Tag Archives: college costs

Meal Swipes & More: Paying for your Meals at Purdue

6 Jul Text "meal swipes and more: paying for your meals at Purdue" over picture of dining court food

Purdue Dining and Catering offers several different payment methods to its patrons: meal swipes, dining dollars, Boiler Express, and cash/credit options. Below you will find an explanation of each option, culminating in a cost-effectiveness evaluation.

Meal Swipes: During academic semesters (including Maymester and summer school), students have the ability to purchase a meal plan, providing them with meal swipes. There are several different types of meal plans, which are covered in this blog. Meal swipes allow the student to swipe his or her student ID card and enter the dining court quickly. They are prepaid via the meal plans, which range in totadiningdollars_tall_meal-plan_purdue (2).jpgl pricing from $2,998-$5,398. Depending on the meal plan purchased, a student can have anywhere from 8 to unlimited meal swipes per week. Students holding one of the unlimited meal plans are given 16 meals per year with which they can swipe in friends or parents. Students on the 8 or 13 meal plans cannot bring in friends or parents, as the swipes are exclusive to the intended cardholder.

Dining Dollars: The second most popular student option. Dining dollars come pre-loaded on the student’s meal plan. Some meal plans are sold without dining dollars, so be aware of the dining dollar total presented with the meal plan you select. Dining dollars can only be re-loaded if you purchase the Boiler Flex Unlimited plans. Dining dollars are a great option, as they allow the student to bring in guests. The student will be asked whether or not their guest is a fellow student. Student pricing is slightly cheaper, as it is tax-free. The guest will be asked to produce a student ID to verify their status. A student dinner with dining dollars costs $9.60.

BoilerExpress: a third, slightly more expensive option. BoilerExpress accounts are helpful for off-campus students, employees of the university, or the student who has run out of dining dollars. Their pricing is a little steeper, coming in at $11.40 for a student dinner. Students can use their BoilerExpress accounts to bring in friends and parents in a manner similar to dining dollars. Employees can use BoilerExpress accounts to purchase meals at a discounted rate. BoilerExpress accounts are also valuable in their potential for refunded money. Unspent dining dollars expire at the end of the academic year; unspent BoilerExpress money can be refunded to a student as long as the account total is in excess of $10. It’s important to note that any deposit in a BoilerExpress account results in a convenience fee of $3, so when depositing, be sure to think ahead to future costs.

Cash & Card: Finally, anyone can purchase entry to Purdue’s buffet-style dining via cash or credit card. This is the most expensive of the options, costing $11.90 for a student dinner, and $12.73 for a non-student guest. Students can, again, show their IDs for tax exempt pricing, and if a family chooses to eat at a dining hall, children aged 3-10 will receive a discounted price. Purdue Dining accepts Visa and MasterCard.

Ideally, an incoming student will select the most appropriate meal plan and feed his or herself primarily using meal swipes. This is the most cost-effective option, assuming the student is not overpaying for unused swipes. If a student runs out of swipes for the week, the next best option is to pay using dining dollars. If the student does not have dining dollars, they can use BoilerExpress, or lastly, pay using cash or a credit card. It is important to make sure you know how many meals you have left per week! You can ask the employee who swipes you in to let you know how many meals you have remaining. If you choose to buy a meal using dining dollars or BoilerExpress, be sure to ask for your receipt, as it will have your current account totals printed on it. Being aware of your options when it comes to the dining halls can save you more money than you would expect!

Your Federal Loan Repayment

23 Sep

Honest businessman

Alanna Ritchie is a content writer for Debt.org, where she writes about personal finance and little smart ways to spend (and save) money. Alanna has an English degree from Rollins College. Join our Debt.org Google+ Community

repay-banner

As you fill out your intent to graduate forms and begin looking into the post-college future, your stomach might start to turn. You might start to panic and it may become difficult to breathe as you start imagining your monthly student loan payments. Stop, take a step back, BREATH, and let’s think about the situation.

But guess what? There’s good news!

Not only do you have a six month grace period after you leave school or drop below half-time attendance for your federal student loans, you also have numerous options for repayment plans. A grace period is a period of time after borrowers graduate, leave school, or drop below half-time enrollment where they are not required to make payments on certain federal student loans. Some federal student loans will accrue interest during the grace period, and if the interest is unpaid, it will be added to the principal balance of the loan when the repayment period begins. Repayment plans are designed to accommodate the needs of graduates entering the job market and receiving introductory salaries, while carrying the responsibility of handling additional bills, like rent, insurance, gas and groceries.

