Archive for the 'Financial Advice' Category
For some reason, college students seem to get scammed quite a bit. Unfortunately, all of the scams and rip-offs cannot be avoided, but there are some good ways to help ease the pain. Here are some of the biggest rip-offs on college campuses, and some suggestions for avoiding them.
Textbooks - There may be no greater injustice than how much one must pay for textbooks. Even if you buy used textbooks from the bookstore, you still pay much, much more than they pay you when you return it at the end of the year. For example, the bookstore bought my Statistics textbook (that I paid $100 for) for $15. They turned around and were selling used copies for $50 bucks. What a rip-off! Not to mention, many of the textbooks that are required are written by the very professor who’s teaching the class. I wonder if they get a profit when someone buys the textbook they wrote? I was furious one time when I had to buy an Economics textbook for $50 dollars. We never ended up using it at all (the entire class was just lecture notes), I got my A, but the University Bookstore wouldn’t buy it back because they were releasing a new edition.
Rip-off Defense: The best way to defend against the injustice that is college textbooks is to avoid the bookstores at all costs. EBay and Facebook Marketplace are great venues to find used textbooks for better prices. There are also a slew of used textbook stores available online (although I’m not sure how good some of the deals are, or if they may be rip-offs in and of themselves). If you can buy one textbook and share it with a friend in the class, you can also save some cash. Better still is to just buy it from a friend, he or she will give you a better price than the bookstore (they may even get more than the bookstore would offer as well).
Campus Parking - Campus parking varies from school to school. From what I’ve seen, large urban schools are where students get screwed the most. At my school, a parking pass that allows you to park literally a few miles away from main campus costs $300. Four years previously it only cost $60. Not to mention the battle that usually occurs when students have to deal with parking officers. In fact, last year alone I probably spent almost $500 on parking and tickets (there’s a few lengthy stories, but I assure you, I was getting scammed by campus parking enforcers). Using parking meters is just bad news because some transportation and parking officers will sit and wait for the meter to run out (seriously, it happened to my dad when he was visiting me). Small colleges generally have much better parking, but passes are still quite expensive almost anywhere, and tickets are always terrible.
Rip-off Defense: If you don’t need a car, don’t bring it to campus. Use alternate means of transportation (campus bus services, shuttles, a bike, even a skateboard), bum rides off of your friends. You can also try to find better parking for cheaper (possibly going through local businesses), or just move your car around in business lots and hope you don’t get a ticket. Other than that, universities pretty much own students with parking fees.
Athletic Events - Now, I realize that many schools are different. Smaller schools certainly don’t make students pay for tickets (or, if they do, it’s pretty cheap). However, for those of us at big time programs, tickets to football and or basketball can be a complete rip-off. When my grandfather was at Ohio State, tickets to every football and basketball game cost a total of $5. Well, I just paid $180 for tickets to 5 home games. Oh my, how the times change. I realize that student tickets are still discounted, but given the fact that many schools don’t sit their students on the 50 (or half court), or anywhere near the best seats, I think it’s a rip-off. It’s the students’ team, so they should be allowed to have the best seats, at the lowest prices.
Rip-Off Defense: One option is obviously just not going to games. However, for me, that’s unthinkable. The best defense is to buy your tickets, and subsequently sell tickets for any games that you may not be able to attend (or don’t want to attend, although even playing a I-AA team can sometimes get interesting). Generally speaking, students can charge some alumnus much more than they paid for a halfway decent game. Some students can even profit from it. In fact, my friend actually would buy college sports tickets, and then sell them.
Credit Cards - Credit card companies LOVE college students. They give students loads of credit because they know their parents will bail them out. They also want to get students spending early and often. They offer great promotions (”sign up for this credit card and get a free hat!”) in order to get students to sign up. If you ever notice, the credit card companies and banks may be out in force when students first arrive back on campus. That’s because they want you to get in debt ASAP. They know that most college students are living on their own for the first time, and who doesn’t want to use that nice piece of plastic for pizza and beer every night of the week? Credit cards are pretty much one of the biggest rip-offs college students face.
