Going to college is a noble choice. Navigating the financial aspect of that decision can be quite daunting. CheapScholar.org provides a number of resources to help our readers traverse the challenges associated with paying for college.

I have always been a big fan of infographics – especially those that are informative and esthetically pleasing to the eyes. The following infographic is chocked full of great information related to the financial aid process. Some of the topics covered are: FAFSA, Federal Loans, Comparing Financial Aid Packages, The Costs of College, Grants, Scholarships, and Work Study. Enjoy!

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Endless discussion, and even a little nail-biting, surrounds the expenses involved in attending college.  Young people just beginning to plan on applying understand that a mountain of costs looms over the horizon.  Many of their parents lose sleep years before these applications are considered, and virtually everyone is schooled very well in an inescapable reality: college means money, and quite a lot of it.  So, all the steps are taken in advance.  Scholarships are eagerly sought after.  Student loans are signed with honest intentions and shaking pens.  Hands reach out to grasp at grants, and savings accounts begun from newspaper routes and baby-sitting jobs are pulled and offered up in the great piggy-bank cracking that is the funding of college education.

In all of this scrambling, strangely, one relatively critical element is somewhat left to the side.  Namely: on what, exactly, will the student live during this glorious period of learning?  Certainly, arrangements are made to an extent.  Dorm rooms are secured or staying at home is chosen as the best option.  Money is calculated as to meals, a tiny amount is set aside for a movie now and then, monthly bus passes are sagely purchased, and the notorious noodle diet is in the air.   Students always scrape and struggle, it is felt, and there are always part-time jobs out there to cover what are typically called, “discretionary expenses.”  The kids, it is believed in alternate waves of desperation and hope, will simply learn to go without fun.  They will, in fact, be so poor that they will be able to better devote themselves to study.  A win-win, all around.

Faith is a wonderful thing, but this particular type simply does not fly.  Somehow, the shadow of student debt, and debt accumulated only from living choices, mounts.  Somehow, all the planning and the budgets and the determination forged from the best intentions translate into ridiculous interest on a Visa bill for nights out very few can recall when the statement arrives.  Parents make hard confetti out of credit cards and scissors.  Students, and of all ages, curse their own indulgences for rock and roll, and the packets of noodles become fixtures of daily life as consistent and exciting as breathing.  It is, in a word, too difficult to resist spending money not there, and especially under the pressures of college living.  Add to this the significant, if not spectacular, fact that masses of young people living together tend to pursue fun in herds, and the issues are hardly mysterious.  No wonder credit card companies are very, very fond of issuing their products to student populations.  Dogs will, after all, jump at bones waved in front of their wet noses.

There is an answer.  It is not especially pretty, but this is not a scenario inviting the full-on happy ending.  The answer is that the student must approach the idea of entertainment expenses with all the seriousness they attach to the tuition fees.  It is all very well for everyone concerned in plotting the budget to casually wave away frivolous spending as a thing that will, miraculously, just stop.  It will not.  It will happen for the eager young freshman, as it will happen for the middle-aged junior needing the higher degree.  What must be done, then, is the calculating of something the younger person thought they would never need to see again: the allowance.  If the word creates a shudder down the spine of the imminent student, it is still the only rational means of both accommodating the inevitability of mindless spending and a way of restricting it.  Simply, a certain amount must be set aside apart from rent, tuition, books, computers, utilities, and meals.  An amount must be delegated as a “junk” fund, although it may go under the more rigid title of “entertainment.”   This is the money with no real intent to it, and which is as absolutely vital to the success of the college career as the professors.

Life, as most students learn fairly quickly, is a fluid thing.  It presents opportunities for fun all the time, and that fun is a potent force when it is being urged upon you by five, very cool people standing in your doorway, ready to head out for the evening.  With an allowance in place, the fun – or at least some of it – can be safely had.  Without it, and all too frequently, the student gently weeps over the chunks of a dismembered credit card.  And a bowl of noodles.

About the Author

Jack is an experienced freelance writer working for a professional custom writing service. Having received his PhD from Rutgers University, he enjoys writing in the fields of English and Literature, Philosophy and Religion. With his extensive research techniques and a true life passion for writing, he takes pride and joy in providing top-notch writing services and sharing his knowledge and experience with others.

