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Advantages to Attending a Trade School

It’s quick. Most trade licenses require less than two years of training or schooling to acquire. Compare that to the average time it takes to earn a bachelor’s degree: 5 to 6 years! It’s preprofessional. The skills trade schools teach are designed for the workplace. That means you will graduate with a marketable certification and career ready. Compare this to liberal arts fields of study, where majoring in visual art or literature may mean that the pathway to a career is less defined. It’s more affordable. According to Vocational Training HG, “the overall average cost of vocational school in the United States is about $33,000” and “the average cost of a Bachelor’s degree is $127,000.” Less cost means less debt. This means there will be fewer debilitating loans to repay post-graduation, and greater financial freedom. It’s accessible. College is not for everyone, and the risks of starting, but not completing school are high. The Institute of Education Statistics estimates that “40% of attendees at a four-year college drop out before completing their degree” and “64% take longer than four years to graduate.” This means that those who decide not to complete college still have to pay the cost of a degree they didn’t obtain. There’s demand. With more and more millennials and Gen-Y’ers getting bachelors degrees, there is a hole in the supply of young tradespeople. As current trades workers age in the industry, the demand for you talent will skyrocket.

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Deciding Your Child’s Future May Not Be As Clear-Cut As You Thought

Gearing up for SAT and ACT season? Countless families are shifting from summer mode to college prep mode as the application deadlines for most major universities draws near. Not surprisingly, many high school juniors and seniors have thought only of where they will attend college. In fact, not many been of these students have been asking themselves if they want to attend a four-year academic institution at all. As it turns out, “do I want to get a bachelor’s degree?” may very well be the $55,000/year question of the year. For the last four decades, the United States experienced a cultural push for adolescents to earn bachelor’s degrees. In fact, data collected by the United States Census Bureau indicates a over a 28% percent increase in bachelor’s degree holders in 65 years: from 5% in 1940, to 33% in 2015. This year alone, around 33.4% of Americans reported having earned at least a bachelor’s degree, with many within that cohort having gone on to earn master’s and doctoral degrees. Statistics from the Bureau of Labor Statistics show the substantial difference in earning potential for those with academic degrees and those without, the latter earns approximately $464 less in average weekly pay. It seems only natural then, to assume that most American parents intend on sending their children to four-year institutions to secure a bachelor’s degree, and, hopefully, higher salaries in the future.   But is committing to four years of study, $30,000 worth of student loan debt and an uncertain hiring pool the only option for leading financially secure adult lives? Perhaps not. Recently, a contributor to PBS published an article claiming that the nation’s emphasis on attaining bachelor’s degrees after high school caused a number of adverse effects; particularly the erosion of vocational industries. You might be thinking, “what’s the big deal?” With a shortage of skilled trade workers, the demand for these positions are steadily increasing. Not to mention, the salaries for these careers. Interestingly, the article states that “The United States has 30 million jobs that pay an average of $55,000 per year and don’t require a bachelor’s degree, according to the Georgetown center.” That is a big deal. A massive deal. But that is not all. Not only do a plethora of well-paying jobs exist that do not mandate $30,000 of debt, but “people with career and technical educations are actually slightly more likely to be employed than their counterparts with academic credentials, the U.S. Department of Education reports, and significantly more likely to be working in their fields of study.” Talk about thought-provoking, right? So we leave you to ponder this information as your high school juniors and seniors begin contemplating their post-graduation plans. It may be worth considering a broader range of paths, including the pursuit of a vocational education or trade certification. While the benefits of college cannot be measured solely by one’s income, the desire to build a stable future for your kids may be more attainable than what we have been led to believe.

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Getting To Know Student Loans (And Where To Begin)

You have decided on your career and the college you want to attend. Now you have the task of finding a loan so you can afford to attend college and help your dreams come true. Paying for college is a scary thought, especially when the average public college tuition costs $24,061 and average private is $47,831. There are similarities and differences when it comes to student loans and ordinary loans. Student loans are similar to other loans in the way that you borrow money from a lender and promise to repay the loan with interest. The difference from student loans and ordinary loans comes in the repayment terms of student loans. With an ordinary loan, you are expected to begin paying the loan off in installments as soon as you receive the money. In the case of a student loan, you are traditionally expected to begin repaying the loan after your education is over because of the lack of employment needed to pay the loan is not there until you complete your schooling. As you will read below, some types of student loans are vastly superior to others. There are 2 main categories for student loans, federal and private loans. Let’s take a look at the different types of loans that come with federal and private loans: Stafford Loans are the most common type of federal loan that students apply for and use for funding their college education. Stafford loans are capped at a certain amount per year, based on whether you are dependent on or independent of your parents and what year you are in school. There are two types of Stafford Loans: Subsidized and Unsubsidized loans. Subsidized loans are awarded based on your financial need. The interest on these loans will not accrue while you are in school at least part-time. The interest will also not accrue if you apply for “deferment” following your education to help you have time to get an established job and full-time employment. Unsubsidized loans are not based on your financial needs, and the interest will begin to accrue from the moment the government gives you the loan. If you are an undergraduate, a subsidized Stafford Loan will have a lower interest rate than an unsubsidized one. Perkins Loans are for students with extreme financial need. The interest rates for Perkins Loans are a standard 5%, and the loan is limited to $5,500 per year in aid. PLUS Loans are issued to parents of students. Your parents can borrow a PLUS loan to supplement the costs that were not covered by other forms of financial aid that you have received. A consolidation loan combines one or several loans into a single loan package. According to the nonprofit American Student Assistance (ASA), interest rates on consolidation loans are calculated by doing a weighted average of the rates of each individual loan being combined and rounding up to the nearest one-eighth percent. The interest rate is capped at 8.25%. Institutional loans are offered by the school you’re attending. Unlike a scholarship, this money must be repaid to the school once you graduate. Private loans are sometimes called “alternative” or “deal” loans because they are different from government-funded Stafford, Perkins and PLUS loans. Unlike government loans (whose interest rates don’t vary and which have standard repayment schedules), the interest rates of private student loans can change over the life of the loan, and repayment schedules are not standardized. For this reason, private loans tend to be a greater financial burden for you when you take them on. These loans are recommend for you to use only when all other sources of financial aide have been exhausted. After learning about the different types of loans available, the first step is to fill out a “Free Application for Federal Student Aid” (FAFSA) form. A few things you will need for this form are: Your Social Security Number Your W-2 and Tax Return Paperwork From The Previous Year Your Parent’s W-2 and Tax Return Paperwork From The Previous Year (if still legally a dependent of your parents) Submitting the FAFSA form online is the most recommended route as it is the fastest way to apply. The next important step is to find out the total cost of the school that you are want to attend. For this you will need to factor in: Tuition Additional Fees and Charges (These vary from school to school, so ask your admissions and records office what that may be.) Housing Books and Supplies Transportation Miscellaneous After you find the total cost, find out how much your family is able to help with your education funding. Sometimes your parents will have set up a savings account to help with these cost. Once finding out what loans you are eligible for, investigate the different types and what they have to offer. What is the interest rate? Total amount owed later? Accept the loans that are right for you and ensure to budget your money to last through the year and cover everything you will need. The process of applying for loans is repeated every year, as your income can factor in State and Federal grants, depending on what your state has to offer. Your income also factors how much interest-free and interest loans you are eligible for. Don’t just assume that your loans will be the same as they were the previous year. As income and other factors change, so do your loans. If you are stuck in a difficult spot when it comes to paying for school and do not have enough loans to cover, search out grants and scholarships offered for students in your position. There are many companies offering new grants and scholarships every year.

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