Living Through Your First Semester: Cheap ways to live and be active

The frugal lifestyle of college students is legendary — and it is all too true.   If you haven’t yet felt the effects of a tuition bill, you might not understand just yet, but you certainly will in the near future.   While sitting around with friends, it may seem impossible to do anything without spending money on food, or gas, or….other substances, but there are several options to maintaining a balanced budget.

 

From food to fun, here are some great  ways to not spend a dime and still live happily:

  1. Clubs.  Look at the university club list and find something that you’re interested in.  Almost every club plans events, trips and socials, and if you convince some friends to join, it can be some great fun for cheap, or even free!

  2. Campus Events.  The campus occasionally holds musical and performing arts shows at Nordica or Emery.  There are many other events on a regular basis put on by the variety of clubs on campus; keep your eyes out for their advertisements.  Check out things like Dollar Movie Night and Popcorn Cinema, two great ways to see a movie and hang out with friends without stretching your budget.

  3. Games.  Whether it be kicking a soccer ball around or playing Cards Against Humanity, setting aside time for games can be a great way to have endless amounts of fun with friends.  Some board games and sport equipment can be expensive, but it’s a one-time investment, and in the end you’ll only have paid a few cents per use.  

  4. Walks and hikes.  We are fortunate enough to be in an area with many trails and woodlands.  You can walk to Bonney or Flint woods for a casual stroll, head down to the Sandy River for a walk and swim, or drive to hiking trails such as Tumbledown or Bald Mountain.  This is a free activity that is good for your mental and physical health.

  5. Food.  For your food budget, the answer may be obvious — if you’re living on campus, use your meal plan (preferably a small one) and make the rest of your food in the dorm kitchen. If you’re a coffee drinker, invest in a coffee maker; don’t go to Dunkin for your morning coffee. You will be surprised how much those small expenditures add up. Imagine yourself going to get a cup of coffee three times a week for $3 per cup, that’s a total of $36 a month.

  6. Jobs. Whether you work 12 hours or 2 hours per week, every little bit helps. Having an income will prevent you from exhausting your savings. There are many opportunities ranging from work study and work initiative positions at school to working for local coffee shops and restaurants. University jobs will more often provide flexible schedules for students; however, they most often offer fewer weekly hours.  It’s definitely worth it to drop off your resume at a few places.

  7. Take advantage of trip home. It’s always nice to see your family once in awhile. Plus all the extra free meals and laundry that you get.

Sign up for a one on one session today!

The purpose of the UMF Financial Literacy Outreach Program is to provide you with the tools to help strengthen your knowledge of your student loans and the financial world we live in. Whether you are a first-year student or a senior graduating in the spring, we have the tools to aid your specific situation. If you are interested in a one-on-one informational meeting, here is what we will cover!

In exchange for ONE HOUR (or less!) of your time we provide a personalized, holistic money management strategy:

  • Determine what amount of debt you will be looking at when you graduate
  • Discuss your options for repaying and lowering this debt
  • A rundown of all the available tools to help reduce your financial burden
  • We can tell you if you qualify to have loans forgiven! (Free money!)
  • Set you up to take control of your financial situation NOW
  • Help you develop a comprehensive budget and savings plan to help direct your financial decisions, and reach your financial goals!
  • Help you ‘find money’ that is being wasted frivolously
  • Provide tools for your financial future
  • This includes online banking, Mint.com, NSLDS.ed.gov, and more!

Email a peer financial assistant or visit us on Facebook to sign up for your own one on one session today!

Whats your game plan?

Maine education services has created an online quiz geared to help students understand how their loans will play out. The game plan has you enter loan information, information about plans for a future career, and future loans, then crunches the numbers and gives you a picture of what this will look like financially and how it will impact you. Take five minutes and educate yourself!

Student Loan Education (communications)

Student Loan Education

On subsidized Stafford Loans, the federal government pays the interest while the student is still in school. On unsubsidized Stafford Loans, the student is responsible for interest while he/she is still in school.

Students may choose to defer paying interest on unsubsidized loans by capitalizing that interest. However students should be very familiar with the process of capitalizing interest and what the implications of their decision to capitalize may be.

What does it mean to capitalize interest?

Capitalizing interest is the process of skipping your interest charges and adding them to your existing principle, or loan amount. As the lender adds the interest charges to your principle, your principle grows. As your principle increases, so does the amount of interest you must pay in the future. While your interest rate remains the same, the amount you pay interest on increases. Just because it gives you a chance to defer payment for a while doesn’t make it a good idea…it is not a free extension on your loans. DON’T CAPITALIZE YOUR INTEREST.

When Does Capitalization Occur?

Capitalization occurs when repayment of the principle loan amount begins. Because any capitalized interest is added to the principle loan amount, your interest payments will remain fixed until repayment of the principle begins, at which time your interest payments will be recalculated to reflect the larger principle amount (principle+capitalized interest)

Example of two students:

Jim and Kim both have $4,000 in unsubsidized Stafford loans at 6.8% interest and have opted for a standard (10 year, fixed monthly payments of at least $50) repayment plan. Both attended school for four years and had a six-month grace period on their loans (54 month deferment period). Jim paid the interest – totaling $1,300 – while he was still in school. Kim made no payments, so the total accrued interest of $1,225 was capitalized at the time repayment began. By avoiding capitalization, Jim saved $690.40 on the total amount of his repayment—enough money to cover a month’s rent or a car payment and a month of auto insurance- that additional $690.40 translates into an extra $0.17 for every dollar borrowed.

How can I calculate the difference in what I owe with and without capitalizing my interest?

There is an easy to use online calculator at finaid.org which can help you to establish the financial implications of capitalizing your particular loans.

Interest Capitalization Calculator- http://www.finaid.org/calculators/interestcap.phtml