College tuition is spiraling out of control. While the economy experienced deflation in 2009, tuition is up an average of about five percent!

The problem is that there's too much loan money floating around. If people had to pay upfront for their education, they'd likely be smarter consumers. But the kaleidoscope of available loans doesn't exactly encourage price sensitivity.

In addition, if we did not have easy access to student loan money, colleges would be forced to run more efficiently and keep their costs down.

That's why you'll get more bang for your buck at community colleges and so-called "directional colleges." The latter is simply any school with a description of where it is geographically located in the name, such as Clark's alma mater Central Michigan U. These kinds of schools tend to devote more of their money to educating students instead of running a bloated operation.

Consider spending your first two years at a low-cost community college before going on to finish up your degree at a prestigious university.

Recent college graduates are moving back in with their parents or other relatives in huge numbers. The San Francisco Chronicle reports that it's happening to 80 percent of graduates. Worse yet, the graduates are beating themselves up over their unlucky plight.

Yet college grads need to realize they are not to blame. There are over seven million fewer jobs today than when the recession began in 2007, according to the Labor Department. In addition, people who are older and might have retired are continuing to work because their retirement savings have declined. So you have a real double whammy.

Stop beating yourself up, college graduates!

This past weekend, Clark spoke with a mid-career person who has been unemployed for some time because she took a buyout from her employer. She's too young to retire and now she's facing a lot of difficulty finding a new job.

Yet the jobs will come back, though Clark does not have a magic date as to when they'll appear again. Economists say the rates of job losses are declining, which is good, but we're not yet seeing that full-scale turnaround in employment.

Meanwhile, many college graduates will attempt to use social networking sites like Facebook to help find work. Social networking represents a great opportunity to e-network, but you should beware of scams. Use those kinds of sites with extreme care.

According to a new school study, tuition increases at private schools during the past year were 4.5 percent -- the smallest they've been since 1972. At the same time, student borrowing is up 25 percent year over year, according to a new report from the U.S. Department of Education.

What's going on here?

First, state-supported schools have probably had higher tuition increases as state budgets have dwindled. Second, and more importantly, families that could help with tuition expenses in the past can't do so this year because of job losses or cutbacks.

Today's average student graduates with debt of over $23,000, according to The Wall Street Journal. Is that a reasonable amount?

Well, Clark has a rule of thumb regarding borrowing for undergraduate studies: Your entire loan burden for four years should be equal to or less than your expected earnings during your first year of employment after school.

So if you're contemplating borrowing yourself way into oblivion to pay for school, perhaps the alternative is two or even four affordable years of college at a community school.

There have been several studies lately questioning the value of a college education. It's understandable during a recession that's been equal opportunity about hitting people of all education levels.

Yet four-year degree holders on average make far more than high school graduates. In fact, the Census Bureau has estimated that having a college degree will net you an average of 67 percent more money over a lifetime.

Clark firmly believes that education creates opportunity. He's heartened to see that enrollment levels at community colleges are booming off the charts. They're having to schedule classes at very odd hours -- before daybreak, late into the night and on weekends.

Community colleges are a great way to get the training you need to change fields if you're in a dead-end job. President Obama is launching a new initiative to help community colleges provide affordable education for our nation's workers.

And the boom at community colleges may create opportunities to teach part-time right now in your area of expertise.

In today's economy, we have to continually reinvent ourselves. A small number of us get a very specialized education and that's all we need -- such as doctors, chemists, physicists and others. But even in those fields, you can switch what kind of doctor you are by going and getting more training.

Clark's daughter is a college junior who is slightly behind schedule to graduate on time. He's offered to get a tattoo the size of a quarter if she finishes on time! Clark hates tattoos, but the offer really impressed on his daughter his feelings about the importance of education.

Textbooks can be one of the biggest expenses of a college education. Clark upsets college professors whenever he picks on them for requiring students to use the newest edition of a book -- instead of allowing students to purchase older used versions.

Some professors have even accused the consumer champ of trying to stifle education!

Meanwhile, certain schools take kickbacks from book publishers for mandating that students use custom-edition textbooks. The production runs on these custom texts are small enough to be targeted for specific university courses.

These "boutique" books -- which may excise certain material or add a professor's published papers -- come embossed with a warning that it's illegal to sell back as a used book. The campus book stores are, of course, complicit because they refuse to buy these books from students.

So there are a lot of factors conspiring against students who are on a budget.

But what if you could rent your textbooks? Chegg.com offers just that opportunity. Chegg claims to have saved students $41 million to date. (Editor's note: This figure is accurate as of July 28, 2009.) Give it a try this fall semester.

There's a radical change coming on the student loan front that Clark wants you to know about.

Effective July 1, 2009, an income-based repayment plan (IBR) will become available to borrowers with federally guaranteed student loans such as Stafford loans and Grad PLUS loans.

Under the new program, your payment will be based on your current income and family size. Your monthly payment could be an unprecedented zero dollars, according to Kathleen Pender of The San Francisco Chronicle.

You must apply for the IBR. Contact the lender or lenders who hold your student loan(s) for more details.

In addition to the IBR, other new provisions going into effect include loan forgiveness options for certain workers.

Employees of non-profits and certain levels of government can have loan forgiveness after making on-time monthly payments for 10 years. If you work in the traditional for-profit sector, it will take 25 years of on-time payments before you're eligible for loan forgiveness.

We're hearing so much talk of how this is an equal opportunity recession -- how no matter what you make or where you work, you might lose your job.

That kind of talk is being coupled with chatter about how a college degree may no longer be of value, that it's better to learn a trade or a skill.

Is it true? Have we reached a watershed moment where college no longer pays off? No way, according to an article in The Orlando Sentinel.

Here's the rundown: Unemployment among people with bachelor's degrees is at 4.4%, while the national rate is hovering around 9%. Meanwhile, for those who dropped out of high school, the rate of unemployment is sitting around 15%!

Degrees are not bulletproof -- you still could be pink-slipped -- but they give you some level of assurance against joblessness.

Mind you, this is not to belittle those who skip the traditional school route and learn a trade. College, after all, is not for everyone.

It's what Clark calls "the nothingness" that's problematic -- not finishing high school, not going to college or not having a specific skill or trade.

With the dreaded liberal arts degree, you're not qualified on paper to do anything. Yet plenty of people still forge a career path with liberal arts degrees.

Christa, for example, was an English major who worked as a receptionist once she got out of school. But she was able to seize an opportunity to work at AOL during the company's heyday.

From there, she went to work for Clark launching the first incarnation of his website. And then eventually she became executive producer for the show. It was a haphazard path that wouldn't have worked without a degree.

So don't believe the hype; college still matters.

Do you need to borrow to fund college education for yourself or your child? Be sure you take the Clark Smart approach to borrowing as detailed below.

