PSAT Guide

The Preliminary SAT®/National Merit Scholarship Qualifying Test (known as PSAT/NMSQT, or simply PSAT) is a co-sponsored program by the College Board and National Merit Scholarship Corporation (NMSC). As its name implies, The PSAT is a standardized test that provides firsthand practice for the SAT Reasoning Test™. It also gives you a chance to enter National Merit Scholarship Corporation (NMSC) scholarship programs.

The PSAT/NMSQT measures three major academic areas, including critical reading skills, math problem-solving skills, and your writing skills. Since you have developed these skills over many years, both in and out of school, there is no way to “cram” for the PSAT. Rather than requiring you to recall specific facts from your high school classes, the test is geared more toward problem solving and analytical thinking.

Why take the PSAT?

There are several reasons you’ll want to take the PSAT, including the following:

- To get an idea of how your performance on a college entrance exam might compare with that of other students also applying to college, as the results give you a percentile ranking based on your score
- To enter you into the pool to be considered for a scholarship from the National Merit Scholarship Corporation
- To give you an idea of your strong points, as well as your weak points and an indication of where you will need to improve your skills for college, and for the actual SAT
- To give you the opportunity to receive information from colleges you’ve chosen on the form that accompanies the test

What's on the Test?

The PSAT is comprised of the following five sections:

Two 25-minute critical reading sections
Two 25-minute math sections
One 30-minute writing skills section

The entire exam is completed within two hours and ten minutes.

About registration and test dates for the PSAT

The PSAT is administered through your local high school and not a test center. Ask your guidance counselor for details about registration and test dates for your school. The fee to take the PSAT in 2006 is $12.00. Scores are later reported to your school and it’s up to your local school district regarding how and when your test results are distributed. Score reports include percentile rankings, which allow you to compare your scores with other students at your grade level who have taken the test.

Student Loan Consolidation

What is Loan Consolidation?

Loan consolidation is a method of combining all of your student loans into a single loan with one lender and one repayment plan. In short, it is a method of refinancing your loan. When you consolidate your student loans, the balances of your existing student loans are paid off, with the total balance rolling over into one consolidated loan owed to your new lender. The interest rate is calculated as the weighted average of all your student loans and the savings to you can be significant.

Why consolidate?

- Make it easy on yourself! Since the result of consolidation is that you now have only one student loan to pay on to one lender, you only have one date to pay and one check to write. This is much easier than making payments several times per month to several different lenders—the convenience is well worth it.
- Other student loan consolidation benefits that lenders must give you by law:

- Fixed interest rates
- No fees
- No credit checks
- No prepayment penalties
- Rates that are 0.6% lower if you consolidate while in your grace period

When not to consolidate

If you are close to paying off your existing student loans, it is probably not a good idea to consolidate. If you are close to paying your loan off and run into a hardship, you’re better off to look into deferring your loans.

Finding the best Rate

When looking for the best rate on your student loan consolidation, keep the following in mind:

- If you want to pay your loan off early look for a principal reduction
- If you want 20 years (or more) to pay off your loan, look for an interest rate reduction
- Because nonprofit lenders have a lower cost to operate, they pass savings on to you. For that reason, nonprofit lenders are a good source for student loan consolidation.

Value of College

Since the costs of higher education are higher than ever before, you may be questioning whether or not getting a college degree is worth it. The first few years may be difficult, if you have friends that start working right out of high school. While they’re earning money and buying clothes and cars, you are likely going into debt for your education and money may be scarce. But rest assured, hang in there and you will find out that it’s definitely worth it!

You’ve heard it before—generally speaking, the higher the education, the higher the salary, and the better the career options and security. But what about the facts to back that up? If you’re into numbers, you’ll appreciate these:

According to a recent report from the U.S. Census Bureau, the median annual income for employees with a high school diploma was only $27,915, versus $51,206 for those with bachelor’s degrees. Individuals who earn a master’s or doctoral degree received an annual average of $74,602 or more. According to those figures, over a lifetime, the gap in earning potential between a typical high school grad and degreed professional exceeds one million dollars.

By all accounts, the financial investment made in your education is well worth the return on that investment. But that’s the tangible benefit. A report published by the Institute for Higher Education Policy cited the individual benefits that college graduates enjoy, including higher levels of saving, increased personal/professional mobility, improved quality of life for their offspring, better consumer decision making, and more hobbies and leisure activities. Additionally, college attendance has been shown to "decrease prejudice, enhance knowledge of world affairs and enhance social status" while increasing economic and job security for those who earn bachelor's degrees, according to the same report.

A college education is one of the few purchases you can make that actually appreciates in value.

Financial picture aside, there is so much more that the college experience can give you. During your college years, you will “find yourself”, live on your own for the first time, have opportunities to try new things for the first time, and make friends for life. You have no way of knowing this now, but when you look back on your college career, it may very well be the best years of your life. You can’t put a price on that.

 

About Student Loans

Since the cost of college tuition is at an all-time high, the majority of college students will be seeking student loans. There are several federally funded loan programs, making it easy to select a loan that’s right for you.

What makes student loans different from other loans?

