July 2010 Archives

This summer I've seen a couple kinds of fish — the ones at the lake nibbling my toes as I swim, and the phish that have arrived in my inbox and through my cell phone. Neither is fun, but the latter can be really damaging to your identity.

Phishing is something you may already be familiar with. (No, I don't mean these guys. ) Chances are you get a fair share of spam email, but phish emails ask you to reveal personal information. They're sometimes under the guise of your financial institution or an online retailer where you've used a credit card.

I got a text message (sometimes called smishing ) asking me to verify my PIN at a bank in my college town (my cell phone number is still from there). While I don't have an account there and realized something fishy was going on, phishers count on hitting a certain number of people who do and might fall for their scam.

So how do you protect yourself? First off, always be leery of any communication asking for your personal information. And check out this information from Wells Fargo. You can see examples of phish and learn how to report it. If you're looking for more information on protecting your identity, head over to the Fraud Information Center.

Have you ever been "hooked" by phishing?

After you graduate, the only money you'll probably be thinking about when it comes to your school are the monthly student loan payments you're making.

But it won't be long before you get the call: An earnest, cheerful student from your school will phone and start chatting you up about your alma mater. Why? They want you to make a donation to your school.

As a recent grad, you might react to these calls like I did — something along the lines of, "Are you kidding me? I'm still paying off my tuition and I'm eating mac-n-cheese for dinner pretty regularly. Give you more money? Ahh, no thanks!"

Or, you might feel nervous, cornered, and guilty, so you quickly offer to give five bucks just to get off the phone.

Neither of these is the best reaction, for you or your school. So let's break it down and figure out how you want to handle these inevitable calls. I have a friend who works in the development office for a private college, and she let me in on some good info...

It's July. Do you know where your college money is coming from?

If you didn't answer "yes," it's time to get a handle on how you're paying your tuition bill this fall. The first few days of college are hectic enough without worrying about filling out loan applications and other financial aid paperwork.

If you're feeling a little fuzzy whether all your costs are covered, pull together all your paperwork and take a look. This would include your school's award letter and any additional scholarship awards you may have received. Also, check the paperwork you got at orientation or your school's financial aid office website. You may find some helpful guides to walk you through your to-do list.

Just so you know what to look for, here are the three areas you should have covered:

Got any questions about paying for college? Ask us!

When Caroline posted about her college roommate experience, I'll admit that I groaned just a little bit. You see, I did not end up with a best friend from the random roommate selection. In fact, my experience was fairly negative.

There were opposite schedules and clashing personalities — overall a bad mix. But here's my point in posting a rebuttal of sorts to Caroline's perspective: If your roommate isn't destined to be your BFF, but rather your nemesis, consider what could make your situation better.

Here are some options to think about:

• Talk it out. Sometimes, the issues you may be facing could be solved with a quick roommate meeting to set up a schedule or talk through your concerns. Always try to work through things out directly as a first step.
• Get involved. A few weeks into my first semester, I was very thankful for my involvement at the student newspaper, which kept me fairly busy outside of my dorm room. An activity that keeps you busy in your spare time could be just what you need to make it through a less than desirable roommate situation.
• Find "your place" on campus. Maybe your studying happens at the library instead of in your dorm room. Or hanging out with friends is something you do in their room or at the student union. For me, I found a haven in my sorority house — it was a great way to escape and get to know folks at the same time.
• Know when enough is enough. Sometimes you can work out roommate issues, but other times the stress of dealing with a roommate situation can affect you negatively. Seek out options to change roommates. Policies vary by school, so check with your resident advisor to learn the process. My second semester stress levels were much lower when I moved in with a new friend — and btw, she is still a good friend to this day.

Are there any other suggestions from folks who have dealt with roommate issues?

I came across this article the other day about college-orientation sessions for parents. These aren't a brand-new thing, certainly. They had parent sessions when my stepdaughter started college five years ago. But it's definitely a new phenomenon with this generation of kids.

I have absolutely no idea what parents did during college orientation when I started school. Go shopping? Maybe. Back then, lots of parents didn't even attend orientation. Mine didn't — I carpooled with a friend's parents who took three or four of us kids along.

So what's going on? Is this just more helicopter parenting at work? Or is it something more?

Part of it could be the high cost of tuition. Fewer kids are able to manage college costs on their own these days, and when parents are footing the bill, they automatically feel more involved in the college experience. It's kind of a "what am I getting for my money?" mentality.

But helicoptering is definitely a big part as well. Parents today are simply much more involved in their children's lives than in previous generations. And that doesn't stop when kids head off to college — although it should slow down. These orientations are designed to help parents realize that and teach them how to disengage themselves a little from the day-to-day of their student's lives.

I get how hard that is. I remember the day we dropped off my stepdaughter at college. It was so strange to drive away and leave her there, realizing that she was in control now — no more curfews, no more "Where are you going? With who?"

