Several Internet sites reported some bleak financial news this morning. It seems that U.S. banks were on a pace to rake in $38.5 billion in customer overdraft fees this year.

Sadly, the vast majority of that $38.5 billion was likely to come from the consumers who can least afford it.

That includes young, cash-strapped college students.

Bank Overdrafts

Whether you write a check, withdraw money from an ATM, use a debit card to make a purchase or make an online electronic payment for an amount greater than the amount of money you have in your bank account, you in essence are attempting to “overdraw” your account.

Banks can do one of two things at that point, they can either pay the amount requested or decline to do so. If the bank fronts you the money to complete the transaction, they will then charge you an “overdraft” fee.
Most people think overdraft protection is a good thing. First of all, if a bank returns a check without paying it, instead of an overdraft fee, you will likely be charged a “bounced-check,” or “insufficient funds,” fee. In addition, the company that you sent your check to may also charge you a “returned-check” fee. That decision is separate from any made by a bank.

Second, with debit cards, it can be pretty embarrassing to be at the checkout counter with items in hand only to have your purchase rejected for insufficient funds.

So ultimately, most people like to work with a bank that will provide overdraft protection. Such a set up means no returned check fees and less potential public embarrassment.

But it places you at the mercy of the bank and their overdraft fee policies. According to the Financial Times, nationally the median cost of an overdraft fee is 26 dollars. At the larger banks, the median fee is 33 dollars.

Remember your statistics here. The median is the middle number in a list – so one-half of all fees are less than the median but another half exceed that value.

In fact, according to the Financial Times, at Bank of America, “a client overdrawn by just six dollars could incur a 35 dollar overdraft fee that can be levied up to ten times in a single day.”

Most Common Mistake

The reason that most people overdraw an account is they have failed to keep track of how much money they have in that account. Keeping any account register up-to-date, checking, debit or other, can be a real pain.

But to be certain of your status, it is imperative that you record all of your checks at the time you write them. It is also important to record those other transactions, debit card or online payments (automatic ones as well), at the time you make them. The ease with which money can be spent in such a manner often leads to the omission of a specific record or two.

And, if it happens, you must not forget to subtract any fees you have been assessed.

At the end of each bank cycle, reconcile your account with your bank statement. Any discrepancies should be dealt with immediately.

Mistakes Happen

If at some point you do overdraw an account, make a deposit as soon as is possible. That deposit must cover both the overdraft fee and the amount the account was overdrawn.

The failure to reconcile the issue quickly often leads to additional overdrafts and fees. In some simple cases, banks charge a flat fee per day (in addition to the overdraft fee) for each day the account remains overdrawn.

And remember, the overdraft fee kicks in on every transaction when you have exceeded your account balance. You might expend as little as $10 for another transaction yet get hit with that $33 overdraft fee.

To minimize the cost of any mistakes, be sure to explore all options with your bank. You may be able to keep an additional savings account with a small sum that you never touch yet can be used to transfer funds when you do overdraw a checking account. Some banks will make limited such transfers free of charge, others for a small fee per transfer.

Another option is a line of credit with the bank. With such an option, if you overdraw your account, the bank lends you the funds from your line of credit to cover the overdraft. There will be interest charges on the loaned sum and the account often carries an annual fee but it can be great protection from other overdraft options.

The same idea can be used with a credit card. It can be attached to your account and when you overdraw your bank account the money to cover the overdraft becomes a cash advance from your credit card.

Just remember, this is still not free. Most cards have a cash-advance fee and the interest charges start the moment of the transaction. And be careful, if your interest rate is high, this can be as expensive if not more expensive than those bank charges.

Don’t Contribute to the $38.5 Billion

The advice is simple. Practice good account management – always know where you stand financially so that you can avoid costly mistakes.

Take the time to review options with your bank so as to ensure the best possible situation should a mistake occur.

You have worked hard for the cash you do have so make it a pledge not to gift your hard-earned money to the bank.

For more on overdraft protection and bank practices, visit the Federal Reserve.

