Archive for the ‘Student Loans’ Category

How To Graduate From College Debt Free…Or Close To It.

By: Kristina | Date posted: October 31, 2011 (7:30 am)

Good Morning Everyone and Happy Halloween.  Today we are starting a new series called “Me, My College Education, and My Money” This new series will discuss everything about our College Education from the cost of tuition and books to the job possibilities within our program after graduation.  Our resource for most of this information is thanks to The Globe and Mail.

 

Graduate from College Debt Free (Or Close To It)

I am proud to say that I graduated from College with a 4 year Bachelor’s Degree; unfortunately I did not graduate from college debt free.  I moved away from home to attend college in a city 7.5 hours away from my family; from my own personal experience I feel that it is almost impossible to graduate from college debt free if we don’t live at home while studying.

If we start saving early in our teenage years we could graduate from college debt free.  If we starting working part time while we are in high school we could start saving money for college which will help with the cost of tuition, books, and living away from home while attending college.  Unfortunately, many young students prefer to live in the moment and spend their money, rather than save it.

Graduating from College Debt Free is a great goal, but it may not be a reality for everyone.  But don’t worry because Green Panda is here to help!  Students can take little steps throughout our college years to help us graduate from college debt free, or at least close to it.

 

How To Save Money in College

Here are 10 Great Tips to Help Us Save Money in College:

1. Start Saving Early.  Saving money doesn’t only mean that we have to put money aside from our part time jobs.  It also means that we have to cut down on our monthly bills and expenses.  If we spend less money, then we can save more money.

2. Consider Alternatives.  A 4 year College Degree may not always be a financial option for everyone.  We may consider less expensive education options such as Community College or Trade School.  If you are planning to go away to College consider spending your first year or two at a school closer to home and then transfer after you have money saved up.

3. Plan Your Education.  It will be helpful to research the cost of living in the city where you want to attend college.  If you know how much it costs for rent, your monthly bus/subway pass, as well as the cost of your tuition and books then you can better plan your budget and know how much you need to save.

4. Maximize Awards.  Check your College Student Center for local bursaries and scholarships that are available to first year, second year, third and fourth year students.  Some bursaries and scholarships are also available for students in specific programs.

5. Create a Reasonable Budget.  This is where Planning Our Education comes in handy.  If we know the costs of our expenses then we can plan our budget.  If we live on a fixed income then we should also live on a fixed budget.  The key to a good budget is to make a little room for everything, if we sacrifice too much then we will never stick to it.

6. Save on Text Books.  Try to buy Text Books used.  Sometimes 3rd and 4th year students will sell their books to 1st and 2nd year students at a discounted price.

7. Work Part Time.  I liked working part time in College.  It was a nice break from school and it gave me some extra money.  I made some great friends at my part time jobs.

8. Quit Your Car.  Cars are a huge expense.  It is definitely cheaper to take public transportation. Most College Students live near campus anyways; your car is just a luxury and unnecessary expense.

9. Learn About Cash Flow. If you spend less than you earn you will always have money and keep out of debt.

10. Be a Stingy Gourmet.  My biggest regret before moving away to College was not learning how to cook. Eating out is expensive. Trust Me…You Want to Learn to Cook.

 

Photo by SpindilerHades

How Young People Get Into Debt…And How To Get Out Of It.

By: Kristina | Date posted: October 25, 2011 (7:30 am)

Good Morning Everyone.  Today we are discussing our Student debts.  Today we are talking about everything related to our Credit Cards, our Lines of Credit, and our Student Loans. This post will be sort of a “what not to do” guide to staying debt free and learning how to use our credit products responsibly.  We are going to discuss how young people get into debt, what types of debts are ok for students to have, how to break bad financial habits, and what steps to take in order to get out of debt.

 

How We Accumulate Student Debt

Many of us can not afford to go to College and therefore we apply for credit in the form of Student Loans or a Student Line of Credit.  Many of us are not able to work while we study and therefore we apply for a student credit card to help us pay for our monthly expenses.  They key to applying for credit while we are still a student is to apply for efficient credit products.  We have to keep in mind that Student Loans are for Student expenses, not personal shopping.

 

Types of Student Debt

A Student Line of Credit can be a very efficient credit product.  Usually Student Lines of Credit are a great type of debt for students to have because they are flexible and they have beneficial interest rates.  Lines of Credit grant Students a fixed amount of credit; sometimes this amount is based on our income and sometimes it is based on our program of study.

