College Return on Investment

When people talk about the value of a college degree, they mean different things. A report last year by Georgetown University’s Center on Education and the Workforce pegs the median value of a four-year bachelor’s degree at $2.3 million, which is the average earnings for a degree holder employed full-time from ages 25 to 64. The value of a college investment calculated by PayScale, a Seattle-based compensation data company, for Bloomberg Businessweek is a small fraction of that amount, and to understand why, you need to know a little bit about our methodology.

The PayScale methodology differs from most others in several key respects. Instead of using lifetime earnings, it starts with earnings over a 30-year period. From that figure, we deduct the earnings of a typical high school graduate (since most people who don’t go to college would still have earnings, albeit at a much lower amount). In our return on investment (ROI) calculation, the “investment”—or total net cost—is the amount spent on college over the actual time it takes students to graduate, whether four, five, or six years. Finally, our ROI figures are adjusted using each school’s graduation rate. After all, if you don’t graduate, you’ve made an investment with very little financial return. The result is a return that reflects what incoming students can reasonably expect from their investment.

[More from Businessweek: Student Loan Debt, With Little to Show for It]

In 2012, both the cost of a college education and graduate earnings took a bite out of the 30-year college ROI, which fell 2.3 percent to an average of $353,182 when comparing the same set of schools in 2011 and 2012, and fell 7.8 percent to $333,455 when comparing both lists in their entirety, 691 schools in 2011 and 853 schools in 2012.

While our methodology underwent significant changes last year and this year, those figures represent an apples-to-apples comparison. On the cost side, they reflect the college sticker price for tuition, room and board, and books, without financial aid factored in, which increased 6 percent. On the earnings side, they reflect the earnings of college graduates (which decreased by 1 percent) in excess of the median pay of a high school graduate.

Two important changes to our methodology in 2011 and 2012 had the net result of reducing ROI dramatically. Since many students receive grant aid from their institutions, starting last year we began deducting average grant aid from college costs, which has the effect of increasing ROI. But starting this year, we made a second change that has the opposite effect: using 75th percentile high school graduate pay (instead of the median) to calculate how much each college’s graduates earned over and above the pay of high school graduates. We believe the 75th percentile more accurately reflects the pay of individuals capable of winning acceptance to college or who spent a few years in college before dropping out.

[Related: College Degrees With Highest Unemployment]

Looked at that way, ROI is only a fraction of what it was last year: on average, $152,114 for all 853 schools on our list, including two separate ROI calculations for state institutions using in-state and out-of-state tuition. Private schools did far better than publics, with 30-year ROI of $222,047, easily surpassing public schools for students paying in-state tuition ($122,987) and out-of-state tuition ($100,155).

Nearly a third of the top 30 schools were engineering schools, including the top three institutions: No. 1 Harvey Mudd College, No. 2 California Institute of Technology, and No. 3 Massachusetts Institute of Technology. All three schools had 30-year ROI well above $1 million, a claim only 11 schools could make. On average, engineering schools had ROIs of $603,362, more than double the ROI for liberal arts schools ($245,943), more than triple that of business schools ($141,014), and more than 26 times that of arts and design schools ($22,328).

The only schools that fared better than engineering schools were those in the Ivy League. Seven of the eight Ivies are in the top 15, and the average ROI for all eight was more than $1 million. While costs for these schools are high, several factors worked in their favor, including generous financial aid and excellent graduation rates—both in terms of how many students ultimately graduate and how long it takes them to do so. The weighted net cost to graduate was $84,241—less expensive than half the schools on the list, and half the cost of the most expensive.

[More from Businessweek: Best Undergraduate Business Schools 2012]

Schools in New York, California, and Massachusetts dominated the ranking, snaring nine, eight, and eight top-50 spots, respectively, with California and Massachusetts claiming half the top 10. New top schools were crowned in six states: Alaska, California, Florida, Illinois, Iowa, and Montana. In California, Harvey Mudd took over the top spot from Caltech (in the state and the nation). In Illinois, an elite private research institution, the University of Chicago, lost the No. 1 ranking to the University of Illinois at Urbana-Champaign, a state school with far lower costs.

