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Barbara

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Each year my hometown newspaper does a special feature at graduation time. Now, keep in mind that I'm from a town of about 1,200 people.  The paper publishes all the high school graduates' photos and includes their activities and honors, as well as their future plans.

As I read about the class of 2009, I had some interesting reactions: First (since I remember the birth of many of the graduates), am I really that old?

After that shock wore off, I started reading their future plans. To be honest, I got a little judgmental. So-and-so is going to a technical college to learn a trade. "Good for them," I thought, "saving money and getting the education you need." So-and-so is going to study elementary education at an expensive private school. "Well, that's not a smart choice," I thought, "probably over-borrowing considering their chosen field."

Obviously, there is much to consider when you're choosing your college.  You want to make sure that you'll feel comfortable on campus, that it's the right size, the right distance from home, etc. However, you also should make sure you're in the right price range for the degree you want to get.

Of course, there are some reasons you may want to attend a more expensive school that make perfect sense — like if your chosen program is one of the best around or if you were awarded a better scholarship package.

But if you're going to be borrowing $30,000 annually for four years to end up with a degree and a job that pays a maximum of $30,000, you might want to think again — and consider a lower-cost option.

How did cost fit into your college choice?

Caroline

If you're a high school senior, all the realities of college are probably getting more real by the day. Specifically, the reality of how much college costs.  Starting now, you've got just a few short months to pull together the financing for your first year.

That doesn't mean it's time to panic. It's time to get to a Financial Aid Night, if you haven't already attended one.

What's a Financial Aid Night? It's an evening dedicated to providing information and answering your questions about getting financial aid for college. Typically your school will host it with help from a bank or other lending institution.

It's a great time to go with your parents (yes, be sure to bring them) and get a good understanding of the financial aid process. You also learn more about grants and scholarships that are available. The knowledge you'll gain will help you move forward confidently to get money for college.

How does it work? There will probably be a presentation about the financial aid process and the opportunity to pick up brochures and information about loans and scholarships. You might also have a chance to visit with a banker to learn more.

If you haven't seen notices for a Financial Aid Night at your school, check in with your guidance counselor about when one might be scheduled. If you're really in the dark about financial aid, it's important that you attend sooner than later — deadlines rule when it comes to getting money for college.

If you've already attended a Financial Aid Night, let us know how it went. Did you find it useful?

Editor's note: Over the next few months, The Student LoanDown will be running a series of posts focused especially on high school seniors. We'll be attempting to cover lots of topics of special interest to this group as they count down to graduation and get ready to head off to college.

Barbara

Caroline has already gone over some details of the FAFSA for beginners, but what about those of you who filed a FAFSA (Free Application For Federal Student Aid)  last year?

You need to complete a FAFSA every year you're in school, even if your financial situation hasn't changed. Don't worry — renewing your FAFSA takes much less time than the initial application.

The Department of Education will send you a Renewal Application or a reminder of your PIN (Personal Identification Number) to apply online, and you may also get a reminder from your school. However, you don't have to wait for either notification to apply. If you need a reminder of your PIN, just head to the PIN Website. 

And while it's best to file your taxes early to have the correct information, you don't have to wait. Use December pay stubs to estimate income for the year. You'll have the opportunity to correct your application if needed. Plus, applying earlier ensures you meet your deadlines  (some aid is first come, first served).

If your situation has changed — like a dramatic shift in your income, a divorce, or a parent's job loss — you may want to talk with your financial aid office about how it could affect your financial aid award. They'll be able to walk you through what may be different this year.

Once you've applied for federal aid, keep on applying. Seek free money like scholarships and grants.  Even though you may receive enough financial aid to cover your costs, you don't have to accept everything you are offered. Some aid, like unsubsidized Federal Stafford Loans, will need to be repaid with interest — so the more funding you find that doesn't have to be repaid, the better!

Staci

Happy 2009! Have you made any New Year's resolutions? 

I'm not a particularly successful resolution-keeper. Last year, I vowed to eat healthier, and for six weeks it was nothing but oatmeal for breakfast, salads for lunch, and Lean Cuisine®  for dinner. By the time Valentine's Day rolled around, I felt so deprived that I consumed a two-pound box of See's Candies®  in one sitting.

All bets — and subsequently, all resolutions — were off.

Looking back on it, I know my resolution was too general — not to mention highly unrealistic! I'm guessing that many resolution-makers find themselves in similar situations.

Depending on what stage you are in your student life — soon-to-be-student, current student, recent graduate — here are a couple of specific, achievable New Year's resolutions you could adopt in 2009:

1. Apply for at least one scholarship. Remember, free money for college means less money you'll have to borrow, and plenty of scholarships are out there for those willing to do a little work. Find one that's right for you by checking with your high school guidance counselor, your college financial aid office, your employer (or your parents' employer), or a scholarship search.

2. Before you apply, read the fine print. Know exactly what you're getting into before you sign a credit card application or a student loan promissory note, because your signature indicates that you agree to the terms and conditions. Pay attention to interest rates, fees, grace periods, and repayment periods. If you don't understand anything, ask — before you sign.

3. Make an extra student loan payment. Student loans don't have prepayment penalties. At least once this year, scrounge up enough cash to throw an extra $50 at one of your student loans, preferably the one with the highest interest rate. Just be sure to communicate with your lender and let them know exactly which loan you want the extra payment applied to.

My one resolution for 2009? Not to eat an entire box of See's Candies in one sitting. Sounds pretty doable, right?

Staci

Here we are, approaching holiday season at breakneck speed. In just a few short weeks we'll be with family and friends for food, football, and fiscal stimulation!  But most of all, we'll be remembering what we're thankful for.

