Page 328 - Keys to College Success

get creative

GENERATE DAY-TO-DAY WAYS TO SAVE MONEY

Complete the following on paper or in digital format.

Think about all the ways you spend money in a month’s time. Where can you trim a bit? What expense can you do with-
out? Where can you look for savings or discounts? Can you barter a product or service with a friend? Give yourself a day or
two to come up with a list of ideas on a sheet of paper or computer. Create a list of five to ten workable ideas.
Then, give some of your ideas a try and see how they can help you save. Describe a plan for how you will use three to five
ideas right away.
Consider making the experiment tangible by putting cash into a jar daily or weekly in the amounts that these changes are
saving you. See what you have accumulated at the end of one month—and bank it.

■ Be aware of the total cost of attending college. When you consider how much
money you need, add books, transportation, housing, food, and other fees to the
cost of tuition.
■ If you receive aid, pay attention to the award letter. Know whether it needs to be
repaid. Follow all rules, such as remaining in good academic standing. Meet reap-
plication deadlines (many require reapplication every year).
■ Spend the money you receive on your needs. Don’t let your wants distract you.
Put your aid toward coursework and related food and housing expenses first.

Student loans are one way of borrowing the money you need to live and study.
However, they can cause problems. Next we’ll look at some specific financial issues
that demand your attention and careful management.

WHAT MONEY ISSUES REQUIRE
particular caution?

With your new independence comes increased responsibility. However, not every-
one sees or accepts that responsibility right away. Without the boundaries imposed by
family, many students go overboard with eating, don’t sleep enough, and—you guessed
it—pay little attention to their finances. To avoid the problems that befall many stu-
dents, take charge of the following issues.

Managing and Paying Loans

In response to rising education costs, students are borrowing ever-larger amounts of
money. Approximately 55% of students who graduate from a four-year institution with
a bachelor’s degree carry $28,000 in debt. Nationwide, the total amount of student
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loan debt has risen above $1 trillion and has actually surpassed the total credit card
debt held by all American citizens. Consequently, the number of students defaulting
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on loans (walking away from them without paying) is on the rise, and even personal
bankruptcy won’t make student loans go away. 14

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