In light of the dismal job prospects that await many debt-laden grads it’s clear that today’s students and their parents must think strategically about ways to pay  for college.

Here are some do’s and don’ts that may help you.

Does it matter where you get your degree? (Source: Thinkstock)

Critics have called them a race-based anachronism. Others have said worse: They’re inferior, they’re in need of a new mission, or they should be managed by for-profit entities. Yet, the data show that historically Black colleges and universities [HBCUs] contribute significantly to the Black middle class and the nation’s economy, and in spite of fewer resources, graduate impressive numbers of majors in education and in science, technology, engineering, and mathematics [STEM]. Although most have a majority Black student body, the faculty at many HBCUs is strikingly diverse, sometimes more than 50% non-Black. Moreover, these institutions have never discriminated on the basis of race.

But, in an age of increasing racial and ethnic diversity in the U.S., do we still need HBCUs?

Chancellor Charlie Nelms of North Carolina Central University in Durham says yes. “HBCUs provide a culturally affirming, psychologically supportive environment. Students don’t have to prove they belong here.” NCCU provides its students “intentional, intrusive, focused” academic assistance, says Nelms.

HBCUs represent about 3% of colleges in the U.S. but enroll 12% of all Black college students and produce 23% of all Black college graduates. Remarkably, this small group of colleges confers 40% of all STEM degrees and 60% of all engineering degrees earned by Black students. They also educate half of the country’s Black teachers and 40% of all Black health professionals. And they do this with much less funding support than that of traditionally White institutions.

Solange Sayers, a graduating senior at Grambling State University in Grambling, Louisiana, has been very happy with her HBCU experience. Originally from St. Lucia, Sayers was elected Miss Grambling last year. She is the first non-American to hold this post. “I came to this country with an open mind,” she says. “I was goal-oriented and wanted to take advantage of the opportunities here.”

One challenge she did encounter at Grambling was the school’s unpreparedness for the influx of internationals that came on campus in 2006—500 students from Africa, Belize, Haiti, Nepal, and the West Indies. “Even dealing with our accents proved trying,” recalls Sayers. But the school worked to overcome the problems and the situation improved. Sayers developed relationships by joining various campus organizations, including honor societies and a national sorority, Zeta Phi Beta, and it was her friends who encouraged her to run for Miss Grambling. Sayers, who studies nursing, chose Grambling because of the generous financial aid she was offered, not because it was an HBCU; she has since won scholarships.

Tyron Young, a senior at Morehouse College in Atlanta, initially considered attending the University of Maryland but changed his mind after talking with the assistant principal at his high school, a charter school in Baltimore called National Academy. “The idea of attending a Black school appealed to me,” Young says. “I’ve had experiences here I would never have had anywhere else—singing backup for Aretha Franklin and on a soundtrack for Spike Lee, for example.” Young, who plans to teach, also has received a Bill and Camille Cosby scholarship and talks with Bill Cosby personally.

Young grew up in Baltimore surrounded by African Americans and attended schools that were all Black, so for college he wanted the comfort and familiarity of a majority Black student body with which he would share certain commonalities. Yet, he enjoys working with all kinds of people: He is now working with a racially diverse group to establish a student mentoring program in Washington, D.C.

Marc Lamont Hill, host of Black Enterprise’s Our World television show and Associate Professor of Education at Columbia University Teachers College, says HBCUs must be supported, especially because of the way they value their students and work to increase their students’ confidence. But he says there are problems the schools must address. An issue Hill sees as particularly regressive is the cultural conservatism that he says pervades all HBCUs: for example, rules forbidding choices like dreadlocks or braids or mandating attendance at chapel services. “These schools have only a veneer of progressivism,” he says. “Many don’t even have African American studies departments, and many are anti-gay.”