Overall, the cost to receive a degree from the schools on our list averaged $85,276, a figure that reflects not just the tuition sticker price, but also average grant aid and how long it takes the average student to graduate. Private schools ($99,206) and out-of-state students at public schools ($98,538) paid the most, followed by in-state students at public schools ($55,861).

One reason why our ROI calculations differ from many others is that ours incorporate graduation rates in two different ways. First, each school’s ROI for graduates is adjusted, using its six-year graduation rate, to reflect the risk of not graduating. Second, the percentage of graduates who receive their degrees in four, five, or six years is used to determine college costs. All other things being equal, schools that graduate a large percentage of students, and who do so in four years, do a good job of holding down costs and as a result fare well in our calculations. Those who don’t, don’t.

On average, all 853 schools in this year’s ranking only graduate about 59 percent of their students, and less than two-thirds of those receive their degrees in four years. For the top 50 schools in the ranking, graduation rates are a big differentiator. On average, they graduate 88 percent of their students (compared with 51 percent for the 50 lowest-ranked schools) and 84 percent of graduates receive their degrees in four years (compared with 61 percent for the lowest-ranked schools).

Of course, it doesn’t hurt that many of the schools with the best ROI are the kind of highly selective elite private research universities with sterling reputations whose graduates tend to fetch the highest pay. Average annual pay for all the schools on the list this year was $61,426. Of the top 50 schools with the best ROI, 38 also have top-50 graduate pay, with alumni earning $81,000 or more per year. Six of the 10 schools with the highest graduate pay were either engineering or Ivy League institutions.

[Related: The 1% of the Student Debt Crisis]

On the other end of the spectrum, there are 191 schools where graduates had negative ROI. At Fayetteville State University in North Carolina, where only one out of three students graduates in six years, in-state grads earned $289,000 less over 30 years than a high school graduate earning at the 75th percentile, after deducting the cost of the degree. For out-of-state graduates, the figure is $338,000.

At all 191 schools with negative ROI, graduates actually fared worse than those who dropped out after a few years—the financial benefit of earning a degree was so meager that the added expense it entailed was simply not worth it. At these schools, at least from an ROI perspective, dropping out was the smartest thing to do.

Original Post: http://finance.yahoo.com/news/college-roi--what-we-found.html?page=3

5 Ways to Fund a College Education

According to CNNMoney, the average tuition cost at the average public university rose over 8% in 2011. The following tips are designed to dissuade you from skipping college because you think you can't afford it, and to show you some strategies for making higher education expenses fit into your budget.

Choose Your School Go to an in-state public school or a public school in a surrounding state that has reciprocity for reduced tuition, which will be much lower than rates at a non-reciprocal out-of-state public school or a private school. If you are not satisfied with the quality of the state schools where you live, consider moving to a state with schools you like and establishing residency.
To establish residency, you will have to meet strict requirements that vary by state and sometimes even by school - but for the savings, it may be worth it. Most states require you to live in the state for at least one year in order to be eligible, but there are other criteria to meet as well. In California, for example, it is very difficult for students who don't have a parent living in California to establish residency before their mid-20s. In addition to living in-state for 366 days immediately prior to requesting resident status, potential students must provide objective documentation demonstrating an intent to make California their permanent state of residence, such as a driver's license, ownership of property or steady employment, as well as financial independence.
If you can wait it out and meet these criteria, then you can attend quality schools at in-state rates.
Another money-saving strategy that doesn't involve postponing college is to apply to schools that have a shortage of people like you. People like you could be people interested in your major, people from your state, people with your ethnic background, people who are as smart as or smarter than others applying to the school, people who play the unusual instrument you play or any other number of traits. Schools where you'd be a unique addition may give you scholarships.