Rip-off Defense: The biggest mistake you can make is to sign up for multiple credit cards. My step-sister once thought she’d be clever by signing up for loads of credit cards, collecting the promotional rewards, and then promptly canceling them. Well, canceling all those credit cards pretty much destroyed her credit, and it took her a long time to get it back on track. I suggest getting one credit card (because it’s a great idea to build credit while in college, else you get stuck with a $500 monthly credit limit when you’re 24, which happened to my other sister who didn’t want to get a credit card in college), sticking with it, making payments on time, and just be smart with your money. Credit card companies will still love giving you more credit (especially if you pay on time). My credit line more than doubled randomly. When I asked the credit card company why this was, they told me they weren’t at liberty to discuss it, which I thought was quite odd. In any case, they want me spending more, but I’m not going to let them win.
Random University Fees - Every time I turn around and look at my tuition bill, it seems like there’s another fee. There’s the basic classroom fee, and obviously the professors’ salary, but there’s also other fees that sometimes I don’t feel I should have to pay. Paying for a huge recreational facility that not everyone uses doesn’t seem logical to me. Paying a fee for free bus transportation when I don’t use the bus also doesn’t seem quite fair. Calculate the fact that there may be loads of other fees that seem to make little sense, and college students sometimes get ripped-off by their own university. Sometimes I wonder if Universities enjoy going Hughes Net on their students.
Rip-off defense: I’ve said it before, but use the university resources you pay for. You can’t really avoid having to pay the fees. The university is the boss, and you’re just a lowly peasant. You could have a student rally in protest if you want, but generally the results aren’t very favorable. If they are going to charge me an arm and a leg for a recreational facility, then I’m going to make sure I hit the gym like Arnold Schwarzenegger.
Campus Dining - I hesitate to list this one, because it seems like every college has a different way of doing meals. My college has meal plans. My girlfriends’ college makes students pay a flat fee in the beginning of the year, and meals are essentially come and eat as you please. That being said, campus dining generally always over charges. I know students can eat more cheaply (and possibly more healthy) then they actually do. Not to mention, sometimes the quality of college cafeteria food is very poor. If I’m paying hundreds of dollars a quarter to eat, at least let me have a nice steak! Not to mention, campus-dining hours always seem to be ridiculous. I hate how on weekends cafeterias have weird hours, so students are forced to go elsewhere or figure something else out. As for breakfast, some colleges hold breakfast from like 7-10AM. What college student wants to have to wake up that early to get breakfast? Especially if they have class at 12. Maybe I’m just lazy and love sleep, but come on, is serving breakfast until 2PM really that difficult?
Rip-off Defense: The best defense for this depends on how you’re university runs things. In my case, it means choosing the cheapest meal plan that will fit your needs, and possibly getting your own food and trying to cook cheaply for yourself (Ramen noodles galore). In the case of schools like my girlfriend’s (who have to pre-pay for their food), it means eating in the cafeteria whenever possible, no matter how terrible the food might be. Pretty much having bad college food is almost unavoidable. It’s almost a right of passage.
Unfortunately, when some people look at college students, they only see dollar signs. So, following these few tips may help you to not get completely ripped-off in college (but once again, sometimes it is just unavoidable).
September 27 2007 | College Advice and Financial Advice | No Comments »
College is a great time to get your first credit card. It’s relatively easy to get a credit card while you’re in school, even if you have little or no prior credit history. If you manage your card wisely and keep your spending under control, you can learn the basics of finance while avoiding debt and establishing a solid credit history. You’re going to need a credit card anyway once you leave school, so why not take advantage of the opportunity to establish credit now. Once you’re out of school, your good credit will save you a lot of money and a lot of hassle.
If you aren’t already being bombarded with credit card offers, you will be. Here are a few things to consider when comparing credit cards.
