My first question to Rachel was “What do you wish you knew then that you know now?” Rachel, after all, is officially a veteran of the college admissions process. While she is busily adjusting to life after high school graduation she is actually thinking much more about what her life will be like in three months when she moves into her college dorm.

For Rachel it was a lengthy and sometimes stressful process. She started visiting colleges in her sophomore year. She took the most rigorous curriculum her high school offered, had stellar standardized test scores, participated in a variety of clubs, held leadership roles, got involved in community service, played an instrument, won awards, immersed herself in a foreign culture during her summers; in short – she did everything right.

Here are some snippets of my conversation with Rachel:

Lee – “What did you do right?”

Rachel– “I visited many colleges and applied to a good variety of schools – 3 safety, 1-2 target and 3-4 reach.”

Lee – “What did you wrong?”

Rachel – “I didn’t start essays or ask for letters of recommendation early enough. It was hard to write essays in the fall and still keep up with all the work during first semester. Some teachers had fulfilled their quota of letters of recommendation before the end of junior year, so waiting to ask as a senior was too late and I had to scramble.”

Lee – “Did you find any shortcuts or do you have any ideas to make the process run more smoothly for rising seniors?”

Rachel – “I was able to re-use several essays for schools a few times, although I did have to make significant adaptations.”

Lee – “Was it challenging at school with everyone asking where you’re applying?”

Rachel – “Yes, especially with juniors. They think they understand everything about the application process and believe that holding many leadership positions and getting straight A’s in AP classes guarantees students a spot in the most prestigious schools. They don’t understand that even for the most qualified students, the admissions process is still incredibly random. Some students don’t understand when seniors don’t get into top schools. I regret sharing my list of schools with all of my friends and I eventually decided to put my acceptance/rejection decisions on “lockdown” in April.”

Lee – “If you had high school to do all over again, what would you do differently?”

Rachel – “I don’t have many major regrets about high school, but I wish I had been more involved in clubs freshman year and selected activities that I knew I could continue for four years. I would also focus more on a few select clubs and not join every honor society just to be able to put it on an application. I always agreed with the “depth not breadth” argument but my position was confirmed when I actually started applying. As I began filling out applications, especially the Common Application, I realized how few spots there actually were to put extra-curricular activities, so being superficially involved in a ton of activities truly doesn’t help at all.”

Lee – “What would you do differently in terms of preparation for the application process?”

Rachel – “I would research standardized tests more; I think students focus more on the SAT and only take the ACT the one time in February or March when the state pays for it; I wish I had taken the ACT again, because I found the math section a better fit for my skills.”

Lee – “What was the biggest waste of time?”

Rachel – “Visiting some schools over the summer, some schools were completely empty, so I didn’t get a good sense of the atmosphere; others still had students. Families should check with admissions to see what kind of campus life is going on during the summer.”

Bierer is an independent college adviser based in Charlotte. Send questions to: lee@collegeadmissionsstrategies.com; www.collegeadmissionsstrategies.com

Here is a tutorial you can share on how they work

ust swipe and sign, right? Well, there’s a lot more to how credit cards work than that, because with a credit card, you are essentially borrowing money from a bank that you will pay back at the end of the month.

How do I build credit?

If you’ve never had a credit card before, you’ll need to build up your credit. How to establish credit is somewhat of a Catch 22: You need a credit card to build credit, but you can’t get one without good credit. Luckily, you have a few options.

1. Sign up for a joint credit card account with an established credit user
2. Get a secured credit card (learn more about secured credit cards below)

Authorized user vs joint account holder

It’s important to note that there’s a big difference between an authorized account user and a joint account holder. Joint credit card account holders are like cosigners on loans. Both people can use the account, both are responsible for the debt and repayment affects both people’s credit history. By contrast, an authorized user is allowed to use the account, but they are not responsible for the debt. As a result, payments do not impact an authorized user’s credit history.

So, while becoming an authorized user can help you get comfortable using credit cards, it won’t help you build credit. If you ask a friend or family member to add you as an authorized user, keep this in mind. You can get some practice, but it won’t help you build credit.

If you’re learning to use credit, it’s best to pair an authorized user account with a secured credit card. This allows you to practice and learn from a seasoned credit user and build your credit.

