For many of you who will graduate from college any day now, you're starting one of the most fun, scary and challenging times of your life. You're facing a huge change — and you may have a hard time coping, whether you're moving to a new city to start your career, or moving back in with your parents to job-hunt.

I recently came across a fabulous article  about how to handle those first 30 days after graduating from college. The tips range from the simple and practical (make sure you have a professional-sounding email address) to the deeper, emotional stuff (how to handle the loss of your college support system).

I wish I'd read a guide like this when I graduated. The months following my college graduation were probably much more stressful than they needed to be.

What will your first 30 days after graduation bring?

Posted by Caroline at 09:44 AM |  Contact Caroline |  Permalink  |  Comments (0)
Found in Financial education, Post-college, Preparing, Wells Fargo Bank

Back in February, I wrote about the possibility of lower student loan interest rates. We're getting closer to the possible rate changes for variable interest rate federal student loans (those made before July 1, 2006). Remember, those can change every July 1.

Are you getting antsy to know if the rates will change? Well, you can get a good idea right now.

Variable rate loans are based on the 91-day Treasury bill . Specifically, they're based on the investment rate of the last 91-day T-bill auction in May. This year that's May 27. Federal Stafford and PLUS loans with variable rates each have a margin that's added on to this base rate. They also have a maximum rate.

Here are the margins and what the rates are right now:

If you're wondering where these rates might be headed, you can check out how the 13 week treasury bills auctions have been going.

To see what the rates have been doing, you can perform a search on the Treasury Department web site . Just set the dates you want and be sure to click the 13-week box (that's 91 days…see, I can be a little mathy!) so you see only those auction results.

And make sure you're watching the investment rate. That's the interest rate to which the margin will be added.

Posted by Barbara at 07:20 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Federal loans, Financial education, Paying, Preparing, Student loans, Wells Fargo Bank

When I was a child, I learned somewhat of a clothing mantra: Buy it on clearance, hand it down, repeat.

As the youngest of four girls, I quickly became familiar with "new to you." This was, generally, a practice I was fine with. My wardrobe did occasionally include a questionable piece from say, the mid-'70s (keep in mind I was born in 1984), but it was OK. And to be fair, I did get clothes now and then that weren't the pre-worn type.

My childhood "fashion" gave me the hand-me-down  mentality. When I shop, it's usually a beeline to the clearance racks. While I'm willing to spend a bit more on things that will last, generally, I stick to the marked-down merchandise.

But every once in a while, the rebellious bug strikes me, and I find myself in the checkout line with a full-priced Anne Klein  dress. (To my credit, it was full-priced at T.J. Maxx , but still.)

Sometimes I wonder if other folks have the same reaction after a frugal upbringing. Do you ever just get the urge to spend on something you usually are frugal with?

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Financial education, Looking back, Money management, Paying, Wells Fargo Bank

Since it's Earth Day  today, I thought I'd share with you a new Wells Fargo initiative encouraging folks to "go green" with online only statements.

It's actually quite cool: To be automatically entered for a chance to win some green — one lucky winner will claim the grand prize of $25,000! — sign up for online only statements for all your eligible personal and/or business accounts (student loans included) by June 10. Check out the Sweepstakes Rules for all the necessary legalese including how to enter for free.

Why go paperless? Well, because you'll be part of an effort that saved over 180 tons of paper in 2007 ¹. From manufacturing to disposal, the benefits of eliminating that much paper adds up in some pretty dramatic ways. Last year, customers who signed up for online only statements helped the environment by:

• Saving 562 tons of wood, the equivalent of 3,888 trees

• Conserving 6,605 million BTUs (British Thermal Units) of energy, enough to supply energy to 73 homes for a year

• Eliminating 4,686 pounds of sulfur dioxide, the equivalent of taking 852 18-wheelers off the road for a year

• Cutting 986,290 pounds of greenhouse gases, the equivalent of taking 90 passenger cars off the road for a year

• Eliminating 2,146 pounds of particulates, the equivalent of taking 192 buses off the road for a year

• Saving 3,276,032 gallons of water, enough to fill 5 large swimming pools

• Eliminating 389,877 pounds of solid waste, enough to fill 15 full-sized garbage trucks

Plus, if you're anything like me, going paperless also helps you be more organized. I receive very few paper statements at this point in my life, so with pdfs  of my online statements stored on my home computer (and, of course, responsibly backed up on my portable hard drive), everything's in one place and easy to find.

Small step for you, big victory for our planet!

¹ Statistic used for comparisons based on research done by the Paper Task Force. For more information, contact Environmental Defense at www.papercalculator.org .

