Breaking the Small Business Code

Response to the Market Meltdown - A Person POV

    

         In the last 4 hours I have received so many calls and eMails on the meltdown and cries for help from college-bound families that  I have lost count!  So I wanted to put up my two cents worth from my personal point of view as a college funding expert, a grandmother of two, and as a business owner.

                       This is an OPEN LETTER TO ALL POLITICIANS & THE MEDIA

    You work for me.  I vote, I pay taxes, and I love my country.  I want you all to stop and listen to me - the voter - for a change.  I didn't rip off anyone, I don't have a golden parachute and I didn't dump bad home loans on Wall Street.  Yet I and my grandsons are the one who will ultimately pay for your programs, cushy pensions (which are not in the market) and for your blame game politics.

    First, stop all the finger pointing.  I DON'T CARE who created the mess.  Stop bickering, grab a mop and clean it up.

     Geewhiz, I feel like I am listening to a bunch of 5 year olds who think it's more important to blame the other person for playing with matches than stop and fight the fire.  I want to grab both sides by the collar and give them a time out.  WHERE ARE THE GROWN-UPs in all this? Talk to me like I have a brain.  Stop trying to do 10-second platitude filled soundbites.

    And oh by the way Ms Pelosi, don't insult the other guy when you need him to help solve the problem.  Excoriating the current administration and the Republicans as being to blame  (true or not) from the floor of the House and then expecting them to support your bill is NOT good leadership. We need people working together and blame (coming from both sides) is not good team building tactics. 

    Second, EVERYONE stop saying it was the "other guys" and explain exactly WHAT HAPPENED.  Today's captain of the ship may NOT be responsible for the ship sinking if it was badly built and maintained by the previous captains!! Let's have a REAL examination of why it sunk so it DOESN'T HAPPEN AGAIN!!!!   I'm an engineer and politics have no place in examining a failure if you want to learn from it and keep it from happening again. So . . . 

Shut up about who's to blame and start bailing together  or we all go down together!

    Lastly, vague generalities and blame makes me think my elected officials on both sides don't KNOW what happened or why.   As a responsible citizen, I have done my homework.  I did the research, looked at the graphs and even I can see what happened when.  WHY CAN'T YOU?!!!

How can  I trust whatever plan you have to fix things IF you apparently don't know what you are fixing!!

      I don't want platitudes and slogans -- I want facts and concrete answers that lead to reasonable and clear fixes. I don't want pages and pages of special deals and carve-outs and attached amendments.  I want to be able to CLEARLY see what you are doing, what is supposed to happen and see accountability ON YOUR SHOULDERS TOO!

     And oh by the way, all you "reporters", start REPORTING!!  I don't want you to be a commentator who is parsing it for me into little bite-sized pieces like I was a child.   Don't disguise the news wyhen it is clearly editorial opinion.  WHERE is the neutral research about WHAT happened, the WHY and the mudraking for players on BOTH sides of the aisle?  You are sooooooo transparently biased I can't trust you any more.  I want facts not thinly disguised and sneering interviews.

      I want someone to step up and say we had a good idea in making housing more affordable but it had unforeseen consequences because we measured success wrong.  We had a good idea but making lenders lend when they shouldn't for political reasons backfired.  Our programs encouraged people to cook books and dump risky debt.  I want to hear you say it is not good policy to do the same old junk bills filled with special pork and singling out those who only took advantage of what you created.

   Stop looking for whipping boys ("the rich"), stop pointing fingers ("them"), and start giving me answers.  THEN I MIGHT want to elect/re-elect you to fix the problem no matter what party you're from.  I want leadership NOT politics.  I want answers, not slogans.  I want accountability, not blank checks. I am not allowed to spend more than I make, not allowed to dump my bad debts and not allowed to stay in business by blaming the other guys for my mistakes!

   So get together, stop name calling and get to work on something that I can understand and trust in. Let me know what you did, why you did it and TAKE RESPONSIBILITY if the fix doesn't work.

   That's my two cents . . .   

