All posts by Suzanne Shaffer

college planning, financial planning, parenting

Saving Money on College Costs

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During these tough economic times, parents are committed to saving money on college costs. College tuition rises each year and there is little you can do about it; but there are other places that small savings will add up. Tuition will definitely be the huge chunk of your expenses. However, there are other expenses related to college where you can find some costs savings:

The expenses that cost the most

  • Computers—In today’s technological world a computer is no longer a luxury, it’s a necessity. When your teen goes off to college, they will need their own computer. Personally, I recommend a laptop instead of a desktop. Since it’s portable, they can take it with them to class, to the library, and to group meetings. To save some bucks, shop online for refurbished or even last year’s models. If you buy online, consider purchasing a service contract to go along with your computer purchase (Note: This will pay for itself—I learned from experience!)
  • Dorm furnishings—Most dorms come furnished with a bed, a desk and some sort of dresser. Beyond that, it’s up to you and your teen to decide what additional furniture and accessories they want. My recommendation is to buy used. You can find everything from small appliances (microwaves, coffeemakers, etc.) to furnishings (bookshelves, chairs and lighting) on Craigslist, Ebay or at local thrift stores. Be careful not to overload the room because they are traditionally small.
  • Room and board—Room and board can be a huge portion of your teen’s college expenses. One option is to live at home if the college is within driving distance. Another option to save might be to purchase a home near campus and rent it out to other students, allowing your teen to live in it. Not only will this save you on room and board, but it will also provide you with an investment and tax write off as a rental. However, make sure the home is zoned as rental property. And here’s one of the best savings of all: after freshman year, your teen can apply to become an RA (Resident Assistant) in one of the dorms, which will provide you with a huge break on room and board costs.
  • Meal plan savings—Most freshmen are required to purchase a student meal plan. But, there are usually options available. My recommendation is that unless your teen is an athlete with a large appetite, the full meal plan (3-meals a day) is costly and you will not get your money’s worth. Opt for the 1 or 2 meal a day plans. Most freshmen eat takeout with friends, microwave food in their rooms, skip meals periodically, and snack voraciously. Providing them with an in room fridge and microwave will save you some bucks in the long run.

Textbook savings

College students can spend nearly $1000-1500 a year on new textbooks. The good news is that you don’t have to spend that kind of money if you don’t want to. If you can, prior to the beginning of each semester, find out what books your teen will need (title, author and ISBN, or international standard book number). Then get busy and here’s a word of extra advice: DON’T WAIT UNTIL THE LAST MINUTE! (Note: Look at my List of Website Links in the Expert Links for all the links related to Textbooks)

  • Buy used–Never buy new textbooks if it’s possible (unless you are a fan of throwing money away). Used books are just as sufficient. Most students use their textbooks only while they are in class and end up selling them back to the bookstore at an incredibly reduced rate. (Many times the bookstore won’t buy them back because the professor changes texts or the textbook has been updated). You can easily find used books online at discounted prices and your teen will arrive on campus with their books in tow and won’t have to fight the last minute panic rush.
  • Try renting–There are numerous websites available that offer textbook rentals to students per semester. This is a fairly new concept, but seems to be taking off as more and more sites pop up offering this option.
  • Purchase Ebooks–Consider purchasing electronic textbooks. With the recent introduction of the new Kindle College version, your student can download their textbooks and carry all of them with them. Without purchasing a Kindle, they can download the ebook versions and store them on their laptop for easy access. These versions are typically 50% less than the printed text version. The only downside is that not all textbooks are offered in ebook format.
  • Share books–After freshman year, my daughter shared textbooks with her roommates. It was a huge cost savings. They were usually taking some of the same classes and would get together before classes began to discuss who would purchase which textbook. If your teen is a freshman, the likelihood of having the same courses as their roommate is extremely high. Sharing the book will save both of them money in the long run. There is also the option of using a library copy.
  • Look for free books–There are a few sites that offer free downloads of some electronic texts. Before you purchase, visit those sites to see if any of the books you need are listed and downloadable.
  • Evaluate the necessity—Do you really need the textbook? Wait a few days into class and get a feel for the professor. If he or she states that the tests will cover lecture notes, then consider not purchasing the book. Worst case scenario you can borrow one from a classmate if you truly need it or find a copy at the library.

