Wells Fargo - The Student LoanDown

How are you paying for college?

2009-11-03T00:00:42Z

Student LoanDown readers, we’re taking a quick pulse check using our new poll feature. We hope you like it, and you should be seeing more of it!

So, our very first question is: How are you paying — or did you pay — for college?

How are you paying for college?

If you have other thoughts to share about paying for college, let us know!

Join in

2009-10-27T16:30:34Z

With the semester in full swing, students may be looking for a little something extra to add to their schedule. What better way than joining a club or organization on campus?

Not sold on the idea of becoming a joiner? Think about these big two benefits to joining club or organization on your campus:

Beefing up your resume — Let's face it, potential employers like to see that you were involved on campus. Whether you're applying for an internship or that first job out of college, being able to list some extra involvement may bump your resume to the top of the pile. There are plenty of groups on campus tailored to your future career. For this journalism major, that meant writing for the student newspaper and joining the campus chapter of the Society of Professional Journalists. Both of those gave me a leg up at internship time.
Expanding your social circle — Some groups might not be something you join to advance your professional interests, but rather your personal development. Things like community service groups, Greek life, or recreational clubs could introduce you to folks with the same interests. Joining a club is a great way to meet new people on campus and expand your network.

When you're looking into options, remember not to overextend yourself. While joining organizations on campus have their benefits, they will take up a chunk of your time. Don't let them interfere with your college studies. After all, that's why you're there.

So while you may be very passionate about numerous groups try to choose your involvement wisely. To narrow down your options, ask yourself questions like:

How much time will it require?
What are the benefits to my personal and professional development?
Does it work with my class schedule?

If you don't find something that interests you, consider starting your own club!

What clubs and organizations are you interested in? If you've already found an extra curricular activity, tell us about it!

Senior savings plan

2009-10-21T17:00:41Z

If you're a high school senior, the cost of college probably isn't your top concern right now. Usually during that first semester of senior year, you're more worried about getting into the school you want — not how you'll pay for it.

For a lot of students, saving money for college doesn't feel like an urgent matter until the summer before you leave — when all the "busy-ness" of senior year and excitement of graduation are past. By that time, you know where you're headed for school and how much financial aid you're getting and it all finally feels real.

Unfortunately, June is a little late in the game to start a real savings plan for fall. You'll be better off if you start concentrating on saving right now.

So how can you get motivated? Try to make it real for yourself. Forget about the vague, fuzzy "saving for college" idea — start thinking more specifically about what things you'll need to pay for next year. No matter where you go to college, you're going to have some of the same expenses , so list them out and use them as goals to save for. Here are some ideas:

Laundry money — laundry will probably cost around $5 a week. Plan on 40 weeks worth of laundry, and make a goal to save $200 to stay in clean clothes for the entire year.
Eating out money — even if you stick to your pre-paid meal plan, that generally doesn't include supper on Sunday nights. Figure you'll spend $10 eating out on Sunday nights each week — and aim to save $400 to cover Sunday meals for the year.
Books — these will probably run anywhere from $200-$600 per semester. Set a goal of saving $500 for your first semester's books.

These are just a few of the basics you'll need a stash of cash to cover during your first year of school. Try saving for just one of these items to make it a really achievable goal. It feels good to know exactly what you're saving for — and what it takes to get there.

Are you saving money for college? Tell us how it's going!

Be prepared!

2009-10-19T17:51:49Z

Last week, our friends at the Guided By History blog recounted some of their stories about the 1989 Loma Prieta earthquake. The 20th anniversary of this disaster just passed, on Saturday, October 17.

I didn't live in San Francisco in 1989, but I did from 1998-2000, where I experienced my share of small quakes. One fall morning in my tiny Noe Valley studio, I was attempting to open a stuck dresser drawer. Just as I yanked it open, I noticed that my glass closet doors were shaking. I thought to myself, "I didn't pull it THAT hard!" Then I turned around and saw that the rest of my apartment also was moving — and realized I was in the middle of my first earthquake.

At that point in my life, I wasn't prepared for an earthquake. I didn't know that I should move into a doorway or underneath a sturdy piece of furniture. I hadn't assembled an earthquake kit. I'm a Midwesterner! Give me a tornado or a severe thunderstorm, no problem, but an earthquake? No idea what to do.

If you're in the same boat as I was back then, the Bay Area Chapter of the American Red Cross has put together a series of preparedness webisodes for young adults that can help you make a communication plan with friends and family, put together a disaster survival kit, and more. It's good stuff.

Check it out and be prepared!