We are only charged interest on the portion of the Line of Credit that we use.  While we are still studying we usually don’t have to make payments on our Line of Credit, and for a certain period of time after graduation we are required to make interest only payments.  The interest rate on Student Lines of Credit is usually lower than regular Lines of Credit.

A Student Line of Credit is usually given to Students from Banks.  It is a revolving credit product which means that we can spend up to our approved limit and as we repay our debt it becomes available to us for use again…like a revolving door.

Student Loans are very similar to Student Lines of Credit except that Student Loans are usually given to Students from our State or Federal Governments.  Some colleges offer Student Loans directly to their Students.  A Student Loan is a fixed credit product which means that we are granted an initial amount of credit and we will have to pay back that amount in full after graduation.  A Student Loan is not revolving and once the loan is repaid it is closed; therefore we no longer have access to the money.

A Student Credit Card may be the easiest type of credit for Students to obtain, but it can also be the most harmful to our good credit score if we misuse our Student Credit Card. There are no regulations on how we choose to use the available money on our Student Credit Card.  Unlike Student Lines of Credit and Student Loans the monthly payments on our Student Credit Card do not have to be automatically repaid.

Student Credit Cards require us to make only a minimum payment each month; the full balance does not have to be repaid.  This can be very dangerous for Students because we can carry a balance and we are charged interest on the full unpaid balance, this can be very costly.  It’s easy to accumulate debt but it can be very hard to pay it off.

 

Keep these tips in mind when trying to pay off your Student Debts

1. Don’t Ignore Your Debt.  It will always be a burden until it is paid off.

2. Don’t Make Only Minimum Payments.  Interest can be very costly.

3. Don’t Get More Credit Cards.  Having a lot of debt doesn’t make us financially responsible.

4. Don’t Charge It If You Don’t Have the Money.  Need I say more?!

 

Photo by Hagge

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The Opportunity Cost of a College Education

By: Kristina | Date posted: August 16, 2011 (7:30 am)

Good Morning Everyone! I hope you all had a lovely Monday; it was my first day back to work after my vacation and to be honest it was a little chaotic.  The first day back to work after a vacation is always hectic; but yesterday was extremely chaotic with phone calls to return, emails to answer, and clients who came in without appointments because they knew I was back from vacation.

Today we are discussing the important question of whether we should go into debt in order to get a college education.  Are you considering applying for a student loan? Or are you sacrificing some aspects of your life in order to graduate debt free? Some people feel that student debt is ok to have because it is money well spent on a college education.  Some other people feel that student debt is not a good idea because they don’t want to start their life after college with thousands of dollars in student debt.

 

College Student Debt

I personally feel that it is ok for college students to have student debt. I was fortunate enough to have financial help from my parents, but I also had to work while I studied.  I graduated in 2005 with some student debt; I can honestly say that applying for student loans made the last two years of my college education a lot easier.

When I had funding from student loans I didn’t have the pressure of having to go into work when I was sick.  I didn’t have the pressure to work as many extra shifts as I possibly could in order to earn some extra cash.  During my first two years of college I couldn’t afford to call in sick to work because I couldn’t afford to lose the pay check.  During the last two years of college my grades improved and I started enjoying my college experience. I made friends, I contributed to group projects, and I was overall a lot happier with my life.

Some students may choose to apply for a student loan because they have no other source of income.  Some students may choose to apply for a student loan to supplement their income from working part time or from their parent’s contributions.  Regardless of the reason, applying for a student loan is a good decision because it is an investment in our self and our education.

 

Paying for College

Some students have the financial means to attend college without accumulating student debt.  There are other options that can help students pay for college.  Bursaries and Scholarships are available for a variety of reasons such as academic and athletic achievements as well as community involvement.  There are also Student Bursaries and Scholarships available for certain programs and academic departments.  I have a cousin who received college scholarships for winning an art contest, she was majoring in art history.  Some Bursaries and Scholarships are available for first year, second year, third year, and fourth year students.

It is very easy to find ways to pay for college without accumulating student debt.  As soon as you are accepted to your college of choice I suggest that students search the school website to find different Bursaries and Scholarships that are available.  Students can also search local and state government websites to find Bursaries and Scholarships that are available for students at your college or in your program.

 

Here are the previous posts in our Going Back to College Savings series:

- My College To Do List

- My College Check List

- CanYouAffordToGoToCollege

 

Photo by EpSos

Can You Afford To Go To College?

By: Kristina | Date posted: August 15, 2011 (7:30 am)

Good Morning Green Panda Readers.  Today is my first official day back to work after my week long vacation and it is bitter sweet.  I am happy to be back in my normal routine, but I am sad that I have to wake up to my alarm clock every day at 7 am.  I really hate waking up to my alarm clock, and I always have.