The NEW Scholarship Scam

     Just got a nice eMail from a mom who had purchased my Linda P. Taylor's Insider Secrets to Scoring Scholarships eBook and video system.  She said was SHOCKED to learn about the "dirty little secret" about internet scholarships "harvesting" data and reselling it!  She had always thought the scams cost money and didn't realize a free site could be a problem!  She had also gone to my blog posting about about hidden traps and was really concerned about her son searching for money they desperately needed for college.

     I shared with her (and want to share with blog readers) how to fight these NEW wolves in scholarship sheep's clothing!  As the market melts down, more and more families are going to the internet looking for scholarships.  And I want you to be prepared for the good, the bad and the ugly of FREE scholarship search sites!

    In the good old days, a scammer would send you a letter and promised you a list of scholarships and maybe financial aid for a small fee.  They "covered" themselves by sending you a virtually useless printed list of scholarships and maybe some free information on how to find and write letters.  Most of those wolves were pretty much run out of town by  FTC enforcement and by the proliferation of free internet search sites that made them irrelevant. 

    But the wolves didn't go away.  The word "scholarships" is just too juicy as a marketing tool to give up.  So they moved to the internet and changed their focus.

   What I call the "new wolves" are companies that offer a scholarship or may offer nothing from their pockets but are aggregating everyone else's scholarships into their website.  The applicants are asked for large amounts of data so their "search" can be more successful.  But what the students don't know is their INFORMATION IS BEING SOLD over and over again to anyone and everyone who pays for it if they don't actively opt-out.

    Like the old wolves, the new ones cover themselves legally.  They will ask you to opt-out of "third party offers".  But most ask applicants to unclick  a box that says you have read the Terms and Conditions or the Privacy Statement.  They are NOT obvious in what they are going to do with your data if the box stays clicked.  I know they will claim it is your responsibility to read these pages and I agree BUT . . .

    I DO read these as part of my research on safe sites for my clients like the College Leadership Foundation's College eCoaching Program.  Most are in 9-point font, legalese and when they reveal the truth about what they do with your information, it's 5 or six mind-numbing paragraphs down and is fuzzy-wuzzy about what you will allow them to do by not opting-out.

     So how do you know the good ones from the bad ones?  READ the Terms & Conditions and/or Privacy statements before you hit enter!  Sorry, you do need to do that to protect yourselves.

    So you can know what to do, here is an example of a GOOD one from www.CollegeSurfing.com's Privacy section.  It is in PLAIN English and clear.  I have added the color for emphasis.

"As a general practice, we do not sell your personally identifiable information to third parties or mass marketers. However, on particular pages where we ask for your personally identifiable information, we may explicitly tell you that the data we are collecting on that page will be provided to third parties, in which case those disclosures shall override anything to the contrary in this policy. We would also have the right to sell this information as part of a sale of all or substantially all of our assets.  [It's that phrase "explicity tell you" that makes them good guys in my opinion! LPT].      

In some situations, we provide your personally identifiable information to third-party service providers to enhance or expand the functionality available to you as a user of the Site, but this will only be done when you specifically ask us to by responding to a survey."

 Here is an example of one of the a quasi-wolf (in my opinion), www.Scholarships.com. 

"We will not share, sell, rent or otherwise transfer this information without the user's permission, and then only in accordance with the terms set forth in this Privacy Policy. Our website provides users the opportunity to unsubscribe (opt-out) from receiving email messages from Scholarships.com and its marketing partners or from having their information shared with our marketing partners. [you have to opt-out - LPT]"

     Is Scholarships.com actually providing scholarship searches?  Yes.  Are they a scam? No.  Are they doing anything illegal? No.  I don't really have a problem with Scholarships.com selling the names and related information.  What I resent is the fact they are not clear about how they "get paid" for offering all these information to applicants for free!  I get marketing magazines as part of my job to help clients with their marketing needs.  One of them recently featured a FULL PAGE ad that specifically pointed out to interested list buyers all the data they get from the opt-in Scholarships.com eMail list! 

