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Is It Smart to Pay College Tuition With a Credit Card?

Dan Rafter — Tue, 29 May 2018 08:30:46 +0000

At first, the answer seems obvious: Using a credit card to pay your college tuition is a terrible idea. With the high rates that come with plastic, you could rack up thousands of dollars in interest by charging your tuition.

But, there's another way to look at it: If you can pay off your credit card bill in full each month, using a card to pay your tuition could generate significant cash back rewards, airline miles, or free hotel stays.

It all comes down to your discipline, the type of credit card, and what you can afford to charge. Here are a few things to consider before charging your tuition. (See also: The 5 Best Credit Cards for College Students)

College isn't cheap

The cost of college isn't shrinking any time soon. CollegeBoard reports that the average yearly tuition for a public, four-year in-state college stood at $9,970 for 2017–2018, up 3.1 percent from the previous year. Private colleges averaged $25,620 for the same school year, an increase of 3.2 percent. Neither of those figures include the average $10,800 cost for room and board.

If you're going to be charging tuition or room and board to a credit card, you should have the cash on hand to pay it off in a timely fashion — ideally, the first billing cycle. And that won't be a small amount. Otherwise, you put yourself at risk of falling deeply into credit card debt.

Very few people go this route

According to the 2017 edition of Sallie Mae's How America Pays for College report, just 3 percent of families used credit cards to help cover college tuition for their kids, while 4 percent of students used plastic to pay for some or all of their tuition. Parents charged an average $4,450 for tuition in 2017, while students charged an average $1,626.

It's evident that paying for college with plastic is not the popular route. Why do so few students or parents turn to their credit cards? Most probably don't have the cash they'd need to pay off these cards in full each month in order to avoid interest charges. Others might not have a high enough credit limit on their cards to charge any more than a few thousand dollars at a time. Students may not have enough of a credit history yet to even be approved for a credit card. (See also: 4 Important Ways College Students Should Use Credit Cards)

Don't chase rewards without a repayment plan

If you can afford to charge tuition and pay off your credit card bill each month, it might make sense to do so, especially if you have a credit card that provides cash back bonuses, rewards, or miles. Charging $10,000 in tuition, for example, could be a great way to earn fast cash or travel credit.

Other cards might provide bonuses if you spend a certain amount of money during a set number of months. For instance, if you spend $5,000 during a three-month period, you might get a $200 cash back bonus. Charging your tuition can easily get you to that spending threshold. (See also: 5 Smart Ways to Meet a Rewards Card Minimum Spending Requirement)

The key, again, is that you pay off your card's balance in full when the bill comes due. It's not unusual for credit cards to come with interest rates of 18 percent or higher. If you carry a balance, that interest rate will cause your debt to grow quickly, and no amount of cash back, bonuses, or miles is worth that financial pain.

Watch out for fees

There is another potential pitfall with credit cards depending on the school you attend. If your college or university allows you to charge tuition (some don't), many will charge an additional fee for credit card processing. You'll have to determine if the rewards, miles, or cash back bonuses you're after are enough to make up for the fee your university or college charges.

According to a 2016 survey from CreditCards.com, 85 percent of the country's largest colleges allow credit cards for tuition payments. The survey found that 57 percent of schools charge fees for credit card payments, with the average fee being 2.62 percent.

Say you charge $4,500 in tuition for your upcoming semester. If your school charged a fee of 2.62 percent, you'd pay about $118 extra for the privilege of using your card. If that $118 is higher than the cash back bonus or rewards points you'd generate from charging it, you're better off paying for your tuition in another way.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Financial Skills to Master Before You Graduate

Kentin Waits — Mon, 12 Feb 2018 09:00:06 +0000

With graduation only months away, you can finally see light at the end of the tunnel. After four (or more) long years of study, you're well-prepared to embrace adulthood, independence, and professional success.

But are you really? Before you don that cap and gown, make sure you know the ABCs of personal money management. It could be the most important course you'll ever take. Here are the financial skills to master before you graduate.

1. Basic budgeting

If you can't build and stick to a basic budget, you risk having your life divided into a series of stressful 30-day cycles. Bills may be late, savings an afterthought, and credit cards could become an absolute necessity. Avoid this bleak fate. Set up a practice budget using the envelope system or get acquainted with online money management tools like Mint. (See also: Build Your First Budget in 5 Easy Steps)

2. Living within your means

Consistently spending more than you make is the cornerstone of bad financial decision-making. You'll have no surplus money to invest. You'll rack up credit card debt (harming your credit scores in the process). And, you'll live in a constant state of stress. Create a realistic budget, stick to it, and don't pad your lifestyle with easy credit. (See also: How to Escape the Paycheck-to-Paycheck Cycle)

3. Paying your bills on time

Credit scores affect everything from interest and insurance rates to employment. And once your score is damaged, it can take years for it to recover. Protect your credit scores, avoid late fees and penalties, and keep the bill collectors away by paying your bills on time, every time. It's a fundamental part of being an adult. (See also: Here's What to Do if You Can't Pay Your Bills On Time)

4. Using credit responsibly

Ready for my best Dad impression? "Credit is a tool, not a toy." But Dad is right. Using credit responsibly means controlling impulses, only charging what you can pay off at the end of every month, and not confusing your credit limit with your budget. Seriously — credit abuse destroys the financial lives of countless families every year. Choose to be different. (See also: 12 Habits of Highly Responsible Credit Card Users)

5. Negotiating

The unsung hero of personal finance, negotiating is a skill that can save you thousands of dollars over your lifetime. Imagine paying full price for every car and every house you buy. Or worse, imagine not knowing how to respectfully push back on the first salary offer a potential employer makes. Launch into adulthood from a position of power; know how to negotiate with confidence.

6. Setting goals and saving for the future

Financial skills are a means to an end. Determine what kind of relationship you want to have with money, exactly what you want to achieve financially, and what level of discipline and attention it will take to turn your goals into your reality. Save with that plan in mind — and save without interruption. In short, apply the same level of dogged determination to your financial life as you applied to your education. The rewards will be just as great. (See also: 5 Money Moves to Make the Moment You Graduate)

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Money Moves Every New College Student Should Make

Emily Guy Birken — Tue, 29 Aug 2017 09:00:05 +0000

College is about more than just getting a degree. For many new college students, starting this phase of education is also a time to learn any number of important life skills, from proper laundry care to time management.

However, many college students often overlook one important life skill: money management. As a college student, you might assume that money management isn't important, since you've got so little money to manage.

Unfortunately, neglecting your money skills in college could have lasting negative repercussions throughout your adult life. Rather than assuming you'll sort out the money stuff "later," get off on the right financial foot by following these money moves when you start your college career.

1. Open a student checking account

Your brand-new university ID makes you eligible for student checking accounts. This gives you a good home for your money while you're in school, and helps you develop good banking habits.