By now you are no doubt familiar with the story of Trina Thompson and her lawsuit against her alma mater, Monroe College. The blogosphere has been abuzz since Kathianne Boniello of the New York Post broke the story.

The Digital Student over at GoCollege offered some support for her plight. They noted that tiny Thomas College in Waterville, Maine, actually makes a promise to its grads, one that Monroe does not: a job or else.

But most were merciless in their criticism of the 27-year-old. Robbie Cooper at UrbanGrounds gave her “The Idiot of the Day Award” while Ryan at RightJuris dissed her even as he stood up for the legal profession noting that Thompson had to file the suit herself, the insinuation being that the case was so frivolous that no one in the legal field would touch it.

Given some of the absurd suits that have been filed we tend to believe her when she simply says she filed it herself because she could not afford a lawyer. Whatever the case, therein lies the rub.

Everyone in the blogosphere has an opinion of the information-technology graduate. Trina Thompson is now a household name on the web.

Today, if one uses any search engine of note and types in the name Trina Thompson, pages and pages emerge. Many with unflattering titles, many more mentioning the anger she feels as a result of her plight and all highlighting the fact that she has chosen to blame her school for her failure to acquire a job.

Future Employment?

Irrespective of the merits of her lawsuit, Thompson now faces more difficulty than she could have ever imagined.

Anyone involved in the process of hiring someone for a professional position will thoroughly check a candidate’s references. Not only will phone calls made and questions asked of all listed references, many employers will try to determine the inside scoop by contacting someone else that may have knowledge of a candidate but is not listed as a reference.

However, the Internet has brought new meaning to the term reference check. The time has come when virtually all potential employers add one other simple process: Googling a candidate’s name.

The availability to readily access information on the web about a candidate has created a whole new phenomena called personal branding. It is a concept every high school and college student needs to become aware of and breaks down simply: it is extremely important that when your name is Googled, positive information comes up.

The last thing you want to have happen is for that search to yield information that would cause an employer to think twice about offering you a job.

If Ms. Thompson was truly searching hard for work before but was coming up empty, her decision to file the lawsuit has likely become her kiss of death. By virtue of her actions, she has created the ultimate red flag for human resource offices. No employer wants to hire someone that appears willing to sue others in a fit of anger.

Unfortunately, the filing of this lawsuit led Trina Thompson down a path in which she lost control of her personal brand.

And given the nature of the Internet that will follow her the rest of her life.

I noted late last week my frustration with the lack of free Wi-Fi access in the northeast. I even went so far as to commend big-box bookseller Barnes & Noble for dropping its prior practice of pay for service.

No sooner had I postured our position when I bumped into a rather different option noted by Alex Salkever of DailyFinance.com.

Instead of free access, he suggests we are on our way to another path, one where The Price of Our Next PC is actually zero.

As in nada.

And it scared the BeJesus out of me.

All About Making Money

Salkever writes:

Here’s another soon-to-be new twist on the Freemium model, where companies make money by giving things away. This time it’s set to hit the high tech hardware world.

….wireless carriers like Verizon (VZ) and AT&T (T) are rolling out more and more plans that offer subsidized netbooks to customers willing to sign up for two and three-year data plans on top of their existing cell phone coverage.

According to a DisplaySearch analysis, the lifetime value of a two-year AT&T or Verizon subsidized netbook (w/ HP Mini or Acer Aspire One netbook) and service plan (assuming you don’t blow through monthly data limits) is $1,159 before sales tax and all of the monthly telecom taxes are added.

As the acceptance of applications delivered over the Internet continues to grow (Microsoft OfficeLive, Google Apps) the true value in a customers engagement will move towards this software and away from hardware. That will force PC companies like Dell (DELL) and HP (HPQ) to consider new ways to boost revenue because, let’s face it, they don’t want to be in the business of selling sub $500 computers, which is where the market is heading.

The upshot? The new price for some PCs might well be $0.00.

Hate the Thought, Part One

Now I hope your not thinking, wow that must be right up my alley. As in free is the word for this writer.