    And here is the site for that I feel is the worst example of the marketing wolves: ScholarshipExperts.  Here's what it says in their Terms & Conditions in small buried print (I added color and bolding for emphasis): 

"When You submit a profile or application, ScholarshipExperts.com may access, store, and use all information included therein for any purpose. Additionally, if You provide permission to do so, ScholarshipExperts.com may sell, share, distribute, or disclose to third parties all information You provide, including scholarship providers, educational institutions and others."

    So how do you protect yourselves?  Follow some of the suggestions in my Scoring Scholarship system!  Get a new eMail address JUST for scholarship searches.  NEVER give out personal information like Social Security numbers or parent income.  And think twice about giving them your telephone numbers.  AND PLEASE READ THE TERMS & CONDITIONS and PRIVACY STATEMENTS!  And when you see the words 'may sell or share', avoid that site!

    Anyone seen their SPAM or junk mail go up after searching for scholarships online?  I would like to backtrack with you how that may have happened.  Send me a comment on this blog OR go to my website and contact me at www.LindaPTaylor.com.

Paying for College When Your 401K becomes a 1K

     Good morning.  You just woke up to yet another bank being bought out, news of the bailout plan being used as a political football, your house value (and your home equity) has fallen another 10%, and your 401k has been reduced to a 1k.   And tonight's dinner table conversation will be about which $20,000 to $50,000 a year college your high school senior should be applying to. 

     Welcome to the new American nightmare -  paying for college while the financial world you were planning to use seems to be falling apart before your eyes.

     So what is a college-bound family supposed to do in today's chaos?

     First, slow down, take a deep breath and focus on what you can control and create a plan.  The reason firefighters seem so in control during an emergency is they have plans for what to do in various situations.  Families who have a plan will not react in panic when something outside their control happens -- they move onto plan B and then plan C.

     I am counseling my families to think of college planning in these turbulent times as a road trip.  You know you want to get from New York to California for a particular budget.  You decide to drive and begin the trip.  You get 30 miles away from home when traffic stops and the radio tells you about a crash on the main highway ahead.  You can choose to wait it out OR take an alternative route.  You probably wouldn't turn around to go home and decide to fly would you?  If you don't know an alternate route you may pull out a map or pull off the highway and ask someone.  College planning in these strange financial times is the same way!

     Have a TRIP (College) PLAN!  Know where you want to go, how much you can afford to spend to get there, and alternatives in case of an emergency.  If you don't know the alternative routes, find someone who does!  And like driving across the desert, I wouldn't recommend listening to advisors who aren't experienced in that dangerous part of the journey.  I often end up fixing college plans that were based on heresay from friends, family and "professional" advisors who are well-meaning but have never successfully created college plans.

     So where should you turn for professional help on your "road trip"?  You can hire college financial planners like me to be your personal chauffer and take over the trip.  But that's an expensive option and not for everyone.  Instead, I would suggest you consider joining a  "AAA" for college planning.  That's why  I am suggesting that all families learn more about the not-for-profit College Leadership Foundation's College eCoaching program. 

     I am proud to be one of the Technical Advisors to the CLF's eCoaching Club.  I feel they are the most cost-effective way I have ever seen for getting help for the college journey for virtually every college-cound family.  They are unbiased and independent so there is no risk that they will send you down a "road" that only benefits a lender or a mailing list company!

     If you can't find or afford a local "Linda" to be the chauffer, I suggest looking into the CLF eCoaching program to help you on your journey.  For a modest monthly fee, you get the information you need sent direct to your family's inbox several times per month. Compared to the ultimate cost of the trip you and your student(s) are about to take, having a college planning "AAA" will be a small but valuable investment.

     In the meantime, if you have questions or concerns about your college future in today's economy, respond to this blog or contact me through my webpage at www.LindaPTaylor.com. 

    

Financial Aid for Foreign Students

This week's NACAC Conference in Seattle provided lots of information that may be of interest to many potential college students.  One is getting financial aid if you are a foreign student.

When asked if there is "traditional" need-based aid programs with state and federal grants and federally supported loans like Stafford and PLUS for non-U.S. Citizens -- the short answer is NO.  However, that does NOT mean a good student cannot receive college-based merit or need-based aid. 

