Mind the Gap

by Ron Daly 

If you've ever been to London, you are familiar with this phrase that's meant to warn travelers on the Underground. It's a simpler, smarter way to say "don't fall into the crack between the train and the platform". It's become part of the culture there. 

There's a gap here in the states that needs minding, too. It sits between colleges and affordability and it was part of the carpool discussion this morning. The stock market has shrunk about thirty percent. The housing market has shrunk about thirty percent. People have lost/are losing money with every passing week and the value of a dollar is waning. Despite all of this, college costs are increasing year-to-year? According to the people at CU Student Choice (click here), the average gap between federal aid limits and the cost of public school education for four years is $29,356. For private school, $104,228. YIKES!

Minding the "gap" is what the credit union system is all about and we applaud those helping members fulfill their dreams or those of their children. Credit unions and CUSOs are doing a great job of filling the void left by the banks that can't figure out a way to apply their TARP money to help the consumer (sorry, but you KNEW I was going to go there) and I want to highlight the efforts of a few folks who are trying to make college more affordable in the credit union system (and there are plenty more)

Northwest Federal Credit Union

 

Northwest Federal Credit Union hosted a well-attended seminar yesterday called "Covering the College Savings Gap". They offered $100 in "book money" as a door prize and walked the attendees through the pitfalls of planning (or not planning) for higher education. Click here for more about NWFCU's student programs. Amy Richards, who coordinated the event for NWFCU, called the event a success and reports that they audience was mostly parents looking to the CU for options. 

CU Student Choice

CU Student Choice is dedicated to helping credit unions bring in younger members who need student loans. CUs from across the country partner with Student Choice to make new members and draw in interested borrowers. 

Student CU Connect

We don't have a logo or a set of links for Student CU Connect, but they're offering loans to students who are going into technical higher education, like Information Technology schools. And why not? That's expensive, too! Read about them in the CU Journal. 

Back to the Rant

Is a college degree REALLY worth ~$130,000? When was the last time you were asked where your degree was from? Maybe because I'm putting my two daughters through college these days and it's pricey. Maybe it's because my youngest daughter is seven years old and the thought of what it will be for her makes me queasy. I'd think that with the coming decline in college age children, the economic downturn and people from around the country losing their jobs, savings and lending getting scarce, logically there should be some downward pressure on higher education costs. 

As a father of college students, I just wish the college gap was contracting as fast as my investments, 401k and home value.

Comments and other examples of the CU difference are welcome, as always.