College is an investment. I know you have probably heard that often, but it’s true. My advice to you as your family begins to research colleges and universities is to not let the cost or the sticker price shock you. It is very rare that people pay that exact cost because of the many financial aid opportunities available. When I say “financial aid,” that doesn’t only equal loans.

Don’t limit your college options, because of the cost. Here are ways to reduce that sticker price:

1. Apply to colleges early. Don’t wait until March or April. Often times, departments have already awarded their scholarships.
2. File the FAFSA (ed.gov).
3. Don’t be afraid of student loans.
4. Always seek out additional scholarships outside of the university you plan to attend. Never stop applying for outside scholarships, even while enrolled in college. Every little bit adds up and helps.
5. Take summer classes at a local community college. This will save money and time, especially if you plan to double major or are a student athlete, musician, etc.Be sure to check with your school’s registrar and academic advisor that the credits will transfer accordingly before you take any classes elsewhere.

Be proactive (not reactive) to the college admission process. I’ll say it again: Do yourself a favor and file the FAFSA. You’re only doing a disservice to yourself when you choose not to explore all avenues for possible financial aid. Filing the FAFSA won’t hurt you. It allows you to truly maximize all financial opportunities at each school.

The post Student Loan Premier appeared first on Next Step Money.

If you’re a student who just landed an internship or part-time job, it’s time to think smart about money. Those paychecks will begin rolling in, and having a plan to manage your money is essential.

College is certainly the best time to begin healthy financial habits. For example, creating a budget and living within your means can have an impact on years to come.

“There are so many important decisions that college students have to make in support of the ultimate goal to become financially independent,” according to the U.S. Department of Education. “And, as tuition, books, housing and more only rise, the dream of financial independence has only become more difficult, and stressful.”

Start off on the right foot with spending and saving habits that will facilitate financial independence down the road.

Create a Financial Plan

Creating a financial plan during your college years can keep your degree debt low. Let’s face it, financial aid doesn’t even scratch the surface when it comes to your degree debt after you graduate.

Items to consider when budgeting your upcoming semesters are . . .

• Estimated tuition cost
• Fees for special classes
• Room and board (on or off campus)
• Books and supplies
• Creature comforts

You can get a good idea of each item’s cost by talking with your financial aid office. The better you budget now, the less money you need to borrow, and the bigger the impact on your loan debt later.

“Financial responsibility is one of the many skills students need if they are to be successful in college and life,” says Theresa Hitchcock, Director of Advising and Resource Center

University of Southern Indiana.

Make Budget Adjustments

You are new to financial planning, and you will certainly need to make adjustments to your budget as you go. However, it is important you stick to the budget you outlined.

Your college budget is merely a learning opportunity. The first few semesters of budgeting all those college needs will be challenging. But always remember that you can make changes.

Just like everyone else in or out of college, you will face some financial firsts that will be cause for adjusting your budget. Seek advice from parents or financial aid advisors, since they have all made budget adjustments multiple times in life.

Learn to Balance Your Budget

Balancing your budget is the most difficult part of learning how to be financially independent. This is even more challenging for those in college.

“College is also synonymous with young people assuming a greater responsibility for managing their own money – away from the reliable security of mom and dad’s wallet,” according to U.S. News.

You will need to go with the flow and get crafty when it comes to spending habits. And you will be balancing your budget to fit your internship or part-time job as well.

However, when it comes to saving a sliver of those hard-earned paychecks, college students have a few advantages for spending less.

• Student discounts. You can find a variety of stores on and off campus that offer student discounts. You can save up to 20 percent in some cases just by flashing your student ID.
• Keep textbook cost low. The digital era has created several ways for you to get buy cheaper textbooks, or in some cases, get them for free. Check Amazon for discounts and ebooks. You can even make copies as you go using the textbook on file at your university library. This could save you hundreds every year.
• Make saving mobile. One way to save more is to not even see the money. You can set up an automatic deposit from your internship or part-time paycheck to your savings account.

Saving Money Can Be Habitual

If you set up a clear financial plan with a semester budget, you are on the right track to financial independence. And you may even find saving to be habitual.

After all, who doesn’t like seeing more digits in their checking or savings account?

Making a habit of saving can lower your school debt after graduation.

Or you may want to put the paychecks from your internship or part-time job toward a study abroad program to further your academic growth. And if you are studying abroad in the U.S., you will find financial independence to be liberating so far from home.

Financial independence certainly begins in college. You’re finally staking claim to your very own personal and professional growth in life.

Your decision to take on an internship or part-time job is a good indicator of future success. But make sure you spend wisely.

The post Consolidation Loans appeared first on Next Step Money.

The Lowdown on Student Loans

Student loans can be a lifeline if you’re in a bind for tuition but make sure that you chose them wisely

The cost of a college education is increasing at an alarming rate. Financing a four-year college education often requires some sort of financial assistance.

You might agree to accept student loans when your grant, scholarship and out-of-pocket contributions are exhausted. You may qualify for one or more types of loans to cover tuition, room, board and book expenses. But remember that most loans must be repaid with interest, so consider them carefully.

There are four basic types of student loans that are available to students:

1. The Stafford Loan  
   The Stafford Loan requires no collateral, has a low interest rate and must be repaid beginning six months after graduation for students attending school at least “half time.” (Half time means you have to be taking at least six credit hours a semester.) You may borrow a minimum of $2,625 your freshman year and up to $5,500 your senior year. In many cases, the Stafford Loan can be subsidized based on financial need, meaning that interest will not start accumulating until six months after you graduate. Stafford Loans are designed for students who cannot cover all of their expenses during college and will likely gain employment upon graduation.