Subsidized Stafford loans are the single best source of money you can borrow. The interest is picked up by taxpayers while you're in school. For the 2009-10 school year, subsidized Stafford loans will carry a fixed interest rate of 5.6%. The rate will be lower still at 4.5% next year, and all the way down to 3.4% the following year.

Freshman can borrow $3,500 annually; sophomores can borrow $4,500 each year; and juniors and seniors cap out at $5,500.

Once you exhaust your subsidized Stafford stockpile, you want to move on to unsubsidized Stafford loans, which are now at 6.8%. Remember, though, to borrow as little as possible because the interest on these unsubsidized loans will accumulate while you're in school.

As a third option, parents can take out PLUS loans, which are issued at a fixed rate of 8.25%.

Visit FAFSA.ed.gov to determine your eligibility for all these loan options.

One category of loans to avoid are private student loans. Back in 2005, the private student loan industry bought off enough politicians to gain the right to do any and all tactics short of causing you bodily harm in their efforts to collect on their money.

Private student loans typically can't even be dismissed in bankruptcy.

Finally, remember the consumer champ's rule of thumb when it comes to determining what level of borrowing you can comfortably handle: Do not take on loans that exceed the likely first-year earnings in your field.

Are SAT prep courses really worth the money? Not according to a new report from The National Association for College Admission Counselors (NACAC).

The NACAC cites existing evidence to suggest the average score increase after taking a prep course is about 30 points. The SAT is now graded on a scale of 2,400 points.

Worse still, some prep course companies are believed to give sample tests that are much harder than the actual SAT, which results in a low initial score. So when a paying customer later takes the real exam, they automatically think they went up hundreds of points because of the prep course!

People want to believe they'll get the extra nudge that will get them into their reach school (as counselors say) instead of their safety school.

But if you want to feel comfortable with the SAT or other standardized tests, Clark recommends picking up a prep book to get a feel for the drill. Do not spend all that money on the courses! The data shows clearly you'll be overwhelmed with marketing hype and underwhelmed with the results.

And for the record, Clark took the SAT 3 times and got a 1,070, 1,050 and 1,170. That's back when it was on a scale of 1,600. He attributes his low second-attempt score to the fact that he tested during the summer in a Duluth, Minn., high school with sweeping views of Lake Superior. He simply couldn't concentrate!

The level of credit card debt being carried by college students has risen dramatically in the last 5 years, according to a new Sallie Mae study.

For too long, the giant banks handed out credit cards like candy to freshman. In many cases, the schools themselves got kickbacks for every student that signed up.

82% of students now run a balance on high interest cards, according to the latest numbers. That's up about 37% in just 5 years. Even more disturbing, if you go back 5 years you'll see that nearly 70% of students carried no monthly balances. Yet today, only 15% pay in full each month!

The good news here is that the banks won't be allowed to target college students like they have in the past when the new credit card rules go into effect.

Yet it's still incumbent on parents to educate your children about the dangers of credit card debt before they go off to school. If they protest and say you're infringing on their freedom, you should explain that there is no freedom when you owe the credit card companies.

Stories about college affordability seem to be dominating the newspapers right now. The acceptance letters have gone out…and parents and teens are now faced with the question of how to pay for college!

Clark speculates we're seeing so many newspaper stories about this topic because reporters have college-age kids themselves. They're trying to figure out how to fund education too!

College has become cost-prohibitive for many Americans. Even the state schools have run up their tuitions as they face state budget crunches.

So have you thought about a 2-year community college? This option has long been recommended by the consumer champ as a way to start your education on the cheap.

Community colleges are now allowed to offer 4-year bachelor degrees in 17 states, according to The New York Times. Historically, community colleges only offered 2-year associate degrees.

Florida alone now has more than a dozen community colleges offering bachelor degrees.

Let's say you decide to do your first 2 years at a community college. People often worry about the lack of prestige. But most employers only look at the name of the traditional college that issues your degree after you've put in your time at a community school.

In fact, Clark believes an employer might even prefer someone who worked their way through a community college and had to struggle financially. Doesn't that make for a more compelling story than a job candidate who cruised through a 4-year college on the silver spoon plan?

So if you're contemplating borrowing yourself into oblivion to pay for school, perhaps the alternative is 2 or even 4 affordable years of college at a community school.

Morningstar has released its annual review of 529 plans, and the results are very similar to Clark's favorite picks in his perennially popular 529 guide.

529 plans are state-sponsored plans that allow you to save for your child's education. You don't need to put your money into your state's plan; you can pick any plan from anywhere in the nation. To make things even more complicated, states can lend their name to more than one plan of varying qualities. One state even has 6 plans under its name!

With 529 plans, you save money tax free and it's spent tax free down the road on your child's college. Be sure to put the plan in your name and list your child as the beneficiary. If your child doesn't go to college, the money can later be transferred to another non-related child.

The only danger with 529 plans comes when they're bought through ultra-high commission brokerage houses. Rest assured that none of those plans are on Clark's list.

Both Morningstar and Clark single out the Utah Educational Savings Plan Trust as one of their top picks. Ohio CollegeAdvantage and Virginia Education Savings Trust also get a thumbs-up in both assessments.

So who's the worst? The great state of Nebraska made the list twice -- for the Nebraska State Farm College Savings Plan and the Nebraska AIM College Savings Plan -- for the worst college saving plans in the United States.

Ohio is in the unique position of having plans on both the best and worst lists, according to Morningstar. What is the difference? The bad plan -- Ohio Putnam CollegeAdvantage -- is only sold through a commissioned stock broker.

Once you identify the state plan you want to participate in, where should you put your money? Clark suggests picking an age-based portfolio. That means the risk level automatically adjusts every 2 years based on your child's horizon of time before they need the money for college.

But before you start a 529 plan, you must save for your own retirement first. After all, there are no scholarships or student loans for retirement!

Recent college grads are finding themselves either underemployed or unemployed and in no position to pay their student loans.

In that situation, the last thing you want to do is hide from your obligation. Federal student loans follow you like a plague. They typically can't even be removed by bankruptcy, and collectors can garnish your wages without having to prove the debt in a court of law.

Instead of defaulting, why not consider a forbearance or deferral? They're similar programs in that they both allow you to stop paying for a certain amount of time, but they do have some key differences. Visit the U.S. Department of Education's website for more details on each.

By going that route, you can get as many as 6 years of additional time to work through whatever situation is preventing you from paying.

It's also important to know about options for student loan forgiveness. Public service employees can enjoy full loan forgiveness after making 10 years of monthly payments on their federal loans. See our briefing for more information.

Meanwhile, FinAid.org details loan forgiveness options for those who volunteer with AmeriCorps, those who join the military and others.

