Kansas State University

An internship is one of the most valuable assets in your post-graduation search for a job. These internships provide the necessary industry experience that employers are looking for when hiring new candidates. Recently, Universities had an even bigger push to encourage their students to start early with the search for internships, hosting events such as career fairs, tabling from companies and sending out application links through mass communication emails. 

Though some of these internships are paid, not all interns receive monetary compensation for their work. Some companies offer internships where the main form of compensation is purely through the experience through the duration of the internship. 

There are criteria that must be met by an unpaid internship to make them legal. So, when applying, make sure your employer meets these requirements. Here are some of the criteria an unpaid internship must meet in order to be legal: 

1. The internship’s training is educational in nature
2. The intern directly benefits from the unpaid work
3. The employer does not directly benefit from the intern’s work
4. The intern is a supplement to and not a replacement of paid employees
5. The internship does not guarantee employment with the employer
6. The intern consents to providing work without pay

*Source – https://www.honorsociety.org/articles/pros-and-cons-unpaid-internships* 

Though you are not being paid, an unpaid internship can still be an invaluable tool to assist with landing a job after college and growing your network.  

Meet Andrew, a Junior, studying Business at Kansas State University. Andrew is in the first semester of his junior year and already one of the biggest topics of discussions is which companies invited his peers for an initial interview from the career fair. Andrew had received a variety of interview requests from multiple companies, but only one where the internship would be based out of the location, he wanted… Kansas City, MO. While interviewing with this Kansas City company for an internship in their accounting department. The interviewer tells Andrew the internship is unpaid and consists of observation and training. Initially, Andrew is concerned about how he will support himself through the summer but also recognizes that experience from this company is sure to either land him a job within the company or be enough to look for post-grad employment elsewhere. 

A few weeks down the road, Andrew receives an offer from the Kansas City company for an unpaid internship during the upcoming summer. Andrew is ecstatic and more than prepared to take this offer, but there are some key things he should know prior to making this move.  

Since he will not be receiving monetary compensation throughout his time as an intern, it is imperative that he prepares months prior to the internship. The first method of preparation will be through creating a Spending Plan. This spending plan acts as a budget for the months he is in school leading up to the start of the internship in summer. As he continues the school year, he can track his expenses along with the money he receives from his part-time, on-campus job to create an excess number of resources to save for the following month.  

After a couple of months, Andrew was able to save an amount he deemed would be appropriate to live on for the duration of the internship. Having this plan in place and executing it successfully is what allowed Andrew to go into his summer internship worry free.  

Just like Andrew, you can visit Powercat Financial to have a Peer Financial Counselor guide you through the spending plan to ensure you are comfortable starting your internship! 

Upcoming Events:

Live Your Best Life – October 16^th, 12:00-1:30pm in the Union Courtyard. Come join us for a fun, interactive game of life where you can learn how to make important financial decisions in your life. We will have food and prizes for those who come!

Financial Well-Being Ambassador Meeting – November 6^th, 4:00-5:00pm in the Big 12 Room at the Union. Want to be apart of Powercat Financial and learn how you can help spread financial literacy around campus? Come join us at our monthly meeting to learn more!

Cristian Pena 

Peer Financial Counselor I 

Powercat Financial  

www.k-state.edu/powercatfinancial

Student loans are a common way for students to finance their higher education. Over half of students from public four-year institutions take out student loans. In fact, the average amount of student loans per student is $28,950. This is a significant amount that is often taken on without careful consideration or understanding of how they work. So, what are student loans, where do they come from, and how do they work?

