California school counselor to student ratio is 1/966.

An excerpt from a letter from the California Association of School Counselors (CASC) to the California State Assembly, dated May 21st, 2006…

 

“…California ranked last amongst other states in school counselor to student ratio…Not only is the school counseling situation in California dreadful, it is so bad that it is going to take an exceptionally strong commitment from California leaders such as yourself to commit resources to alleviate the problem…(There has been) decades of neglect in students receiving appropriate guidance in their career and academic planning.  In fact, there are districts throughout California that have no school counselors at the middle or high school level.”

 

The cost of college is increasing twice the inflation rate of 3% 

The cost for a college education is spiraling out of control.  Many parents and their students do not properly plan for this burdensome expense, and as a result are unable to attend.  College Board wrote: “College costs increase at about twice the inflation rate. Current increases have averaged 5% to 8%.” 

 

Below are estimated Cost of Attendance numbers for a 4-year California college.  Cost of Attendance includes tuition, room and board, fees, books, transportation, etc.)

• California State Universities: $14,000 to $19,000 per year.
• University of California schools (UC):  $20,000 to $28,000 per year.
• Private colleges:  $35,000 to $50,000 per year. 
• Out of state public institutions: $25,000 to $42,000 per year. 

The average length of time to graduate college is 5.8 years.

On a national level, we are seeing that the average time it takes to graduate from a public university is 5.8 years, and 4.2 years at private universities.  With Cost of Attendances ranging from $14,000-$50,000 per year, the expense associated with the extra time to achieve a 4 year degree can be massive.  It is imperative to formulate and execute a well-thought out academic plan in order to ensure that your student remains focused and graduates in 4 years.

 

Almost 50% of college students never graduate. Over 30% drop out after the 1st year.
The leading reason for this problem seems to be a lack of money.  According to the National Center for Public Policy and Higher Education: 50% of all entering freshman borrow funds.  Of these freshman, 20% will ultimately drop out.  Students who drop out are twice as likely to be unemployed than those who received a degree, and more than ten times as likely to default on their loans. Please view parent center to view more statistics.

 

A Bachelor’s degree salary is double a high school graduate’s salary

• The Census Bureau figures the average lifetime career earnings of a high school graduate to be $982,880 versus $1,827,120 for a college graduate.
• The US Dept. of Labor says that the top seven job categories that are predicted to have the most growth over the next decade require a college degree.
• The 2006 unemployment rate was 130% higher for non-college graduates than for graduates.
• According to the U.S. Department of Education Statistics, full-time workers age 25-34 who have a college degree earn an annual average of $19,400 more than those who do not have a college degree.

 

Students are graduating with over $100,000 in debt 

Poor financial planning leaves families unable to afford the annual costs of $14,000-$50,000 for a college education.  An increasing amount of this financial burden is being placed on the shoulders of the student, who commonly graduate with over $100,000 in student loans.  Many of those loans are becoming delinquent because of the inability to pay them off under short 10 year repayment terms. 

 

The average Northern California Family has saved less than $10,000 for college.

This sad statistic is a direct result of poor financial planning and a lack of financial aid knowledge.  First off, most families start planning for college much too late.  Second, in our experience, most Northern California families do not even attempt to seek financial aid.  Since the average household income is $140,000, most families feel that there is no chance of acquiring financial aid for their students.  While the truth is that it is harder for high income households to find aid sources, there are still several resources from which to get financial aid.

 

It is becoming more difficult to obtain loans for college bound students

The recent downturn in the economy, prompted by the credit crisis, is now hitting private lending institutions.  All types of loans – private, home equity, PLUS – are becoming increasingly more difficult to obtain in the current economic recession.  A recent survey by the National Association of Independent Colleges and Universities (NAICU) shows 43% of private college's & universitie's report one or more of their preferred lenders have completely stopped offering student loans. With property values plummeting across most of the country, families are not going to be able to utilize their home equity to pay for college.  Most lenders no longer offer second mortgages.  Lenders that are still lending have frozen most access to borrowers’ lines of credit. 

 

It is difficult to find guidance on financial aid and scholarships.

Who do you turn to for help?
The California Association of School Counselors (CASC) states:  “In California the counselor to student ratio is 1/966…the worst in the nation.”  They are a great asset to you and your student, but the unfortunate reality is that there is not enough of them in the schools currently to sufficiently help with every college bound student.  Many parents try to figure out the complex financial aid process on their own and at the last minute.  The college planning process needs time and serious planning from an academic and financial standpoint.

College Planning Specialists specialize in all of these issues facing college bound students and their parents.  We are a complement to any college counseling that your student may be receiving, and will diligently work with your family to educate, formulate, and execute a fruitful academic and financial plan.