Posted by Staci at 09:52 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Banking, Environment, Financial education, Wells Fargo Bank

Financial literacy is often on my mind, but this month especially as I'm reading about it on many fabulous blogs  and in the news . Last April was declared National Financial Literacy month, and this year many people are using the month again to promote financial literacy .

When it comes to finances I like to think I have a good head on my shoulders. But I'll be the first to admit, I am far from financially fluent.

Obviously, I have a pretty strong grasp of student loans (despite never having any), thanks to my job. I also know about budgeting and emergency savings. But there is one word that still scares me: investing.

Stocks, bonds and all that jazz intimidate me. It has something to do with the image the word "investor" conjures up in my mind, I think. You see, to me investors are those mathy folks who wear suits and say things like "dividend"  and "hedge fund." 

Now, I have a 401k and make regular contributions, but the money still goes to the default fund. I have yet to research and reallocate my funds. Each time the quarterly statement arrives I think, "You should really read up on this." But I have yet to follow through with that thought.

Since we're in financial literacy month, I'm going to fight my fear and get over my preconceived notions. Local library, here I come to arm myself with investing information!

I know I shouldn't need a special month to motivate me, but sometimes a little extra push helps.

If you need a push, here's one from me: Check out Wells Fargo's Hands on Banking® Program  to learn more about the financial topics you don't know much about. There is even a section specifically for young adults.

And if you're looking to boost your student loan literacy let us know what you're curious about or start with some basics from the blog. 

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in 401K, Budgeting, Financial education, Hands on Banking, Investing, Money management, Preparing, Wells Fargo Bank

It's April 15: Tax day. (Insert your favorite ominous music here.)

My 2007 taxes  were finished a few weeks ago, and already the small refund has been directly deposited in my account. Barbara had to pay in a little this year, but in 2008 she should be able to reap the tax benefits of a full year of homeownership.

However, the April 15 deadline still looms for other financial decisions. Just yesterday I made the mad dash to my broker's office to deposit the allotted 2007 nondeductible contribution amount for my Roth IRA. Nothing like getting it in under the wire.

If you're still in college, you might not be thinking about retirement just yet — I know I wasn't. In fact, my IRA was a college graduation gift from my father. He contributed $2,000 annually for 10 years — a pretty generous start to my retirement nest egg. (Thanks, Dad!) Over time I converted it to a Roth account from a Traditional IRA and upped the contributions as both the law and my income allowed.

This year, I decided to put some of my tax refund toward my IRA contribution and use the rest to pay the first installment of my 2008 property taxes — certainly not the splurge items I used to treat myself to! It all feels so grown-up.

Where's your tax return going this year?

Posted by Staci at 09:56 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Financial education, IRAs, Looking back, Money management, Preparing, Roth, Saving, Taxes, Traditional, Wells Fargo Bank

Do you eat breakfast?

I normally don't...well, I guess I get my soy chai latte . But on the weekends, I love to eat breakfast...or should I say I love eating out for breakfast!

So last Sunday, I packed my family in the car. All of us were excited to have French toast, crab hollandaise , savory crepes, and Mickey Mouse-shaped pancakes at our favorite breakfast destination. When we arrived, however, we were devastated to see a "Thank you for your business" sign posted at the entrance. Our beloved Crepevine had closed down! We took our grumbling tummies back home and complained while we ate cold cereal and milk.

Unfortunately, I'm noticing a lot more businesses closing around town...not just restaurants but furniture stores, specialty boutiques, pet shops, tea bars, etc. I guess it's a sign of the times. It makes me think about what I should be doing to prepare myself for a financial "rainy day." Of course the obvious (but not so fun) thing to do is to cut back on expenses.

Comfort food  is my vice...but I guess I could make breakfast instead of going out. Maybe I could have that $3 latte a couple of times a week instead of everyday. And do I really need that glass of wine with dinner? Wait, let's not get carried away!

In these economic times, it doesn't hurt to be a little more disciplined. I mentioned in an earlier post that I was thinking of going back to Australia to visit. Well, that's an expense I've decided to do at a better time...maybe when the exchange rate for the dollar is more favorable.

How has the current economy affected your lifestyle?

Posted by Dinna at 10:00 AM |  Contact Dinna |  Permalink  |  Comments (0)
Found in Budgeting, Exchange rates, Financial education, Food, Money management, Travel, Wells Fargo Bank

As I get further into the home building process, I'm confronted with a lot of "might as well" temptations. You know — I might as well add extra square footage here, I might as well install more lighting there, I might as well finish the basement now instead of waiting a few years.