The purpose of CheapScholar.org is to provide families and their students with the financial tools, resources, and knowledge that will assist in their pursuit of a college education.

As a professional school counselor at the high school level, you often serve as the “front-line” for fielding questions related to college expenses from students that are contemplating a post-secondary educational experience.  At CheapScholar.org, we hope to provide a support tool for not only you but also the families and students in which you serve.

In an effort to better help you and your families, CheapScholar.org has put together this Paying For College Toolkit as a way in which you can provide quick reference information to those visiting your office (in person or online).

Implementing CheapScholar.org as a resource for your families is as easy as 1-2-3.

1. Below you will find a number of pdf handouts (sized for easy printing) referencing some of the more hot topic issues related to the financial aspect of the college experience. Feel free to print these off and use them as a quick resource in your office to provide to students and families as questions arise.

2. Provide a link to CheapScholar.org on your High School Guidance Counselor Webpage. This will insure that your students have access to the most current information related to their paying for college experience. In addition, they can ask questions at anytime to receive prompt helpful advice. The following 2 links are the most popular:

CheapScholar’s College Resource Center: http://cheapscholar.org/about/college-resource-center/

CheapScholar’s Scholarship Resource Site: http://cheapscholar.org/find-scholarships/

3. As you implement CheapScholar’s Paying For College Toolkit as a resource for your school, you may encounter additional questions or topics that are not covered by the handouts below. We encourage you to send us those topics/questions so that we can incorporate them in future releases of the toolkit. If you would like to receive future updates to the toolkit, please send us your contact information and we will be glad to add you to our notification list.

Click here if you would like to see how one school utilizes the toolkit.

We hope that you find this Paying For College Toolkit helpful. If you know anyone else in your profession that may find benefit from this information, please be sure to share this resource with them. We are always glad to help.

CheapScholar’s Guide To:

Filing Your FAFSA

Need-Based vs. Merit-Based Financial Aid

Finding Outside Scholarships

Federal Loan Programs

Landing The Perfect Work Study Job

Having A Car On Campus

Paying Tuition In Three Easy Steps

Saving On Textbooks

Getting Your Degree In Three Years

Avoiding Tuition Increases

Paying For College When You Have Bad Credit

Student Financial Literacy

Choosing Private Education Loans

Paying Back Student Loans

MASTER PDF That Includes All The Handouts Referenced Above

With the economy making a slow trudge back from the brink, many are considering going back to school. Student loans are the only viable option for many potential college students, but that means incurring extra long-term debt at the worst possible time. A lot of language about reform has been batted around at all levels of government this past year. What has changed, what are politicians promising, and what policies are on the way?

Pay as You Earn

President Barack Obama announced in October 2011 that he would be making some major changes to the federal student loan program. Introducing the “Pay As You Earn” proposal, he promised smaller monthly payments for over 1.6 million students.

It won’t take effect until 2014, but you will then be able to ensure your student loan payments are no more than 10% of your income. If you make payments for 20 years, your balance may then be forgiven. The current Income-Based Repayment Plan (IBR) only allows your payments to be reduced to 15% of your income, with balance forgiveness after 25 years. Visit this link to find out if you are eligible.

President Obama announced recently that he intends to spur this to 2012 for students who are already struggling with payments. If you are employed in public services, such as nursing or teaching, you may get balance forgiveness in as soon as 10 years.

Bear in mind that none of this affects students who got loans for school from private lenders.

Loan Consolidation

Because of multiple payments for different loans, there has historically been a high default rate, as juggling multiple loans gets tricky. Beginning January 2012, 6 million more students were able to consolidate all their loans so that interest rates are more affordable.

It is not advised to do a loan consolidation with a credit card. If you can pay off a short term loan, check out financial tips from Plain Green Loans. Taking advantage of the consolidation earns you a 0.5% reduction of your interest rate.

Better Informed

As part of these reforms, the Consumer Financial Protection Bureau and the Department of Education have partnered up to offer the “Know Before You Owe” project. This is a form that endeavors to help potential students better understand what type of aid they qualify for, how much they may receive, and how to compare the different financial aid and work study options offered by various colleges. They believe that a lot of students sign for loans each year or each quarter without really understanding the repercussions for default or even how much they may end up owing, much less what other options exist.

