March 2008 Archives

Barbara

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Just like many U.S. students choose to spend time studying abroad, many international students choose to study in the United States. Here are two great resources for students considering traveling to the U.S. to further their education:

• educationUSA — advising centers from the U.S. Department of State

• eduPASS — a guide to studying in the U.S. including travel and customs

I recently answered an Ask the Expert question about student loan availability for international students. I wanted to share that information with the rest of the Student LownDown readers. Here's the scoop…

International or not, students should always apply for federal aid first. However, most foreign citizens aren't eligible for student aid from the U.S. federal government. There are some cases where non-citizens may be eligible for financial aid. Students should check out this online guide to federal student aid for international students to see if they qualify.

After federal aid, international students could consider private student loans. Many lenders will ask that international students who apply have a cosigner who is a U.S. citizen. Cosigners assume equal liability for the loan, so this is not a responsibility to be taken lightly.

For our international student readers, what has been your experience with American financial aid? How does the process work in your own countries?

Staci

Editor's note: Peter Kim is our first official guest author on the Student LoanDown blog. A graduate of the University of California at Riverside, Peter is a Client Relationship Officer with Wells Fargo International Personal Banking. He enjoys telling people that the word "eater" is in his name! (SS)

You've probably seen it: the Southwest Airlines commercial  with two young men enthusiastically playing a baseball video game. The batter raises his controller, getting ready to swing and then…CRASH! His friend hurls his controller into the really expensive looking flatscreen television, which falls off the wall and shatters the glass entertainment center.

"Ding! Want to get away?"

That ad makes me think about the last time I actually had a chance to "get away." I was in my last year of college, and my school had what they called the UC Education Abroad Program  — an opportunity for students to attend strong academic programs at over 150 universities in nearly 50 countries such as Barbados, Brazil, Chile, Costa Rica, and South Africa. Pretty cool, right?

Unfortunately, even though I wrote a great five-page thesis on why I was worthy of the program, I missed the application deadline — and my opportunity "got away."

However, my really smart friend Jane did not miss the deadline and traveled for six months to Korea  (our homeland by blood) to study. I was so jealous of her experience — all the beautiful places she visited, the different types of mouth watering foods she got to eat, and blah blah blah.

But one aspect of her trip that proved challenging for her was managing her finances. At one point she lost her ATM card, went through a dramatic ordeal trying to get a new one, ran low on cash, and had to do jumping jacks just to get money from the US.

Has that ever happened to you? If so, or if you're planning a trip soon and would like to guard against that sort of hardship, you might want to think about an International Personal Banking (IPB) program. It's designed exclusively to handle the financial needs of our international clients, including students!

IPBs offer virtually all of the same consumer products as the retail branch — such as checking, savings and time deposits, with dedicated, multi-lingual Relationship Consultants (like me) to help you with any issues in regards to your bank accounts. IPBs even allow you to send wire transfers without actually having to go into a bank!

What's all that mean? Well, my friend Jane could have managed her funds from her Wells Fargo account as she needed them and had me rush an ATM card to her wherever she was in Korea!

Have you ever experienced anything like Jane while traveling? Share some of your crazy travel stories with us!

I'll get you started with some famous advice from Susan Heller: "When preparing to travel, lay out all your clothes and all your money. Then take half the clothes and twice the money."

Barbara

When it comes to my finances, every cent is accounted for somewhere in my budget. Usually, I cut it pretty close due to my savings goals, some debts and my choice to spend more on housing.

In general, I run a pretty tight ship financially speaking. However, lately (and forgive me for going all Titanic  on you) I've hit some financial icebergs. And slowly, my checking account balance has depleted while my credit card balance has grown.

To put it frankly, my budget is sinking.

The change stems from my recent medical expenses. Starting to pay off my account balances with the doctors and hospitals means less to spend (or save) elsewhere. For three months now I've been throwing $100 toward the balance. And it's beginning to wear on me.

But I can't complain too much on this one. My health insurance is amazing, so it's not a huge burden. I'm paying just over $1,000 for a major medical expense that totaled around $115,000, which is downright awesome.

Still, it's amazing how an additional $100 out of my pocket can skew my finances each month. Celine Dion  should be playing in the background when I check my account balances these days!

Perhaps my budget is a little too tight. To remedy the situation, I'm looking for ways to cut back and control truly unnecessary spending. Some spending (wants not needs) will have to wait until that $100 each month is back in my pocket.

What kinds of financial icebergs have you encountered? And how do you stay afloat when you hit one?

P.S. No matter how hopeless, I'll never let go! 

Staci

I'm very intrigued by the concept of Alternative Spring Break , which encourages young adults (18- to 24-year-olds) to engage in meaningful volunteer service instead of heading for the beach to party.