You don't have to go to the drugstore (to get smart about credit)

2009-10-15T07:00:10Z

True story time.

Last week I got an email from a friend and former Wells Fargo colleague, who'd had an interesting experience at her local drugstore:

I had my Wells Fargo jacket on in Walgreens today and this kid asked me, out of the blue, "How do I get credit, if I don't have any?" I was kind of taken aback for a moment — do I look like a lady who knows about credit? And then he said, "Well, don't you work at Wells Fargo?"

So we started this strange conversation about how he was going to school and needed to get a loan, and couldn't build up his credit because he didn't have any, and because he didn't have any history they wouldn't give him any credit. I didn't know what to say. I kind of wanted to run out of the store. But I told him I would check into it for him.

Gotta give this kid props for walking up to a total stranger and asking for credit advice!

And at the same time, I'm thinking, this poor kid — he clearly hasn't received any credit education at home or at school, so he has to ask a total stranger!

What makes this story particularly timely is that today is Get Smart About Credit Day. Every October, the American Bankers Association hosts this initiative to educate consumers and students about credit. Given the current economic environment — where credit is harder to come by — these efforts are more important than ever.

Fortunately, if you want to get smart about credit, you don't have to go to the drugstore. Stay put and check out some of these resources Wells Fargo offers:

And don't forget: By law, you're entitled to one free credit report every year.

So, what credit questions can we answer for you?

It's a major decision

2009-10-14T17:00:44Z

Remember your senior year of high school, when all anyone could ask you was "Where are you going to college?"

Well, now that you're in college, the questions keep on coming, but this time you get it from every new person you meet (which is a lot your freshman year): "What's your major?"

If you're undeclared, that gets to be a pretty short conversation. And eventually you do have to settle on a major. So how are making the major decision? Here are some ideas to get you started:

Take some career aptitude tests. Check with your academic advisor to see if he or she can recommend some good tests. You can find a number of these tests online, but beware — they may be commercially linked, so it's probably best to get some advice before diving in.
Ask the people who know you best. I majored in journalism on the recommendation of my brother. I loved to write, so I don't know why journalism hadn't occurred to me. I guess at the time, I wasn't thinking about my talents as much as I was thinking about what I "should" major in to get a good job. Entertain the ideas of those who see you from the outside looking in. They shouldn't make your decision, of course, but they may have some good insight for you.
Explore potential jobs. Check out potential jobs as a way to explore different majors. Do some volunteer work, get an internship, do some job-shadowing — and always ask people what they majored in. You're likely to find some surprises along the way — and you might get some career-path ideas.
Do some research. Thumb through your school's course catalog, check around online, browse some career-books, read articles and reports about fast-growing career fields and list anything that catches your eye. It's a good way to gauge your interests, and remind yourself what's out there.
Know what you're getting into. As you're making your decision, definitely follow your heart and your talents, but be realistic and know what you're getting into. Think not just about the major but about the career path you plan to follow. Consider what jobs in the field will pay and compare it to what you're paying (and borrowing) for school. Be sure that reality plays some part in your decision and that you're keeping the future in mind.

Have you decided on a major? How did you make your decision?

Senior day

2009-10-08T16:30:19Z

If you're a high school senior, how are you going about exploring the colleges that interest you?

Are you searching online? Talking to your parents or guidance counselor? Reading up on the literature colleges send you?

These are all good approaches, but when it comes to choosing you college, nothing really beats an in-person visit to the campus. Many campuses host special "Senior Days" where you can get a personal tour, lots of good information and maybe even some cool freebies like game tickets.

It's great to visit on a Senior Day because of all the pre-planned sessions just for you. But if you can't make it to a pre-scheduled day like that, check out this link for some help for planning your own campus visit.

If you've already attended a Senior Day, let us know how it went!

Your student loan repayment checklist

2009-10-06T19:20:35Z

May grads, you knew this was coming. It's almost time to start repaying those student loans. Your six-month grace period on Federal Stafford loans is dwindling — it's time to think about the details of repayment, if you haven't already.

To help you out, here are some items to check off your list of repayment to-dos.

Make a plan. Calculate how much your monthly student loan payments will be (be sure to calculate any private student loan payments as well). Make sure you have at least this amount in your budget. Can you allocate a bit more to your loans? Remember paying a little more each month can mean paying less over time. Does it look like your monthly obligations are going to be tough? Then check out the next to-do.
Explore your repayment options. There are tons of repayment options for Federal Stafford loans. You can stay on a standard payment plan, extend your repayment if you have a certain amount of federal student loan debt, have your payments based on income if you qualify, combine your loans into one new loan or delay your payments in some circumstances.