Think About Cost of Living Keep in mind that housing and other living costs will vary by location, especially if you choose to live off campus. An apartment in New York City will be much pricier than an apartment in the Midwest. Also, the college where you obtain your undergraduate degree can sometimes influence where you will end up working and living after school. If possible, choose a location where you'd actually want to live, where the cost of living is affordable, and where your school will be a recognizable name that will allow you to get more mileage from your diploma. UCLA may be considered a good school in the West, but may not be held in the same high regard in New York.

Don't Get Just Any Job to Pay for School Make your job count by sticking to high-paying work. To find high-paying work, especially for summer jobs when you'll be free during business hours, seek out office jobs through temp agencies. Temp agencies do most of the job hunting work for you, and the office jobs they offer tend to pay above minimum wage, provide work experience closer to the situations you'll encounter post-college, and may give you connections that will help you land a meaningful internship or your first salaried position. Also, despite what the name implies, you can find both short and long-term jobs through temp agencies.
If you can't get a high-paying job, get a job that will keep your living expenses down, such as working in a restaurant where you get free food. If you work at a bakery, for example, any unsold goods at the end of the day may be fair game for employees since the business can't sell day-old bread. Another possibility is to find a campus job that offers perks. If you can get a job in your school's residential life office, you may be able to get a discount on housing during the school year or the summer.
If you're still in high school, start working now and save all your paychecks for college. You're still living at home; you probably don't have high living expenses chomping into your earnings like you will later on. Also, see if your high school has a program that will allow you to leave school at noon every day to go to work during your senior year. This will increase your job options, including opening up the possibility of the aforementioned office job, and allow you to work more hours.

Be Flexible with Your Schedule Some college programs, such as engineering, are more intense than others, making it quite difficult to work while in school. For these programs, consider attending school part-time so you can still work part-time. Even if you're not in an overly demanding program, attending school part-time can help you spread out tuition costs and free up more time to work. However, part-time students may not have the option of living on campus, which can make it more difficult to be involved in the social aspects of college.

Wait Another option is to take a year or two off after high school to work full-time so you can save up enough money to make school affordable. If you don't want to postpone college, you could take your classes during evenings and weekends in order to work full-time during the week. This strategy may take more than four years to complete, but it can be easier to budget. One argument against this approach is that many people find it easier psychologically to go straight from high school to college because study habits are still ingrained.
With education costs as high as they are and certain financial situations that fall outside the norm, even some middle-class parents may not be able to make significant contributions to a child's higher education costs despite what the formulas insist.
If you have a lot of patience, you can wait until you become an independent student as defined by the Higher Education Act, which has a different definition of "dependent" than the Internal Revenue Service (IRS). If you identify with some of the following you may qualify as an independent student.

• 24 years or older by December 31 of the award year


• Orphan or ward of the court


• Armed Forces Veteran or serving actively


• Graduate or professional student


• Married


• Dependents other than a spouse


• Student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances

Being an "independent student" under the Higher Education Act could make you be eligible for more financial aid because the financial aid formulas applied to this group won't take parental contributions into account.

The Bottom Line Some of these measures are purely practical and don't take into account many of the intangibles of the college experience, such as the learning experience of freshman dorm life. Before you start on your college plan, consider everything you want to get out of college so that you don't have regrets later. Although you may have to make some sacrifices that your peers don't, such as starting school later or staying in the state, you can still have the experience you want and attain a degree that will lead to a financially successful and stable future.

Original Post: http://finance.yahoo.com/news/5-ways-fund-college-education-204748990.html;_ylt=AuTzh2NnbN7krCyQ_MYkoZvz6IdG;_ylu=X3oDMTNoMWI3c3FkBG1pdANGaW5hbmNlIEluZmluaXRlIEJyb3dzZSBTcGxpdARwa2cDNDg5OTZiMjktZDNiNi0zMGJjLWFhNWItNGU5ZDE3MDdhM2QzBHBvcwNsMgRzZWMDbWVkaWFpbmZpbml0ZWJyb3dzZWxpc3R0ZW1w;_ylg=X3oDMTNqNDVub244BGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDM2M4MmMyMjktMmI4OC0zYTRkLTgwM2QtMTQ0ZDQ2MWUwYmFjBHBzdGNhdANwZXJzb25hbGZpbmFuY2V8Y2FyZWVyLWVkdWNhdGlvbgRwdANzdG9yeXBhZ2U-;_ylv=3

College is not for Everyone

A person who compares the annual earnings of college and high school graduates would no doubt conclude that higher education is a good investment—the present value of the college earnings premium (the better part of $1 million) seemingly far outdistances college costs, yielding a high rate of return. But for many, attending college is unequivocally not the right decision on purely economic grounds.