First, let’s look at the basics of loans and how they work. Loans are contracts to borrow money from a lender and pay it back later plus a little extra. There are two parts of loans that you will need to pay back. The first is called the principle, this is the money you borrowed. For example, if you borrow $1,000 dollars, $1,000 is the principle of the loan. The second piece is called interest, interest is the fee you must pay to borrow the money. This ‘fee’ is determined by the interest rate of the loan. The higher the interest rate, the more expensive the loan will be. Interest rates are the percent of the total balance that will be added to the amount you have to pay back. For example, if you borrowed $1,000 with a 5% interest rate, 5% of the $1,000 will be added to your balance annually. A key term to know is compound interest. Essentially, compound interest is the interest that is added on top of interest. This makes the loan more expensive the longer you hold it without making payments.

So, what is a student loan? A student loan is money borrowed from a lender to pay for college. The money can be used for tuition, room and board, textbooks, supplies, and/or other fees. The student must pay back the loan after graduation. There are two main sources of student loans: the Federal government and private lenders. Federal student loans make up roughly 92% of all student debt while private loans make up the remaining 8% of student debt. Federal student loans are awarded through filling out the FAFSA (the Free Application for Federal Student Aid). The FAFSA, which must be filled out annually, assesses each student’s needs and awards student loans and grants accordingly. Private student loans must be applied for individually and are based on the individuals credit rating.

Since most student’s dealing with financial aid look to federal loans, let’s look at what federal student aid is. Federal student aid is a secure way to fund higher education. Many protections and safety nets have been put in place for students. For example, federal student loans are in deferment (the postponing of payments) until six months after graduation. This means that students do not have to make monthly payments on their loans while they are in school full time. There are several types of student aid that can be awarded by filling out the FAFSA.

1. Federal Grants: Grants are financial awards from the U.S. government to fund student’s education. Grants are awarded to students based on financial need and determined by the FAFSA form. If you receive a grant, accept it in full; you will never have to pay these back!
2. Subsidized Federal Loan: These are loans offered by the federal government that do not add interest to the balance while the loans are in deferment (this includes the six-month grace period after graduation). Instead, the government pays the interest while the student is in school.
3. Unsubsidized Federal Loan: These are loans taken from the federal government that add interest while you are in school. This means that the amount borrowed will increase with compounding interest while the borrower is in school.
4. Parent Plus Loan: These loans are taken by your parents through the government to cover college expenses. Often, these loans will be offered in a significantly higher amount than the other loans mentioned above. However, they tend to come with higher interest rates as well. These loans use your parent’s credit score, and you will pay them back through your parents. When applying for a parent plus loan you will need to make sure to check the “defer loan” box otherwise your parents will be required to start making payments six months after the loan was taken. If you put the loan into deferment, no payments will need to be made until six months after you graduate. Remember, these loans will affect your parents so make sure that you communicate clearly with them if you decide these loans are needed.

When taking federal student aid, there are three things to keep in mind. First, you don’t have to take out offered loans in full; you can key in the amount you want to take. Second, whatever amount you decide to take will be disbursed into two parts at the beginning of each semester. Because of this, you will need to remember to plan ahead for the spring semester and remember that the amount you will receive this semester is half of what you took for the year. Finally, you can always take out more at a later date if you decide you need more. Studentaid.gov is a very helpful website and can answer a lot of questions you might have. It is also where you can keep track of how much you owe in total student loans. You might also want to check out our website, it has a lot of information on student loans as well as how to navigate finances in general while in college (Powercat Student Loan Info).

In contrast to federal aid, private loans must be individually applied for. Eligibility for private loans is based off your personal credit score. The better your credit score is, the better loans you will be able to qualify for. It is important to note that private student loans often do not have the same protections for borrowers that federal student aid has. One good starting place to look for private student loans is FastChoice.

Once you have graduated college it will be time to start paying off your student loans. If you have federal student loans, you will be put in touch with your loan servicer (the company who you will be sending payments too). At this time, you will select a repayment plan provided through the federal government. If you would like to simulate what your student loan repayment might look like, use this link (Loan Simulator) to use the tool. If you have private student loans, you will begin to make monthly payments to whomever you borrowed from.

