Posted by ET,
under ET, In The Media, Student Loans |
08/26/2010
A great NPR article http://n.pr/axY1LG highlights research that says we must put aside 5%-9% of every dollar earned to pay for our child’s college tuition. This starts the day our child is born, and it still might only cover 75% of all costs. Public college will cost at least 3%. I find these figures to be very scary. That is a big chunk of my meager paycheck.
Are you saving for your kids college, and do you also find these numbers to be scary? Chime in and let me know!
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1 Comment | Tags: College Savings, NPR
Posted by Erin E.,
under Debt, Erin E, Student Loans |
08/24/2010
Last night, my grad classes started up again. Actually, I should say, my grad class, since I’m only taking one this semester. Quite unfortunately, tuition has gone up unexpectedly. Which was a brilliant move, considering nobody can afford anything these days, least of all students.
I waxed nostalgic yesterday, remembering the time when school was the most important thing in my life, because that’s all I did. I was a full-time student. Now, the start of school sneaks up on me. I remember, “Oh, I should probably make sure I have a notebook and pen,” while I’m folding Buzz and Woody underpants or refilling a juice cup for the 900th time that day.
One of the major things that’s been different this time is the money aspect. I took three years off between undergrad and grad school, which meant I had three years of paying on student loans, loans that were a vague and distant idea when I was an undergraduate. This time, I’m paying as I go (because I can, because it’s less expensive), but that makes life harder in some ways. Now I have to consider the fact that we need a new refrigerator when I’m choosing how many classes to take. Appliances weren’t a concern when I was 18.
In other words, I can really identify with this Best of Craigslist posting (warning: foul language!).
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Posted by Erin E.,
under Erin E, Student Loans |
05/20/2010
My family weren’t Cat People when I was growing up—in any sense of the word. Not only did we not regularly dress with whiskers and fake tails a la Cats, felines didn’t get anywhere near our house thanks to my mom’s unreasonable and inexplicable cat phobia.
When Noah and I first got married, we adopted twin kitties (the aforementioned Sophie and Zoe). I’ll admit they made me a bit skittish at first. If you’re not used to living with cats, its not unlike trying to welcome a standoffish ghost into your home. Doors will slowly open for no apparent reason, things will go missing off dressers and tables, yet you must leave offerings of food out for them to sample at their whim.
All this is to say, managing student loans is a lot like managing a herd of cats. Don’t expect to be friends, and good luck getting them to do what you want them to do.
Forthwith are my strategies for wrangling cats and student loans:
- Know how many you have. I learned this one the hard way. If you’re complacent, student loans will come out of the woodwork like a stray to a bowl of milk.
- Find some identifying mark to tell them apart. Student loans might look similar, but they can be very different. Private loans have much higher interest rates, and some government loans accumulate interest before your repayment period begins. It’s important to know what kinds you have to better manage them.
- Consolidate when possible. Cats have a funny way of multiplying in a household, because they don’t appear to me much trouble at first blush. Don’t be fooled. Pare those suckers down whenever you get a chance. Similarly, it’s easier to manage student loans if you consolidate. However, consolidating private and government loans together will often yield a higher overall interest rate, so watch out.
- Tend to the smallest one first. Now this is a matter of opinion, but those big cats, sorry, loans aren’t going anywhere anytime soon. They’ll often overshadow any smaller ones you might have. But if you take care of the small ones first, you can get rid of a few payments early on and feel a sense of accomplishment.
- Don’t ignore them. A student loan in default is about as fun as a cat left alone for a week. Both will wreak havoc on your personal life.
Any other tips out there? Strained cat-loan comparisons not necessary.
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Posted by KEJONES,
under Debt, Financial goals, Special Events, Student Loans |
05/10/2010
Congratulations! You made it; you walked; you’re officially an alum…NOW WHAT? It seems like we spend so much time and energy in college trying to graduate, once we fin ourselves “graduated” we are left to think to ourselves, “Oh crap, now what?” It wasn’t that long ago that graduates walked across the stage, got their diplomas, then shed the cap, gown and diploma and traded them for a suit and briefcase on Monday morning. That is no longer the case. With the current economy, new grads are finding themselves alongside job candidates that have more advanced degrees, more experience, more everything. Suddenly, their ambitions come into question and some may begin to think “Maybe that’s not what I really want to do.” The path that you had laid out for yourself, might not be the one you find yourself on.
No matter your course, there are a few things one needs to decide upon.
Job or Graduate School?
For many people grad school is a requirement in their chosen field. For others, grad school delays entering a shallow job market and enhances their resume for when they are the future. This is the time to decide what you want for your future: do you need more school, or is it time to enter the workforce? The decision is purely personal and can only be made by YOU!
Where To Live?
As long as Mom and Dad haven’t turned your bedroom into a home theatre, chances are you would be welcomed back with open arms. And a list of chores. More and more college grads are returning to the nest in order to save money. As with any situation, there are pros and cons to both. At home, you have little-to-no rent, utilities and other associated costs. You are also living with your family…and it’s not easy to bring a date home. If you rent, you have the freedom to do what you want, when you want to do it. You also have rent, utilities and roommates.
Make Your Move
Now is the chance to decide where you want to live, geographically. You might be comfortable where you are and settle in your college town. Maybe you prefer your hometown…or maybe you want to get away to somewhere completely different. Think about it, if you could live anywhere in the world, where would you live? Ok, now go!
Welcome to the World of Budgeting
As inviting at it may be to celebrate that new job with a new car…consider the fact that you are generally going to be bringing home less than you think you will and your living expenses will be higher. As much as it will pain you to drive past that dealership everyday, sit on the idea of spending for a while, at least until you’ve had some time to adjust to the new costs associated with “living in the real world.”
Save or Spend?
Point blank: Start saving NOW. Seriously… today. The earlier you start planning and saving for retirement, the sooner you can retire, or the more money you will have to spend during retirement. And it’s not just retirement anymore: marriage, kids, cars and homes all come with a price tag.
Insurance
Health, auto, and life…it seems like the options and offers are endless. Insurance can be overwhelming to some people, but it doesn’t have to be. There are advantages to all the different options, just make sure you are paying for only the coverage you need.
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1 Comment | Tags: college, graduate, graduate school, graduation, insurance, job, post grad, real world
Posted by Erin E.,
under Erin E, Student Loans |
01/27/2010
I’m pursuing a master’s degree through the University of North Carolina, and I’m definitely benefiting from in-state tuition. In fact, for the first three semesters, I’ve been able to pay tuition as I go. (And ignore those hideous undergrad loans for a while—hello, deferment!)
But now that I’m leaving my job to stay home with my son, we’re reshuffling our budget, and how to pay my tuition is in limbo. Do we take on more debt by applying for a small student loan? Or do we cut back in other areas…quit buying cat food and let the girls subsist on bugs they forage in the backyard, for instance…so I can keep paying as I go?
Suddenly I’m feeling the weight of living on one income. And I’m realizing how little thought we gave to our financial plan when we had enough money to be frivolous.
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No Comments | Tags: budgeting, Erin E.
Wow, that is a high percentage! With the constant rise of tuition costs, these can only go up. I don’t see how so many students afford private universities each year without going into major debt…