently, these gender imbalances—and consequent discrimination issues—are most common at small, private liberal arts schools. Okay, I can buy that. It seems that the ratio of women to men at these schools is hovering around six to four. To try to keep the balance, these schools may be favoring men in their admissions processes. Although private undergraduate universities are exempted from Title IX admissions rules regarding gender, the U.S. Commission on Civil Rights has launched a study to determine if the accusations of favoritism, which are often downplayed by the schools, are accurate.
Interestingly, the trend is moving into non-liberal arts schools as well, particularly research universities. The majority of bachelor degrees, fifty-eight percent, now go to women. To attract male students, schools are trying different approaches. Some are simply letting their admissions records do the talking, hoping the statistics will illustrate that they are friendly to male applicants. A study by Skidmore College, a small school in upstate New York, found that “being a male applicant raises the probability of acceptance at these schools by between 6.5 and nine percentage points.” Others schools are more creative. Dickinson College in Carlisle, Pennsylvania, refreshed its marketing materials with more pictures of sports and students in hands-on learning situations. Others are going farther, expanding their sports departments and fraternity rows.
Getting into college becomes more complex every year. These arguments of favoritism underscore the importance of doing your homework on prospective universities. If your son is looking for good odds on admission into college, you might want to start your search at liberal arts and research schools.
by Kendra Weinisch on November 13, 2009
By the time your high school student applies to college, you’ve probably already done some financial planning for it. Perhaps that planning involved a jar in the kitchen or even a CD at the bank. Often overlooked, there is also the “qualified tuition plan,” or 529 (called that because they are authorized by Section 529 of the Internal Revenue Code). Similar to IRAs, 529 plans are tax-advantaged savings plans that allow you to invest for your child’s educational future. These plans have been popular with wealthy families since states began to introduce them in the 1990s, but President Obama is working to make 529 plans more affordable for lower- and middle-income families as well.
There are two forms of 529 plans: pre-paid tuition plans and college savings plans. Every state sponsors at least one of the two. The first plan is kind of like layaway. It allows you to begin paying for your child’s education years in advance. The benefit is that it secures tuition prices, so you will be immune to future tuition hikes. It also comes with insurance from the state, so your investment amount will not lose value over time. The college savings plan, on the other hand, is less secure. It allows you to invest money for college without fear of federal taxation but does not guarantee its value. The money you invest is open to market fluctuation and could even decrease in value, as many people have seen in the last year. The following chart breaks down the differences.
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Prepaid Tuition Plan
|
College Savings Plan
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| Locks in tuition prices at eligible public and private colleges and universities. |
No lock on college costs. |
| All plans cover tuition and mandatory fees only. Some plans allow you to purchase a room & board option or use excess tuition credits for other qualified expenses. |
Covers all “qualified higher education expenses,” including:
- Tuition
- Room & board
- Mandatory fees
- Books, computers (if required)
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| Most plans set lump sum and installment payments prior to purchase based on age of beneficiary and number of years of college tuition purchased. |
Many plans have contribution limits in excess of $200,000. |
| Many state plans guaranteed or backed by state. |
No state guarantee. Most investment options are subject to market risk. Your investment may make no profit or even decline in value. |
| Most plans have age/grade limit for beneficiary. |
No age limits. Open to adults and children. |
| Most state plans require either owner or beneficiary of plan to be a state resident. |
No residency requirement. However, nonresidents may only be able to purchase some plans through financial advisers or brokers. |
| Most plans have limited enrollment period. |
Enrollment open all year. |
1 Source: Smart Saving for College, FINRA®
These plans have long been popular with affluent families, who can justify the fees charged by the states and the underlying mutual funds because the investments positively impact their income tax dues. However, the Obama administration is pushing states to round out their 529 plans with index mutual funds, which have lower fees than other mutual funds. In addition, the federal government is urging states to expand their tax breaks to plans beyond their borders. This would open the market for 529 plans and allow parents to choose the best plan for their needs, regardless of residence.
It may be too late for you to invest in a 529 plan for your high school senior, but amendments to the plans may make them a worthwhile investment for your younger children’s educations (or your older child’s graduate school). Start your research now to find the best 529 plan for you.