My older son is starting kindergarten this fall, and I went to a parent meeting earlier this spring where they tried to prepare us for that first day of school. Some of the advice they gave us would serve college parents too:

• Don't let them see you cry — it will only upset them.
• Don't linger, it just makes the transition harder.
• Smile, wave, and walk away. They'll be fine.

Parents, let us know how you're handling your student's transition to college.

Just the other day on a trip to my local Ace Hardware store, I realized the approach I take while shopping there applies to money matters as well.

The employees always point me in the right direction. But once I've been guided to the right product, I ask more questions. I want to make sure I've got the right tools and know how to use them properly to complete my projects around the house.

Sometimes it's hard to admit you don't know exactly what you're doing. Trust me, I frequently feel like the folks at Ace are going to laugh at the laundry list of "How do I..." and "What if..." questions I spout off. But I ask them anyway, because having a conversation with the experts and getting a better grasp of your situation helps in the long run.

And that's the case when it comes to your finances.

When you're applying for a new account or talking through a payment option — really, any time you have contact with someone about your finances — be sure to pipe up if you don't understand something. There are no stupid questions. The more you can learn about your accounts and managing your money the better.

Better yet, just talk through your situation with a banker, your financial aid officer, etc. There might be a solution that you hadn't even thought about that could be helpful. Case in point: A while back when I was looking to pay my mortgage using automatic payments, I called a mortgage representative and talked through my situation. There ended up being a great solution that solved my automatic payment need and at the same time helped me simplify my budget.

Tell us: Have you ever been afraid to ask questions when it comes to your finances? Or are you like me in the hardware store and ask away?

If you're anything like I was the summer before starting college, you're more than ready to go. The idea of moving away and being independent for the first time is pretty exciting.

While you may feel mentally ready, are you financially ready to pack up and go? Here's a quick checklist if you want to make sure:

• Student loans and other financing in order: Check your student loan paperwork to see that everything is in order. If you think you might be short of funds, or if you have any questions, don't hesitate to contact your school's financial aid office or your student loan lender to get help. You don't want to start off the school year with payment issues, so try to get these resolved before classes start.
• Checking or savings account with ATM card: If you don't already have a bank account, now is a good time to open one. There are lots of good banking options designed for college students, so even if you've had an account for years, you might want to talk with your banker to see what's available to you now that you're entering this new phase of life.
• Credit card: Consider getting a credit card. You may just want to save it for emergencies, like car repairs, or you may want to start careful use of it to begin building a good credit history. Before you get a credit card, be sure to read up on how to manage it responsibly. Due to recent legislation, if you are under 21 years of age you'll need to obtain a cosigner to qualify for a credit card.
• Talk with your parents: Before you leave for college, have a detailed discussion with your parents about money. Iron out your expectations about what expenses you'll handle, and which they will take on (think books, spending money, car insurance, etc.).
• Budget for first semester expenses: Don't leave for college without a spending plan in hand. You'll be creating a good habit for life if you start things off by keeping track of where your money goes and trimming expenses where you can. If you bank online, you may find that some banks have tools to help you track purchases and budget — look into it.

Let us know how you're preparing for college, financially-speaking. Got any questions? Just ask!

As a college graduate, two things haunted my dreams: finding a job to support myself and managing my student loan repayment (specifically, whether I should consolidate my student loans or not).

Consolidation is a term many students are unaware of until it's too late. It allows a person to combine his or her loans into one loan and make one monthly payment.

During my last two years of college, I became more aware about finances and took a greater interest in my student loans. Once I figured out the exact amount of loans I owed, I contacted my financial aid department and asked to receive more information about consolidating my loans. It was a smart decision.

I understand there is a lot going on in your life — I'm right there with you. But it's important to think about your future financial well-being, and that includes thinking about consolidating your student loans as you consider your student loan repayment options.

Here are some things to consider before choosing to consolidate:

• Consolidation usually reduces the loan into one monthly payment; however, it is spread out over a longer period of time.
• There aren't prepayment penalties, so if you want to pay more than is required each month, you can.
• The interest rate on a federal consolidation loan is the weighted average on the loans you include rounded up to the nearest 1/8 of a percent. So if you include loans that already have a fixed interest rate (the ones made after July 1, 2006) you may end up paying more over the life of the loan.
• There are a number of other repayment options that might be a good fit as well, like extended repayment for borrowers with over $30,000 in federal student loans.
• Private student loans can't be included in a Federal consolidation loan; however some private lenders offer private consolidation loans. (Keep in mind that you should never consolidate federal student loans through a private consolidation loan!)
• You can only consolidate federal student loans during the grace period or after the loan enters repayment — NOT while you're in school.

Think carefully before consolidating your loans! You can't unconsolidate them, and you might not want to include some loans (like Perkins loans) because you could lose benefits or the interest rate could increase.  So be sure to examine your loan information and talk to your lender before making a decision.

I know that's a lot of info to process, but we're here to help! Anyone have questions about the consolidation decision?