There are six colleges that most of us in the industry knew will (1) admit international students in a need blind fashion and (2) meet their full financial need once admitted.  These schools include Harvard, Yale, MIT, Princeton, Williams, and Middlebury. At this week's NACAC  conference in Seattle attendees learned that Berea College, Colby College and Mount Holyoke also offer aid packages through the colleges to foreign students.

So there is good news is if you are a foreign student, some private colleges may offer aid packages if admitted regardless of citizenship.  It is more likely to happen at "need-blind" colleges meaning they will look at admitting you first regardless of ability to pay.  Once admitted, they will help meet your need with whatever dollars are legally available. 

If this is something you want to explore, check with the college Admissions and Financial staff to see what their policy on college-supported aid would be.  Also ask about the required financial aid paperwork.  Most of these colleges use the Financial Aid Profile in addition to the FAFSA so you will need to make sure you comply with their policies and due dates.

Admissions After Dropping the SAT

       This blog is a follow up on the NACAC call for colleges to consider dropping admissions tests (usually short-handed to "drop the SAT").   This parallels my blog article on dropping AP classes/AP testing.  Well my favorite source of insider college information -- the Inside Higher Education eMail -- does a GREAT job interviewing Wake Forest who has gone "SAT-Optional" to see how they have done since dropping the SAT.

     The biggest issue for keeping or dropping the test is how do you measure potential for college success? As a college, you want to have the best students and the highest graduation rate.  But you also want to make sure you have the broadest range of student types and experiences are on your campus.  The push-pull between best students and broadest types is behind this recommendation to drop tests.

    There are good reasons for dropping the test and good reasons for keeping them.  The biggest reason for dropping admissions tests is the contention that testing does not accurately represent the potential of a student to do college level work -- it represents how well they "test".  The second reasons for dropping testing is the fact that minority groups do not do as well on these tests which in turn, means fewer minorities are admitted to higher ranked colleges.

     On the other side, there are good reasons for keeping the tests.  Schools who have successfully dropped the test are mostly small, liberal arts schools where testing is not a good measure of success.  Students in STEM (science, technology, engineering, and math) are more likely to measure more clearly.  Also, the bigger the college the more likely it is your grades will be based on class tests because there are just too many students to measure classroom performance any other way. So testing "well" may be a good indicator of success at a BIG college.

     But the main reason most schools rely on Admissions Tests is it is a "shorthand" for how good the high school education was!  Most parents and students don't know how the "ranking" of their high school impacts their admissions. Per the article, Wake Forest Admissions are now asking more questions than they used to of high school counselors.  Without a test like the SAT or ACT, the admissions staff needs to get a better feel for the applicant's high school's rank and the "rigor of a curriculum".  This is why I am concerned about dropping AP classes which are taught at the most rigorous levels (read my blog and comment!)

     So what if you are concerned that your school or classes may not be perceived as "good enough"? Should you still take and submit your SAT and ACT scores?  What if you had no AP classes?

     In my opinion, it will depend on the size of the college and their commitment to doing a thorough job of research on you and your high school background.  That means number of applicants and number of admitted students.  The more students, the more likely it will help.  Per Wake Forest, the good news is if  an applicant attends a high school with 'a weak curriculum' and  was unable to take the kinds of college-prep courses and "if you feel the score is a good representation, then go ahead and submit. If you don’t, don’t.”

     My guess is that most students who "test well" will continue to submit scores.  Students who don't test well will gravitate towards colleges who don't require or want tests.  It will be interesting to watch what happens over the next 10 years to colleges without testing and how their graduates do in the work world.

    What's your opinion on admissions testing?

Free Speech Versus Candidate Endorsement Limits

       A VERY timely and interesting article in the Inside Higher Education daily eMail today about the new University of Illinois policy that bans the wearing of campaign buttons, sporting of bumper stickers, and attendance at campaign rallies ON CAMPUS for employees of the University.  As expected, the outcry from staff and especially professors was quick and loud.