Student checking accounts often have low or no minimum opening deposits, and they also generally do not require you to carry a minimum balance each month. In addition, some student accounts offer perks like a limited number of free out-of-network ATM transactions per month, free checks, and some overdraft forgiveness.

2. Start automating your bills

Once you have a checking account in place, you can take advantage of your bank's online bill paying services to set up automatic payments of your regular expenses. Automatic bill payment allows you to keep your focus on your studies, where it belongs.

Of course, the caveat is that you need to periodically make sure your account has enough money to cover your automatically paid bills. One good way to do this is to set up a weekly reminder to check your finances. This will help you establish the habit of keeping an eye on your finances even as they are taken care of automatically.

3. Create a spending plan for your financial aid

Receiving a big chunk of money from your university's financial aid office can be pretty exciting — whether you're receiving loans you'll have to pay back, or grants that you won't. It's tempting to live it up when you receive your financial aid, but that's a good way to run out of money before the semester is over.

Instead, take the time to create a spending plan for your financial aid disbursement before the money hits your bank account. Determine how much of your financial aid will need to go toward tuition, textbooks, lab fees, and living expenses. Having such a plan in place will help you keep your spending in check when you feel the urge to splurge some of your aid money.

5. Keep track of your student loans

Many college students — including yours truly! — make the mistake of paying no attention to their student loans until they have graduated. In general, the amount of money you are borrowing can seem unreal, so it's very easy to just ignore the problem until you reach your student loan exit interview just before graduation.

However, knowing early how much you owe and how much it will cost you to pay it off is both good for your financial health and can help you remain motivated in your studies. It's much easier to get up for that 8 a.m. chemistry lab when you understand just how much you're paying for the privilege of going to it.

If you have federal student loans, you can keep track of how much you have borrowed and what your repayment options will be through the National Student Loan Data System. Just select "Financial Aid Review," log in, and you can view all of your federal student loans in one place. If you have any private student loans, you will need to contact your lender for information regarding your loans.

6. Build up an emergency fund

When I was in college, a classmate's financial aid package was re-evaluated at the end of her first year. The school's financial aid office decided that she could count on an additional $1,500 from her family for her second year, even though she knew that it would be impossible to ask for that additional money. By working some serious overtime that summer and living off tuna fish and ramen, my classmate was able to scrape together the additional money. But this situation could have potentially meant the difference between her returning to school and her dropping out.

An emergency fund can make this kind of unanticipated financial change much less stressful than it was for my classmate, especially when you are already living on a shoestring.

Building an emergency fund might feel impossible when you're in college, but don't forget that small amounts can add up to something really helpful. Start with an automatic transfer of $5 —$10 per week into a savings account. Add in whatever excess money you come across — including the cash you get for selling back textbooks or some of the birthday money Nana sends every year.

Though your fund will grow slowly, working steadily on it will ensure that a financial aid (or other emergency) does not jeopardize your education.

7. Learn from your financial fumbles

Every time you make a financial decision as a college student, you have the opportunity to learn from your choices. The trick to learning from financial mistakes rather than repeating them, is to look back on the choices you made with curiosity and compassion for yourself. You're a college student, after all, and learning is the entire job description.

Take each moment of money regret as an opportunity to figure out where your financial weaknesses are. You'll finish college with a much better understand of yourself and your money temptations, as well as potential solutions for avoiding those temptations.

Learn about finances before you enter the real world

It may feel like adding financial responsibility on top of your educational requirements will be too much to handle, but college is actually a great time to work on your money management skills. Taking good care of your finances as you are engaging in higher learning sets you up for financial success after graduation.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Reasons Building Credit in College Helps You Win at Life

Dan Rafter — Mon, 28 Aug 2017 08:30:14 +0000

As a college student, your credit score probably isn't a priority. You're too busy worrying about exams, homework, and scraping together enough money for a pizza on Friday night. But building good credit when you're in college is important. It can make it easier to rent an apartment, apply for a good credit card, and buy a car once you graduate. (See also: The 5 Best Credit Cards for College Students)

Many college students graduate with no credit score at all. That's because they've never used a credit card or paid off an installment loan, such as for a car or mortgage. They haven't even started paying off their student loans yet.

Graduating with no credit makes life after college more challenging. Here are five big reasons why you should start building good credit when you're still in school.

1. Renting an apartment

In a recent survey by national credit bureau TransUnion, 48 percent of apartment landlords said that the results of a credit check rank among the top three factors they consider when deciding to lease an apartment to a potential renter.

If your credit is bad, or if you don't have any credit at all, you'll struggle to rent an apartment on your own. You might have to rely on a co-signer, usually a parent, to sign the lease with you. If you can't find a co-signer, and you haven't built any credit while in college, finding your dream apartment, or even just a starter apartment, can get difficult.

2. Buying a car

Unless you buy a car with cash, you'll probably have to apply for an auto loan to finance the purchase of a new vehicle. Auto lenders study your credit, too. If they find that you don't have any history behind you, they'll be far less likely to approve you for the loan you need to buy that new car.

Again, you might have to rely on finding a co-signer. This can be even more difficult for an auto loan. Not only are co-signers on an auto loan responsible for any payments you don't make, the loan will also be counted as their debt. This can make it more difficult for your co-signer to apply for new loans of their own.

Overall, it's much easier to walk into an auto dealership knowing that you already have a credit history of your own.

3. Applying for student loans

You'll want a good credit history if you'll need to apply for private loans to help finance the cost of graduate or professional school. It's easier to get federal PLUS loans for graduate and professional schools with a lower credit score. However, you are limited in how much you can borrow through these federal sources.

If you must borrow more, you might have to rely on private loans. And private lenders will take a close look at your credit. If you don't have a credit history, qualifying for one of these loans will be more challenging.

4. Being approved for credit cards

There are plenty of credit cards out there with low interest rates and valuable rewards programs. They can give you cash back on purchases or let you earn travel rewards when you use your card.

Without a credit history, and the credit score that comes with one, you'll struggle to qualify for one of these good cards. You might instead have to settle for a basic card with a higher interest rate.

5. Getting car insurance

Not having a credit history can even make qualifying for car insurance more of a challenge. If you do want to drive, and you can no longer stay on your parents' auto insurance policy, you'll have to apply for car insurance on your own. And many insurance companies today look at their own version of a credit score when determining who qualifies for insurance and at what rates.

The lower your credit-based insurance score, the less likely you'll qualify for auto insurance — and the more likely you'll have to pay a higher premium if you do qualify.

