Students Who Work During College

A study commissioned by the United States Department of Labor unveiled some startling information.


Part-time campus jobs not only help students make money — they can also help raise grade-point averages. The study, based on hundreds of undergraduates between 1996 and 2004, found that the average GPA of freshmen at four-year universities who worked between one and twenty hours a week was 3.13 versus only 3.04 for kids with no work.

Here are 7 compelling reasons for students to work during college…

Get better grades. The number one thing that the US Department of Labor Study concluded was that college students who work one to twenty hours get better grades. Plus, they have a better chance of graduating.

Help pay for tuition. It is no secret; college costs have skyrocketed over the years. So any additional income students can earn can go right towards tuition, room and board, and any other college expenses that come up.

Gain budgeting skills. Students who work to pay for part of college tuition and fund their entertainment are less likely to overspend on entertainment (versus those who have a parent’s credit card at their disposal.)

Gain time management skills. Part-time jobs force students to budget how they spend their day. Part work, part class time, part study time, and some time for social activities. This is the way the real world works, after all. So, learning to juggle many different activities in one day in college gives your Student a heads up on the rest who don’t gain this experience.

Connect with professors. This could help explain the higher average grades to those students who work part-time… since a lot of on-campus jobs involve working with staff at the university.
Avoid the wrong major or career. Changing careers later in life or even late in college can be a very costly event. By having a part-time job, your student can learn what they do or don’t like… potentially avoiding a costly mistake down the road.

Improve resume. Probably the number one reason to get a college degree is to improve the chances of getting a job after graduation. Working during college is a resume builder — especially if you can get experience in a related field.

But there’s also a dark-side to having your kids work. This same exact study showed that while a little work was good for students, too much work caused a decrease in grades.

Freshmen who worked more than 20 hours a week had GPAs of only 2.95.

Plus, your student’s income is factored heavily into the financial aid formulas. So, an increase in student income could reduce your financial aid package. As with everything in life there must be a balance.


The earlier you start on the College Planning Process the greater the chance of success. Please remember that the environment is very competitive. Many students will be working towards their goal of getting into the best college possible at the lowest possible cost. Our "College Graduate Program" will give you and your family the edge that most students don't have. We have helped over 20,000 students!




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Ron Rotenberg
310 - 377-0668 (Office)
(310)377-1831 (FAX)
E-Mail : ron@collegefinancialfunding.com
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Recent Changes in Student Loans

When the Health Care Reform bill was passed last year, few people noticed the government changed the way student loans work. Let’s take a look.

Pros
The government has cut out subsidies to private banks making Stafford loans – instead giving out the loans itself. This change saves the government all of that subsidy money, while increasing revenue through receiving interest payments itself. The Obama administration calculated savings at $60 billion over 10 years.

That also means that there should be more money available to give out as grants. The Pell grants are now going to be linked to inflation – so, in a decade’s time, they should be almost 10% larger than they are now.
Loans are also being locked in at lower guaranteed rates – no more than 6.8% going forward. For graduate students, the rate is capped at 7.9% – compared with the 8.5% or even higher at some private banks offered under the previous system.

The government is going to be more flexible when being repaid – no payment plan will exceed 10% of a graduate’s income. In addition, the government is more lenient in accepting applications. The entire system has been simplified. Rather than shop various banks for the best Stafford loan, you simply go to the government, and pay whatever interest rate you qualify for (the needier the student, the lower the interest rate).

Cons

While some banks would aim to get every possible penny, others offered discounts to students. A savvy shopper could sometimes find a great deal. The new program is one-size-fits-all, so there aren’t any deals or discounts available.

The program itself is slightly riskier as well. It used to be that banks and the government would share the risk – true, the government guaranteed 97% of the value of a loan, but the bank still had a share. Now, the government bears full responsibility. That, coupled with more lax standards for loans and lower interest rates for bigger risks, could potentially lead to problems in any sort of financial crisis.

In addition, should a different administration decide to change the rules, there won’t be many alternatives. Again – you can no longer shop banks. You’ve got the one stop – the government.

In all, the majority of students won’t notice a big difference. Hopefully more money will go to students, and less to middle men. At least that’s what they’re saying will happen…