The Itch to Ditch

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Happy Back to School!  Today, I just wanted to share a quick little message for all of you college aged "kids."

Sometimes it's hard to get up and go to class.  Especially to an 8:00 am college class.  Especially when you don't live on campus and have to drive across town to get there.  Especially when you also work full time and were up late studying the night before...

To be honest, I used to ditch class all the time.  I would just study the material on my own rather than sit through lecture.  One of my Ecology professors actually conducts a study every semester about how class attendance effects test scores.

Before every test, we would have to write down how many classes we had missed since the previous exam.  That number was then compared against test scores and the rest of the class' attendance/scores.  It turns out its true.  When you miss class, grades suffer.  But did you know that missing class can also cost a fortune?

What if you went out to dinner and ordered two entrees but only received one? What if you were charged for both of the meals?  I think a fuss would be made and you would demand the second entree be brought to you, or demand that it's charge be removed from your bill..  You didn't eat it so you're not paying for it, right?  Unfortunately, this does not work with college tuition, and yet people still don't realize the impact that missing a class can have on their wallet.

For example, at my school tuition for a single three credit class costs $531.75 each semester, not counting all of the added technology, library, health facility fees, etc.  With those fees, that number jumps to a whopping $927.98 just for one class!  In an average semester, each class meets between 22 to 25 times.  That means that each lecture or exam costs about $37.12.  Every time you ditch, you're basically throwing away almost $40!  That's a tank of gas, or a date night, or even groceries for a week!

Next time you get the urge to sleep in, remember, you've already paid for class, you may as well show up!

FAFSA 101

Have you heard of FAFSA?  If you're a college aged student I hope you have...  I didn't learn about it until I was a Junior in college and had already put 2.5 years of tuition and other college expenses on credit cards!  Yea, that's right.  I was applying for scholarships left and right through websites like Fast Web, but I was seeing little to no results.  Although I graduated high school with all AP classes, and a 4.1 GPA, I wasn't getting anything!  The only other avenue I knew of for financial aid was whatever my school awarded me... nothing. 

If you're new to college, or, like so many of my friends, have been in school for awhile but didn't know that financial aid was actually available to you, keep reading!

What is FAFSA?

The FAFSA (the Free Application for Federal Student Aid) is the first step in the financial aid process.  You use it to apply for federal student financial aid, such as grants, loans and work-study. In addition, most states and schools use information from the FAFSA to award non-federal aid.

Your FAFSA form contains a bunch of questions relating to your finances as well as those of your parents.  This form must be filled annually, preferably at the beginning of the year, right after filing your taxes.  FAFSA uses your tax information (if filing independently) and/or your parent's tax information (if filing as a dependent) to determine your family's financial strength, and thus your eligibility for financial Aid.

What is an EFC?

Your EFC is your Expected Family Contribution.  This is the number that through a series of calculations, the government estimates what you and/or family should be able to contribute to your college expenses.  Using your EFC, another series of calculations is done based on what the average cost of secondary education.  The number found is typically what you will be awarded in financial aid whether it be grants, scholarships, student loans or work-study.

What is a SAR?

A few days after submitting your FAFSA information, you will receive a SAR (Student Aid Report) via mail or via the Internet.  This report will show you all of the information you submitted on your FAFSA as well as tell you your EFC.  When you receive your SAR, it is important to review your information and make any corrections.  Even a small mistake can drastically change your EFC, and therefore change what aid your are eligible for.

How Much Do I Get and When Do I Get it?

Your EFC, along with the rest of your FAFSA information, is made available to all the schools you list in on your FAFSA form. The schools use your EFC to prepare a financial aid package to help you meet your financial need. Financial need is the difference between your EFC and your school’s cost of attendance (which can include living expenses), as determined by the school.

Any financial aid you are eligible to receive will be paid to you through your school. You can check your school's financial aid website to see what money you were awarded, and accept any awards you wish.  If you were given both grants and loans, but only wish to accept the grants, you can do so.  Typically, about 10 days before the start of the semester, your school will disperse your money.  They will first put your aid towards tuition, fees, and room and board (if provided by the school). Any remaining aid you accepted is then distributed to you - either by check or direct deposit -for your other expenses (textbooks, parking, etc.).  If you do not accept aid, it will not be dispersed to you once your expenses are paid, you are denying that money, and can not get it at a later semester in the school year.

Helpful Tips:

1.  Do your Taxes:

Filling out your tax return first will make completing the FAFSA easier. However, you do not need to submit your tax return to the IRS before you submit your FAFSA. But, once you (and/or your parents if you are a dependent student) file your tax return, you must correct any income or tax information that changed since you filed your FAFSA. Inaccurate information on your FAFSA may delay your receipt of federal student aid. Also, you will be required to return federal aid you improperly received based upon incorrect information.

2.  Apply Early

Deadlines for aid from your state, from your school, and from private sources tend to be much earlier than deadlines for federal aid. To make sure that any financial aid package your school offers you will contain aid from as many sources as possible, apply as soon as you can after January 1, 2006.

