I’m one of those people who make a list for everything. By the end of the week, I have a sizable collection of post-it notes in my purse ranging from new websites to check out to funny words or quotes I heard to stuff to buy. I’m also a doodler, a paper fanatic and obsessive about writing instruments. So it makes sense that I make lists, if not for any other reason but to put ink on paper, well, just because.

While I have a talent for making lists, just because, I also am a bit neurotic about maintaining a serious actionable to-do list at work and at home. I read a study somewhere that proved it is possible to get a rush of adrenaline when you cross something off a to-do list. Of course, the day I read this was the day I began adding things to my to-do list I had already done, just for the satisfaction of running my black Sharpie  through the middle of it.

It’s that time of year when I take my cue from the big guy in red  as I make my lists and check them twice before leaving the house to join the holiday crowds. It’s also time for many students to begin making their lists for the upcoming semester. Here are a few topics that may be on yours:

• Register for spring classes
• Look up scholarship deadlines
• Figure out how to apply for a Federal Loan
• Schedule a call with a loan expert
• Return library books
• Download exclusive music

As for my lists – today I ran into the kitchen waving our master holiday shopping list in the air at my husband as if it were a winning lottery ticket.

Holiday shopping? Check.
Adrenaline pumping? Check.
Celebrating good times? Check!

Sending you warm wishes for fun, safe and splendid holidays.

Editor’s note: Rachel and the rest of the Student LoanDown team will be on holiday hiatus until the new year. See you in 2008!

Posted by Rachel at 10:23 AM |  Permalink |  Comments (0)
Found in Federal loans, Financial aid, Financial education, Preparing, Remember, Student loans, Wells Fargo Bank

As always, just as you’re finishing up finals and easing into your winter break, somebody has to come along and remind you about your upcoming responsibilities: It’s almost time to file your Free Application for Federal Student Aid (FAFSA)!

Yes, applying for financial aid for next year is one thing you really should do before heading back to class for next semester. However, I do have some good news to share with you about Federal Stafford Loans for the 2008-2009 school year:

Lower interest rate: If you’re an undergraduate student and you take out a subsidized Federal Stafford Loan (where the government pays your interest while you’re in school, grace and deferment) for 2008-2009, your interest rate on new loans will be lower—down to a fixed rate of 6.00% beginning July 1, 2008. The interest rate on unsubsidized Federal Stafford Loans (and subsidized Federal Stafford Loans for graduate students) remains fixed at 6.80%.

Lower origination fee: For everyone who takes out a Federal Stafford Loan (either subsidized or unsubsidized) the origination fee will be lowered next year. Beginning July 1, 2008, the origination fee for new Federal Stafford Loans will be 1% (down from 1.5% currently).

If you have any questions while working on your financial aid application for next year, be sure to check in with your school’s financial aid office, or post a question here. We’re happy to help.

Posted by Caroline at 10:30 AM |  Permalink |  Comments (7)
Found in College, Federal loans, Financial aid, Financial education, Preparing, Wells Fargo Bank

Student LoanDown readers, I’m pleased to share another question and answer series with you from Ask the Expert:

I am starting graduate school in the Srping of 2008 and going full time. My intended graduation date is May, 2009. I applied for financial aid. I am awaiting my award package.

The maximum amount of federal stafford loans (subsidized and unsubsidized) for grad students is about $18,000 per academic year. So my question is, will I get $18,000 starting this spring (2007-2008 school year), and another $18,000 starting in the fall (2008-2009) school year? Or will I get screwed and only get half ($9,000) for the spring, and then like the whole amount for the next school year ($18,000) in the fall???

It is pretty important because I have to take summer classes also, so my average cost per academic year is about $23,000, which is more than the aid I will receive. So depending on the timing of their disbursements, upfront for each academic year, or they split it in half, makes a big difference to the kind of leverage I can have with that money and determine wether I can move out, have some breathing room, etc.

Hmmm, a bit of a quandary. What do you do when the cost of your graduate school education and the amount of financial aid don’t add up? Fortunately for this reader, the math had changed slightly:

Generally, school certified student loans are disbursed in multiple installments throughout the academic year—not just in one lump sum. So you should receive separate disbursements for the spring semester of 2008, the fall semester of 2008, and the spring semester of 2009. Check with your school's financial aid office to be sure. Your school also might have a special financial aid application process for summer classes, so I'd recommend you ask about that now.