How do credit cards work?

It’s important to think about what kind of card you need before applying for a new credit card. While you shouldn’t carry a balance from month to month, sometimes you can’t help it. If you plan on carrying a balance, make sure it is never above 20 percent of your credit limit. And only carry a balance on a credit card with a low interest rate. Also, make sure you are paying more than the minimum balance each month.

What is a secured credit card?

Credit cards come in two main flavors: secured and unsecured. With secured credit cards, you give the creditor a deposit for a specified amount. The creditor gives you a credit limit equal to that amount. Even though you sent them money, this is not a debit card situation. When you use the card, that amount isn’t debited from the money you sent. You have to pay off your purchases each month.

A secured card is great practice for someone who is building credit. This includes those new to the credit card game or individuals who have made bad credit decisions in the past. By using the account and paying it off each month on time, the credit reporting agencies will see that you are responsible with your credit account and your credit score will start to build.

What is an unsecured credit card?

Once you’ve built up your credit score, you can apply for an unsecured credit card. These cards don’t require a deposit and the credit card company will give you a credit limit based on your income as well as your credit score. Most of the credit cards on the market or that you see ads for are unsecured credit cards. They can offer rewards including travel points or cash back.

If you are applying for an unsecured credit card rewards card, it is important to pay off the balance each month, otherwise the interest that you are paying carrying a balance each month will negate all the rewards you are earning. Some rewards cards also have annual fees attached to them, so make sure you are using the card enough so that the fees are worth it.

Charge card vs credit card

Charge cards are few and far between nowadays. American Express is the only major issuer that distributes charge cards. The only real differences with a charge card and a credit card are the terms. When you sign up for a charge card, the main appeal is an implied lack of a spending limit. While these cards often say no pre-set spending limit, your charges can be limited based on your payment history, income and spending habits.

The other main difference in a charge card is that you are supposed to pay it off each month in full. This is actually the advice for credit cards as well, but for charge cards, it’s always been more of a rule. But even charge cards are starting to go the way of credit cards, as American Express offers a “Pay Over Time” option for certain purchases.

Most of the offers you will receive or apply for will be for credit cards and not charge cards. If you aren’t sure, make sure to read the fine print.

How do I use a credit card?

When using a credit card for the first time, make sure to call the number on the sticker on the front of the card and activate it. Also, make sure to set up an online account with your credit card issuer. Even if you prefer to receive paper statements, having an online account will allow you to view updated information about your account instantly and make changes if needed.

Decide how you plan on using your card: Are you going to use it for everyday purchases everywhere, at just one place or type of place? Once you decide, it’s time to make a purchase.

How do I make a purchase with a credit card?

1. When you get to the checkout, swipe the card or place the chip side into the slot if you have an EMV chip credit card.
2. Follow the prompts on the screen and sign if necessary. Nowadays, most purchases under $25 do not require a signature.
3. Make sure to remove your card when the transaction is completed.

You don’t have to make a note of your spending on the card like you would in an old checkbook, it’s important to be mindful of how much you are spending on your card so you can anticipate the bill at the end of your billing cycle.

How do I pay my credit card bill?

At the end of your billing cycle, you will receive a bill from the credit card company for the amount you put on the card. This is the amount you need to pay back to the bank. By paying off your balance in full, you avoid any interest charges.

However, if you spent more than you can afford to pay off this month, you will carry a balance into the following month. It’s important to pay off more than the minimum balance if you can afford it to avoid paying months or even years of interest fees.

Thanks to the Consumer Financial Protection Bureau, it passed the Credit CARD Act in 2009 which required issuers to make credit card billing statements easier to read. It also includes a section as to how long it would take you to pay off your debt if you only paid the minimum amount (and didn’t charge any more to the card). If you can’t pay off your balance in one month, it’s important to make a plan to pay it off over a few months’ time and not use the card for much in the interim to avoid hefty fees.

How does credit card interest work?

When you can’t pay off your credit card bill each month, you are charged interest on the amount you don’t pay off. The interest rate varies depending on your credit score, whether you got a promotional rate and how often they recalculate the rate if it is a variable card tied to an index. This is your annual percentage rate, or APR.