Today we are discussing different ways that we can pay for college.  Attending college may be a dream for many young people; however it may not be everyone’s reality.  Money is big part of attending college, and some us spend our college years totally broke; I know that I did!  Not everyone has the luxury of having our parents contribute money towards our college education.

 

If you are in college, how are you paying for your higher education?

 

How to Pay for College Without Our Parents Money

 

Students can definitely afford to pay for their college education without their parent’s money. We can start saving for our college education as soon as we start earning an income; whether it is from cutting lawns, babysitting, or working part time.

Start Saving Early is the best way to pay for college without our parent’s money.  I started working at Mc Donald’s when I was 16 years old and unfortunately I never saved a dime.  I wish I knew then what I know now about saving money.  The key to successful saving is to Save Regularly and Start Saving Early.  If we contribute $25 from every bi weekly pay check for 3 years (from the age of 16 to 19) we will have over $2000 saved for college.

We can also use our RRSP savings to pay for our college education.  The Canadian Government allows us to withdraw up to $20,000 from our RRSP under the Lifelong Learning Plan without paying any penalties or taxes.  Of course this money must be repaid after graduation.  Please check with your financial institution for details.

 

The Best Ways to Pay for College

 

There is no rule that says we must attend college right out of high school.  In an effort to save money for college we can take a year off from school and work full time.  I took a year and a half off after my first semester in college and worked two jobs in order to save money.  It was a good idea for me to take some time off from college because I didn’t like my original program, but also because working full time gave me a nice financial safety blanket when I did return to college.

Many students pay for college through Student Loans and Bursaries.  Once we are accepted to college we can inquire with our Student Financial Aid Office as well as our Local Government to find out what types of Loans and Bursaries are available for Students.  A Student Loan is money that must be paid back after graduation.  A Student Bursary or Scholarship is money that is donated to students; it does not have to be repaid after graduation.

Many colleges offer On Campus Jobs that are reserved for Students. Check with your campus bar, restaurant, student services office, cafe, computer store, and library for available student jobs.

 

Here are the previous posts in our Going Back to College Savings series:

My College To Do List

My College Check List

 

Photo By Ugg Boy

Financial Dilemma: Pay off Student Loans or Invest Our Money?

By: Kristina | Date posted: August 02, 2011 (7:30 am)

Good Morning Everyone.  Welcome to the last post in the Investing Our Money in Our Twenties series.  Today we are discussing the crossroads in our financial lives when we move from being a student to becoming a young working professional.  When we start to earn a regular income should we pay off our student loans or invest our money?

The Benefit of Investing Money Plans

Paying off our student loans has benefits but so does investing our money. Some financial professionals feel that we should always save money, even if we have debt because we will always have some type of debt.  Therefore we should always save money, even if we have debt because if we are waiting to be debt free we will never save any money.

Saving money is a good start, but it’s not enough; we have to also invest our money.  Of course getting used to saving money regularly is a good financial habit; however we also have to invest our money wisely.  Investing Money Plans allow us to regularly save our money in the investment option of our choice through an automatic transfer.  Investing Money Plans are a form of forced savings to ensure that we keep investing our money regularly over the years.

 

Paying Off Student Loans May Not Be in Your Benefit

Paying off our Student Loans may be a financial priority for many recent graduates.  However, it may not be in your best financial interest to pay off your student loans.  Before we decide to make paying off our loans a financial priority we have to decide if our loans are a Good Debt or a Bad Debt.

Good debts serve a purpose such as funding our education; good debts also have an asset attached to them such as a home.  Student loans and Mortgage Loans are good debts.  Good debts also have preferential lower interest rates.  In general the interest rate on a student loan is very affordable.

Student Loans are Good Debts and therefore we should be in no rush to pay off our Student Loans.  The interest on student loans is tax deductible and therefore it is beneficial for us to pay off our student loans over time.  We should definitely be in a rush to pay off our Bad Debts.

Bad Debts are consumer debts that we accumulate for no particular reason other than indulgence. Bad Debts are used to buy materialistic items such as clothing and vacations etc. If there is no benefit for us, then we are accumulating Bad Debts. Bad Debts also have very high interest rates.  Examples of bad debts are credit cards, finance cards, and department store credit cards.

Bad debts should be given financial priority so that we pay them off first and minimize our interest costs.  I don’t know about you, but in my opinion paying interest on my education is definitely in my benefit; however paying interest on my new wardrobe is not.

 

Here are Previous Posts in the Investing Our Money in Our Twenties series:

Traditional Savings Accounts Are Boring!

