It's graduation time! Congratulations to those of you who are finishing your degree this month. Take time to celebrate, but don't forget your student loan payments will be here before you know it (wah wah!) .

Luckily your Federal Stafford Loans will likely have a 6 month grace period before your first payment. Have you thought about how you're going to use that time?

If you have unsubsidized Federal Stafford Loans, where all the interest accrued is your responsibility, you could use your grace period to pay off interest you've accrued during school. Otherwise, that interest will be capitalized (added to your principal balance) once your grace period ends.

That means you'd pay interest on interest. Paying even just a portion of your interest off could make sizeable difference in the total amount you pay.

If the government is paying your accrued interest with a subsidized Federal Stafford Loan or if you've already paid interest off yourself (nice work!), here's another idea for your grace period: practice making your payments. This way, you get used to making a payment each month AND you'll have a nice stash of cash once repayment does begin.

One other thing to think about: If you're finishing graduate school and dealing with Federal PLUS Loans for graduate students as well, know that you won't have a grace period on those loans. Repayment begins immediately even if you had your payments deferred while you were in school. However, some lenders will give you the option to align the repayment start dates of your PLUS and Stafford loans through a forbearance.

Posted by Barbara at 10:37 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in College, Federal loans, Money management, Paying, Post-college, Preparing, Student loans, 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

One of my great pet peeves in life is late fees. Whether they're at the video store, the library or on my credit card bill — it drives me crazy to have to pay extra just because I'm disorganized.

Recently my Gap  credit card bill arrived with a $20 late fee attached. Oops, I forgot to tell my husband that I applied for the card — he thought the first bill was junk mail and tossed it.

Fortunately, I was able to explain the circumstances to the nice people at the Gap, and they reversed the charge. But that only works once in a great while!

Then my stepdaughter found a $20 late fee on her credit card bill. Her bill comes to our house, and she ended up paying it a few days late. This was the first time she wasn't able to pay off her credit card without carrying a balance, so seeing the late fee in addition to the accrued interest is not something that she's likely to forget soon!

It seems like I'm always paying late fees on silly things like movies we rent or books I check out from the library. While these aren't much, they do add up over time. My new system to avoid these fees involves leaving myself a Post-It note  on our back door to remind me when things are due.

Hey, whatever works!

How do you stay organized to avoid late fees?

Posted by Caroline at 09:01 AM |  Contact Caroline |  Permalink  |  Comments (5)
Found in Credit cards, Fees, Money management, Paying, 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

After we talked about financing an education in the United States if you aren't a U.S. citizen, we fielded several questions about how U.S. citizens can fund study abroad .

I've always been intrigued with the idea of studying abroad. Several of my friends spent time at a university in Spain. They came back with awesome stories and Spanish speaking skills far superior to my own — yes, I'm still jealous, but I digress.

Some students choose to study abroad for a semester or so through an exchange program  with their home university. Others choose to seek their degree in a different country.

In each of these scenarios, federal funding from the U.S. is usually available. Foreign schools can choose to participate in the Federal Family Education Loan Program (FFELP). Of course, before you borrow, consider options for grants and scholarships that you won't have to pay back after you graduate. There are some notable scholarships  designed to help students study abroad.

Just like when attending a U.S. school, you'll work with your financial aid office to get your funding squared away.

If you do need to borrow for your education, your first step to federal aid is still the FAFSA  (Free Application for Federal Student Aid). But you might have to do a little extra work. Some foreign schools may not be able to receive the Institutional Student Information Record (ISIR)  electronically, so there might be additional steps to the process. Check with the school to see if they need you to mail a paper copy of your Student Aid Report (SAR).

And if federal aid, coupled with scholarships and grants, isn't enough to fund your education, some lenders offer private loans for study at foreign schools. In general, Wells Fargo isn't a lender at colleges and universities abroad. However, there are some exceptions.

If you're looking for more information on funding, NAFSA , an association of international educators offers a great resource page  for students pursuing education abroad. Or don't be shy about talking with your financial aid officer.

Let me know if you have more questions. I'll just be contemplating taking a couple years off to get a graduate degree at Oxford .

Pip, pip, cheerio!

Posted by Barbara at 11:24 AM |  Contact Barbara |  Permalink  |  Comments (2)
Found in College, Federal loans, Paying, Student loans, Studying abroad, Travel, Tuition, 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

Just like many U.S. students choose to spend time studying abroad, many international students choose to study in the United States. Here are two great resources for students considering traveling to the U.S. to further their education:

• educationUSA — advising centers from the U.S. Department of State

• eduPASS — a guide to studying in the U.S. including travel and customs

I recently answered an Ask the Expert question about student loan availability for international students. I wanted to share that information with the rest of the Student LownDown readers. Here's the scoop…

International or not, students should always apply for federal aid first. However, most foreign citizens aren't eligible for student aid from the U.S. federal government. There are some cases where non-citizens may be eligible for financial aid. Students should check out this online guide to federal student aid for international students to see if they qualify.