Take some time to learn about all your options starting with these:

Standard, extended, graduated and income-sensitive repayment plans
Income Based Repayment
Federal student loan consolidation private student loan consolidation
Deferments and forbearances

As you explore your options, remember just because you can delay your repayment doesn't mean you should.

Know how to contact your lenders. Staying in touch with your lender is a vital part of repayment. Keeping the lines of communication open will help your repayment go as smoothly as possible. Plus, if you hit a bump on your repayment road, talking with your lender about your options can help you get through the situation together.
Decide how you'll make your payments. In this technological age, there are more options for payments than the traditional check through the mail. You may be able to manage your loan online. Check with your lender to see if they offer the option to make payments automatically or through your bank's online bill pay service. Making on-time payments is super important, so find the payment option that works for you to ensure your payments arrive to your lender on time.
Keep your cosigner informed. I threw this one on the to-do list for those of you with private student loans. Chances are your private loan also has a cosigner whose credit is tied to the good repayment of that loan. Talk through your repayment plan with them to ease their mind a bit. After all, they did put their credit on the line for you.

So let us know: Are there any other items on your repayment to-do list?

Our new (and improved) student loan application

2009-10-02T17:00:06Z

Just a few weeks ago, Wells Fargo launched a new online student loan application with several improvements to make applying for a student loan easier.

What's so special about the new application? For one, you — our customers — had a hand in designing it! See, you told us what some of your pain points were, and we listened to that feedback and used it to design something that works better.

Here are some of the changes we made:

Up front, the application suggests which student loan products might best meet your needs, based on your school, grade level, program, and cost of education.
The application itself has been condensed so there are fewer pages to click through.
Throughout the application, there are hyperlinks to define any terms that might be confusing, as well as clearer instructions for cosigners on private student loans (and we know you have many questions about cosigners!).
Finally, the application clearly details the next steps in the process so you know exactly what to expect before, when, and after you apply.

All in all, very solid improvements that we hope will make your customer experience even better.

Speaking of customer experience, have you used the new online student loan application? If so, any feedback to share? We're listening!

Paying a little less for mistakes

2009-09-29T19:45:48Z

We all make mistakes. But money mistakes come with a price.

Recently Wells Fargo made a change to its overdraft charge policy that makes those mistakes a little easier to swallow!

In the near future (the final date’s still TBD), your account will not be assessed overdraft fees if you become overdrawn by $5 or less. Also, no more than four overdraft charges will be charged per day.

Also, in the coming months, customers who want to opt out of overdraft coverage will have that option — you’ll be able to specify that you don't want your transactions authorized or paid into overdraft if you don't have funds to cover the transaction.

That's all good news, but more importantly, how can you avoid overdrawing your bank account in the first place? Just a few simple ideas:

Bank online. Get yourself set up for online banking, so you can view your account any time. You can see pending transactions and easily transfer balances from one account to another, which can help you avoid overdrafts.
Sign up for overdraft protection. At Wells Fargo, enrollment in overdraft protection is free, and can dramatically reduce the fees you're charged for overdrawing your account.
Sign up for mobile banking. Right now Wells Fargo is offering this service for free. It allows you to keep track of your account, like check balances, review recent activity, and transfer funds — all from your mobile phone.
Go low-tech. Although many online tools are helpful, you don't have to be high-tech to keep good track of your bank account. Use a good old-fashioned check register to record all your account activity: check card purchases, deposits, ATM withdrawals, etc. You can also use this as a backup, even if you're banking online.

So tell us: How do you keep track of your bank account?

UPDATE: Oops, we jumped the gun on our original post! We recently learned these changes to our overdraft policies are a work in progress, which means they’re not yet available. We’ve updated our post to reflect that! We apologize for any confusion this may have caused and will let you know when those services are up and running.

My new gym

2009-09-23T16:00:04Z

After a three-year relationship with my gym, it's time for a switch. My new gym is in a closer location, has great classes and is significantly lower in cost. It's in my basement, consists of my favorite exercise DVDs and only costs the electricity to run a television and overhead lights during an hour workout.

The gym is an expense I have previously justified several ways — because of my health, because it was a location just for working out, and because I liked pampering myself in the steam room post-workout.

But as I look to tighten my belt a little to increase savings, I can't justify the expense any longer.

Perhaps this has been one of my splurge items over the past few years. But a girl can only have so many splurge items before she's living above her means, right? Paying a premium for membership at one of the top gyms in town means paying for all the added services — even ones I wasn't using, like fitness classes. Since I wasn't getting my money's worth at the gym, it was splurge I could cut.