First of all, college graduates on average are smarter and have better work habits than high school graduates. Those who graduated from college were better students in high school, for example. Thus, at least a portion of the earnings premium associated with college has nothing to do with college per se, but rather with other traits.

Second, a goodly proportion (more than 40 percent) of those attending four-year colleges full-time fail to graduate, even within six years. At some colleges, the dropout rate is strikingly higher. While college students sometimes still gain marketable skills from partial attendance, others end up taking jobs that are often given to high school graduates, making little more money but having college debts and some lost earnings accrued while unsuccessfully pursing a degree.

Third, not everyone is average. A non-swimmer trying to cross a stream that on average is three feet deep might drown because part of the stream is seven feet in depth. The same kind of thing sometimes happens to college graduates too entranced by statistics on averages. Earnings vary considerably between the graduates of different schools, and within schools, earnings differ a great deal between majors. Accounting, computer science, and engineering majors, for example, almost always make more than those majoring in education, social work, or ethnic studies.

Fourth, the number of new college graduates far exceeds the growth in the number of technical, managerial, and professional jobs where graduates traditionally have gravitated. As a consequence, we have a new phenomenon: underemployed college graduates doing jobs historically performed by those with much less education. We have, for example, more than 100,000 janitors with college degrees, and 16,000 degree-holding parking lot attendants.

Does this mean no one should go to college? Of course not. First of all, college is more than training for a career, and many might benefit from the social and non-purely academic aspects of advanced schooling, even if the rate of return on college as a financial investment is low. Second, high school students with certain attributes are far less likely to drop out of school, and are likely to equal or excel the average statistics.

Students who do well in high school and on college entrance exams are much more likely to graduate. Those going to private schools may pay more in tuition, but they also have lower dropout rates. Those majoring in some subjects, such as education or one of the humanities, can sometimes improve their job situation by double majoring or earning a minor in, say, economics.

As a general rule, I would say graduates in the top quarter of their class at a high-quality high school should go on to a four-year degree program, while those in the bottom quarter of their class at a high school with a mediocre educational reputation should not (opting instead for alternative methods of credentialing and training).

Original Post: http://www.businessweek.com/articles/2012-04-09/why-college-isnt-for-everyone?cmpid=yhoo

6 Steps to Getting Anything Done-- The Buried Life

The Buried Life Bros

Once again, the guys from the Buried Life have a ridiculously motivational post on their tumblr. Check it out, read up, and cross some things off of your list.

6 Steps

After 6 years of crossing things off our list we’ve noticed some patterns. Whether it’s playing ball with Obama or writing a #1 New York Times Bestseller, these are the 6 steps we’ve used to cross anything off our list:

#1. Stop and think about it. Really think about it.

What is it that you really want to do with your life? Start a business? Reconnect with an old friend? Dive to the bottom of the ocean? Smoke a cigar with Castro? Forget what you think you should do, what excites you? What feels impossible? Be honest with yourself. Your answers don’t need to make an impression on anyone but you.
For many people, the four members of The Buried Life included, the impetus to make a life change only comes with crisis. The summer before we started The Buried Life, I was struggling with depression; Dave was struggling with his weight; Duncan had recently lost a close friend; and Jonnie was just plain angry and disillusioned with our generation (“No one protests anymore,” he used to say). The four of us were so beaten down that we had no choice but to reevaluate what was important to us. Our project grew out of that frustration. Sometimes it takes a debilitating low or a crushing loss to snap you back to reality, but don’t wait for it. Ferris Bueller put it well: “Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.”