The good news is that the maximum annual Federal Stafford Loan limit for graduate students has increased a bit—to $20,500. That will give you some breathing room!

There was also a change to the Federal PLUS Loan program last year that extended eligibility to graduate students. You can apply for this loan after you've applied for your Federal Stafford Loan if you still need additional funding. There's no annual maximum, so you can borrow up to the cost of education (tuition, rent, books, etc.) minus other financial aid you've received. This loan has a fixed interest rate and after the Federal Stafford Loan, it's one of the most affordable loan options available. If this loan isn't included in your award package, ask your financial aid office if it's an option for you.

One last bit of advice: Borrow only what you really need, because you have to pay it back—with interest.

Got a question for us? We’ve probably got an answer (or can find one), so don’t be shy!

Posted by Staci at 11:15 AM |  Permalink |  Comments (2)
Found in Back to school, College, Federal loans, Financial aid, Graduate school, Paying, Post-college, Student loans, Tuition, Wells Fargo Bank

Thank goodness for higher credit limits.

In late November an ominous alert light appeared on my dashboard—low coolant. After a trip to the service department, I had to participate in all the holiday gift-giving and get myself some Christmas presents—a new water pump and several new gaskets for my Alero . I was very generous to myself, to the tune of $900!

I could’ve been in a real bind. At the time I didn’t have a lot of cash available, and in the previous months I’d taken on a bit more credit card debt—inching toward my credit limit.

Luckily, my credit limit had just been increased on my Wells Fargo Visa®, and I was able to charge the new parts and service expenses. Unfortunately, I’m now faced with more debt to pay off. Boo.

The funny thing about the situation is that when my notice of a credit increase arrived, I was thinking about indulging in a bit of a shopping spree—some new work clothes, etc. Boy, am I glad I didn’t give in to those thoughts. If I had, putting more charges on my card for the car repair would’ve stung even worse.

I’m wondering: how do you keep yourself from using your credit for things you want instead of reserving it for emergencies? Is there a strategy or is it sheer will power?

I’d love to know what helps you. Because with the cold weather in South Dakota right now I’m having a hard time resisting some new comfy, warm trousers  for my long walk into work.

Posted by Barbara at 02:34 PM |  Permalink |  Comments (4)
Found in Credit, Wells Fargo Bank

Today, there's no beating around the bush. I'm just going to put it all out there.

I accrued a finance charge.

And I am ashamed.

You see, I pay off my credit card balance in full every month. I never carry a balance. It's even a running joke between me and my best friend Charlie.

But this month, I received my credit card statement in Online Banking and was aghast to see in BIG BOLD TYPE a finance charge of $4.83. How could this have happened?

Turns out I'd had a case of keyboard dyslexia when I made my payment online. I'd entered a two where I should have entered a five. And because this particular bill was substantial (like Dave, I also like to use my credit card to get reward points, and I'd made a couple of big purchases during the last billing cycle), that three-dollar error cost me almost five bucks in finance charges.

Fortunately, you're not required to pay off your balance in full every month—that's just something I do—so the only thing damaged was my pride. But the experience did get me thinking about what those finance charges could've been if I'd made a $30 error or a $300 error—or just made the minimum payment.

So tell me: Are finance charges a necessary evil, or do you go out of your way to avoid them, like I do?

Posted by Staci at 10:05 AM |  Permalink |  Comments (0)
Found in Credit cards, Paying, Wells Fargo Bank

Right now, student loan consolidation may be on the minds of many student loan borrowers. If you graduated in May, your loans are probably coming out of their grace period right about now. Some of you may already have made your first payment.

I received an email question recently about consolidation—specifically, if borrowers would be better off waiting to consolidate their loans—and I wanted to share my response with all the Student LoanDown readers. The short answer is: It depends.

If you’re just entering repayment on your student loans, it’s likely some of the loans are variable-rate federal loans. The rate of these loans is adjusted annually each July 1  based on the 91-day T-bill rate. If you’re a borrower with these loans, it’s possible your rate may go down in July.