Actually, I don’t like the sound of this at all. First, it reeks of those early days when unsuspecting customers purchased those amazing color printers. You know, those three-way babies that could copy, scan, and print for some ridiculously low figure like $19.99. In some cases, the deal was to throw the printer in free.

Perhaps you bought/accepted one?

At first, things seemed OK. They even delivered a decent product.

But at some point, quite soon in most cases, they ran out of ink. And you headed to the store to pick up a couple of cartridges only to learn you had to shell out $50.00 for a new pair. You cussed but you accepted it, it gave a decent product.

Perhaps the second time, or maybe the third, as they ran out of ink (again quite soon), you caught on. It wasn’t about selling you a printer. It was about getting you take that printer so they could get you to shell out serious cash again and again as you supplied the damn thing with ink.

Hate the Thought, Part Two

This also sounds a great deal why I no longer have full cable television access. You know, the bulk pricing that features oodles of channels.

You soon learn that most of them are not worth even a buck a month. But, you are stuck.

You can buy channels 1 – 23 or 1 – 80 or some other ridiculous combination. But you can’t negotiate a price for the five or six or if you are lucky, ten channels, you might actually watch.

Yes, this sounds too much like the cable outfits, bulking up so as to give the appearance you are getting more just so they can charge more.

Has the Best Come and Gone?

Me, I am fearful. I am afraid that the best has come and gone.

I love this Internet thing and access to the world-wide web as it now exists. The limitless opportunities, the hours of surfing without a meter running.

Yes, I am worried. I am worried that somehow the free, open nature of what we have today will close down.

And the costs rise.

As the services dwindle.

No, I didn’t like what Salkever had to say one bit.

Remember the time when you harbored hope of free wi-fi access everywhere? Not just a few select cities, but unlimited hot spots for citizens all across our great land?

The theory was simple: logging on would involve a 15-30 second period where we would be exposed to local advertising. These captive ads, paid for by local businesses, would ensure the costs of access for an entire community would be more than manageable for any city.

Move forward to 2009 and here in the northeast nothing could be further from reality. In the State of Maine one has to hunt down a Panera Bread to be able to find a sit down, leisure option, for such access. Amazingly, one cannot even get free wi-fi while waiting for one of those indeterminably-delayed flights at the Portland Jetport.

Of course, we have figured out how to get by. Mainers, ever frugal, now know they may pull into the parking lot of a Staples or Office Max or even a VIP Auto (yes, one of the strongest signals available is in the parking lot of an auto parts store) to be able to check their email.

But finding one of these entities, wheeling into the parking lot, and popping open the lap top is never easy.

Ultimately, we have longed for what might be.

Barnes & Noble to the Rescue

Given our frustration we were thrilled to learn of at least one major company willing to give the idea another go. Book store giant Barnes & Noble recently announced it would drop its pay-per-use store hotspots in favor of free wi-fi access to anyone with an appropriately equipped laptop, smart phone or PDA.

Of course the action is not simply an act of kindness by the book store chain. Instead, the store is promoting its e-book library in hopes that you might just be enticed to purchase the latest best seller.

That is not a problem in our eyes. As we noted earlier, we had anticipated a sales model in return for access. Even if it does involve significant marketing, it is no different than any other magazine, newspaper or web site.

As long as you are disciplined, there is virtually no negative. There isn’t a requirement to purchase an e-book to get online. Instead, as WalletPop points out, B & N is simply making it as easy for folks to “browse the cyberspace aisles as the real ones.”

Retailer Has a Plan

While great for users, there actually appears to be a larger plan at work here: B & N is on the path to competing with Amazon by developing its own e-book reader. But for now the company is simply offering software that enables you to view the best sellers on your laptop, smart phone or other electronic portable device.

In the meantime, for those who also really like books and the atmosphere of the book culture there is also a sign up available for promotional coupons and notices of book signing events. But for the rest of us, what makes the entire option a plus is that signing up for such promotional material is not required for access.

It is, dare we say it, free wi-fi access!

B & N, here we come.

Borrowing from a popular credit card commercial format, we toss out a longstanding fundamental belief about higher education.

