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!

Posted by Caroline at 11:35 AM |  Contact Caroline |  Permalink  |  Comments (1)
Found in Back to school, College, Federal loans, Grants, Money management, Paying, Private loans, Scholarships, Student loans, Tuition, Wells Fargo Bank, Work-study

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?

Posted by Caroline at 10:00 AM |  Contact Caroline |  Permalink  |  Comments (0)
Found in Back to school, Budgeting, College, Credit cards, Debit cards, Federal loans, Financial aid, Financial education, Parents, Preparing, Student loans, Tuition, Wells Fargo Bank

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?

Posted by Staci at 09:15 AM |  Contact Staci |  Permalink  |  Comments (7)
Found in Back to school, College, Federal loans, Financial aid, Financial education, Grants, Paying, Preparing, Student loans, Tuition, 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

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 (3)
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

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

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

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 (2)
Found in Back to school, College, Federal loans, Financial aid, Financial education, High school, Paying, Tuition, Wells Fargo Bank

In recent weeks, several colleges have followed Harvard University's lead  in reducing tuition costs for families below certain income levels. Student loans are being replaced with increased grants — most of these funded by the schools' endowments . Just yesterday, Yale University announced a similar initiative .

Sure, this is good news about college tuition and affordability — for some. But not all schools have such well-funded endowments or are in a position to make these kinds of sweeping financial aid changes. And as such, the majority of students are still struggling to afford their rising tuition.

So, tell me what you think: Are changes like the ones Harvard and Yale are making a step in the right direction for making education more affordable, even if they're just for a select group of students and families?

Posted by Staci at 10:41 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in College, College selection, Financial aid, Financial education, Grants, Student loans, Tuition

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

Calling all parents of high school seniors!

It's now time to take on a not-so-fun parental duty. It's time to have "the talk" with your senior: that uncomfortable discussion about college costs and their future ability to repay their student loans.

In almost every article I read these days about student debt, there are a few anecdotes about students who spent thousands upon thousands of dollars on college, only to find upon graduation that their salary is completely out of whack with their debt load.

I'm always left wondering if the student either: 1) had no idea of the earning potential in his/her chosen career; 2) knew the earning potential but just didn't realize how that would translate in a practical sense; 3) just chose not to think about finances at all until it was time to pay.

It's easy to understand why 18 year-olds would have a tough time understanding how their salary translates in the real world. That's where parents need to step in during the college-selection process and give the following short, but pointed speech:

I know you're very interested in attending "Really Expensive College," but we're going to have to consider what kind of financial aid package they offer you. Because you plan to study XYZ, you'll probably start out at a salary of around $25,000. Once we see your financial aid package, we'll have to figure out how much money you'll need to borrow, and what your monthly payments will be once you graduate. If it's going to be too much to handle on your salary — and I can help you figure that out — you're going to have to consider "Less Expensive College ."

Of course, the discussion may not be that simple — especially if your child is very attached to the idea of attending an expensive school and following a career path that doesn't justify the price tag. But hang in there, parents, and keep them focused on financial reality. They'll thank you one day.

Parents: are you talking with your kids about college costs?

Posted by Caroline at 09:33 AM |  Contact Caroline |  Permalink  |  Comments (1)
Found in College selection, Debt, Financial aid, Financial education, Jobs, Money management, Parents, Paying, Post-college, Preparing, Student loans, Tuition, Wells Fargo Bank

Last month we launched our "Ask the Expert" tool — and since then, your questions have been steadily rolling in. At first I was surprised by the number of inquiries we received this way. I thought the Student LoanDown community would use the comments section to ask questions — but I guess you take that section literally and use it for actual comments, not questions!

Nonetheless, I'm glad you're finding "Ask the Expert" useful. It's certainly useful for us bloggers because we learn exactly what kind of information you'd like more of — and then we can share it with the rest of our community.

So here's a question we received from a concerned parent about financial aid timing (certainly appropriate as spring semester is just a few months away):

My daughter is a freshman. We did not take out any loans for the first, fall, semester, but would like to take out one for the spring semester. Is it possible to get a Stafford or Perkins loan for the spring semester, or have we missed this cycle and have to wait for the fall of 2008?

And here's my response:

No, you haven't missed the cycle. (Whew!) If you haven't already completed the FAFSA  (Free Application for Federal Student Aid), that's your first step. The 2007 FAFSA covers the 2007-2008 academic year through June 30, 2008, and will determine your daughter's eligibility for financial aid.

