School/College Archives - Page 4 of 5

Best of SSH: Back To College Edition

August 12, 2009 Leave a Comment

Last year I wrote a series of posts called “Back to College.” If you or your child is a current or future college student, please check out my posts. I have information on financial aid, deciding where to go to college, getting good deals on textbooks, dorm room supplies, and more!

The Importance of Planning – This post explains about early planning to finance your college tuition and to prepare yourself (or child) academically for college.

Deciding Where to Go to College – This tells you some basic things to look at when deciding where to go to college, and it tells you about different ways to do your own independent research on schools you’re interested in.

Guide to Fiancial Aid, Part 1 – Basic guide to getting financial aid.

Guide to Financial Aid, Part 2 -Shopping for student loans, Positives & Negatives to getting loans through your school, and My experiences with fiananical aid.

A “Major” Decision – About when & how you should choose your major. What factors should you take into account?

Dorm Room Supply List, Part 1 -School and office supplies, Furniture & other big items

Dorm Room Supply List, Part 2 – Household and every day items, Personal Touch/Decor Items, and personal entertainment items.

Textbook Dollars – Chart for a couple of years ago that explains where your textbook dollars go.

Textbook Q&A – Answers to some basic questions on buying textbooks

Beating the Bookstore – Tips & Strategies to help you saving money on textbooks (and all books for that matter.)

Beating the Bookstore Again – Information on bookstore refunds and buy backs, how to get the most money selling your books.

-Jerri

Filed Under: School/College

Back to College: Beating the Bookstore Again

July 31, 2008 Leave a Comment

Here are a few more tips to help you beat the bookstore:

Refunds – If you buy from the bookstore, make note of the refund policies. For a number of days, you’ll be able to get a full refund on the books you buy (with a receipt of course) but after the deadline passes, you will not be able to get a refund. Instead the clerk will tell you that you have to wait until the buy back period at the end of the semester.

Beware of the Buy Back – Unless you just cannot stand to look a book for another second, and you have no hope of selling it elsewhere, or you desperately need money now, I don’t advise selling your book to the bookstore.

I participated in the Buy Back program a few times when I was in jr. college to sell books that I had absolutely no use for, and as my husband would say, “it’s a big racket.”

Here’s an example of what I mean: First, they only have a demand for a certain number of books, so by the time you go to sell your book, they may have reached their quota, and won’t buy your book at all. But in a way that’s a good thing, because if you sell your book to them, you won’t get much for it. For example, say you bought a new book for $100. The bookstore will probably pay you $40 for that book. (maybe a little more or less, depending on what kind of book it is), but they will then turn around and resell that book for about $75 (more or less). And it goes on from there, when the next person who buys the book for $75 participates in buy back and only gets $30, and then the book is resold again for a greater value. (so they can profit again and again)

Sell the Books on Your Own
If you don’t want to keep your old textbooks, and you don’t feel that the bookstore is willing to pay a fair price for them, then you’re better off to try to sell the book elsewhere.

Ask your friends and classmates if they are interested in the book. They will be happy to buy the book from you rather than buying from the bookstore, and if they don’t need what you have, they probably know someone who does. Or you can make flyers and post them on the bulletin board. Use the college’s online message board if possible to advertise your books or advertise on Facebook to a broader audience.

You can also use ebay, amazon, or some of the other websites that I listed in the previous post to sell your books. A few weeks ago I also found out about this website where you enter in the ISBN for your books, and the site makes you an offer for the books & even pays the postage for you to send them the books. It’s called Cash4books. I’m not sure how much they’ll offer you. It may not be as much as the bookstore offers, or it may be more. I suggest getting an appraisal on this site, and then going to the bookstore to find out how much they offer, and then you can go from there.