However, I'm having a hard time letting go. I keep trying to tell myself that, given the right motivation, I'll still maintain a fitness routine. Here's why (I hope) life sans gym is going to be just as good for my fitness and much better for my pocketbook:

My house is mere blocks from a local park and bike trail, so when the basement gym gets boring I can mix it up.
I love rearranging my furniture. Lift with the knees and you have both a workout and a decorating opportunity!
The outdoors rock — I can do tons of exercises while enjoying the fresh air. Just think of the sweat I'll work up shoveling my driveway this winter.
With YouTube at my disposal, they'll be ways to vary my workout routines without spending money on new videos and equipment.

Have any of you ended a relationship with a costly routine? Did you have a tough time cutting yourself off? Any ideas for coping are greatly appreciated!

Nine is my favorite percent

2009-09-17T16:35:01Z

Staci is always saying she needs 15% more or less of something. Like when she can't find the movie she wants through the Redbox, she needs 15% more of that movie in the Redbox. Or when Pie Elizabeth is being particularly barky, she needs 15% less barking.

Once I asked her why she uses 15, to which she responded "Fifteen is my favorite percent."

Right now, nine is my favorite percent. It's the percent of my goal I have saved on two savings accounts. I guess technically my favorite percent in this respect would be 100, but for now, I'm happy to see nines.

If you're saving through Wells Fargo, you can set up My Savings Plan^SM to monitor your progress, too. I've established a couple savings accounts with specific savings goals — one for new windows on my house and the other for my ongoing saga of saving for a new car.

I teeter-totter back and forth as to whether seeing my savings percentage — or accounts for that matter — helps or hurts me. Seeing my progress from time to time can help me stay motivated to maintain my current contributions and kick in an extra couple bucks when I am able.

However, seeing that the money is out there just waiting for me can test my patience. Sometimes I start thinking about what debts I could be paying off with the money or how easy it'd be to transfer a couple dollars out of the account for something smaller I need/want (mostly want).

Here's the compromise I made that seems to be working so far. Some of my accounts are visible through online banking and some are not. My emergency fund, which I want to keep growing and never take from unless it's truly an emergency, is one of the accounts that's invisible. The account is funded through direct deposit of my paycheck, so everything is automatic and I don't see the money.

Other accounts, like the window and car goals, are visible. For these accounts, I've found that knowing the specific amount of the specific goal is helpful to keep those savings goals trucking. In addition to automatic transfers, I tend to add more money when I can. Right now I'm thinking about depositing a few more dollars to get the window goal up to 10%. Double digits!

Does having a reminder of how far along you are help your savings goals? Tell us about what savings tricks you have.

Stay on track during senior year

2009-09-14T17:08:55Z

As a high school senior, you've got a busy year ahead of you. While you might be mentally ready to set things on "coast," now is not the time for that! Besides keeping up your grades, you've got a bunch of prep work to do to get ready for college. It's all pretty deadline oriented, so if you haven't created a master calendar yet, it's a good idea to start one.

Here is a basic timeline of things you'll need to remember to stay on top of college planning:

September

Meet with your guidance counselor to discuss your choice of colleges.
Start a scholarship search. Look online and tap your guidance counselor to get help with local scholarship options. Note all scholarship application deadlines on your master calendar.

October

Decide which schools to which you'll apply. Make a note of all the application deadlines and put them on your master calendar.
Secure recommendations from teachers, employers, or other adults. Give them at least a month to write their letter.
Start thinking of topics and drafting outlines for college application essays.

November

Submit your college application information on time.
Schedule campus visits and interviews.

December

Keep an eye on scholarship deadlines and continue your scholarship search.

January

File your FAFSA (Free Application for Federal Student Aid) as soon after January 1 as possible. File online at fafsa.ed.gov.
Attend a financial aid night to learn more about paying for college.

February

Provide your counselor with the necessary mid-year grade forms, if your schools require them.
Register for advanced placement tests.
Complete scholarship applications.

March

Watch for your Student Aid Report (it should arrive about four weeks after submitting your FAFSA).
Check your mailbox! You should begin receiving your admissions decisions from colleges.

April

Compare financial aid awards from different schools and keep these in mind as you weigh your options.
Look for additional funding if your financial aid package is not enough to cover your costs.
Think about private student loans.
Use Wells Fargo's online tools and calculators help plan.
Make the final decision and notify your schools.

