Student LoanDown readers, I’m pleased to share another question and answer series with you from Ask the Expert:

I am starting graduate school in the Srping of 2008 and going full time. My intended graduation date is May, 2009. I applied for financial aid. I am awaiting my award package.

The maximum amount of federal stafford loans (subsidized and unsubsidized) for grad students is about $18,000 per academic year. So my question is, will I get $18,000 starting this spring (2007-2008 school year), and another $18,000 starting in the fall (2008-2009) school year? Or will I get screwed and only get half ($9,000) for the spring, and then like the whole amount for the next school year ($18,000) in the fall???

It is pretty important because I have to take summer classes also, so my average cost per academic year is about $23,000, which is more than the aid I will receive. So depending on the timing of their disbursements, upfront for each academic year, or they split it in half, makes a big difference to the kind of leverage I can have with that money and determine wether I can move out, have some breathing room, etc.

Hmmm, a bit of a quandary. What do you do when the cost of your graduate school education and the amount of financial aid don’t add up? Fortunately for this reader, the math had changed slightly:

Generally, school certified student loans are disbursed in multiple installments throughout the academic year—not just in one lump sum. So you should receive separate disbursements for the spring semester of 2008, the fall semester of 2008, and the spring semester of 2009. Check with your school's financial aid office to be sure. Your school also might have a special financial aid application process for summer classes, so I'd recommend you ask about that now.

The good news is that the maximum annual Federal Stafford Loan limit for graduate students has increased a bit—to $20,500. That will give you some breathing room!

There was also a change to the Federal PLUS Loan program last year that extended eligibility to graduate students. You can apply for this loan after you've applied for your Federal Stafford Loan if you still need additional funding. There's no annual maximum, so you can borrow up to the cost of education (tuition, rent, books, etc.) minus other financial aid you've received. This loan has a fixed interest rate and after the Federal Stafford Loan, it's one of the most affordable loan options available. If this loan isn't included in your award package, ask your financial aid office if it's an option for you.

One last bit of advice: Borrow only what you really need, because you have to pay it back—with interest.

Got a question for us? We’ve probably got an answer (or can find one), so don’t be shy!

Posted by Staci at 11:15 AM |  Contact Staci |  Permalink  |  Comments (2)
Found in Back to school, College, Federal loans, Financial aid, Graduate school, Paying, Post-college, Student loans, Tuition, Wells Fargo Bank

Looking for more guidance on preparing to pay and actually paying for college, as well as general personal finance information on a variety of subjects? (If you're reading this blog, I'm guessing that you're interested in these topics!)

There's a great new book out by wealth manager Russell Bailyn  called Navigating the Financial Blogosphere , which has two chapters on paying for college — one on saving for education (Chapter 13) and one on borrowing for education (Chapter 12) — in a section called "Building Wealth Requires Planning."

The content is very objective and provides several different online resources to find more information. I especially like that the chapters are short and conversational. In fact, one of the reviewers on amazon.com  calls it "a personal finance blog disguised as a book."

Of course, I should mention that the Student LoanDown blog is even mentioned on page 96, which is how I found about the book in the first place!

Posted by Staci at 09:55 AM |  Contact Staci |  Permalink  |  Comments (2)
Found in Financial aid, Financial education, Graduate school, Money management, Paying, Preparing, Tuition, Wells Fargo Bank

For a number of my friends, formal education didn't stop at our undergraduate commencement. Many are now taking graduate level classes towards a master's degree. Some are taking classes on top of a full-time job, some are working part-time and some aren't working at all.

I'm always interested to see which of those options grad students choose. What are you, your friends or your family doing?

Each option has its perks and pitfalls. There's not a singular best option for all graduate students – it depends on the individual situation. The choice can be based on a number of variables, like what kind of program the student is in, the need for a steady income, or how much money the student wants to borrow. Caroline addressed the financing piece in an earlier post back in May.

Here are a couple things to consider:

Tuition assistance: For those students who choose to work full-time, many employers offer a tuition reimbursement program  so employees can continue their education part-time while they are working.

Grants and assistantships: Sometimes instead of working part-time outside of school, graduate students can get financial assistance through assistantships  in their own department. Usually students must be attending full-time to qualify for a GA position.

Attending school part time : Even if your employer doesn't offer tuition assistance, having the income and benefits from a job may give you the ability to take a class here and there, working slowly toward an advanced degree.

Working part time: Working part time while attending school full-time may mean borrowing less money through student loans, which could save you money in the long run.

Workload: For many programs, there really isn't an option to work. With heavy loads of homework, some graduate students just need to focus on their studies.

Are there any graduate students or former graduate students out there with advice for those facing the work conundrum?

Posted by Barbara at 11:06 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Back to school, Banking, Budgeting, Financial education, Graduate school, Grants, Jobs, Money management, Paying, Post-college, Preparing, Student loans, Tuition, Wells Fargo Bank

Try as I might, I just can't seem to shake my travel bug. Over the weekend I watched "Long Way Round" —a documentary film that chronicles Ewan McGregor  and his friend Charley Boorman as they ride motorcycles from London to New York City by driving east—the long way round.

