PASS AROUND THE CAP

“PASS AROUND THE CAP”
by Kim Clark, U.S. News & World Report

The tides of chance will splash everybody with a little bad luck
from time to time.  But a tsunami of economic troubles and
unfortunate demographics is deluging the nation’s 3.3 million high
school seniors.  The class of ‘08  may well be the unluckiest group
of high school grads in modern history.  They are certainly the
largest senior class ever, which means they face far worse chances
of getting into a selective college than their older — or younger
– brothers and sisters.  Indeed, they are opening a record number
of thin college rejection letters right now.

And the joy of thick acceptance letters is increasingly soured by
record-high tuition prices, while unprecedented collapses in real
estate values and credit markets have diminished the funds that many
families expected would cover their costs.

“Honestly, I’ve been through a few peaks and valleys, but it has
never been tougher” for seniors, says Bill McClintick, president
-elect of the National Association of College Admissions Counselors
and director of college counseling at Mercersburg Academy in
Mercersburg, Pa.

The teens and parents suffering through this spring of heartbreak
have much stronger words:  ”I think we’re screwed,” says Beatriz
Rodrigues-Wade, whose daughter Monica Wade has a 4.0 grade-point
average, plays on the varsity tennis team, and interns at a biotech
lab.  Monica was rejected by many of her top choices, including
Harvard, UCLA and the University of California – Davis.  Most of
the other schools that admitted her gave her so little financial
aid that her parents can’t sleep at night because of worries about
how much her education will cost the family.  ”She did everything
right.  She worked really hard and got really good grades.  And now
we have to say:  ’Sorry, we can’t pay for your school’?  Your heart
breaks.”  That misery has plenty of company.  After bottoming out at
about 2.5 million in the early 1990s, the number of high school seniors
has been climbing and peaked this year at 3,340,235.  It should start
dropping next year and continue to decline through the class of 2014.

Those numbers have made this college application season the most
brutal on record.  In 1986, Ohio State accepted any Ohio high school
graduate.  This year, it probably will reject half of its 21,657
aspiring freshmen.  Meanwhile, Harvard accepted an all-time-low 7.1
percent of its 27,462 hopefuls.

Tuition increases.
And when today’s seniors do get into a selective college, they have
to confront unexpected financial worries.  True, several of the
nation’s most elite schools have announced increases in financial
aid to lure the best students.  And the government will increase
the maximum federal Pell grant (aimed at families earning $50,000
or less) by a healthy $421 this fall.  But aid hasn’t kept up with
tuition increases.  At the same time, dropping home values have
eliminated equity that many parents had planned to tap.  And lenders
have pulled back from private educational loans. So the majority of
‘08ers face higher tuition bills with fewer funding options.  ”There
is no easy answer anymore,” says Linda Taylor, a private financial
aid consultant in Camarillo, California.

So what can they do?  Pinch pennies.  Work hard. And compromise.
That’s how Suzanne and David French of Leesport, Pa., will manage
in September when three of their four children will be in college.
David will keep working for a landscaper during the week and at
Sam’s Club at night and on weekends.  Suzanne may supplement her
job as support staff for a local school with a second job as well.
They may also take out another PLUS loan.

But the Frenches are careful not to sacrifice too much. They won’t
touch their retirement savings.  And they make sure their children
don’t mortgage their futures with debt.  ”I don’t have a problem with
them paying their part.  I have a problem with kids graduating with
$40,000 in debt,” Suzanne says.  Her kids take summer and campus jobs
to cover their own books, clothing, and personal expenses- about $4,000
a year.  They also take the maximum in Stafford loans, contributing
an additional $3,500 to $5,500 a year to tuition.  Any school with a
price tag that would require more sacrifices is out of the question.
“I don’t understand why parents feel guilty about having children
going to a cheaper school,” Suzanne says.

In fact, some studies have found that smart kids do well no matter
what college they attend.  The college Class of ‘12 may have worse
luck than previous classes.  But many are embarking on a better,
if more painful, education.  Many will graduate with the equivalent
of two diplomas.  One will be from the school of hard knocks.