Living on a Budget

• A budget is a spending plan that tracks all sources of income and expenses during a set period of time

Creating and following a budget allows you to:

• Pay your bills on time

• Cut costs

• Put some money away for emergencies

• Finish college with as little debt as possible

Creating a budget:

• Gather income information

• Gather expense information for college or university

• Gather information about living expenses

• Find out how you are doing

• Make adjustments

Cutting costs:

• Recognize the difference between needs and wants

• Share expenses

• Consider the pros and cons of living on campus

• Use low-cost transportation

• Seek out discount entertainment options

• Embrace secondhand good

• Avoid unnecessary fees

Understanding Financial Aid

Types of aid:

• Grant

• Scholarship

• Work-study program

• Cooperative (co-op) education

Navigating Financial Aid

The financial aid office can you help find:

• The largest amount of money that doesn’t need to be repaid

• The lowest interest rate on loans

• Work opportunities that fit your academic program

• Most pay for college with a combination of types of financial assistance

Qualifying for aid:

• Free Application for Federal Student Aid (FAFSA)

• Must be completed by the earliest deadline of the colleges you’re applying to

• Used to determine the amount of financial aid you will receive

Qualifying for Financial Aid

Steps to qualifying:

• Enroll half time or more

• Complete the FAFSA

• Complete the College Board PROFILE form if required

• Complete any additional required applications

• Follow instructions carefully, and submit each application on time

• Complete the classes and earn the required minimum GPA for the classes for which you were given financial aid

How to Keep Your Funding

• File for financial aid every year

• Meet all filing deadlines

• Talk with a financial aid officer immediately if you or your family experiences a significant loss

• Inquire every year about criteria-based aid

• Inquire about campus jobs throughout the year

• Consider asking for reassessment of eligibility

Achieving a Balance between Working and Borrowing

Advantages of working while in college:

• Earning money

• Developing a credential for graduate school

• Becoming more employable later

• Exploring career options

• Typically earning better grades if working 15 to 20 hours per week

Disadvantages of working:

• It’s very difficult to get great grades if you work full-time while trying to be a full-time student

• Part-time off-campus jobs that relate to your major or career plan are hard to come by

• On-campus jobs typically pay less than off-campus jobs

Student loans:

• Subsidized federal student loans

• Backed by the government

• Loan interest paid by the government while the student is in school

• Unsubsidized federal student loans

• May require you to make interest payments while in school

• May add interest to the amount owed

Parent Loan for Undergraduate Students (PLUS loans)

• Applied for and owed by parents

• Disbursed directly to students

• Usually charge higher interest than federal loans but lower than private loans

• Private student loans

• Offered through banks and credit unions

• Often have stricter credit requirements and higher interest rates

• Charge interest immediately

Managing Credit Wisely

Credit score:

• Derived from a credit report that contains information about accounts in your name

Understanding credit:

• Beware of making only a minimum payment

• Avoid making late payments

• Use credit cards only to build credit and for emergencies

• Managing Credit Wisely

Benefits of debit cards:

• You don’t always have to carry cash

• Your purchases will be limited to the funds in your bank

Disadvantage of debit cards:

• They provide direct access to your checking account