#2. Write it down.

Simply put, it’s not real until you write it down. And by that I mean, take your dream and turn it into a project. Dreams have a funny way of staying dreams. But a project is something that needs to be done. Approach it as you would any other item on your daily or weekly to-do list. When you have a deadline— a presentation, a grocery list, a birthday gift you need to buy for someone–you find a way to get it done. Treat your dreams the same way. Add it to your list. You need to buy toilet paper. You need to spend the weekend in Paris with someone you love. When you write it down, you’ve taken the first step.
When we first started the project, we put things on the list almost as a joke. We didn’t think about whether they could actually happen; we just pretended that anything was possible. “#53: Make a TV Show” was a dream we’d shared since we were young. We had no filmmaking background and no connections in the business. And we lived on an island in Canada. We decided MTV in the States would be the place to have a show because it was the biggest and best platform we knew of for reaching people like us. So we wrote it down. And then we started filming it, because that was just the next logical step. Every step led to the next. Four years later, we were executive producers and creators of our own show on MTV.

#3. Talk about it.

Everyone knows someone who knows someone who knows someone.
After you’ve come up with your list and written it down, start talking. Tell everyone you know. Tell your parents’ friends. Tell new people you meet. Talk to your cabdriver. Talk to your boss. You never know whose uncle’s wife may be able to help you. And don’t just talk about it, but talk about it passionately. Enthusiasm is infectious, and people want to help when given the chance. Help can show up in the most unusual places, oftentimes the least expected ones.
We didn’t come from money. We had an idea, we talked about it, and people showed up in incredible ways help us. Our first lawyer was our parent’s friend who had heard about what we were doing and offered to lend a hand; our first manager was my godmother; I met my first Hollywood contact while traveling in Mexico; we cold-called local companies in our hometown to raise money for our first tour. Help often came in strange places. In 2007 we were able to finagle a five-minute meeting with Jann Wenner, legendary founder of Rolling Stone magazine, in order to discuss what it would take to cross #15 off our list, “Get on the Cover of Rolling Stone.” The five-minute meeting turned into a 45-minute meeting (after Jann threatened to kick us out and asked his assistant for a knife), during which time we talked about everything from protests to Bob Dylan to the difference between our two generations. We told him about some of our most ambitious dreams, including “#19: Write a Bestselling Book.” Jann was later instrumental in helping us get our book published—introducing us to a company where we met the smartest, most talented, best-looking book editor alive (hi Lia), who eventually offered us a deal.

#4. Be persistent.

Most people give up just before they reach their goal. We all hear “No,” a lot, but we’ve come to realize that “No” usually just means “Not now.” Be creative in your persistence. Don’t piss people off by nagging them—think of innovative and clever ways to grab their attention. Be different, and never say die.
Last year, we broke into the Playboy Mansion. We rented a giant stripper cake and decorated it like it was for the Willy Wonka–themed party. Two of us dressed up like Oompa-Loompas and hid in the bottom of the cake, which was then delivered to the back door of the Playboy Mansion in a rented delivery truck. Security saw our homemade Playboy logo on the cake and allowed it to pass through the gates. After waiting inside the cake for six long hours (peeing in bottles and filming in night-vision), we hatched out unnoticed and partied at the Mansion all night with free rein. Security assumed we were just very rowdy employees.
Playboy had no idea we had been in and out, or that we had filmed our first episode. But when we went back a month later to ask for permission to air, they said, “If you air the episode, we’ll sue you and have you charged with breaking and entering.” We got ahold of the company’s vice president, and he echoed that sentiment. MTV told us to move on and film another episode. Our production company said there was nothing we could do. In a last ditch effort we decided to send Hugh Hefner a handwritten letter along with the rough cut of the episode. A week later, we received this response from Mr. Hefner himself: “You can air the episode. Just know I’m not very pleased with you boys.” I always thought that crashing the Playboy Mansion was my dream, but getting scolded by Hugh Hefner was way better.

#5. Be ballsy.

The Buried Life boys playing ball with Obama.

The majority of people don’t go after their wildest dreams because they think they’re unrealistic. Tim Ferriss says it well: “Ninety-nine percent of people believe they can’t do great things, so they aim for mediocrity.” The level of competition is highest for realistic goals because most people don’t set high enough goals for themselves. But not only do you statistically have a better chance of achieving what may seem like an unrealistic goal, doing so fuels you. Once you feel the first high of accomplishing something major and seemingly unattainable, you want to go bigger and badder, and you force yourself to fulfill the need all the more. Even better, the technically smaller goals suddenly seem less daunting.
We put “#95: Play Ball with the President” on the list because it was literally the most unattainable goal we could think of. I remember Jonnie called me from his dorm room in Montreal in 2008 right after Barack Obama had been elected and Jonnie said, “We should add ‘Play Ball with Obama’ to the list.” I chuckled because it was so absurd and agreed. I found it humorous not only because the idea was so outrageous but also because I knew Jonnie was calling me from his “room,” a tiny space he was renting for $200 a month, which he shared with a washer and dryer. Of all people, we weren’t the best candidates for a pick up game with the leader of the Free World. Nonetheless, two years later we found ourselves shooting hoops with the President in the backyard of the White House. It’s a long, complicated story, and I don’t want to bore you with the details, but this is the kind of thing that the four of us chuckle about sometimes. It’s as if we have horseshoes up our butts, but it’s also happened too many times to be luck. When you dream big, you surprise yourself.

#6. Help others.

We’ve crossed off more than 80 list items over the last six years, but the moments that stand out the most are the ones when we’ve been able to step into someone’s life and share something real with them. I’ve been surprised by how little it takes to impact someone’s life. Something as simple as asking the question, “What do you want to do before you die?” and taking the time to listen is often all it takes. If you’re feeling lost or depressed, you might find what you’re looking for in someone else. Into the Wild said it best: “Happiness is only real when it’s shared.”
Your dreams are closer than they appear. There’s nothing about us four guys that makes us more able than anyone else to accomplish our goals, other than the simple fact that we’ve decided to go after them. George Elliot said, “It’s never too late to be what you might have been.” Don’t wait.

Original Post: http://theburiedlife.tumblr.com/page/2

Should College Students Have Credit Cards?

A new class of freshmen is settling into college life, and a new financial independence that often includes, for the first time, credit cards. A recent survey in the International Journal of Business and Social Science found that half of college students own four or more credit cards.

But should students’ new lifestyle include credit cards?

Once upon a time university quads were lined with folding tables piled with “free” Frisbees, T-shirts, and water bottles given out in exchange for a credit card application — just sign at the X.

“Typical college students make very attractive customers for credit card companies,” said Leah Hampton, a CPA from Lexington, Kentucky. “Most college students think about the here and now, and are not focused on their financial futures.”

Today, thanks to 2009’s CARD Act, students must now demonstrate financial capability or have a creditworthy co-signer in order to get a credit card, but the requirements are still lax.

“I've heard stories about students listing their student loan availability in the income section and getting approved, " said Mitchell D. Weiss, who teaches a financial literacy course at the University of Hartford in Connecticut. "I've heard about students asking friends and relatives to cosign."

Your college kid, in other words, can probably get a credit card if he or she wants one. And it may not be a terrible idea. Credit cards provide a backup plan for emergencies, and allow students to build a credit history.

The question is, What can a parent do to mitigate the dangers — the debt and bad credit scores — that can haunt the student, and parents, for years after graduation?

One strategy is to arrange for a secured credit card, which is like a prepaid card, but which allows the students to establish “credit-creds.” (Make sure the bank that issues the card reports to a credit agency, so a credit history is created.)

Parents can also give the student an authorized card on the parent's existing account, with certain safety measures in place. The student's card number should be different (in case it's compromised) and a maximum charge should be established.