1. Rates - Sure, that 0% introductory rate looks like a great deal. And it is, at least until the introductory period ends or the credit card company decides to hike your rate. More important than your introductory rate is your Purchase APR. APR stands for annual percentage rate, and is basically the cost of having a balance on your card. Your Purchase APR is the interest rate the credit card company charges you on credit purchases after the introductory period is over. This isn’t the only rate, however. There are usually different (and higher) rates on cash advances and balance transfers. Lastly, take a look at the Default APR. That exorbitant rate is what the credit card company will charge if you don’t pay your bill. Scary, isn’t it? This is one reason why it is so important to stay current with your bills.
2. Fees - There can be a lot of costs associated with a credit card, and not all of the costs are immediately apparent. Read the terms to find out what fees are associating with signing up for and possessing the credit card. Is there an application fee or a processing fee? Both? You can probably find a credit application without either of these fees, so why bother paying more if you don’t have to?
Check to see if there is an annual fee associated with the credit card. Sometimes there are annual fees up to $100, just for the convenience of having the card. Again, you can probably find a credit card offer with no annual fee. Keep in mind that a card with an annual fee may have a lower interest rate than a card that has no annual fee. If you plan on paying off your balance in full each month, choosing a card with no annual fee is going to save you money. If you plan on carrying a balance from month to month, it may be better to choose a card with a lower rate and an annual fee. Bust out the calculator (or the Excel spreadsheet) and figure out if a lower rate is still going to save you money after the annual fee.
3. Grace Period - Many credit cards have a “grace period.” This is the amount of time that new purchases remain on your account before the card issuer begins to charge interest. If you have no outstanding balance on your account, and you buy a CD for $15, finance charges will not accrue on that new balance until after the grace period is over. If you plan to pay off your balance in full each month, a long grace period can save you a lot of money on finance charges. Check to see if there is a grace period on any card you’re considering. Also, keep in mind that grace periods may apply only to purchases, and not to balance transfers and cash advances.
4. Rewards - Take a moment to carefully consider the rewards program associated with a credit card offer. Is it really going to save you time or money? Does it offer a real value to you? Not all rewards programs are going to be useful to college students. If you think a rewards program will be beneficial, read over the terms to figure out what you have to do to qualify for rewards and what you could do to lose them. Rewards programs may not be as straightforward as advertised. Don’t be distracted by a fancy, complicated rewards program. Find what works for you, and place a higher emphasis on rates and fees.
5. Fine Print! - I cannot stress this enough: you HAVE to read the fine print. It may be boring and take a while to read the fine print, but it is worth your time and effort. All the terms are laid out there in the application, and by submitting your application you are legally agreeing to those terms. You have to know what you’re getting into. Make sure you have read and understood the terms and conditions before you submit an application. If you’re having trouble understanding the terms, call the company issuing the card and ask for an explanation. They have people who are paid to answer your questions. If you are polite with them it can be a very easy and informative phone call.
To be sure, you don’t have to read the fine print on every card you consider. You can use factors such as fees and interest rates to weed out undesirable offers. Then you only have to read the fine print on applications you intend to submit.
6. Card Issuer - It’s important to pick the right company with which to do business. Are you going to be dealing primarily with a large national company, or with a smaller local company? Is your card going to be widely accepted, or will it limit where you can make credit purchases? It may be most convenient to try to get a credit card through the bank where you already have an account. That way, you can manage your banking and credit through a single institution. Credit unions and smaller card issuers, like community banks, may be more lenient with the “rules” of the credit agreement and will likely have smaller fees than larger card issuers.
Make sure that the card issuer you choose reports to one of the three major credit reporting agencies. This is important because you are establishing credit. If your card issuer does not report to the credit reporting agencies, all of your careful credit management will not be rewarded with good marks on your credit report. Credit reporting is essential for the college student looking to establish credit.
It is also important to find out the company’s policy if you’re having trouble paying your bill. Certainly no one plans for that kind of situation, but it is a very important thing to consider. A helpful policy can save you a lot of money, a lot of stress, and a lot of bad news on your credit report. If the company’s policy is not apparent on the credit card offer or on their website, do not be afraid to call and ask. Again, the company has people who are paid to explain these things. If you are polite and friendly, you can learn a lot.