Building a credit history

The best way to build a credit history while in college is to apply for a student credit card. These cards often come with lower limits. Some might even be secured cards, meaning that you have to make a deposit into a bank account associated with the card. This deposit makes up your credit limit. (See also: How to Use Credit Cards to Improve Your Credit Score)

Once you get a card, use it, but use it wisely. Only buy what you can afford to pay off in full each month. Then pay off your entire balance by every due date. As you generate a record of on-time credit card payments, you'll steadily build a credit history. At the same time, you'll start building a solid credit score, too.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Here's What You Need to Know Before Buying a College Meal Plan

Damian Davila — Tue, 15 Aug 2017 08:30:10 +0000

Before heading off to college, you need to budget for its many expenses. On top of tuition, course materials, and room and board, many people also forget about one important line item: food! (See also: 9 College Expenses You Aren't Saving For)

The unfortunate news is you often don't have a lot of options for combating the high cost of college campus meals. But at least you can go into the situation informed, so you can make appropriate budget allowances. Here are six things every student should know about college meal plans:

1. Residential students are often required to buy one

First of all, you may think that you have the option of whether or not to buy a meal plan. Turns out that if you're a student living in university quarters, your school will likely require you to buy one. Make sure to read the fine print, because freshmen can be required to pay up for a "platinum" plan. For example, for the 2017-2018 school year, the Stevens Institute of Technology in New Jersey required its freshmen living on campus to purchase an unlimited $3,200 per semester meal plan.

Even students living in dormitories with kitchens can be required a minimum buy-in for food costs, according to The New York Times.

2. "Lighter" meal plans are often only available to upperclassmen

If you find that a top-tier meal plan is excessive and you want to downgrade, you may have to wait a few semesters (or years). It's not uncommon that lighter versions, such as a 10-meal per week plan, are only available to students with a certain number of semesters under their belts. Freshmen may be required to buy plans with 15 to 19 meals per week.

3. Rollovers may not be allowed

Some schools allow you to apply unused meals from one week to the next, and others don't. To help you make the most out of your meal plan, check the applicable rules regarding rollovers. Tight rules may make skipping meals at participating cafeterias and vendors a big financial waste. You don't want to skip a meal you've paid for, only to have to pay for off-plan food later when you're hungry.

4. Cost per "swipe" can be higher

Some college dining plans provide cards with a preloaded number of swipes that students can use at participating on-campus eateries. Sound good? Well, the problem is, that convenience comes at a cost: Cardholders often end up paying more "per swipe" than somebody paying for the same meal with cash.

If you're looking for variety, going the DIY route is more budget-friendly. Instead of swiping for overpriced coffee at the on-campus coffee shop, invest in a small coffee pot for your dorm room. By buying your own ground coffee and milk, you should be able to crank out two Americanos with milk per day for a total cost of about 60 cents. (See also: 8 Money-Saving Hacks Every College Student Should Try)

5. Meal plan expenses aren't eligible for tax credits

Many college students are eligible for two great tax credits:

Lifetime Learning Credit: This credit allows you to deduct up to 20 percent of your first $10,000 in qualified education expenses, up to $2,000 per taxpayer.
American Opportunity Credit: This credit enables you to cover up to $2,500 of undergraduate college costs.

Unlike expenses for course-related supplies or tuition, meal plan fees aren't eligible toward either one of these tax credits. Even when required as a condition for enrollment or attendance, meal plan fees aren't considered qualified education expenses. This is especially frustrating, because up to 40 percent of the American Opportunity Credit is refundable, even if you don't owe any federal taxes. (See also: Don't Skip These 8 Tax Breaks for Students)

6. Higher costs contribute to higher student loans

According to Student Loan Hero, the average 2016 graduate took home $37,172 in student loan debt, up 6 percent from 2015. With their average student loan burden going up, students have to look for ways to drive down costs. And increasingly expensive college meal plans aren't helping.

According to U.S. Department of Education data, the average college charged about $4,300 for a 19-meal per week contract for the 2015 academic year, or $7.50 per meal. In the same year, the Bureau of Labor Statistics found the average American spent just $4,000 eating at home for a 12-month period (that's just $4 a meal!). That means the average college student with a meal plan pays 87.5 percent more per meal.

It turns out that cutting back on that pricey college meal plan doesn't just help you ward off the extra pounds, but it also helps keep the student debt monster in check.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Earn $1,000 a Month or More as an Online Tutor

Kat Tretina — Mon, 19 Jun 2017 08:00:12 +0000

If you're on a tight budget, want to accelerate debt repayment, or need extra money to save for an emergency fund, a side gig can be a smart way to boost your income.

One of the most lucrative side gigs is tutoring. Whether you work well with children or prefer helping college students, you can earn up to $1,000 a month tutoring just a few hours a week. And there are many sites out there that eliminate the work of finding clients and marketing yourself; they connect you directly with customers and handle the administrative work.

Below are five online tutoring companies that allow you to earn money on your own schedule.

1. Chegg

Chegg connects students with tutors in a range of subjects, including science and mathematics. Unlike some tutoring sites, Chegg works with students from middle school through college. Rates start at $20 an hour, and top tutors can make as much as $1,000 a month.

You can tutor whenever you want, depending on your availability; Chegg offers tutoring 24/7. Chegg pays weekly, so it's great for someone who needs extra money quickly. And you can earn more by tutoring high-demand subjects, such as calculus or computer science.

To apply, you need to create an account with your email or Facebook login. Chegg will prompt you to enter your information, areas of expertise, and qualifications. You'll receive a decision from the company within a few days.

2. StudyPool

StudyPool offers tutoring sessions in over 30 subjects. Online tutors can set their own deadlines and prices. According to the company, some of the top-earning tutors can make salaries well into the six-figures.

Unlike other platforms, StudyPool allows students to pose questions to tutors, and a price is set for each question. For example, a student could post a question about a physics problem and offer $7 for help. You can choose as many or as few questions as you'd like to answer.

3. Tutor.com

Tutor.com connects you with students of all ages for tutoring sessions in a range of subjects, including accounting, economics, and college essay writing. According to Glassdoor, Tutor.com contractors report making approximately $11 an hour, but some subjects pay even more.

To be eligible, you must be a citizen of either the United States or Canada. Tutor.com can be a great source of income for college and graduate school students. While other companies require you to have a degree to accept clients, Tutor.com just asks that you be at least a college sophomore.

Sessions are available day and night, seven days a week, so you can work on your own schedule. However, unlike some other sites, Tutor.com does require you to commit to at least five hours a week.

4. VIPKid

VIPKid specializes in connecting Chinese students with English language instructors. The children you work with are between the ages of four and 12. All sessions are one-on-one with an individual child via webcam.

With VIPKid, there's no need to spend hours planning classes and materials; VIPKid provides class materials for you. You just need to review the curriculum before each class. The pay rate can be as high as $22 an hour, with incentive bonuses for student performance and number of classes you complete.

To be eligible to become a VIPKid tutor, you must have at least a bachelor's degree. You can submit your resume and application online. If the company selects you to proceed, you will undergo an interview, a class demonstration, and a mock session. If you pass these steps, VIPKid will have you sign a six-month contract and you can begin teaching.

5. Wyzant

Wyzant allows tutors to set their own rates, which can give you more flexibility and earning potential. In fact, some Wyzant tutors turn it into a full-time job and earn over $50,000 a year.

