August 2009 Archives

Caroline

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Yeah, yeah, your bags, boxes and laundry baskets are packed. You've got all the goods for college : a couch, TV, dorm fridge, new towels, laptop. What else could you possibly need?

There are a few more things to bring to college with you, but don't worry, they won't take up any more room in your parents' already loaded-down minivan! This is a more non-traditional packing list, but vital stuff to have with you as you embark on your new adventure:

1. An open mind. You're going to meet all kinds of people and study all kinds of subjects in college. Be ready and willing to listen to new people and new ideas.
2. Consideration for others. This is especially important if you've never had to share your room, your clothes or your car. Remember that your roommate  may not appreciate your taste in music or housekeeping habits. Try to respect that and come to an agreement.
3. Curiosity. A healthy curiosity about life will take you far in college. Pay attention, ask questions and get involved. You'll be amazed at what you learn when you actively look for the opportunity.
4. The ability to speak up. You'll have to be your own advocate in college, so if you're not used to speaking up, now's the time to start practicing. If your roommate didn't remember to bring #2 on this list, you'll probably have to say something. If your professor grades  on class participation, you'll have to be ready to jump in the discussion. If you're struggling with a class, or need some academic advice, your advisor isn't going to come looking for you — you'll have to speak up.
5. A sense of responsibility. Going to class, managing your money, doing your laundry  — it's up to you now. As you head off to school, know that it's your job to tackle it.

For those of you already in college, anything else the freshmen need to pack?

Barbara

Summer is dwindling, my friends, but I managed to sneak a summer vacation in under the wire. Ohio and Indiana, where I visited friends and family, were my destinations earlier this month..

The little vacation was full of fun new experiences at sprawling museums , quaint caverns , and in my first vacation car rental! Admittedly, I was probably most excited about the car.

Remember how the cost of my insurance dropped when I turned 25? Once I crossed that mark, insurance companies deemed me a less risky driver.

The same age barrier generally applies to car rentals. If you're under 25, you usually incur a surcharge in addition to the daily rental fee. There are even some companies that won't allow renters under 25 years old.

If you're thinking about renting a car and may be dealing with a surcharge, it's important to look for ways to save in other areas of your rental. Let's face it: Even if you're not dealing with a surcharge, everyone is looking for a bargain these days, right?

Here are some money lessons learned from my first official car rental:

• Research, plan and book in advance. With multiple companies offering car rental service, you should always comparison shop. Search online to price your vehicle options. If you are able to book in advance, do so to make your life a bit easier when you get to your destination.
• Decide what's really important. Several days before my flight I altered my car rental reservation. Initially, a GPS  sounded really appealing. But after careful consideration and multiple search and prints from MapQuest, I chose to go without. Saving on that cost made the upgrade to a vehicle with cruise control less painful – could you imagine six hours on the Interstate 70  without cruise control? No, thank you.
• Find any possible discounts. Dig around for online coupon codes and possible discounts before you rent. By checking some discounts available through work, I managed to get a 15% discount on my rental. And you know I love a good discount.
• Skip the coverage if you can. Before renting, double check your insurance policy and find out if you're covered in a rented vehicle. If you are, consider forgoing the coverage offered by the rental company. Be sure you understand how your coverage differs from the coverage offered by the rental company before you opt out of additional coverage.
• Fill it up. Make sure you have time to replenish your rental's gasoline before you return the vehicle. Otherwise, you'll pay a premium price for the rental company to refill the emptied tank. And I say make sure you have time because sometimes you miss the exit to the airport, are forced to take a long detour to get back, and then can't find a gas station anywhere near the airport. It could happen. I'm just sayin'.

Does anyone have a car rental experience or advice to share?

Delenie

Well, my summer internship at Wells Fargo has come to an end, and I'm headed back to college. With graduation just a year away, I am putting on my entrepreneur cap and creating a plan B just in case my bachelor's degree isn't enough to get me where I want to be given the current economic environment.

Last semester, I took a class in urban land economics.  To my surprise, I developed an interest in Real Estate. Even though the housing market isn't doing so well right now, I am looking ahead to its future recovery and preparing for it by studying for my salesperson license.  I mean, things have to get better eventually!

Meanwhile, my friend who just recently graduated is preparing for her CFA exam  to be a Chartered Financial Analyst.  Although this sounds strenuous on a summer afternoon, it really isn't so terrible when we motivate each other and meet at cafes for short study sessions.

Plus, summer is really the best time to try new things!