7. Online Convenience - When it comes to using the internet to manage various aspects of one’s life, college students are more adept than any other demographic. We’re already signing up for classes online and keeping track of friends using Facebook. Some of us are even monitoring and managing our bank accounts online, (and if you aren’t already, you should be). College students can use their internet aptitude as a tremendous advantage in responsibly managing their credit cards. Many card issuers will let you keep track of credit expenses and view statements online. You can make payments from your computer without ever having to run off to the post office or deal with unorganized papers and envelopes. If you have a checking account that you track or manage online, your bank may offer free online bill pay. If you don’t see this option available, call and find out for sure. While I wouldn’t recommend going completely paperless (because it’s important to have a paper record if you ever have a dispute with your card issuer), the lack of online account management options would be a deal-breaker for me and should be for any college student looking for a credit card. Pick a card that you can manage online.
Now that you know what to look for, it’s time to take a look at some offers. You can start checking out the offers available through the advertisements on this site. Bankrate.com also has a credit card search engine and a page where you can compare student credit card offers.
There are a lot of creditors on the market competing for YOUR business. With so many offers available, you don’t have to settle for a high rate or annual fee. Don’t just apply to the first offer. Shop around and see what you can find. If you’ve got someone on the phone or a sales representative in person, don’t be afraid to ask for a better rate. Many times, the first rate you see is not the best rate the creditor is willing to offer.
Take advantage of this opportunity to establish credit. It is easy to get credit while you’re in school, but after you leave school, lenders will be much more hesitant to do business with you if you don’t have any credit history. What does this mean? First, it means that without a credit history, you will face more difficulty obtaining financing. When you do get credit, you will be paying much higher finance charges because your rates will be higher. If you buy a house or a car, higher finance charges could add thousands of dollars—even ten of thousands—to the total cost. As you can see, establishing good credit now will be tremendously beneficial for many years to come.
August 24 2007 | Credit Cards and Financial Advice | 4 Comments »
If you’re anything like me, you’ll try to get some extra cash for college any way you can. There are loads of scholarships available for students based on grades and need. However, there are some really strange and unique scholarships out there that one would do well to consider applying for. Almost anyone could qualify for, and possibly receive at least one of these 32 scholarships.
1. If you find yourself having to duck to enter doorways then you might qualify for this scholarship. If you are a male 6′2″ or taller, or a female 5′10″ or taller, then you can be in the running for the Tall Clubs International Scholarship. All you have to do is write a simple essay entitled “What Being Tall Means to Me,” and you could be the recipient of $1,000.
2. I’m left handed, and sometimes it really stinks living in a right-handed world. No matter, even though scissors are still a battle, and I always get ink smudges on my hand when I write in a notebook, I can still get a scholarship. If you are left-handed and go to Juniata College (Huntingdon, PA), then you can try to get up to $1,000 that is offered to two left-handed students each year. Call 814-641-3142 for more information about the Frederick and Mary F. Beckley Scholarship.
3. Is it rabbit season or duck season? I never know, but you can always try to win the Chick and Sophie Major Memorial Duck Calling Contest. This is open to any high school senior in the US who is adept at calling ducks. The winner, gets a $1,500 scholarship, with first runner up getting $500, second runner-up getting $300, and third runner-up getting $200. Call 870-673-1602 or visit the web site for more information.
4. Smells like college debt. The Fragrance Research Fund makes a scholarship of up to $50,000 available to clinical psychologists who are completing post-graduate research in aromachology. I always knew my fantastic sense of smell might come in handy, alas, I’m not studying anything at the post-graduate level. If you are, you can get in touch with the Fragrance Research Fund - 145 East 32nd St., New York, N.Y. 10016-6002.
5. Did you ever think that milk would do the body as well as the wallet good? If you excel in academics, athletics, leadership, and community services while sporting a milk mustache, then you can get the Scholar Athlete Milk Mustache of the Year (SAMMY) Award.