Four years in-state tuition and fees: $17,360.00

Books and Supplies: $3,960.00

Computer Fees: $4,160.00

Room and Board: $31,200.00

Earning a College Diploma: Priceless

The Financial Benefits of a College Education

In general, most insist that you simply cannot put a dollar figure on a college diploma. It is truly a priceless commodity leading to greater future earnings and a better chance to pursue something one truly loves as a career option.

That said, in recent years, eyebrows have been raised. College costs have been soaring and critics have begun questioning the value of a college diploma.

For years, the generally accepted figure associated with earning a college diploma has been $1 million. Those calculated additional earnings a college graduate earns in his lifetime above and beyond of a classmate with just a high school diploma continue to be used as the rationale for earning that coveted diploma.

However, that generally accepted $1 million figure has recently been called into question by a gentleman named Charles Miller. According to his analysis, the value of a college diploma may actually be significantly less than the popular dollar figure generally tossed around.

A Much Lower Return?

Miller, the former head of the Commission on the Future of Higher Education, raises some interesting dialogue with his set of calculations. He, in sum total, insists that higher education just might have gotten too expensive for what it produces and is certainly too costly for the typical student.

To arrive at that conclusion, he first insists that the calculation procedure used to determine the $1 million figure contains too many false assumptions. For example, Miller rails against one fundamental criterion used in creating the million dollar figure.

When computing the $1 million in additional earnings, estimates are based on an assumption that students finish college in four years. Miller correctly notes that other college graduation data utilizes six years as the standard for earning a degree. So the first significant way that Miller’s numbers are adjusted is to take away two years of earnings for the average college graduate.

Miller also notes two other major calculation adjustments. First, current procedures typically report lifetime earnings in the “present value” of the dollar totals, rather than adjusting for inflation over time. Second, most calculations do not isolate the benefit of those who have only a bachelor’s degree.

Using his assumptions, Miller contends that the lifetime earnings differential for a bachelor’s degree over a high school diploma is a much more modest figure: $279,893.

Easy to See Why Concerns Are Being Raised

There are numerous folks who insist that Miller has low-balled the calculations. In their eyes, he has done everything he can to reduce the value.

Still, the difference is a rather significant number. Certainly, $280,000 in additional earnings is nothing to sneeze at.

However, if we do assume that this more modest differential is somewhat accurate, then the current cost of a college degree does raise interesting questions. Four years of in-state tuition at a local university will set a student back at least $60,000, especially if some time is spent living on campus.

As a monetary investment that number still seems reasonable. We certainly can advocate spending $60,000 knowing full well we can one day expect to pocket $280,000 as a result. Add in the ability to better control one’s career choice and the investment seems to be a no-brainer.

But what of those private schools, of those topping $50,000 per year? Four years of expenses will top the $200,000 mark.

Under such a scenario the monetary piece becomes suspect. In such an instance, the rate of return falls to less than 2% return on the money invested if figured on a per year basis.

With those numbers it is easy why folks are concerned with the skyrocketing costs of a college education. If the costs keep rising, the rate of return ultimately diminishes.

As President Obama has stated on multiple occasions, we must find ways to make college more affordable.

So Where Do We Stand?

Interestingly, Miller’s strong push has at least one agency acknowledging that the $1 million figure may not be entirely accurate. In responding to Miller’s criticisms, the College Board acknowledged that $1 million in additional earnings is misleading.

At the same time, the College Board noted a thought many concur with: there is a very high individual return from a higher education.

According to the Board, a public college graduate will break even by the age of 33. At the higher priced schools, the private colleges, the Board offers a break even point at age 40.

Given those assertions, it is easy to see why education does in fact pay off. Of course, if costs do continue to rise, those pay back ages would rise as well. Pushing them back another ten years would make the dollar return a far more questionable discussion point than as it currently stands.

Without a doubt, students must be mindful of the debt they are incurring as they earn that diploma. They must also have an excellent understanding of potential future earnings: a career in social work or a job as a teacher will not necessarily produce additional earnings towards the $1 million mark.

