Paying for unexpected expenses
An experience this past weekend got me thinking about unplanned expenses. I had my first homeowner emergency – the water and sewer drain starting backing up...into my basement. Yay, homeownership! 
Nearly $200 on the credit card later, I can once again shower, flush my toilets, do my dishes, and wash my clothes. Luckily, I created my emergency fund for situations like this. So I'm just a transfer and payment away from getting that cost off my credit card.
My situation got me thinking about student loan borrowers. College is full of unexpected expenses – higher book costs than anticipated, bigger utility bills, etc. Caroline suggested earlier this year to plan for the unplanned expenses. But if you didn't, what other options do you have?
If you've already used federal funding for tuition, but need more to cover the cost of your education (which includes your books, housing, etc.), one option to consider is a private loan. Depending on your situation, you may choose a certified or non-certified loan.
What's the difference? Check out this comparison with some of the big differences:
Certified |
Non-certified |
School certifies enrollment. |
School does not certify enrollment. You may be required to provide enrollment verification. |
The amount you can borrow is based on your cost of attendance, as determined by the school. |
The amount you can borrow is based on your cost of attendance or a fixed annual amount, whichever is less. |
The loan money is usually sent to the school |
The loan money is usually sent directly to the borrower. |
The interest rates may be lower for certified loans. |
The interest rates may be higher for non-certified loans. |
Here are two examples of Wells Fargo's certified and non-certified options for undergraduate students.
How have you dealt with unexpected expenses in college? Was your savings enough to cover them, or did you turn to a private loan?
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Contact Barbara
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Comments (2)
Found in Banking, Budgeting, Federal loans, Financial education, Money management, Paying, Preparing, Private loans, Wells Fargo Bank
Comments
Snx for you job!
It has very much helped me!
Posted by: Theolddosycle | March 20, 2008 03:30 AM
Or you can just get a job like the rest of us!
October 2, 2007 01:39 PM
Posted by: A | March 20, 2008 05:03 PM