Category Archives: Students and Parents

Financial need, Money Management, Students and Parents

Budgeting While in College

Before your first day of college, it’s important to consider creating a budget for the upcoming school year. If you know how much financial aid you’ll receive, evaluate your other monthly expenses that are a priority. You may have responsibilities such as car payments and maintenance, cellphone service and miscellaneous items. Remember that financial aid can only be used for educational, and some living expenses, so a budget can help with planning for other important purchases. Here are a few tips to assist with developing a budget while in college.

Talk it out. Talk to those who are helping you pay for college. Whether it’s a parent or guardian, conversing with those who are supporting your educational pursuits allows expectations to be set for everyone involved. Even if you’ll be supporting yourself financially in college, inform others that you’ll need to be wise with managing your resources and may not be able splurge on certain items or activities. Talking it out allows everyone to be on the same page.

Essentials first, fun second. When developing a budget, account for necessities first, – housing, transportation, utilities etc. – then designate money for entertainment. Using this order can ensure your living needs are taken care of while still giving you room to enjoy leisure activities. Some college campuses host many fun, free events that could make the most of a small entertainment budget.  

Discounts and sales help. Check to see if your favorite stores offer a college student discount, as many companies do. While this tip may not directly relate to developing a budget, it can help you stick to the one you create. Clipping coupons along with shopping on sale can also assist with managing your finances. Browse retailers’ websites or apps for coupons and sales that may help with purchasing items on your shopping list.

Avoid budget busters. Daily coffee runs or trips to the vending machine can eat away at your budget. You don’t have to stop these altogether, but limit yourself to one or two splurges a week. Buying a coffeemaker and snacks from the grocery store can minimize the impact of these habits on your budget. Additionally, instead of eating out often, utilize your college meal plan or pack a lunch. You can see what habits are busting your budget by using a budget tracking app. Trackers can show your spending behavior and give you insight to routines that may need to change.

To learn more about tips for budgeting while in college, visit OklahomaMoneyMatters.org.

Students and Parents, UCanGo2 Resources

UCanGo2.org’s Checklists

The Oklahoma College Assistance Program offers a variety of online publications through UCanGo2.org that help students prepare for their transition to college. Their most popular publications are the college planning checklists. These checklists are available for grades 6-12 and help students and their parents with the specific steps they should be taking during each year to reach their higher education goals.

On the Senior Checklist, 12th-grade students may notice many of the steps center around the Free Application for Federal Student Aid or FAFSA. The first “to-do” calls for students to create an FSA ID. Seniors can reference the FSA ID Worksheet to keep track of their username and password each year they complete the FAFSA. There is also a copy of the FSA ID Worksheet available in Spanish. The second “to-do” calls for students to complete the FAFSA after Oct. 1 each year they need funds for college. A helpful tool to complete this step is the FAFSA in Five publication. With this resource, students can make sure they have all the necessary materials to complete the FAFSA. Students must also determine their dependency status on the FAFSA. A helpful resource to determine this is the Dependency Questionnaire. If they answer “yes” to any of the questions on this form, the student is considered an independent and won’t need to include their parents’ information on the FAFSA.

Not a senior yet? No problem! There are many more publications and helpful tools for students to use as they progress through middle and high school. Below are the college planning checklists for each grade. Be sure to follow the suggested links on each one to discover additional resources:

Junior Checklist

Sophomore Checklist

Freshman Checklist

8th Grade Checklist

7th Grade Checklist

6th Grade Checklist

Financial need, Money Management, Students and Parents

529 Savings Plan

“Save, spend, invest, give,” is a popular approach to basic personal finances. There are ways to use this method to your advantage when preparing and planning for your child’s educational future. Parents and families have an opportunity to help their children avoid the burden of student loan debt by saving money, so their child or grandchild doesn’t have to spend an overwhelming amount of money on tuition. By investing in your child’s future, you’ll give them the means to reach their education goals.

 An Oklahoma 529 College Savings Plan is a specialized savings account that’s used to pay college and K-12 tuition expenses. The money in these accounts can grow tax-free and isn’t taxed when withdrawn. In other words, no matter how much your investment grows in an OCSP (Oklahoma 529 College Savings Plan) account, you’ll never have to pay taxes on it as long as it’s used for educational expenses.