I'd suggest that you check with the financial aid office at your daughter's school. Low-interest Federal Perkins Loans  are based on financial need and are awarded on a first-come, first-served basis, so those may not be available. But low-interest Federal Stafford Loans have both need-based and non-need-based components (subsidized and unsubsidized loans), and as long as your daughter is attending an eligible school at least half-time, this should still be an option for her.

One last thing: As a parent, if you're interested in borrowing to help your daughter pay for school, check out the Federal PLUS Loan for parents. It's also not based on financial need but does require a minimal credit check.

Please keep your questions coming — they're interesting, they're relevant, and ultimately, they make this a better blog!

Posted by Staci at 09:39 AM |  Contact Staci |  Permalink  |  Comments (6)
Found in Back to school, College, Federal loans, Financial aid, Financial education, Looking back, Paying, Student loans, Tuition, Wells Fargo Bank

We start this post in my cardiologist's office, and we'll finish in a financial aid office.

Earlier this year, after a number of routine tests, I sat in an exam room waiting for my doctor. It's a visit I make annually because of a congenital heart defect, and for the past 14 years I've left the office with instructions to maintain the status quo.

But not this year. Instead, I got a detailed explanation of a problem and the possible solutions.

Post minor breakdown, my next step was to research my situation as much as possible. I trolled the Internet for similar cases and discussed my previous surgeries with my parents. As I became more familiar with the medical terms (my favorite was "hypertrophy") , I started the list. Every question that popped into my head went on the list — even if it seemed stupid.

On my next visit to the doctor, I asked the professionals for the answers. I got the advice I needed, felt confident with the information, and was able to make my decision.

Advisors are amazing resources. But professional advice is even better when complimented by your own knowledge, whether you're shopping for a heart surgery or a student loan.

When you're looking to finance an education, it's important to listen to your financial aid officer. After all, they're the professionals. But you shouldn't stop there. Research your options — scholarships, loans, lenders — so you can make an informed decision.

Then you can compile your own list and go back to your financial aid office with any questions you have — even if they seem stupid.

As part of this blog community, you're off on the right foot. Here are a couple other online resources that can help you learn the fundamentals:

• Department of Education Student Aid Portal 

• FinAid! Guide to financial aid 

It's important to make informed choices. While we turn to professionals for advice, we still need to be knowledgeable because in the end, we're the ones who are impacted by our decisions.

Posted by Barbara at 09:45 AM |  Contact Barbara |  Permalink  |  Comments (3)
Found in College, Financial aid, Financial education, Looking back, Paying, Preparing, Scholarships, Student loans, Tuition, Wells Fargo Bank

Eventually Charlie's* transcripts were released and he obtained his degree — summa cum laude  and Phi Beta Kappa  — from the University of Minnesota. I told you he was smart! But with the degree and all its honors came a wide range of emotions, including severe financial fear.

Once the debt had been paid, how did you feel?

Honestly? I felt like telling the messed up and unsympathetic bureaucracy of that school to take a flying leap.

But, most importantly, I finally felt free and unfettered. I felt like nothing else, no matter how bad, would ever get me down. I felt grateful to my family and my friends for being constant sources of emotional support during the dark years of debt. Most of all, I am grateful to my father, who worked up to four jobs at one time to keep our family financially afloat and to make headway in the debt owed.

I will say this, and perhaps it is not entirely appropriate, but money is an emotional issue for me, and this is an emotional response to the issue. I said I am grateful to my father for all he did for me and for my family during some very dark years financially. But because my dad worked so much and was so burdened with the stress and constant worry about this debt, he became seriously ill. In the end, he was diagnosed with cancer and passed away when he was only 61 years old. For me, this debt will always be linked to the emotions of my father's untimely death.

What advice would you have for others who may be in a similar situation?

Start talking about money BEFORE you even THINK of applying to school. And honestly talk about what your family can afford and what sort of debt you can support. Students should do a lot of research, speak with the financial aid offices, and apply for every loan and grant available. And remember that there would be NO schools if it were not for the student. Remind the colleges of this and do not allow yourself to be brushed off by the bureaucracies.

How has this experience changed how you approach finances?

As I have said, money is linked to emotions for me. It is not the simple clear-cut idea of dollars and cents. It's linked to my father's death and to my own struggles to support myself and finance my continuing education. I find myself very cautious when it comes to finances and loathe to repeat the experiences of the past. However, I am much less emotional and terrified of money and debt than I once was.

How did the situation end up impacting your credit?

Miraculously, the debt owed did not reflect negatively on my credit. When I began requesting my credit reports  from the three major credit agencies, I combed through them diligently to see if there was anything that would be a black mark against me.

That huge sum of money owed, just sitting there and dragging me down, that's what truly affected me mentally and emotionally. The anxiety and stress of trying to come up with a plan on how to pay the debt was arduous, but, eventually, a payment plan was agreed upon with the school and the whole amount was paid off last year.

