As some of us begin meeting with our academic advisors to plan for next semester and others start planning for life after college, now is a great time to start thinking about three financial events that also require preparation. By starting to plan and think through these events, you can save your future self a lot of stress.
- How to pay for college
In order to optimize your financial success during and after college and minimize the amount of student loans you will need, it is important to plan how you will pay for college. Here are three ways you can start minimizing loan amounts:
- FAFSA: Every year the Free Application for Student Aid opens on October 1st and K-State’s priority deadline to have it completed is December 1st (though you can still submit the FAFSA until June 30, 2023 for the 22-23 academic year). Filing the FAFSA allows you eligibility consideration for federal financial aid such as Pell Grants, work study and federal student loans. Filing the FAFSA also helps you become eligible for certain need-based and other state aid, scholarships, etc. as these organizations use your Expected Family Contribution amount and other data that comes from the FAFSA.
*Even if you think your family earns too much for you to receive any aid, we encourage you to fill the FAFSA out to be eligible for federal unsubsidized loans which are not need based and other aid opportunities outside the federal government that may require FAFSA information. Who know you may be pleasantly surprised and receive aid you do not have to repay.
- Scholarships: As free money you do not have to pay back, scholarships can significantly decrease the amount of student loans needed to complete school. However, in order to win them, it is important to regularly spend time searching, becoming a quality applicant, and applying. Each of which require time and planning ahead. See Cameron’s scholarship post on 9/17/21 to learn more scholarship tips.
- Work savings: In order to cash flow some or all of your college expenses, it is important to plan ahead to determine how much you will need to save in order to cover those costs. Meeting with a peer counselor can help you determine the amount of money you need to save and how many hours of work will be needed to achieve this goal.
- Transitioning into life after college
Life after college is both exciting and terrifying. By preparing ahead and beginning to think through some of these questions, you can help make the transition less stressful.
- How will your expenses change? Will you start being responsible for new expenses such as your phone bill, insurance, etc.? If you need to move, what will some of those costs be?
- If you have student loans, when will your payments begin? Who is your loan servicer? What payment plans do you have access to?
At Powercat Financial we understand each student has vastly different needs and concerns. We are uniquely suited to help you navigate this transition before you graduate.
- Emergencies and Unexpected Expenses
The last two years have reminded us more than ever before how quickly circumstances can change: job loss, hospitalizations, losing loved ones, power outages due to massive winter storm, flat tires, etc. The unexpected can occur at any point, which is why it is incredibly important to prepare for costly surprises before they happen.
- Emergency Funds: An emergency fund helps provide a buffer between you and the unexpected events of life. It is recommended you save 3-6 months of expenses in a savings or money market account for this purpose. These expenses can be for your bare necessities (food, shelter, basic transportation, etc.) or they can be the amount needed to maintain your current standard of living for 3-6 months. As a college student it can be hard save the full 3-6 months of expenses, so you can start by saving $500 or $1,000.
- Insurance: There are several different insurances which all help protect you financially from different events. While there are many types of insurance I specifically want to mention three kinds. Here is the general purpose of each type: 1. health insurance limits the amount you will owe out of pocket for a health emergency, 2. disability insurance replaces a portion of your income if you become disabled, 3. renter’s insurance can help protect your belongings.
Free tip: Set up an appointment with Powercat Financial today to help you find out how much you need for college, understand your student loans, learn to budget, etc. Powercat Financial is available for online or phone financial counseling sessions which may be requested via our website link at www.k-state.edu/powercatfinancial. Also check out YOU@KSU for additional personal well-being help.
Thrifty Giving is happening Thursday November 4th at 4:30 pm in Union 227. That Friday (11/5) Pop Up to PF is happening at our office in Union 302 (third floor). Come ask us your quick money questions and get a free pop.
Ana Sanko
Peer Counselor III
Powercat Financial
302 K-State Student Union, Third Floor
918 N. 17th Street
Manhattan, KS 66506-2800
785.532.2889