If you are interested in seeing what a form looks like and helping the organizations with the project by providing feedback, please visit: http://www.consumerfinance.gov/students/knowbeforeyouowe/

Interest

One thing that isn’t very clear in any of President Obama’s speeches is that subsidized loans are slowly disappearing. The government (beginning July 1st, 2012) will no longer subsidize the interest for graduate student loans and interest will also start accruing for undergraduate subsidized loans during the 6 month grace period after graduation.

In addition, it is probably important to mention that the interest rate on subsidized student loans is doubling from 3.4% to 6.8% this coming academic year.

Startup Encouragement

The Small Business Administration (SBA) hopes to help young entrepreneurs by offering the Student Startup Plan. While the current administration says it wants to support and grow new startups, the SBA is backing it up by promoting the IBR as part of their startup planning for recent graduates. The ideology is that student loan payments should not stand in the way of anyone starting a business.

Graduate and Professional Students

Meanwhile, the Budget Control Act (BCA) became law in August 2011. This law makes it so that graduate and professional students can no longer get Stafford Loans. While the total annual loan amount allowed ($20,500) has not changed, the cap has traditionally been only for unsubsidized loans. Now that there are not subsidized loans, this means you may borrow the same amount, but now you pay much more in interest.

Other things that changed with the BCA include disallowing the Department of Education from offering repayment incentives such as interest reductions or rebates to encourage on-time payments, though they are still allowed to offer rate reductions if you are a Direct Loan borrower who has opted to have your payments automatically withdrawn from your bank account.

Private Borrowers

If you were a private borrower, Tennessee Rep. Steve Cohen and other Democrat Congress members are working for some relief for you, too. Since 2005, thanks to the Bankruptcy Reform Bill, you could not declare your privately held student loans in a bankruptcy. He is looking to reverse that, likening it to credit card debt. He is facing major opposition from his Republican counterparts, however.

Demand for Bigger Reform

Tuition will continue to climb as long as enrollment is up – and it is. The Occupy Wall Street movement has spawned Occupy Student Debt – asking for 0% interest on student loans, total and immediate debt forgiveness for prior students, and a future of free public college. While the solvency of these demands is debatable, politicians are listening. They have to. These future students are current voters.

Today’s guest article was provided by Christina Jones who is a Blogger Outreach Specialist with Blue Glass Interactive

Sources:

[1] http://www.whitehouse.gov/the-press-office/2011/10/25/we-cant-wait-obama-administration-lower-student-loan-payments-millions-b

[2] http://www.finaid.org/loans/forgiveness.phtml

[3] http://www.secureloanconsolidation.com/blog/changes-in-2012-for-holders-of-student-loan-debt/

[4] http://www.whitehouse.gov/economy/business/startup-america

[5] http://www.sba.gov/startupamerica/student-startup-plan

[6] http://www.loyno.edu/financialaid/federal-student-loan-changes-2012-2013

[7] http://www.cbsnews.com/8301-503544_162-20126172-503544/who-will-benefit-from-obamas-student-loan-plan/

[8] http://www.occupystudentdebtcampaign.org/our-principles/

Education tax credits play a big role when it comes to college accessibility. The funding available through the government in the form of education tax credits can sometimes make the difference on whether a college student will be continuing their education from one year to the next or be required to enter the work force prematurely.

The following infographic shares some great statistical information related to education tax credits. Enjoy!

Infographic courtesy of CaxtonFx.com

Share The Image Above On Your Site Today! Cut and copy HTML code below:

<a href="http://www.CheapScholar.org" ><img src="http://cheapscholar.org/wp-content/uploads/2012/03/Education-Tax-Credits-InfoGraphic.jpg" alt="Education Tax Credits" width="500" border="0" /></a><br />Via: <a href="http://www.CheapScholar.org">CheapScholar.org </a>

When preparing to enroll in a graduate program, it is important to budget carefully in order to avoid accumulating debt. There are many ways that students can keep costs low while studying to come out with a degree for the least possible cost.

Keep Working

Rather than putting off your job to further your education, keep working while you study to maintain your income. You won’t have to borrow as much, or if you earn enough, at all. If possible, work close to home to keep your travel costs down. Buy inexpensive work clothes that you can wash at home to save on dry cleaning costs. And of course, take a lunch to work with you instead of eating out every day.