Wyzant caters to a broad range of customers, from high school students who need help preparing for the SATs to college students who need to be coached in physics or engineering. You can set your own hours and take on as many or as few clients as you like. While you can tutor online with Wyzant, you can also offer in-person sessions for an additional fee for local customers.

To become a Wyzant tutor, you must complete a profile and take a subject proficiency exam in your desired area of study. You can only tutor in subjects if you pass the exam.

Bottom line

Working as an online tutor can be a lucrative side gig that accommodates the other demands on your schedule. You can make extra money using just a few spare hours to accelerate debt repayment or build up your savings.

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This article is from Kat Tretina of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways Students Can Travel Abroad for Less

Amanda Gokee — Thu, 13 Apr 2017 08:30:15 +0000

The years you spend in college are arguably the only time you'll drink quite so much coffee, live with all of your best friends, and learn so much in such a short, intense period. They're also unique for most people in that you're given the flexibility to spend time traveling during long breaks from class or during a year spent studying abroad.

Unfortunately, it's not a time when you're likely to be earning a lot of income that you can throw toward travel. But there are several ways students can save money and travel for less.

1. Enjoy cheaper flights

Websites such as Student Universe and STA Travel offer special rates on flights for students and youth. Although booking through a third-party website always comes with caveats (changes and cancellations may be more difficult, for example, than if you book directly with the airline), it's worth checking these websites for deals.

StudentUniverse specializes in discounted fares for students at degree-granting universities, though it does also offer some flights for anyone between the ages of 18 and 25. It has been around since 2000 and works with 75 airlines to negotiate cheaper rates, passing on the discounts to customers.

STA offers discounted tickets for students, teachers, and anyone under 26, and has been in business since 1979. Student tickets are marked with a little blue circle with an "S" inside for "student." Youth tickets are marked in green with a "Y." (See also: 8 Money Moves Students Should Make for a Gap Year)

2. Always travel with your student ID

Be sure to bring along your student ID wherever you travel, since it can represent serious savings while you're away from home. You may already know that at some museums and historical sites, a student ID will get you reduced or even free admission. But some people are surprised to find that even movie theaters will sometimes also give a discounted price for showing a student ID.

If you have some shopping to do before you leave, or you need to pick up some new items during your trip, Madewell offers a 15 percent discount on in-store purchases for students and teachers. (See also: Best Credit Cards for Students)

3. Take advantage of other student cards

Beyond a student ID, there are other student discount cards that can help you to save money while traveling. The ISIC (International Student Identity Card) costs $25, but may be worth it, since it gives you access to more than 150,000 discounts on concerts, accommodations, museums, and restaurants.

The ISIC card has the added benefit of being an internationally recognized means of proving your status as a student, which is valuable in places where a foreign student ID may not be accepted. Plan to order your card at least four weeks before your departure so that it will have time to arrive in the mail. You may even find yourself using it for discounts while you're at home, too.

4. Incorporate travel with your studies

Travel can be a unique learning experience, so why not get credit for your time abroad? Some universities offer amazing opportunities to incorporate travel into your course of studies. Check with your department about what kinds of internships or summer experiences it may accept for credit.

Another option is to find classes that include travel. For instance, at my university, there were certain (highly coveted) classes that delved deeply into Italian art history. At the end of the term, the class took a two-week trip to see the artwork that they had been learning about all semester.

Depending on your university and the specific department, these trips may even receive funding from the university to defray the cost of the trip for students.

5. Leverage study-abroad programs

Studying abroad is another way to seamlessly incorporate extra traveling into your student life. Not only will you get to experience life in whatever country you choose, you'll also have the opportunity to travel to areas nearby. Having a home base abroad for a semester can be an excellent way to get to know a different region of the world and learn about a new culture and language. (See also: Budgeting for Study Abroad)

I studied abroad in the south of France, and during that time, I was able to travel extensively throughout Europe, visiting Prague, London, Budapest, and Istanbul, to name just a few destinations. While these trips would have been extremely expensive from the United States, since I was already in France, I could take advantage of cheap airfare on discount airlines like RyanAir and EasyJet. Plus, travel time was often only a few hours, so I could see these new cities over a long weekend.

I reduced the cost of these trips further by staying with friends or acquaintances who were studying abroad in other European cities. That not only saved me the price of a hotel, it also gave me more of an insider's perspective on these destinations. When I didn't have a friend living in the place I was visiting, I'd use Couchsurfing to find locals who would host me for free. (See also: 7 Ways to Make Money During a Semester Abroad)

6. Apply for grants

It's worthwhile to spend some time researching what grants are available through your school. Some top universities have travel funds for undergraduates to use for internships, research projects, or other programs abroad. You can apply for a grant to cover some or all of the costs of your travel and housing while you're away.

Some grants are offered directly through schools, but others are open to students across the country. Spend time preparing your proposal, since these grants can be competitive.

7. Travel offseason for better rates

Prices can vary a lot depending on whether you travel in peak season or not. Take advantage of the flexibility of being a student to book cheap flights at less popular times of the year. Being flexible with your travel dates can pay off, too. Use websites such as Skyscanner that allow you to filter your search by the cheapest date to fly. If you haven't decided on a destination yet, you can also search flexible departure and arrival airports. (See also: ITA Matrix Is the Best Kept Secret for Travelers)

When I was in college, I decided to take a semester off school to travel, and ended up being able to take advantage of an opportunity to travel to Chennai, India from Paris for just $200 — half the usual price. Once in India, I traveled for a month on only $200, so my cheap ticket was the equivalent of an extra month of travel.

While you might think that traveling is outside of a meager student budget, hopefully this list will show you some of the unique advantages that students have for traveling cheaply.

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This article is from Amanda Gokee of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 College Expenses You Aren't Saving For

Mikey Rox — Tue, 11 Apr 2017 08:00:16 +0000

Worried that tuition and room and board will bleed you dry when your kid goes off to college? Pfft. Wait till you get a load of all the expenses you didn't account for! You'll want to sit down for this.

1. College prep items

You'll want to send your kid off to college well prepared — with things. Things like study and work supplies, dorm room necessities, snack foods, toiletries, a new computer, maybe a new phone. It's amazing how easily items pile up when you're shopping for college.

2. Traveling home and back

No loving parent can go too long without seeing their kid — especially their freshman year in college. So, you'll need to account for travel costs to get your child back and forth to your home if they attend a school that requires more than a few hours' travel.

"Create a travel budget by researching typical costs for airfare, train, or bus, whichever mode of transportation is available to you, and estimate the number of times your child will head home throughout the year," suggests money-saving expert Andrea Woroch. "If they have a car and are driving [a long] distance away from home, propose that they carpool to save on gas and tolls if applicable."

They can also use a site like Zimride, which will connect them with other college students looking to share a ride.

3. Local transportation costs

If your child has a car on campus, you're looking at the cost of a parking pass plus insurance and gas. If they don't have a car, you'll need to consider a new bike and investigate the cost of public transportation passes. These costs can add up, as well. College students don't tend to be holed up in their tiny dorm rooms while not in class.