You do have options. If the standard ten-year plan with fixed payments is too much for you to handle, contact your lender to negotiate payments that match your budget. Not sure who your lender is? You can view all your federal loans and their lenders online from the National Student Loan Database.

Which Plan Meets Your Needs?

Cartoon Family Portrait

Federal student loans come with a variety of repayments plans that are offering based on requirements such as income, family size, or loan type. Examples of federal loans include Direct Loans or Federal Family Education Loans, which could be Subsidized Stafford loans, Unsubsidized Stafford loans, or PLUS loans. There are three main categories of repayment plans for you to consider.

First, the Graduated Repayment plan will allow you to begin making lower payments. Although, like the Standard plan, this plan must be completed in ten years, the lower payments gives you time to increase your salary. Every two years, your monthly payments will increase.

Second, if the Graduated plan is still more than you can afford, the Extended Plan allows you to take up to 25 years to repay loans. There is more flexibility with this option, as you can choose between a fixed or graduated payment.

Finally, there are four different repayment plans that consider your income as a factor. Some of these plans also consider factors like family size, spouse’s income, and total amount of loans. Although these have similar-sounding names, each has specific requirements and formulas which influence the monthly amount you will owe.

Four plans with income factors:

Federal Loan Consolidation

While you are researching different payment cycles and methods, you may consider a Federal Loan Consolidation. A Federal Loan Consolidation allows you to merge all your Federal Student Loans into one loan. This can include your Subsidized Stafford Loan, Unsubsidized Stafford Loan, and Perkins loans. Once all your Federal Student Loans are merged into one loan, you will only have one monthly payment and one interest rate attributed to the loans. However, note that this will likely not reduce your overall interest rate since it is weighted by loan. As you can see, a Federal Consolidated Loan may allow for an easier way to manage monthly repayment.

How Can You Prepare Now?

cartoon roadmapGet in the habit of putting a portion of your paycheck in savings now, before you start paying back your loans. This will force you to make a budget and spend less every month, so when the time for repayment comes, it will be easier to part with this percentage of your paycheck.

The money you save up during your grace period can also be used as an emergency fund of accessible cash for unexpected situations. This cushion can enable you to afford your loan payments even when you have unexpected expenses such as a flat tire, broken arm or speeding ticket. Preparing yourself for the future can protect your loan debt from growing any larger.

Make sure your loan servicer has updated information, including your phone number and email. Your servicer will need this information in order to communicate any new information on your loans, including when your next bill is due.

Choosing a plan and taking a proactive approach with your finances can help you smoothly adjust into your repayment period.

Cost of Attendance: Explained

21 Sep

Whether you know it or not, there is a limit to how much financial aid you can receive in a year. This is reflected in your Cost of Attendance (COA), which is sometimes referred to as your “budget” when speaking to a financial aid counselor. It includes 1. Tuition & Fees; 2. Housing & food; 3. Travel; 4. Books/ Supplies; and 5. Miscellaneous (think laundry or other random expenses). Your COA is NOT what you are being billed, rather it is an estimate of the total cost of attending school for one year.

  1. Tuition is the biggest variable between students when it comes to COA. The three different standard levels of tuition are based off of your residency as shown on the chart. This will also include your differential fees as well.tuitionfees-image.jpg
  • Differential Fees are added tuition costs for certain colleges or with specific majors (Engineering, Krannert, Polytechnic, and Computer Science).
  • Then, there are fees for classes like horseback riding, wine tasting, etc. While these are added to your bill like Differential Fees, they are not automatically added to your COA! The exception is the course fees for Aviation Tech majors.
  • These Differential and Course Fees are the same for every student regardless of residency.
  1. After Tuition & Fees, everything else other than Travel is the same for each student’s COA, regardless of their residency.housingfood-image
  • Outside of tuition, your biggest expense is almost always going to be your housing and food.
  • If you live on-campus or have a meal plan, this will be included in your bill from Purdue.
  • However, if you live off-campus it will not be on your bill but will still be included in your COA.

Your COA says that on average you should be spending $10,030 combined for your housing and food costs. Depending on your situation this might be much higher than you actually need or it might not be enough.