Other challenges Hill mentions include less-competitive financial aid packages, fewer resources, and a less-flexible curriculum. But he also feels that HBCUs are no longer as esteemed in the Black community as they once were—now that they have a choice, the best Black students can and often do go to the Ivy League or other elite schools, although it’s not unheard of for Black students to turn down Ivy League acceptances to attend HBCUs. Hill, who attended Morehouse for two years, says HBCUs “are more relevant now than ever,” but they must address these issues if they want to provide intellectual leadership.

A 35-year-old New York City public school administrator (who asked not to be named) graduated from Hampton University in 1999, looks back at his college years fondly, but, like Hill, he sees room for improvement. “The best part of my college experience was pledging my fraternity, Omega Psi Phi,” he says. “But the rules—such as the curfews, not wearing a hat indoors, and not being allowed to own a microwave—were too constricting and didn’t allow room for personal growth.”

Are students better off having professors who look like them? (Source: Thinkstock)

In spite of the nurturing HBCUs provide their students, their graduation rates are lower (about 38%) than that of Black students who attend traditionally White schools (about 46%). But this may be more a reflection of the student body HBCUs serve, one that is typically less affluent (65% of HBCU students are eligible for Pell Grants), often less prepared academically, and often first generation college students. And HBCUs typically have tiny endowments; others struggle with debt. So obtaining resources that could help struggling students avoid dropping out isn’t always an option.

Nelms points out, however, that the variation among HBCUs is actually greater than that between HBCUs and traditionally White institutions. Spelman College, for example, has an outstanding graduation rate of 80%—one of the highest in the nation—with 40% of its students Pell Grant eligible.

But Paul Bryant, Interim Vice President for Enrollment Management and Retention at Grambling, says the challenges of small endowments aren’t new. “We’ve never had the resources White institutions had, but we never used that as an excuse for not succeeding. We’ve always served students that represented a range of ability, but your situation cannot dictate your success.” Bryant says that historically the faculty and staff at Black schools taught students to be the best intellectually and socially, that they had high expectations and a vested interest in seeing them graduate. Now, he says, that’s no longer the case.

“Today’s students are not graduating, they’re not persevering academically, and they’re not competitive,” Bryant says. “They’re too easily distracted, they lack a clear understanding of why they’re there, they lack drive, and they have no connection to their own vision and no realistic idea of what their careers require.”

Bryant says many of his students don’t really value education or academic success, and that the highest GPAs are often earned by Caribbean, African, and Asian students. (Asians make up 1% of students at HBCUs, according to DiverseEducation.com.) He also says the atmosphere at predominantly White schools is different. “More students are serious, so as a result there’s a kind of positive peer pressure.” At HBCUs, he says, the diversity within the Black community is not addressed. “We’re not all the same, but this isn’t acknowledged.”

Some of the problems Bryant laments aren’t unique to HBCUs, however. Regarding the challenges, someone wrote online:

• Replace HBCU with small, liberal arts college. Rinse and repeat. Replace small, liberal arts college with public flagship research institution. Rinse and repeat. Replace public flagship research institution with private research university. Rinse and repeat.

Is the writer a dyspeptic cynic? Or just recognizing that all may not be well in all institutions of higher learning in the U.S.? The nation’s overall six-year college graduation rate, 56% according to the National Center for Educational Statistics, isn’t exactly impressive. And those who do graduate may not have actually learned very much. According to a new book, Academically Adrift, students make stronger gains in critical thinking, complex reasoning, and writing skills if they are required to do substantial work, such as at least 20 pages of writing in a semester course, and more than 40 pages of reading a week in a semester course. Faculty interaction, an area in which HBCUs excel, was also found to be associated with greater gains in student learning.

According to a report released in December, “The Educational Effectiveness of Historically Black Colleges and Universities,” HBCUs play a significant role in preparing their students for success. The graduates of certain HBCUs, for example, Xavier University of Louisiana, Spelman, and Morehouse, were successfully admitted to “graduate, medical, engineering, law schools … in percentages … equaling or exceeding those of African American students that attended” traditionally White schools. The report also noted strengths unique to HBCUs: faculty role models and their dedication to teaching, a socially supportive environment and greater interaction with faculty, an emphasis on career exploration and leadership, and their greater success in graduating higher numbers of Black STEM majors.

