Tag Archives: student

What you need to know about refund checks

WHAT IS A STUDENT LOAN REFUND CHECK?
Funding for a student’s account comes from a combination of sources including financial aid (student loans, grants and scholarships) and cash payments made to the University.
When a student has more funding on his/her account than the actual  balance due towards the University (for tuition, fees, etc.) that student will receive a check in the mail which carries the students excess balance.

WHO QUALIFIES?
Anyone is qualified to receive a refund check so long as they have taken out student loans in excess of a semester’s Cost of Attendance or have made cash payments in excess of a semester’s Cost of Attendance (or any combination of funding sources in excess of COA).

HOW DO I KNOW IF I’VE GOT ONE?
You will be alerted by the financial aid office if a refund check is waiting for you; this is typically done towards beginning of each semester, after all loans and scholarships have been disbursed (passed on to the students account).  In order to collect your check, you need to present two forms of ID.  

BEST WAY TO SPEND IT?
In an ideal world, all students that receive refund checks would be able to pay the money right back for next semester’s tuition.  If you do not need the money given to you in the refund, have the financial aid office put the check towards your next payment.  DO NOT view it as extra cash — especially if the refund is from student loans, which is money that you will have to pay back eventually, with interest, anyways.  If you can write the check off, a best practice would be to take the entirety of the refund check and use it to pay off a portion of your student loan balance. Make sure you alert the lender that the money is to be used to pay off outstanding interest and whatever is left over should go towards your principal. If you’re reticent to give the money up immediately, place it in a savings account to be used as emergency income at a later date, so that, if the need arises, you have a small income safety net. If you DO need the money, spend it on essential living expenses or educational costs (books, etc.).

A Note About Refund Checks:
University financial aid systems are subject to systematic error, as uncommon as they may seem. You may receive more on your refund check then you should actually be allotted. If you spend this money before double checking with the Financial Aid Office, you may end up paying back some, or all, of that refund check. Always double check with the FinAid office that the refund amount is correct before you cash the check.

Common problems and resolutions:
Late Paperwork: If you waited until the last minute to file your FAFSA and/or apply for student loans, anticipate that your refund check will not be available until later in the semester. Talk to your financial aid office to find out the turn around time. If they cannot give you a specific date, try to find a range, like sometime during the month of October. If you are really late, the refund may take until November, or possibly until the end of the semester.
Paperwork was submitted, but something was wrong: Maybe you forgot to sign something, or forgot to submit a very important form. You may think everything is complete, but it turns out you missed something. Make sure you review all documents, and follow up with your financial aid office early in the semester to make sure things are in order.
The Moral: If you are hoping for a refund check, submit all required info early, and follow up with the FinAid Office to make sure everything is in order. If you are late this year, patiently work with your financial aid office so that everything is done and you know a refund is on the way.

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.

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.

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

Budgeting Prezi

We’ve created a presentation on budgeting:

The dialogue to accompany the slides is as follows:

Intro

The basic premise…the most important aspect of budgeting… is understanding the in-and-out aspect of your personal finances. The ‘in’ being what you earn and the ‘out’ being what you spend. If you can justify the two against each other and have your earnings remain greater than your spending then you’ve successfully budgeted your finances.

(Slide 2 + 3) Finding Balance-Title slide/What are we here to learn

College is expensive but you can take a great deal of pressure off of your family and yourself if you can keep your own personal spending organized while you’re in school…plus learning these skills now just gives you another effective tool when working towards a successful life beyond college. To start, you must find a balance between your income and your expenses.

What can I spend?(Fix Title) (Slide 6 + 7)

Remembering that your loans are debt, and should be budgeted into your monthly allowances as such, is key. If you’re spending loan money on food and the money you earn working on non-necessities then you’ve got your financial priorities mixed up and are due for a reassessment of your goals.

The Importance of Budgeting (Slide 8)

Now I understand that nobody here is planning their finances for ten years down the road and I’m not suggesting that you do…it would be a waste of time as you just can’t anticipate life in that way…BUT helping to keep your finances in perspective while you’re in school will provide a foundation for life after school (and hopefully minimize the amount of debt you graduate with). A budget answers three basic questions: (slide 9)

Where does my money come from? (Slide 10)

Where is my money going? (Slide 11)

What choices should i make financially? (Slide 12)

Budget Definition

Expenses

Essentials and nonessentials

 

Essential Expenses:

Essentials: food, water, electricity, heat, a roof over your head…

 

Non Essential Expenses

a 50 dollar bar tab at the dugout or eating lunch out daily.

