Posted March 19, 2009

Class of '14 gets lesson in paying for college

“Experience Temple Days” include session on financial literacy

This year “Experience Temple Days,” on-campus days for admitted students and their families to learn about Temple firsthand, went beyond the usual campus tours and information fairs. On Saturday, Feb. 28, the first of several scheduled “Experience Temple Days,” marked the debut of a session on financial literacy entitled, “What Happens Next? Financing a Temple Education.” Temple remains one of the best academic values around and is committed to keeping tuition increases as low as possible while increasing financial aid. Still, the cost of paying for college, the single largest expense most adults face in their lifetime, other than the purchase of a house, has been steadily growing. A recent report from the National Center for Public Policy and Higher Education found that college tuition and fees increased much more than median family income from 1982 to 2007.	Photo by Kelly & Massa Bursar David Glezerman talks to admitted students and their families about navigating college finances at the first of several scheduled “Experience Temple Days” on Feb. 28.

Faced with this difficult reality, even without factoring in the current economic crisis, how can students and their families best pay for college? According to Senior Vice Provost of Enrollment Management William Black and Bursar David Glezerman, who manages tuition dollars, opportunity begins with financial literacy. “Many admitted students are the first in their family to go to college. Sometimes they have sticker shock,” said Glezerman. “The knowledge about how to finance an education can give a family a lot of power.” Financial literacy is about imparting that knowledge. It’s about “…the nuts and bolts. We draw the connections between working, borrowing, scholarships and money. What are the lifestyle choices students need to make? How does one budget for college expenses or amass resources? We’re giving students a roadmap to success,” said Black. The session began with advice from Glezerman on navigating college finances and Temple policies, and included the opportunity for students and their families to speak directly with a financial aid counselor one on one. The audience also heard from PNC Bank customer service representative Emily Ahmet, who addressed such basics as keeping track of a checking account, and PNC Educational Lending and Financial Aid Officer Heather Sperratore, who offered advice on loans.

Quick tips for financing a Temple education • Make sure to budget for books, supplies, housing, commuting, food and spending money. • Choose your courses so that you graduate within four years. Limit working while in school. Working more than 15 hours a week can impact academic success and financial aid eligibility. • Plan ahead. If you need a loan, arrange for it before your bill is due. Think in terms of the money needed for a four-year education. • Fill out a Free Application for Federal Student Aid (FAFSA), which is a requirement for financial aid and for most loans. • Always look at financial aid options first — grants and scholarships — and figure out how much you can contribute before borrowing. • Apply for federal loans first, then private loans. • If you have an existing relationship with a bank and need a loan, go first to the bank that knows you. • When you can, pay off the interest on your loan before you pay off your loan. • Consider a prepayment option, such as Temple’s Installment Payment Plan (TIPP), which will enable you to pay for tuition in five or 10 payments. If you have questions, visit the Bursar’s Office web site at www.temple.edu/bursar or theStudent Financial Services web site at www.temple.edu/sfs.	“The most important thing is to plan ahead,” said Sperratore. “Also allow time for the resolution of any problems that come up. Talk to your financial aid counselor and to lenders.” Along with planning ahead, according to Black and Glezerman, another important strategy is for students to focus on their education. One of the most frequent and costly errors that students make is trying to finance their education by working too many hours instead of concentrating on their studies. “Most programs take 120 to 124 credits to graduate,” said Glezerman. “Temple charges the same amount per semester whether you take 12 or 17 credits. Take 15 credits a semester and you can finish in four years. If you take 12 credits, you pay an extra year in tuition — $11,000+ if you’re in-state — and you miss out on the income from your potential first year of work, say $30,000, plus you have to consider added debt and interest from student loans. One additional course per semester for four years can make that much of a difference.” Even parents who already have a child in college were able to benefit from this crash course.

“I learned you can pay interest off on a loan and maybe that is something I should do,” said Christine Bryan-Welsh, whose daughter Meghan Welsh is seriously considering Temple’s pharmacy program. These sessions for admitted students and their families are just the start of a plan for teaching financial literacy at Temple. “Ideally, we’ll build a freshman seminar and make financial literacy on the TUportal required for incoming freshmen and an initiative for all four years of college.,” said Black. “We are working on plans with a committee that includes the treasurer of student government.” Other ideas include presenting financial literacy to eighth-graders at area middle schools and providing financial management for alumni.

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