  • If you find that your housing and food costs will be significantly lower, consider borrowing less if you are taking out student loans.
  • If it is much higher and you need financial aid to help, contact the Financial Aid office.travel-image
  1. The travel portion of the budget is one that will end up extremely different from one student to the next. This is generally meant to be enough for a student to visit home twice throughout the year, but as you can bet the $370 is woefully inadequate for an International Student unless you’re driving to the closest areas in Canada from West Lafayette.bookssupplies-image
  1. Books and Supplies attempts to estimate the costs for your textbooks and other supplies needed for the year (pens, folders, notebooks, etc.). You may also consider using this money in order to buy a computer for yourself in order to do your classwork. If this is the case and your current aid will not be enough to cover it you may consider contacting the Financial Aid office to help increase your budget.miscellaneous-image
  2. The Miscellaneous category are all of the other incurred student costs that don’t fit neatly into the other categories. Costs like toiletries, laundry, clothes, and other personal expenses are included in this diverse category. Although they are smaller purchases, if they are unaccounted for, they can chip away at anyone’s budget.

If you feel like your Cost of Attendance is not representative of your costs of being a student at Purdue for a year and gives you too little room for aid, please contact our Financial Aid office. Conversely, if you find it is higher than you need and you are borrowing to help finance your education, seriously consider taking less in loans! Every dollar you don’t borrow is one you don’t have to pay back – with interest. You are also able to have allowances for child care or other dependent care and costs related to a disability, which is also added into your COA, but you must contact the Financial Aid office for assistance.

Keep in mind that if you increase your Cost of Attendance, that only increases how much aid you are eligible to receive! If you already have less aid than your COA, you probably won’t be getting more just by increasing it.

Financial Aid Contact Information:cost of attendance explanation.jpg
Walk-in appointments in Schleman Hall room 305
Call-in at 765-494-5050
Both available from 8:00 a.m. – 5:00 p.m. EST Monday through Friday.

FAFSA: Who, What, When, How & Why?

26 Jan

fafsa
Getting you through FAFSA, one question at a time.FAFSAQs

 

  • Who

    • Who Should File a FAFSA?
      If you are interested in getting any Federal Financial Aid, including federal direct loans, you need to file the FAFSA at www.fafsa.gov/  to become eligible. Federal loans are almost always preferable to private loans.  In addition, many colleges’ need-based scholarships rely on FAFSA information to verify that you are eligible. In short, everyone should file the FAFSA – even if you don’t think you’ll qualify for any federal aid

     

    • Whose Information is Needed to File a FAFSA?
      This answer depends on if you are a dependent student or not. Unsure if you’re Dependent or Independent? Check here.(Note: this is not the same as being independent for tax filing)Dependent students: You need tax information for both you AND your parents. If your parents are divorced, you need the information on whoever you receive the most support (51%) from.

      Independent students: You only need your own information unless you are married. If so, you will need your spouse’s information as well.

  • What

     

     

    • What If Things Change After I File The FAFSA?
      If your family situation has a significant change after you’ve filed your FAFSA, and any time while you’re in school, stop by your Financial Aid office to see if you qualify for a “special circumstance”.  These could include job loss, divorce, death of a parent, child birth or other unexpected situations that impact your financial status.

     

    • What Types of Federal Financial Aid are there?
      There are three main types of financial aid:
      1. Grants — Federal Pell Grants do not have to be repaid and are sometimes referred to as “gift aid”.  Grants are similar to scholarships, except that they are often for those who demonstrate financial need, where scholarships can be either merit-based or need-based.2. Student Loans — This is the type you hear about most often.  Filling out the FAFSA is required to be eligible for Federal Direct loans.  Federal loans are almost always preferable to private loans from lending institutions, because they have fixed interest rates and flexible repayment options.3. Federal Work Study (FWS) — Work study may provide you with more opportunities to find on-campus jobs. Rather than being given the funds in the beginning of the semester like loans and grants, FWS earnings are distributed to you as part of your paycheck.
  • Where

     

    • Where Do I Get the School Code and FSA ID?
      You’ll need the school code for whatever schools you are interested in applying to. They are available here. Your FSA ID is used to login and electronically sign your FAFSA.  Set it up at here.