Another one of my friends is working hard creating a marketing plan for his company, 1-800-TAXI-USA , which he founded a few years back. Now he's getting partnership offers across the nation!Or, if you have an interest in medicine, you could consider getting certified as an Emergency Medical Technician (EMT).  My friend got certified in just two weeks and is now taking full advantage of working at concerts. Getting to watch your favorite artists perform live (for free) while also being at the ready to save a life? Amazing!

These are all great ways to get ahead. I figured that even if I never end up using my Real Estate license, it's still practical knowledge to have — especially when I'm ready to buy a house!

In the meantime, let us know what sorts of things you envision when you put on your own entrepreneur cap. And remember: With some motivation and entrepreneurial spirit, you might just find a new and rewarding career!

Editor's note: Delenie has departed for her senior year at UC Berkeley. We thank her for the many conversations she has generated over the past three months, and we'll be stepping in to answer any questions for her going forward. Good luck, Delenie!

Delenie

School's starting too soon! In just a matter of days, I will be going to class and living at my sorority house  again.

Unlike most of my friends who are apartment hunting, I luckily have things figured out: As one of sixty girls living in the house, I receive my living expenses as a package, much like you do in the dorms.

The deal with sororities  is that you have to pay a semester membership fee, along with rent and utility expenses that do not vary over the course of the semester, which makes life way easier. It might seem like a lot of money to shell out at once. But don't let that be the only reason that holds you back from deciding whether or not to rush and join one. 

What are some of the perks of Greek life?

• Since sorority houses generally have "house moms" that cook gourmet meals everyday, you will not have to worry about starving. J In some cases, having meals provided for you can save you time and money (if you're like me and eat out all the time because there just isn't enough time to cook).
• A sorority could enhance your social life since you are always mingling with other groups and invited to Greek events. This could be helpful if you are a freshman — it might seem less intimidating to live with a group of girls and develop a solid foundation when you're on your own for the first time.
• Being part of a sorority could provide job connections and networking opportunities in the future, just like Elle Woods found  with Congresswoman Libby Hauser. (Yes, I know this is fictional!)

Some of my friends think living in a sorority is a big expense when you can live in an apartment for much cheaper, but I think sometimes the experience outweighs the expense.

How do you feel about Greek life? Share your thoughts with us!

Caroline

The start of college is just around the corner, and for you freshmen, it will be a time of new beginnings — you'll have a lot of new freedoms and new responsibilities. It can be exhilarating, but a lot to take in all at once.

I got a lot of good advice when I started college, and I thought I'd share some of it with you, to help you get off on the right foot:

1. Go to class. This may seem basic, and you may be planning on it right now, but once you get to college, you'll find that a lot of people do skip class , especially the early morning sessions! Don't give in to the temptation. Even though no one is around to make you answer that alarm clock, get in the habit of always attending class. It will make a big difference in your grades. In my opinion, it's even more important to attend class than to do the required reading. (Obviously you should do both, but I'm just saying!) Plus, you are paying for these classes — get your money's worth!


2. Study between classes. Once you start college, you'll probably be surprised at how much free time you have during the day. You're used to being in school seven hours a day, but in college you may only have three classes on any given day. That leaves lots of hours in between. Resist the temptation to head back to your dorm room and watch soaps between classes. If you don't have an on-campus job to occupy your time between classes, then stick around and head to the library. Review your notes, catch up on reading (you'll have a LOT of reading to do in college), or finish any assignments you might have. If you get in the habit of staying on campus and studying during the day, you'll find that you have a lot more free time in the evenings.


3. Stay on the weekends. It can be tempting, especially in the first few months of college, to pack up and head back home on the weekends. After a long week of the unfamiliar — finding your way around campus, trying to get a handle on your classes — many students prefer to spend weekends in their comfort zone, around old friends and family, in familiar surroundings. Resist the urge, especially at first, even if you find yourself at loose ends on the occasional Friday night. If you stick around on the weekends, you'll find that most other freshman are also looking for friends  and trying to figure out college life. You'll quickly start making more friends and finding things to do. It will be important to your happiness and your ultimate success in college to have a strong network of friends and a fun social life at school, as well as back home.


4. Be careful with your money! College may be the first time you've been in charge of your own money, so now is the time to start some good habits. Figure out the best way to keep track of your checking and savings account balances. Managing your accounts online may be the easiest way. Save your receipts so you can keep track of your spending, and compare it against your online transactions. Start working on a budget from the get-go.


5. Be cautious about credit cards. You'll be inundated with offers at college. Get just one credit card and don't charge any more than you can afford to pay off each month to avoid additional interest charges.