Understanding what student loans are and how they work is important to each student’s financial well-being. By knowing how loans work, where they come from, and the various types, students can make informed decisions that align with their personal financial goals. If you have any questions, don’t hesitate to schedule an appointment with Powercat Financial. We can help you understand student loans, determine how much financial aid you need, and create an education financial plan! All appointments are free and confidential; you can sign up at our website: Powercat Financial.

Upcoming Events:

Live Your Best Life – October 16^th, 12:00-1:30pm in the Union Courtyard. Come join us for a fun, interactive game of life where you can learn how to make important financial decisions in your life. We will have food and prizes for those who come!

Financial Well-being Ambassadors – October 9^th, 4:00-5:00pm at the Union in the Big 12 Room. Want to be part of Powercat Financial and learn about personal finance? Come join us at our monthly meeting to learn about credit!

Abram Mugler

Peer Counselor III

Powercat Financial

www.k-state.edu/powercatfinancial

Have you ever opened your mailbox just to find heaps of credit card offers? After a person’s eighteenth birthday, creditors love to send flyers urging them to apply for their first credit cards. Typically, they will offer a reward for signing up. These most often include rewards like cash back, points you can redeem, 0% intro APRs, gift cards, signup bonuses, etc. But as a newly eighteen-year-old, what should you do if you don’t know what any of that means? What does APR stand for? Does it affect my credit? How is my APR determined? How does paying my minimum payment benefit my credit? Should I be paying more than the minimum? If that describes you- good news! You are in the right place.

A lot of people fear the uncertainty, and therefore ignore that credit exists. While it is possible to finish college without ever opening a credit card, there are significant benefits to learning about credit, what it can do for you, how to build healthy credit and the habits that come along with it. Learning the vocabulary that is used surrounding credit and credits cards is essential to one’s financial success.

APR: What Does it Mean? How is it Determined? Why is it so Important?

APR stands for Annual Percentage Rate. According to Credit.org, it is “the interest rate being charged on a debt.” Basically, the total balance on your credit card will be multiplied by your APR, which is first divided by 12 months, at the end of each billing cycle, and you will be charged that amount in interest payments. If you’ve ever heard someone recommend paying off your credit card in full each month- this is why. The less you have on your statement, the less you will pay in interest. APRs are determined based on a number of factors. The most significant factor is the borrower’s credit score.

What is a Credit Score? Where Can I Check my Credit Score?

A credit score is a fluctuating number from 300-850, the higher the score, the better the credit. Your personalized score is determined by five factors: (1) payment history– did you pay your payment on time? (2) utilization– are you using your credit card? Too much? Too little? (3) length of history– how long has each line of credit been open?, (4) shopping for credit– how often do you shop for credit and open new accounts?, and finally, (5) mix of credit– do you have a diversified credit history- loans, credit cards, etc. Staying on top of these factors will ensure a healthy credit score- which means lower APRs in the future, and better offers from creditors, loan servicers, mortgages, etc. If there is an issue, such as not paying at least your minimum payment at the end of each billing cycle, your credit score can suffer. Visiting websites like will provide you with an estimation of your current credit score.

What is a minimum payment? What happens if I don’t (or can’t) pay it?

A minimum payment is “the minimum amount that a credit card company requires you to pay toward your debt each month.” If you forget to pay at least your minimum payment, you can incur late fees and your credit will be negatively affected. This has to do with the payment history aspect of your credit score. Although paying only the minimum payment prevents a late fee, it is typically recommended to pay more than just the minimum. The reason behind this is as follows: if you have no remaining balance on your statement, you will not pay interest. Even if you are unable to pay the entire payment, the lower the remaining balance, the lower interest you will be charged.

If you find yourself unsure of credit card terms, offers, or how credit works, please make an appointment with us at Powercat Financial! You can schedule an appointment through Navigate under Financial Services, or by clicking on this link: Powercat Financial Counseling Appointment.