6. Are you a Sk8er Boi? Can you spell better than Avril Lavigne? If so, than you might be able to get this scholarship. The Patrick Kerr Skateboard Scholarship is available for students with a solid GPA (above 2.5), who like to ollie, fakie, grind, kickflip, and study (you don’t even have to be good at skating). There’s a $5,000 scholarship, and three $1,000 runner-up scholarships.
7. Ever watch Letterman late at night? I’m more of a Jay Leno guy, but Jay doesn’t have his own scholarship. Ball State University (located in Muncie, IN) offers the David Letterman Telecommunications Scholarship to students. Telecommunication students simply have to submit a variety of media for their project, with creativity being rewarded. The first-place winner receives $10,000 courtesy of the university’s very famous alumnus. There is no minimum GPA requirement, and the scholarship is awarded based on outstanding creativity.
8. It’s not what you know, but whom you share last names with. If you are fortunate enough to have the last name Van Valkenburg, or a slight variation, then you are eligible for the Van Valkenburg Memorial Scholarship, which offers $1,000, and it’s not restricted to a specific university. I, for one, am rushing down to the courthouse to have my name legally changed.
9. Do you want fries with that? Do you enjoy potatoes? Even if you don’t you can still apply for the Potato Industry Scholarship. It is up to $2,000 awarded to two senior graduate students who are in a field of study related to potatoes.
10. I was heart broken when I discovered that Santa wasn’t real. I shouldn’t have given up so soon, because I could have gotten a scholarship. The NCTA Help Santa Find the Perfect Real Christmas Tree scholarship offers $5,000 to $10,000 to persons ages 6 to 16 for the winning essay. If I had known, I would have been ho-ho-hoing all the way to the bank.
11. How much do you know? The amount could end up getting you some cash. If you know a whole lot about the FBI, you can get $250 via the FBI Common Knowledge Challenge. It is awarded to two high school students who win the quiz contest about the FBI. I wonder what Hoover would think of that.
12. Would you give Ms. Cleo a run for her money? If you can predict the future, then you might be able to get the Excellence in Predicting the Future Award. This scholarship is designed to encourage students to pursue economics and take part in the prediction market.
13. Everyone says that prom is one of the most memorable times in high school. Why not make it a profitable time as well? The Duck Brand Duct Tape Stuck on Prom Contest offers $6,000 in the form of a scholarship to the winning couple that makes their prom outfits out of duct tape. Persons who wish to enter are given a large selection of tape to use.
14. If you aren’t tall enough for the tall scholarship, maybe you’re short enough for the short one. The Billy Barty Foundation offers scholarships to students who are short in stature. I’m short, but not quite short enough for this scholarship. One needs to be shorter than 4′10″ and have medical form as proof of dwarfism. For more information, call the Foundation at (818) 953-5410.
15. If you like Apple Pie, than you’ll love this scholarship. Students can enter the Culinary Institute of America’s All-American Apple Pie Recipe Contest. The person with the best recipe will win $25,000 for college. Second place takes $15,000, and third gets $10,000. Call 1-800-CULINARY for more information.
16. How good are you at welding? I couldn’t weld a box if I wanted to, but students who are interested in the craft are eligible for welding scholarships. The American Welding Society Scholarships can help students afford to be educated in the craft of soldering, brazing, joining, and thermal spraying.
17. Maybe you can’t weld, but maybe you can write or draw. The Writers and Illustrators of the Future Contest award a scholarship to student authors and illustrators in the genre of Science Fiction. All those years of obsessing over Battlestar Galactica may finally pay off for Sci-Fi fans.
18. If Lisa Simpson was applying for a scholarship, perhaps she would consider the Vegetarian Resource Group Scholarship. If carnivores annoy you, then you can finally get back at them by getting money for your beliefs (up to $10,000 to be exact). All students need to apply is to have promoted vegetarianism in their schools and/or their communities.
19. What’s your favorite fabric? If it’s wool, then you might be able to get a scholarship via the National Make It Yourself with Wool Competition (you could enter even if you didn’t like wool). If you are an ace in the area of fashion and you can make garments out of 100% wool (or 60% wool blend), then you should enter the competition.
