November 2007 Archives

Karen

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In my first post, I mentioned the trials and tribulations my son has had to experience by not being a part of the "Wii"  crowd.

As the holidays approach, my son reminds me almost daily of how great it would be to get a Wii for Christmas. My husband and I decided that if we could find one, given that these tend to become almost like Where's Waldo  around the holidays, we would get it.

Yesterday, my husband called me to announce that he is the "best dad ever" since he found and purchased a Wii. Whew — checking that off the shopping list right now!

So we were surprised when Wells Fargo contacted us last night. Why were they calling? To ask if we had made a recent purchase using our Wells Fargo card, since it was a purchase we didn't normally make. Wow, that's looking out for us! We verified that the purchase was one we made and thanked the representative for checking in.

Although I know Wells Fargo has many services to protect my accounts, it's still reassuring to know that they're working hard to make sure my money is safe.

Staci

Over the Thanksgiving weekend, I ate a lot of pie and watched a lot of TV. In fact, I'm now down to 47% capacity on my DVR (anytime I get below 50% is a big accomplishment for me). I got caught up on most of my favorite shows, including the fantastic How I Met Your Mother . But the series' "Dowisetrepla"  episode — though hilarious — left me worried about some of my beloved television characters.

Here's why: Lily (played by the terrific Alyson Hannigan ) is over her head in credit card debt and refuses to tell her new husband Marshall. Together the two of them make a terrible decision to purchase an overpriced apartment down wind of the sewage treatment plant. With Lily's financial baggage, they qualify for a mortgage — but at 18% interest, gasp — and decide to buy!

C'mon, Lily! You were Willow on Buffy the Vampire Slayer , for heaven's sake! You're stronger than that! I expect more from you!

Sorry about that. Sometimes I have a tough time separating television from reality.

See, in television, a series of poor financial decisions like Lily and Marshall's are funny. In reality, not so much. So take note: If you're married and have a lot of credit card debt, tell your spouse. If you're considering buying an expensive piece of real estate near a sewage treatment plant, think again. And if someone offers you an 18% interest mortgage, run.

But if someone offers you pie and time in front of the DVR, by all means, settle in and enjoy.

Dinna

One thing I've done is make my holiday gift list. Man, it's long!! All I could think was, "How much am I going to spend this holiday? Can I afford to get something for everyone on my list?"

To that end, I grabbed my laptop, got comfy on my couch, opened up an Excel spreadsheet, and started making a holiday gift-giving budget . I listed potential gifts and expenses for my family, extended family, friends, neighbors, hostess gifts for parties, etc.

After going through the budget, I realized that I needed to develop a gift-giving strategy — something that allowed me to give meaningful gifts but also stay within my budget constraints. Maybe I could give gifts to kids only, make family gift baskets, suggest to extended family that we pull names from a hat, contribute to a charity  in a family's name, or even do a white elephant  gift exchange.

I haven't quite figured out what I'm going to do, but one thing is clear: Making a gift-giving budget helped me see where I needed to cut back/modify/expand my gift-giving so I don't spend blindly.

What are your gift-giving strategies?

Editor's note: The Student LoanDown team will be spending the rest of the week in tryptophan-induced comas . We wish you all a Happy Thanksgiving — gobble, gobble!

Staci

Calling all closet performers, The Music Man  fans, and karaoke lovers: The Wells Fargo wagon is a-coming down the street!

Only a week remains for you to enter our Center Stage in the Rose Parade®  music video contest! Make your own video for the "Wells Fargo Wagon" song, and you could win the grand prize — to have an excerpt of your winning video air during the television broadcast of the 2008 Rose Parade®. Here are the official rules .

Take a look at the competition and get your entries in today. Not feeling creative enough to make your own video? Vote for your favorite entry instead!

Separately, you also can enter the 2008 Rose Parade® Sweepstakes, where the grand prize includes a ride in the Wells Fargo stagecoach during the Rose Parade®, Rose Bowl Game® tickets, hotel accommodations, and air transportation provided by American Airlines® from any American Airlines® destination to Los Angeles. Check out the complete set of prizes and sweepstakes rules. I've been to the Rose Parade once — my sister's high school marching band was invited to perform in 1998 — and it was definitely worth the trip!

PS: If the "Wells Fargo Wagon" song is permanently stuck in your head now, I'm sorry. I sing it in my sleep!

Caroline

Calling all parents of high school seniors!