     

    • Where Do I Get Help?
      College Goal Sunday will be held on Sunday, February 21st at 2:00 p.m. in Indiana and it provides FREE FAFSA filing assistance. It is at Ivy Tech in West Lafayette, but to find a location near you in one of the participating 42 states, go to www.CollegeGoalSundayUsa.org.  You can always call the Financial Aid office of your prospective school to ask questions as well.
  • When

    • When Can I start the FAFSA?
      You can begin the FAFSA any time after January 1st of the year you plan to attend college.  The FAFSA uses the student/parent tax information from the previous year. You can estimate the required information to beat a college priority filing date, but the info must be corrected after the taxes are complete!

     

    • When is the FAFSA Due?
      If you are a Purdue student, the FAFSA priority filing date is March 1st, so be sure to have it done by then! Other colleges (and states) have their own priority dates. Check for deadlines here.
  • How

    • How Do I Get my Financial Aid?
      Your financial aid is sent directly to your school and they will apply it directly toward your billing and send any excess aid to you to be used for books and other education related expenses. The exception is Work Study which needs to be earned by working, and is paid via a paycheck.

     

    • How Much is the Maximum That Can be Borrowed?
      Most students don’t know this, but there is a maximum amount of Federal Loans you can take out each year. There is also a maximum amount you can take throughout your college career! If you take the maximum amount for four years, there won’t be as much left for a fifth year if needed. Plan ahead!

      Remember: Everything you borrow you will have to pay back with interest for the next 10 (or more) years. For every $5,000 you borrow at 6% interest, you pay back $6,661.23 over 10 years ($55.51/ month)

    • FAFSA-brw-chart

      Chart courtesy of Penn State University

      
      
  • Why

    • Why Should I Do a FAFSA?
      Other than qualifying for grants and Federal Loans? Many state grants and institutional scholarships require FAFSA information submitted. Even if you aren’t sure, it is always worth submitting!

Is That Apartment Actually Affordable?

24 Sep

Raysha Duncan, Purdue Alum
www.purdue.edu/mymoney

It’s almost October! You know that means? It’s time to start signing for apartments for next year. That’s right, you just got all settled into your dorm or current apartment and everybody’s already asking about your plans for fall 2016.

As you’re bombarded with information about the newest and best apartments available, you’ll want to keep in mind whether or not you’ll actually be able to afford the amazing deal they’re offering you (or that your friends are trying to talk you into). Here are some things to consider before jumping into the pool of possibilities!

feet going up stairs; text overlay: Is That Apartment Affordable?

How much is your portion of the rent?

This is one of the first things you’ll want to look at – do you have an individual lease or a group lease? If you’re on an individual lease, you’re responsible for just your room/portion whereas with a group lease, you and all of your roommates are responsible for the whole rent. This means that if you have three roommates and one of them doesn’t pay, the rest of you are expected to pick up the slack.

How much is the deposit?

Do you have enough right now to pay the deposit? Will it set you back and deplete your emergency savings? If you don’t have any savings right now, you should think about building some up before signing onto such a big expense every month.

What utilities do you have to pay for?

Many apartments include at least some of the utilities, but you’ll want to find this out at the beginning so you can factor utility payments into your monthly expenses. Utilities at an apartment can include: water, sewage/trash, electric, gas, cable, etc. Cable is most likely optional, but if your roommates decide it’s necessary, then you’ll have to pitch in and pay for that as well.

What happens if one of your roommates doesn’t pay their portion?

If you have an individual lease, you’re probably fine. But if both of your names are on the lease or on a utility bill that’s not paid, then you’ll have to either convince them to pay it or just pay it yourself. Missing a payment could affect your credit score, and definitely your relationship with your landlord if it’s the rent.

How far away from campus are you?

Is there a bus route? Do you need a car? These are two of the biggest factors when deciding how far away from campus you’re going to live. The Greater Lafayette Area has a great bus system, so chances are that you’re on a bus route, but you’ll want to double-check. You’ll also want to see how long it would take you to get to campus every day. A 50-minute bus ride to and from campus every day may not be the most convenient!

If you do need a car, that’s a whole other expense you’ll need to take into consideration: insurance, gas, parking pass, and buying the car/monthly payments.

Do you have everything you need to move in?

What necessities do you still need to live on your own? Do you have the means to acquire those things? How much do your future roommates have that they’re going to be bringing along? If you don’t have anything you need to move into an apartment, those are things you’ll need to save up for and purchase before moving.