 

Setting Financial Goals

The first step to taking control of your finances is to set yourself a series of financial goals based around three primary categories. those categories are your saving, spending and your income.

(insert snapshot of the three goals)

Income Goals

Goals related to income are really relevant only to students with jobs or sources of monthly income…that being said a goal for a student without monthly income could be to find part time work for a certain number of hours each month or week.

Spending Goals

Spending goals should be as concrete as possible. You want to try to stay consistent with your spending goals so every month you can gauge what you can and cannot afford.

Saving Goals

Once again, how much you spend is more important than how much you earn. The percentage you save will depend on the amount you earn. For example: If you make $250 per month, and put 10% of that monthly income into a savings, you will be saving $25 per month. The important part sticking to that percentage.

Financial Zen

How much you earn, save, and spend are all dependent on each other. If you stay consistent and keep a monthly tab on all three of these aspects, you have a solid budgeting foundation.

Young Money Slide

It is important to know about your income and how much you can safely spend. If you are aware of these things, you’ll be on the right track.

So how do we balance Income VS Expense?

So now we’re going to show how to track and balance your income and expenses so that, at the end of the month, you’ll be left with a little extra money to put in your savings.  To start off, you should use the two-month cashflow worksheet that we’ve provided for you. You can find it on the FinAid website or have one of us e-mail it to you.

Cashflow sheet overview

It looks like this.  One section for monthly income and another for monthly expenses.  The spreadsheet has been populated with all of the calculations so all you have to do is customize the expense categories to reflect your personal spending habits and enter your income and expenses….the computer will do all the calculations for you.

Monthly Income

Any type of income inserted in rows 3 through 7 will automatically be added together and placed in row 8, entitled ‘Total.’

Monthly Expenses

Now, down to monthly expenses. Let’s say you’re beginning your cashflow sheet and you input your cell phone bill as your first expense: $200.  The sheet will automatically calculate itself, placing the $200 at the bottom in ‘Total Expenses’ and subtracting it from the income total above, leaving you with $800.  Budgeting your cash is as easy as copying down your expenses.

Proper Budgeting Worksheet

After you have gotten an idea of your expenses versus your income, you can create a more proper budgeting sheet.  In Monthly Income, place the maximum amount of money that you are able to receive in the budgeting column, and in Monthly Expenses, place the maximum amount of money that you are able or willing to spend.  After the month is over, input what you actually spent and received into the Actual column. Although this individual received 50 dollars less in actuality than they expected to in their Budget column and spent 50 dollars more in Groceries, they made up for it in spending less on gas, receiving 50 dollars in Other Income, and spent no money on Dating; leaving them with $50 as their Difference.  That’s fifty dollars more to put into savings.

 

Tips for Managing Money

Expect the unexpected. Expenses pop up when you least expect them and you don’t want them to affect whether or not you can travel or, worse, eat. Peer pressure is also a drain on funds… if you can’t really afford to drink beers then DON’T! Just because a debit card isn’t cash and doesn’t feel as immediate doesn’t mean it isn’t. think of it as cash. Because it is.

Big Expenses

These things seem intangible and way down the road, but trust us: four years in college flies by and all of a sudden you’re in the real world staring down the barrel of significant financial obligations. Be prepared for them by practicing good habits now. if you don’t…

 

Loan Repayment Schedule

One tool for helping you to budget is an interest rate table which, based on the amount of your loan debt, can help you to figure your monthly payments (if you haven’t already)

Helpful Budgeting Tools

Your smartphone is a great tool in preventing added financial burden… if you feel your debit account is in the red zone (near overdraft) then quickly hop on your phone and check your finances before you go down to the dugout for wings… it could save you 35 bucks in overdraft fees! This leads us to an important thing to consider as a student: Some banks will offer online banking, no atm fee’s, etc. As a student, especially if you are a freshman or sophomore, it is recommended to open a student checking/savings and use direct deposit. It is only beneficial to choose a bank with online banking and no atm fees (maybe one or the other), but most of all, do your research on the banks before you apply to open a new account.