It's now time to take on a not-so-fun parental duty. It's time to have "the talk" with your senior: that uncomfortable discussion about college costs and their future ability to repay their student loans.

In almost every article I read these days about student debt, there are a few anecdotes about students who spent thousands upon thousands of dollars on college, only to find upon graduation that their salary is completely out of whack with their debt load.

I'm always left wondering if the student either: 1) had no idea of the earning potential in his/her chosen career; 2) knew the earning potential but just didn't realize how that would translate in a practical sense; 3) just chose not to think about finances at all until it was time to pay.

It's easy to understand why 18 year-olds would have a tough time understanding how their salary translates in the real world. That's where parents need to step in during the college-selection process and give the following short, but pointed speech:

I know you're very interested in attending "Really Expensive College," but we're going to have to consider what kind of financial aid package they offer you. Because you plan to study XYZ, you'll probably start out at a salary of around $25,000. Once we see your financial aid package, we'll have to figure out how much money you'll need to borrow, and what your monthly payments will be once you graduate. If it's going to be too much to handle on your salary — and I can help you figure that out — you're going to have to consider "Less Expensive College ."

Of course, the discussion may not be that simple — especially if your child is very attached to the idea of attending an expensive school and following a career path that doesn't justify the price tag. But hang in there, parents, and keep them focused on financial reality. They'll thank you one day.

Parents: are you talking with your kids about college costs?

Staci

Last month we launched our "Ask the Expert" tool — and since then, your questions have been steadily rolling in. At first I was surprised by the number of inquiries we received this way. I thought the Student LoanDown community would use the comments section to ask questions — but I guess you take that section literally and use it for actual comments, not questions!

Nonetheless, I'm glad you're finding "Ask the Expert" useful. It's certainly useful for us bloggers because we learn exactly what kind of information you'd like more of — and then we can share it with the rest of our community.

So here's a question we received from a concerned parent about financial aid timing (certainly appropriate as spring semester is just a few months away):

My daughter is a freshman. We did not take out any loans for the first, fall, semester, but would like to take out one for the spring semester. Is it possible to get a Stafford or Perkins loan for the spring semester, or have we missed this cycle and have to wait for the fall of 2008?

And here's my response:

No, you haven't missed the cycle. (Whew!) If you haven't already completed the FAFSA  (Free Application for Federal Student Aid), that's your first step. The 2007 FAFSA covers the 2007-2008 academic year through June 30, 2008, and will determine your daughter's eligibility for financial aid.

I'd suggest that you check with the financial aid office at your daughter's school. Low-interest Federal Perkins Loans  are based on financial need and are awarded on a first-come, first-served basis, so those may not be available. But low-interest Federal Stafford Loans have both need-based and non-need-based components (subsidized and unsubsidized loans), and as long as your daughter is attending an eligible school at least half-time, this should still be an option for her.

One last thing: As a parent, if you're interested in borrowing to help your daughter pay for school, check out the Federal PLUS Loan for parents. It's also not based on financial need but does require a minimal credit check.

Please keep your questions coming — they're interesting, they're relevant, and ultimately, they make this a better blog!

Barbara

We start this post in my cardiologist's office, and we'll finish in a financial aid office.

Earlier this year, after a number of routine tests, I sat in an exam room waiting for my doctor. It's a visit I make annually because of a congenital heart defect, and for the past 14 years I've left the office with instructions to maintain the status quo.

But not this year. Instead, I got a detailed explanation of a problem and the possible solutions.

Post minor breakdown, my next step was to research my situation as much as possible. I trolled the Internet for similar cases and discussed my previous surgeries with my parents. As I became more familiar with the medical terms (my favorite was "hypertrophy") , I started the list. Every question that popped into my head went on the list — even if it seemed stupid.

On my next visit to the doctor, I asked the professionals for the answers. I got the advice I needed, felt confident with the information, and was able to make my decision.

Advisors are amazing resources. But professional advice is even better when complimented by your own knowledge, whether you're shopping for a heart surgery or a student loan.

When you're looking to finance an education, it's important to listen to your financial aid officer. After all, they're the professionals. But you shouldn't stop there. Research your options — scholarships, loans, lenders — so you can make an informed decision.

Then you can compile your own list and go back to your financial aid office with any questions you have — even if they seem stupid.

As part of this blog community, you're off on the right foot. Here are a couple other online resources that can help you learn the fundamentals:

• Department of Education Student Aid Portal 

• FinAid! Guide to financial aid 

It's important to make informed choices. While we turn to professionals for advice, we still need to be knowledgeable because in the end, we're the ones who are impacted by our decisions.