The report noted, however, that from the 1970s to the 1990s, significant changes in the results of attending an HBCU had occurred. In the 1970s, matriculating at an HBCU was associated with higher wages and a greater chance of graduation, compared with attending a predominantly White school. By the 1990s, however, there was a 20% decline in the relative wages of HBCU grads compared with Black students who graduated from non-HBCUs, although SAT scores of students accepted into HBCUs had also risen during that same period.

President Obama has called for all Americans who graduate high school to be prepared for college or one year of job training so that we as a nation can compete globally. Nelms says that providing support for HBCUs, which have never received equal funding, must be part of that mandate. At NCCU, students are assigned academic advisers who reach out to students as a problem is developing—not afterwards. Faculty learning communities, housing freshmen and sophomores separately while they adjust to college life, and immersing them in an academic culture are all part of an overall strategy to support student success, says Nelms. “It’s not episodic.”

Are HBCUs for every Black student? “Black students should consider HBCUs, but like everyone else, they should go to schools where their needs will be met,” Nelms advises. Going to college with a clear idea of what you hope to get out of it helps, too. Sayers said she approached Grambling with a “severe open-mindedness” and a determination to have a “university experience like no other.”

Did you attend an HBCU or a traditionally White institution? What do you think of your experience? Are HBCUs still relevant, or no longer necessary? Feel free to share your thoughts in the comments section below.

Also be sure to read these other college-related stories…

• Obama Signs Order Boosting HBCU Funding
• 5 Dos and Don’ts of College Financing
• A Life Raft for Student Loan Borrowers

“We moved to Virginia primarily because our oldest son wants to attend Virginia Tech. He has his heart set on that school,” says Mike, a plant manager at Science Applications International Corporation (SAIC) in Sterling, Virginia. Brenda, a sales manager for Daiichi Sankyo Co. Ltd., adds, “When we were looking at living in Maryland and Virginia, Maryland didn’t have a lot of options. Virginia has so many schools.”

At today’s tuition rate, the couple figures they’ll need $80,000 to pay for a four-year public education. The total cost for one year for in-state students is estimated at $17,365 compared with $31,336 for out-of-state students.

The Lipscombs have been aggressively saving since Michael was in third grade, initially investing in a mutual fund set up as a custodial account. When he was in the sixth grade, they opened a 529 college savings account, contributing $250 each month. Miles also has a 529 plan that the couple contributes $100 to each month.

“I have told both of my sons that there is no free ride,” says Mike. “I call it the Lipscomb scholarship in terms of providing for their college education. I expect them to get no less than a 3.5 grade point average when they come out of high school.”

Another great expectation is that their sons will bear some responsibility. “We want them to contribute a small part to their college education costs, around 20%,” says Brenda. So, if $80,000 is the target number, they will have to come up with $16,000.

The Lipscombs were fortunate to not be saddled with college student loan debt upon graduation thanks to academic scholarships they both received. The couple can also save for their sons’ college expenses because they live modestly: they don’t have to finance any car loans or credit card debts.

As with many parents, the Lipscombs still fear that skyrocketing costs will make their sons’ college educations unaffordable when it comes time to enroll. With today’s tough economy, the average American family may not be able to save enough money to cover a four-year college education, says Rich Polimeni, director of education savings at Bank of America Merrill Lynch. “But there are a couple of things that parents can to do to lessen that blow a bit.”

There are other ways to acquire money for college. Make sure you have a game plan.

Yesterday I had the opportunity to appear on WEAA 88.9 FM’s Wealthy Lifestyle Radio with financial coach Deborah Owens. Though the segment was based on a story I’d written about microloans, Owens and I got into an interesting discussion about developing a college aid strategy. Often, many of us go online, subscribe to Fastweb, Princeton Review, and a couple of other sites as a source for scholarships, but it pays to be strategic with how you look for financing. Check out these key tips:

Geo-target funding: Look for scholarships based on your county, city, and state. This helps to weed out prospective applicants, potentially leaving a smaller pool than you’d have with national scholarships. Check with your high school’s career center and guidance counselors (go to more than one) for information about local funding. Also, check out county alumni groups for black Greek organizations that might be offering scholarships. A simple Google search of your county, state, and/or city and the word “scholarship” should yield fruitful results.