Now, all of this addresses what to do after you've gotten yourself deep into student loan debt. But how should you avoid it in the first place?

Clark has a rule of thumb regarding borrowing for undergraduate studies. Your entire loan burden for 4 years should be equal to or less than your expected earnings during your first year of employment when you get out of school.

Looking for a positive effect of the negative economic news? Admission to certain private schools -- especially those just one rung below the most elite ones -- has suddenly become easier.

Interestingly, the sheer demographics of college entrance are working against you at this time -- this spring's graduating class of high school seniors will be the largest ever.

But there are actually 2 economic trends working in your favor.

First, applications to private schools are down, especially among those whose parents might have footed the bill prior to the economic meltdown. Second, the colleges' own endowments in the stock market, real estate and hedge funds took a beating. That means there's less money for operating costs...and they need you desperately.

Suddenly, you may now be seen as a competitive applicant for a certain school even if you weren't before.

Clark recalls a similar episode from his own life. His application for Georgetown during the fall semester of 1973 was rejected, forcing him instead to go to American University. But the following year, amid the economic troubles of the mid-1970s, the consumer champ was reading the now-defunct Washington Star…and there was an ad with a coupon to apply to Georgetown! It had become that easy.

We are once again in that kind of era today. Even with the huge bubble of graduating seniors, there will be a lot of space at private schools because of the economy.

The only remaining question is what's going on with financial aid once you get accepted!

When we think of college, we typically think of a traditional 4-year experience or even longer. But by cramming an education into 3 years, you can actually save a bundle by eliminating the cost of housing, meals and transportation for a fourth year.

That move will typically reduce the final cost roughly by a quarter. This is exactly what Clark did when he worked during the day through undergrad school and took classes at night over 3 years

More schools are now experimenting with this idea. For example, Hartwick College in upstate New York is offering a 3-year undergrad degree, according to The New York Times. It involves a modified schedule where you go to school for a fall term, followed by a January term (sometimes called a "minimester") and then a spring semester. This kind of scheduling saves you $40,000 at Hartwick over the course of your education.

State schools can also boost their bottom-line by adopting 3-year degree programs. After all, the state schools are already bursting with new students who have enrolled in pursuit of a cheap education. So a full-year calendar increases the capacity of a state school by 33% without the expense of having to build any new facilities. Now that's stretching taxpayer dollars!

Meanwhile, Clark also wants to salute a teacher named Abby Brown in a distant suburb of Minneapolis-St. Paul called Marine on St. Croix. This sixth-grade teacher was spotlighted in The New York Times because she's developed a desk design where the children stand. It's said to increase concentration and alleviate boredom by allowing the students freedom of movement.

Way to think outside of the box, Abby!

Finally, the consumer champ has received a lot of questions from people asking why he stands during his HLN show. When the radio station where he works was being built, they hired a consultant to design the studio who believed that talk show hosts have more energy if they're forced to stand!

For months, Clark has been telling you how the student loan market has fallen apart, and how difficult it is to put together financing for school. The latest blow now comes with news that MyRichUncle.com has gone bust. MyRichUncle.com was an online student lender that offered clean, legit deals with low interest rates.

The U.S. Department of the Treasury has been trying to restart lending. Clark, however, wishes they'd just stop. Part of the problem with the tuition run-up over the years has been that it was too easy to borrow money.

Universities have become inefficient providers of education. Much of the money goes to large bureaucracies and to research -- not to the actual cost of educating undergraduate students.

You'll get more bang for your buck at community colleges and so-called "directional colleges." The latter is simply any school with a description of where it is geographically in the name, such as Clark's alma mater Central Michigan U. These kinds of schools tend to devote more of their money to educating students instead of running a bloated operation.

Remember, if we open the student loan spigot again, we take the pressure off schools that is necessary for them to reform.

Following up on a long-running story, The New York Times recently reported some of the giant monster mega banks have been paying massive kickbacks to universities and alumni groups for the right to push debt to students.

The banks are buying lists of home addresses, phone numbers and other personal info so they can offer credit cards directly to young people. College students are the most profitable targets, and they have deep-pocketed parents who will step in and pick up the tab if necessary.

The banks are acting like bank robbers minus the gun, according to Clark. Nobody is worse than Bank of America, which has contracts with 700 schools and alumni groups. The New York Times says BoA paid $8.4 million in kickbacks to Michigan State for names, addresses and the right to use the university's logo in marketing materials.

The more students who get into debt, the larger the kickbacks become. This kind of behavior should be criminalized, Clark says. And shame on the schools for selling their own students down the river.

Students themselves are beginning to revolt. At Arizona State University, students set up booths on campus to warn incoming freshman away from this potential danger. Likewise, the student newspaper at Michigan State has run several editorials to raise awareness.

As always, a BoA rep is welcome to come on the show and explain why what they're doing isn't wrong. An explanation from state-supported universities that take the kickbacks would also be nice.

If you're the parent of a college-bound teen, you must educate your child about this issue. As an early alternative, try getting your high school junior a credit card with a low limit so you can monitor use and teach responsibility while they still live under your roof.

College is often considered one of the best ways to step up the income ladder and have flexibility in terms of career choice. But right now, the affordability of college itself is in doubt.

The National Center for Public Policy and Higher Education has issued a "report card" with grades for every state that rank them on college affordability and other criteria.

Every single state got an F except for California, which got a C-.

Why did California earn the only passing grade? The state has had a longstanding tradition of students spending their first 2 years at a cheap community college and their last 2 years at more expensive 4-year schools. In essence, college students in the Golden State have been getting degrees at 50% off for years.

This is one circumstance where the other 49 states can learn from California. Clark would love students in all states to consider doing a few years at a community college before jumping into a traditional 4-year school.

The penny-pincher often gets calls from people with massive student loan debt. Don't be one of those people. Think about the alternatives.

Clark's college sophomore daughter recently called him in need of $440 for an emergency car repair. His immediate concern was how to get her the money as soon as possible.

Enter a new beta test of the PayPal Student Account, which allows parents to instantly send their children money. However, enrollment in the beta is only open to those who have an existing PayPal membership. The whole concept for this arose when PayPal VP Don Fotsch had a similar dilemma as Clark did in trying to get money to his kids.

The PayPal student account allows instant availability of funds for a 2% transaction fee. So every $100 you send becomes $98. But Clark loves that PayPal is providing competition to the banks' choke-hold on the money transfer business.

There are so many stories right now filled with doom and gloom for those seeking loans for college. In fact, Clark believes there's a gross overreaction to the situation and wants to set the record straight.

Here are the facts. First, the private lending market for college is frozen. Second, many colleges are finding themselves pinched because their endowments have not done well in the stock market. Third, state universities depend on tax dollars for at least half of their costs and that money is shrinking.

