Financial Planning for Entering College Students
By Wesley Lumpkin

Going off to college is a very exciting time for every high school graduate. However, sometimes lost in the excitement of his or her new endeavors is the thought of financial preparation. There are several different ways to prepare monetarily for college:

Financial Aid. The first step for any future college student is to fill out the Free Application for Federal Student Aid (FASFA). This will open the door for students in the federal aid process. Federal aid is usually determined by a student’s and his/her parents’ income. Basically, the more money you make the less the government will give you. However, there are lots of other ways to pay for college.

Loans. There are a number of different types of loans that can be borrowed for your education. The United States Government offers Federal Subsidized Stafford loans for those with a significant need for funds. This type of loan will allow you to attend college while waiting until you graduate before you start paying back what you owe, provided that you meet the minimum requirements. Also, since this type of loan is subsidized, you will not have to pay interest on the borrowed amount.

Scholarships. Scholarships are an excellent way to receive money for college. The rule to remember when it comes to scholarships is to apply to as many as you are eligible for. This will increase your chance for actually getting one. It depends on the circumstances, but I have found that for every ten that I applied for I might receive one.

Summer Job. The summer before you attend college is not too late to start saving. The money you make over the summer will pay off in the long run provided that you save it. With the cost of books, meal plans, transportation, and university fees that seem to go on forever, a summer job can’t hurt.

Save Your Money. The most important thing to remember once you get to college is to save, Save, SAVE! One thing that gets most college students in trouble is a credit card. Although useful in emergencies, credit cards can ruin a student’s education. The cost of a college education is already high enough without the worry of a monthly bill. Fifty percent of all college dropouts say that the anxiety of college debt is the reason they dropped out. The average college senior graduates with a $3,000 debt hanging over his/her shoulder not caused by tuition but by credit card debt. If you use a credit card, do it responsibly and don’t allow yourself to get into too much debt.

Keeping these things in mind can save you tons in the future!