4. Food outside the meal plan

College meal plans are expensive enough by themselves, but don't count on those being your child's only source of food. Many campus dining halls close earlier than you probably think, and late night study sessions require energy. Plan on having to send them some extra dollars for groceries, snacks, and late-night diner runs.

5. Greek life

I was interested in joining a fraternity when I went to college. It signified the quintessential coming-of-age experience to me, and I liked the idea of having "brothers," as I wasn't close with my own growing up.

Nice sentiment, but it got expensive real quick.

My dues were about $400 per semester, I wanted to buy new clothes every time we had a formal or theme party, and if something went wrong in the house — like the one time a drunk alumni brother smashed up our soda machine — we had to collectively cover the cost. By the end of four years, I had spent thousands of dollars to be part of this exclusive club — which, in hindsight, was worth every penny considering the memories I made. So, I guess what I'm saying here is … grab your checkbook.

6. Sports and extracurriculars

If you're the parent of a child whose athletic skills have earned them a college scholarship, congrats; consider yourself lucky. On the other hand, if your child is perfectly average but still wants to play sports or join extracurriculars, you'll need to cough up the cash.

"Sometimes participating in extracurricular activities on campus can cost extra money," says Johan Zhang, co-founder of CollegeVine. "Whether it's paying for club dues, schoolwide participation fees, or even apparel, at many colleges there exists a hidden cost to joining and being an active member in extracurricular activities.."

Be sure to consider this and save up in advance.

7. Your trips to see your child

Bringing your kid home is going to cost you, and so is traveling to visit your child. You may also want to attend things like orientation weekend, parents' weekend, and other events hosted by the college. You'll need to factor in transportation, lodging, and food, so budget wisely.

8. Off-campus living

Eventually your kid will outgrow the dorm and want to live off-campus. This usually happens around junior year, but sometimes you can hold it off until senior year. With that comes the expense of monthly rent, renter's insurance, furniture, utility bills, and a security deposit that you're never going to see again. Make amends with that right now; it's already spent.

9. The extended plan

Listen, I'm rooting for you to get your kid in and out of college in four years, but, well... the odds aren't in your favor.

"At most public universities, over 80 percent of students will take more than four years to graduate due to overcrowded or unavailable classes," say Adrian Ridner, CEO and co-founder of Study.com. "That means if you are planning on four years of college expenses, you could be under budgeting by 25 percent to 50 percent. Taking low cost college courses online can be a great way to stay on track and graduate on time. Another factor that can extend your child's time in school is lack of college readiness. This may mean completing remedial courses that do not count toward graduation."

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Things Financial Aid Might Not Cover

Andrea Cannon — Tue, 24 Jan 2017 10:30:36 +0000

Most students and parents realize that it's crucial to apply for financial aid, regardless of what your financial status may be. However, many families don't realize how expensive college can be, even if you receive a great financial aid package. It's important to recognize what items financial aid may not cover so that you can be better prepared for the school year ahead.

What Is Covered

Every student's financial aid package is different, so there are no exact expectations on how much you will receive and what will be covered. The package is based on the full cost of college, which includes tuition and fees, room and board, and sometimes, things like books and school supplies. Financial aid may also cover a summer session, but again, it all depends on how much is included in your particular package.

If you live at home or off-campus, your package may include an allowance for things like transportation, housing, and food. If you live on campus, the dorm room and required meal plans may be covered.

What Isn't Covered

Students should be prepared for unexpected charges, which can quickly become overwhelming. Some of the most common college costs not covered by financial aid include:

1. Transportation

Some schools offer aid for transportation, but it's rare and something you should budget for. You'll need to find money for gas or public transportation. There may also be parking fees, campus shuttle fees, and transportation costs to travel back home during the summer and winter breaks.

2. School Supplies

Books may or may not be covered by a financial aid package, but you will still need to find money for pens, pencils, notebooks, and any other school supplies you may need for the semester. You may also be charged extra for art supply fees or other course necessities. You may also need to purchase things like a new laptop or printer for your dorm room.

3. Dorm Supplies

If you'll be living on campus, you'll need to buy items for your dorm. This can include everything from a mini fridge and television to new sheets and beanbag chairs.

4. Lab Fees

There are frequently lab fees, equipment charges, and other fees associated with certain courses.

5. Activity Fees

If you're planning on participating in sports, clubs, sororities or fraternities, or other on-campus activities, there will be additional fees.

6. The College Experience

Part of the fun of college is going out and meeting new friends, which will result in costs for eating out, going shopping, going to concerts or sporting events, and paying for other forms of entertainment.

How to Fill in the Gap

According to Damian Rothermel, a CFP who specializes in college funding, it's possible to negotiate your financial aid package. He says that once you receive your financial aid package, you can contact the school to appeal for more money.

For instance, if the Expected Family Contribution is too high, you can appeal the offer. You can also provide documentation to support your request for increased funding.

If a student needs more funding for the school year, then there are a number of options available.

Grants and scholarships. There is no limit on how many scholarships you can apply for, so it's best to get into the routine of searching for and applying for scholarships whenever possible.
Work-study jobs. Students can earn money through work-study jobs either on or off campus.
Part-time jobs. There are endless part-time jobs available to students, which can help them earn the extra money needed for items that aren't covered by financial aid.
Payment plans. The school may have payment plans available, allowing you to spread the remaining costs you owe throughout a semester.
Student loans. Student loans should be your last resort, as the last thing a student wants after graduation is to be saddled with debt. Your best bet is to first apply for a federal loan, which offers flexible payments if you don't find employment after college. There are also private or alternative loans available to students. Many banks also offer special student loan rates that you may not have to begin paying off until graduation.

If you still have questions about how to fill in the gap, the school's financial aid office is available to help however they can. You may want to call and speak with them about how you can receive more funding. They may be able to help you find scholarships, part-time work, and good private student loans.

This article is from Andrea Cannon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways to Make Money During a Semester Abroad

Emily Guy Birken — Wed, 28 Dec 2016 10:30:23 +0000

Studying abroad offers college students the chance to explore the world, learn more about different cultures, and meet people from a variety of backgrounds. But studying abroad can be expensive. The average cost for a semester abroad was $17,785 during the 2012–2013 school year, and costs have no doubt increased since then.

So how can a college student on a budget afford to study abroad and enjoy all of the food, travel, and experiences available to them?

Thankfully, there are plenty of working opportunities available to American students studying abroad.

1. Teaching English

American students studying in a country where English is not the official language have a built-in job opportunity. There is demand for native speaking English teachers all over the world, and the average college student is in a great position to take a part-time job teaching English as a foreign language. You can pursue this informally by chatting with your local classmates or professors at the university to find one-on-one students, or you can pursue more traditional teaching positions through your study abroad program or your university.