20. Ever read The Fountainhead by Ayn Rand? Ever write an essay about it? The Ayn Rand Institute has a contest to see who can write the best essay concerning the novel. First-place winner gets $10,000. If only such incentives existed for all things one must read in high school, I may have actually read Macbeth.
21. Ever use or hear of a Gatling gun? Even if you haven’t, but your last name happens to be Gatling or Gatlin, then you may be eligible for the John Gatling Scholarship. The scholarship provides a full ride to North Carolina State University. Further proof that it may not be who you know, but who you share a distant relation to that helps you pay for college. Call the NCSU Department of Scholarships and Financial Aid at (919) 515-2421 for more information.
22. Any Star Trek fan would love this scholarship. The Klingon Language Institute (yes, there is one) awards $500 each year to a student who is in the field of language study. Don’t worry, you don’t need to know Klingon to get the scholarship.
23. I want candy. That being said, I also want money for college. The American Association of Candy Technologists (AACT) gives out a total of $10,000 to high school students who are interested in confectionary technology. I guess people can offset the outrageous dentist bills by having a college scholarship.
24. The truth is out there, and the truth is, that the Parapsychology Foundation offers scholarships and grants to students interested in parapsychology. For those who may not be x-files fans, parapsychology is the scientific study of paranormal activity.
25. The Society of Performers, Artists, Athletes, and Celebrities for Space Exploration, Inc. (SPAACSE) is always willing to help people pay for college. Three $1,000 scholarships are given out to graduating high school seniors who are interested in composing essays about space travel. Douglas Adams would certainly have gotten this scholarship had he applied.
26. If you are planning on lofting your bed in college, then you should also look into getting a scholarship. The OP Loftbed Scholarship is a $500 scholarship given to selected essays that are submitted. The company that sponsors the scholarship sells loft beds (and offers help for students wanting to know how to build their own) and offers it as a way of giving back to the students who are their customers.
27. After years of being mocked by football players for being in the band, you can finally one-up them. The School Band and Orchestra Magazine Scholarship gives scholarships to musicians who have written great essays. There are a variety of topics, but one past topic was “How a Music Education Has Made me a Better Student.”
28. Not all money-related web sites are complete scams. The MoneyMatters101.com Scholarships are awards of $300 dollars given to students who write the best essay. The winning essay is determined to be the essay that best responds to the question of credit cards being too easy to get and if they are contributing to rising debt amongst youth in this country.
29. Ever wish you were in the Elks? Even if you haven’t, you can still get money from them. The Elks National Foundation Most Valuable Student Award gives 500 four-year scholarships. The amount per year is between $1,000 and $15,000. The scholarships are open to high school students and you don’t even need to have membership with the Elks.
30. I believe it was Snoop Dogg who so eloquently said “Calgon, calgon, take me away, I’m in the dirty dirty with my nephew J.” The Calgon Take Me Away to College Contest gives almost $8,000 away in awards to students. The host (Calgon, a company that produces a variety of body and bath products) opens the awards to students who only need to answer two short essay questions. Unfortunately for the males, it is only open to female applicants.
31. If you are entering college, Tylenol may become a necessity. If you are trying to pay for college, the Tylenol Scholarship can help you there too. In 2006 alone, over $250,000 was given to students all across the nation. Subsequently, many parents experienced headache relief as their college financial issues were taken care of by the medicine company.
32. Discover Card makes a living off of getting college students (and many other people) in debt. So, I guess they figured it was about time to give back. The Discover Card Tribute Award gives 10 $25,000 scholarships as well as almost 300 $2,500 scholarships annually. The only requirement is a 2.75 GPA, and you need to have showcased leadership within your community while having “faced a significant roadblock or challenge.” That’s a pretty easy scholarship to get (almost as easy as getting a new credit card in college).
So there you have 32 strange scholarships that almost anyone could get. So, if you’re having trouble paying for college, look no further because help could be just an essay (or ancestor) away.
August 20 2007 | Financial Advice and Financial Aid | 10 Comments »
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