A 529 account is quick and easy to open, it can be managed online or by mail. You can set up automatic contributions from your bank account. Some employers also support these accounts and can set up payroll deductions directly to your savings account.

There are a variety of professionally managed investments to choose from to help grow your account in addition to providing direct contributions. These funds can be used at any accredited university, college or vocational school in the nation. Many international schools are also qualified to receive these funds. Additionally, up to $10,000 annually can be used toward K-12 school tuition.

OCSP can be used for certain room and board costs, computers, fees, books, supplies and other equipment that a student may require.

A common question is, “will these funds negatively affect my child’s eligibility for financial aid?” As long as the parent or grandparent is the account owner, funds are treated as belonging to the guardian and not the child. This will minimize the impact on the child’s financial aid. The direct impact on financial aid will vary by school.

If your child does not need all of the money for their education goals, you can designate a new beneficiary penalty-free as long as they’re an eligible member of your family.

So how to you start? You can open an account with as little as $100 per investment. There’s no application, sales or maintenance fee and you don’t have to contribute all on your own. Grandparents, other family members, friends and even the student can make gifts and contributions to the account.

It’s not too early to start investing in your child’s future. Learn more about the benefits of an Oklahoma 529 College Savings Plan here.

Apply Online, Financial need, Grants and scholarships, Students and Parents, Types of Financial Aid

Summer Scholarships

Summer break is closing in! This is the time when many students jump back into their summer jobs to earn a few extra bucks. While a summer job is a great first step to easing the financial responsibility of college, there are also opportunities available all summer long to find scholarship money.

Many scholarships have deadlines from May-August and the awards can be applied to the upcoming school year. The more scholarships a student applies for, the greater their chance of being selected a winner. We suggest that students apply for at least 1-2 scholarships per week. There are plenty of scholarships that only require a simple application and/or a short essay. A little effort can reap great financial benefits, so while you’re catching some rays, pull up your favorite lawn chair, grab an iced tea and check out these fun summer scholarships:

Flavor of the Month Scholarship

“Summer and ice cream go hand-in hand. In fact, July is National Ice Cream Month, and that’s the inspiration behind this award. We think people are very similar to ice cream…so if you were an ice cream flavor, which would you be and why?”

Deadline: July 31, 2020

Amount: $1,500

Check out this scholarship and more!

Solar Action Alliance Scholarship

It’s summertime and the sun is shining. Solar Action Alliance wants to spread the word about the most clean, reliable and abundant source of renewable energy: the sun. They are offering a scholarship to a motivated student who can answer the question: “What excites you most about the future of solar power?” Students must submit their answer in the form of a 500-1000-word essay.

Deadline: July 1, 2020

Amount: $1,000

Check out this scholarship!

Slumber Search Scholarship

Summer is a good time to catch up on sleep. It’s also a good time to apply for scholarships! Slumber Search wants to assist students as they start their entrepreneurial endeavors. To apply, students must create a short video answering the following questions:

“If you were to create a product or business to disrupt a current industry, what would you do and what would it be?”

Deadline: June 30, 2020

Amount: $1,000

Check out this scholarship!

Want to find more scholarships? Check out UCanGo2!

When you’re submitting your scholarship applications, be sure to remember these tips:

  • Check your eligibility: Some (not all) scholarships have age, grade level or GPA requirements. Be sure you are eligible before investing your time in an application.
  • Check the requirements: Do you have all of the documentation required for your scholarship? Do you need letters of recommendation? Be sure to double check that you’re prepared to submit a complete application.
  • Proofread: Verify that your contact information is correct on scholarship applications. Also, make sure you review your essay, if one is required. Represent yourself well with professional and clear writing.
Financial need, Money Management, Students and Parents

Summer Prep for Incoming College freshmen

Graduating from high school is a huge milestone. Before you finalize your summer plans though, consider adding a few activities to your list. Implementing these tips will help you prepare for your college freshman year as you enjoy a well-deserved summer break.  