For students over age 21, Weiss recommends two credit cards: one for routine charges that are within a student's monthly budget and can be settled without carrying a balance, and a second card for emergency expenditures that may have to be carried. “That way, routine charges won't incur interest costs and the emergency expenditures can be settled over a reasonable period of time,” said Weiss.

Be aware of other cards your child may have, like debit cards that go with his or her new checking account. Make sure they set up overdraft protection as a safety net for those adjusting to the concept of balancing a budget.

Students also need to learn to protect their valuable new information. Marian Merritt, a
Norton Internet safety advocate, points to unfamiliar Wi-Fi hotspots and unsecured dorm rooms as places where login credentials and banking transactions can be intercepted by hackers.

Your child's financial education, experts say, is like other steps to adulthood parents need to attend to. According to a recent survey of more than 1,000 college students by CreditDonkey.com, only 63 percent said their parents helped them learn about managing their money, whereas 82 percent taught them how to drive.

“Until more parents teach their kids about money, I recommend a graduated path from cash, prepaid, ATM, authorize, cosign, secured, to unsecured credit cards,” said Charles Tran, founder of CreditDonkey.

Until the student "graduates" to an independent card, watch them carefully. Giving a student a credit card “doesn’t mean they have unilateral control over their purchases,” said Steve Trumble, president and CEO of American Consumer Credit Counseling. “If the parents’ money is involved, or a parent cosigned for the card, then the parent has every right to set limits. It’s important for parents to monitor their kids’ spending to make sure they’re using the credit card responsibly, especially when they first go away to college.”

“Also, students should keep up with their finances as carefully as they would their schoolwork," says Creditcard.com.

That presumes, maybe optimistically, that college students are paying sufficient attention to their studies. "If all else fails," Creditcard.com says, "they should use cash.”

Original post:http://www.cnbc.com/id/49259514/

How to Sell your iPhone

With the recent release of the iPhone 5, you might be thinking about upgrading. I know I am. But at the same time, I have a perfectly good iPhone 4S, so I’d need to figure out what to do with that first…

In the past I’ve touched on the possibility of selling your stuff to Amazon via their trade-in platform in return for a store credit. While a store credit isn’t cash, we’re talking about Amazon. At our house, an Amazon credit is darn near cash, so that doesn’t concern me.

But Amazon isn’t the only game in town. eBay and Craigslist are obvious alternatives. And another option that I’ve seen heavily advertised on TV has been Gazelle. So which offers the best deal?

For simplicity, I’m going to focus on my own phone — a 64gb iPhone 4S in black. I tend to take pretty good care of things, so I would say that my phone is in “good” condition. I’ve kept it in a case it’s entire life, there are no scratches on the screen, etc.

So how do the options stack up?

On eBay it looks like you can pick up a phone similar to mine somewhere in the mid-$300 range. While you could auction it off and hope for a higher price, there are units available in this price range using “buy-it-now” option so it’s hard to imagine doing much better.

As for Gazelle, I just checked and found that I could get $260 for my phone with minimal hassle. Not great, but not terrible, right? After all, there’s no need to mess around with creating a listing, dealing with potentially shady buyers, etc.

Well, over at Amazon I could pocket a cool $382.50 (in store credit) for my phone. Once again, there would be minimal hassle (certainly less than eBayplus no fees) and, like I said above, Amazon store credit is as close as you can get to cash in my house without actually having cash.

Note that I’ve ignored Craigslist for this comparison because that’s highly localized and it’s very hard to predict sales prices from one location to another. Also, you can really only access the asking prices so it’s impossible to say how much things are selling for via Craigslist.

Clearly, at least to me, Amazon comes out on top. And when you consider that the equivalent iPhone 5 model is selling for $399, it’s hard not to pull the trigger. Then again, you have to consider those pesky early termination or upgrade fees. The iPhone 4S has only been out for about a year and these things typically come with a 2 year contract.

For now, I’m sitting tight, mainly because of the aforementioned fees. What about you?

This article originally appeared on FiveCentNickel:Selling a Used iPhone