Generally the programs run in late February and throughout the month of March. College students from all across the country are doing everything from rebuilding homes in the hurricane-ravaged Gulf Coast to improving child-care centers in snowy Detroit. Very cool stuff.

Alternative breaks aren't just for spring, too — many schools participate in programs that offer longer programs over the summer and all over the world, from Latin American countries to Indian Reservations in my South Dakota backyard .

Keep in mind that participation in most of these programs isn't free — you still have to find transportation to get there and pay for meals and lodging while you volunteer.

So why pay to work when you could be on the beach? Well, I'm guessing that the connections you make with people and the impact you have on deserving communities are better than a suntan and a hangover any day.

Anyone participating in Alternative Spring Break this year? Or if you've done it before, tell us about your experience!

Barbara

We've talked before about what to do once you've completed the FAFSA. Have your received your award packages (the next step) from your colleges yet?

If so, I bet many of your schools gave you a chance for some "free money" — that is, money you don't have to repay after you leave school, like grants and scholarships. Or you may have found the chance to earn some funds for school through the Federal Work-Study program .

Out of curiosity, I checked the possibilities  at my alma mater . Lots of options for many different interests! Have you thought about what type of work you may be interested in?

While I myself did not have a work-study position while in college, several of my friends (a lot of English majors) had jobs at USD's Writing Center . They were able to find a work-study position that was applicable to their major. (Our own Ms. Schiller scored a similar job during her collegiate years.)

For those of you who’ve already completed work-study jobs, where did you work?

Staci

Check out this latest question we received through our Ask the Expert tool from Lynette, a concerned mother:

My daughter just received an application for a Stafford loan and they told her she would need to find the financial institution number and find her own lender. How do we go about that? She banks with Wells Fargo and would like to do the student loan with you.

A question like Lynette's is becoming more common these days. Many college and university Financial Aid Offices have moved away from recommending specific lenders, so often students and parents need to do the research on their own.

Once you've completed your FAFSA  (Free Application for Federal Student Aid) and decided on a lender, the actual application process can seem daunting — but it doesn't need to be. A good place to start is this step-by-step guide that outlines exactly what you need to do to choose Wells Fargo as your Federal Stafford Loan lender and begin the application process.

Here are the basics:

1. Let your school know that you want Wells Fargo to be your lender. You'll probably be asked to provide a lender code. Wells Fargo's lender code is 807176 (in all states except Utah, where our lender code is 813894).

2. Ask your school's Financial Aid Office if they have a preferred application process (some schools do).

3. Most likely, your school will tell you to apply online for a Wells Fargo loan.

4. If at any point in the process you need help, call our student loan center at 1-800-658-3567.

It's really pretty simple — and we're here for questions along the way!

BTW, whenever I see the Wells Fargo lender code, the classic 80s song "867-5309/Jenny"  by Tommy Tutone immediately pops into my head. Can't you hear it? "Eight-oh-seven-one-seven-siiiiiiix…"

Barbara

I have a shameful story to share. It's shameful because I pride myself on being financially responsible...and passing on tips of financial responsibility to you readers.

About a month ago, while standing at the Younkers  counter about to purchase some new dress shoes  (on clearance, of course), I noticed an important piece of plastic was missing from my wallet. My debit card was nowhere to be found! I sifted through all my "frequent patron" cards and each pocket, but the card wasn't there. So, I handed an alternate method of payment to the cashier (who was quite patient with me given the circumstances) and started to freak out a little.

I retraced my steps and realized the last time I'd used my debit card was to purchase petrol  and a car wash several days earlier.

The steps went like this: Grabbed the card, swiped it, and started pumping the gas. Car wash? Pressed yes. Hopped in the car and set my card on the passenger seat (first mistake). Drove to the car wash entry and entered my code. Looked at the card on the passenger seat and thought "I should put that away before I lose it." (Famous last words.) This is when my memory trail went cold. Did I follow through? I couldn't recall.

So the next day, after searching my car, house, and person up and down to no avail, I relented and called to cancel my card and request a new one.

Even though I'm full of shame, I still have three quick tips related to my situation (please don't take them with a grain of salt!):

• Keep a handy list of contact information for all your financial service providers

• Know how to protect yourself  if your card is lost or stolen

• Take precautions to avoid identity theft

Since I had performed such a thorough search for the lost card, I was sure I could've been susceptible to identity theft. I imagined my poor card lying in the middle of the road, just waiting to be snatched up.

Turns out I had no reason to worry: Just last week I found my old debit card in a pair of pants I rarely wear. Fantastic. My card really needed a stunt double!

Anyone out there have a shameful story of your own that turned out better or worse than mine?

Barbara

I saw my dream car  on the way to work today. While idling at a red light about 6 blocks from work, my eye drifted over to the car on my right. And there she was...Galaxy Gray Metallic with an Ivory interior and the "hybrid" stamp on the trunk. Ahhhhh.