How much you pay depends on whether the issuer is calculating a daily rate or a monthly rate. If it calculates monthly, then you would take the APR and divide by 12. To figure out how much you will be paying in interest, take the balance that you have leftover, and multiply it by that number. If it is calculating daily, then you will need to instead divide the APR by 365 and then multiply by the number of days in your billing cycle (usually 30 days).

The interest will accrue as long as you carry a balance. Making minimum payments only increases the amount you pay on the money you originally borrowed. It’s important to pay off as much as you can each month.

Credit Card Security

When you use your credit card, it’s important to keep your credit card information safe. Many people wonder about the security of their credit card information this day and age. Hacking credit cards is rampant, especially online. So how do you keep your information secure?

One way that major credit card issuers helped to make your credit cards safer was by implementing EMV technology in credit cards, which stands for Europay, Mastercard and Visa. Also known as chip-and-pin or chip-and-sign technology, the computerized chip embedded in each card is much more difficult to gather information from when skimming a credit card.

Another way to keep your credit card information safe is to avoid saving your credit card information with too many websites. The more sites that have your information, the more vulnerable you are. Thankfully if your card is compromised, you are only liable at most for $50. New technology has also enabled credit card companies to freeze or even deny payments if they suspect suspicious activity on the card outside of your normal spending habits.

It’s important to keep track of your spending not just for budgeting, but also to avoid fraudulent attacks.

This blog was posted from Debt.com,LLC. Check them out at: https://www.debt.com/credit-card-debt/how-do-credit-cards-work/

Education Dive recently did a thorough evaluation of the Colleges that have closed since 2016. Click here to see the full list of nonprofit college closures since 2016.

The last few years have been tumultuous ones for colleges and universities in the U.S. Increased regulation and reduced enrollment continue to be among several factors contributing to the closure or consolidation of thousands of colleges and campuses around the country.

That consolidation also impacted the priorities of ones that remained open. Institutions are adding degrees and certificates in emerging tech fields such as artificial intelligence and cybersecurity, and dropping low-enrollment programs including some in the liberal arts. They’re also looking online, where they can reach more students with targeted subject matter.

That activity is ongoing and more is forecasted in the years ahead.

Small liberal arts colleges fight to stay open

Undergraduate enrollment is on the decline, reducing the tuition revenue many small colleges rely on for lack of a sizable endowment. Experts say the drop-off is due in part to a strong economy and projections of a cyclical decline among the college-age demographic. To help attract more students, colleges are offering them a bigger break on tuition.

A 2016 report from Ernst & Young affiliate the Parthenon Group found 800 colleges vulnerable to “critical strategic challenges” due to their small size, compared to a much smaller share of colleges with enrollments over 1,000. The report lists several risk factors for small colleges amid the current environment of consolidation in higher ed. Those include: enrolling fewer than 1,000 students; the absence of online programs; tuition increases greater than 8% and discounts higher than 35%; and depending on tuition for more than 85% of revenue.

In a review of more than 75 New England colleges enrolling more than 100 students and that had annual expenses of less than $100 million in 2012 and 2016, The Boston Globe found tuition accounted for 70% or more of revenue at 63 institutions. Harvard University, by comparison, got 21% of its revenue from tuition in 2017. Small liberal arts colleges have played an important role in the region’s economy and history, The Globe notes, which is partly why their closures tend to make headlines.

Tight budgets and small endowments factored into announcements by several New England colleges in recent months that they, too, would close. The 2018 closure of Mount Ida College, located near Boston, made headlines yet again this spring when a federal judge dismissed a lawsuit by students alleging officials knew the college was in financial trouble and didn’t inform students of the situation until it abruptly shuttered in May following a failed merger attempt. The judge said the claims didn’t stand up to state law and that paying tuition in exchange for education “does not create a contract” between the institutions and students.

The spate of closures in the region prompted the state higher education board and an accreditor to increase oversight of their financial performance.

Not all colleges faced with the likelihood of closing end up doing so, however. Iowa Wesleyan University raised enough money from alumni and the community to stay open for the spring 2019 semester after officials said it might close due to financial difficulties amid enrollment declines.

Major private liberal arts college closures and consolidation, 2016-present

Institutions included on this list had one or more location close during the period. We did not consider satellite campuses.