After federal aid, international students could consider private student loans. Many lenders will ask that international students who apply have a cosigner who is a U.S. citizen. Cosigners assume equal liability for the loan, so this is not a responsibility to be taken lightly.

For our international student readers, what has been your experience with American financial aid? How does the process work in your own countries?

Posted by Barbara at 11:00 AM |  Contact Barbara |  Permalink  |  Comments (0)
Found in Federal loans, Financial aid, International Students, Paying, Student loans, Travel, Tuition, Wells Fargo Bank

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 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

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

In January, I wrote about some colleges reducing tuition costs for families below certain income levels. I thought it was an interesting topic, and it seemed like a rather novel idea at the time, but it didn't generate any discussion.

Two months later, several more universities have followed suit — and not just big, prestigious ones like Stanford  and Brown , but smaller colleges and state schools, too. The Project on Student Debt actually keeps a running list  of schools that are either limiting or eliminating student loans from their financial aid award packages.

Sure, it might put me out of a job if student loans are eliminated altogether, but if these colleges can use their endowments to help low- to middle-income families afford education and avoid debt, I'm all for it. I was fortunate enough to not need to borrow money for college — I can only wish the same for students today.

However, I wonder if prospective college students (and their parents) are paying much attention to these financial aid policy changes — and if they're impacting where students apply for admission. Time will tell...

Posted by Staci at 12:30 PM |  Contact Staci |  Permalink  |  Comments (0)
Found in College, College selection, Debt, Paying, Tuition, 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

I was talking with a co-worker the other day who was telling me all about his vacation plans this year...how he had planned everything at the end of 2007 and had made all of his flight and hotel arrangements already.

It got me thinking: What do I want to do this year? And is there any place I could visit this spring?

Then it hit me: "Yes, there is!" As I was driving in to work, a commercial came on the radio. The voice had that familiar, friendly accent and hyped up places like Bondi Beach  and the Sydney Opera House . "Now is the perfect time to visit Australia!" the voice said, encouraging me to get info about Qantas flights .

I visited Australia  while in grad school. I really had no money, but a friend of mine worked for an airline and got me a "buddy pass" that allowed me to fly for a steal. Once there, I was also able to stay with my friend's relatives. Unfortunately, because we were flying standby, our trip was short, and I've always vowed to return.

Nowadays, I use frequent flyer miles  to go on vacation. But nothing is ever "free," and I still have to consider the cost of airport taxes & fees, hotel, meals, ground transportation, sightseeing, and of course, local shopping!

So, even though I really want to go, I have to ask myself: Can I afford to go? I could charge everything — I usually use my credit card anyway when I travel because it's safer than cash, adds additional insurance, the exchange rate is usually better, and I get rewards points for every purchase. But can I (or would I) pay it all back when I return?

What would you do? What are some of your vacation planning considerations?

Posted by Dinna at 10:00 AM |  Contact Dinna |  Permalink  |  Comments (0)
Found in Budgeting, Credit cards, Debt, Exchange rates, Looking back, Paying, Vacation, 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

With one child in college, one in preschool, and another one due any day now, college savings plans are never far from my mind.

I've given some consideration to a 529 Plan , but after looking over some of the details, I'm not so sure. There are a few pros and cons  to consider, but the thing that keeps stopping me is that if the money is not used for education-related expenses, there are heavy penalties to pay.

I certainly will encourage my kids to go to college, and hope that they do. But do I want to pay a penalty if by some chance they don't? It's not that I won't save money for their education — we're certainly investing and saving right now, if not in a college-designated fund — I just wonder if there isn't another more flexible option  that is still a smart choice.

Parents: How are you saving for your child's education? Do you have any concerns about the investment vehicle you've chosen?

Editor's note: There's a new addition to Caroline's family — her son Gus was born on January 25, 2008! Caroline will be on leave from the Student LoanDown for the next few months. Please join us in congratulating her!

Posted by Caroline at 10:10 AM |  Contact Caroline |  Permalink  |  Comments (1)
Found in College, Financial education, Money management, Parents, Paying, Saving, Tuition, Wells Fargo Bank

I'm older today. Well, you are, too. But I have to jump numbers today. Last year I did some evaluating when I turned 23. And I figured I'd do so again to see where a year older and (supposedly) wiser has gotten me.

To the naked eye, it may seem that I'm even farther from crossing "organize my finances" off my to-do list.

While the year has taken a toll on my finances — from major purchases to unexpected medical bills — I'd like to think the organization piece is there. I might not be in the green, but I am aware of where my money is being spent and how to use my income wisely.

