Category Archives: Communications

Introduction

Welcome!

Let’s face it, times are tough. They have been for a few years now; in an economic climate such as ours, everyone is feeling a bit of a pinch. When investment bankers and futures traders need to curb their spending, you KNOW college students and their parents are going to feel the crunch. In light of the current economic climate, we have come up with a series of communications to help keep you, and your parents, informed when it comes to the sometimes-convoluted-world of college finances. The communications will cover a range of subjects, from financial literacy made easy, to eating well on a very tight budget to handling finances in a period of scholastic transition (i.e. – graduation, between semesters, etc.). The hope is that with this additional tool in your tool belt, you and your family will be able to make increasingly informed decisions that will ultimately ease the strain on your wallet.

The BIG Question

How Much Should I Borrow?

What is the appropriate amount of debt to take on for my education? In our economic climate, this is a question that gets asked considerably more often than it did before the Great Recession. It used to be that students would take out gobs and gobs of money with the full confidence that with our economy growing they would land a job that pays well and the loans would be a non-issue. Not so anymore. Financial planning is essential and student loan debt should be a calculated peice of those plans. To answer the question of how much to borrow, consider several factors:

What is my major? How much can i expect to earn in my first year of work after graduation?

The rule of thumb is based on your major; depending on what you are in school for you should be able to figure out the answer to the second question of what you can safely estimate your first year’s salary will be out of college. Based on that figure, you can form an answer to the question of how much to borrow. Generally speaking, Liberal Arts majors should try to avoid borrowing more than $27,000- $35,000 and Math/Science types or Computer Programmers can plan to borrow near double that. Mark Kantrowitz, who runs FinAid.org (a great resource for student loan and indebtedness information) says that if you’re borrowing more than $10,000 a year you need to cut down on loans or, if that’s not possible, transfer to a cheaper institution.

Get a Job Communication

Get A Job!

In order to supplement your finances and enjoy a little extra spending money during the school year, the best thing you can do is find a part-time job on, or near, campus. Finding a job may not seem that difficult but finding the right job, that fits your schedule and offers the benefits you’re looking for, can be a bit tricky. There are a few things you should keep in mind when looking for a job while you’re attending classes.

Transportation

The first, and probably most obvious, factor to consider when looking for a job is whether or not you have transportation. During the winter months (November through April) a job at Sugarloaf in Carrabassett Valley can be rewarding and provide flexible hours during the school week and as many hours as you may need during the weekend. In addition it provides a free pass to the mountain. But Sugarloaf is a 45 minute drive away, and if you don’t have consistent transportation, it just isn’t an option. Fortunately, there are numerous on- and off-campus job opportunities within walking distance, and even more opportunities present themselves if you have a bicycle.

Flexibility

Can you build your work schedule around classes or do you have to build your classes around your work schedule? Another thing to consider when job hunting in the area is whether or not your potential employer can be flexible enough to set up a schedule that fits the hectic lifestyle of a college student. If you want the job badly enough but your employer needs you to work a defined schedule with little room for flexibility, you may have to build your classes around that work schedule. Fortunately, most part-time employers understand the needs of a college student and can figure out a schedule that works around your classes.

Leave time for homework!

Classes and work are not the only factors in your life! Remember to leave an appropriate amount of time every week for completing homework and other out-of-class academia you may have to ration your time for. You should also allow yourself at least some personal time. Remember college is about achieving academically, but it is also about personal growth and a large part of the college experience is taking advantage of the social opportunities that present themselves in a University environment. Don’t shirk your responsibilities, but enjoy time with your friends and look into extra-curricular activities such as clubs, intramural sports and the like.

On Campus Jobs

Jobs on-campus are conveniently located with minimal commute time, and they present opportunities for pre-professional experience and resume building. Student employment is an important part of a student’s financial aid package, and is integral to the daily operations of many departments here at UMF. We are very proud of our student work programs because they allow students to work in fields related to either their major or a personal interest, or even to gain employment that leads them to a decision of what they would like to major in or pursue in a professional capacity. Our two main programs here at UMF are the Federal Work-Study program and the Student Work Initiative program. Federal Work-Study is awarded to needy, on-time aid applicants as determined by information submitted on the FAFSA. For those students who were not awarded Federal Work-Study and still wish to work, there is the Student Work Initiative program started by UMF’s President, Dr. Kalikow. The third option for students is to find a job paid for by department funds. Not all departments hire students this way, but some do. Please be advised that it is not within our policy to place students into their jobs, so searching for a job is a competitive process. Look to the UMF website for more information on student employment. 

*Please be advised that our policies leave job finding to the individual student, that is, UMF will not place a student into a job they are meant to attain one of their own accord. Students are responsible for seeking job opportunities and are advised to look to the UMF website for helpful information on their availability.

Build Responsible Habits

A college education can be a comprehensive and valuable tool for developing critical thinking skills and functional abilities which you will no-doubt employ in your life after schooling, but it is an eye-opening experience to be, at long last, let loose in the ‘real world’. It is likely you will find that some aspects of your college education, as comprehensive as it may be, are somewhat…lacking…in the degree to which they prepare you for wholly independent financial responsibility. When you live in a residence hall and eat on a meal plan, you don’t have to develop a budget for those basic living expenses. If you don’t understand how debt (student or credit card) affects your financial life after college, you’re likely in for a bit of a nasty surprise. Steven Bahls, President of Augustana College, writes, “I remind our students that if they live like college graduates with good jobs while they are students, their debt levels will cause them to live like students when they graduate. Going out to a mid-priced restaurant twice a week for four years could easily cost $8,000. Putting those charges on a credit card and carrying the balance over four years tips the cost to well over $10,000.”[1] With that in mind, this communication installment is designed to give you the quick-and-dirty look at financial responsibility.

Financial Templates

Financial Templates are a great way to easily track your income and expenses, and to maintain a clear idea of your current financial situation. Financial templates can be easily found and downloaded with a simple search (Microsoft Office has a number of them, and there are websites dedicated entirely to providing templates) and essentially ‘fit’ over an excel spreadsheet to help make tracking your finances quick and easy.

Create a budget

Once you’ve developed a clear idea of your income and your spending habits you can begin to develop a budget. Obviously the priorities on your budget, next to rent and food, should be allocating funds for student loan payments or any other type of debt repayment you may have. After that the balance should go towards savings with a small bit set aside for some personal spending mon

Start on a financial path for the future

Now that you have your template and budget developed, you should begin to formulate several personal financial goals. When do you want to pay your student loans off by? How much money do you need to set aside for emergency funds (health, car, etc.)? Where would you like to be, financially, in ten years? While keeping a firm grasp on the reality of your situation, begin to lay the foundation for your financial path in life through, and beyond, college.

Educate yourself!!

Ultimately, nothing can replace the value of truly educating yourself when it comes to the world of financial literacy. Try to find a class or local seminar that can help make the education process a bit easier than doing it alone. You are bound to experience some financial ups and downs in life, and nothing sets you up for frustration like getting into the ‘real’ world without having first spent a bit of time learning about the implications of your financial decisions.