This option is especially beneficial to any students who hope to have a career in education. My experience volunteering at a French primary school when I studied abroad was a big factor in my favor when I went to graduate school for a Master's degree in education.

2. Translation Work

If you are relatively fluent in your host country's official language, working as a translator can be a great way to make money and practice your foreign language skills. Typically, translators will translate into their native tongue, which means you can offer successful translation services even if you are not completely fluent in your adopted language.

For many students, simply posting some fliers around campus offering your translation services can net you plenty of clients.

3. On-Campus Jobs

Just like American universities, many international schools offer work-study jobs for students, including those who are visiting from other countries. Stop by the work-study office at your university, or ask some of your local classmates if they know of opportunities for on-campus jobs.

4. Guiding Tours

No matter where you are studying, it's likely that it is a destination for English-speaking tourists. Contact local tourism boards to find out if there is a need for English-speaking tour guides. This will give you an excellent way to learn the intricacies of your adopted home while earning a little cash.

You can also rely on your other expertise to land a tour guide job. For instance, an art history major might find a job as a docent in a museum, while a future architect might be able to get a job leading groups on tours of architecturally significant buildings.

5. Bartending or Working in a Coffee Shop

For students who wish to completely immerse themselves in their new home, working as a bartender or a barista in a cafe can be an excellent way to earn money while also meeting a variety of people and practicing your language or cultural skills.

To land a serving job, stroll through the popular areas of town and chat with managers of bars, restaurants, and coffee shops. Bring your resume and evidence that your visa allows you to work legally.

6. Work at a Tourist Hostel

Hostels are an inexpensive place for tourists to stay, and they can be an excellent workplace for a visiting student. Like hotels, hostels are open round-the-clock, and so they need workers for every shift. If you are fluent in a common language (including English!), the hostel's management might need you to work at the front desk. Hostels have guests from all over the world, and a front desk attendant who can speak multiple languages is a boon.

In addition to front desk work, you might also take a job in housekeeping or the kitchen. While the work may not be glamorous, it will offer you an opportunity to earn money and learn more about your adopted country.

7. Write for Travel Sites

You're probably already keeping a journal or diary of your time abroad — why not get paid for it? There are a number of travel sites and other publications that are always looking for well-written pieces on travel destinations. And don't assume that your writing will only find a home in a travel-specific website. There are often regional publications or other sites that would welcome your work.

In addition, you could also start your own blog. No one is claiming that blogging is a quick way to make big bucks, but a student living abroad has plenty of stories to write about, and it's easy to place ads on your blog. Blogspot, WordPress, and Tumblr are all places you can easily start a blog that you can monetize. (See also: 5 Easy Ways to Make Extra Money Blogging)

Considerations for Student Workers Studying Abroad

It's not enough to just land your job while you're studying. You also need to be aware of the financial and logistical concerns of your work.

In particular, make sure you have a visa that will allow you to work, even if you are working for cash. Also, remember that the currency exchange rate can affect just how far your money will go, especially if you are earning American money (as a blogger or freelancer might). Make sure you know how the conversion rate will affect your spending power, and know the costs of exchanging money when you withdraw money locally from your American bank.

Finally, there is some good news for any student working for a foreign employer: You will owe no U.S. taxes on anything you earn under $101,300 as of 2016. You still have to pay local taxes on your wages, but Uncle Sam will let you keep all that is left.

Working and Studying Abroad

In general, the most valuable experiences you will have during your time abroad will happen outside of the classroom. Finding a way to earn money while you study is not only a savvy financial move, but it will also add depth and richness to your time in another country.

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This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

CSS Is One Source of College Financial Aid You Can't Afford to Overlook

Ashley Eneriz — Fri, 30 Sep 2016 10:30:12 +0000

When it comes to applying for financial aid for college, most families know about the Free Application for Federal Student Aid (FAFSA). It is important for all college-bound individuals to apply for FAFSA, but there is also another important financial aid program to apply for alongside the FAFSA — the College Scholarship Service Profile, a.k.a the CSS PROFILE.

The CSS PROFILE application is created by the College Board, the same people who create the SAT, and used by over 300 colleges and universities nationwide. Where FAFSA is an application for federal aid, PROFILE is for nonfederal financial aid, usually money that the school has control over doling out. (See also: What to Do if You Didn't Save for Your Child's College)

When to Apply to CSS?

Individuals can apply for CSS as early as October 1st. The College Board encourages applicants to fill out their PROFILE no later than two weeks before their school's priority filing period.

Does the CSS Cost Money?

Yes, the CSS PROFILE application costs $25 for the initial application, and $16 for each additional report. However, there is a fee waiver available for low-income students, as well as individuals who have received a fee waiver for the SAT. Typically families who make less than $40,000 a year or individuals under 24 years of age who are orphans and wards of the court will qualify for a fee waiver. (See also: 8 Ways College Students Can Save Money Before Class Starts)

Should You Apply for the CSS or FAFSA?

It is very important to note that the CSS does not replace the FAFSA. Instead, it is an additional application required for some colleges. You should apply for both financial aid programs if your school is one of the 300 listed by College Board. If your school is not on the list, then you will not have to fill out the CSS. The list is made up of mostly private schools, and the only state college on the list is Colorado State University.

What Are the Differences Between CSS and FAFSA?

The two applications have quite a few differences that families should be aware of. First off, the CSS calculates family assets and income a little differently than the FAFSA does. This can potentially hurt applicants, causing them to receive less aid.

For example, the FAFSA considers gifts made to the parents, including monetary gifts grandparents give to parents for the use of college, as assets. This allows the student to remain eligible for aid. However, CSS considers the same type of gift as income, which would reflect in the aid package.

On the plus side, CSS does collect a more in-depth look at your family's finances. For example, the FAFSA does not take into account if you are paying medical expenses or tuition for younger children's schooling. CSS looks at a wide range of circumstances in order to determine what your family can afford.

Another important difference to remember is that some schools require divorced families to fill out an additional form. The list of the 300 schools will also inform you if your school wants the details of the noncustodial parent's financial information. If so, you will need to fill out an additional Noncustodial PROFILE.

How Does the CSS Benefit Families?

In many cases, the CSS PROFILE will allow families to receive a financial aid package for 90% to 100 percent of the money they need to attend college. However, it is important to note that this aid package is not always free money. For most families, the financial aid package will also include loans, most likely a mix of private loans and Parent PLUS loans.

Families considered high needs, usually those who make less than $40,000 per year, are more likely to receive aid packages that do not have loans in them.

Financial aid packages might be presented to families as one lump sum. It is important to sit down with an adviser and know the break down for the aid given. Know what is free aid (aid that never has to be repaid), and know how much of the aid is in the form of loans. It is also important to know what types of loans they are offering to you. You don't want to accept loans at a higher interest than you can get on your own.

For more information on the CSS PROFILE, visit the College Board website for an interactive tutorial, as well as a list of recently asked questions. You can also talk with your child's college adviser for more information and resources.