     Without taking sides, I wanted to explain to everyone what the issues were because it is a 4-way conflict between:

1. The right to free political speech,
2. Workplace rules,
3. The college's broad definition of workplace free speech, and
4. The IRS rules that nonprofits cannot directly support political candidates.

    First, we all have the right to support the political party and candidate of our choice under free speech.  On our private property and in the public locations, we can do, wear or say pretty much whatever we want as long as it follows the law.  It is not only allowed, it is encouraged that citizens be legally pro-active in the political process.  So if you want to wear a button or put a poster in your window or a sign on your lawn, it is your right.

     However, political speech can be constrained by the policy of your workplace as long as it is equally applied.  Companies usually restrict things that an employee may find offensive. This is because of all the lawsuits that have been filed regarding hostile or discriminatory work environments.  So most employers practice work site neutrality for virtually everything from religion to politics.  As an employee, you can expect to be asked to remove or cover political buttons or t-shirts.

    What creates a challenge for colleges is they do not think of themselves as a "traditional" workplace.   Colleges consider themselves a unique location where free speech of any kind is considered an essential part of their reason for being.  University staff usually felt their colleges were  "public" areas where workplace rules do not apply.  Students as "customers" are allowed to freely express their beliefs on campus.  So it was natural for professors and staff  to feel they too could participate as if the college were not their workplace!    But this has now run headlong into IRS rules for nonprofits!

     The IRS rules on nonprofits are VERY clear that they are not allowed to be partisan and support a specific political candidate.  This means that university employees including professors cannot show support WHILE THEY ARE BEING EMPLOYEES.  So to protect their tax-free status, the U of Illinois has issued rules on what staff can and cannot have or do while on campus -- their workplace. 

    It will be interesting to see if the professors on the U of Illinois finally understand what it is like out here in work-land where we have to adhere to rules that they have traditionally supported but not been constrained by because of their "special" nature. 

    What do you think of the new policy of U of Illinois?

Do AP Classes Teach the Subject or to Pass the Test?

     My favorite resource for college-related news US News has ANOTHER great article -  this time on how some high schools are considering dropping the College Board's Advanced Placement (AP) classes. 

    The reason being given is it "restricts" how teachers can teach.  The issue teachers say is they want to put less emphasis on memorization and test preparation and more on "exploration" of the material.  This is another example of the conflict between testing to make sure our students have a minimum level of skills versus teaching to pass the exit or other measurement exam!

     What complicates things is the AP class is considered as being a "valuable"  indicator of the ability of the student to do college-level work compared to taking a traditional/non-AP classes.  Because AP classes are taught to a specific "rigorous" college prep level and there is a national test through the College Board (same people who do the SAT), it helps validate a student's college potential compared to other students.  This is especially valuable when the college admissions staff does not know much about the high school's reputation.

     Most high schools also add a point to the student's classroom grade (e.g., a 3.0 is a 4.0 in an AP class) in recognition of the difficulty of the classes compared to the traditional level classes.  This AP bonus can mean a higher overall GPA value for students.  The problem in dropping the AP classes is the more elite the college, the more likely other applicants are taking AP classes and that their high school GPA will be over 4.0!

    I can agree that "learning" may be different when there is less emphasis on memorization and preparation for passing the AP test. I also agree there is a need to measure the "learning outcome" so we can tell if our children are getting the education they need.  So both approaches are right and both are wrong.  We need a blend of both!

   Again, what do you think?  What should we do to measure student preparation versus teaching beyond passing a test?

   

Example of Our Problems with Education!

       There is a great article by Howard Blume today in the Los Angeles Times on the problems with the new mandatory Algebra class in California schools.  This debate is an example of what is happening in our high schools:  how to educate our students to the highest level possible while accomodating students not ready for "prime time".

     For those who don't know, it is now California state policy to REQUIRE algebra in the eighth grade.  There are now two sides pulling and pushing over this requirement.

     One side is supported by California Gov. Arnold Schwarzenegger to create a math test for all eighth-graders that would satisfy federal officials.   The other side as represented by the California School Boards Assn. and the Assn. of California School Administrators (suing to stop the implementation) which feel the new requirement sets up unprepared students for failure while holding back others with solid math skills.