The U.S. Department of Education will process your 2006-2007 FAFSA if received on or before July 2, 2007. However, to actually receive aid, your school must have your correct, complete information before your last day of enrollment in the 2006-2007 school year. So it is important to apply early to make sure you leave enough time for your school to receive your information and to make any necessary corrections.

3.  File Electronically

You can fill out and submit your application through FAFSA on the Web at www.fafsa.ed.gov. Electronic filing is the fastest, easiest and most accurate way to apply for financial aid. The information you enter in FAFSA on the Web will be checked on the spot, and we will call your attention to any errors or missing information. This reduces the chance that you will need to correct your information later. Preventing errors means your school will receive your application results sooner. By filing online, you may also be able to skip some questions based on your answers to earlier questions.

If you have a U.S. Department of Education PIN (Personal Identification Number), you can even sign FAFSA on the Web electronically. To request a PIN, visit http://www.pin.ed.gov/. Your parents can also request and use their own PINs to sign your FAFSA online. We encourage you to apply for a PIN prior to submitting your FAFSA, but if you don’t we’ll automatically send you one once we have processed your application.

Free Money!  What's the Catch?

I love FAFSA, it has allowed me to get a college education, however, I do think they could do somethings differently when it comes to calculating EFC.  The forms essentially use information from your taxes to determine how much aid each student should receive.  This amount, however is determined almost entirely from taxes.

When I started school, it was not taken into account that my parents had a mortgage, and 4 car payments.  It did not take into account credit card debts, student loans, or other debts that we had.  It did not take into account regular expenses that we paid every month, and it did not take into account the fact that my parents had 3 kids entering college in the same year.  They really just looked my income, as well as my parents' incomes, and said, OK, here's what you can afford to pay!  The number they gave shocked us all.  There was no way in a hundred years that we had that much money just laying around.

I strongly recommend that if the student is under 23 years old, has a job, and will be filling out their own tax information, that they claim themselves independent.  Be sure to get your parent's permission to do this - they get a big tax break and more money back for having you as a dependent.  If the student files as independent, they will be awarded more financial aid that if they file jointly with their parent's information.  For any students older than 23 years old, you will have to file independently, even if you still live at home.  Once you reach 23 years old, your parents can no longer claim you as "dependent."

I hope this information is helpful and has given you another resource to receive money to help pay for school!  I know every semester, I am awarded almost 5x more than my actual expenses, so it really is a lifesaver.  Good luck!

Potential Spending Fast Hold

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I have encountered a large bump in the Spending Fast road...

That bump is more commonly known as tuition.  Every semester, it seems as though I have "issues" (to put it nicely) with my financial aid.  I qualify for it, the government awards me money, and then my University thinks of a reason not to give it to me... I often wonder if they are just pocketing it for themselves.  This semester is no different.

After applying for financial aid, the government awarded me $6,2500 for both the Fall 2011 and the Spring 2012 semesters.  Insert sigh of relief because I will finally be able to finish school and not have to take out another loan...  I was so excited.  Not only would I able to finish school and graduate, but I would be able to continue saving money for my house down payment!

Holy crooked criminals Batman, the greedy University monsters are at it again!

Shortly after being awarded my government money, I received a letter from my university stating that I was not eligible for financial aid.  The reason?  I have exceeded the maximum credit allowance for my university, which is 186.  What?!  That seems like an awful lot of credits to have earned without a degree...  I met with my financial advisor, and she assured me that in fact I only had 125 attempted credits, but typically, "students who reach 100 credits are flagged," and thus forced to appeal the revocation of financial aid.

Of course I submitted an appeal, but found out that the process will take about 30 days to complete.  Meanwhile, my tuition is due in 2 days.  If it is not paid in full by Friday at 5:00 pm. I will be purged from my classes, with very little chance of getting back in due to wait listed students.  So what do I do?

I tried signing up for the school's offered payment plan which would allow me to make payments for the next three months, and because I would be paying, I would not be purged from my classes.  I am so upset, why should I have to pay, when I was awarded financial aid?!

At least until my financial aid is appealed and the money goes through, the payments on the plan are something I can afford.  So, with much lament, I decided to sign up.  At the very least, at least I could be reimbursed later when my aid goes through.

Not so fast!

Because I have "Pending Financial Aid" I am not eligible for the payment plan.  I was to told I would have to pay my bill up front.

"If I had the money up front, I wouldn't have applied for financial aid, or tried to sign up for a payment plan," I complained to the undergrad freshman who was manning the Financial Aid office and being very unhelpful about finding a solution to my problem.