I heart that car...a lot.

But lately, as the 2008 Diet Coke Savings Plan (part of my down payment savings) slowly progresses forward and my Alero keeps on truckin', I've been taking a closer look at my options.

There are quite a few things to consider when searching for a new or new-to-you car. I recently came across a fantastic tip sheet from our friends in the Wells Fargo Personal Credit Management group — they specialize in vehicle lending. This resource really got me thinking about my auto search and financing.

Pretty early into my search, I settled on a hybrid. The idea of going green , plus some tax credits  for doing it, really appealed to me. However, that means paying more upfront.

And if I want to reap those tax benefits on the specific model I've chosen, I have to buy before the end of the year. But that's probably not realistic given the amount I want to save for a down payment, so I've got some thinking to do.

Could I finance a little more with a smaller down payment? Should I give up the tax break? Would it be better to wait and buy used? Should I rethink my hybrid mentality? And the list goes on...

The wheels are turning (ridiculous pun, sadly, intended).

So I decided to follow tip #6. Get the opinion of an objective friend (or more than one). What do you guys think?

Staci

The Student LoanDown lost one of its own this past weekend. Our blog designer and friend, the fabulously talented Vincent Lau, passed away on Saturday.

To put it plainly, we're devastated.

I'm usually overflowing with words, but these days I'm having a tough time putting my thoughts together. So I'd like to share with you the following tribute to Vincent, written by my colleague, Ed Terpening:

I remember the first time I met Vincent, when he interviewed for a position on my team. He smiled the whole time! I thought...is he nervous? Does he know something I don't? Is he really THIS genuinely happy?

More than a year later in the job, I can tell you that sunny guy was Vincent — which makes his sudden passing this last weekend at just 31 years old all the more difficult for us at Wells Fargo.

As a reader of this blog, you may not think you know Vincent, but you do. Look at this page — everything but the words are his: the quirky, crowded student desktop and clear navigation. What you see on this blog is the tip of the iceberg, as he contributed in many creative ways that you never saw.

Speaking of desktops, his own messy desk says a lot about him. He was a social "foodie," always bringing in the strangest treats, from Tokyo to Texas. I recall asking him to tidy his work area a bit, but it just wasn't him. Rather than take the time to do that, he'd ask a friend how their game went over the weekend, or help solve a technical problem that he could have easily passed on to someone else.

That was Vincent in a nutshell: people, food, and enjoying life were #1 — cleaning his desk could wait. Well, I've come around. My desk is far too neat. He was a guy who had the right priorities.

Our thoughts are now with Vincent's family in Sugarland, Texas. I want them to know how much he meant to all of us. Of course he was more than just our designer and coworker, he was our friend. Already I miss his mischievous laugh, his wicked cool fashion sense, and his passion for just about everything. I miss his attempts at mocking my Midwestern accent — oh, you betcha! I miss his wacky Facebook messages and his emails filled with exclamation points. I miss fighting him for the last almond chocolate chip cookie. Even if he won, he'd always share.

Goodbye, Vincent — and be at peace.

Rachel

I recently came down with the cold/flu bug that everyone seems to be sharing this month. While glued to my couch with my "supplies" (Odwalla , applesauce , Emergen-C , biscuits  and soup ), I watched an unhealthy amount of television &mdash including every episode of the incredibly lame addictive new Bravo show Millionaire Matchmaker . The main dame, Patti, is really passionate about her business and is pretty straight-up with her approach to matchmaking.

What got me thinking were these love-challenged millionaires. What are they doing to make their millions? What are they doing to be financially successful? But clearly that's not what the show is about.

As for the rest of us "common folk" and millionaire wannabes, I myself have been trying to be a little more disciplined about saving money lately. Wells Fargo tells me the easiest way is to make it automatic. So I did. Check out My Savings Plan. (Not mine, but how to set up yours.)

What you do is create an automatic transfer from your checking to your savings every month. Or, separate from My Savings Plan, if you have direct deposit, you can divvy up your paycheck to have some go into checking and some going into savings, automatically. Money you don't see in your checking account is money you won't spend, right?

On that note, if you are really into tricking yourself with the whole out of sight, out of mind bit, you can alter the look of your online banking accounts. If you click on the "Account Services" tab, then select "Remove Accounts" (under "Account Information"), you can actually hide your savings account from yourself. You are not cancelling your account &mdash simply removing it from your view. (And you can always add it back just as easy.) This way, you know how much you are saving in your head and on your monthly statements, but it's not staring you in the face with every online session taunting you: I'm liquid savings and can easily be yanked out to buy an iPhone  .

Yes — automatic savings gets a bravo in my book!