So what's the good news?

Well, Clark believes the student loan market freeze may reverse the runaway tuition hikes that had become so common. Borrowing for college became way too easy and it created deep debt for too many people. The loans were based on a false economics and made it possible for colleges to increase tuition at 3 times the rate of inflation. There was no marketplace resistance; people just borrowed more money as tuitions rose.

Meanwhile, the federal government has moved in to fill the vacuum of the private loan market. According to FinAid.org, the feds now provide $4 out of every $10 -- and that's likely to rise.

However, some changes may be in order on your part. Clark advises people to look at doing a few years at inexpensive commuter colleges before transferring to pricey 4-year schools.

For example, California is now routing freshman and sophomores into their network of junior colleges -- where the cost for core curriculum is much lower than in their state university system. Only after you complete 2 years at a junior college can you enter a state university.

But new data from the Census Bureau presents another story. The latest figures show that having a college degree will net you an average of 67% more money over your lifetime vs. having just a high-school education.

Of course, there are always some high-school dropouts who wind up being multimillionaires -- they're more the exception than the rule.

Clark was distressed by one factoid from the Census Bureau report: Having a master's degree does not boost income the way it used to. The additional pay is only 20% beyond a bachelor's degree.

People with advanced degrees are seeing their income shrink after inflation over the last couple of years. This is because of natural economic cycles; it's not a conspiracy where one political party has made it tougher on people! Meanwhile, Clark is also worried about the scapegoating of free markets and free trade.

There's no question that an education is worth it. But there's something going on beyond just money. Education gives you options for a fulfilling career.

For months, Clark has been telling you about the student loan market collapse and the woes it has caused for students and parents alike. The tightening of lending has made it particularly hard to get a private, non-governmental educational loan.

Previously, the best Clark could do was suggest that students who needed additional funds petition the financial aid office at a private college or talk to deans and department heads at state schools.

But now he has 2 new options to share with you. GreenNote.com and Fynanz.com both specialize in peer-to-peer lending specifically for the educational market. Students can borrow from friends, family and strangers alike.

Just be careful how much loan debt you take on. The fact is that you can't even get rid of it in bankruptcy. Collectors can garnish your wages -- even for private loans -- without going to court to prove that you owe the money.

And after you pay your student loans off, keep your pay-off statements forever!

But the best option is to not accumulate a lot of student loan debt to begin with. The cost of a community college is one-tenth to one-twentieth that of a private college. The cost of a state school, meanwhile, is one-fifth to one-seventh that of a private college.

Being harassed by a debt collector over your student loan? Visit StudentLoanJustice.org to find out how you might be able to pushback.

Here's an important alert if you or someone you know is in college. The student loan market is in a world of hurt right now because of wider economic trends. Private loans are hit-or-miss when it comes to availability.

In essence, the lending spigot is dry. So that means students have to employ extra creativity to remain in school when money isn't necessarily available.

Clark believes that private universities will find they'll have to offer payment plans in order to keep enrollments up. Work-study is another route to ensure you can stay in school. Or you may have to work for an employer that pays for your education. That's what Clark did for his graduate degree.

If you can't find the funds for a private college, you may have to dial back to a community college or a state school during your freshman or sophomore years.

The silver lining to not being able to find private educational loans is that people won't burden themselves with massive debt. If you have to find another way to get that degree because you can't borrow, that could be a good thing…

First, the student loan kickback scandal on college campuses...and now this.

The Wall Street Journal reports that some schools are now taking kickbacks from book publishers. For several years, publishers have had to compete against the online used book market for college texts. So they eventually came up with the idea of creating custom-edition textbooks in production runs that are small enough for specific university courses.

These books -- which may excise certain material or add a professor's published papers -- come embossed with a warning that it's illegal to sell back as a used book. The campus book stores are, of course, complicit because they refuse to buy these books from students.

Which schools are taking the kickbacks? The University of Alabama and Virginia Tech are both mentioned in the article. Penn State, meanwhile, recently stopped the practice.

Clark thinks it's unacceptable that your university is stabbing you in the back and stealing money from you. As if it's not expensive enough to send a child to college! Who knows what else they're doing to rip off your son or daughter?

Meanwhile, Clark recently picked up a $14 backpack for his third grader at a warehouse club. Christa went the slightly more expensive route and got her child an L.L. Bean backpack.

But you can one-up them both if you wait until late September to buy your child's backpack. That's when they'll go on clearance after everyone's gone back to school.

Good news for students and potential students! There are new loan rules in effect as of today (July 1, 2008). While it's a confusing system, the deals are better now than those that existed under the previous student loan rules.

Under the College Cost Reduction and Access Act (CCRAA), it really pays to be a freshmen this year or shortly after. That's because the interest rate goes down each year over the next several years. While it's 6% right now, next year it will be 5.6%. By 2010, the rate dips to 4.5% and then to 3.4% in 2011. If Congress doesn't act after 2011, the rate will then double back up!

Debt forgiveness is also a new feature of the CCRAA. Those who choose to go into public service can enjoy full loan forgiveness after making 10 years of monthly payments on their federal loans. For the complete scoop, check out Clark's CCRAA guide. Finally, if you are out of school and want to consolidate your loans, check your options at Ed.gov.

RIP-OFF ALERT: The academic world is embroiled in yet another scandal after the loan kickback controversy on campuses around the country.

Business Week reports that school officials now are getting kickbacks from health insurance companies for steering students toward certain policies. The U.S. Government Accountability Office says these policies have no meaningful coverage in the event of a serious accident or devastating illness. For example, 95% of medical bills may not be covered in an accident. The policies are not worth the paper they're written on.

Schools in Alaska, Kansas, Florida and New Jersey are among those named in the Business Week story. Meanwhile, the Attorney General of New York is conducting its own investigation.

About 30% of the time these ineffectual policies are required by schools and there's nothing you can do about it. But nearly 7 out of 10 times, the university may be on the take. So don't rely on them to recommend a policy for your son or daughter. Do your own research.

We're getting a large increase in the number of calls about student loans. The lending market is essentially frozen because of the fallout from the mortgage crisis. Are you still trying to figure out how to pay for college this fall? Clark has 2 important pieces of information to share with you.

There's emergency legislation working way its through Congress that will allow the federal government to be the "bank" for educational loans for this fall. Clark has full faith that this legislation will be pushed through in time for school.

Yet federal loans may not cover a tuition bill in its entirety. You can try to get a private loan, but very few private lenders are disbursing funds. So where do you turn? Try the peer-to-peer online lending sites where you can borrow directly from other people and cut the banks out of the equation.