Study Online

Balancing a job and classes can be tricky, but it is much easier if you complete your studies online. You can listen to lectures at your leisure rather than having to be on campus at specific times for classes. You also save money that would otherwise be spent commuting to campus several times each week. Additionally, tuition for online master’s degree classes is frequently less expensive than for the same class taught on campus.

Save on School Supplies

Textbooks are especially expensive, but there are many ways to save on them. If you have an e-reader, find out whether your textbooks are offered in e-book format, which is a less expensive option than paper books. You can also look into renting textbooks, which is significantly less than buying books. If you do have to buy a book, get it used if possible and resell it at the end of the class to get some of your money back. In order to further lower school-related expenditures, buy school supplies such as pencils, paper, ink cartridges, etc., in bulk whenever possible.

Budget at Home

By learning to live frugally, you can save untold amounts of money. Forgo cable, which is expensive and distracts you from focusing on your studies. You can also save money on your utility bills by using your heat and air conditioning sparingly and using space heaters or window air conditioners in areas where you spend most of your time. Use coupons and other money-saving methods when grocery shopping.

Track Your Money

Before enrolling in your program, make a plan for how you will pay for it. Create a budget for the years in which you will be in school; calculate how much money you expect to bring in each year through income, financial aid, and student loans. Subtract the tuition for the year, and then divide the remaining amount by 12 to determine how much money you will have leftover each month. Plan how you will allocate this between housing, food, transportation, insurance, and spending money.

Many worry that an advanced degree is out of reach due to limited finances, but anyone can learn how to budget to make dreams of a graduate degree within reach. With a little planning and foresight, you will soon find yourself applying to graduate school, with the peace of mind that comes from knowing that you have what it takes to succeed in your venture. Best of luck!

Today’s guest article was provided by Joseph Baker.

The investment in a college education can easily be the most expensive purchase a family can make (with the exception of their home). However, from what I can see with the rising cost of college, it may be possible for that education investment to surpass the purchase price of even a modest home.

It is not uncommon for families to get a pre-approval for a mortgage loan before they can purchase a home but, as a society, we have no official process or financial check point in place when the same family is looking at committing (or possibly over committing) themselves to a similar sized investment in a college education.

My hope is that a family would spend as much time focusing on their college investment as they would on securing the right priced home and the accompanying mortgage. However, that may not always be the case.

The following represents some examples of what families/students may experience if they embark upon the college years and are unprepared for the associated costs:

• A student may end up going to a college that is way out of their price range. If they have a zero EFC and have to pay 18K a year out of pocket to cover costs, that school might not be the best fit (financially not necessarily academically).
• If a student is emotionally and academically connected to the University and is willing to pay the cost (no matter how high) to attend, they may end up being saddled with excessive student loan debt.
  • Which they will be stuck with long after graduation
  • More than likely it will inhibit their ability to be contributing alumni (donating back to their Alma mater)
• Chances are… a student may not be able to come up with the funds (through loans or other means) to pay for even the first semester and be unable to register for subsequent semesters and be forced to withdraw from the college.
  • Unfortunately, they wont be able to have access to transcripts since they have an outstanding financial obligation to the college.
• A student can have a bad experience (financially) at one college and they may decide to forgo their educational goals altogether.. which, in my mind, would be a travesty.

I am sure there are probably some other issues/challenges/hurdles that you may be able to identify that are born from not investing the time and research into college expenses and how to pay for them. If you can think of any, please feel free to share below in the comment section. The more challenges we can identify, the better we are able to respond to eliminating those hurdles for families/students.

In the meantime, I would encourage you to utilize CheapScholar’s College Resource Center to find great tips about saving for college, paying for college, student loans, and the financial aid process. Education and knowledge is the key to helping future generations realize their college goals and avoid some of the pitfalls mentioned above. My hope is that CheapScholar.org is helping out in that effort.

I always enjoy a good infographic and I think the one below is very fitting for the subject matter we cover on CheapScholar.org. Colleges costs have been increasing exponentially over the years. However, the amount of financial aid offered by many institutions has also been increasing at the same time. The additional amount provided through scholarships and awards probably doesn’t fully cover the increase in tuition but it does help to close that gap. Education tax credits have been helping to bridge that gap as well… Anyway, enjoy the following infographic!