Read and review. High school may be over, but the concepts you’ve learned will appear again in upcoming classes. Since college courses typically don’t review previous material, prepare by studying subjects that gave you trouble in high school. Mastering these academic areas can aid in your college success. Reading often will help with future comprehension and critical thinking assignments.

Develop a routine. It’ll take discipline to balance coursework, other responsibilities and time with friends when you begin college. Therefore, develop a summer routine to practice designating specific times for certain activities. While your schedule will probably change when classes start, you’ll gain great time-management skills that’ll assist with meeting new academic expectations.

Gather supplies. Get an early start on back-to-school shopping. Already have your college schedule? Great! Use it as a guide to purchase supplies. Compare prices when buying course textbooks and technology. If you don’t have your schedule yet, consider purchasing the common necessities – notebooks, writing instruments, folders, backpacks, planners, etc.

Connect with others. Use social media to connect with future roommates or other students who will also be attending your campus in the fall. Converse with those who have similar interests. Not only could these connections create lasting friendships, but connecting with others before school starts could make the first few weeks on campus more enjoyable.

Explore careers. Summer is a good time to explore career interests. If you’ve already decided on your college major, research popular jobs in that field of study. Even if you’re undecided, take time to discover which industries pique your curiosity. Researching different professions allows you to see which career field could be a great fit for you. To learn about various occupations and to view over 400 videos detailing possible careers, visit OKcollegestart.org.

Student loans, Students and Parents

Student Loan Grace Period

While searching for ways to pay for college, it can be encouraging for students to discover that federal loans help ensure their ability to fund higher education. Many student loan borrowers have questions about how loans work, different loan types, repayment options, and the grace period. It’s important for them to be well-educated on this process before they enter repayment. Here we will provide information on understanding the grace period.

What is a grace period?

One of the advantages of a federal student loan is the six-month grace period. Borrowers usually aren’t required to make a payment on their loan until six months after they graduate, withdraw from school or drop below half-time enrollment status. The grace period gives borrowers time to find employment and adjust their budgets accordingly.

How does a grace period work?

During a grace period, interest will accrue on Direct Unsubsidized Student Loans, and sometimes subsidized loans (see the ‘Interest’ section of the Master Promissory Note, or MPN). Borrowers are strongly encouraged to make interest payments on their loans while in school and during the grace period, if possible, in order to keep the interest from being capitalized (added to the principal balance of the loan). Be sure to visit ReadySetRepay.org to see how making interest payments while in school and during the grace period can help you Save Money on Student Loans.

Here’s something else you should know. A borrower could possibly have more than one grace period to monitor if they’ve dropped below half-time status at their school for any reason. This scenario could take place if a borrower had loans at one college and then borrowed again when they transferred to another college. Dropping below half-time status at one or both of those schools would change the timing of their grace period, thus starting the six-month timeframe at different intervals. It’s important that student loan borrowers talk to their school’s financial aid office, or their loan provider, to confirm repayment start dates on each of their loans.

More information about successful loan repayment can be found at ReadySetRepay.org.

Financial need, Money Management, Students and Parents, Types of Financial Aid, UCanGo2 Resources

Military Benefits and the FAFSA

When it comes to reporting military benefits on the Free Application for Federal Student Aid, or FAFSA, families aren’t always sure what to include. Three questions on the application relate to military benefits; they request information about combat pay, housing allowance and noneducational veteran benefits. Let’s break them down here.

  • The first question concerning military benefits asks about the service member’s total combat pay. Depending on the military member’s rank, this benefit may not need to be reported. If the person is an enlisted member or a warrant officer, they don’t have to provide this information. However, if they are a commissioned officer, they will need to report their combat pay. This amount can be found on the service member’s W-2 form in box 12.
  • The next inquiry about military benefits concerns the service member’s housing allowance. Reporting this information is dependent on other factors. If the member receives a subsidy for on-base military housing or a Basic Allowance for Housing (BAH), then the member doesn’t need to report the benefit. Those who receive housing allowances other than the ones mentioned above must include that information on the FAFSA.
  • The last question regarding military benefits asks service members to report their noneducational veteran benefits. Those who receive the Montgomery GI Bill, Post-9/11 GI Bill, Dependents Education Assistance Program or Vocational Rehabilitation Program don’t need to provide this data. Those who receive other noneducational assistance, such as benefits including Disability, Death Pension, Dependency and Indemnity Compensation (DIC) and VA Educational Work-Study allowance, must report that information. Noneducational veteran benefits can be found on the service member’s monthly VA benefit statement.