Here's how they work: A borrower posts the amount they need to borrow; their credit rating; their debt-to-income ratio; and how much interest they're willing pay. Multiple lenders can then log on and each lend just a fraction of the money to limit their individual risk. Prosper.com is one of the most popular sites for this sort of thing. Clark also has a list of other P2P lending sites available.

There's a lot of tumult in the student loan market right now. Because of fallout from mortgages, many educational lenders are not able to borrow money to service their customers. One lender recently went bust and left students stranded high and dry with their tuition checks bouncing. Other lenders are not even making loans for kids going to college this fall. While this is a problem, it's not the severe crisis you might imagine. The U.S. Department of Education is required to step in and pick up the slack with loans.

Meanwhile, 8 of the top 10 lenders are no longer doing consolidation loans. Yet there's a great opportunity here for those who haven't yet consolidated their loans. Wait until after July 1 and you can fix your rate at 3.25%. That's tremendous.

Just know that trying to secure a loan for next fall will be like going through a funnel. Clark's advice is to start early. Take care not to borrow too much. Doing so can create a back-breaking financial burden in your 20s. Clark advises students to do college on a 3-year or 6-year plan. With the former, you take summer classes and eliminate 1 year of living expenses. With the latter, you work nearly full time and go to college part time. You also pick up great work experience and defray the cost of your loans along the way.

College kids are bombarded with an average of 4 phone calls and 5 mailings every month to get them hooked on credit cards, according to a new PIRG study. There's a feeding frenzy because teens are the most profitable of all customers for the banks that issue credit cards. It's unreal to Clark that university presidents and alumni groups are co-conspirators with the banks in trying to demolish the credit standing of our youth. Some cash-hungry universities even make deals with banks to provide them with personal student information and on-campus access to students.

The consequences of this are severe. Clark's senior producer, Kim, ran up $17K of lifestyle debt at college by the time she was 24. She didn't get it all paid off until she was 31. Meanwhile, Citibank and other lenders are being sued in the state of Ohio for handing out coupons for free sandwiches to students. But the catch was students had to apply for a credit card before the coupons could be redeemed. You as a parent have to guide your teens and teach them about the dangers of debt. This should not be a onetime talk; it needs to be an ongoing educational process. Get your own finances in order so you can teach by example.

The Internet provides a lot of great things, but there's also a lot of sewage out there in cyberspace. JuicyCampus.com is a new type of website where students can anonymously post all kinds of scurrilous things about each other at 50 colleges around the country. This site is being used to settle scores, and the damage to reputations done in the process is irreversible. The real rats are the people behind JuicyCampus.com, who don't provide any way for a post to ever be removed -- no matter how much of a lie it is. They just sit back and enjoy revenue from online advertisers who flock to the site to reach a college audience.

The Washington Post reports that Texas Christian University students have organized to contact advertisers and tell them to boycott the site. Pepperdine University, meanwhile, has asked that the site be blocked on their servers. The truth is that words can and do hurt. A cautionary tale about just how deep the wounds can go comes from the ad agency world. News recently broke that an ad executive killed himself, and many believe it's because of defamatory lies posted on AgencySpy.com.

The Internet is wonderful, but there is a certain level of anarchy when you have the ability to hurt others. Clark wouldn't mind sites like JuicyCampus if they weren't anonymous. But the cowardice in the anonymity as it exists today is awful, and it poses a long-term threat to free speech. If you have kids at college, have a conversation and prep them for the ugly new world of online campus gossip sites.

For years, it's been an article of faith that high-school seniors have had a hard time getting into their first choice when it comes to college. But that may be coming to an end because of demographics; the echo baby boom is just about over and schools are looking at prospects of a greatly diminished student body over the next generation. Going forward, it will be far more favorable for your children and grandchildren to get into the schools they want -- instead of having to settle on a safety choice. For many years, public colleges were more affordable than private ones. But that's set to change too. When Clark was visiting potential schools with his daughter, they checked out the campus of one private school that offered a steal of a deal on tuition. Clark wishes his daughter wanted to go to that school, but alas, she had a different campus in mind.

Clark's daughter is a freshman and he's floored by the outrageous prices he has to pay for her textbooks -- even if they try to get the books used. The average student spends $575 to use his or her books for about 12-15 weeks -- then they become yesterday's news. One college has a brilliant solution to this annoying problem. Northwest Missouri State University is now renting textbook to students; the average bill for a semester or term is $75.

Several years ago, Clark went on the air talking about how it's a racket when professors get paid to revise their textbooks annually and push the updated editions in course syllabi. He heard from an angry science professor saying educators would be shortchanging their students if they didn't update -- because the field of science evolves so rapidly. That may be true at the graduate level, but not at the undergraduate level. Most undergrads are just trying to decide what they want to do for a career. To make underclassmen buy an updated textbook every year is ridiculous. Clark hopes Northwest Missouri State's model gains traction across the country.

Clark recently told you that there have been changes in student loans laws. Now the latest news is that the student loan market is drying up as fallout from the housing crunch. Michigan has completely shut down its student loan program. The reason here is that student loans are funded by bonds or securities, the trading of which has been hurt by our slowing economy. So the credit squeeze is affecting areas that are completely unrelated to housing.

Clark has a thought that may seem callous to some. He believes there's an advantage to student loans being difficult to get. Think about it: College costs have grown way beyond the rate of inflation because it's been too easy to borrow for school. But if students have a hard time getting money, then schools will be forced to rein in their spending and become more efficient. They'll also have to deliver an education at an affordable price. Previously, the unlimited spigot of student loan borrowing provided no incentive for them to do so; the very oversupply of money fed the rise in college costs.

The teller window on student loans is being closed slowly but surely. Lenders are worried that they can't sell off the loans because of the slowing economy. They also have data telling them which schools have the highest default rates. It goes without saying that they won't make loans at some schools based on that information! The upside here is that it's getting easier to get rid of existing student loans. Clark's advice is to wait until after July 1 and refinance your federal student loan when the rates reset. The best guess is that rates for federal loans subject to consolidation will be between 4-5 percent. Compare that to consolidating now; when you'd get a rate that's more than 8 percent. So keep paying at your variable rate and lock it in low over the summer. Meanwhile, a new law guarantees full loan forgiveness for those who go into public service and make 10 years of on-time payments. There's more information available at the U.S. Department of Education's website or in Clark's own guide to the College Cost Reduction and Access Act.

We've had a train wreck in higher education with the cost of tuition going up way beyond the rate of inflation. The increases have been extraordinary because colleges are usually semi-closed institutions that are not affected by capitalism. But now even wealthy families can't always afford college for their children. So Harvard and other elite schools have developed new sliding scales for tuition based on family income. Harvard's income cutoff is $180K/year, which would cover 95 percent of all families in the United States. Families won't be expected to pay more than 10 percent of their income regardless of overall tuition costs. The bulk of the costs will be paid by the school's huge endowment funds.