Even though your credit didn't take a negative hit, what made you decide to work on improving it?

My partner and I have a goal of purchasing a house within the next year or two. As such, we wanted to make sure there were no skeletons in our financial closets and that we had everything in order before we began the process of applying for a mortgage. Knowledge IS power and it's important to understand that money SHOULD work for YOU, not the other way around.

I review my credit reports every six months to check for any discrepancies and to see how my credit rating is improving, pay my bills ahead of time, and pay well over the minimum amount due. I've instituted an aggressive savings plan, including the purchase of CDs.

How are you feeling about your financial situation these days?

I make a lot of jokes about Suze Orman  and how I hate the fact that I cannot be as capricious as I would like in my spending habits because of her financial guidelines.

But I do have her "tough love" tactics for financial health to thank for being in a much better place than I have ever been. I do not feel as weighed down and helpless as I once did. I feel very positive and confident that my goals for continued improved credit and the purchase of a home are well within my reach.

I'll have you know that I'm very proud of my dear friend Charlie. Throughout this whole financial ordeal (and there were some seriously trying times), he never let it get the best of him. When his debt was paid last year, we celebrated — celebrated his dignity, his tenacity, and ultimately, his freedom!

If Charlie's story has given you something to think about, I hope you'll share your thoughts.

Oh, and in case I didn't make it clear before, I'm thrilled about the prospect of getting his canned goods and embroidered dishtowels for Christmas!

* Names have been changed to protect the financially challenged.

Posted by Staci at 11:23 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Budgeting, College selection, Debt, Federal loans, Financial aid, Financial education, Looking back, Money management, Parents, Student loans, Tuition, Wells Fargo Bank

After Charlie* embarked on his Ivy League adventure, he thrived. But unbeknownst to him, money was a problem.

Charlie, did you know that you had outstanding tuition bills?

For the year and a half I was at school, I had no idea there were any problems with paying for my tuition. If my parents received any sort of statements or letters, I was never privy to them.

I do not blame my folks for keeping this information from me. I think their first instincts were to protect me and to try to figure out on their own how they were going to come up with this huge sum of money to see their firstborn through his college education. And, the way I was raised, this is what parents do. They find a way, any way, to make their kid’s dreams come true, no matter what the sacrifices or hardships. And we were not raised to discuss the “sordid topic of coin.” So this crisis (and believe me, it was a crisis) just simmered and boiled over. And my entire family and I suffered for it.

How did you find out that you had to leave school?

I was home for the Christmas break. I had packed up all of my bags and even had some boxes addressed to my campus address that I needed to be mailed. I remember walking into our kitchen and telling my parents we had to go to the post office that day so the stuff would be at school when I arrived. They didn’t respond; they just sat there, very quiet. And I knew. I knew something was terribly wrong.

Mom and Dad broke the horrible news to me that I would not be going back to college and that Mom and I would be leaving the next day to collect all of my belongings. Of course, I was thunderstruck, devastated, shocked. I did not know how any of this could have happened. HOW could my carefully planned life have gone so terribly wrong? I remember a lot of tears. I was in a stupor for the entire drive and spoke very little to my mother.

When I got to school, I had to tell all my friends, as well as all of the freshmen I counseled (I was a Resident Counselor for my sophomore year) that I had to leave and I did not know if I would ever be coming back. I had less than 12 hours to pack up my entire college experience, stuff it into a tiny car and leave it all behind me. Once I got back home is when the anger and the fury at the school and what they had done to me and to my family begin to really take hold.

Because of the unpaid tuition bill, it took several years before your school would release your transcripts — meaning that you couldn’t continue your education elsewhere. How did that situation change your education plans?

I had no choice but to immediately go to work. With no college degree, I did not have a lot of options, but I did find a job at a local book retailer. I worked for several years in my home state and then transferred jobs to a neighboring state. Like any twentysomething , I needed to find my independence.

I always planned to go back to college. It was simply a question of when. And the WHEN was determined by the release of transcripts from the school. My education plans never changed — they were only postponed.

When all was said and done, how much did you owe?

We owed over $30,000, which included late fees and fines.

How long did it take to pay off the balance?

15 years.

Tomorrow, the final chapter: lessons learned (and emotional baggage packed).

* Names have been changed to protect the financially challenged.

Posted by Staci at 11:35 AM |  Contact Staci |  Permalink  |  Comments (2)
Found in Budgeting, College selection, Debt, Federal loans, Financial aid, Financial education, Looking back, Money management, Parents, Paying, Student loans, Tuition, Wells Fargo Bank

It's October, which means that high school seniors all around the country have begun their college searches in earnest. They're taking entrance exams, filling out applications, visiting campuses, and setting their hearts on particular schools.