You are only 20. So take some risk!

You Won’t Get Rich Overnight

How Much Money Do I Need To Buy My First Home?

The Right Age To Buy Our First Home

 

Photo by Vector Portal

Good Credit Cards for College Students

By: Kristina | Date posted: March 21, 2011 (1:44 am)

Good Morning Everyone! It’s time for another post in our Credit Card Management Series.  Whether you are starting college or finishing college, it is important to have a good credit rating.  A good credit rating can help us get a mortgage, get a job, get an apartment, and also get a lease on a car.  The best way to establish a good credit rating is to start building a credit history early, use our credit card for the right types of purchases, and make our monthly payments on time.

There are several good credit cards available for college students.  Most financial institutions offer student credit cards as a part of their student banking package.  I definitely recommend that students apply for their first credit card with their primary financial institution.  Financial institutions offer student credit cards to their clients based on their existing relationship because college students usually don’t have an established credit rating.

There are credit card finance companies that offer credit cards for college students based on their school.  We can often find credit card finance companies on college campuses giving out brochures, and signing up students for their credit cards.

Student Credit Cards are usually offered with a $500 or $1000 credit limit.  If used correctly, our student credit card can help college students establish a good credit rating which will help us later in life.  Since students have little or no income during our college years, I suggest that we don’t charge anything over $100 on our credit card.  This will make sure that we are using our credit card to establish a good credit rating as well as keep our spending within our repayment limits.  It is not enough to have a student credit card, we have to use it and make payments on a regular basis.

Students should use their credit card for everyday purchases such as buying books, and grocery shopping.  College students should not use their credit card for personal shopping, dining out at restaurants, and partying or clubbing.  We should also not use our student credit card to buy coffee or fast food because it creates bad habits.  If we charge $5 to $10 on our credit card for meals once or twice a day it can definitely add up to a lot of money on our monthly credit card bill.

Good Credit Cards for College Students should have no annual fee and a low annual interest rate.  Student credit cards should offer a rewards/points/cash back program, as well as student discounts at local retailers.

Bank of America  offers their Student Platinum Plus Visa Credit Card with no annual fee and a low interest rate of 14.24%.  Bank of America encourages students to “Build your credit with a card designed around you.”

Citi Bank offers 4 different credit cards for college students. Citi Bank offers their student credit cards “with no minimum income or co-signer required, (they also) have low introductory (interest rates) on purchases.”

Chase offers college students a credit card that allows us to “benefit while you build.”

Photo by Smemon87

5 Steps to Get Rid of Student Loans

By: MD | Date posted: February 24, 2011 (6:00 am)

Pay Student Loans OffAnyone with student loans understands the importance of paying them off. Student loans will linger on your financial mind as you try to save up for a mortgage, plan a trip, or try to start a family. This is why it’s important that you try to pay your student loans off as soon as possible.

Let’s go through the 5 steps to get rid of student loans:

1. Defer your student loan payments if you have to.

Before you get hit with massive late fees or destroy your credit score, you might have to ask for an extension or deferral of your student loans. This is a critical step because it forces you to get a realistic grasp of your financial situation. If you’re making decent money then you can begin with your student loan payments. If you’re struggling to find a job or aren’t earning enough money then you’re going to have to defer your student loan payments.

It’s important that you contact the company that loaned you the money in advance to let them know of your situation. Most companies are willing to work with you as you try to figure out your financial situation. This is much more effective than just hating your student loans.

2. Find any source of income to pay student loans off.

If you can’t find your dream job right out of college you might have to suck it up and take any job. The longer you hold out for that dream job, the longer you go without making any money and the longer you go without paying off your student loans or saving money. This isn’t the greatest advice to read but the reality is that during a recession you might have to accept a job that you feel is beneath you.

Just remember to swallow your pride and to do your best to ensure that this doesn’t turn into a permanent gig. You can simply turn your mind off at work and save your mental energy for other projects that you want to work on. The important part is that you’ll now have a paycheck that you can use to make your student loan payments and save up to start your side business.

3. Decrease your spending aggressively.

If you do find a well-paid position and simply just want to speed up the payment of your student loans then this idea is for you. If you want to get serious about paying your student loans off, you must cut back your spending. This isn’t sexy advice by any means but it gets the job done. In case you’re stuck on how to save money, below are my favorite ways to decrease spending:

  • Prepare your own meals.
  • Find cheap ways to have fun.
  • Take public transportation.
  • Stay at home a bit longer.

Spending money can be fun, but paying off your student loans is amazing.

