Money Matters Online

In the last 30 years college costs have increased 284 percent. However, the inflation-adjusted beginning annual earnings for college graduates during that same period of time is basically flat—under $48,000 per year!

This has contributed to the rapidly rising debt burdens that today’s graduates and their families are facing, according to Paul Celuch, cofounder of College Assistance Plus (CAPlus).

The prestige factor

Students who seek a “prestigious” college run an even greater risk of piling up debt. Common wisdom says that the more a student pays for college, the greater the likelihood that he or she will be successful in a career.

But based on his personal experience during 30-plus years as an executive in Fortune 500 companies, Celuch urges students and parents to remove the prestige factor from their college planning.

“I had the opportunity to manage graduates of Yale, Columbia, and Dartmouth,” he says. “Where they graduated from had minimal impact on how they performed. I could not quantify any difference in business ability. In fact, an individual’s interpersonal and communication skills were what counted.”

Worries for newlyweds

In 2004 the average college graduate had almost $27,000 in student loans, with many newlyweds facing combined student debt of two and three times this amount.

This is evidenced in pre-marital counseling sessions conducted by Celuch’s pastor, who said that college loan burdens brought into marriages are the greatest financial challenge he sees among engaged couples.

These burdens cause stress and impacts a newly married couple’s ability to honor God with their finances or honor His call on their lives.

Think like a consumer

Having personally financed a private Christian college education for his two sons, Celuch says he paid about $170,000 total. “If I knew then what I know now about the process, I could have saved $50,000,” he says.

He believes the entire college selection process should be approached like a large consumer purchase—for example, a real estate transaction. Students should understand what schools meet their criteria, evaluate their price range, compare colleges, seek professional counsel, and negotiate the final price.

He cautions families to scripturally “count the cost” and not simply follow the “world’s wisdom” regarding the entire college selection and payment process.

College search tips

Celuch and a friend, Phil James, cofounded CAPlus some three years ago. The organization has grown rapidly, assisting hundreds of students and families nationwide. It currently has franchises in 12 states.

The approach used by these franchises offers a number of lessons for students and families who are seeking the right school.

Understand that college financial aid offers are not simply derived by formula but depend greatly on the student’s desirability.
Evaluate the student and family both academically and financially (unfortunately, high school guidance counselors cannot assist with the financial aspects of the college process).
Search for colleges that fit the profile that the student and family desires. CAPlus uses a proprietary and historical database to determine this quickly. However, families can do this through Internet research.
Seek colleges at which the student and family will receive the best financial aid package, and apply to those colleges.
Evaluate the FAFSA (Free Application for Federal Student Aid) submission, eliminating mistakes and oversights that can negatively impact the financial aid package. The U.S. Department of Education says more than 40 percent of FAFSA submissions contain errors.
Compare and evaluate all financial aid packages from colleges and appeal the aid and loan amounts at the college of your choice.
If student loans are required, evaluate alternative loan sources—matching finances to the ability to repay. Celuch urges families to pray about the debt question. College Assistance Plus recommends that college loans equal no more than 8 percent of gross income per month.
Seek larger financial aid packages in the second and third years of college, provided that the student’s grades are B+ or higher.

Celuch urges students to look outside their comfort zones for a college. Students living in a particular region may be set on attending colleges in that region. But they may not be as attractive to those colleges as they would be to colleges in another part of the country, where administrators are seeking to build a student base that reflects the entire nation.

As a result, those administrators may be willing to pay a premium to get a student from a different region.

Students and families who decide to sign up with CAPlus (www.collegeassistanceplus.com) to help them find a suitable college at a reduced price will pay from $1,500 to $1,900, depending on the particular franchise. Using its database, the organization selects schools that are at the same level academically and scholastically and gets them to compete for the student. It’s fee covers the student until he or she receives a bachelor’s degree.



					August 2007
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		Get a degree, not debt! In the last 30 years college costs have increased 284 percent. However, the inflation-adjusted beginning annual earnings for college graduates during that same period of time is basically flat—under $48,000 per year! This has contributed to the rapidly rising debt burdens that today’s graduates and their families are facing, according to Paul Celuch, cofounder of College Assistance Plus (CAPlus). The prestige factor Students who seek a “prestigious” college run an even greater risk of piling up debt. Common wisdom says that the more a student pays for college, the greater the likelihood that he or she will be successful in a career. But based on his personal experience during 30-plus years as an executive in Fortune 500 companies, Celuch urges students and parents to remove the prestige factor from their college planning. “I had the opportunity to manage graduates of Yale, Columbia, and Dartmouth,” he says. “Where they graduated from had minimal impact on how they performed. I could not quantify any difference in business ability. In fact, an individual’s interpersonal and communication skills were what counted.” Worries for newlyweds In 2004 the average college graduate had almost $27,000 in student loans, with many newlyweds facing combined student debt of two and three times this amount. This is evidenced in pre-marital counseling sessions conducted by Celuch’s pastor, who said that college loan burdens brought into marriages are the greatest financial challenge he sees among engaged couples. These burdens cause stress and impacts a newly married couple’s ability to honor God with their finances or honor His call on their lives. Think like a consumer Having personally financed a private Christian college education for his two sons, Celuch says he paid about $170,000 total. “If I knew then what I know now about the process, I could have saved $50,000,” he says. He believes the entire college selection process should be approached like a large consumer purchase—for example, a real estate transaction. Students should understand what schools meet their criteria, evaluate their price range, compare colleges, seek professional counsel, and negotiate the final price. He cautions families to scripturally “count the cost” and not simply follow the “world’s wisdom” regarding the entire college selection and payment process. College search tips Celuch and a friend, Phil James, cofounded CAPlus some three years ago. The organization has grown rapidly, assisting hundreds of students and families nationwide. It currently has franchises in 12 states. The approach used by these franchises offers a number of lessons for students and families who are seeking the right school. Understand that college financial aid offers are not simply derived by formula but depend greatly on the student’s desirability. Evaluate the student and family both academically and financially (unfortunately, high school guidance counselors cannot assist with the financial aspects of the college process). Search for colleges that fit the profile that the student and family desires. CAPlus uses a proprietary and historical database to determine this quickly. However, families can do this through Internet research. Seek colleges at which the student and family will receive the best financial aid package, and apply to those colleges. Evaluate the FAFSA (Free Application for Federal Student Aid) submission, eliminating mistakes and oversights that can negatively impact the financial aid package. The U.S. Department of Education says more than 40 percent of FAFSA submissions contain errors. Compare and evaluate all financial aid packages from colleges and appeal the aid and loan amounts at the college of your choice. If student loans are required, evaluate alternative loan sources—matching finances to the ability to repay. Celuch urges families to pray about the debt question. College Assistance Plus recommends that college loans equal no more than 8 percent of gross income per month. Seek larger financial aid packages in the second and third years of college, provided that the student’s grades are B+ or higher. Celuch urges students to look outside their comfort zones for a college. Students living in a particular region may be set on attending colleges in that region. But they may not be as attractive to those colleges as they would be to colleges in another part of the country, where administrators are seeking to build a student base that reflects the entire nation. As a result, those administrators may be willing to pay a premium to get a student from a different region. Students and families who decide to sign up with CAPlus (www.collegeassistanceplus.com) to help them find a suitable college at a reduced price will pay from $1,500 to $1,900, depending on the particular franchise. Using its database, the organization selects schools that are at the same level academically and scholastically and gets them to compete for the student. It’s fee covers the student until he or she receives a bachelor’s degree. ©2007 Crown Financial Ministries Privacy Policy