The small things add up

It’s amazing how those little expenses can add up: gas, takeout, necessity items. But just as little expenses add up, small savings add up as well and you will be saving money on college costs.

  • Ditch the car–Many campuses don’t allow freshmen to have a car on campus. But if your teen opts to live on campus and the college allows cars, consider ditching it. Everything your teen needs can be found on campus. And many colleges offer student transportation at very inexpensive rates if they need to leave campus or there is always the option of purchasing a monthly bus pass. In emergency situations, one or more of their friends will usually have a car that they can use or will offer to drive them.
  • Use the student ID card for discounts–Most fast food restaurants and local eateries offer discounts to students with campus ID’s. Those small 10-15% discounts can add up.
  • Finish in 4 years or less–Encourage your teen to stay on track and finish in 4 years or less. Most financial aid packages are only good for 4 years. Staying an extra semester will tack on additional expense and is not necessary since most degree plans can be completed in 4 years.
  • Use family insurance coverage if allowed–Some colleges charge students for health plans. If you have a good family health plan, and the student insurance duplicates what is already covered, get any charges waived.
FAFSA, financial aid, financial planning, student loans

A Parent’s Guide to Financial aid

financial aid

Financial aid can be a confusing part of the college application process. Even if you can afford to pay for college, it’s a good idea to learn what aid is available and apply for it. You aren’t obligated to accept it, but most students qualify for some form of aid and, if it’s available, why not use it?

What is financial aid?

Financial aid is intended to make up the difference between what your family can afford to pay and what college actually costs. With college tuition rising rapidly, more than half of the students currently enrolled in college receive some sort of financial aid to help pay for college. The system is based on the premise that anyone should be able to attend college, regardless of financial circumstances. However, students and their families are expected to contribute to the extent that they are able.

There are two types of aid: need-based, and non need-based. Need-based aid includes grants and scholarships that are issued based on the family’s ability to contribute to education costs. Non-need-based aid is allocated solely based on availability, not need.

There are three main types of financial aid: grants and scholarships, loans and work study.

What is “free” money?

Not all aid is equal and the best aid is the aid you don’t have to pay back. It’s like getting a huge coupon of savings to use for your college education. Here are the types of aid you can receive that you won’t have to pay back after graduation:

  • Federal Grants – These are grants given by the federal government.
  • Pell Grant – This grant is given to students with exceptional financial need.
  • College Grants – These grants are awarded by the individual colleges based on financial need.
  • State Grants – These grants are given to students who plan to attend college in their own state (and states are strict about residency).
  • Private Scholarships – There are a multitude of private scholarships available awarded by private organizations and businesses for every type of student.
  • Institutional Scholarships – These scholarships are given by individual colleges based on the student’s qualifications or financial need.
  • Federal Scholarships – Scholarships funded by government agencies.
  • Tuition Waiver – This waiver is offered by colleges to students who meet specific criteria (e.g. child of a POW/MIA)

What types of education loans are available?

Not all college loans are equal.

There are two types of government-based loans: subsidized and unsubsidized. Subsidized loans have lower interest rates and are awarded based on the student’s financial need with interest deferred until after graduation. Unsubsidized loans are awarded without regard to financial need with interest payments beginning immediately and regular payments due after graduation. Following is a brief description of each:

  • Stafford Loan – Government based loans that can be either subsidized or unsubsidized.
  • PLUS (Federal Parent Loans for Undergraduate Students) – This loan is for creditworthy parents and has payments due beginning 60 days after it is disbursed with relatively low interest rates.
  • Private Loan – Loan offered by private lenders usually with higher interest rates than government loans.
  • Institutional Loan – A loan in which the school is the lender.

Once you have chosen the loan that best fits your needs, do the research and educate yourself about repayment, interest rates and grace periods.

To learn more about work study, the FAFSA, the EFC and award letters, read the entire article I wrote for TeenLife Online Magazine here.

college guidance, college planning, college prep, parenting

College Prep Is a Team Effort

college prep

The college admissions process can be overwhelming. It will be a stressful time for both you and your teen. Your teen will need your help and your support. They will need to know they can count on you to do your part so they can do their part. It’s truly a team effort. Good parenting is key, especially during college prep.