The top 5 percent of Americans will still have to pay big bucks to go to school, but the idea is that top schools shouldn't be just for the filthy rich. Princeton, Penn, Swarthmore, Dartmouth and Duke are also doing these sliding scale plans. It used to be that you couldn't go to an elite school without scholarships. The only alternative was to borrow oneself into oblivion. We've had calls from people with more than $100K in student loan debt, which is an incredible handcuff as your start your professional life. Also, many of the traditional scholarships were red light/green light based on your income. This new model is more like having a rheostat in your home that gently adjusts between the two extremes.

Parents with prospective college freshmen living under their roofs have turned to hiring college coaches to help their children gain entry to their dream schools. These coaches are part advisor and part magician because they promise to boost your child's acceptance prospects well above the usual suspects of safety schools. Business Week recently reported that some parents pay up to $40,000 for these services. It's also not uncommon for parents to pay an average of $15,000-$20,000 to help their children gain coveted places in top-tier universities. So are these investments really worth it? Well, Clark admits that he has a big-time bias: He knows plenty of people who went to mediocre schools and have gone on to be very successful in life. So he believes that simply having a degree is a more important predictor of success than going to a particular prestige university. Of course many parents feel the opposite and want to get their children into a specific school. But Clark thinks it's crucial to just get the education and not worry about any particular school name being on the diploma.

One of the hottest areas of Clark's site is his 529 Plan Guide. He's now made his fourth revision to this invaluable resource so that you can continue being "Clark Smart" when saving for a child's education. The idea behind 529 Plans is that the money you save will grow tax-free and can be spent tax-free on college education. If the child doesn't go to college, you can transfer the plan to another child for free without being taxed. If there are no other children you want to have the money, you can use it yourself. But beware that you'll pay a 10 percent penalty plus tax if you take this latter option.

All 529 Plans must have state sponsorship, but you're not limited by where you live as far as making contributions. You may, however, enjoy a state tax deduction if you select your own state's plan. 529 Plans are great when they're purchased correctly. But a lot of money goes in the wrong way through commissioned salespeople, banks, stock brokers and financial advisors who take a cut of your money. You should buy 529 Plans directly through the state that sponsors them. If your state isn't listed in the "Honor Roll" section of Clark's guide, pick a state from his "Dean's List." There you'll see plans from Utah, Iowa and New York. These are the lowest-cost plans available across the board. Utah is by far the single best plan in the country. One of the most unique things about 529 Plans is that they're all very flexible. You can put in as little as $15/month or a rich grandparent can pop in as much as $60,000 all at once. One caveat from Clark: Do not save for your child's college education until you save for your own retirement. There are no scholarship plans for retirement!

University education is becoming so terribly expensive. Clark was recently talking to parents who had a sophomore at Washington University in St. Louis and another family who had a freshman at Boston University. Both families spoke about the sticker stock of tuition. But what if you could get a first class college education for nothing? University of California, Berkeley has put 300 courses online for free. There is full video posted on YouTube, and Berkeley plans to add more curriculum for free. There's no college credit available, so these videos are really for life-long learners who just love education. In essence, it's like auditing a class. You watch the instructor or lecturer on your computer.

Clark recently took his oldest child to college for the first time and came away with some musings about how much things have changed since he was in school. Back in the day, he went to campus with one trunk full of belongings. At his daughter's school, students showed up with fridges, microwaves, coordinated bedspreads and more. He even saw one student carrying in a 36-inch LCD hi-def TV. Meanwhile, everyone has cars on campus these days. When Clark was studying, freshmen weren't allowed to have vehicles. Sophomores could do so only with parental permission or if they had a job. Of course it goes without saying that when Clark was in college, there was no Internet, computers or cell phones. He used a typewriter and had one professor who did not allow papers to be turned in with any corrected letters on the page. If you made a mistake while typing -- even in the last sentence -- you had to start all over again.

Clark has one bit of advice for anyone who doesn't want to pay those hefty prices for college textbooks. His daughter's roommate spent $580 on books for class, while his daughter has to pay $135 for one book! Clark says to shop around for the books online. CheapestBookPrice.com, AllBookstores.com, Biblio.com, AbeBooks.com, A1Books.com, BookFinder.com, ValoreBooks.com and Textbook411.com are all good sites for this purpose. Amazon is also doing big business selling college text books, and there are some British book websites that offer science textbooks for about 40 percent off the domestic price (even when you factor in the cost of international shipping.) Don't buy your books before class starts. Go the first day and ask your professor if you can buy a prior edition and try to find it used.

This was a year of embarrassment for colleges who were in cahoots with unethical banks and other lenders. First there was the whole student loan scandal. Now The Milwaukee Journal Sentinel reports that there are some dubious practices taking place on campuses related to student credit cards. Many schools get kickbacks for allowing there to be an "official bank" on campus. Such financial institutions offer outrageous terms and conditions on their credit and debit cards for students. The universities do this to get money under the table money from the banks. These arrangements are technically "partnerships," according to the schools. But the fees on the cards are almost double those available in the general marketplace. Clark believes a full investigation is necessary. As he says, if university officials have been getting bribes, they should go to prison. This is yet another thing for parents to worry about when packing their kids up for college at the end of the summer. Clark says to shop around on campus for a bank or credit union that's available to faculty, staff and students -- instead of just going to the preferred campus lender where the university sells out its students. What is going on in the banking world that offering bribes and kickbacks are becoming so routine??

Bad news continues to come out about the student loan scandals. The latest reports claim that high-level employees at the Department of Education were involved in impropriety. This scandal reaches down deep in the DOE, yet the secretary of the department denies any wrongdoing. The fact remains that taxpayers are out perhaps more than $1 billion because lenders were overcollecting on student loan payments and we – the taxpayers – subsidize those loans. There are so many levels to this story, and the truth will come out in due time.

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The other shoe to drop this week involves the release of the personal and financial information of 60 million students. The DOE has been allowing banks to go on school databases and snoop for this information. It’s not just ethically wrong; the potential risk of ID theft is huge. It’s clear that the entire student loan system needs to be revamped and made to answer for this corruption. In the meantime, remember to shop for your child’s student loans. And never rely on the lenders recommended by the school’s financial aid office. They simply can’t be trusted anymore.

Clark has great news for you and your wallet! The U.S. economy has defied all odds and continues to grow beyond what anyone expected. Normally, when the economy takes off, so does inflation. But we are in what economists refer to as the “Goldie Locks Economy.” The housing market is awful and the car market is struggling severely. In addition, builders reporting horrible statistics. They’re getting cancellations on about 50 percent of homes. So, consequences for builders and their workers are rough. But in spite of all that, we have continued to defy gravity. Wages are moving along quite nicely, for example. So, if employers are being stingy with you, now is the time to look around. Your skills may be in demand elsewhere, and you could work for a more appreciative employer. When the economy is reporting these great numbers, see it as your wake up call. Also, people graduating from college this spring will have the luck of the draw. The job market is the best it’s been in years, so those folks are sitting pretty. Just be careful responding to job listings that may be scams.

College is more valuable than ever these days, according to a recent report in the San Francisco Chronicle. And for the class of 2007, that statement is even truer. The job market is better than it’s been in years for college graduates. Large employers expect to increase their hiring of college graduates by 17 percent compared to last year. Over the next decade, there will be 14 million new jobs out there for people entering a profession for the first time. In fact, colleges are having to move their career days and fairs to larger facilities because so many companies are trying to recruit college grads. It will continue for those students who still have a few years left, as well. So, if you started college but never finished, now would be a good time to get back in school and get that degree. Maybe work during the day and take classes at night. We are entering a “golden age” of employment and the money you’ll make with a degree will be much higher comparatively.

The number of people getting degrees online is growing by leaps and bounds with about two-thirds of universities now offer some type of degree online. And statistics predict that one in 10 students will complete an online degree in the next few years. Online degrees are fine, but Clark wants you to know the risks. There are rogue outfits out there, claiming to offer degrees that are really just out to steal your money. They run the gamut from non-accredited schools that will earn you a useless diploma to criminal organizations that could be out to steal your identity. Congress legalized these “diploma mills” when it passed a provision allowing them to tap into the federal student loan program. So, you could enroll in what you think is a university and take classes online. When you try to transfer credits, they don’t count and you have lost your money. It was done entirely because of corruption in Washington involving for-profit schools. There are about a half a dozen accreditation bodies, so check with them before you enroll at a school. Just because a “school” can lend you money doesn’t mean they are accredited.

Boston College is trying something great and Clark wants you to know about it. The college has basically adopted an elementary school in the area that is dilapidated and needs care inside and out. Students and teachers visit the school, get involved with the young people there and hopefully will help upgrade the building with funds the college has made. If you’re in school or your kids are in college, ask them how they can get involved and help young people who might not have the opportunity to go to college.

Clark took a call recently from a man named Alan who had signed up with “BabyMint” to earn credits toward his kids’ college education. BabyMint is a company that helps you earn credits, and in turn money, toward college expenses when you buy products from BabyMint sponsored companies. Well, Alan runs all of his credit card transactions through his BabyMint account and has racked up a lot of money for his kids over the years. But when he tried to claim the money, he had quite a bit of trouble and called the show. Kim, one of Clark’s producers, went to work on this issue to find out what happened. First of all, she experienced horrible customer service from BabyMint as well. Alan wanted to know if the company was still in business and if his money was gone. On that issue, the company is fine. BabyMint was recently purchased by one of the big monster mega banks, so it will not be going out of business anytime soon. When asked about the issue with Alan’s money, the company said the process was delayed because Alan wasn’t sure how he wanted his money. Alan now has his money, but it should not have been something Clark needed to address. So, consider Alan’s story when you’re deciding which program to choose. The other option is UPromise.com, which offers the same incentives as BabyMint. Good luck!

Bankrate.com recently listed the cheapest and most expensive private colleges out there. The gap between the two is amazing. With private colleges, the tuition difference is a 7-to-1 ratio. Clark thought the most expensive college was either Boston College or Boston University. But actually the most expensive college is Sarah Lawrence. The tuition alone is $32,000 a year. The second most expensive school is Kenyon College in Ohio, followed by Trinity College in Hartford, Conn., and George Washington University in D.C. At the other end, rates are $4,600 a year to about $10,000 year. But the interesting part is that there are several public colleges that are more expensive than the cheapest private schools. So, private schools are not always going to be out of your range.

A new report out today from College Board shows that the average tuition at 4-year colleges is up 7 percent last year at public colleges and 6 percent at private colleges. Average tuitions are $12,000 a year at public colleges and just under $30,000 a year at private schools. The increases continue to stretch beyond the rate of inflation, putting a terrible burden on families. In addition, upon graduation students at public schools rack up about $16,000 of debt while private school attendants are about $20,000 in debt. The good news, of course, is that it’s the best kind of debt you can have because it’s an investment in your future. Clark recommends that students spend the first two years of college at a community school to save money. It’s not the same experience as a 4-year school, but the classes are the same and the instruction is much more personal.

Today Clark talked with Ben Kaplan, recent college graduate who has thoroughly researched scholarships and fellowships and set up his own Web site. He did the research originally when he was applying to Harvard and his family was worried about the cost. But he’s turned it into a resource for high school and college students, as well as older people who are out of school but want to go back. His site is scholarshipcoach.com. It has tons of info about lots of other sites with information and is a tremendous resource.

There is a special student loan forgiveness program out there for people who want to become teachers. There are a few requirements and hoops to jump through, but the Taxpayer Protection Act will make some future teachers very happy if the President signs it into law. Congress has already passed the bill. Under the program, a teacher can erase up to $17,500 in student loan debt. Applicants have to teach specific courses, including math, science or special education. Applicants also have to be “highly qualified” and teach in less desirable school districts in order to be eligible. Many teachers may already meet all of those criteria and not even know it. The traditional amount of forgiveness was $5,000. Now it’s $17,000. So, that is a huge improvement. Learn about it here: ed.gov. The idea of wiping out student debt is not a fantasy anymore!

If you are planning to go back to college or are already back in school, you’re probably concerned with which professions will earn you the most money. A good salary is important, it’s true. But Clark wants you to do something you enjoy because it doesn’t matter how much you make if you hate your job. O.K., now onto the nitty gritty. The top paying job is chemical engineering, according to Money Magazine. The average starting salary is just under $53,000. The next three are also in the engineering field: computer ($51,000), mechanical ($49,000) and industrial ($46,000), respectively. Information science ($42,000), MIS ($42,000), civil engineering ($42,000), accounting ($41,000) and economics/finance ($40,000). So, engineers clearly dominate the field, and there is a shortage of people with this training. If you feel you’re in a dead-end job consider going back to school. In the second tier, nursing has become a very high paying job. Business administration, marketing, political science are all in this level. The toughest majors in terms of salary are English, liberal arts and psychology, which is the lowest paying of all.