- The one thing that almost all student loans have in common is that they are interest-free as long as you remain a full-time student.
- The interest usually kicks in after some grace period once you either graduate or leave school.
- The loan payments may be deferred if you return to school (either full or part-time) or if you enter the Armed Services

Following are the features of the top federally funded student loan programs:

1. Stafford Loan

Stafford Loans are for undergraduate or graduate and professional students made through one of two U.S. Department of Education programs:

- William D. Ford Federal Direct Student Loan Program—referred to as Direct Stafford Loans or Direct Loans
- You must be attending school at least halftime to be eligible for a Stafford Loan.
- The lender is the U.S. Department of Education and that’s who you repay

Federal Family Education Loan (FFEL) Program—referred to as FFEL Stafford Loans or Federal Stafford Loans
- You must be attending school at least halftime to be eligible for a Stafford Loan.
- Financial need is not a requirement

2. Perkins Loan

Federal Perkins Loans are made through participating schools to undergraduate and graduate/professional students. Here is what you should know about Perkins Loans:

- Half-time enrollment is not a requirement to receive aid from the Federal Perkins Loan programs.
- Award amounts: Undergraduate—up to $4,000 a year (maximum of $20,000 as an undergraduate).
- Actual amount awarded to you depends upon financial need, amount of other aid, availability of funds at school
- Your school is the actual lender and will either pay you directly (usually by check) or credit your account. Generally, you'll receive the loan in at least two payments during the school year

3. PLUS Loan

PLUS Loans are loans parents can take out for their dependent undergraduate children and are made through either the Direct Loan or the FFEL program mentioned above. What is available to you depends upon the school you choose. Most colleges participate in either the Direct Loan or the FFEL program, but not both. Here’s what you should know:

- This loan is set up for the parents of undergraduate students enrolled at least half time
- Parents must not have bad credit history
- The lender is a bank or credit union

4. Private Loan/Personal Loan

When opting for a private loan, choosing the right lender becomes extremely important. The wrong decision can cost you significant amounts of money in the long run. Doing your homework on choosing a lender will save you money when it comes time to repay your loan.

Adult Education

Considering returning to college, but afraid you’re too old? Don’t let your age hold you back. Now could be the perfect time to go back to school and complete the degree you started oh-so-long ago, or get a degree in a totally different field to work on your second career. As a matter of fact, there are now so many adults returning to college, you will be in majority of students taking night and weekend classes. The Institute for Higher Education Policy reports that students aged 40 and older increased by 235 percent from 1970 to 1993.

Face it, after many years of working in the same field since you’ve graduated from college, you may over time find yourself drawn to other lines of work. If you are employed, now may be a great time to take advantage of your employer’s tuition reimbursement benefit and take a few classes to explore new areas, or obtain a degree that complements your current role.

Now that the baby-boomers are starting to retire, new jobs are opening up. Realistically, since we are living longer, and “50 is the new 30”, more and more non-traditional students are returning to the classroom. In fact, many major universities have satellite campuses to accommodate professionals and adult students. The scheduling of classes is usually in the evenings or on weekends in order to accommodate work schedules. Many accredited universities also have distance learning classes, so you can work at your own pace and independently, at your convenience. Educational institutions are making it very easy to re-enter the college scene and so you have more advantages now than ever, including on-site daycare, online assistance, flexible course scheduling, and compressed or accelerated semesters.

There is also something to be said for life experience, and more and more schools are also giving you credit for life and work experience—literally. If you contact local colleges regarding admission requirements you should also make an appointment to discuss life and work experience credits and how to substantiate your experience and translate that experience into credit-hours. You may be much closer than you think to getting that degree after all!

As an “experienced” student, you have the opportunity to be a better student than you were when you were eighteen years old. You’ve been in the workforce or you’ve run a household or you’ve raised kids. You know yourself and this is a great opportunity to find out more about yourself. You know your likes and dislikes. You can relate to various scenarios that will be presented in the classroom, because you’ve had years of life experiences to draw upon.

Whether you decide to take a class or two or pursue a second or advanced degree, it’s never too late!

Selecting an Online University

Online universities now have credibility that they didn’t have ten years ago. With the advent of more and more of our daily living taking place via the Internet, an online education has now become much more established and accepted. So, how does one go about selecting an online university?

Regardless of the school you choose, accreditation is important and should be part of your selection criteria when shopping for an online education.

What is accreditation?

In your search for an online university, you should look for schools that are accredited. College accreditation is a formal recognition, or a guarantee that a school and its curriculum adheres to standards and provides quality education. Some universities are accredited and some are not. Some colleges only have certain academic programs that are accredited. Also be aware that simply because a “brick and mortar” university is accredited does not mean that its online programs are accredited. This is something that you’ll want to verify. Your online education should be every bit as impressive as a traditional education when a potential employer reviews your resume.

Why is accreditation important?

Since accreditation lends to the overall quality of an education, it is particularly important when receiving an online education. The largest factor is potential employers. Technology has come a long way and you can certainly receive a quality education online. However, there are still many employers that may not be as receptive and open-minded. You will especially see this mindset in industries that lag in technology. Attending an online program that is accredited will help exemplify the quality of the education you receive.

Another reason accreditation is important, is that it makes transferring course credits much easier. If you do ever intend to transfer to another school for any reason and your coursework is from an accredited online university, chances are you will not have to retake courses.

One more good reason to find an accredited online university is that employers who provide tuition reimbursement may not reimburse you if the classes are not taken at an accredited school.

Other factors to consider

While accreditation is perhaps the most important factor to consider when selecting an online university, here are some others:

- Are the credits you receive online identical to the ones you’d receive in the traditional classroom?
- Is the courseware delivery specifically designed for online learning?
- How do you, as the student, interact with faculty and other students in your class?
- As an online student, do you have the same access to student services that campus students have?
- Is technical support available, in the event you have technical issues that impact your ability to access online resources?
- How long has the institution offered online degree programs?

Your path to a degree will be challenging and rewarding at the same time. When selecting any university, you must do your homework and make sure your school of choice falls within your criteria for such things as cost of tuition, program of your chosen field, and quality education and reputation. It’s important to realize that selecting an online university creates additional factors to consider. You’ll want to find a program that is right for you, accredited, established with a good track record and with previous graduates from the online degree program, current technology to enable e-learning and facilitate online communities for your classes, and that provides you with technical support if you need it.