Sources: Click here

Public systems consolidate 

Just as small colleges are undergoing major consolidation, so too are some larger university systems. Among the most high profile is the set of mergers underway within the University of Wisconsin System, which will consolidate 13 two-year colleges into seven four-year colleges. It’s the system’s biggest change since it formed in 1971, according to the Wisconsin State-Journal.

The University of Georgia System has been consolidating campuses for several years in a move to reduce operating costs and improve student outcomes. A trio of community colleges in Alabama, too, is consolidating into a single institution with a new name: Coastal Alabama Community College. Connecticut’s community colleges are also eyeing an administrative consolidation.

Slightly fewer than half of college mergers between 2010 and 2017 — roughly 40 across nine or more states — involved at least one public college, according to The Pew Charitable Trusts’ Stateline publication. Colleges face several challenges to successful mergers, however, including the potential for cultural mismatches, higher tuition from reduced local competition and challenges reconciling salaries of two-year college employees with the often-higher rates commanded by those at four-year institutions, Stateline reported.

Consolidation of individual colleges or entire systems is most successful when it’s part of a strategic plan and not a last-ditch effort to save an institution, according to a 2017 report from the research arm of the Teachers Insurance and Annuity Association of America. The report notes potential short-term costs include updating campus buildings, marketing the change and lost efficiencies despite the move to scale, and that gains pay out over the long term.

Major public college closures and consolidation, 2016-present

Institutions included on this list had one or more location close during the period. We did not consider satellite campuses.

Sources: Click here

For-profits look for a way forward

The for-profit sector has been in a downward spiral since 2016, when the Obama administration increased its oversight and stripped federal recognition of the accreditor responsible for two large chains — ITT and Corinthian Colleges — whose collapses drew attention to issues of misrepresentation and poor student outcomes within the sector. That accreditor, ACICS, oversaw about 250 colleges in 2016, a figure that has since shrunk by roughly two-thirds with 61 closing and more than 100 finding new accreditors, according to a July 2018 report by the Center for American Progress.

More than 100 for-profit and career colleges closed between the 2016-17 and 2017-18 academic years alone, while 20 nonprofit colleges shuttered during that period, according to data from the National Center for Education Statistics. And although the number of credentials issued increased 1.2% from 2012-13 to 2016-17, for-profits offered nearly 30% fewer than nonprofits.

The closures that have characterized the sector reared up again in late 2018 and early 2019 with the shuttering of for-profit colleges owned by three college operators: Education Corporation of America, Vatterott Educational Centers and the Dream Center. Combined, tens of thousands of students were affected. The closures’ quick succession drew renewed attention to concerns over how the department and accreditors monitor struggling colleges, and what safeguards protect students when they shut their doors.

Efforts by the U.S. Department of Education under Betsy DeVos to roll back or weaken some of the regulations governing the sector are underway, most recently with its move to permanently reinstate federal recognition of ACICS after DeVos temporarily restored it last year. That could breathe new life into several ACICS institutions that were unable to find new accreditors. DeVos’s Ed Department has also pledged to overhaul two key Obama-era regulations concerning for-profit colleges — borrower defense to repayment and gainful employment — though it missed a key deadline for doing so. It is now in the process of writing new rules for accreditation.

For-profit colleges have been taking advantage of lax oversight from the Ed Department to shed the sector’s tainted reputation and targeted regulation.

The biggest move yet involved the for-profit Kaplan University, whose acquisition by Purdue University was finalized in 2018 to form the framework of the nonprofit’s online education platform. And Grand Canyon University last year won approval to change status from a for-profit to a nonprofit institution, though it will operate under a for-profit parent that handles support services such as technology, marketing and financial aid. Critics say such moves allow for-profits to operate as nonprofits.

Other for-profit college operators are changing tack, dropping their colleges and picking up companies that can round out an educational services portfolio. Among them are Zovio, formerly Bridgepoint Education and parent of Ashford University, as well as Adtalem Global Education, which sold off DeVry University last year as it doubles down on professional education.

Several House Democrats, who won a majority in the 2018 midterm elections, have pledged to step up oversight of the Ed Department’s de-regulatory efforts. Industry observers expect more movement among for-profits through 2020, including nonprofit conversions and acquisitions.