Here are some helpful suggestions for you that will help you help your teen during college prep.

Make a visit to your teen’s counselor– Let the counselor know that you intend to be an involved parent and establish a relationship at the start. The counselor is an important source of information and of course guidance regarding your teen’s college pursuit.

Establish relationships with teachers and staff– Since most parents tend to drop out when their teen reaches high school, it’s crucial that you make it clear to the educators that you will be a partner in educating your child. Keep in touch and verify your teen’s progress via email if it’s available and attend any teacher conferences or parent meetings that are scheduled. Show up at PTA meetings and parent information sessions, making you visible to the staff.

Read all school information– Once you have stressed to your teen the importance of ensuring that ALL information gets home to you, you must take the time to READ it. This means reading the school handbook, teacher handouts, letters to parents, guidance department newsletters, any rules and policies, and homework and attendance rules. Discuss these with your teen to alleviate any future misunderstandings that might arise over failing to follow school guidelines.

Stress the importance of good attendance– Attendance is key in high school. Missing even one class can put the student behind. Schedule appointments, when possible, before and after school. If there is an absence, make sure your teen does the make up work in a timely manner. If the absence will be for an extensive period of time, coordinate with the teachers to assure the makeup work is completed.

Encourage strong study habits– These habits will follow your teen to college. Set aside a regularly scheduled study time. Studying needs to be a priority before any added activities. GPA rules in the college admission process and good study habits will assure your teen enters the process with an impressive one. Don’t allow your teen to procrastinate and go into overdrive because they waited until the last minute to complete a project.

Stress regular contact with teachers and counselors-This contact will play an important role when your teen needs recommendation letters. It will also establish in the minds of these educators that he or she means business. They will see that your teen is there to learn and excel and ask questions. Those students are the ones that are recommended for leadership positions and academic awards. It can be something as simple as saying hello in the hallway or using the counselor’s office to research scholarships.

Be the organization coach– My mantra for high school was: Preparation Prevents Panic. If you know where everything is, have a schedule and a plan, you won’t get stressed and frustrated. Sometimes the only filing system a teen has is their floor. It’s your job as their parent coach to help them start and maintain good organization for their date planners, notebooks, folders, files and college related materials.

Stay informed and involved– This does not mean camp out at the school every day and follow your teen around (although that is tempting). It means monitoring quizzes, grades, daily homework assignments and long-term projects. If you begin to notice any problems, schedule an appointment with the teacher and work out a plan for tutoring if it’s necessary. Don’t wait for the report card to lower the boom. If you stay proactive and informed, you and your teen will be able to fix any problems before they become catastrophes.

Know your teen’s friends (and their parents)– Your teen’s out of school activities will always affect in-class behavior. In high school, it’s as much about social activity as it is about academic success. Assuring that your teen’s friends share the same values and goals will make a difference in their focus in and out of school. Encourage them to make friends that have college as a goal and have the same study habits. Take the time to meet and get to know your teen’s friends’ parents. Make sure they share your values and understand your position on smoking, drinking and drugs.

Be proactive when you encounter problems– All types of problems arise in high school: academic, behavioral and even social. There is a logical solution for all of them, but the key is to be aware when they arise and address them quickly. Academic problems require additional teacher help, tutoring, and possibly study skill courses. If you encounter behavioral problems, contact the school counselor or principal and discuss with them recommendations for the particular situation. Coaches can often help, along with a mentor. Sometimes professional counseling is warranted. Don’t ever be afraid to ask for help. And don’t make the mistake of turning your head and going into denial. Problems only get worse if they are ignored, especially in high school.

homeschooling, move-in day, pandemic, parenting

Helping your Student During the Pandemic

pandemic

We’re living through some pretty strange times right now. Just a few months ago, life was on track and routine. We were living day to day life to schedule – dropping the kids to school, heading to work or completing tasks around the house, socializing with our free time or heading out for fun days out. But since then, the unprecedented spread of coronavirus – a contagious and potentially lethal virus – around the world has turned many of our lives on their heads. The majority of governments have asked us to remain at home as much as possible. Schools have been closed. People are working remotely or not working at all. Socializing outside of your household isn’t really an option. This has posed many of us with a variety of difficulties and problems. But for those of us with kids, school tends to be a main concern. Here are just a few different ways you can maintain your children’s education during the pandemic!