In truth, if you’re being offered $20 for sure, then you may not want to hold out for $35 potential dollars on ebay. It’s up to you, but as for me, when I pay money for a book, I’d rather keep it, than just give it away for practically nothing, and allow the bookstore to profit from it again…but that’s just me. =)

Filed Under: personal finances, saving money, School/College

Back to College: Beating the Bookstore

July 30, 2008 2 Comments

After being in school for 2 or 3 years, I finally decided to check online about buying some used books, and I was very surprised to find that I could get used book for about half the cost of the used books at my school, and used books that were about 1/4 the cost of a new book at my school. Obviously this adds up to huge savings when you take a book that’s $50 new and $30 used at the bookstore, and you can find it for $15 or $20 online, or when you find a $100 book for $35 or $40

Here are some tips & strategies that will help you to save money on textbooks (and all books for that matter.)

1. Buy used.

2. Buy an older edition of the book. – Often they put out a new edition of a book, and there are no used copies. You may just have to grit your tooth and shell out the dough for the new book, but you may also consider locating an older edition online. You should check with the professor to find out if it’s okay to get an older edition first. Sometimes it is absolutely necessary to buy the new book, as the newer book may contain important passages that the old book did not. (lit books & math books can’t really be substituted b/c they make changes) But in some cases, (such as with history books & some social studies books) there really is not much change in the content of the book, and the teacher may allow you to use an older version if it is available to you. The very first day I attended classes, my history professor put this way: “We have a new book this semester. If you know someone who has the older edition, feel free to use it instead. The new book offers no new information that you’ll need. Basically every couple of years, they decided to add one or two new photos, rearrange a couple of chapter, jack the price up $10, and then you get screwed.” This sentiment surprised me, as I didn’t expect the professor to feel that way, let alone say it, but I’ve found it to be true nonetheless. So if the teacher allows, find an older edition of the book.

3. Buy at the off campus bookstore. If you go to the college bookstore, and they are out of used books, then go off campus. Off campus bookstores generally have a good selection of new & used books, and they are generally a good bit cheaper. But just as with the college store, used books will be the first to go at the off campus store as well, so you need to shop there early.

4. Buy from fellow students. If you look around campus, you’ll find flyers on bulletin boards, where people are trying to sell their old books. They are selling them b/c either the bookstore met its buy back quota and would not buy their book back, or because they didn’t like the price that the bookstore wanted to pay them for the book. Either way, they want to get rid of that book, and they will be willing to sell to you at a lower price than what the bookstore offers.

5. Facebook. I’ve been told that a lot of students are now advertising the sell of their old books through facebook.

6. School’s Online Messageboard – Same concept. Some school’s now have an online email or message board system that allows students to post up books that they are selling (or books they are looking to buy.)

7. Library – A lot of the textbooks needed for various classes should be available at the school library. You’ll need to go early if have any hopes of checking them out, and there may be a limit on how long you can borrow them for, but it’s definitely something to look into.

8. Book Swap/Trade/Borrow – Talk with friends about the classes that you (and they) are taking or have taken. You may be able to work out a trade, or do some book borrowing. For instance, my husband loaned out a lot of books to friends who took classes that he had already taken. And I had a friend who needed a math book that I had, so I gave him the math book, and he gave me a psych book.

9. Buy Online – This is a sure way to get a good deal of 50-75%, but it does take time to do the research to find all the books you need and make sure you’re getting a good deal, so you have to get started early. Here are a few sites to consider:
Ebay – I bought most of my books on ebay and saved a ton.
Amazon – I haven’t bought as many books here, but I did buy a couple here when they weren’t available on ebay.
paperbackswap.com – I haven’t used this site, but apparently you list books here that you are willing to swap for others. I’m not sure if there’s an option to buy a book without swapping or not, but I did read that you get 2 free books, whenever you list a book for the first time.
buyusedtextbooks.com – buy/sell books on this site
abebooks – buy/sell books

You can find more by simply searching “Buy textbooks” on your internet search engine.

Filed Under: saving money, School/College

Back to College: Basic Textbook Q & A

July 28, 2008 Leave a Comment

There are a number of things to consider when getting ready to buy textbooks. To get started, I put together this Q&A about some basic concepts of textbook buying procedures.

Should I buy books before classes start or wait until after the first meeting?
It depends on how you look at it and what your situation is. Buying early is a great way to avoid waiting in long lines, and if you’re planning to buy used books, buying early will help you to ensure that you get the used books before they sell out. Also, if there is absolutely no chance that you will drop the class, I suggest buying your books early.