     This is a classic example of positive intentions (teach higher math) running into social issues (students arriving in 8th grade with 2nd grade skills).  My questions are:

• How did those kids hit 8th grade with 2nd grade skills? 
• What does that say about the education system that allows students to be passed along? 
• Why is money always the answer when the amount of money already being spent in cities like Washington D.C. (the most money per student) is cited in the story as dead last in math assessment?
• What does it say about educators who sue to stop the implementation rather than sit down and address these real problems?

    As a college planning advisor, these are REAL issues that I face evry day trying to find colleges for students and then helping them pay for it.  What happens when a student who can be 6 grades behind in skills like math are given a position in colleges as a "special admit" for athletic or other reasons?  What happens to the USA in STEM (science, technology, engineering, and math) when students enter less than prepared?

    Let's start talking NOW.  The longer we wait to address these issues, the more students will end up dropping out or taking majors that do not have math components that lets the USA fall farther behind in STEM.

Student Learning Outcomes and the Univ of California

       

      In today's Inside Higher Education News is a great summary article on proposed accountability plans for University of California.  The new system President Mark Yudof presented a draft of his suggestions to the Board of Regents over this past (September 20, 2008) weekend.

     Good news, is the proposal was a framework to pull together all the things the member campuses already measure but are scattered and difficult to find.  Bad news is the Regents are still fighting measuring student learning outcomes.  I appreciate their reluctance but . . .

     My issue is whether or not measuring things like faculty performance, finances and research output are really indicators of STUDENT learning!

      My main concern is that the UC system still does not participate in the Voluntary System of Accountability (VSA) which is designed to provide transparency on things like educational outcome.  The UC system does not participate in the VSA because of their suggestion to use one of three national tests measuring student learning.  The UC faculty states that such testing “usurps the role of campus and departmental faculty in assessing student learning”.

      I appreciate that no one likes being measured based on the success of another person.  Plus I know that learning is made up of many pieces that a college cannot control including preparation from high school and individual student motivation.  BUT I think there needs to be an independent measurement that is NOT controlled by the people who are being measured!

     I am the daughter of a college dean so I understand the need for research and scholarship by colleges. The problem for UC faculty is the  "product"  families are paying for is learning outcome.  Measuring how much the UC schools spend or how many grants and publications the faculty has in research is probably not something important to parents and students.   

   

WHAT DO YOU THINK?

Impact of High School Accreditation

     What happens when the high school loses its accreditation?

     This is more than a theoretical question.  The Southern Association of Colleges and Schools (SACS), one of the nation's major accrediting agencies, revoked the Clayton County school system's accreditation in late August after the district's leaders failed to achieve eight of nine mandates for improvement set by SACS in February 2008.  This situation is impacting thousands of students, many who are applying to college right now.

      There is a great summation of the situation at US News & World Report posted on 9-19-2008. (click logo for link to article).

     Supposedly, college-bound students will not be directly impacted by the revocation.  Per the US News reporting, Georgia does not require in-state applicants to its state universities to graduate from accredited high school.  Several colleges, including Harvard, said its admissions process doesn't really look at lack of accreditation.  The reason given is they admit students from other than "traditional" high schools including home school and foreign students.

     So what does this mean for students at marginal high schools? The impact on college admissions becomes how the college will evaluate the applicant GPAs.  The use of "neutral" or equally administered admissions tests like SAT,  SAT IIs, ACT, and AP tests may become more important when the value of the grades becomes questionable.  The more elite the college, the important testing may become to prove the level of education received.

    The same US News article had a great quote from Forest Park High School Parent Teacher Student Association President Theresa Brown-Manuel. She feels strongly that parents should ask: "What can I do as a parent and as a member of the PTSA to help solve this problem? Well, I can do a lot."      Parents and students need to be involved with their high schools to INSIST that they be given the best education possible.  Look at testing scores.  Look at what percent of students go on to colleges.  If they are not good enough, work to make them better!