If you come across a term related to credit cards that was not covered in this post, visit the website down below to search and learn more.

https://credit.org/financial-terms-glossary/

Upcoming PF Events:

Live Your Best Life- Live Your Best Life is a fun, interactive simulation of real-life post-graduation budgeting decisions hosted by Powercat Financial in partnership with Meritrust Credit Union on Oct. 16th from 12:00am-1:30pm in the K-State Union Courtyard. During the event students will be assigned a career and salary then visit stations to choose optimal housing, transportation, insurance, food plus more. See if you can balance your budget and meet your financial goals. Snacks will be provided, and prizes can be won!

Katelyn Silcox

Peer Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial

Credit scores are a complicated matter with many moving components. To put it simply, they show how good you are with money and act as a social credit score for how likely you are to pay someone back. When you want to borrow money for a personal loan, rent an apartment, or even get insurance, people check your credit score to decide if they can trust you to pay them back. A higher credit score means you’re more likely to get approved for loans or credit cards, and when you do, you’ll often get better deals with lower interest rates. This will save you tens of thousands of dollars over your lifetime. Additionally, a good credit score can help you achieve large financial milestones like buying a home or starting a business. Trying to improve your credit score is like opening doors to better financial opportunities and a more comfortable life.

To check your credit score, you can request a free credit report from each of the three major credit bureaus: Equifax, Experian, and TransUnion, once a year through AnnualCreditReport.com. Once you have your report, you can identify the different components affecting your score. Look for positive aspects like a history of on-time payments, low credit card balances, and a mix of different types of credit (like credit cards and student loans). On the flip side, watch out for negative factors like missed payments, high credit card balances compared to your credit limit, or any accounts in collections. Understanding these components will help you see what you are excelling in and what needs improvement in your credit profile. See previous blog posts for a detailed breakdown as to what makes up your credit!

Setting credit improvement goals is a crucial first step in the journey to better financial health. To begin, assess your current credit situation by obtaining a credit report and identifying areas that need improvement, such as late payments, high credit card balances, or accounts in collections. Once you’ve pinpointed the issues, establish specific and realistic credit improvement goals. For instance, you might aim to reduce credit card balances by a certain percentage or resolve any outstanding collections. Next, create a strategy to achieve these goals. This strategy may involve setting a budget to ensure on-time payments, negotiating with creditors, or consolidating high-interest debts. Consistency is key, so make a monthly action plan, monitor your progress regularly, and be prepared to adjust your strategy as needed. Develop a clear plan and stay committed to it. This will greatly increase your chances of successfully improving your credit score over time.

A general format for repairing your credit could follow a 4-step process. First, start out with analyzing your current situation and why you are in the situation that you are in. This can include different situations such as getting sent to collections for not paying a parking ticket, or more severely, having thousands of dollars in credit card debt. Regardless of the why behind your current situation, as long as you know how you got there, you can make a conscious effort to not end up in the same place again. Second, figure out what your goal is with your credit. This can include something simple like increasing your score by 50 points, or something more complex like getting approved for a mortgage with a rate lower than 6%. Following the SMART format is also a great compliment to this step as it will force you to capture all the details needed to succeed. Third, creating a series of small steps you can take to slowly reach your goal. Research shows that trying to make significant changes in a short period of time typically results in failure, whereas taking baby steps to change habits and your mindset will increase your likelihood of success. Fourth, once you have started your process and made changes to your lifestyle regarding credit, reevaluate what you have done. Figure out if the steps you are making are helping you reach your goal or if they are guiding you off-track. Looking back to realign yourself with your goal will help you stay on track and allow you to make changes for the next month to better achieve your goal. There are several free credit monitoring services or apps that can give you your credit on demand, such as Nerdwallet.