However, if you are sort of “feeling” your way through, and you think there is a possibility that you may drop a class that you’re unsure about/nervous about, you may want to attend a class before you actually buy the book, in order to avoid having to return the books later. Even if you just decide to postpone the class for another semester, and you keep the books, the books that you have may not be the ones used when you sign up for the class again.

Can I use financial aid to buy books?
This depends on your school’s financial aid policy. In some cases aid is not disbursed for a couple of weeks, and there is no system to deduct the cost of books from you account, so you will need to buy them with your own money. On the other hand some schools will allow you to come and pick up your books ahead of time using financial aid, and the amount will be deducted from your account. Meanwhile other schools will let you use financial aid, but they won’t actually allow you to pick up books until the first day of class. Just go several weeks ahead of time to find out what the policies are at your school.

If a book for one of my classes is labeled, “Optional,” “Supplemental,” or “Not Required,” should I buy it? I personally like to have all the books even if they’re not required (as long as it doesn’t cost an arm & a leg). But often these “unrequired”books are just an added reference, a study guide, or it may be that the book is used by some teachers and not others. If a book on your list is “Not Required,” I suggest visiting the professor or waiting until the first day of class before buying the book. (And keep in mind, often these “supplemental” texts are not returnable.)

My school uses efollet.com to sell books online. Should I use this service or buy on campus?
Efollet is a convenient way to order your books, and it allows you to have the books shipped to your home or you can choose to pick them up at the bookstore, and it’s great because it saves you time (& a trip to the school, if you live away). The price will be the same whether you use the website or purchase them from the school store (except that you have to pay shipping costs to get them sent to your home). In fact, when you buy from efollet, the clerks at your school store will actually be the ones that fill the order (at least that’s the way it is at the schools I’ve had experience with). The good thing about buying books in person at your store is that you get to pick them out yourself, which means if you’re buying a used book, you can choose between getting a nice looking used book versus one that may be torn or written in.

Do I have to buy books from my book store?
No. You have other options. In short, there are several reputable sites where you can buy new & used books online. And most likely there is an off campus bookstore that sells the books you need at a lower price than the school store. In the next post, I’ll be pointing out some more specific ways that you can get your books online and offline and save money (up to 50 & 75% or possibly more).

Filed Under: personal finances, School/College

Back to College: Textbook Dollars

July 28, 2008 2 Comments

For the final week of this “Back to College” series, I’ll be focusing on textbooks. Even if you have no kids in college and don’t go to college yourself, you probably buy books for yourself & family (which can also be quite expensive), and your tax dollars go toward buying elementary & secondary school books for public schools, so this is an interesting and relevant topic for everyone.

In the upcoming posts, I’ll have some tips on buying and selling textbooks (which can be applied to everyday books as well), and I’ll have some other information to keep in mind before buying your college textbooks.

But first, I wanted to share this information about where the money actually goes when you buy textbooks (and other books for that matter). I first saw this information on a poster outside my college bookstore…I guess they know that everybody complains about the costs of books, so they felt a need to explain themselves.

The information I’m posting here was published in 2003 (sorry I couldn’t find a more updated version), but I expect that the numbers are probably about the same today (with perhaps the exception of Freight, which I’m sure is now a slightly bigger percentage of the total cost) You can take a look at the actual chart of this information here: Where The New Textbook Dollar Goes

Here is a summary of the info –

For Every One Dollar Spent on Textbooks:
32.3 cents goes to Publisher’s Paper, Printing, and Editorial costs (production)
11.6 cents goes to Author income (research & writing costs)
10 cents Publisher’s General & administrative (state & fed taxes)
15.4 cents Publisher’s advertising costs (marketing, sending out free copies, etc)
7.1 cents Publisher’s income (after they pay taxes -goes toward new product developement & paying dividends to stock holders)
1.2 cents Freight (this amount has probably risen, in conjunction with gas prices)
11.3 cents for College Bookstore personnel
6.6 cents for college store operations
4.5 cents (pre-tax) for college bookstore income

To me, the most interesting part of this data is that the bookstore gets a total of 22.4% of the money. Obviously they have to pay for employees & operational costs, and we could sit and argue all day long about whether schools & publishing companies are profiting too much from poor students, and we’d never agree on a definitive answer…but I think that if the school book store is there to serve the students (& without the students there is no bookstore), they should make no more than a limited profit. (and of course, in addition to the 22.4% they make from the sell of new books, they also profit again when they buy back the book for practically nothing and then resell it for a higher amount than it was bought back for.)