Great Experience

Ultimately, college can be a great place to spend four years. Students often get their first chance at learning to be on their own. At the same time, you still have a safety net, a “shelter where you can develop yourself.”

At the university level, you will also meet many interesting people and have access to adults who are willing to help you learn new things. Once in the world of work, there will be far fewer people willing to help you become successful.

So independent of the financial figures, college can be a great place to learn about you and about society. College is a place where students get a safe chance to mature even as they pursue a degree and a potential career.

And if you manage the financial piece appropriately, you can expect the opportunity to earn additional funds even as you work in your preferred field. Just don’t go around thinking that a bachelor’s degree is going to make you a millionaire.

If your criteria for choosing a school or major is based on how much you will earn, a recent New York Times article will walk you through the best schools and the highest paying options by major.

In creating the summary, the Times used the data from PayScale, a site that collects data on salaries for different professions, for people whose highest degree was a bachelor’s. That said, the results feature pure earnings, not a comparison of earnings to college costs.

Ivy League Leads

While it is chic to knock the Ivy League schools and their academic peers like MIT and Stanford, the fact is these schools do deliver the goods. In addition to their strong academic programs, these schools produce graduates who go on to earn significant bucks.

However, while Harvard, Princeton and Yale are generally considered the Ivy elite, number one on the list for highest median salary at mid-career was Dartmouth College. MIT came in at number two, topping third ranked Harvard. Somewhat lesser known, but still on the elite list, Harvey Mudd held down the fourth slot while Princeton came in at number five. Demonstrating that the Ivy League is indeed a power, Yale ( number nine) and the University of Pennsylvania (number ten) gave the Ivies five of the top ten slots. Stanford, Colgate and Notre Dame round out the top ten holding down slots six through eight respectively.

However, when only highest median starting salaries are looked at (defined as salaries within five years of graduation), readers would likely be surprised to learn that Loma Linda University came in at number one. That position is a function of the career options at this lesser-known school (excellent programs in nursing, dental and allied health).

Highest and Lowest Paid Majors

When it comes to earning big bucks, there is also a clear indication that the choice of major matters. Engineering, science, mathematics and economics generally held the top slots in both highest starting median salaries and highest mid-career median salaries.

Aerospace, chemical, computer and electrical engineering took home the top four spots respectively. Economics came in at number five followed by Physics. Three additional engineering majors also ranked in the top ten, mechanical, industrial and environmental.

At the bottom we find careers in social work, education, theology, horticulture, hospitality and tourism, and the fine arts.

What Really Matters

While the school and the career certainly do matter to some extent, the Times does a great job of analyzing the data, taking it a bit deeper. We will leave it to the reader to head on over to read the details as to why ultimately Harvey Mudd might just be the overall top performer.

At the same time, the Times quotes some experts who insist the most compelling aspect to consider for the majority of cases is the student. According to the Times:

Hard-working, ambitious students will do well wherever they go. The opposite applies to mediocre or lazy students.

The one exception was lower-income students. For them, the college mattered more.

For the raw data, head on over to the PayScale site directly.

It seems that every family member and friend that I have bumped into this summer, at least those connected to someone considering higher education, is making a point to take some time to visit one or more of the colleges the prospective student is interested in.

I cringe when I hear this. Yes, visiting a prospective college is a very important step in the process of selecting a school. And yes, to truly get a feel for the school, it is absolutely necessary to spend some time on campus.

That said, I am afraid that summer is simply not the best time to make such a visit.

A Convenient Time to Visit

In reality, summer is the most convenient time for families to visit a college campus. First and foremost, not only is school out for the summer, most students also have a break from extracurricular activities. Active individuals know all too well that even during school vacations during the school year co-curricular activities continue to practice making it extremely difficult to find a block of time to visit prospective schools.

In addition, parents of prospective students often are able to find larger blocks of time during the summer months to make such visits. In fact, most parents tend to plan family vacations and pleasure trips around making a stop or two at a college campus in the vicinity.

So, it is understandable that summer is likely the most convenient time for you and your family to make such a visit. Unfortunately, it is simply not the best time to get a real feel for the campus.

Not a True Picture

While it may give you a basic feel for the campus structurally, a summer visit is devoid of the most important element: What does a day at the campus feel like when students are present and classes are in session?

Visiting during the summer will produce a definitive feeling of quiet solitude. That is because there are simply too few individuals around on summer break. That overall feeling of solitude can be very misleading and make it seem like a campus is devoid of any real social life.

There are not likely to be any athletic contests, no meetings and the outdoor quad and student union will be nearly empty. The bottom line is that students do not get a true feel of what it would be like to be a student.

Most importantly, you will have access only to trained tour guides who have been taught to sell the positive traits of the campus. It will be difficult to gain time to simply talk with other students to get the real skinny and nearly impossible to spend a night on campus or visit a class in session.

Make a Visit and Make it at the Right Time

To get a true sense of whether or not a college is for you, you must take the time to make a campus visit. But at the same time, when you are truly narrowing down the decision, you must make a visit during the school year.

Only by visiting during the academic year can students truly discern whether or not a specific college will meet their respective academic and social expectations and needs.

What separates your inner ear from your outer ear?

In what country would you find the Panama Canal?

Which President was known as Tricky Dick?

What does the DC stand for in Washington D.C.?

Man, he looks like he was in the water?

Are any of these folks graduates of your school?

Moving forward, post-9/11 military veterans may want to give careful consideration to pursuing their college education at Drexel University in Philadelphia. The school recently committed $2 million to support qualifying veterans as they pursue their studies at the school.

The program combines two separate elements, the use of the new GI Bill and a complementary prong called the Yellow Ribbon Program. The first element dictates very specific funding levels for veterans and is available to all veterans at all universities– the second represents additional optional contributions from universities above and beyond the funds committed by the federal government.

Drexel has taken the step to fund the entire difference between the federal reimbursement rate and the cost of a Drexel education. The key aspect is that the funds are committed without restriction and admitted veterans will be eligible for a free education.

The program is available whether the student wants to pursue their degree part-time or full or to study on-campus or online. The program is also available at all possible degree levels: undergraduate, graduate, doctoral and professional. The depth and breadth of options available is significant as Drexel offers several schools and colleges including the Drexel University College of Medicine, Earle Mack School of Law, Drexel at Burlington County College and the Sacramento Center for Graduate Studies.

Lastly, Drexel is placing no limit on the number of veterans who may enroll.

New GI Bill

Under the reauthorized GI Bill, the federal government has made several changes. First, the government will pay each student’s costs directly to the school. Under the prior GI Bill, veterans had to upfront costs and then request reimbursement from the feds.

The new bill also will fund costs at the highest in-state school tuition rates. Those rates of course vary state by state so the benefit amount can vary significantly depending on the veteran’s choice of school.

Finally, the new bill features additional benefits including monthly housing and textbook stipends.

Yellow Ribbon Campaign

Set to get underway August 1st, the Yellow Ribbon program sets up a partnership between a school and the federal government. Under the campaign, colleges may match the government’s contribution of the cost of an education.

At some schools that translates to more dollars but still some out-of-pocket expenses for veterans. At Drexel, it will mean 100% free tuition along with full coverage of all university fees.

To be eligible, a student must meet the school’s admission’s criteria. But every qualifying veteran able to meet that criteria will be eligible for the Yellow Ribbon irrespective of choice of program or campus.

Excellent Online Option

Qualifying veterans who do not live in the Philadelphia area will still want to give Drexel careful consideration. That is because Drexel Online is a nationally-recognized program offering innovative, Internet-based distance education programs.

Winner of the 21st Century Best Practice Award for Distance Learning from the United States Distance Learning Association, Drexel Online features degree programs in engineering, teacher education, nursing, library science and business administration.

Editor’s Note: Drexel is not the only school involved with the Yellow Ribbon campaign. For a state-by-state listing of universities and their level of support for the program, visit the Yellow Ribbon map and click on your state of interest.

J.D. Powers Airline Satisfaction Survey reveals industry leaders for budget-conscious students.

Are you one of those students who has chosen to attend school several hundred miles from home? If so, when it comes time for Thanksgiving and Christmas, you likely have to jump on a plane in order to get back home to share those special holidays with family.

While costly, purchasing an airplane ticket becomes a must because of the time constraints and the overall distance. But as you lay out significant hard-earned dollars to purchase that ticket, you will definitely have some simple expectations:

• you will be dealing with courteous people;
• those people will help you make your trip a positive experience;
• they will get you and your checked belongings to your destination reasonably close to on time.

The last thing you want to do is spend your holiday time sitting in an airport fuming as to why your airline is not on time or wondering why no one at the airline seems the least bit interested in the fact that your bag is missing or your connection is still somewhere overhead.

Air Travel Satisfaction Ratings

If you are one of those individuals who must fly to be able to make it home for special occassions then you will certainly want to check out the airline customer satisfaction ratings recently released by J.D. Power and Associates. According to Power, getting there is not half the fun.

Their 2009 North America Airline Satisfaction Study, measuring overall customer satisfaction in seven distinct categories, reveals that overall customer satisfaction with airlines has now declined three consecutive years and stands at a four-year low. The categories Power assesses in order of importance are:

• cost and fees;
• flight crew;
• in-flight services;
• aircraft;
• boarding/deplaning/baggage;
• check-in;
• reservation.

According to Powers, the overall decline in ratings comes from decreased passenger satisfaction with in-flight services, the flight crew and costs and fees.

That dissatisfaction comes despite the fact that the Bureau of Transportation Statistics (BTS) reports the overall rate of on-time arrivals improved more than five percentage points from 2008 to 2009.

According to BTS the on-time rate now stands at 78 percent. That means, on average, four out of every five flights arrives on-time.

The Ratings

Power breaks the rankings into two segments: low-cost carriers and traditional-network carriers. The Power’s criteria for low-cost carriers are airlines that operate single-cabin aircraft offering typically lower fares. The criteria for traditional-network carriers are airlines that operate multi-cabin aircraft and utilize multiple airport hubs.

The best performers in low-cost category were JetBlue, Southwest, and WestJet. JetBlue led the way as the only carrier to receive an overall customer rating of 5 stars. Customers like the aircraft ( televisions and satellite radio access) and the inflight service (multiple food and drink options). Southwest Air earned 4 stars overall but rated a 5 in both reservations (easy online reservation site) and in costs and fees (low fares, no bag fees). WestJet also managed to receive 4 overall stars, offering positive check-in, boarding, deplaning and baggage experiences.

On the bottom, customers will definitely want to steer clear of Air Tran and Frontier, both earning but 2 stars on the 5 star rating scale. In other words, they may still be cheap but you definitely get what you pay for.

In the traditional category the top performers were Alaska Airlines, Continental and Delta. Both Alaska (great planes) and Continental (great prices) came away with 5 stars though the top overall nod went to Alaska. Delta earned 4 stars based on solid overall category scores. As for the bottom, Powers had both US Airways and United Airlines earning just 2 stars with neither their costs nor their services being terribly worthy of mention.

Flying Home for the Holidays

If you are one of those students who will be in need of a plane ticket come the holiday season, you will want to take the time to review the data. However, be advised that the Power ratings don’t seem to mention specific airports. My experience (and that of my family) has been that specific airports play a huge role.

For example, as a frequent flyer using many different airlines, my experience with Southwest and JetBlue has been excellent overall and Delta quite solid. However, Southwest has been great as long as I don’t go through Philadelphia. It must be noted that Philly just happens to be a US Airways hub.

Likewise, my experience and that of my family with Continental has always been sour despite the great prices. But every flight we have taken has utilized a connection through Newark, NJ. Simply stated, Continental has never been a positive experience for this traveler but I have never flown without connecting in Newark.

Ultimately, it is imperative that you talk to friends and family as well about their experiences with specific airlines and locales, then add in the Power survey results. It is important that you do your homework well, because when it is the holiday season, you will have that wanton desire to get home in a timely manner with your luggage at your side.

Most importantly, you will want to arrive there with your sense of humor intact.