Know the right people: Having a great network of professors, mentors, and administrators can help your chances of getting access to scholarships and aid. This fact was driven home for me when I was an undergraduate. Because a professor was a part of my network, I was able to gain access to a particular scholarship that helped me pay for college during a time of great need. While there’s no need to be a kiss-ass, you should work on establishing organic and genuine relationships with your administrators. Become active in organizations or your department of study. Show them the initiative you’ve taken with school projects–as well as outside of school–related to your area of study.

Say no to refund checks: Aaahhh, there’s nothing like a fat refund check to pay for Spring Break in Miami or a mini shopping spree! Unfortunately, taking out a little more than you need can thrust you into greater debt than necessary. Take the time to calculate exactly how much you owe per semester and how much student loan money you’ll really need. Trips, trinkets and splurges should be funded from your own savings.

Pinpoint school scholarships and grants: Aside from applying for national scholarships, most universities and colleges offer their own scholarships and grants. Some of this funding must be applied for while some is automatically awarded. Most schools have a website that lists these oftentimes little known scholarships. Take the time to dig through your college’s website and your department’s webpages to find the money. This funding is often specific to your major, credit hours achieved, or your community impact since attending the school.

Stay on course: Remember–college is a numbers game. You can have more than enough credits to graduate but still not have the right credits in the right places. Talk to upperclassmen and find a highly recommended counselor. From there, get a printout of all the courses you’ll need to fulfill your university requirements (this is usually in the syllabus you get the first day of class), your requirements for the school within the university you are attending (if applicable), and your actual major (yup, pretty confusing). Figure out which classes count for more than one requirement, too.

Microlending seems like the most efficient way to tackle this student debt problem, says Shawn Agyeman, director of marketing, SponsorChange.org.

There seems to be a new trend taking root when it comes to college financing. Last week, I wrote about companies adopting a micro-loans model for student lending. Days later, micro-loan giant, Kiva, announced it was expanding its small business social lending to students seeking to get through school as well. Even though Kiva’s program is only for students abroad at the moment, this expansion demonstrates how college financing or student loan debt assistance is taking a social approach.

“Micro-lending seems like the most efficient way to tackle this student debt problem,” says Shawn Agyeman, director of marketing for SponsorChange.org. “If we wait for national reform it’s going to take a lot longer,” he adds.

SponsorChange.org is another organization seeking to attack the student debt problem head on. Its efforts are two fold: attract top talent to nonprofit organizations seeking volunteers to help out, and aid students in getting a handle on their school loans. Those admitted to the program will work a maximum of 50 hours in up to four months, though project hours and project length can vary.

Nonprofit organizations receiving the help also have a vested interest, says SponsorChange.org co-founder, Raymar Hampshire. They are responsible for contributing 40% of the total payment amount.

Once projects are completed, funds are transferred directly to the student loan account. “So far we’ve paid out close to $8,000,” says Hampshire.

Hampshire and his brother, Robert, conceived the idea in 2007 while having a conversation bout micro-financing. “At the time we said, ‘How can we use this to help people pay down student loan debt?’ But instead of paying it back, they could pay it forward,” says Raymar. The brothers officially launched the site in 2009.

Who’s eligible to apply? Anyone with a degree–undergraduate, associates, or vocational certification–and debt from a tertiary institution.

If you’re interested in becoming a volunteer, head over to SponsorChange.org to sign up.

SponsorChange.org is also in the midst of a $300,000 fundraising campaign to provide more volunteer and loan assistance to graduates. “We want to eventually offer programs to corporate employees to give skills to nonprofit entities,” says Alicia Shipman, program director.

Social lenders may represent a new source of affordable student loans.

Yes, even I am haunted by the wretched specter of student loan debt. While I was fortunate enough to ensure my nearly $20,000 in student loans were all from the government, I have many friends who aren’t nearly as fortunate. If you’ve followed my blog you know I’m on a mission to help students recognize the most cost effective way to get through school without becoming saddled with debt. Companies have been springing up offering a micro lending model to student loans which aims to make borrowing easier and more affordable.

On Friday, NPR aired an interview with Noga Leviner, general manager of Lumni Inc. USA, an organization which lends students up to $6,000 a year to help finance their education. In turn, students commit to repay a fixed percentage of their income at the time the contract is signed. The percentage is paid for a set amount of time, which Leviner says is typically 120 months or 10 years after they graduate. Once those 10 years are up, regardless if the loan is repaid or not, your obligation to repay that loan is terminated.

“With the financing that Lumni offers,” said Leviner, “students basically know that they’re always going to be able to make their payments and that the monthly payment that they owe will really just adjust according to their mean at that particular time.”

What happens if a graduate is jobless or quits the workforce to head to graduate school?  “5% of salary of zero dollars of earnings is obviously zero,” says Leviner.

But Lumni is just one of many companies applying a social lending model for college students. I found one article in a Boston University publication focusing on a student who received $30 after making a plea on SponsorMyDegree.com, a site that matches students with businesses and individuals willing to donate.

The piece mentions several other companies adopting their own version of peer-to-peer student lending, including, GreenNote, Fynanz, GradeFund, and Prosper. Even business mogul, Richard Branson is getting in on social lending with his Virgin Money. The program sets up a formalized process for friends and family to borrow from one another. For a $99 setup fee, participants receive a Promissory Note and online loan set up.

On the flipside, People Capital, an online lending platform, matches students with individual, institutions and philanthropic lenders.

With default rates at record highs and tuition rates rising even higher, these new methods of borrowing will hopefully make getting through college less burdensome on students. Additionally, as these options gain traction,major students lenders will be forced to revise their dubious lending practices as competition will now be apart of the game.

Provisions of the CARD Act are aimed at helping students avoid the trap of credit card debt.

As students head off to college for the first time or prepare for their fall return, there’s one thing can be certain will be absent from campus this year; solicitation from credit card issuers. The final components of the White House’s “CARD Act” took effect last Wednesday. Major portions of this installment of legislation focuses squarely on protecting college age students from incurring massive amounts of credit card debt and ruining their credit score.

Aside from educating students about credit and debt, some expect the legislation to help curb student debt.

“There’s a disconnect [among] students with how their actions today will have long lasting effect on their future,” says Justin Draeger, president of the National Association of Student Financial Aid Administrators (NASFAA). “Students are sometimes scrambling to try to meet financial needs and there’s a temptation to go to the easier from of credit available to them,” he adds.

Check out how the legislation will impact students.

No credit cards for minors. Minors must now have a parent or guardian present in order to apply for a credit card. Students under age 21 seeking a line of credit must prove they can afford to repay amounts borrowed by verifying income – or they will need a cosigner.

No unwanted solicitations. Even before hitting the age of 21, many young people, usually college students would receive dozens of emails and letters saying they qualify for a credit card. The legislation puts the kibosh on credit card companies soliciting students.

Limits to money borrowed. Students will now have a $500 credit limit or 20% of the student’s yearly income.

Curtailing college marketing. Credit card issuers are now required to file annual reports with the Federal Reserve detailing all business, marketing and promotional deals with colleges. This includes payments made to the school.

No more freebies. The law clamps down on freebie offers – pizzas, t-shirts, pens – if students sign up for credit cards on or near campus or at college-sponsored events. The Federal Reserve Board issued guidelines defining “near” campus as anything within 1,000 feet of the campus border.

More financial literacy. This is not a required part of the legislation, but the legislation recommends colleges provide credit card and debt education and counseling sessions as a regular part of orientation programs for new students.

For more on paying for student debt check out:

Should you get your Degree in Three Years?

Kids & Money: Paying for College and the Myth of Financial Independence

Economista: How to Pay for Grad School

“By completing a three-year degree program, students can end up saving about $10,000 in living expenses and $3,000 to $5,000 in tuition at a public college,” says Ken Clark, certified financial planner and author of The Complete Idiot’s Guide to Paying for College (Alpha; $18.95). Clark says even though many schools do not offer these programs, students are finding ways to take on more credits and finish school earlier, including attending summer courses at a community college for a fraction of their university’s price per credit hour.

The three-year model is not new; it’s common in Europe. Now, a number of institutions in the United States are following suit. “We know of three private colleges that are launching three-year degree programs in 2010–11 and four that did so in 2009–10,” says Tony Pals, director of communications for the National Association of Independent Colleges and Universities, a membership organization that represents more than 1,000 private universities and colleges.

“We recognized the growing concern from families about the cost of higher education,” says Jerry Greiner, president of Arcadia, a private university in Philadelphia. Given the rigors of Arcadia’s accelerated program, only top-tier incoming freshman are eligible to participate, says Greiner, who expects up to 15 students to take part this fall. “We are purposely selecting students for the program who are highly motivated and who have already demonstrated ability to do really well academically,” he says.

About 350 incoming freshmen are slated to begin a three-year academic journey at the University of North Carolina at Greensboro (UNCG) this fall. The school’s program  is designed for the growing number of high school seniors with transferable college credit earned through Advanced Placement (AP) courses and other early college programs. Incoming freshmen with 12 or more credit hours will be eligible to participate.

“By saving one full year of tuition and room and board, students will realize savings of about $8,000,” says Steve Roberson, dean of undergraduate studies. “We generally have seven or eight students each year who are able to graduate within three years, the UNCG in 3 program will make that goal possible for a lot more students.” Students will receive priority registration, and will average about 16 credits for their fall and spring semesters and two summer semesters, taking seven credits each. Students in these programs have the same amount of coursework as traditional students, but they’re able to avoid potential tuition hikes during the fourth year by graduating early.

Last year, House lawmakers in Rhode Island approved a bill that would allow students to earn a bachelor’s degree in three years at state institutions. At the 2009 annual meeting of the American Council on Education, Sen. Lamar Alexander (R-Tenn.), who served as U.S. secretary of education from 1991 to 1993, encouraged institutions to adopt the three-year program.

Going independent to get more money for school is an urban myth.

Whether you have a child that’s prepping for college or your young one has finally made it there, the rumor of filing for financial independence to increase financial aid eligibility is pervasive. After all, it makes sense: the less income you generate the more aid you’re likely to receive. But, it’s more of an urban legend than actual fact, says Ken Clark, author of The Complete Idiot’s Guide to Paying for College, debuting October 5.

READ: Alternative Ways to Pay for College

“The only place it’s going to make a huge difference is maybe whether or not you’re eligible for a Pell Grant which can be an additional $5,000 to $6,000 a year,” says Clark, a certified financial planner. “The government is savvy enough to know that when people are trying to look like independent students.”

Aside from a slim chance of boosting your financial aid package, the process can be costly and lengthy. Students looking to emancipate themselves must provide documentation to prove that mom and dad do not provide an ounce of financial support. In the end, with court fees and documentation, this process can end up costing up to $2,000.

Clark says students who do receive little financial help from mom and dad should consider applying for status as an “independent student” through the Department of Education. The Department of Education’s website has all the paperwork and information students need in order to file as an independent student. And, unlike emancipation, students will still have access to their parent’s current medical coverage.

Finally, Clark urges to students to consider the American Opportunity Credit passed by the White House. “If you spend $5,000 on college in any given year you’re going to get a $2,500 rebate against what you owe,” says Clark. “If you spend nothing the federal government will send you $1,000 as a check.”

The credit only applies to undergraduate students.