Reduce Pressure

First and foremost, reduce pressure on yourself and your little ones. These are difficult times for everyone and all children are going to be falling behind on their education right now. When schools reopen, all kids are going to find themselves in the same position and teaching will recommence from where it was left off. So, don’t be too hard on yourself or your kids. Instead, focus on this time for bonding.

Look Up Your Child’s Curriculum

If you do want to help to introduce your little one to a few of the things they’d currently be learning at school if there wasn’t a pandemic, you can always look up their curriculum and see what they would be being taught right now. Remember that curriculums vary from one school to another, so ensure you’re focusing on the right one. If in doubt, you could always contact the school and ask.

Use All Resources Available

There are so many great, free online resources out there that can prove educational for your child. Watch a few educational Youtube videos for their age group and determine whether any are good for your child to watch. Use sites like PennyDell Puzzles to challenge them with logic and numbers. Stimulate their creativity with arts and crafts projects or writing projects. Encourage them to read books. Watch kids shows on history, science and other areas with them. Consider investing in language learning software for them. There are so many different options out there!

Set Your Own Tests

Basic spelling and maths tests are easy to set up yourself when you have little ones. Challenge them with simple maths and spellings. Many kids find this fun and enjoy the element of competition.

These are just a few suggestions when it comes to educating your kids at home during the pandemic. They’ll be back to school soon enough, but hopefully, these steps will really help for now!

homeschooling, online learning, study tools

Using Online Learning to Supplement Education

online learning

Most schools have been closed over the past few months, and continue to be closed, but this does not mean that learning has to stop. Online lessons have proven to be a great help.

You can find all types of resources online to help your student continue the learning process. Beginning in the early grades like third grade writing worksheets, and continuing as your student moves into junior high and high school. 

Online learning websites are widely available. With so many to choose from, there are many factors to consider when looking for the best. One of the main decisions you need to make is whether to pay for access to a learning website or whether to only use free resources. 

There is no right or wrong when determining whether to pay for lessons online. It is all about deciding what is right for you. If you are currently not in a position whereby you can afford to spend money on such lessons comfortably, then, of course, start with free resources until you can. 

Aside from this, you need to consider how motivated you are. If you are not a self-starter, you may struggle to stick with a free program. However, if you are paying for a service, it will certainly give you the extra push you need to study regularly. Moreover, if it means gaining access to a much better pool of online lessons, it may be worth paying for a learning website, especially if your time is precious. You could get to the same skill level, in the end, no matter what website you use, but with free resources, it may take a little bit longer, unless you find one that ticks all of the boxes, of course. If that is the case, then great! Also, if you need personalized help, you can get access to a live teacher and so on with some paid websites.

Supplementing learning with online music education

Online music lesson websites are widely available for those who want to learn from the comfort of their own home and have the freedom to practice as and when suits them. There are many benefits associated with this approach to learning an instrument or how to sing, as you will discover below.

One of the main reasons why so many people choose online music lessons is because they are much more cost-effective. Rather than paying a fee every time you have a lesson, you are more likely to pay a one-off cost for access to the website in question, or in some cases, you may need to pay monthly or annual fees. There are also free resources on the web for you to make the most of, meaning you are bound to find the right solution for your budget. 

Another benefit is that you have more control over your learning experience. You will be able to find resources suited to areas you feel you need more practice, and you can decide when you take the lessons, and how long for. You also have a much wider scope of music lessons online to choose from, including variation in the way these lessons are presented, from the written format to demonstration videos. You can also continue your lessons no matter where you go, which is ideal for those that travel a lot with work. Finally, you will be more inclined to experiment and take risks when you only have yourself to answer to.

move-in day, Sponsored posts

Campus Arrival Helps Students Prepare for Move-In Day

campus arrival

My goal here is to help parents navigate the college maze. Part of that process is to find and recommend products and/or services that will help parents as they navigate the process.

With college move-in day approaching in the fall and parents using the summer to shop and gather items to send with their college students, I’ve found a FREE service that can help: Campus Arrival. This service makes it easy for parents and students to view and check off all the items the college either requires or recommends for students to move on to campus.