Before I know it, I've might as welled myself right over my budget.

College presents you with a lot of "might as well" temptations, too — ones that you might be paying off for a long, long time, if you're not careful. Here are a few examples:

Might as well (MAW): I don't need all of these student loans, but they've been offered to me, so I might as well take them.

Why you should resist (WYSR): If you don't need the money to pay for school right this minute, don't take the loan. You're going to have to pay it back, with interest. In most cases, the interest starts accruing as soon as the loan is disbursed. Why pay interest on money you don't need yet?

MAW: I've got leftover financial aid money — I might as well use it to buy an Xbox .

WYSR: If you have leftover financial aid money — and really, you shouldn't, if you look at the previous WYSR — throw it at next semester's tuition, or use it to pay for living expenses. An Xbox does not count as a living expense. Besides, shouldn't you be studying? If you really need to play Halo  or Guitar Hero  (and sometimes you do — it is good stress relief), just head over to your friends' place and take advantage of their poor financial decision making.

MAW: Even though I'm financing my college education with loans, I might as well skip my Economics class. It's boring, and I'm tired!

WYSR: Think about what your classes cost per credit hour, figuring in books and other materials. Then think about the interest rate on your student loans. There's some sort of mathy economics formula for figuring out exactly what skipping class costs, but you don't know what it is because you skipped Economics! Bottom line: time is money. Get your money's worth by getting out of bed and going to class.

Feel motivated to fight off the "might as wells" now? I sure do. I'm off to resist the temptation of granite countertops.

Posted by Staci at 12:40 PM |  Contact Staci |  Permalink  |  Comments (2)
Found in Budgeting, College, Debt, Financial aid, Financial education, Money management, Paying, Preparing, Student loans, Wells Fargo Bank

March went out like a lion  in South Dakota. We had quite the winter storm system pass through the area this week. That thick layer of frosting now covering the emerging green grass inspired me to talk to you about snow, well, actually snowflakes.

Snowflaking is a concept that personal finance blogger paidtwice  discusses on her blog I've Paid For This Twice Already... .  She offers a basic introduction to the idea of snowflaking here. 

Basically, it's taking any extra money you scrounge up and throwing it at your debt — even if it's only an extra dollar or two. Earlier in March, I offered similar advice to one of our readers through comments. It's a practice I follow myself. Each month, a little extra ($44) goes toward my mortgage balance.

Recently, paidtwice offered a great illustration  of how throwing a little extra toward your debt balances can pay off. So, to bring my advice full circle, I decided to calculate just how much power that $44 each month has.

According to the calculator she links to, here is the estimated payoff:

If I paid the minimum amount, I would take 190 months to pay off my mortgage and I would pay $63,743.00 in interest.

But by adding that $44 every month my payoff time is reduced to 179 months. Not only do I take a year off of my repayment, I also save over $4,000 in interest! Those are pretty big results for a little extra each month.

So, while real snowflakes are hindering spring and all of its new beginnings, financial snowflakes can be a great catalyst to help us reach our financial new beginnings faster.

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Debt, Financial education, Money management, Paying, Wells Fargo Bank

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."

Posted by Staci at 03:30 PM |  Contact Staci |  Permalink  |  Comments (0)
Found in Banking, Checking, Credit cards, Debit cards, Financial education, Looking back, Preparing, Travel, Wells Fargo Bank

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?

Posted by Barbara at 10:00 AM |  Contact Barbara |  Permalink  |  Comments (1)
Found in College, Federal loans, Financial aid, Financial education, Grants, Jobs, Looking back, Wells Fargo Bank, Work-study

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…"

Posted by Staci at 11:47 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Banking, College, Federal loans, Financial aid, Financial education, Parents, Paying, Student loans, Tuition, Wells Fargo Bank

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?

Posted by Barbara at 12:30 PM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Credit card fraud, Credit cards, Debit cards, Financial education, Fraud, Identity theft, Preparing, Wells Fargo Bank

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?

Posted by Barbara at 11:30 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Budgeting, Cars, Financial education, Money management, Paying, Saving, Wells Fargo Bank

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!

Posted by Rachel at 09:54 AM |  Contact Rachel |  Permalink  |  Comments (0)
Found in Banking, Financial education, Money management, Online banking, Saving, Wells Fargo Bank

2008 is a leap year , and today, it's leap day . Apparently, we're now astronomically in synch. Whew, some sort of calendar crisis has been averted!