How much will your groceries cost every month?

So your budget can cover your rent, but can you still feed yourself every month? You could potentially eat on just $50/month…but you probably won’t be eating very healthy or very well. You need to make sure you’ll have enough to eat every month too, and the dining courts won’t be a convenient option for you anymore once you’ve moved off campus.

How to Save Money on College Textbooks

6 Aug

Brandon Endsley, Purdue Alumnus
www.purdue.edu/mymoney

The cost of college today is all over the news.  From every media outlet you can read, watch, or listen to a professional talk about how student loan debt is at an all-time high and tuition and fees are rising faster than inflation.  While this all may be true, talking about the issues over and over does not help any student attending college.

Per CollegeBoard.org,students can expect to pay around $1200 per year for textbooks…and that number continues to rise year after year. I’ve outlined some simple tips below to help you cut your overall college costs by spending less on your textbooks.

Rent if possible.

For the average college course, renting books is cheaper and less of a hassle for buying your textbooks.  Everyone knows that buying a used book is cheaper than buying a new book, but when you go to sell your book back your “buy-back price” is much less than the buy price and in many cases the book store will not even purchase the book back.  Plus, you may have to wait in long lines with unpredictable weather (if you’re in the Midwest) for little recovery of your first investment.  When you rent a book you pay a flat fee and return it by the end of your semester.  If you use an online source like cheapbooks.com or www.chegg.com you can FedEx your text-book back to them within a reasonable time period after your semester ends. Local bookstores may also have an option to rent.

Look for an older edition of your textbook.

Calculus has not changed in 2000 years, but the story problems have.  I recommend checking with your professor to see if you can buy an older edition.  I took a tax class where the new book was $300 and I refused to pay that price for one textbook.  I bought an edition that was three years older for $0.62 on Amazon and received the updated tax codes (which were the only difference between the two textbooks) from my professor.

open notebook and coffee mug; text overlay: how to save money on college textbooks

Look for the e-book.

An e-version could be an option offered by the publisher of your textbook.  The online version sells for a fraction of the price of a new or used book.  The only downside of purchasing the e-book version is sometimes there is a limited time frame you can use the textbook.  If you want to keep the book for referring to after the class is over, this may not be the route for you.

GOOGLE it.

It’s not just a phrase but a way of life for most college students.  What will surprise you is how many titles are available on Google books.

Check Craigslist.

Besides garage sales, housing, and boats, you can find used books for sale from students who have taken your class.

Borrow the book from a friend who has previously taken the class. 

Maybe they weren’t able to sell the book back at the end of the year and you can help take that burden off their hands!

Share a book with a classmate and split the costs.

In this scenario I would still recommend buying a cheaper book and splitting the cost for even higher savings.

Check it out of the library.

Your campus library should have the textbook required by your class.  You may not be able to leave the library with the book, but you could at least get some free studying done… until the library closes that is.

Speak with your professor.

A lot of time the department requires a textbook to be purchased but the professor barely uses the material or provides the material needed in class. Try sending your professor or department head an email asking about the course materials.

Where Will You Live Next Year?: The On-Campus vs. Off-Campus Debate

29 Jan

Pulled from the archives, this post was originally published August 14, 2012.

Denver Bailey, Purdue Alumnus
www.purdue.edu/mymoney

Rental Truck

Are you having trouble deciding to live on or off campus? This is one of the most important decisions you will make for the academic year.  Where you choose to stay for the year will decide how much loan or aid you will need for the year, but you don’t want to choose your housing based on price.  You want to make sure to choose the proper housing for your budget and your lifestyle.

Residence halls tend to be the first choice for first year students. They are typically on campus and within a short walk to class. This means you can sleep in later, and as most college students know, every minute of sleep counts. The dining courts are open periodically throughout the day and having your food prepared for you can save more time for studying. Before selecting a resident hall, do some further research to find out which one is best suited for you.   Click here  for a closer look at the resident halls on Purdue University’s campus.