Repairing credit often comes with common challenges such as resisting overspending while managing existing debt, particularly the temptation to accumulate more debt. It can also be daunting to address past delinquencies and negotiate with creditors, leading to hesitation and anxiety. Additionally, patience is key because credit score improvements take time and might not be immediately noticeable. Monitoring progress and staying committed can be challenging when results are gradual. Understanding your rights under credit laws and navigating the dispute process may seem complex, adding another layer of difficulty. Overcoming these obstacles requires discipline, financial education, and perseverance to achieve sustained credit repair success.

In conclusion, sustaining good credit habits is not just about improving a three-digit number; it’s a pathway to realizing your long-term financial goals and securing your financial future. Along this journey, we’ve learned that discipline, patience, and consistent effort are the cornerstones of success. By adhering to budgets, making on-time payments, and managing debt responsibly, you not only enhance your creditworthiness but also build a solid foundation for your dreams—whether it’s buying a home, starting a business, or securing financial peace of mind. Remember, setbacks may occur, but each challenge is an opportunity to learn and grow. So, stay committed, stay informed, and let the lessons from your credit repair journey empower you to shape the prosperous future you deserve. Your financial goals are within reach, and your continued dedication will be the key to unlocking them!

If you need help on knowing where to start, evaluating what your current situation is, or creating an action plan to build your credit, schedule an appointment with us at Powercat Financial. We have appointments available from 8-5, M-F and limited night availability.

Upcoming Events:

Live Your Best Life – October 16^th, 12:00-1:30pm in the Union Courtyard. Come join us for a fun, interactive game of life where you can learn how to make important financial decisions in your life. We will have food and prizes for those who come!

Financial Well-being Ambassadors – October 9^th, 4:00-5:00pm at the Union in the Big 12 Room. Want to be part of Powercat Financial and learn about personal finance? Come join us at our monthly meeting to learn about credit!

Brenton Wilden 

Peer Counselor II

Powercat Financial 

www.k-state.edu/powercatfinancial

When it comes to college, budgeting is an essential component of success. For many students, it can be intimidating to plan out their finances for the upcoming school year. However, it’s important to understand that budgeting for college can be done and can help you save money and manage your finances.

Meet Emily, a college student entering her senior year at Kansas State University. As a student, Emily is constantly faced with expenses, from tuition and textbooks to living expenses and more. She knew that she needed to create a budget to make the most of her limited resources.

The first step Emily took was coming to Powercat Financial to receive help. In this case, Emily and a Peer Financial Counselor created a spending plan in Excel for the upcoming school year. They wrote down all of her expected expenses and income, including any financial aid or scholarships she was receiving. This helped her to identify what her total budget was for the year and what her goals should be.

Next, they helped Emily identify her spending priorities. They knew that tuition and textbooks were her highest priority – followed with rent, groceries, and other living expenses. However, they also understand that Emily has other expenses such as wanting to enjoy time with friends, enjoying game days, and exploring Manhattan during her final year.

Ultimately, after plugging in all the data, they made sure Emily understood her financial situation and how to track her spending effectively moving forward. They shared the Excel spending plan with her so she could adjust the spending plan on her own to accurately acknowledge her spending/budgeting goals for future months.

By the end of the school year, Emily could have saved money and use those extra funds to help pursue her next steps in life after graduation. Emily could use that extra money when moving to another city and having a down deposit for a new apartment or continuing to save up for future expenses.

For those of you entering college or currently in college, remember Emily. Budgeting for college can be done, and it can help you succeed. With some planning and dedication, you can make the most of your college experience and have a bright future ahead!

Upcoming Powercat Financial Events:

Financial Well-Being Ambassador Training: Cost of Attendance

Monday, September 18, 2023 – Time: 4 PM – 5 PM – Location: Union Room 206

Live Your Best Life

Monday, October 16, 2023 – Time: 11 AM – 1 PM – Location: Union Courtyard

If you can relate with Emily and her situation being in college and wanting help with your finances, please come see us at Powercat Financial! Here’s the link to easily schedule an appointment with us! Services | Powercat Financial Counseling | Kansas State University (k-state.edu)

Giselle Benitez

Peer Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial