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by Emily

New college grads may face an especially tough time due to the recession.  The growth in anticipated new hires, which is measured twice a year by The National Association of Colleges and Employers, has been slowing since it reached a high in spring 2007, falling almost flat in the fall.  The numbers for spring 2009 show that for the first time in years, businesses actually anticipate hiring fewer college graduates this year than last--22 percent fewer, in fact.  According to The Boston Globe, the business and finance sectors have an even bleaker outlook, as does the northeastern region of the United States.

With this dim hiring picture in mind, soon-to-be college graduates are looking at alternatives to the traditional workforce. Additional education, teaching fellowship programs, and volunteer work are all proving popular. If you're a college student staring graduation in the face, keep in mind the increased competition and start researching and applying sooner, rather than later.

Graduate programs, including ones offered by business schools, are seeing increased enrollment as many students choose to either delay their entry into the workforce or push up their long-term plans to attend graduate school.  Graduate students can potentially land full-tuition fellowships or assistantships, as well as generous scholarship awards.  Many graduate degrees can help recipients become more competitive when they do enter the workforce, even if the economy does not recover substantially.

Similarly, teacher certification programs, such as the popular Teach for America, are seeing an increase in applicants.  These programs offer a stipend, as well as teacher certification, and in some cases a master's degree in education, in exchange for a commitment of one or two years teaching in a low-income school or a high-need subject.  Other programs exist with similar benefits, including teaching fellowships in several major cities such as New York and Chicago.  College students or recent grads who want to teach but don't want to pay for more school may want to consider these options.

Other volunteer programs, like AmeriCorps and the Peace Corps, also are seeing more applicants.  Such programs often come with a stipend or living allowance, as well as student loan deferments or even loan cancelation or repayment benefits.  Students can also participate in many of these programs while still in college or while pursuing graduate degrees.  If you're interested in an alternative to the post-collegiate rat race, there's no time like the present to start considering your options.

by Agnes Jasinski

Many students are preparing for the last few weeks of finals, completing projects and cracking books open for a week of finals. Students at Southern Catholic College in Georgia, however, are packing up their bags, potentially for good. Tomorrow is the last day of the semester at the college, nearly a month ahead of schedule due to budget woes that made it impossible for the school to maintain its schedule of courses through mid-May, the traditional end of the spring semester.

The decision was announced abruptly earlier this month by Rev. Shawn Aaron, the school's president and a priest of the Legionaries of Christ, via email to faculty, staff, and the school's nearly 200 students. Students will receive full credit for the entire semester, and graduating students will receive their diplomas in an upcoming simple ceremony at the college. In the email, Father Aaron gave no indication as to whether the school would reopen at all, or whether this was a temporary budget fix. According to an article in The Catholic Review, the school would need $6 million to reopen by June.

The school was founded in 2000, but has had some financial trouble since its first years of operation. According to The Catholic Review, the school had gotten into the bad habit of spending more than it took in; in 2007, the college spent $2.5 million more than it should have, and only continued the trend in the years that followed. The formerly privately-run institution was transferred to the Legionaries of Christ in the fall of 2009, but the congregation was unable to financially support the school. In addition to overspending, the students at the school who were on full scholarships outnumbered those who paid full tuition, room and board, which runs more than $24,500 a year.

Students didn't see the early closure coming, according to the article. They went to social networking sites when they heard the news, learning mostly through hearsay why the school would be closing so suddenly. Their worries include how their grades will be calculated based on the shortened semester, and whether their credits will transfer over to other institutions if the school closes for good. According to The Catholic Review, the school's president waited so long to notify the student body because the school board was waiting to hear back about a last-minute plea to a benefactor of the college. That plea did not lead to any last-minute funding, so the decision was made to close the school when it was apparent the school was unable to pay its faculty and staff beyond April 15.

by Agnes Jasinski

It’s coming to the end of final exams at California State University in Los Angeles, but you won’t see students there studying at the library well into the night. You’ll see them in the make-shift “People’s Library,” an open air study spot outside the school’s main library set up by students looking for an answer to shortened library hours.

The “People’s Library” opened on June 1 as a response from students dealing with state budget cuts that have forced the college to cut library hours. The school’s library now closes at 8 p.m. each night, while the students’ version operates through midnight. According to an article today in the Los Angeles Times, the students have been using donated tables and chairs, and the campus’ lighting and electrical equipment. Free coffee is brewed to fuel the study sessions, and students have access to the Internet, a copier and a printer. According to the article, the students’ “library” has the support of administrators, despite initial resistance and concerns. (Administrators helped the students set up their electrical hook-ups safely.)

The state university system’s library budget was cut 20 percent overall this fiscal year. At Cal State L.A., student library assistant positions were cut from 19 to 11, and subscriptions to more than 400 print journals and 10 databases were canceled, potentially hampering students’ research capabilities. Although library attendance has decreased across the board, perhaps due to advances in technology and increases in access to the Internet thanks to wireless networks, it remains both a communal space and option for those who don’t have access to online tools at home or in the dorm, or who want a quiet place to study. According to the article, administrators will reconsider the main library’s operating hours for next year, although budget shortfalls will continue to dramatically affect the state’s university system.

Across California, institutions of higher education have been looking for ways to cope with millions of dollars in cuts in the state budget. At the University of California, a wait list was used for the first time in the school system’s history to allow the school to be more flexible in the number of students it enrolls for fall 2010. There and elsewhere, major school decisions are dependent upon what happens with the state budget.

by Agnes Jasinski

As if you didn’t already have a number of reasons why you should go to college, a report being released today projects that the United States will face a shortage of college-educated workers by 2018.

The report comes from the Georgetown University Center on Education and the Workforce, and describes a shift since the 1970s on the kind of training required to land jobs in sectors that will continue to see rapid growth as the economy improves. An article on the report in Inside Higher Ed today analyzes the specifics of the report:

• By 2018, the economy will face a shortage of 3 million workers with associate’s degrees or higher and a shortage of 4.7 million workers with postsecondary certificates. (By that time, there will be 22 million jobs for new workers with college degrees.)
• In 1973, 28 percent of jobs required post-secondary education, compared to 63 percent projected by 2018.
• In 1970, 26 percent of the middle class had some post-secondary education, compared to 61 percent today.
• In 1970, 44 percent of the upper class had some postsecondary education, compared to 81 percent today.

While the data certainly suggests going to college is a good game plan for those worried about their job prospects, it may also mean a shift for colleges to offer more programs in the fields that will see much of the projected growth. According to the report, those industries include health-care, government, private and public education, and the business and financial services. Jobs in the technology sector may taper off, as technological advancements make it more possible for companies to do the work required with fewer employees.

Inside Higher Ed suggests that the data could have an impact on high school students who do not have a clear vision of what they’d like their future careers to be. Some may opt for a more career-oriented program at a two-year college if there is a promise of employment on the horizon. Some schools already offer students incentive programs if they enter into certain majors. At Lansing Community College, students are guaranteed jobs after they complete a program at the school that focuses on training in high-demand fields.

by Agnes Jasinski

As graduation season begins on college campuses across the country, many of you are well-prepared and excited for this new chapter in your lives. You have jobs or internships lined up in your fields of study, or have travel plans set for the summer before you’re officially labeled “adults.” For many others, however, the months after graduation are more nerve-wracking than anything else. So we’ve come up with a series of posts this week that will hopefully ease your minds a bit, and perhaps more importantly, help you see that you’re not alone.

Before we get into ideas on what you could do with your life post-graduation if you haven’t yet nailed down a job or other plans, we think it’s important to address the anxiety many graduates feel when their college experience is coming to an end. You probably became used to the freedom you first felt as a freshman on a new campus with endless possibilities. Now, as you’re watching your senior year come to end, you’re probably faced with endless questions instead from family and friends: "Have you found a job?" "What are your plans?" "Where will you live?"

First of all, take a step back and breathe. Although the economy has yet to rebound completely, there are thousands of others in the same boat as you, and it’s fine to take some time to be indecisive about what you want to do next. Once you’ve done that, you need to prepare to confront your future and do a bit of self-reflection. Graduating from college can be overwhelming. Many college students end up in careers unrelated to their majors, or take time off after college (if such an option is financially feasible) to figure out what it is they really want to do, via travel, volunteerism, or internships in fields they may be interested in exploring further.

Speaking of finances, much of the anxiety felt by recent graduates comes from the doom and gloom that comes with budgeting once you’re out of college. You no longer have your financial aid package or the option to increase your student loan totals (a bad idea, by the way, that should only be considered as a last resort) as a cushion, although there are things you can do to ease the burden a little bit right after graduation. If you’re unemployed, defer your student loans. You don’t want to face fees and interest charges for being unable to make payments on your loans and hurt your credit score in the process. If you have any prospects for part-time work or full-time temporary work, start saving. Finding a job isn’t a science, and sometimes it does take a while to find that perfect fit.

Tomorrow we’ll talk more about what you can do in the short-term as a recent graduate, because you really do have quite a few options. Were you floundering until you came across that perfect post-graduation plan? We'd love to hear your stories!

This is the first post in a three-part series on dealing with that “What’s next?” feeling college students may get post-graduation. Return to the Scholarships.com blog tomorrow for a look at popular short-term plans for recent college graduates, especially if your upcoming summer is looking fairly open!

by Emily

Colleges across the country have had to make sweeping budget cuts to cope with substantial endowment losses and reductions in state funding sustained as a result of the recession. In many places, these cuts have led to fewer instructors, larger class sizes, and fewer course offerings. In addition to potentially reducing the quality of instruction students receive (even as they see their tuition continuing to rise dramatically), these factors are also making it harder for students to graduate on time.

An Associated Press article details the struggles some students at state colleges are facing trying to finish their educational careers. Despite the limits placed on freshmen and transfer enrollment this year, upperclassmen in California, as well as other states facing large-scale financial difficulties, are finding it nearly impossible to get into the classes they need to complete their plans of study.

Some students are able to only enroll part-time, jeopardizing their financial aid eligibility, while others are spending money on classes that basically amount to filler, at least as far as education requirements are concerned. Still other students may be choosing to take a semester or more off from school when faced with the prospect of being unable to enroll in any of the classes they want or need to take. Even more frustrating for students who need to take specific courses to graduate is that along with overstuffing sections of popular classes, universities are more likely to cut sections and courses (and even departments) with low enrollments to conserve resources, potentially leaving even more students high and dry.

Aside from analyzing every possible approach to fulfilling their degree requirements; petitioning professors, colleges, and department heads to grant exceptions in the wake of overflowing classrooms; and being sure to register as early as possible for next semester, there are few other options available to undergraduate students caught in this situation. However, students who are in the midst of their college searches can take steps to protect themselves against canceled classes and prolonged stays in college. A growing number of schools offer four-year graduation guarantees and accelerated degree programs, allowing students who can make the commitments required to avoid frustrations and minimize their time to degree.

by Emily

A little over a week after announcing his plans to gear up for battle with student lenders over the future of the Federal Family Education Loan Program, President Obama has begun calling in the troops.  An e-mail message sent to young Obama supporters by the Democratic National Committee is urging students to speak up in favor of the President's proposal to switch all federal lending to the Direct Loans program and to use the savings to expand Federal Pell Grants.

Students have been asked to call, write, or e-mail their Representatives and Senators to let them know what they think of the proposal to eliminate FFELP for Stafford Loans and PLUS Loans.  The text of the e-mail, as reported by The Chronicle of Higher Education, urges students to stand against "special interests" and to help "fix a broken system."  Rhetoric on the other side has focused primarily on preserving jobs and preserving choice (technically, the choice is primarily left to schools, not students, as students aren't able to choose freely between DL and FFELP until they graduate and consider consolidation loans).

Regardless of whether you favor or oppose this plan, now is a good time to let your people in Congress know how you feel, since changes in federal student financial aid are likely to affect you directly.  So, what do you think?  What changes, if any, should Congress make to student loans? Do you plan on writing to Congress about this issue?

by Emily

In the past few weeks, at least nine universities have received donations of at least $1 million, with instructions that the money be used primarily to fund scholarship programs. The donations, which total at least $45 million, have been given to colleges across the country since March, according to the Associated Press.

While anonymous donations happen from time to time, this circumstance is still highly unusual, since no college officials know who provided the gifts.  Typically, the college knows the donor's identity but agrees not to reveal it.  However, schools benefiting from this wave of anonymous donations have been contacted by representatives of banks or law firms, rather than by the donors themselves, and have been asked not to attempt to ascertain the donor's identity.

The donations have largely been met with gratitude. They are well-timed, given the state of the economy and many colleges' current attempts to meet the increased financial need of students.  Families are experiencing greater need for financial aid, and colleges' endowment funds, including endowed scholarships, have lost large amounts of money, giving them fewer resources to use.

For students at these colleges, as well as other schools that have recently benefited from generous donations, the scholarship opportunities they provide could mean the difference between attending college and staying home.  However, these anonymous donors are not the only people out there dedicated to making a college education possible for students in tough times.  You can do a free scholarship search for information on more scholarship awards.

by Emily

Yesterday, President Obama signed into law a bill to expand Americorps, a national service program that provides small stipends to people of all ages engaged in volunteer work throughout the country.  The act, officially known as the Edward M. Kennedy Serve America Act, paves the way for Americorps to grow in size from its present 75,000 volunteers to as many as 250,000 volunteers by 2017.

In addition to creating more volunteer positions, the Serve America Act will also increase the education stipend for volunteers to $5,350, the same amount as Federal Pell Grants.  This will enable more recent graduates and people currently attending college to participate in Americorps programs, which are becoming an increasingly popular alternative to employment in the current economy.

The national service bill, sponsored by Senator Kennedy, quickly made its way through both houses of Congress, receiving bipartisan support, as well as a ringing endorsement from President Obama, who has long been a proponent of community service.  Congress still needs to find funding for Americorps to begin to expand, but a provision to provide an immediate 25% increase in funding to the program was included in Obama's 2010 budget proposal.

Has the recession had a negative impact on families' view of college? Record college enrollment in 2009 suggests no, and a new survey of parents backs that up, as well. Oppenheimer Funds conducted a survey asking parents of pre-college-age children whether they view college as important for their kids and how they plan to pay for school and recently shared the results in The Chronicle of Higher Education. The survey focused especially on saving for college-not surprising, since Oppenheimer Funds is heavily involved in college savings plans.  The more than 1,000 parents overwhelmingly responded that they view attending college as a must for their children. Eight out of ten say it's very important for their children to earn a college degree, despite barely half of respondents saying their own parents wanted the same for them. An even larger proportion, 90 percent, stated the belief that sending their children to college was an essential part of the "American dream." Hispanic families had an even more positive response, with 95 percent regarding college as essential for their children's success.  Most families still believe that college is within reach for students who want to attend, even after the effects of skyrocketing college costs and the economic downturn. However, more than half believe that it's less accessible than it used to be, and nearly two-thirds expressed concerns about the pace of tuition increases eventually pricing out many families.  In the meantime, the parents surveyed planned largely to pay tuition themselves, often with the aid of scholarship money. While over 60 percent had less than $10,000 tucked into a 529 plan or similar college savings account at the time, 80 percent of parents said they hoped to cover at least half of their children's college costs. Parents also overwhelmingly wanted to avoid debt for their children, with half hoping their kids could take out less than $10,000 in student loans.

But college savings accounts took a sharp downward turn in the recession and while private loan borrowing is down, overall student loan debt has largely been on the rise (the average amount borrowed by college graduates currently sits at over $20,000). Given this, parents of high school students, as well as the students themselves, may want to focus their efforts on finding scholarships. Our free college scholarship search can help-parents or students can complete a profile to learn about scholarship opportunities they can apply for early or late in high school.