I don't claim to know much about leap years, but lately I have been thinking about different kinds of leaps: leaps of faith. Not so much in the religious sense, but more in the "take a chance" sense.

We all take these leaps from time to time. We move forward and hope for the best. In fact, it could be argued that every choice you make is a leap of faith, one that sets you on a course that could affect your life's outcome.

Recently, I made a leap of faith — and a rather large one at that. I bought a piece of land, and with a contractor's help, I'm in the process of designing and building a new home. Yikes!

Sure, I worried that it's a crazy thing to do in today's economy, that I wouldn't be able to sell my current home, that I should be waiting until I'm more of a grown-up to take on this type of project.

And then I leapt.

Students, during this exciting time in your lives you're taking leaps of your own, and you may not even know it! The college you decide to attend, the course of study you select, even the way you pay for your education — they're all leaps of faith. You don't know for sure, but you hope that these decisions will pay off in the end — personally, professionally, and financially.

If they don't turn out exactly the way you planned, though, you've still gained something important: life experience on which to draw, and wisdom with which to try again.

What leaps of faith are you taking these days?

Posted by Staci at 10:02 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Financial education, Money management, Paying, Wells Fargo Bank

A couple of weeks ago, our good friend Staci shared a useful resource related to checking accounts and received a comment requesting something similar for credit cards.

Well, look no further!

The Student Guide to Good Credit, Smart Moves Today for College and Beyond has the basics for understanding and building a solid credit history. This short brochure explains why a high credit score is important, offers three easy ways to build good credit, and provides tips on how to avoid fees and finance charges. It also includes online resources and important phone numbers for reference.

FYI, the brochure automatically comes with every new College Credit Card but is helpful for anyone wanting to shore up on basic credit knowledge. Check out the file here on the blog or request it at your local Wells Fargo store!

Posted by Dinna at 10:20 AM |  Contact Dinna |  Permalink  |  Comments (3)
Found in College, Credit, Credit cards, Credit history, Financial education, Preparing, Wells Fargo Bank

Student LoanDown readers: I have a great link to share with you from one of my favorite personal finance bloggers, Trent at The Simple Dollar .

The blog covers a wide range of personal finance topics. Today he wrote an awesome post  about managing your money while in college and touches on making the most out of your education investment. Definitely a good read for the SLD community.

Posted by Barbara at 12:53 PM |  Contact Barbara |  Permalink  |  Comments (0)
Found in College, Financial education, Money management, Wells Fargo Bank

By now, you've likely heard a little (or a lot) about the state of the economy — including the Federal Reserve decision to drop several key interest rates.

Have you thought about how these changes will affect your student loans?

We know some Student LoanDown readers have — several of you have been asking great questions through comments and Ask the Expert. Well, ask and you shall receive…

Private loan rate changes
Most private loans have variable rates that are generally based on the Prime Rate  (taken from the Money Rates column of The Wall Street Journal). Some lenders base their rates on other rates like the LIBOR  (London Interbank Offered Rate). If you're not sure what your rate is based on check the terms of your loan or call your lender for more details.

These base rates change with the economic conditions. You can see the historic changes of the Prime Rate here . As those rates change so does your student loan interest rate. When the rate change occurs will vary by lender. Some lenders adjust your rates quarterly (every three months ). Others change on a monthly basis. Again, if you're unsure, your lender is just a call away.

Some bloggers  noticed their rate change after the last time the Federal Reserve cut rates. So check your rate! It may have already changed without you knowing!

Federal loan rate changes
Federal loans are a bit different. For those of you with loans made after July 1, 2006, your rate is fixed and won't change. But loans made before that date are generally variable. However, federal loans aren't based on an interest rate index like the Prime Rate or LIBOR. They are based on a Treasury bill  auction and may change each July.

This means that they aren't directly affected by recent interest rate cuts, but in general they tend to follow the trend . Some industry experts are predicting the rates will drop. Check out the quote from Mark Kantrowitz (of finaid.org)  at the end of this article .

For you December graduates currently in a grace period or for those of you set to graduate this May, possible rate changes could play a large part in your decision to consolidate your loans — or at least when you consolidate.

If your reason to consolidate is to lock in a fixed interest rate, then it could behoove you to wait and see if they lower. If you take the risk, however, know that rates aren't guaranteed to change.

Right now variable interest rate Federal Stafford Loans are 6.62% during in-school, grace period, and deferment and 7.22% during repayment. May graduates will be able to see if the rates change while they're in their grace period. But for you December grads, you could miss the 0.60% difference if you let your grace period expire to wait for the possible rate change. Signs point to the rates lowering, but again, it's not guaranteed (just playing Devil's advocate  for you!).