Renting an apartment or a house can be a wise decision for someone who is looking for a little more responsibility, personal space, and a chance to keep some cash in their pocket. With the money I saved living off campus, I was able to stay year round versus the typical 9 months students stay living in the dorms. Trust me, not moving my things twice a year was a bonus. I had to make sure I chose the best possible place and with apartments, it is all about location, location, location, and benefits.  Typically, the farther you go from campus, the more affordable the apartment is going to be. However, if you go too far you might end up paying more in gas and you might have to buy a parking pass. Ensure you’ll make it on time by finding an apartment that offers free transportation or is at least located on the CityBus route. You may not be able to find an apartment that offers 3 meals a day and unlimited soft drinks like the Purdue dining halls, but you can find apartments with swimming pools, gyms, and movie theatres. Before you sign a lease, make a list of benefits you would like to have in an apartment and then visit BoilerApartments to get a closer look at apartment options in the local area.

Photo by: Theif12 Permission by: Creative Commons

Photo by: Theif12
Permission by: Creative Commons

While off-campus living gives you more personal space, Residence halls are filled with many other students. Sometimes those students even share the same major as you. This creates an open door for group study. The residence halls give a close network with many possibilities for mentoring and friends. I lived in a residence hall my first year, and I didn’t like the experience of sharing a room with another person.  There are many things I had to adjust to while living in the residence hall. For example: Residence halls only have community showers. But, my first friends on campus were people I met just walking around the halls, and these people are still my friends today. Before you jump to sign a lease, make sure you can make friends and build a network in the off-campus environment. Joining clubs and getting involved in extracurricular activities on campus help everyone develop socially.

Before settling on a residence hall or renting somewhere off-campus, determine what is important to you and create a budget for housing and food. Some people will spend their whole time at Purdue in a Residence Halls because living in an apartment is just not for them. Some people will never live on campus because it doesn’t fit in their budget.  It really breaks down to the small things that matter to you.


After you calculate how much money you can budget for housing, complete the following housing test by agreeing or disagreeing to the statements. There’s a lot of other factors to consider when choosing your housing situation, of course, but these are just some starting questions to consider when starting the decision-making process.

1. I prefer sleeping in.

2. I would rather walk to class.

3. I can (or will learn to) cook.

4. I have transportation to late classes/evening exams.

5. I don’t mind sharing a room with a person I have never met.

6. I am/will be involved in clubs/activities.

7. I would like to have a pet.

8. I will be working throughout the year to pay for my housing.

9. I am comfortable with community showers.

10. I plan on taking summer classes.

If you agreed with numbers 1, 2, and/or 9 then you may prefer living on-campus in a residence hall

Numbers 5, 6, 8 can go either way, but should be factors when deciding where you’ll live: is it really convenient for you to have to drive in every day/rely on a bus? Would you rather live with a bunch of friends or by yourself?

If you agreed with numbers 3, 4, 7, and/or 10 then you may prefer living off-campus (especially if you want to have a pet).

 

Lower the Cost of College by Spending Less on Books

1 Jul

Brandon Endsley, Financial Aid Administrator and Purdue Alumni
www.purdue.edu/mymoney

college books costs too much

college books costs too much

The cost of college today is all over the news.  From every media outlet you can read, watch, or listen to a professional talk about how student loan debt is at an all-time high and tuition and fees are rising faster than inflation.  While this all maybe true, talking about the issues over and over does not help any student attending college.
Pick any college student and they can tell you how the cost of college affects them negatively.  I am going to cover some simple tips students can use to cut their overall college costs by spending less on text books.
Per CollegeBoard.org, in the academic year 2006-2007 the average annual costs of books for a 4 year public university was $942 and that number continues to rise year after year.

1.      Rent if possible.  For the average college course, renting books is cheaper and less of a hassle for buying your textbooks.  Everyone knows that buying a used book is cheaper than buying a new book, but when you go to sell your book back your “buy-back price” is much less than the buy price and in many cases the book store will not even purchase the book back.  Plus, you may have to wait in long lines with unpredictable weather (if you’re in the Midwest) for little recovery of your first investment.  When you rent a book you pay a flat fee and return it by the end of your semester.  If you use an online source like cheapbooks.com or www.chegg.com you can FedEx your text-book back to them within a reasonable time period after your semester ends. Local bookstores may also have an option to rent.

2.      Look for an older edition of your textbook.  Calculus has not changed in 2000 years, but the story problems have.  I recommend checking with your professor to see if you can buy an older edition.  I took a tax class where the new book was $300 and I refused to pay that price for one text-book.  I bought an edition that was three years older for $0.62 on Amazon and received the updated tax codes (which were the only difference between the two text books) from my professor.