All you need to do is sign up for an account which lets you save your supply checklist. By doing this, you can mark items as done. You’ll also be able to set your school as a favorite so you can link to it quicker. Also, if any other family members want to help and buy you something for college, they can see what you need and what you already have.

Once registered, type in the name of your school (or search on the list by state), and you will see a curated list of college-ready items to pack based on the college’s official recommendations. They have also included items from other schools’ suggestions and expert advice compiled from around the internet. All their recommendations are based on a balance between quality and value.

You will also notice a checkmark next to an item that indicates it is included as an official recommendation from the college. According to their FAQ section:

Our recommendations come in three flavors.

  • First are specific item recommendations. These include an explanation for why we are recommending the item along with a link to that specific product.
  • Second are ‘Starter Pack’ recommendations. These are lists of items that are similar. We added the lists for items that are small and don’t require significant concern about reviewing the product – things like toiletries, desk supplies, etc. Lists provide an easy way to grab a bunch of things at once.
  • Third are search recommendations. For some items, there can be a lot of personal preference involved – things like bedding, posters, bikes, etc. The search recommendations provide a link to Amazon with many options that meet the need but you can personalize for your personality.

For example, here is a screenshot from a college in Texas: Texas A&M University.

For those parents who are concerned about the coronavirus, Campus Arrival has also included recommendations for Covid-19 prep:

Sincelaptops are a major asset while you’re at college, their recommendations help you with the specific hardware requirements for your school and major. They search the school’s official site. Each school is different in terms of the info they provide. Some schools provide general specifications. Some give major’s specific needs. And some schools don’t provide any recommendations.

Campus Arrival includes the links to the official school recommendations so you can reference them (in the Sources section of the school page). With the hardware specifications, they use CNET extensively to make product recommendations. They also consider Amazon reviews and will search other technology sites to make sure the products are high quality.

Campus Arrival also provides a list of prohibited items and posts the links to the sources they used to compile their lists. This takes the guesswork out of trying to prepare for move-in day and helps parents shop confidently and easily for their student.

If you don’t see you your college on their sight, you can make a recommendation for them to add it their list. While you wait for your specific school to be added, you can check out their General Recommendations list. This list is a combination of all the items they have collected from all the schools completed. It’s a good start and provides everything you’ll need.

If you have a college-bound student, take advantage of Campus Arrival’s convenient service to help you and your student prepare for move-in day.

This is a sponsored post

empty nest, Guest Posts

Offering Students a Taste of Home

When I come across a product that can help parents of college students, I’m happy to share it with my readers. For parents whose students will be heading off to college this fall, this product will you stay in touch and show “love” for your students.

Do you have a student entering college for the first time? How about a student returning to school?  Either way, they’ll be working hard and missing home.  For those that are leaving home for the first time, being away will be exciting and scary.  They will be trying to keep up with their work, while at the same time balancing a new social dynamic.  Thoughts of home will be a safe haven from the hectic schedule they will now be keeping.  For those students who are returning, they will be trying to maintain the school lifestyle they’ve become accustomed to.  However, they too will look to reminders of home for solace when things get a little too crazy.

While it’s common for parents to send their students care packages to help them stay fed, most of these care packages are filled with junk food.  Processed, unhealthy junk food.  Why not give them a true reminder of home each month by ordering them a subscription to A Taste of Home Cake Crate by Kentastic Cakes?  A Taste of Home Cake Crate is a monthly subscription of homemade, from scratch baked goods that are shipped directly to their door(or school Mailroom) each month.  All items within A Taste of Home Cake Crate are created from scratch using only fresh ingredients.  Nothing is processed and everything tastes AMAZING!!

A Taste of Home Cake Crate can be ordered by the month or in longer durations at a discounted price. We also offer our COLLEGE PLAN, which is specifically meant for your student and follows a typical school year.  With the COLLEGE PLAN, your student will receive a Cake Crate from September through November and from January through May.  They will NOT receive a Cake Crate in the month of December, as most students go home for the holidays.  Crates are shipped on or around the 20th of each month, with the exception of May.  May crates will be shipped the 1st week of the month to be sure your student receives it before leaving school for the summer.  We also offer a First Semester and Second Semester Plan.  A NUT FREE option is also available.

taste of home

Each month, your student will receive:

  • A Large Cake In A Cup (almost a full pound of moist cake and creamy buttercream frosting)
  • 4 Yummy Cake Pops – Flavors change each month.
  • 3-6 Fresh Baked Cookies(dependent on size and type)
  • A Mystery Item – Past Mystery Items have been French Macarons, Baklava, S’mores Bars and Chocolate Covered OREOS.