Knowing which types of military benefit information to include on the FAFSA and gathering the right documents can make the process easier. The service member should collect the appropriate year’s tax return, W-2 forms and benefit statements to answer these three questions accurately. For more information about military benefits and the FAFSA, please visit MilitaryBenefits.info.  

Financial need, Money Management, Students and Parents, Tax Information

I Didn’t File A Tax Return for The 2019 Tax Year, Should I keep my W-2’s?

Quite simply, yes.

If you had income (earned and/or unearned) in 2019 and you are a single dependent who can be claimed as a dependent on someone else’s tax return, you may still be required to file your own return. The amount of your 2019 income will determine whether or not you need to file. See the instructions at the beginning of the 2019 IRS 1040 form, and look for page 10, Chart B.

Now that you’ve determined whether or not you should file a tax return, let’s just say you didn’t have to file because you didn’t make enough money. If this describes your situation, it’s still very important that you save the W-2(s) you received this year. You should have received one from each employer who reported your earnings and withholding tax to the IRS.

Why is it so important that you hold on to your W-2s? Think FAFSA! The Free Application for Federal Student Aid (FAFSA) will ask you to report your income from two years prior to the year that you’ll attend college. So, if you plan to go to college in the fall of 2020, you’ll need your 2018 income information. For the fall of 2021, you’ll need to supply the information from 2019.

Also, you’re still required to report your wage, salary and tip income even if you didn’t receive a W-2 from an employer. If you’re not sure what your income was in 2019, use the Income Estimator that’s available on your FAFSA.

Keep those W-2’s! You’ll need them when you’re applying for federal financial aid.

Financial need, Students and Parents

Happy “Pack Your Lunch” Day!

If you’ve taken a look at the Financial Aid Offer from your college of choice, you may have been surprised by the cost of room and board for one year of school. Your ‘room and board’ estimate covers two necessities that can’t be overlooked—a roof over your head and the food you’ll need to keep you going. Consider these tips to keep room and board costs low.

Where to live

  • Have you considered how much money you could save by living at home for another year or two? Nearby community colleges usually charge lower tuition, and they offer the same general education courses required at four-year universities. Add in your savings on room and board, and you’ve got a significantly lower total cost of attendance.
  • Living on campus? Consider this: a roommate can reduce the cost of room and board quite a bit.
  • Living off campus? As a general rule, you’ll find that apartments and houses located close to the campus will charge higher rent than those located farther away. Consider having two or three roommates if you have the space.

Where to eat

  • Colleges and universities offer various meal plans to their students, and meal plans are often required for those who live on campus. Consider trying one of the less expensive plans (less meals every week) and plan to prepare more meals in your dorm room, apartment, or off-campus rental. Maybe your roommate would agree to split the cost of non-perishable bulk foods that you both use frequently. Clip coupons for even more savings.
  • Limit eating out. Consider asking friends over for a potluck or ask them to bring sharable snacks.

Other ways to manage college expenses

  • Check out all available options for financial aid. Apply for scholarships every semester, not just your freshman year. New options are added each year and qualifications change. Don’t miss out on free money that you may be qualified to receive.
  • Is it absolutely necessary for you to have a car on campus? Consider riding your bike and using public transportation. Larger schools often have free or low-cost transit systems.
  • Graduate on time to reduce the total cost of completing your program.
  • Earn some money. Check on work-study jobs or find a part-time job in town.
  • Limit use of credit cards to true emergencies. You’ll likely spend less if you use cash, and you won’t risk paying interest on your purchases.

For more ideas on cutting the costs of college, be sure to read OKMM’s money management article, Getting Through College on Less.