3.      Look for the e-book.  An e-version could be an option offered by the publisher of your text-book.  The online version sells for a fraction of the price of a new or used book.  The only downside of purchasing the e-book version is sometimes there is a limited time frame you can use the text-book.  If you want to keep the book for referring to after the class is over, this may not be the route for you.

4.      GOOGLE it.  It’s not just a phrase but a way of life for most college students.  What will surprise you is how many titles are available on Google books.

5.      Check Craigslist.  Besides garage sales, housing, and boats, you can find used books for sale from students who have taken your class.

6.      Borrow the book from a friend who has previously taken the class. 
 
7.      Share a book with a classmate and split the costs.  In this scenario I would still recommend buying a cheaper book and splitting the cost for even higher savings.

8.      Check it out of the library.  Your campus library should have the book required by your class.  You may not be able to leave the library with the book, but you could at least get some free studying done… until the library closes that is.

9.      Speak with your professor. A lot of time the department requires a book to be purchased but the professor barely uses the material or provides the material needed in class.  If it is before the semester starts try sending your professor or department head an email asking about the course materials.

Downside of Student Loan Default

12 Nov

Brandon Endsley, Financial Aid Administrator and Purdue Alumni
www.purdue.edu/mymoney

student loan debt loan

thinking man on debt

Before I discuss the downsides of student loan default, you probably need to know what the term student loan default means.  A student loan default occurs when a student accepts a loan to cover their higher education costs and fails to fulfill the payment obligations they agreed upon once the loan has entered repayment. If your loans enter default status do not feel embarrassed.  Many other student loan borrowers can relate to your situation.  According to the Federal Reserve Bank of New York in 2011, 27% of the 37 million student loan borrowers could not meet the repayment obligations and have defaulted on their student loans.  That means about 10 million Americans could not make their student loan payments.

Problems for the 10 million Americans in student loan default go above and beyond the ability to make payments.  There are 6 common consequences that can occur from a student loan being placed in default status.

1.)   A loan default in any category (mortgage, car, or credit card), would result in a negative effect on your credit score.

When entering into student loan default, all three credit reporting agencies are notified, causing your credit score to drop up to 150 points.    The maximum credit score is 850.  What is considered poor credit starts below 700 points.  If your credit score started at 850 points, a credit reduction of 150 points will have a negative effect on your ability to receive additional loans in the future.  A poor credit score can result in a denial of a future mortgage, car loan, or even the opportunity to obtain a credit card.  A loan default can also affect your ability to attend higher education institutions.

 2.) While your student loans are in default status, you cannot receive additional financial aid.

If you want to return to college and receive your associates, bachelors, masters, or even Ph.D., and your loans are in default, you will have to fund the complete cost of your education without federal aid.  This means, you will also not be eligible for federal, state, or institutional grants, scholarships, or loans, regardless of where you previously attended.

3.) The federal government can garnish your wages.

One avenue the government can use to receive payment on your defaulted loans is through wage garnishment.  Wage garnishment is where the federal government takes a percentage of your paycheck until the student loan debt has been paid off.  The federal government may take up to 15% of your wages, but the amount they take cannot exceed 30 times the federal minimum wage.

4.)  You will not receive a refund from your tax return until you are out of student loan default.

Along the same avenue, the federal government can also withhold tax refunds from the federal or state tax returns, and apply the funds to the overall student loan debt.  In addition to the garnishments listed above, the government can garnish federal benefits you receive to pay towards your debt.  An example of this would be, garnishing your Social Security Disability benefits (SSD).

5.)  You can be sued for debt owed.

Another way the government can receive funds owed is through the court system.  The federal government can sue for defaulted student loan debt.  Also, provisions for a statute of limitations do not exist. This means the federal government does not have a time frame limitation to sue and can bring a case against you to at any time.

The last two consequences include bankruptcy and additional fees.

6.) You cannot discharge your student loans in bankruptcy and you will be charged additional fees.

Bankruptcy is a reallocation of your assets to resolve your debt issues.  In previous years, student borrowers could include student loan debt in bankruptcy.  Now that policies have changed, student loan debt can only be included if approved by the court. 