Kentastic Cakes has been creating beautiful, delicious custom cakes since 2012.  In addition to weddings, Bar/Bat Mitzvahs and birthdays, Kentastic Cakes has been enjoyed at high profile events, such as the Boston Strong Benefit Concert after the marathon bombings and the Vans Warped Tour 20th Anniversary BBQ.  Our cakes have been eaten by members of NKOTB, Aerosmith, celebrity chef Ming Tsai and more.  We’ve even made cake pops for legendary rock band, Motley Crue on their Farewell Tour.

A Taste of Home Cake Crate just celebrated its 1 Year Anniversary and is excited to send your hard working student awesome treats each month.  Please visit mycakecrate.com for more detailed information and pricing, as well as some FAQs at our College Plan page. 

Orders received by July 1, 2020 will save, as prices will increase on July 1.  Save even more by using Code: COLLEGE to save an additional 5% off your order.

As we always say, “Just because they can’t be at home, doesn’t mean you can’t send them A Taste of Home.”

PLEASE SHARE!

life lessons, parenting, Uncategorized

Is Your Student Prepared for College

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prepared for college
American Housewife

These are tough times we live in. From the coronavirus to the widespread protests, families have had to cope with some difficult circumstances and answer some tough questions.

My grandsons have asked questions–many questions about what is happening in their world. We try to prepare our children for foreseeable difficulties as adults, but sometimes life slaps us in the face and we face obstacles we did not anticipate and would rather avoid.

The question we should all be asking our students is: Are you prepared for college?

I’m not talking about academic, extracurriculars, or standardized tests. I’m talking about the “real” college prep: adulthood. Because this is the most important college prep of all. If your student isn’t ready to study without being constantly nagged, attend class without a wake-up call, or make wise choices when every negative influence in the world bombards them, then he or she is not ready for college.

We must, as parents, prepare our teenagers for independent living. That means they must know how to self-advocate. They must know how to say “no” to behaviors that have negative consequences. They must be responsible with their time and their money. It’s no easy task and in today’s world, we have to add the ability to make wise social and economic choices.

I love “American Housewife” for the examples of good and not-go good parenting techniques. Their daughter, who will be attending college in the fall, was required to complete a massive to-do list before they would agree for her to attend her senior prom. Some of the items seem simple to most, like changing a tire; but the goal of this parenting was to prepare her for independent living.

Do you have a to-do list for your future college student? Can they live within a budget? Do they understand the importance of study and class attendance? Do they know how to choose the right friends? Will they make wise choices about alcohol, sex and other risky behaviors. Preparing them for college is so much more than academics.

life lessons, parenting

10 Lessons a Pet Can Teach Your Children

pet

Families with children are known as the highest demographic to most likely own a pet. Children have numerous gifts to offer a pet, with countless hours of attention and play, cuddles, and a life-long companion. However, the rewards work both ways.  

Your children can learn a lot from owning a pet, whether it’s compassion, empathy, or the responsibility they may need to take them through college and into adulthood, these 10 valuable life lessons are what they could learn: 

Responsibility

Whether you choose ot have a dog such as a chocolate lab from https://chocolatelabradorretriever.ca/ or a smaller pet like a guinea pig, pets need to have daily food, affection, and exercise as well as potty time and grooming. Older children can learn these skills and use them and even younger children can help to feed them and play with them. 

Trust

It’s easy to confide in your pet, they will offer you unconditional support in return. Pets make trusted companions for children and can be an important step to helping your child build trust in other relationships they may have through their life.

Compassion

Caring for a living creature requires compassion, empathy, and understanding, Kids learn to be kind and how they can take care of another’s needs. 

Bereavement

You child will inevitably feel the pain of any loss of a pet, but it will also teach them how to cope through a bereavement period. A lesson not many get to learn when young. 

Physical Activity

If you own a dog, your children can learn how to have fun physical activity through games like fetch or tug of war. And enjoy going for walks. Research suggests that children who own a dog spend more time being physically active than children who don’t. 