2. Perkins Loan
   The Perkins Loan is based entirely on financial need. The maximum amount a student can borrow is $4,000 per year for undergraduate and $6,000 per year for graduate school. These loans have low interest rates and do not require repayment until nine months after you graduate.

3. The PLUS Loan
   The PLUS Loan (Parent Loan for Undergraduate Students) is offered to parents of dependent students who require financial assistance. The interest rate is low and repayment begins 60 days after the final loan payment. If you receive a loan, you must sign a promissory note. This document acknowledges your acceptance of the loan’s terms and conditions.

4. Personal Student Loan
   These loans are offered to students or parents of students by banks and financial institutions. The interest rates for these loans can vary from time to time and might be based on such things as credit score, the type of college programs (undergraduate, graduate, medical school, law school, business school, etc.) they are for.

Typically, student loans are managed by banks and financial institutions, which handle payment options and determine how much interest you will pay. The bank will provide you with a payment schedule, as well as the approximate date that the loan will be paid in full.

For a new college graduate, the end of a loan payment can seem like a lifetime away. It can be shocking to open up that first student loan bill and not know how you’ll pay it. If you don’t find a job right after graduation, you may find yourself unable to repay the loans. If repayment is difficult or impossible, there are alternatives. Forbearance allows you to take a 90-day break from the repayment period. However, be aware that doing so, involves a penalty. You’ll have even more interest to pay at the end of the period. Forbearance is a last resort if you’re experiencing temporary financial difficulties.

A consolidation loan is another alternative, should you have loans from multiple companies and find the various payments are too difficult to manage. Consolidation loans combine all student loans into one new loan with one single payment. The payments are often more affordable than paying multiple loans, but they also come with a price. A consolidation loan usually extends your repayment period by a number of years, thereby adding additional interest to the amount you owe. It is beneficial to make payments larger than the minimum payment whenever possible in order to reduce the amount of money you owe in the long run.

Remember, loans must be repaid within a specified period of time. The consequences of failing to repay can result in default, which can damage your credit rating and your chances of getting a car or a home in the future.

By reviewing your financial situation now, you may be able to contribute more from your pocket, thereby saving on the amount that you must borrow. Examine all of your financial-aid options. Financial stability is one part of a successful future. By making intelligent financial decisions and managing your loans responsibly, you’ll be able to avoid overwhelming debt and be able to start your adult life on the right foot.

The post The Lowdown on Student Loans appeared first on Next Step Money.

If you’re a student who just landed an internship or part-time job, it’s time to think smart about money. Those paychecks will begin rolling in, and having a plan to manage your money is essential.

College is certainly the best time to begin healthy financial habits. For example, creating a budget and living within your means can have an impact on years to come.

“There are so many important decisions that college students have to make in support of the ultimate goal to become financially independent,” according to the U.S. Department of Education. “And, as tuition, books, housing and more only rise, the dream of financial independence has only become more difficult, and stressful.”

Start off on the right foot with spending and saving habits that will facilitate financial independence down the road.

Create a Financial Plan

Creating a financial plan during your college years can keep your degree debt low. Let’s face it, financial aid doesn’t even scratch the surface when it comes to your degree debt after you graduate.

Items to consider when budgeting your upcoming semesters are . . .

• Estimated tuition cost
• Fees for special classes
• Room and board (on or off campus)
• Books and supplies
• Creature comforts

You can get a good idea of each item’s cost by talking with your financial aid office. The better you budget now, the less money you need to borrow, and the bigger the impact on your loan debt later.

“Financial responsibility is one of the many skills students need if they are to be successful in college and life,” says Theresa Hitchcock, Director of Advising and Resource Center

University of Southern Indiana.

Make Budget Adjustments

You are new to financial planning, and you will certainly need to make adjustments to your budget as you go. However, it is important you stick to the budget you outlined.

Your college budget is merely a learning opportunity. The first few semesters of budgeting all those college needs will be challenging. But always remember that you can make changes.

Just like everyone else in or out of college, you will face some financial firsts that will be cause for adjusting your budget. Seek advice from parents or financial aid advisors, since they have all made budget adjustments multiple times in life.

Learn to Balance Your Budget

Balancing your budget is the most difficult part of learning how to be financially independent. This is even more challenging for those in college.

“College is also synonymous with young people assuming a greater responsibility for managing their own money – away from the reliable security of mom and dad’s wallet,” according to U.S. News.

You will need to go with the flow and get crafty when it comes to spending habits. And you will be balancing your budget to fit your internship or part-time job as well.

However, when it comes to saving a sliver of those hard-earned paychecks, college students have a few advantages for spending less.

• Student discounts. You can find a variety of stores on and off campus that offer student discounts. You can save up to 20 percent in some cases just by flashing your student ID.
• Keep textbook cost low. The digital era has created several ways for you to get buy cheaper textbooks, or in some cases, get them for free. Check Amazon for discounts and ebooks. You can even make copies as you go using the textbook on file at your university library. This could save you hundreds every year.
• Make saving mobile. One way to save more is to not even see the money. You can set up an automatic deposit from your internship or part-time paycheck to your savings account.

Saving Money Can Be Habitual

If you set up a clear financial plan with a semester budget, you are on the right track to financial independence. And you may even find saving to be habitual.

After all, who doesn’t like seeing more digits in their checking or savings account?

Making a habit of saving can lower your school debt after graduation.

Or you may want to put the paychecks from your internship or part-time job toward a study abroad program to further your academic growth. And if you are studying abroad in the U.S., you will find financial independence to be liberating so far from home.

Financial independence certainly begins in college. You’re finally staking claim to your very own personal and professional growth in life.

Your decision to take on an internship or part-time job is a good indicator of future success. But make sure you spend wisely.

The post Student Loans appeared first on Next Step Money.