Posted by Barbara at 01:01 PM |  Contact Barbara |  Permalink  |  Comments (12)
Found in Federal loans, Financial aid, Financial education, Paying, Private loans, Student loans, Wells Fargo Bank

Did you know that there's a lot more to this February than Black History Month, Ash Wednesday, Valentine's Day, President's Day weekend, and Leap Day ? It's also Financial Aid Awareness Month, which we certainly would be remiss not to acknowledge (being that we're a student loan blog and all)!

In the spirit of awareness, I offer the following tidbits of advice for making the best of financial aid:

1. Save, save, save. Save your birthday money from Great Aunt Millie, your summer job earnings, and your tax return. I know it's hard. But save at least part of it, and sock it away for the biggest investment you'll ever make — your own education.

2. Find all the free money you can. Apply for every scholarship and grant that's applicable to you. Be tenacious — there's money out there for those who are willing to do a little digging. If all else fails, look for spare change on the sidewalk.

3. If you're gonna borrow, borrow a federal student loan first. Federal student loans have the lowest interest rates and the most flexibility for repayment, so you have options when the time comes to pay them back. Take the bit of time and effort it takes to complete the FAFSA (Free Application for Federal Student Aid) and get a federal loan first. Seriously, it's worth it.

4. Only AFTER you have secured federal funding should you borrow a private student loan. Private student loans are based on credit, and they're usually more expensive than federal student loans. You'll probably need a cosigner to get one, too. For some, private loans are necessary — that's why Wells Fargo provides them. But before you borrow, check out all the loan terms very carefully and think about what it'll cost to pay the loan back. (You will have to pay it back.)

5. Borrow only what you really, really need. C'mon, do you really, really need a BMW, a daily $4 latte, or a spring break trip to Cancun? No, you do not. You're in college. Be poor and whiny now so you don't have to be poor and whiny later.

Recently there was a great article in BusinessWeek  that provides some family financial aid strategies and an overview of the student lending landscape. In honor of this special month, check it out to boost your financial aid awareness, or share your own thoughts with the community here!

PS: I actually have a Great Aunt Millie.

Posted by Staci at 12:03 PM |  Contact Staci |  Permalink  |  Comments (0)
Found in Financial aid, Financial education, Money management, Paying, Preparing, Private loans, Saving, Student loans, Wells Fargo Bank

For many animal lovers it's natural to want a pet of your own once you are able to house and afford one. I've always been a cat person, so it was only a matter of time before I found a feline friend.

I adopted the adorable Bill the cat (her cuteness has been previously displayed on this blog) about a year and a half ago. And what a ride it's been.

Let me preface by saying that I love my cat very much. She's been a fabulous, constantly purring companion during some difficult times, and she's always good for a laugh with her random kookiness .

However, Bill has put an interesting spin on my financials! I knew that getting a cat meant funding trips to the vet, food, litter, etc. However, I did not bargain for the expenses of her multiple "issues."

Soon after I adopted Bill, she started biting and scratching herself. I mean ferocious, violent scratching to the point of losing her fur and breaking the skin. I'll spare you the gore-filled details. At the time, I thought it'd be a trip to the vet and things would be smooth sailing again. Well, a couple vets and multiple rounds of trial and error later, the issues are subdued with medication.

But to be honest, the cause of this is still a little fuzzy. It's likely a combination of allergies and anxiety. At the other end of the spectrum from fuzzy, the additional costs are very clear. Thanks to My Spending Report through Wells Fargo Online® I can see that during 2007, my Pet/Veterinary category totals $788.40. Yeesh!

That grand total includes:

• Declawing to prevent her from physically harming herself

• Limited-diet food  (yummy) since she's allergic to the proteins in most cat food

• Monthly steroid shots to keep allergies at bay

• Daily anti-inflammatory medication

• Some animal hoodies (go ahead, I'd groan, too) so she doesn't bite at her sides

• A pheromone plug-in  to keep her relaxed in her environment

Clearly, Bill is an extreme case of pet expenses blowing up in your face. But the point of my tale is this: Animals are one of those variable expenses. You never know what could happen that could end up costing you a pretty penny. Luckily, I could swing a few extra pet expenses. If your finances aren't that flexible, perhaps you could consider a nice house plant! :)

Have any of your variable expenses (pet or otherwise) ballooned into bills like Bill's?

Posted by Barbara at 11:15 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Budgeting, Financial education, Money management, Paying, Wells Fargo Bank