So, it looks like I am stuck paying a bill I had not counted on paying.  The only money I have is the money I have saved so far from my Spending Fast, and even still, I am still about 2/3 short.  I have emptied my money market account and am in the process of taking out a signature loan through my credit union to pay the rest.  I am determined to pay the loan back in the same amount of time that the school's payment plan would have allowed, 4 months, so that I can continue saving again as soon as possible.  As sad as I am about my diminishing house fund, I have to pay for school, so all of my Spending Fast savings for the next four months will not be going into my money market account, but now will be going to pay back my tuition.

Let's keep our fingers crossed that my financial aid appeal goes through, and I will be reimbursed so that I am not completely deterred from my saving.

Half.com

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With School beginning next week, I had the ever so glorious task of buying Textbooks today. While most students groan and mumble about this inevitable errand, Science students downright dread it. The average Science book costs $300.00. Given that most scientific subjects are ever changing, most text books need to be purchased in their NEW condition every semester, even for a class like Biology I and Biology II.

I got on my University Bookstore’s website and compiled my textbook list for this semester. I’m taking 14 credits of upper division Biology classes along with a Spanish class, so apart from mi libro de español, I needed all new, all expensive texts.

The Grand Total at check out for a Statistics text, 2 Biochemistry texts, and an oh-so-fascinating text on Ecology?

*GASP!* I think my heart stopped. After I cried a little, I realized that it was worse than I was expecting {around $400.00 or so}, but I also realized “I can do better!”

I headed over to Half.com. Have you heard of it? I’m almost certain I mentioned it on my other blog a time or two. In case you missed it, just type in the text book name or ISBN and it will search for every copy of that book that is being sold, and listed in order of its condition. Sometimes the site may find a result for $50.00 but upon further investigation it is $50.00 for a "poor condition" text with "major highlighting" and "coffee stains on the cover."

Typically, I try to buy all of my books “Brand New,” “Never Used,” and “Still in Shrink Wrap,” or as close to it as possible for the cheapest price possible.  I usually save a fortune!  This year however, Half.com has added a new feature enabling students to RENT their textbooks!  Luckily for me, all of the textbooks I needed this semester are available for rent.  Even the super.new.updated.with.one.new.discovery science books.  Do you know how much I paid for all 4 of my books?

$119.00!

Attention all college students! If you haven’t already, head over to Half.com for some serious savings. If you’ve already purchased your books for this semester, return them! Seriously, there is still time, and then go to Half.com and rent them.

Balance

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A few years ago, I went in for an interview with my Bishop.  No, it wasn't that kind of interview, I wasn't "in trouble," it was the how's.your.life.going kind of interview.  After talking for about 30 minutes, he basically told me that my "life balance sucks."

"Morgan, imagine you're a waitress holding a tray.  Now picture the different aspects of your life like glasses on that tray.  Part of having life balance means you can put all of the glasses on your tray, and organize them in such a way that you won't drop anything.... In your life right now, you dont' even have all the glasses...  You've got school, you go to church and have good family relationships, but what about dating? Or career? Or friends? Or finances?  Or your own home? Or personal improvement and hobbies?"

Uhhhhhh?

I said I'd work on it, but I never really did.  I'm really good at substituting one aspect of life for another, but I've never actually tried to achieve "life balance," and I often wonder how in the world people do.

Lately, I've been really stressing about school.  This coming semester I am enrolled as a full time student (14 credits);  it will be the first time I've tried going to school full time while being employed full time.  I know it will be tough and I'll be tired all the time, but I think I can do it, even with everyone else telling me I can't.

I know I can do school and work, but what about everything else?  Where am I supposed to find time to date?  Or play with friends?  Or exercise?  Or garden?  Or keep up with my budget? Or anything else I normally like to do? 

Any tips on achieving life balance?

August Goals

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I know I have a list of financial goals already, but those are more "long term goals."  I have a lot coming up in this next month and I feel like my mental checklist just isn't going to cut it.  So, to get them out of my head and onto "paper," here they are.

1. Pay off Signature Loan for last semester's tuition.
2. Take out another Signature Loan for upcoming semester's tuition.
3. Adjust budget to cut out unnecessary groceries, hair and transportation costs - put towards tuition
4. Don't contribute to Emergency Savings this month - put that money towards tuition
5. Decrease retirement contribution amount - put that money towards tuition
6. Cancel dental appointment until next month
7. Pay my tithing in full, and pray a lot that the Lord will provide!

School was something I completely forgot to factor into the Spending Fast equation!  I don't know how I could have forgotten about it, it is my largest expense by far!  I know it doesn't make sense to get into more debt when I'm trying to save as much as I can.  But as the saying goes, "such is life."  It's not that I can't afford school right now, I can easily factor the costs into my budget, but unfortunately my school only allows students to pay tuition for 3 weeks after the beginning of the semester and then they are kicked out of their classes.  Because registration only lasts a week after the start of the semester, those that are kicked out can consider themselves "Royally Screwed."  I can't come up with that kind money in 6 weeks, so a loan will help me spread out the payments in increments I can afford. 

I'm starting to think that my goal of a house down payment may be a little too lofty...  Ugh, I hate discouragement.