Graduation Tax – Paying for College Now by Paying Taxes Tomorrow

July 16, 2010 by Thomas / 0 Comments

Across the Atlantic there have been discussions about a radical new way for students to pay for college. Instead of either cutting programs or raising tuition, governmental officials are proposing the possibility of defraying increases and paying for those costs by assessing taxes against a student’s future earnings.

According to the Daily Mail, the majority of the students in the UK currently take out loans of about £3,225 a year at low interest rates and pay them back after they graduate. The process is analogous to that of the US except the debt level of students in the UK is limited.

Tuition fees are assessed as a flat rate charge generally paid in installments after a person graduates. However, the poorest students in the UK are not required to pay back any funds while the student debt for the more affluent is still limited to a specific amount.

But as with America, UK universities are currently faced with cutting services or raising fees. According to the Daily Mail, rather than make programming cuts, administrators want to increase fees by about £5,000 a year.

A Graduate Tax

As a possible different option, the idea being floated is to impose a graduate tax that would require students pay a percentage of their future earnings for a specific time period. Such a concept means that the payback amounts would vary from student to student depending on what he or she earns in the future.

Critics immediately pounced on this fact insisting that those students earning more would in effect be penalized. The Mail reports that the Russell Group of top universities “calculates that graduates in the upper 20 per cent of earners could end up paying at least £16,000 a year – far more than the cost of their education.”

However, as America grapples with making education more affordable and increase access to higher education for the neediest students, the graduation tax represents an interesting approach. First and foremost, if tuition and fees were waived, higher education would truly be affordable to students from all walks of life.

Second, graduates who struggle to find jobs initially often have their entire future placed in jeopardy especially if they had to borrow a significant amount to pay for school. Those individuals face enormous pressures when the six month loan deferment period ends and the initial payment schedule begins.

One Possible Prong

When it comes to addressing the issues of higher education, both the affordability of college and the desire to have more students pursue a degree, federal and state government would do well to examine the graduate tax option. A modest percentage assessed against future earnings could prove to be a very viable exchange for those first generation college students struggling desperately to find money to attend school at this point in their lives.

In addition, making that option available only to those who attend a community or state university branch would ensure more students would pursue education at the most reasonable cost. While we are not convinced that the major concern being expressed is legitimate, it would be easy to take care of the issue of those who earn more money being forced to pay back far more than those who earn less. Creating a time period certain and a cap on total payback would easily take care of any issues.

Of course, we would prefer the UK option of no payback as well as no tax for the most needy students. But faced with higher costs and the potential for significant debt, some American students would seemingly do well if the graduate tax option existed.

Five Job Application Mistakes

July 5, 2010 by Thomas / 0 Comments

In a tough economy you cannot afford to make any mistakes with your application packet.

Over the past three years, good-paying jobs have become exceedingly tough to come by, even for those with a college diploma. Unfortunately, many grads are making the application process more difficult for themselves.

The current recession has rendered some traditional job search practices obsolete. Those who fail to take notice of those changes are doomed to a fruitless search.

1. Create a Unique Cover Letter for Each Application

The concept of creating one cover letter then cutting and pasting salutations is a definite no-no today. Because computers make it easy to fire off countless professional-looking documents with a simple change of the header, companies are now looking beyond the appearance.

It remains true that a professional cover letter remains critical, a simple spelling or grammatical mistake can get your whole application packet tossed into the recycling pile. Employing your spell check and grammar features can help, but you still may want to have someone with proof-reading skills double check that element for you.

However, even more importantly, the content of the letter matters today. Many companies now use automated tracking devices to initially examine application packets submitted online. Those devices first hone in on the key words and phrases from the job description of the opening.

Those scanners can be programmed to search for the name of the company in the body of the letter as well as some of the company’s specific attributes. Your letter must directly address and mention these key elements.

Furthermore, your letter must indicate why you are the right person for the opening. Otherwise your entire application packet could be tossed before your resume is reviewed.

2. Create a Unique, Easy to Review Resume

As with your cover letter, the content of your resume must also match up with the scanning devices. Again, creating one generic document will not cut it – your resume must match up with the company and its respective job opening.

While you may think highlighting academic awards from high school or college will get you noticed, they are secondary to a resume featuring relevant content. Having those respective key words and phrases in your goal statement and when relevant, in your work or academic experiences, are critical in getting your resume past any businesses employing scanners in the search process.

However, to ensure that your document passes muster with those employing the old-fashioned personal touch, it is helpful to have a concise, skimmable resume. Make it professional (free of typos and grammatical mistakes), but also make it brief, relevant and too the point.

3. Provide References

Once upon a time, it was copacetic to end your document with the generic phrase: references available on request. No more. Today’s job market demands that you provide all the necessary information the recruiter or human resource professional needs to evaluate you appropriately.

Most employers will do some homework before inviting people in for an interview and that homework may well include checking references first. If you have not provided that information and other worthy candidates have, the recruiter will no doubt start with those who have provided the info. If they are happy with what they find out, they simply will not take the time to contact you.

Lastly, for new grads, such a ‘references available on request line’ may be seen as an attempt to hide the fact that you may not have any quality ones to list.

4. Take and Make the Offered Interview Time

It is important to understand that an interview request is a clear indication that you have survived the initial review process. That means this company has interest in you.

Unless you have another job interview scheduled at the time offered, make every effort to work the offered time into your schedule. If you are fortunate, you may get offered a couple of options.

Some grads think such flexibility sends a message that they have little going on in their lives, especially on the career front. But in reality making yourself available sends the message you are truly interested in this particular opening.

And whatever you do, don’t be late!

5. Review the Company Web Site

It is imperative that you take the time to review the company web site. First, a brief scan can be critical to providing you those key words and phrases that will make your cover letter and resume stand out.

Even more important, if you get an interview opportunity you will be asked questions about the company. Those questions are designed to let hiring managers know if you have done some homework on both the company and the prospective opening.

Once again, the key is to create a good impression. Knowing about the company and understanding their needs once again sends the message you are truly interested in working for them.