Do you have a son or daughter in college or are you thinking about going back to college? One of the biggest ripoffs in college is the cost of textbooks. The textbook companies practice what’s called “planned obsolescence,” which means they come out with new editions of books just so they can charge more for them. Essentially, the publishers move things around in a book in order to make it look like a new edition and then sell it for outrageous amounts. It’s like a cartel because it evaporates the used book market. It’s a total racket. The good news is that the Internet has made things cheaper for us, and textbooks sold overseas are usually much less than they cost in the States. Clark recommends buying a past edition of the book, especially in a course where the information doesn’t change much. He thinks college age people can follow along with the reading assignments even though they are in different parts of the book. The cost is drastically less. An old biology textbook, for example, costs $3, whereas the new edition costs $80. Christa disagrees. She thinks students who have an old book can’t follow along and may not be able to do a certain assignment if they don’t have the right book. If you agree, why not try sharing a book. Or at least check out the online sites such as amazon.co.uk. There are ways around this if you are smart.

How much does it cost to go to college today? At a state-supported school, it would cost you about $5,000 a year. For a private school, it jumps to about $20,000 a year. When you factor in living expenses and books, it jumps to $11,000 at a public school. A private college is estimated at $27,500 each year with everything included. That’s more than $100,000 for four years. When people hear these figures, their eyes pop out of their heads, especially the parents of a young child. So, what about a two-year community or junior college? These schools are much less expensive – at about $2,000 a year – and they are just as good for the first two years. Students can get through two years for about $4,000. Then, they can transfer to a state-supported or private school and graduate there. Okay, so you miss out on two years of social life. But it will help you immensely in the long run. And the attention you get is very personal at junior colleges. Classroom sizes are usually much smaller, and the courses are basically the same. Think it over!

Colleges are being hit with crime. Record numbers of crimes are being reported at campuses all over the country. It’s not that college students are crooked. But temptation is huge these days because of all the gadgets out there. There are Palms, PDAs, DVD players and all kinds of other toys that some kids have and others want. Laptops are the hottest item for thieves. When Clark went to school, having a television in your room was a big deal. As a result of all the crime, some companies are making tons of students who buy special foot lockers and other locking devices. So, remember that your child doesn’t need the latest, greatest laptop. These should not cost more than $700, and you can probably get them for much less. Rental insurance is also a good idea, in case someone breaks into students’ apartments or homes. And make your child aware of the theft going on, if they don’t already know.

Parents often must send their kids off to college, but what are the chances they’ll come back home after graduation? About two-thirds of college graduates return home to live with Mom & Dad after college. And one in four of those will live with the parents for an extended period of time, usually longer than a year. Adolescence in modern America now stretches to age 24 today, according to recent reports. Up until World War II, adolescence ended between 16 and 18 years old. So, we’re “growing up” much later today. Some people welcome their children home after school. But not all parents are up for it. So, make sure you have discussed it thoroughly and that you establish rules that you’re comfortable with if your child returns home. Another alternative is to work for the federal government in exchange for “student loan forgiveness.” Depending on the kind of job you get and how long your work, you can get rid of some or all of your student debt. You can learn more about the “Student Loan Forgiveness Program” at finaid.org.

Clark has mentioned studies that show how much additional money you’ll make over your lifetime if you have a college degree or advanced degree. There is a humongous difference in earnings, usually between 40 and 60 percent more with a college degree. But Clark recently saw a report from the Bureau of Labor & Statistics that makes the strongest case for why people should get a college degree. The nation’s unemployment rate for people holding college degrees is down to 2 percent. For those without college degrees, the rate is between 6 and 7 percent. The recent recession was very hard for college-educated workers who lost their jobs. But overall having a college education is invaluable in the long run. Also, colleges have become obsessed with keeping in touch with alums and offering job placement services to former graduates. So, there are great networking and career services through your alma mater. They will ask for your donation money in return, but that's fine. You are getting something out of it too.

Clark read a story in the New York Times about high school students and the pressure they feel to get into the “right” college. There are now college admission prep camps, and parents are paying thousands of dollars for their son or daughter to go. During the programs, they work on writing essays and interview tips, among other things. Parents are making it a life or death situation and it’s unnecessary and unfair. Parents don’t need to spend thousands of dollars and kids should not be force to spend part of the summer learning how to write a college application essay or how to do better on the SAT. There is a happy medium between kids who goof off all day and kids who are in the pressure cooker to get into the best schools out there. It’s great to have a son or daughter go to Harvard or Stanford. But in the big scheme of things, what you do with your life and how you treat others is much more important than where you go to school. Clark attended American University, and he never had the desire to go to an Ivy League school. Look where he ended up. Kids need an opportunity to have fun and play sports. Parents need to consider whether they’re looking out for the best interest of their kids or simply looking for bragging rights.

Clark recently read a study from the Economic Policy Institute on the value of having a four-year college degree. About 25 percent of Americans have a college degree. The other three-quarters stopped at high school or before, or have had some college. How much more money do college grads make per year compared to high school graduates? For women, it’s nearly 50 percent more. For men, it’s more than 40 percent more. About a generation ago, the figure was more like 20 percent. So, earning potential has more than doubled and will continue to increase. In addition, people with college degrees have a three percent chance of being unemployed today. For high school graduates, the figure jumps to 8.5 percent. So, college degrees continue to be worth so much in terms of mobility and earnings. Just remember to do something that interests you and something you enjoy. The paycheck doesn’t matter as much as the pleasure you get from the job.

With the job market being so transparent at the moment, Clark encourages people to go back to school to do what they love. Traditional universities have only recently started adjusting to the non-traditional market, meaning students outside the core 18-24 market. But one company has had tremendous success serving the non-traditional market of mid 20s to mid 40s. It’s the University of Phoenix. Years ago 60 Minutes did a profile on this company that was terribly negative. Yet, the program continues to attract student and make massive profits. Last year alone, this company made a quarter of a billion in profits. Most universities depend on the kindness of alums and many charge an arm and a leg in tuition. The endowment of Harvard University is the only one that beats the market value of the University of Phoenix parent company stock. The program is now in 29 states across the country. Traditional universities despise UOP because they claim an education with a discount can’t be a good education. It’s just not true. But if you are a non-traditional student who would like to learn a new skill, going to a non-traditional university may be for you.

If you have a son or daughter in college or you are in school yourself, you know that textbooks are a huge expense. It’s not uncommon for books to cost $1,000 a year. But is it really necessary to spend that much money? Maybe not. The Public Interest Research Group conducted a survey among college professors and more than three quarters of them said new textbooks are not justified. Publishers will often put out a new edition just to make money. The new edition will have no new value to the student, but the publishing industry is basically trying to put the used text book industry out of business. Students go online looking for a book and they see all kinds of older editions on sale at great prices. But they buy the new edition because they think they need it. You should ask your professor if it’s okay to buy the previous edition. There will be a few areas of the book that are different or out of order, but 8 out of 10 professors say you’ll be fine. Check out half.com and overseas sites such as amazon.co.uk and bookcentral.com for great used textbook deals. How much will you save? If you buy in a college town, the average text book is $202. If you buy a used copy, that same book is $64. Don't throw money away you don't have to.