I mean no offense to those who work at college bookstores, most clerks that I’ve met are very nice people (and you guys don’t set the price or buy back policies). But I’ve never met a single student or teacher that doesn’t think the cost of textbooks is too high, so I wanted to highlight this issue and try to help people who will be buying textbooks for the first time in the next few months or years, and I think the percentages on this chart are interesting to look at as an introduction to the topic.

Filed Under: personal finances, School/College

Back to College: Dorm Room Supply List, Part 2

July 24, 2008 Leave a Comment

Here is part 2 of my dorm supply list. Boy, this looks like a lot of stuff…it’s very easy to see why college kids on their way home for the summer have their cars packed to the ceiling with stuff. It’s crazy to think of just how much stuff we need…even with just the bare essentials.

Household items

Vacuum cleaner (the dorm may have one for tenant/community use, but a lot of students prefer to have their own)
Alarm clock
Desk lamp
Towels and washrags
Microwavable Plates, bowls, eating utensils. (disposable or reusable)
Laundry hamper/basket
Garbage can (and bags)
Plastic drawers and/or storage bins/containers for extra clothes, shoes, bathroom items, dishes, snacks, etc.
Sheets, bedspread, pillows
If you have an actual kitchen area with stove, then you’ll need pots, pans, cooking utensils, etc.
Can opener (something small and forgettable, but very important)
Additional appliances such as a toaster or a mini grill. (check dorm regulations b/f purchasing extra appliances.)
Hair dryer, etc.
Clothes iron
flashlight (in case of power outage)
Fan
Mirror
Electric blanket (space heaters are usually not allowed)

Everyday items

Groceries (drink, sandwich stuff, microwavables, easy prep stuff, snacks)
Laundry detergent & supplies
Dishwashing liquid
Handsoap
Several rolls of quarters for washing machine/dryer, coke machine, etc.
Cleaning supplies
Soap, shampoo, conditioner, razors, etc.
Plenty of clothes (especially if you live several hours from home and don’t know how often you’ll be coming home.)
Medicine & first aid items
Bathrobe (especially if you have a community bathroom)
Shower shoes (ditto)
Ziplok bags

Decor/Personal touches

Pictures, posters, picture frames
Bulletin board and/or marker board
Figurines, souveniers, momentos
Small area rug

Entertainment

TV & DVD player, or personal dvd player
Video game system
Stereo
Ipod/MP3 player
Appropriate cables, cords, adaptors, surge proctectors, etc.
Camera (to capture all the memorable moments)
Bicycle, sports equipment
Books/magazines (I know it may sound a little archaic to some teenagers, but at least one or two shouldn’t hurt them too much.)
Batteries
board games

Filed Under: planning, School/College

Back to College: Dorm Room Supply List, Part 1

July 23, 2008 1 Comment

With fall semester coming in just a few short weeks, parents and students will be flocking to Wal-Mart, the mall, office supply stores, and more to get all those must have dorm room supplies. But for a kid that’s never lived away from home, and for a parent that’s never sent a kid to college, it can be an overwhelming experience, and it can be hard even knowing where to begin when it comes time to shop for everything. The best thing to do is to sit down and make a list of items. It’s best if you divide the list into categories for organizational purposes (and to make sure nothing is forgotten)

But I don’t think you ever really have an idea just how much time and effort goes in to preparing to move in to a dorm and how much stuff you actually need until you do it yourself or watch someone you know do it. For that reason, I’m posting my own list here of college supplies.

For the first half of my list you’ll find School & Office Supplies, and Furniture/Big Items. And part 2 of this post will include Housewares, Everyday items, and Entertainment items.