Caroline

Do you think the ACT test  should be mandatory for all high school students?

Currently a few states do require that students take the ACT. Why? It serves as another way to assess students, and some probably see a side benefit that perhaps more kids will consider going on to college if they already have the ACT under their belt.

A recent editorial  in the Des Moines Register advocates for school districts in Des Moines to pay the ACT test fees for all students, but to further examine whether it should be made mandatory.

Personally, I'm not in favor of either. I don't understand why a school district should pay for the test, considering there's already an option to get the fee waived  for those with an economic need. For those who can afford to pay the fee, in my opinion, paying for the test and taking it on a Saturday outside the school setting, lends a certain weight and seriousness to the test that might be lost if it was free.

As far as making it mandatory — I think that approach could have the same effect. It takes the seriousness away if it becomes yet another standardized test, taken by everyone in the middle of a school day, whether they want to or not.

And really, the ACT measures college readiness. Not all kids take the college-prep route through high school. It doesn't seem fair to test them as though they have.

So what do you think? Should the ACT test be mandatory and/or free?

Barbara

Nothing makes a girl go crazy like a month without blogging (coupled with a month of "house arrest" for surgery recovery)! I'm glad to let Student LoanDown readers know I'm back and doing well. And I have lots of fresh thoughts for you. I've had plenty of time to think (and to watch way too much TV on DVD) .

I'm taking a couple days to get back in the swing of things, but expect to see some posts from me soon.

And thanks to all of you for the nice thoughts and positive energy you've sent my way!

Rachel

Last weekend I decided to extend my personal Friday cubical dance party into the weekend by volunteering at a local high school dance. It was so great to see students releasing their pent up energy into the rhythm of the night. Hands in the air, shouting the lyrics to every verse, laughing and showing off their moves — they were in their element.

People (rightfully) laugh at my "Ellen-esque"  dance parties at work. For me it takes the edge off the corporate work environment and releases a bit of my anxiety. As a student, I think these casual high school dances offer the same type of thing — a pressure release where you can go out with friends and dance off the stress of being in school.

In high school (and life in general) we spend a lot of time working on (and worrying about) our image and making sure we look good on paper. For high school students, it's SAT scores, grade point averages and the right combination of club memberships, student government experience and being on a varsity sports team. In "the real world," it's your job title, degrees of education, performance reviews, community involvement, hobbies and some type of luxury fluff like season tickets or country club memberships.

But we are so much more than just our MySpace profiles. As they say in Transformers , we are all "more than meets the eye." This is because our personalities can't be bottled and branded. We are individuals. We are human. We are interesting. We all have our own story to tell.

When you are writing your college entrance essays and interviewing for scholarships, remember to show who you really are, on and off paper. I once won a college scholarship over several of my classmates who were way more qualified (on paper) than I was. No joke, there was the valedictorian, the student body president, the volunteer wiz-kid, and me — the girl who scored a lousy 970 on her SATs. I was awarded the scholarship because I aced the interview by being myself. (BTW, if you are looking for scholarships, be sure you check out this online search engine  to help you.)

This is not to say the stuff on paper doesn't count — it definitely does. (I had to work hard to make up for my horrible SAT performance.) But equally important is your character and expressing the goodness that can't be communicated on paper.

Find your "ness"  and let it shine.

Caroline

College brings its own special kind of medical drama. And, no, I don't mean the Grey's Anatomy  kind.

I mean the kind where close living quarters, stress and lack of sleep cause you to come dragging home at the end of the semester coughing, tired, feverish and in need of some chicken soup and sometimes a trip to the doctor's office. I call it "finals flu."

Or where you sprain your ankle  playing pickup basketball with your buddies. Or need your wisdom teeth  removed over winter break.

If you end up in the doctor's office at any time during college, and you think you're covered under your parent's insurance — have them double check.

I just recently learned that our health insurance company likes to be reminded every semester that my stepdaughter is still a college student. I found this out after receiving a bill from an end-of-semester trip to urgent care — it seemed awfully high, and I wondered why no insurance payment had been applied.  Once I reminded them of her student status, they corrected the bill, and it was about half as much.

Parents, keep an eye on all your insurance coverage to make sure your student's status is up-to-date — especially since "finals flu" and wisdom teeth removal season is just around the corner.