May

Enjoy the last few weeks of high school, but remember to keep your grades up!
Make sure your final transcripts are sent to the college you'll attend.

Summer

Save money from your summer job and gradually buy things for school.
Know your freshmen orientation dates.

Any other ideas to add to the senior year calendar?

Who's paying for what?

2009-09-09T17:45:28Z

When it comes to your non-school expenses, who is paying them — you or your parents?

As you head off to college this fall, it might be a good idea to talk it over with your parents and make sure you're on the same page about which bills you'll pay and which bills they'll pay.

If you're just starting to take on some responsibility for your finances, it will be an eye-opener to learn just what it costs to keep you afloat. You may not have any idea about all the costs included in owning a car or renting an apartment. Your parents will definitely appreciate your asking about it!

Here are some of the biggies to think about:

Cell phone : Are you still on your parents' plan or will you be getting your own plan? If you're on a "family plan" with your parents and siblings, take some time to look over the bill and maybe talk with a representative to make sure you've got the most cost-effective features. And think about the future: Will you be using more minutes/texting once you're away at school? Don't wait for a big bill to get things organized.
Rent/utilities: Rent might be something you can pay on your own. But if your parents are shouldering your share, maybe you can afford to take on some of your utilities. Once you split these among your roommates, they usually aren't too bad. Plus it will be good training for the future — you might start thinking of ways to save energy if you're facing the bill each month.
Car expenses: Even if your car is paid for, there are still plenty of expenses that go along with it outside of gas — insurance for one. If your parents are paying your car insurance, you can help them out by getting good grades. Insurance companies sometimes give a "good student" discount , so have your parents look into it. Don't forget about oil changes, registration fees and general repairs. Even if you can't afford to help pay for all these things, you should know what they cost — someday all these expenses will be yours.
Personal items/expenses (food, clothing, haircuts): Again, if you're just starting to pick up some of your own expenses, this might be a good place to start. Most of your personal expenses are things you can control, so it will help you learn to discipline your spending — you'll be more inclined to shop for bargains or eat within your meal plan when the cost is coming out of your own pocket.

When it comes to your college expenses, what things are you paying for?

A day in the life of a Student LoanDown blogger

2009-09-04T16:30:11Z

Tomorrow will mark three years since we launched the Student LoanDown blog. It's kind of crazy for me to think about! For three years, I've been sharing my own financial saga and helping readers understand theirs.

To celebrate, I decided to give you a little behind-the-scenes peek at what happens on our end to bring you the information you find here on a day-to-day basis. Remember, none of us are full-time bloggers — we get to talk with you along with other daily responsibilities. So the time lapses are when I'm doing other tasks that are slightly less fun!

8:45a.m. After procuring a morning beverage, I log on to my computer and start to sort through emails and comments that have come in overnight. One of the highlights of my day is seeing your responses to what we've posted and the questions you have.

9:30a.m. Once I've got a handle on what I need to respond to, I identify the resources I need to answer your questions. Sometimes the questions you ask are pretty complex. So, I get to engage other team members throughout the business. Like when you wonder about deferments and forbearances (technical terms for ways to postpone your student loan payments), I get to talk with folks in our Account Maintenance department. Answering your questions has helped me understand tons of different areas of the business I wasn't familiar with at first.

12:00p.m. I have an idea for a series of posts, but first want to talk with our blog editor, Henrik, to get his feedback. After chatting about how to present the information best, I get started on the first post.

1:25p.m. As I'm drafting responses to the comments and questions I got in the morning, a new email comes in through our Ask the Expert feature. The customer has some specific questions about her student loan with Wells Fargo, so I engage our Executive Office. That's the group that handles escalated customer inquiries. And they can pull the details of the borrower's account for me.

3:15p.m. Ring, ring. Caroline is calling! She wants to have a quick brainstorm session for some post ideas. Along with drawing experiences from our daily lives, we also like to have timely conversations about what's going in the lives of students. Sometimes it helps to bounce ideas off another blogger.

4:45p.m. I realize my post ideas are going to take a bit more research, so I crank out a quick post about it being our anniversary, which you're currently reading! After I send the post to Staci, I wait to hear her chuckle over the cube wall as I am v. clever and v. funny (and v. modest).

6:00p.m. With another day of comments published and questions answered, I note what items are still outstanding for the next day and put them on my to-do list so I remember to follow up.

So there you are: A look into the glamorous life that is blogging for the Student LoanDown! Thanks for teaching me new things every day with your great conversations and questions. I've really had a lot of fun talking with you over the past few years, and we hope you're having fun, too!