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

What Every Parent Should Know About the New College Financial Aid Rules

Ashley Eneriz — Wed, 28 Sep 2016 09:30:25 +0000

While school just started for many, if your child is college-bound or in college, it's already time to start planning for the next school year. Many families rely on the Free Application for Federal Student Aid (FAFSA) to help shoulder the costs of college, and there have been many new changes to the program. These new changes go into effect this October, so listen up.

New Application Start Date

In the past, families would submit the FAFSA form at the beginning of the new year. However, the new start date is now as early as October 1, 2016. This is a huge change, and if you are in college or have a child in college, you will want to fill the application out that day, or at least in the first few weeks of October.

For some states, FAFSA aid is distributed on a first come, first served basis. Individuals who apply earlier have a better chance of receiving aid, including grants, work-study, and federal loans.

Change Tax Information Submissions

Another big change is that individuals will not be required to submit the previous year's taxes, but instead tax information from two years prior. This means for the 2017–2018 school year, families will send in 2015 information. For families that filled out the FAFSA for the 2016–2017 year, this means you will be sending in your 2015 tax info two years in a row.

This change will make filling out and submitting the FAFSA on time a lot easier, since families used to begin the application process at the beginning of the year. Many families would have to estimate tax information and fix it later on.

Less Asset Protection Could Mean Less Aid

When parents report their finances for their child's FAFSA, a portion of their assets, including savings and investment funds, is not calculated as part of the Expected Family Contribution (EFC). This was good news for families with healthy investments but not a lot of liquidity to pay for college.

However, the dollar amount of assets exempt from the EFC will drop this year, and will continue to drop in following years. This change could mean less financial aid for many families. This will affect middle-income families that were relying on financial aid the most. However, families with lower incomes will most likely not feel the change.

Don't Fall for These FAFSA Myths

Even though there were three major changes to the FAFSA this year, it is still a free form that all families should fill out. Don't fall for these common FAFSA myths and leave money and aid on the table.

1. My Child's Grades Are Not Good Enough

While some schools use FAFSA applications to award merit-based aid, most aid is needs-based. A good portion of financial aid is awarded based off a family's income and size.

2. I Make Too Much Money to Qualify

Many families often forgo applying for financial aid because they believe they make too much. Even if your income makes you ineligible for aid, colleges give out federal student loans through the FAFSA process. If you plan on taking out federal student loans, which are preferable to private student loans, then you must fill out the FAFSA.

3. I Didn't Qualify Last Year

It is wise to apply for FAFSA each year, even if you didn't qualify for aid the year before. There could be unseen changes to your family that you might not have accounted for, such as two children in college rather than one. Also, with the new changes happening this year, you might qualify for aid.

4. The FAFSA Is Too Confusing to Fill Out

This year, you are now allowed to skip questions that do not relate to your family's financial situations. This should make the process a little easier and streamlined. If you are still having issues with your application, there are many free resources online and offline that can help. Please remember that you should never have to pay someone to file this application, nor should you pay for information regarding the process.

Circle October 1st on your calendar and have your tax information ready and easy to access. Even if you don't think you will qualify for aid, apply anyway. And remember: You must apply each and every year your child is in college. This isn't a one-time thing.

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Borrow Student Loan Money From Amazon Prime?

Ashley Eneriz — Wed, 24 Aug 2016 10:00:08 +0000

Amazon Prime has several money-saving benefits for students, including discounted student memberships and textbook rentals. Now, Amazon Prime is offering discounted student loans to its list of perks.

Hold up — Amazon is selling student loans right alongside a yodeling pickle and unicorn meat? Is that even legal?

Amazon is not the actual lender of these loans. Instead, Amazon is partnering with Wells Fargo to offer Student Prime members loans at a discounted rate of 0.5%.

Is There a Catch?

Both Amazon and Wells Fargo are for-profit businesses that are continually looking for creative strategies to increase profits. It was a smart move for both companies, since Amazon will be able to use this perk to increase student prime membership to $49 a year, while also gaining free media coverage. Wells Fargo also benefits from being connected to the largest e-commerce business and its loyal customers.

The partnership will allow the bank to have better access to student consumers who can be targeted for many banking products. Overall, it is a win-win partnership for both companies, but will these loans actually benefit borrowers?

Are Student Loans Through Amazon a Good Deal?

Don't get too distracted by the discount Amazon is offering. The loan is still a private student loan through Wells Fargo. Private loans are not eligible for debt forgiveness programs like many federal loans, and sometimes federal loans even have better rates.

Private student loans shouldn't be your first choice when seeking to finance a college education. Students should exercise all of their options before driving into debt, including the following:

Federal aid through FAFSA;
Scholarships;
Grants;
Accomplishing the first two years of their degree at a community college;
Choosing a state university rather than a private university;
Work-study programs;
Employment tuition reimbursement programs;
Paid internships.

After all of these options are exhausted, then it is best to apply for federal student loans, which have more flexible payment options after graduation. Of course, federal loans have limits on how much a student can borrow, which is why many students turn to private loans.

The Problem With Amazon's Student Loans

Don't be blinded by a discounted interest rate. The 0.5% discount is subtracted from Wells Fargo's usual rates, which are not the lowest among private lenders.

Many credit unions will offer discounted rates for being members and enrolling into autoplay, so if private loans are something you are considering, shop around before settling for the Wells Fargo loan.

What You Need to Know About Private Student Loans

After graduation, many uncontrollable issues can come up. For example, graduates can struggle getting a job, make less than they expect, or even have a period of illness or disability that does not make work possible. Graduates with federal loans are granted forbearance or deferment. Federal loans can also be eligible for income-based repayment plans to make the monthly payments affordable for each borrower.

Many private lenders have forbearance programs in place for cases of unemployment or disability, but acceptance to the program is dependent on the lender. Also, most private lenders will limit the duration of forbearance for unemployment and some might even charge forbearance "fees." And income-based repayment programs are limited to federal loans.

Is foregoing these benefits a risk you're willing to take?

UPDATE (September 02, 2016)

Just six weeks after announcing their partnership, Amazon and Wells Fargo have ended their private student loan program. Although specific reasons were not given, the end of the partnership was announced shortly after Wells Fargo revealed it had agreed to pay a $4 million penalty to the Consumer Financial Protection Bureau in response to allegations of illegal student loan servicing practices.

For more information about private student loans and how to find the best financing for your college degree, please see the following helpful articles:

What do you think of Amazon and Wells Fargo's partnership to offer discounted student loans?

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Freshman Shopping Tips to Cut College Costs

Mikey Rox — Thu, 18 Aug 2016 10:30:07 +0000

Strapped for cash as a freshman? If not now, you will be soon. That goes double for your parents, who are likely footing a portion of the bill — from tuition to room and board to all the living essentials you'll need when you move into the dorm. To make the transition from high school to college just a little easier on the wallet for both you and your obligatory benefactors, here are a few ways to cut costs as you head into the first year of university.

