Financial issues are one of the top reasons that students do not complete or return to school. We will look at three aspects of money management and college life: financial aid, budgeting and money saving tips.
Financial Aid
In the United States, federal financial aid is administered by the US Department of Education. They are the authority in the United States on financial aid. Visit their website here: http://studentaid.ed.gov. To apply for federal financial aid you need to fill out a FAFSA form, (see: www.fafsa.ed.gov/complete001.htm) before you can receive Pell Grants and federal student loans.
Pell Grants
Pell Grants are need-based grants to low-income undergraduates and certain post baccalaureate students, to promote access to postsecondary education. As grants, they generally do not need to be paid back. Warning: if you drop classes you may need to pay back all or part of the Pell Grant. Talk to a financial aid adviser at your college before dropping any classes.
Student loans
Federal Student loans are based on the cost of attendance and expected family contribution. Most students are eligible for student loans. Your credit score will not affect your ability to get a student loan, but unpaid student loans may. Read more about financing your education with college loans.
A private student loan refers to a loan underwritten or guaranteed by someone other than the federal government. They may allow the student to borrow more than the cost of attendance.
Colleges, clubs, unions and businesses sometimes offer scholarships. Even if you do not want a student loan or a Pell Grant, often you need to apply for federal financial aid to qualify for certain scholarships. Some colleges will automatically enter you into the pool of applicants for scholarships when you complete your FAFSA. Scholarships can greatly reduce the amount of money you need to borrow. If you are serious about pursuing scholarships The Scholarship & Grant Guide is for you.
Budgeting
To avoid overspending, it is important to come up with a budget. If you are receiving student loans or other financial aid, you will need to divide the amount of the loan you receive by the number of months that you need the money to last. Then, add any other monthly income you receive to that amount. This is your monthly income.
Then make a list of monthly expenses:
Food
Groceries (non-food items such as toothpaste, deodorant, paper products, pet food)
Rent/mortgages
Phone
Electric bill
Transportation costs
Miscellaneous items (such as hair-cuts, clothing, and be sure to allow for entertainment even if it is one movie a month)
Make a list of expenses that you pay on an annual or semi annual basis and prorate to a monthly amount. Add up all your expenses. These are your monthly expenses. Hopefully it is smaller than your monthly income. If you have extra, congratulations, put that money in a savings account each month as an emergency fund.
If you are short, congratulations, at least you know. Look at your expenses, see if there is something you can cut down on, or cut out completely. Are you eligible for more financial aid? College Student Budget
College Money Saving Tips
Open Office: Often you need to open, edit and send word documents, power points or excel spread sheets in Microsoft office format. Unfortunately, the software is expensive. Open Office is a free open source alternative to Microsoft Office. It is able to read and edit documents, spreadsheets and slide shows made in Microsoft office. Warning: when you save documents in Open Office make sure they are being saved as Microsoft documents if you are sending them to someone who is using Microsoft office. Click here to learn more.
Books College bookstores are almost always a rip-off. When you receive your list of required text books, write down the ISBN number. If you don't know the ISBN, go to the college bookstore and copy it from the books. Then, go to a local bookstore or amazon.com. If you go to amazon.com, this trick may save you money on new books. Search for your textbook with the ISBN. Then click on 'Used' followed by clicking on 'new'. There is a new used book section. If your books are not listed, you haven't lost anything and can still buy a new or used book from amazon.com. However if there are “new used” books available they are often 20-40 % lower than the price on the books main page on amazon.com
Pack a lunch The cafeteria or food court is generally overpriced and lacking choices with nutritional value. You can pack a lunch for a fraction of the price, and it can be healthier for you.
Computer Use the computer at school. If the price of broadband Internet access is just one more thing you can not afford, consider using the computers in the computers commons at the school. They have the software you need, a fast Internet connection and printers that work.
Do without It goes without saying that nobody “needs” a four dollar cup of coffee. If you are feeling deprived of your mocha latte with an extra shot of espresso, use it as an OCCASIONAL reward for passing a test or getting a good grade. Otherwise, bring coffee from home.
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Copyright 2008 Gene Grzywacz DO NOT COPY
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Financial issues are one of the top reasons that students do not complete or return to school. We will look at three aspects of money management and college life: financial aid, budgeting and money saving tips.