Patience

It can take time to bond with a new pet, so your child will learn patience whilst your new pwr becomes comfortable and starts to feel at home during training. 

Respect

Owning a pet is a great way to teach children how to respect others. They much tend to their needs, touch them gently, and learn not to disturb them when they are sleeping or eating. 

Self-Esteem

Pets will show them unconditional love, which can be a wonderful boost to a child’s self-esteem. So, too, can the proudness and satisfaction from having the responsibility of caring for a pet’s needs. 

Loyalty

A pet’s loyalty toward its owner is hard to match. With this, children can learn the importance of showing loyalty to their furry friend. 

Social Skills

A dog can be a fantastic way to break the ice in social situations. This means taking your dog on family walks can help to improve your children’s social skills as they see you interact

Guest Posts, Student debt, student loans, Uncategorized

How to Borrow Wisely for College

borrow wisely

With a new school year quickly approaching, many parents are figuring out how their child is going to afford college. According to CollegeBoard, the average student budget for the 2019-20 academic year was $26,590 for students attending a four-year university. This figure includes the cost of living on campus, which may be required of incoming freshman students.

This means your child’s education could cost well over six figures. And no parent wants their child to start their adult life with that amount of debt.

As a parent, you can help guide your child to make smart decisions that will impact their finances for years to come. This begins with choosing an affordable school.

There are also other ways to help pay for the cost of attendance and living expenses. Here’s how to help fund college costs and ways to borrow wisely.

Apply for financial aid opportunities before borrowing

Before you or your child take on debt to pay for college, you should exhaust all other available resources.

Your child can access financial aid opportunities, like grants, scholarships and work-study programs, by completing the Free Application for Federal Student Aid (FAFSA).

The FAFSA filing window is October 1 to June 30 for each upcoming academic year. Keep in mind that some financial aid is available on a first-come, first-serve basis, and cutoff deadlines vary by state. Encourage your child to complete their application as early as possible.

Also explore third-party scholarship opportunities through your employer, local community organizations and online databases. Each additional scholarship or grant — even if it is only for a few hundred dollars — can prevent your child from taking on more student loan debt.

How to borrow wisely for college

Once your family has explored all financial aid opportunities and pooled existing resources (e.g. 529 college savings plan and other family contributions), your child may still need to turn to student loans.

Whether your child is taking out loans in their own name or you’re borrowing on their behalf, it’s important that your family only borrow what is needed to fill the remaining financial gap.

The first way to approach student loans is through federal loans. Federal loans have more flexibility and have certain protections and benefits. This is why it’s best to maximize federal loan opportunities before taking out private loans.

For example, your child can enroll in a repayment plan that matches their financial situation and may be eligible for loan forgiveness opportunities.

Your child should borrow funds in this order:

  1. Direct Subsidized Loans. Subsidized loans typically have the lowest rates, and the government will cover any interest that accrues while your child is in school.
  2. Direct Unsubsidized Loans. Unsubsidized loans aren’t need-based, so any student can qualify for them. However, your child is responsible for the interest that accrues during school.
  3. Private loans. Your child will likely need a cosigner to qualify for a private loan. Shop around with various private lenders to find the lowest rate and best terms for your credit.

You may also have the option to take out a federal Parent PLUS loan in your name to help fund your child’s education.You’ll be solely financially responsible for the loan — not your child.

Make a debt repayment plan

Student loan borrowers should always be aware of interest charges that will accrue during school and after graduation. These charges should be included in their overall financial plan.

Your child should also start making a debt repayment plan as soon as possible. Popular student loan repayment methods include enrolling in an income-driven repayment (IDR) plan or refinancing student loans after graduation to get a lower interest rate.

When considering refinancing federal loans into private student loans, it’s important to understand the consequences of losing out on federal benefits and protections, like loan forgiveness and forbearance.

The earlier your child plans for their educational costs, the more likely they can save money during their college experience and beyond.

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Our guest post today is by Travis Hornsby, CFA, and Founder and CEO of Student Loan Planner. He lives with his wife in St. Louis, MO, where he loves thinking up new student loan repayment strategies and frequenting the best free zoo in America. As one of the nation’s leading student loan experts, he has consulted on $500 million of student debt personally.