Remember, the rate on a consolidation loan is based on the weighted average of your current interest rates rounded up to the nearest one-eighth of a percent. Lower interest rates on variable loans could mean a lower consolidation loan interest rate.

So, should you wait?

There are a number of reasons you may decide to consolidate your loans, and many variables play into whether consolidation is the right choice. It depends on what you’re hoping to accomplish by consolidating:

• If you’re looking to reduce your monthly payment by consolidating, chances are your monthly payments might be more than you can handle. If that’s the case, you would likely benefit more from an immediate ease on your monthly cash flow. Otherwise you’d still have to make those higher payments each month until the July rate change.
• If you want to lock in your rate by consolidating—which is more of a factor for those with a large amount of variable rate loans—it could be beneficial to wait until July. Right now variable interest rate Federal Stafford Loans are at 7.22% during repayment. It is possible that next July variable interest rate loans might be lower, but there is no guarantee. There’s always the chance that the rate might not decrease.

For some borrowers, consolidation may not be the right option at all:

• Depending on your interest rate and loan balance, it might not make sense to consolidate. For example, if you have a large amount of debt at one interest rate and a smaller portion of debt at a higher rate, it might not be the best choice to combine those debts. You could be paying a higher interest rate in the long run on a portion of the balance that originally had a lower rate.
• Another option to consider in lieu of consolidation is an extended repayment plan. This option is generally available if you have more than $30,000 in student debt through the Federal Family Education Loan Program (FFELP) . With extended repayment, your monthly payment would decrease without having to take out a new loan.

So that’s the skinny on waiting to consolidate. Any questions?

Posted by Barbara at 10:02 AM |  Permalink |  Comments (8)
Found in College, Consolidation, Debt, Federal loans, Paying, Post-college, Student loans, Wells Fargo Bank

The other day, I overheard my 7-year old son telling my 9-year old daughter that he's learned that money is useless. His reasoning? "Even though I have money, mommy won't let me buy Pokemon  cards at the store!"

Hmmm. That's not exactly the lesson we were trying to impart.

So, my question to all of you out there is, how did you learn about money management? Was it from your parents, a friend, or a class? Was there something someone told you that stuck with you, or did you learn by trial and error? I'm all ears (or eyes) - obviously, I could use a little help with this!

Posted by David at 11:08 AM |  Permalink |  Comments (2)
Found in Money management, Wells Fargo Bank

Now that we are fully into the holiday shopping season, I have to admit, I'm feeling kind of ignorant about how college students treat Christmas shopping these days. My college junior stepdaughter is not a big shopper in general, and limits her Christmas shopping to just a few affordable gifts for family. And I don't remember buying people much of anything when I was in college.

However, as I wander the mall these days trying to wrap up my own shopping, I see one big temptation that's probably even bigger for college students: the store credit card.

I actually promoted these when I was in college. I worked for JC Penney  and we got reimbursed for every application we turned in. It was a nice way for me to take home some extra cash, so I definitely encouraged any and every customer to apply.

But these days, it's not just the big department stores that offer credit cards — almost every single store pushes them. And some of their offers are pretty tempting. They quickly tell you exactly how much you can save today just by signing up, and go on about their valuable rewards programs. It always sounds like a great deal, and it can be hard to say "no."

Admittedly, I sometimes have a problem refusing these offers when I'm making a big purchase, or when it's being made by a store I visit frequently .

As a college student, however, it's not a good idea to start opening up a bunch of new credit cards — even if you can save $20 here and there. Even if you promise yourself you'll cut it up as soon as it arrives. Some people have the discipline not to use these cards or to cancel them right away — you don't want to find out the hard way which type of person you are.

Even if you don't use the card, having too many open lines of credit can hurt your credit score  since it's an open door for you to quickly get into debt. And if you don't have a proven credit history, this looks dubious to potential creditors. Also, having a number of open lines of credit leaves you increasingly vulnerable to fraud and identity theft — especially if they are accounts you don't pay much attention to.

Your best bet is to stick to just one credit card while you're still building your credit history, and find another way to save during the holiday season.

Posted by Caroline at 11:54 AM |  Permalink |  Comments (0)
Found in Credit, Credit cards, Credit history, Credit score, Financial education, Fraud, Identity theft, Looking back, Money management, Wells Fargo Bank