4. Grow your career.

The best way to pay student loan payments is to grow your career and have more money coming in. For those that are fortunate enough to have a job right out of college, you’re in a unique and enviable position. My only advice is to find ways to grow your career so that you will be able to earn more money and pay off student loans much quicker. How can you grow your career?

  • Ask for a raise.
  • Take evening courses.
  • Work harder than everyone else.
  • Switch companies.

As you grow your career over time you’ll be able to put more money towards student debt so that you can eventually enjoy your life more.

5. Stay out of trouble.

It’s really easy to get yourself into trouble out of college. This trouble can come in many forms: legal problems, going out too often, bad habits, and spending like crazy. You must be conscious and understand how toxic this behaviour is. Spending money to reward yourself is perfectly acceptable. The problem lies in racking up massive amounts of credit card debt because you want to have a new pair of shoes or go away on a monthly trip. Since I’m not your mommy and I’m not here to preach to you, I will just suggest that you do have lots of fun post-college, but do your best to stay out of trouble.

If you want pay student loans off then this was the 5 step guide for you. What step are you at right now in paying off your student debt?

(photo credit: usdagov)

Best Student Jobs to Avoid Student Loans

By: MD | Date posted: February 17, 2011 (6:00 am)

Best Student Jobs to Avoid Student LoansSummer jobs for students is a hot topic around this time of the year because it’s when employers start looking to hire employees for the summer season. It’s also the time of the year where college students start getting excited for the end of semester life. This is why I wanted to take a moment to congratulate you. By reading this article you’ll be ahead of the game and be looking for the best student jobs to avoid student loans.

If the title of this post caught your attention, let’s look at the best student jobs to avoid student loans:

On-campus jobs to avoid student loans:

Administrative position.

Most colleges will often hire current students to work in administrative positions that require little responsibility. Anything from watching the accounts receivable at the gym to helping a professor balance their books can be used as a decent source of on-campus income.

Tutoring position.

There are many ways you can make money on-campus and avoid student loans by tutoring your peers. You can find work as a Teaching Assistant and work closely with the professor throughout the duration of the whole course. You can offer private tutoring sessions around campus to students that are interested in help. You can also do what my buddy did. He met students in class and offered them tutoring sessions at discounted rates. Just remember that we are all good at something that someone else out there struggles with.

Tour guide.

Working as a tour guide on your college campus will allow you to meet new people and learn more about your college than you could imagine. A good source of income that will provide you with plenty of exercise and networking.

General Assistant.

Any general on-campus job from monitoring a computer lab to working as an Exam Invigilator will pay you a decent wage, while you sneak in some time to study for your next exam. Another benefit here is that you’ll be forced to stick around campus, and this way you can meet new people and stay focused on your studies.

Off-campus jobs:

If you have no luck with finding a job on your college campus or you simply don’t want to spend any more time on your college campus then you need to, you can try some of the following off-campus jobs to pay for your college tuition:

Local businesses.

Many local businesses around town hire college students to work for them. The opportunities are endless. You just need to focus on applying in advance and acing your job interview. You can make some money in town and get to know the trends in your area.

Serving drinks/food.

This is likely the best way to make money in college. Some of my friends have told me nothing but great stories from these jobs. You’ll usually end up working with lots of other college students. You can also make some decent money from tips if you work at the right location.

Now that we looked at on-campus and off-campus jobs to help you avoid student loans, let’s dive into summer work.

Summer work to pay off college loans:

Some college programs are so academically intense that you simply can’t hold down a job during the school year. This is why you should strive to take advantage of the summer by finding seasonal work to help you avoid student loans all together by earning enough money to cover your college tuition.

Some summer jobs for students that  can help you avoid student loans.

Yard maintenance.

This is where I made all of my money in high school. Cutting grass and taking care of some one’s yard can allow you to make some money while you enjoy the fresh air all summer. I personally worked with elderly people in my community. This also allowed me to hear some interesting stories from people that have been through a lot in life.

Work at a country club.

I had to throw this one in because I know a few people that did this. Working at a local country club can do wonders for your future. My friend met and created many connections in his field just be working as an assistant at a golf club.

Anything you want.

Most career advice states that you should try to enter the field as soon as possible. However, I feel that the summer months allow college students to work any job that they really want. You can simply turn off your brain and find something that you enjoy to do. Once you start your career you’ll be stressed out about moving up the ranks and trying to keep your job. For now you don’t have to stress as much.

There you have it, an extensive list of student jobs to help you avoid student loans in college. I’m curious to hear about what you did for work in college?

(photo credit: yanec)

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