School Supply Items

#2 pencils
blue/black ink pens
Loose leaf paper and printer paper
Backpack
Planner
Wall calendar
Spiral notebooks or 3 ring binders (I prefer binders w/ clip & pockets b/c you can always add more paper, and it gives you a place to put handouts/syllabus/internet articles)
highlighters
Jump drive/Removable computer drive to store work. (a must!)
Computer (I recommend a laptop, must have internet/Microsoft office, Word is a must, and Adobe Reader)
Printer (good to have your own for 24/7 use, to save you a trip to the computer lab, and to keep you from having to pay for copies)
Post-it flags (I use these to mark my page in a book I’m reading and to flag important pages in books and articles)
Post-it notes (obviously to write reminders to yourself, but I also use these for research purposes…I leave the post-it note on the appropriate page, and make a note on the post-it about what is important on that page)
Stapler (for print outs and work that is to be handed in)
Hole punch (to place syllabi & handouts into a binder)
Paper clips (comes in handy for research projects)
Envelopes & stamps

Other Office Supplies You Might Need

File box/cabinet (great to keep important notes and term papers, although for myself, I keep all my papers/notes in large binders)
Index cards (good for research notes)
Graphing calculator (if taking math/chemistry/etc)
Notepad
Tape
Tape recorder
file folders or folders with pockets (good for keeping up with and organizing research articles)
tab sheets
page protectors
For certain classes you may need other tools, software, or supplies as well.

Furniture/Big items

Student desk (if one is not provided)
Mini Fridge
Microwave
Desk chair
Bookshelf (at least a 3-shelf, if you don’t have a collection of books now, you’ll have them soon. between text books & library books, they’ll pile up soon.)
Futon, loveseat, or extra chairs
Night table
TV table/stand

Filed Under: planning, School/College

Back to College: A “Major” Decision

July 22, 2008 Leave a Comment

Continuing with my Back to College series, I decided to write this “little” essay on choice of major. Because it’s such an important topic for students, I wanted to share this with you just as a little food for thought.

(artwork credit – Trina Clark Designs – www.digiscrapkits.com)

To begin, I want to say that while it is important to pick a major fairly early in order to take the proper courses and and prevent yourself from taking extra courses that you do not need for your degree, students should not feel pressured to pick a major before they begin classes. It’s perfectly okay to spend a semester or two taking the core courses that count for just about any major without focusing on a major. During this time you can access your experience and decide what your real interests are. I actually started as a secondary education major (specializing in English) but during my first semester, I had the privilege of taking a history course under an extraordinary professor, who really took my interest in history to a whole new level, and for a while I thought about taking the proper courses to teach both. Then upon transferring to a new college for my junior year, I decided to drop the education major all together and get straight BA degrees in history and English, so that I could focus on the subjects I love rather than focusing on methods and other things that have nothing to do with the subjects at hand.

I’ve had a few visitors to my blog who tell me they were English majors too, and I’d bet that all of them got the same questions I got: “What are you going to do with your degree? Are you going to teach?” First of all, teaching is not the only job that you can get with a history or English degree. In fact, you can get a great paying job in any business as long as you have a degree, regardless of the major. Obviously you can’t be a chemical engineer or lawyer, etc without the proper degree, but there are a lot of other options. A friend of mine who is a supervisor for 2 departments at a chemical plant actually majored in elementary ed. Another friend of mine is a manager for the research and development department at a major defense contractor, and he majored in journalism. And my husband is currently applying for positions that have nothing to do with his degree.

Again, while it may be prudent to have some level of knowledge or experience in a particular field in order to obtain a position, just having a degree tells an employer that you are educated and that you’re able to take on a big project and see it through. And often your degree may be more relevant to the job you’re seeking than you think. (Ex: A history degree helps you develop research and writing skills. A biology degree gives you research and lab skills. A psychology degree would help you to understand people and help to analyze and solve problems.)

Employers want workers with good written and oral communication skills. They want problem solvers and critical thinkers. They want workers who can get along with other people, who learn fast, and can teach/train others. And you can use just about any degree as evidence that you’ve developed these valuable aptitudes.