For those of you who have survived your first year of college, do you have any tips to share with the incoming freshmen?

Delenie

A few weeks ago, Caroline asked, "Will you work during college?"

I wanted to share some of my thoughts on this topic with you soon-to-be college freshmen.  Since you're new to the college scene and may be looking for a job to fund your expenses, my suggestion is to find a low-key, on-campus job so that you still have time to explore, transition smoothly, and have fun!

During my freshman year, I worked for UC Berkeley's Call Center , where I fundraised for departments and programs on campus. I know it sounds very telemarketing-ish, but you'd be surprised! The alumni were generally easy to talk to and were even fun to network with. Over the course of the job, I was able to make some valuable contacts while getting commission. Plus, having this experience on your resume shows potential employers that you are a good communicator.

With school about to start, campus job postings should be plentiful. Good places to look for part-time jobs  are your school's web site and career center. On my campus, library jobs seem to be in great demand. I hear they're flexible and come with plenty of perks, like downtime to get reading done. How amazing does that sound? Getting paid for doing your own homework!

If you have a passion for journalism, you can write for your school's newspaper (like Barbara did), or if you're into tutoring and mentoring, there are usually plenty of those jobs to choose from (Staci was a tutor in her college's writing center).

My final bit of advice: Don't become a workaholic and forget to live your college life! There's plenty of time to build your resume and work with amazing people. In the meantime, focus on surviving your first year of college. 

Caroline

If you're starting grad school  this fall, you probably have a million things on your mind, but I'm guessing health insurance isn't one of them — that is, unless you're studying public policy and have been following the health care reform debate  in Washington!

If you've been covered under your parents' health insurance policy while you were an undergrad, be sure to have them send in the proper paperwork to ensure that you're still covered this fall.

My stepdaughter is starting graduate school in a few weeks, and my health insurance company needs a fall transcript to keep her on our policy. You definitely don't want that to lapse!

As I mentioned in an earlier post, most insurance companies like to be reminded every semester that you're still in school. I'll be sending in transcripts every August and January for the next couple years — so remind your parents to do the same.

Barbara

Lately, we've been getting a lot of questions about student loan cosigners — more specifically, how to get a private student loan without one. Unfortunately, this is one question where we don't have the answer most borrowers want to hear.

That's because generally, you're going to need a cosigner.

Here's the thing: Before lenders loan you a large amount of unsecured debt for your education, which usually won’t have required payments for several years, they're going to want to verify you meet certain credit requirements. It's reassurance that you'll have the means to give them their money back.

As a young person, you haven't had much time to establish a stellar credit history — which brings us to the cosigner. When you bring on a qualified cosigner who assumes equal liability for the loan, the lender gets someone who meets the needed credit requirements and provides the reassurance that the loan will be repaid.

A cosigner doesn't have to be a parent. In fact, by law lenders can't tell you who should cosign your loan. It could be a relative, a family friend, or just someone who's willing to make that financial commitment.

Now, it's no simple task to convince someone to put their credit on the line for you. So let's talk about having a conversation with your potential cosigner. What would you say to reassure them that you're worth the investment?

Here are some potential conversation topics to get you started:

• "I'm first using no- or low-cost options to pay for college."
  Show your cosigner that you're a responsible borrower. Tell them about scholarship and grant opportunities you've been given and that you're borrowing federal student loans before turning to private student loans to fill your funding gap.


• "I've chosen a college that's affordable given the financial aid I've received."
  Assure them that you're not over borrowing and attending a school that's out of your price range. If you can't make this statement, perhaps you should reevaluate your school choice so you're not taking on too much student loan debt to attend college.


• "I'll be able to afford my payments based on what I'll be making after graduation."
  It's important that your cosigner knows you'll be able to repay the loan. Because if you fail to make payments, it's not just your credit you're hurting, but the credit of your cosigner as well. Plus, your cosigner will be on the line for any payment you don't make. Tell them your estimated income after graduation and what your estimated monthly payments will be. Ideally, your student loan payments shouldn’t exceed 10% of your starting salary.


• "I'm already financially responsible with other accounts."
  Have a checking account or credit card? Tell your cosigner about how you balance your checkbook and avoid overdrafts or pay off your credit card each month to show that you're already financially responsible.


• "I'll stay in touch with you and my lender throughout the life of the loan."
  Your cosigner will want to know what's going on with the loan until it's paid off and no longer their liability. Assure them that you'll keep them (and your lender) updated on your situation so if anything happens you can find a solution together.

What else do you think could ease a potential cosigner's mind?