Wednesday, January 18, 2012

Community College Seen as Valuable Long-Term Investment

“As I go around the communities on the Seacoast, I constantly engage with parents who are concerned and seem to be at a stand- still on the topic of how to pay for college, almost accepting their fate without question” explains Will Arvelo, President of Great Bay Community College. “I try to calm them by telling them that they have choices. It’s unfortunate but we have bought into a limited view of higher education where the thought is that our children are best served by attending colleges costing $20,000 to over $50,000 per year. Some feel that the higher the cost of a college education guarantees quality and as well as a pathway to career success” Arvelo continues,” that’s a false notion."

As students begin the college search process and complete applications, and others hear about financial aid offerings and make final selections for their new academic year, the message of community colleges being a smart investment resonates louder. The financial reality for many is the fact that increasing tuition costs and challenging economic times have forced students and parents to re-assess pre-conceived notions of “traditional” pathways to higher education and wonder if the potential of incurring huge student’s loans is prudent. The national loan debt per student currently stands at $25,250 and in New Hampshire it is a staggering $31, 048, the most in the country, and NH has the second-greatest proportion of students with debt, 74 percent. Adding to the burden is the recent state legislation that eliminated state scholarships. According to Arvelo however, growing numbers of college bound students and their parents are now seeing the variety of options and pathways available to those pursuing higher education. “We see this in our open houses as more high school aged students and their parents are making the rounds. We also hear it in our conversations with high school guidance counselors who assist students with the selection process. The value of starting at a community college is at the center of all these conversations.”

Mark Sullivan of Seacoast Asset Management Inc., Wealth Advisors and Certified Estate Planners located at the Pease Tradeport, concurs with President Arvelo and also sees the need for individuals to look at the selection of a college as something that should be part of a long- term strategy tied to financial, academic and career goals. “Education and retirement are intertwined when it comes to building an investment strategy” notes Sullivan who regularly advises clients facing looming college expenses on the dangers of spending retirement funds on their children’s education. “Kids can get student loans, but there’s no such thing as a retirement loan. If you are not self-sustainable in your retirement, your children will have to shoulder the burden.” Sullivan encourages having college age students take ownership of their education. “Helping your kids through college is wonderful and demonstrates that you value their education. Give them enough to help but not enough to lessen their investment in the outcome.”

A strong proponent of community colleges, Sullivan sees them as a particularly good strategy for students facing large student debt. “Community Colleges like Great Bay allow students to not only start off at a low cost but also offer a pathway - they can build career skills or transfer on to a four year college or university. Part-time jobs may be more available as well. And for students who have not decided on a career path or can benefit from smaller class sizes, a community college like Great Bay can be the key to success.” Sullivan continues “A student pursuing an Associate degree at a two year community college may pay about $6,000 per year.

Another student who spends their first two years at a four year university may pay upwards of $25,000. In four years, the student who started at the Community College can have transferred and will still end up holding a degree from that four-year college but with a lot less debt. And that extra money invested into a parent’s 401(k) could make a world of difference down the road.”

“We need to get the message out there that students and, especially, parents have choices” reiterates Arvelo. The effects of high student debt can have financial and quality of life implications for many years to come. Exploring the option of attending a community college for a year or two is a smart choice and a good return on investment.

‘Community colleges have always offered quality education on par with most four-year institutions” Arvelo Continues, citing the fact that there is also a lot of variety in programs and courses. Great Bay offers over thirty degree and certificate programs including specialized programs in recession proof fields such as education, hospitality, nursing, surgical technology and veterinary technology. Certificate programs are also available for those who may want to prepare for direct entry into a career.

“Most community colleges are also closely aligned with four-year institutions allowing for ease of transfer” notes Arvelo. The Community Colleges in the Community College System of New Hampshire including Great Bay are aligned directly with the University System as well as other four-year institutions including Southern New Hampshire University, Franklin Peirce University and others.

“We all want the best for our children” Arvelo continues. “This outcome can still be achieved without putting the parents in the poor house. Everyone needs to think more strategically in relation to the long term implications of escalating college tuitions”.

No comments:

Post a Comment