Admittedly, I added the movie to my Netflix® queue  because of my love of the "Moulin Rouge"  actor, but I was captivated by the film as soon as I turned it on. This movie has some really good stuff in it, especially as the pair tries to navigate some of the "roads" in Mongolia and Siberia!

Many of you also share my love of travel, and you've been quick to offer advice on the subject! I recently was made aware of another a great hostel booking and reviewing site . Don't tell my manager, but I spent a good hour perusing it this morning, and I was impressed by both the quantity and the quality of the listings offered. It might be useful to check out if you're planning a trip to, well, anywhere!

Finally, as you may well be aware, the days are beginning to get shorter once again—summer is coming to an end and so too is my summer internship. I'll soon be back on campus  as a full-time student, so I must bid you farewell. It has been my pleasure to chat with you all, however briefly, and I wish you the best of luck in your endeavors (financial and otherwise)!

Parting, as they say, is such sweet sorrow.

Posted by Kathy at 08:50 AM |  Contact Kathy |  Permalink  |  Comments (7)
Found in Back to school, Budgeting, Financial education, Graduate school, Housing, Paying, Preparing, Student loans, Travel, Vacation, Wells Fargo Bank

Yesterday, the angel and the devil sitting on my shoulders were arguing about the merits of taking a European vacation this summer. In the end they agreed to compromise—road trip!

Later this summer, I am thinking about hopping in my Honda Civic (not a Hybrid like the one Wells Fargo is giving away, but very fuel-efficient nonetheless) and driving up to Portland, Ore., for a few days. My fiancé is keen on viewing the Body Worlds  exhibit that will be in Portland for the month of August, and his parents live nearby—an added bonus and money-saver!

Not only will I save on the cost of airline tickets by driving, I'm also planning to reduce my cost further by staying at a hostel (when we're not crashing with his parents).

What is a hostel , you ask? There is no one correct definition (I've stayed at really nice hostels  and some that were … um … not so nice), but they tend to offer low-cost accommodation options to young travelers all around the world! You can often choose between a private room or a bunk-bed style option, depending on your budget and privacy preference.

Still not convinced? You can (and should!) do your homework before traveling—sites such as hostelworld.com  allow you to research, book rooms and review various hostels all over the world. A quick search shows me a couple of great hostel options in the Portland area—for a fraction of what I would spend on a hotel! My bank account will certainly thank me!

Do you have any thrifty vacation tips?

Posted by Kathy at 12:05 PM |  Contact Kathy |  Permalink  |  Comments (9)
Found in Budgeting, Financial education, Graduate school, Paying, Preparing, Student loans, Vacation, Wells Fargo Bank

It's summertime, and the little devil that sits on my shoulder is screaming into my ear:

Devil: You've kept us cooped up for far too long! I know what we need—National Lampoon style, EUROPEAN VACATION !

Fortunately for me, I have an equally loud angel on my other shoulder:

Angel: Kathy, you just accumulated nearly $50,000 in student loans to fund your first year of graduate school . One year down, one to go! You've done a great job of managing your budget on these funds, and you're making a great investment in your future by continuing your education—don't blow it now!

Devil: But you have a credit card, and a healthy credit limit! Just charge it and worry about paying the balance back later!

Angel: You can't pay back money you don't have. You're already borrowing for the cost of living—resist this temptation!

I sigh and accept that the angel has a point. Going on a European vacation, at least this year, doesn't make sense for me from a financial standpoint. If I were to put that much on my credit card, given my severely limited income, I'm not sure how (or when) I would be able to pay it off. Even though I am often tempted to take advantage of the ease of spending using my credit card, I believe that for people in situations like mine, spending on credit should be reserved for necessities (such as gas, groceries, etc.) or emergencies.

OK, the angel and devil are coming to a compromise:

Together: ROAD TRIP!!

More on this development to come …

Editor's note: We're thrilled to introduce Kathy as the newest—if only temporary—member of the Student LoanDown blog team!

Posted by Kathy at 09:02 AM |  Contact Kathy |  Permalink  |  Comments (6)
Found in Budgeting, Financial education, Graduate school, Paying, Preparing, Student loans, Vacation, Wells Fargo Bank

Recently I posted some information on financing grad school in response to a question from one of our readers.

In addition to the information in that post, here's a guide to financing graduate school  put out by the National Association of Financial Aid Administrators. This offers information on the application process, basic eligibility requirements, and sources of funding.  It's a good place to start if you're just beginning to explore your options for financing grad school.

Let us know if you have any other tips or experiences to share about funding graduate school.

Posted by Caroline at 08:48 AM |  Contact Caroline |  Permalink  |  Comments (1)
Found in Financial education, Graduate school, Parents, Paying, Post-college, Preparing, Student loans, Wells Fargo Bank