I have to admit that 24 is one of my scary ages. The label "early 20s" is now off limits and full-fledged adulthood is required — at least that's how it works in my mind. So, it feels good to have my financial adulthood on the right track.

I've slowly come to accept my entrance into financial adulthood — however, I keep wondering when it's going to feel real. There are times when I'm sitting down working on my budget, or clipping coupons, or sorting through insurance statements, or transferring money to pay my mortgage when I sit back and think: Am I seriously doing this?

According to an older Money Magazine article , I have the mentality of a financial grown-up.

So why don't I feel like one?

Even a salaried job, mortgage, and 401k don't help me adjust my senses. Some days it seems like I'm dreaming and will wake up to find myself a teenager whose only financial responsibility is making enough tips as a waitress to stay remotely fashionable.

So what will it take? Joint finances with a spouse? Financial responsibility for dependent children? Will the way I feel ever reflect my financial maturity?

What helped you feel financially mature? Taking on student loans...or perhaps repaying them? Your first big paycheck?

Or maybe you feel the same way I do. You tell me: At what point do you really feel financially grown-up? Or do you ever?

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

Feeling disheartened about the time and effort it takes to complete the FAFSA  (Free Application for Federal Student Aid)? You're not alone.

But fortunately, the good folks at FastWeb!  have developed this short video to explain the process.

(Note: The following links to a video from a non-Wells Fargo website.)

I like this video for three reasons:

1. It's only five minutes long.
2. It's informative.
3. It's funny!

IMHO, it's definitely worth five minutes to take a look — and hey, it may save you some time and sanity in the future!

Posted by Staci at 10:21 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in College, Federal loans, Financial aid, Financial education, Paying, Student loans, Tuition, Wells Fargo Bank

It's January, and you probably know what that means — time to fill out your FAFSA (Free Application for Federal Student Aid) . The FAFSA is the best place to begin if you need financial aid (including student loans) to help pay for college.

Even if you think your parents make too much money to qualify for aid, you should still look into the FAFSA. Not all aid is based on financial need, and many factors go into the formulas for determining eligibility.

We always recommend that you fill out your FAFSA as soon after January 1 as possible. Some state aid is awarded based on your FAFSA application, and those deadlines vary , so it's in your best interest to get your FAFSA submitted as soon as possible. This is a great article  that makes a good case for filling out the FAFSA and lists all the documents you'll need on hand before you get started.

You can get a paper FAFSA from your high school guidance counselor, or you can fill it out online . This article  covers some of the common mistakes people make when filling out the FAFSA that can jeopardize your chances for maximum aid. Check it out to avoid making any costly blunders.

I'm curious — especially for you first-timers — how you feel about filling out the FAFSA. Did you fill it out online, or use the paper form? Was the application too long and complicated, or was completing it no big deal?

Posted by Caroline at 10:20 AM |  Contact Caroline |  Permalink  |  Comments (0)
Found in Back to school, College, Federal loans, Financial aid, Financial education, High school, Paying, Tuition, Wells Fargo Bank

I've spent the past several days shivering. It has been a bit nippy  in South Dakota, and I've been feeling it — especially at home. Last night the heat of a warm laptop on my legs was the only thing that kept me going...well, that, and the episode of Notes From the Underbelly  that I DVR'd while I was snowblowing the driveway (the laughter keeps my body warm, too).

OK, I'm being very melodramatic here. You see, I've turned down the thermostat, and it's taking a while to adjust.

December's gas bill arrived, and with it came some sticker shock. From what I've heard from fellow homeowners, I'm actually getting by pretty cheap, but it was more than I had budgeted.

So what happens when you go over budget? For me, I pull the funds out of a different area like entertainment or eating out. Unfortunately for Staci, this means my lunches lately have been Lean Cuisine , not Jimmy John's .

And to avoid going over budget next month, I made the executive decision to use a little less gas. Hence the thermostat now resting a few degrees lower, which when armed with an oversized hoodie and my Mary Jane Sock Monkey  slippers really isn't that bad.

Does your budget have a little give and take? What categories do you cut back when your expenses come in over budget?

Posted by Barbara at 11:30 AM |  Contact Barbara |  Permalink  |  Comments (1)
Found in Budgeting, Financial education, Money management, Paying, Wells Fargo Bank

Post car breakdown, my father suggested I start thinking about purchasing a new vehicle when summer rolls around.

A car loan can be a large undertaking. Before I got too committed to the idea of a new vehicle, I decided to first research my credit score and credit report. Both affect the rate I would get on a car loan.

There are a number of ways to see how you're using your credit. I chose to take advantage of a free trial of FICO® Score Watch® —a program th