As far as deciding on a major, I would advise that you (or you child) choose to study something that you (they) really love (regardless of the availability of jobs in that field or the money that can/can’t be made). If you really want to be a nurse or a teacher, these are admirable professions that provide steady work, income, and benefits, but it also takes a certain kind of person to do these jobs, and if you’re heart isn’t in it, than you will either leave the job after a couple of years or stay in it for security reasons and possibly be miserable. The same can be said for higher paying professions like doctors, lawyers, accountants, and engineers.

The fact is that college (higher education) evolved out of the ancient teaching of philosophy (meaning love of knowledge), and it began as a way to help students develop thinking and reasoning skills. It taught them to ask questions and ponder about the world they live in, in order to gain a better understanding of themselves and humanity. Unfortunately this no longer emphasized. We have become a more money driven society, and as a result of this, the purpose and intent of a college education has transformed into a means of getting a high paying job or even a high paying retirement jobs, rather than as a means of gaining knowledge and understanding about the world, helping humanity, and learning how to think.

Obviously we all have to make a living for ourselves and our family, and today the best way of doing this is by pursuing a degree or a technical certification of some sort, and I applaud anybody and everybody who attempts and succeeds at doing this. But for my post today, I’d like to encourage people who are in college (or those who are sending their kids to college) to keep in mind that young students have an entire life ahead of them. And whether you spend your life in front of a classroom, behind a desk, or at construction site or plant, it would be wonderful if more students spent their 2, 4, or 6 years (or more) of college learning something more than a trade, that is, finding something that their interested in and learning more about it, whether that means actually majoring in art, psychology, creative writing, etc. or simply taking a few classes in a subject of interest. A good education lasts a life time and is worth its weight in gold no matter what you “do” with it.

Filed Under: School/College

Back to College: Financial Aid, Part 2

July 18, 2008 1 Comment

The Positive Side of Getting Financial Aid Through Your School:

Convenience, you read the info. they give you and sign the proper paper work. They do the rest.
Easy to get a loan regardless of credit history, or lack their of.
You are guaranteed that you don’t have to pay it back until you’ve been out of school for 6 months.
When the time comes to pay back, you have options for postponing payments

Negative Side of Getting Financial Aid Through Your School

The school processes your loan & disburses it to you, and for doing that they take a small portion of your loan money.
Because they process your loan for you, they also control when and by what means you get your money. Years ago you would get a check within the first couple of weeks of classes(even on the first day of class in some cases). But as schools are adopting the corporate model, it is becoming a common practice to issue debit cards instead. I have nothing against debit cards, considering the fact that my husband and I have one with our 3 bank accounts. But I believe that when you take out a loan you should have the option of getting that loan in cash. Then there’s also the issue of the school having your money in the bank of their choice (till you use the debit card), and of course, the debit card gives them the opportunity to monitor your purchases.
Also, if the school still gives you the option of having a check issued to you, it often comes from an out of state bank, which means that when you take it to your bank, they may put a hold on it, which means you won’t be able to use the money for 2-4 weeks.
These loans often have a very high interest rate, and though the payment plans can be quite flexible, the interest adds up, and over time you will be in debt for a lot more than you had expected.
A lot of loan companies, like Sallie Mae, actually pay the school for the opportunity to process your loan. In turn, the loan company (subsidized by the govt) and charging you a huge interest rate, stands to profit from every loan they oversee.

My Advice:

Shop around for a private loan from the institution of your choice. This is the only way you can truly get a competive interest rate and have total control over the kind of loan you take out, and ultimate control over the money you borrow. (& you don’t have to give you’re school a cut)

My Experience:

The first two years I was in college, I got a government subsidized loan through Sallie Mae, which I’m currently paying. I won’t go into all the details, but the following is a very revealing estimate of my payment history: My original loan balance was around $5250. And over the past year, I’ve been making payments, totalling nearly $1200, and yet my current loan balance is still over $5000. hmmm, the numbers don’t add up to well, do they? But that’s just an example of the high interest rates that can get tacked up to these government loans. Actually I’ve now talked it over with my husband, and I’ve decided in a couple of months when my husband and I start our new jobs, I’m going to begin making “large” payments on this loan until it is paid off.
Also, I had considered postponing my payments (after I had already begun paying) And I found out that I would have to pay a fee of $50 per loan in order to “process my request for forbearance,” and each school year is counted as a separate loan. Since I was at my first school for 2 full years and then 1 extra semester, that means I have 3 loans, so I would have to pay them $150 before they would let me stop making payments, but since my monthly payment is lower than $150, why would I want to pay this amount?
As for my other loan, it is a William D. Ford Federal Direct Loan Program. I will not begin making payments on it till sometime next year, and I believe the terms of this loan are far better than SM…but again, by getting the loan through my school, I had no real choice in the matter (and didn’t have full control of the money) but when I start making the payments on this loan, I’ll let you know how it goes from there.

Back to College: Financial Aid, Part 1

July 16, 2008 Leave a Comment

Money is often the deciding factor when it comes to what school we choose to attend or if we choose to attend at all, and long after the diploma is in hand, the financial burden is still felt.

While I’m not an expert of student loans and financing, I have learned a few lessons about student loans and aid, and as I am currently paying back a student loan myself (and will begin to start paying my husband’s very soon as well), I can tell you that I wish I knew then what I know now about student loans.

So here are a few tips and basic info I’ve come up with:

If possible, begin saving for your child’s tuition as soon as you can. Find a pre-paid college tuition program. (In which you put back a certain amount of money each month.) Or invest a little money in bonds or cds early on in your child’s life, or at the very least start your child a savings account. (small deposits can add up)
Every college student is required to fill out financial aid application. (aka FAFSA)
Shortly after filling out your application, you’ll get a “reward letter.” If you receive a grant, you should definitely accept it, as this means that you will not have to pay the money back. But before you accept a loan, you should review how much money you actually need for tuition, room/board, books, transportation, etc. More than likely you will be “rewarded” more money than you actually need. If you don’t need all the money they want to loan you, don’t accept the loan. Instead except a reduced amount. (though if you are on a fixed income, the extra money may be of great help to you, so just use your best judgement.)
A few months before your first semester you need to talk to the people in charge of financial aid at your school to find out what the procedure is for paying tuition. Where I went to school, you had to pay tuition out of pocket, and the financial aid would later be disbursed to you. However, at the school where my husband currently goes, his tuition is subtracted from his financial aid total, which means he doesn’t have to have the money ahead of time. (very valuable information to have)
Also, when you receive you’re reward letter, don’t forget to turn it in to your school’s financial aid department, and make certain that the person you give it to does something with it. If you’re reward letter is not signed, turned in, and processed you will not get your aid money on time (if at all). I ran in to this problem myself when the person I handed my reward letter to failed to deliver it to the proper person for processing.
If you mail in tuition money and/or reward letters, it is a good idea to call about a week later to confirm that it was received and processed into their system. If for some reason there is a glitch or an oversight, and you don’t take care of it before the start of semester, then you will have a big headache on your first day.
And this is important tip: If possible, avoid getting the loan through the government & the school at all! Instead shop around for a private loan with a competitive interest rate. And when you get your school’s reward letter, just decline the loan. More on this, on the next post.
Adding to my last point which I will expound upon in the next post, I advise you to be especially careful if your school uses companies like Sallie Mae to process loans. If you have bad credit, and can’t get a loan from a bank, than these loans will obviously have to suffice, however, they carry a very high interest rate, and if you ever miss payments or want to stop/postpone payments, you have to pay penalties which can cost you a lot of money.
While in school, you will be getting notices about paying interest early. If you are able to do this, I’d advise paying. But you don’t have to. And before deciding on whether to pay or not, you need to look over your loan documents to make sure that the interest will not be compounded at the end of the year.
After graduation, if you’re on a fixed income or don’t yet have a well paying job to help you make the payments, postpone your payments for as long as you can. Once you start making the payments, it’s hard to stop. However, be aware that the interest on your loan will continue to accumulate, and at the very least you should try to pay this every quarter.

Next time, more on the positives and negatives of getting a loan through your school