Money matters

Tuition has gone up, and the economy is definitely down. Time to really get smart with your finances and find ways to make each buck go as far as possible, especially if you’re living away from your parents’ house for the first time (which you might want to avoid doing if your family home is local—waiting till after you graduate from college to leave the nest might be a smart move).

Do everything you can to spend your money wisely, but if you’re like many college students, especially these days, you may need a little help in the form of financial aid to help you get by.

“The financial-aid business is up,” noted Dan Reed, interim director of Chico State’s Financial Aid & Scholarship Office.

“We’re experiencing an increase in volume for lots of reasons,” said Reed, citing, for instance, applicants whose parents have had to spend their college fund for other expenses as a result of the downturn in the economy, or have been unable to remortgage their homes as planned to use for their child’s college tuition because of a drop in property values.

And, though most applicants for financial aid for the 2009-10 academic year already turned in their FAFSAs (Free Application for Federal Student Aid) when they were due in January, Reed expects more applications to come in (as they always do) right up to and into the coming school year, except at a higher volume than usual.

Reed, in fact, encourages anyone who needs financial assistance this coming school year who has not yet applied for aid to fill out a FAFSA (which is available online or in the Chico State Financial Aid office).

He pointed out that students who have already applied for aid and have, say, been turned down for grant money (eligibility for 2009-2010 is determined by income—either their own or their parents’, depending on the circumstances—in the 2008 tax year) may be eligible for money after all if they have experienced an “economic trauma,” such as job loss, in 2009.

“If something crazy has happened, like you used to work and now you don’t, come and talk to us,” said Reed.

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DYK … that you can be ticketed ($30) for parking too long in a metered stall? If you see a white line on a tire while refilling the meter, move your car!

“It’s never too late to apply,” Reed continued, “but grants like the State University Grant tend to run out. We get an allocation [for the State University Grant] and when we spend it all, it’s gone.”

But other grant money (which doesn’t have to be repaid), government loans (which do), federal work-study jobs and university scholarships all require the FAFSA to determine eligibility. Student loans require additional paperwork, and Reed recommends, if you need to go the loan route, taking out a government loan instead of a “private, consumer loan,” as the terms for the latter “are often not good.”

The nuts and bolts of how to apply for financial aid are laid out clearly at www.fa.csuchico.edu/fa, Reed pointed out. Basically, it goes like this: Get your application in, provide additional information/documentation if asked, wait for your app to be processed, and then look online to see if you’ve been awarded aid.

Reed highly recommends going for the grants, scholarships and work-study jobs (which he calls “self-help aid”) as opposed to taking out loans that have to be paid back after graduation.

University scholarships have all been awarded for the 2009-10 academic year, said Reed, “but that doesn’t mean there aren’t a gazillion scholarships—private scholarships—all over the place.” Go online to www.fastweb.com to research what’s available.

Tip: Reed recommends not writing on your scholarship applications, “I need this because I’m poor and I can’t go to school otherwise.” Everyone applying is basically in the same economic boat. Tell them instead why you are a good candidate for the scholarship; “why you are interesting,” he advised.

There are many special-interest scholarships, such as ones aimed at Latino students or re-entry students, but all scholarship applicants need to do “a good sales job,” said Reed, of promoting themselves, as competition can be fierce.

Applying for scholarships “can be a sort of thankless job,” added Reed. “Often you don’t even hear back, but keep doing it.” Persistence likely will pay off, “plus now you can list the scholarship you get on a résumé or your next application for a scholarship.”

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DYK … that wearing a LuLu’s T-shirt into the downtown clothier will get you a 10 percent discount?

Reed is also a big advocate of the Federal Work-Study Program.

“Federal work-study is an award you get that allows you to work on campus,” he said. “The advantages are that you get a paycheck, and an employer that understands academic demands, and you get to meet university staff.”

Loans, he warned, may seem like easy money, but “it’s important not to forget that these loans will catch up to you.” Racking up credit-card debt is also ill-advised.

“Be very smart about spending, about credit,” said Reed. “Avoid credit cards and loans. … Develop good spending habits. Make a budget and write down how you’ll spend it. It’s easy to get into significant debt if you’re not careful, and when you get out of school and have more expenses, well, some people actually experience a decrease in their standard of living after they graduate.”

“What we recommend is: Apply for financial aid, budget your money, and be careful about spending. You can’t control the price of books, for instance, but control all the things you can,” Reed summed up. “Top Ramen is not bad with a little mushroom and garlic on it. It worked for me.”

Reed stressed more than once that coming in to talk to a financial-aid worker and making use of other student services on campus, such as academic advising or psychological counseling, is crucial to success at the university, especially in these difficult economic times.

“It’s still a pretty good deal to go to a CSU,” in spite of the 10 percent fee hike, said Reed, “but the real cost of going to school is not that 10 percent. It’s life itself—gas, food, housing.

“There’s a significant amount of stress associated with the economic downturn,” Reed offered. “Come in to talk. Connect with the people at the university, in student services, with faculty. They will help make your experience at Chico State better.”

Some other tips:

• Get a couple of roommates (someone to share the bills with: important).

• Cooking at home is cheaper than going out to dinner. Have potlucks—it’s good, cheap, Chico fun. Shop at the farmers markets for inexpensive, fresh produce (and a little socializing on the cheap). Scan the local newspapers for coupons and meal-deals at local eateries (many restaurants have daily specials, and special days for cheap eats).

• Make regular use of the bounty of good local thrift shops and dollar stores. A great deal of things that you would pay much more for elsewhere—furniture, dishes and silverware, clothing, household and personal-care items, paper products, and so on—can be had for a fraction of the cost at these places. Ditto for the many yard sales that spring up around town every nonrainy weekend.

• Walk, ride a bike, or take the bus. Save your car for out-of-town trips or absolute necessity (carpool whenever possible).

• Don’t have two phones—if you have a cell phone, don’t get a land line.

• Don’t spend money on satellite or cable TV, or Internet; find places (like the university or a café) where you can use a computer or your laptop.