July Financial Aid Action Plan

First, let’s do a quick review. Last month, we talked about new student orientation at each school. If you have not yet attended, look for any notification the school may have sent you, and make sure to attend the orientation! Let your parents know the time and date so they will be able to attend the orientation with you.

In May and June, you also researched private loans for tuition or education costs that were not covered. If you have obtained a private loan, check your paperwork or call your loan provider to find out when the money will be distributed. If you are not ready or able to apply for a loan yourself, ask your parents if they are willing to apply for the loan.  Either way, visit www.loans.financialaidtips.com to get started  and learn more.

Hopefully, you have done some work this summer to help pay for the things you will need for your dorm room or school supplies. If you still haven’t opened a checking account, it is vital to do that before you start school. You will need a safe place to keep any refunds you may receive from your school and to use to keep your savings and pay for expenses as you go.  Also, get that prepaid Visa or student credit card.

Many students are unaware they will be receiving a financial aid refund at the beginning of the fall semester. If you received grants, loans, or scholarships on your financial aid report, you may remember that they split the money you received into two semesters. This means if you received a $2,000 loan, the school will split the money equally to apply toward each semester. Sometimes a student receives enough financial aid to cover the school’s tuition with money left over for that semester. For example, if you receive $20,000 dollars in financial aid for the year, you will receive about $10,000 dollars per semester, excluding summer. If your school tuition only costs you $8,000 dollars for the fall semester, then you will have $2,000 dollars in financial aid money left over, which the school will refund you. The refund may be mailed to you or with some larger universities, it may be directly deposited into your bank account.

The leftover refund money is meant to help you pay for any other school-related expenses. So, before you go on an impulse personal shopping spree, use your common sense to determine the best way to use the refund money. How will you pay for the textbooks? Textbooks can run as much as $500 dollars or more per semester. You will definitely need to save some of the money for rent or transportation expenses. Consider using the money to give you an advantage with your school work. Are you taking a math course? Buy a new calculator. Do you have a computer? Perhaps you could purchase a computer, It is a good idea to buy the things you want after you have the things you need.  Speaking of computers, having a computer at college is becoming a true need.  While your school and maybe even roommate could have plenty of access, it is certainly preferred to have your own so you can get on it when you need and save all your files safely.  Prices vary significantly.  Generally, you can find better deals online.  Try these links - CompUSA, Dell Outlet Store and Tiger Direct for decent deals on quality products.

Most fall semesters begin at the end of August. This is when your financial aid money should be distributed to you; however, many times it doesn’t arrive until September, and you are left owing the school a few thousand dollars in order to start your classes. Don’t panic. Schools are aware that financial loan and grant checks can be delayed. For this reason, they have emergency tuition loans available which are provided by the school and automatically paid when the school receives the financial aid check. As soon as possible, check with the financial aid department to find out if all of your awards have been received by the school. If not, go to the emergency loan department and fill out an application for an emergency tuition loan. You will need to sign a master promissory note and look over the interest rates and regulations for the temporary loan. Usually, emergency loans are only deferred for about a month, at which point you will need to begin payments on it. However, by that time, you should have received your award money.

If you end up owing money to the school, and have no pending financial aid rewards or are unable to get an emergency loan, talk to your school about payment plans. Some schools will let you begin classes if you can pay 50% of what is owed before classes begin. After that is paid, the school will set up a payment plan which will be paid throughout that semester. Not all schools do this, so check with the Payments & Collections department or the Office of the Registrar to see what options are available to you.

Finally, find out what jobs are available to you on campus, if you haven’t already. Almost every university has a website which allows students to look at job openings around the campus and apply for them. Prepare a resume and start looking for something which will fit with your class and study schedule. Visit the Career Center at www.financialaidtips.com – read through the free information and consider downloading the Rapid Guide to Job Hunting from the store there.  You can begin your employment search this summer and try to secure a job for the upcoming semester. If your school does not have a website with job listings, check the want ads in the school paper and go to the school’s Career Center on campus to explore what positions are available. Check with your advisor about off campus jobs. There might be one that will help in your future career or even an internship for which you can get credit hours in addition to pay.

If you have been keeping up with your college preparation, you should do well in college. Staying organized and on top of tasks are good qualities which will be helpful even after you complete your degree.

In summary, this month you will:

o   Research on-campus (and off campus) jobs or internships

o   Check with your financial aid department about refunds or money owed

o   Meet with your school about emergency loans and payment plans, if needed

If you have any questions about any of these topics once you start school, remember to review these articles. If you need further clarification or specific rules which may be different for your school, ask the financial aid department or contact your advisor. Don’t be afraid to ask questions if you are unsure about something. Asking is the only way to receive an answer. Make sure you get familiar with our website at www.financialaidtips.com and continue to follow our latest tips. Hey, if this newsletter series has worked well for you, make sure you pass our website and newsletter signup to your friends and advisors so next year’s grads will have the benefit of all this great information also!

Good luck in your college career!