Resources and Tips for Tight Economic Times
It’s difficult to pick up a newspaper, turn on a TV, or go online these days without seeing news about foreclosures, layoffs, or economic stimulus.
UW–Madison recognizes that the current state of the economy is a major strain for everyone, including students and parents. The university itself is absorbing its share of difficult state budget cuts and participating in a furlough program for all state employees.
Colleges and universities across the country have been similarly affected, with many facing situations that are even more difficult. According to the Center on Budget and Policy Priorities, at least 30 states have taken action at public universities that resulted in cuts to faculty and staff, tuition increases up to 15 percent, or both.
As a parent, you’re likely concerned with rising tuition costs or how to save money on your son or daughter’s education. Badger Parent has compiled the following resources, tips, and suggestions.
Quality of experience: First and foremost, remember that UW–Madison continues to represent a tremendous value, providing a high-quality educational experience in exchange for tuition and fees that rank near the bottom of the Big Ten, says Susan Fischer, director of the Office of Student Financial Aid.
“We continue to be a good value, for both instate and out-of-state students,” she says.
Despite budget cuts, Chancellor Biddy Martin is committed to protecting the quality of the undergraduate experience. To help offset cuts made during the past few budget cycles, Martin recently spearheaded the Madison Initiative for Undergraduates, a supplemental tuition plan that will fund faculty and instructional support to improve access to high demand courses and majors, classroom innovations, student support services, and additional need-based student financial aid. For 2009–10, the initiative’s cost will be recouped by a $250 resident and $750 nonresident tuition surcharge for students from families earning more than $80,000 who do not qualify for need-based aid.
Undergraduate tuition and fees (including the surcharge) for 2009–10 total $8,314 for residents, an increase of $745; and $23,063 for nonresidents, an increase of $1,245.
The university recognizes that these increases can be difficult to bear in the short term, but Fischer suggests considering them within the context of how they will influence a student’s life and career.
Resources on campus: If something dramatic happens—such as a job loss—contact the Office of Financial Aid. Send a letter or e-mail that provides your student’s name, campus ID number, and details about what has changed. While contacting the office doesn’t guarantee additional financial aid, it is the first step for finding help, Fischer says. Financial aid staff will review the student’s current aid package and determine whether changes are warranted or possible. Keep in mind that evaluations are based on income, not rising family expenses or decreases in net worth.
Students can still apply for financial aid for 2009–10 until April 2010, however early action is encouraged. And they can also help themselves by planning ahead and by maximizing their opportunities to land campus jobs and scholarships.
Fischer advises students to consider jobs of 10 to 15 hours per week once they have set class schedules for the fall semester. The UW Student Job Center lists part-time jobs, limited-term employment (LTE), and summer job openings located on and off campus. Working full time during summer break—and ideally, during semester break—is another great way to pay for educational expenses.
Each year, UW–Madison schools and colleges disburse $28 million in undergraduate scholarships. According to Jim Buske, scholarship administrator in the Office of Financial Aid, two important initiatives will make it easier for students to learn about and apply for these scholarships. The first is a new Web site, Scholarships@UW–Madison, which will launch in early September. This site will offer a central resource where prospective students and their parents, along with current students, can explore the available undergraduate scholarships.
The second initiative is the Common Scholarship Application (CSA), an interactive Web site interface allowing admitted and currently enrolled undergraduate students to apply for scholarships by completing an online application. The CSA will be rolled out in phases, starting first with students in the College of Letters & Science this fall. By fall 2010, all schools and colleges will be participating in this program. Until the CSA is complete, all non–Letters & Science students should visit the specific school or college Web site for scholarship applications.
The best time to look for scholarship information for the following academic year is November through January; most application deadlines occur in January and February.
Lastly, Fischer suggests that students touch base frequently with their academic advisors to ensure that they are on track for a degree and can finish their intended program within four years.
“Explore, but also make sure that your vocational goals and means line up,” she adds.
More advice: Beyond seeking help with costs such as tuition, students can cut back on other expenses by living more frugally, advises Dean of Students Lori Berquam.
For example, students can turn to the many free or low-cost activities on campus, such as Recreational Sports and the Wisconsin Union; eat healthier food in campus dining rooms, which is generally less expensive than dining at area restaurants; and save by avoiding the ever-present lure of coffee shops.
UW–Madison and its partners recently made financial education more readily available to students. For example, the Wisconsin Alumni Association (WAA), working with experts at the National Endowment for Financial Education, offers the online education program CashCourse.org, along with senior seminars on financial independence.
Ron Smith, a UW lecturer in financial planning and consumer finance, conducts financial independence seminars on behalf of WAA. His advice includes:
- Wants vs. needs: Create a very basic budget, either using an Excel spreadsheet or paper and pencil. Committing income and expenses to paper can be very revealing.
- Pay yourself first: Consider having some amount of a paycheck directly moved to a savings or checking account using payroll deduction.
- Credit cards: Make sure you have the best credit card available and pay off balances each month.
- Debt consolidation: If you have high-interest credit cards or other debts, consider working with a credit union or bank to consolidate debt, which often results in lower interest rates and smaller monthly payments.
For more information and links to financial resources, contact the Parent Program.