But are they thinking about how they're going to pay for it?

Are you?

A few posts ago I introduced my best friend Charlie* and his financial challenges. This week, I'm going to tell you how he got there (and hopefully, how you can avoid some of the pitfalls he experienced).

It all started in our senior year of high school, right around this time of year. Charlie was (and still is) my brilliant friend, and I always knew he was destined for something great. So it was no surprise to me that he was admitted to some very prestigious colleges.

Charlie, how did you find yourself in the Ivy League? 

Like many other prospective college students, the summer before my senior year in high school my family and I took a tour of the colleges and universities in which I had an interest. We took the incredibly long drive from South Dakota to the East Coast to look at seven campuses, both state and Ivy League schools. Of course, the academics and the prestige of attending an Ivy League school were very enticing.

In the end, I got into all the schools except for one. The spring of my senior year, I was invited to visit two of them for a weekend, to get a better feel for campus life, meet other students, etc. (I clearly recall receiving letters from both schools, telling me what an asset I would be to the student body, how impressed they were with my academics and extra-curricular activities, how I was very unique and had a lot of potential. Well, for an 18-year-old kid from a square Midwestern state, that's wonderful praise.)

I had a tough choice, but I knew that my father in particular would be over the moon if I decided to attend an Ivy League school. I remember walking into one of the large halls off the campus green and approaching my dad, saying, "How would you feel about having a child with an Ivy League degree?" The man literally leaped up and down, clapped his hands, and gave a whoop. He was so, so very proud. And that was very, very important to me.

Why was it important for you to attend this type of school?

Honestly? Because it had cache. Because it had status. Because I wanted to be one of the very few from my graduating high school class to attend an Ivy League school.

Most importantly, though, because I had EARNED it. I had worked so, so hard for four years to get excellent grades and to participate in a myriad of extra-curricular activities. My entire focus and direction while in high school was to be an academic all-star so that an Ivy League school would be able to look at my application and think, "Wow! We cannot pass this kid up! Let him in!"

Was the cost of education an issue for you? Your parents?

The topic of money was never, ever brought into the equation in my final decision. My parents never discussed it with me, and, as an 18-year old I assumed what most children do: that Mom and Dad would provide. How was I to think differently? We lived in a beautiful house with a pool in an affluent upper-middle class suburb. Why wouldn't I be able to attend whatever school I wanted, no matter what the cost?

I will also say that I do not recall the high school counselor with whom I spoke about colleges providing me with information about financial aid. Also, when I visited the campus and attended various programs to learn more about the school, I do not remember getting a lot of information about how to pay for college.

After I did get in and my family came to visit me in the fall of 1989 for Parents' Weekend, my folks did meet with financial aid. I think it was at that point, unfortunately, too late in the game, that they realized that an Ivy League education would be very dear and they just did not have the funds to see me through four years.

Of course, at that time, all federal loans and grants had been meted out for the year, so there really was nothing left for me. And, because my parents made a decent living, they did not see me as a hardship case. My parents were turned away without any help or any solid and feasible suggestions for paying for my education. In fact, I later learned the loan officer told my parents, "If we had known your son would need such significant financial aid, we never would have admitted him."

Next up: What happened to Charlie when the money ran out.

* Names have been changed to protect the financially challenged.

Posted by Staci at 10:00 AM |  Contact Staci |  Permalink  |  Comments (0)
Found in Budgeting, College selection, Debt, Federal loans, Financial aid, Financial education, Looking back, Money management, Parents, Preparing, 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

Anyone interested in free money for college? Scholarships aren't always easy to come by, but they're definitely worth the effort.

If you're a high school senior, you should begin your scholarship search now. Deadlines come up very quickly, and some scholarship applications are more work than others. Barbara offered a great post a few months ago full of advice about seeking out scholarships.

To get you started, I've got a couple scholarship opportunities to tell you about:

• Wells Fargo CollegeSTEPS® Program & Scholarship Sweepstakes: This is an easy one. It's a program that offers free college-planning tips (via email) AND the chance to win a $1,000 college tuition prize. Enroll online at the above link, and you're done. You can sign up for the CollegeSTEPS Program at any time during high school (freshman through senior year). Once you enroll you'll start receiving grade-appropriate college-prep information (don't worry, we don't bombard you – you'll get a couple emails each school year from us). During your senior year, you'll automatically be entered for the sweepstakes drawings. Check out the official rules to ensure that you're eligible.

• Wells Fargo/UNCF Scholarship Fund