This past weekend I got an early taste of Thanksgiving in the form of a scholarship banquet at my alma mater . This was an opportunity for all the student scholarship recipients and their families to connect with their scholarship sponsors, and as a member of an alumni board that awards eight annual scholarships, I had the honor of attending.

There wasn't any turkey, but there was no shortage of gratitude.

That's not a surprise, since families are struggling more than ever to keep up with college costs. According to a recent publication by the College Board , average published tuition, fees, and room and board for in-state students at public four-year colleges and universities in 2008-09 is $14,333. For private colleges and universities, the cost jumps to $34,132.

Yikes. With numbers like these, every scholarship counts when paying for college.

At the banquet, Kelsey, a spunky junior majoring in music and education, went out of her way to thank me for her scholarship. In addition to her full-time coursework, she works two jobs, volunteers in an at-risk classroom, and participates in a host of extracurricular activities like choir and theatre. Kelsey made it clear that without the investments of others, she wouldn't be having the meaningful college experience that she is.

So for the giving and receiving of Kelsey's college scholarship, I'm thankful. Who knows what contributions this hardworking young woman will go on to make — what impacts she'll have in the lives of her future students?

If you've received a scholarship to help pay for school, how have you expressed your gratitude? Or if you've given one, why are these investments important to you?

Caroline

You're probably starting school soon, if you haven't already. So let us know how your funding came together for fall semester.

How are you paying for school?  Scholarships, loans, grants, Work-Study?  All of the above?

Did you hit any bumps on the road in figuring out your financing? Got any questions?

Let us know how it went!

Caroline

In this last month before school starts, you've probably got a long list of things that you need to do before heading off to college — especially if it's your freshman year. While you're making preparations, be sure you cover all the basics on your financial to-do list.

Don't have one? Luckily, I've made a handy checklist of things to help get your finances organized before you head off on your own.

1. Make sure your college financing is in order. Taking out student loans? Be sure you have contact information for your lender and your school's financial aid office so you can work with them to ensure you've got your tuition bill covered.

2. Set up a bank account. If you don't already have one, be sure you've got a savings account and an ATM card. If this is your first time owning an ATM card, be sure you know how to use it to make both deposits and withdrawals.

3. Get a credit card   for emergencies. This is nice to have as a backup plan — especially if you're taking a car to college. But be sure you understand the interest rate and how it's calculated before you ever use it.

4. Create a budget. Remember that this will be a working document that will be adjusted as you learn more about how you spend money when you're on your own. But for now, make a list of all the expenses you can anticipate at this point, as well as the income you plan to be generating.

5. Get your financial information organized. Buy a flexible file folder and keep track of any financial papers that you receive in hard copy (statements from your bank, student loan papers, etc.).

6. Talk to your parents  . Visit with your parents about money and expectations. Share your budget with them. (See item #4!) Make sure you understand what expenses they expect you to cover, and what they will pay.

7. Make a bill-paying plan. If you're going to start receiving your own bills for the first time, make a plan to ensure that they get paid on time. Will you pay them online or by check? Will you pay them as they come in, or set up a couple times a month to get them all paid at once?

This list should get you started. Now, what other financial "to-do's" do you have before college?

Staci

Student LoanDown readers, recently we received this question (typos and all — we publish 'em as is) on one of my older posts from kat s., a concerned grandmother:

I would like to ask you a queston. My grandson was attendin college. One semester he could not go because he had gotten mononucleosis. He was so sick from that. He was going to school through having a studeent loan. He also went on the Pell Grant. He has his own apartment and his only means of support is what he makes at Applee's. Whgich he makes pretty good money. He wants so badly to go back to college and finish ge4tting his degree, but even though the student loan place where he got his loan has so far said nothing since he had to skip the one semester, he feels thagt if he applies again that they will turn him down and make him try to pay back his loan at one time. He wants to go on the Pell Grant instgead of taking the ute of increasing the student loan. Is there a way that this can be done while having the outstanding loan balance from the student loan or will they make him pay back everything right away before he can go back.

Well kat, you and your grandson certainly are not alone in your concerns about student loan repayment. I hope my answers will calm your fears and help get your grandson back to school, where he belongs!

First of all, if your grandson is not currently attending school but has not heard from his lender yet, it's possible that he is in his grace period. On Federal Stafford Loans (the most common type of student loan, and the one I'm assuming he has) students have a six-month grace period between the time they graduate, leave school, or drop below half-time enrollment and the time that they have to begin making payments.

Once your grandson does have to start making payments, he won't have to pay back the full student loan amount all at once. Generally student loans are repaid over time — not in an immediate lump sum.

However, if your grandson doesn't know what's happening with his loans right now, ultimately it's HIS responsibility to find out. The worst thing he could do is bury his head in the sand  and pretend like those obligations don't exist. Please encourage him to contact his student loan lender, let them know that he is not attending school right now, and work out a repayment plan. Ignoring the issue could damage his credit and/or impact his eligibility for future student loans — big risks, in my opinion.

When your grandson is ready to go back to school, he also should contact his lender. The lender will put his loans into an "in-school" status, and then he will not be required to make payments as long as he is enrolled at least half-time.

In terms of the Pell Grant , I certainly can see why your grandson would prefer to use that to fund his education — it's a grant, which doesn't need to be repaid! However, please keep in mind that Pell Grants are based on financial need and are awarded to low-income students. If he qualified for a Pell Grant when he initially started school but now is making more money at his job, it's possible that he won't be able to qualify for it again. Your grandson's best bet would be to talk with the financial aid office at his school and see what kind of funding he's eligible for when he's ready to return.

Sure, student loan repayment can be scary, but when you have some information on your side, it doesn't have to be.

Now, what other questions can we answer?

Barbara

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!

Barbara

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?