Additional fees, charges, and collection cost involved in the defaulted student loan process mark the last consequences to consider.  Each debt retrieval avenue listed above costs either the federal government or collection agencies money.  The costs are then passed down to you, as the owner of the loan.  These fees will only increase the amount owed on the loan, and increase the repayment period.

Life happens, and situations can arise that make the repayment of a student loan difficult or even impossible.  Loss of a job, the inability to find employment after graduation, or just not earning enough money can all be reasons a loan may go into default.  The government understands these situations and has alternative repayment options for borrowers who fall into hard times.  Before your loans go into student loan default, be proactive. Call your lender and find out about the different options that may be available to you.  There are other options to help you through these tough times before causing further financial headaches.

Downside of Student Loan Default

24 Apr

Brandon Endsley, Financial Aid Administrator and Purdue Alumni
www.purdue.edu/mymoney

student loan debt loan

thinking about debt

Before I discuss the downsides of student loan default, you probably need to know what the term student loan default means.  A student loan default occurs when a student accepts a loan to cover their higher education costs and fails to fulfill the payment obligations they agreed upon once the loan has entered repayment. If your loans enter default status do not feel embarrassed.  Many other student loan borrowers can relate to your situation.  According to the Federal Reserve Bank of New York in 2011, 27% of the 37 million student loan borrowers could not meet the repayment obligations and have defaulted on their student loans.  That means approximately 10 million Americans could not make their student loan payments.

Problems for the 10 million Americans in student loan default go above and beyond the ability to make payments.  There are 6 common consequences that can occur from a student loan being placed in default status.

1.)   A loan default in any category (mortgage, car, or credit card), would result in a negative effect on your credit score.

When entering into student loan default, all three credit reporting agencies are notified, causing your credit score to drop up to 150 points.    The maximum credit score is 850.  What is considered poor credit starts below 700 points.  If your credit score started at 850 points, a credit reduction of 150 points will have a negative effect on your ability to receive additional loans in the future.  A poor credit score can result in a denial of a future mortgage, car loan, or even the opportunity to obtain a credit card.  A loan default can also affect your ability to attend higher education institutions.

 2.) While your student loans are in default status, you cannot receive additional financial aid.

If you want to return to college and receive your associates, bachelors, masters, or even Ph.D., and your loans are in default, you will have to fund the complete cost of your education without federal aid.  This means, you will also not be eligible for federal, state, or institutional grants, scholarships, or loans, regardless of where you previously attended.

3.) The federal government can garnish your wages.

One avenue the government can use to receive payment on your defaulted loans is through wage garnishment.  Wage garnishment is where the federal government takes a percentage of your paycheck until the student loan debt has been paid off.  The federal government may take up to 15% of your wages, but the amount they take cannot exceed 30 times the federal minimum wage.

4.)  You will not receive a refund from your tax return until you are out of student loan default.

Along the same avenue, the federal government can also withhold tax refunds from the federal or state tax returns, and apply the funds to the overall student loan debt.  In addition to the garnishments listed above, the government can garnish federal benefits you receive to pay towards your debt.  An example of this would be, garnishing your Social Security Disability benefits (SSD).

5.)  You can be sued for debt owed.

Another way the government can receive funds owed is through the court system.  The federal government can sue for defaulted student loan debt.  Also, provisions for a statute of limitations do not exist. This means the federal government does not have a time frame limitation to sue and can bring a case against you to at any time.

The last two consequences include bankruptcy and additional fees.

6.) You cannot discharge your student loans in bankruptcy and you will be charged additional fees.

Bankruptcy is a reallocation of your assets to resolve your debt issues.  In previous years, student borrowers could include student loan debt in bankruptcy.  Now that policies have changed, student loan debt can only be included if approved by the court. 

Additional fees, charges, and collection cost involved in the defaulted student loan process mark the last consequences to consider.  Each debt retrieval avenue listed above costs either the federal government or collection agencies money.  The costs are then passed down to you, as the owner of the loan.  These fees will only increase the amount owed on the loan, and increase the repayment period.

Life happens, and situations can arise that make the repayment of a student loan difficult or even impossible.  Loss of a job, the inability to find employment after graduation, or just not earning enough money can all be reasons a loan may go into default.  The government understands these situations and has alternative repayment options for borrowers who fall into hard times.  Before your loans go into student loan default, be proactive. Call your lender and find out about the different options that may be available to you.  There are other options to help you through these tough times before causing further financial headaches.

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