1. Don't Buy What You Already Own

At the beginning of every school year, students get a list of suggested (and some mandatory) supplies that they'll need for the year. The good news for you is that you've been in school for 12 years now, and you probably already have more than a few things on the freshman list. That means you don't need to spring for new items if the ones you already own are in good condition.

"The extensive list of recommended dorm room essentials will make your head spin and your wallet disappear," money-saving expert Andrea Woroch quips. "While some suggested items like 'bedding to fit an extra long twin mattress' are necessities, items like towels, hangers, and pillows can likely be packed from home."

Also, use common sense and identify items you can cross off the list indefinitely, like a drying rack for laundry (you can hang your clothes around the room) and any stand-alone device that's also in your phone: alarm clock, camera, calculator, MP3, etc.

2. Split Big-Ticket Costs With Your Roommate(s)

If you want a few conveniences of home in your dorm room — like a fridge or microwave — considering going halfsies with your roommate(s). Contact your roommates ahead of time to discuss those big-ticket purchases that will be shared among everyone, and how to effectively split the cost. Consider downloading a bill-splitting app to simplify this process. (See also: 5 Modern Ways to Split the Bill)

3. Stock Up on Penny Deals

"When it comes to basic school supplies like pens, notebooks, folders, and sticky notes, it's best to search for penny deals offered during the back-to-school shopping rush and watch for rotating discounts every week," Woroch suggests.

I've seen these types of deals at several popular retailers lately, including Target, Wal-Mart, and Staples, though they're not limited to these stores. Hit them at the right time and you'll walk away with much of what you'll need for classes — pens, pencils, notebooks, and more — for just few bucks. You also can access circulars online or via the Flipp app for quick comparison.

4. Treat Your Old Wardrobe Like It's Brand-new

Everybody loves to go back-to-school clothing shopping. Heck, I'm 35-years-old and I still use this time of year as an excuse to freshen up my wardrobe. If you're on a tight budget, however, consider that your existing wardrobe will be brand-new to everyone at college since nobody has ever seen you before. If you must add a few new pieces to your closet, shop end-of-season sales, clearance sections, or pop into a few secondhand shops (some of which can be found online today).

5. Eat Where It's Free or Discounted

When I was in college, my friends and I had a propensity for buying late-night pizza or bingeing on junk food in our rooms all hours of the day. The problem with this strategy (besides its quick contribution to your Freshman 15) is that it costs a lot of money.

To trim some of this expense, eat most of your meals in your cafeteria and take small items back to your room for later, like fruit, bagels, chips, or fixings for peanut butter and jelly sandwiches. Or, if you're super stealthy, bring an empty food storage container and confiscate heartier meals, like chicken fingers, salads, and your other favorites to scarf down when the cafeteria is closed. If you do plan to go out to eat, identify nights that are easy on your wallet, including half-price apps at happy hour, student nights, and special dish night, like 25-cent wing night or the like.

6. Rent Your Textbooks Instead of Buying Them

Before you buy your textbooks outright, I want you to ask yourself one question: What will you do with that book when the course is over? Your answer is nothing — except sell it back for a mere fraction of the price you originally paid. And that's if you can even sell it back at all. Publishers are really great at "updating" textbooks and discontinuing previous editions so that the school can require you to purchase the latest version. Because what're you going to do, drop out of school? Uh huh — they've got you right where they want you.

Alas, two can play that game. Woroch explains.

"It's no surprise that textbooks represent the biggest line item in your college budget," she says. "The National Association of College Stores (NACS) estimates the average student spends $655 on these study essentials every year. To save big bucks, skip the overpriced campus store and head straight to an online textbook rental site such as Chegg and Campus Book Rentals to save over 70%. To ensure you're not slapped with any fees at the end of the semester, keep the book in pristine condition and avoiding highlighting or marking up the margins."

7. Go Grocery Shopping in Groups

Need to stock up on groceries? Get a group together — which is especially helpful for those who don't have vehicles on campus — and charge a couple bucks per person for gas. At the store, buy the things you'd like for yourself, but go in equally for items that may be shared by the group, like cereal, coffee, chips, and ramen.

8. Use Your Student ID Everywhere You Go

One of the best parts of being a student is using the student discount wherever it's available. I kept my student ID for years after college, and that granted me savings on clothing, movies, food, electronics, and more for years well past its prime. Of course, you should take advantage of it while you're in college, too. As a general rule of thumb, before you purchase anything anywhere, ask if they offer a student discount. Many establishments do, and that simple question will keep more money in your pocket.

9. Search for Open Box or Refurbished Electronics

In a recent survey, the National Retail Federation found that many colleges and universities require incoming and current students to bring their own computers, so a new laptop is likely on the top of your shopping needs. Instead of investing in the newest and most expensive model, search for open box or refurbished options. Best Buy typically has open box items set up on their salesroom floor, while online vendors such as Newegg have webpages dedicated to these lower-priced options with discounts on open box laptops ranging from 10% to 40%. Apple also offers refurbished MacBooks and iPads, so always check these options before you buy.

Are you heading into your freshman year of college, or have a kid who's starting their freshman year? How are you saving on supplies and other essentials? I'd love to hear from you in the comments below.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Money-Saving Hacks Every College Student Should Try

Ashley Eneriz — Mon, 15 Aug 2016 09:30:24 +0000

Don't let the costs of college loom over your head. Use these seven financial hacks to cruise through college and save thousands off your overall experience.

1. Rent Your Textbook Through Amazon

No need to buy every textbook, especially with Amazon's rental textbook program. My sister rents all of her textbooks through Amazon and saves $50–$100 off each book. For example, she rented Multicultural Education in a Pluralistic Society (9th Edition) for a recent class for $37.45. The new price of the book is $138.47 and the used price is $67.48. Amazon Prime covered shipping costs.

2. Research Book Costs Before Enrolling

When you first start taking college classes, you will have more flexibility over which classes you can choose, especially when you need to fulfill the GE requirement of your degree. Choose your class based on textbook and material fee cost, if possible. I signed up for a psychology class in my freshman year, but the textbook was written by the teacher and would cost $190. Since there was not a way find the book used, I dropped the class within the acceptable time period and took another class that fulfilled the requirement and had $20–$30 in book costs.

Often you can borrow the textbook from the university library. At my school, the recent edition textbooks were only lent out for in-library use for an hour, but that was usually enough time to finish my work.

3. Piggyback Your Degree With Community College Courses

I graduated debt-free, and one of the major things that helped me do that was the abundance of community college courses I was able to take. My university allowed 70 community college transfer units. With the help of online classes, I was able to enroll in two local community colleges that increased the type of classes that I could transfer to my degree.

I simply looked up agreements between my university and my two local community colleges and took as many classes as possible. One semester, I was enrolled and taking classes at three colleges at once. This also allowed me to take more than 18 units, which allowed me to finish my degree in three years, instead of four. All of this saved me five semesters at my university, which means I saved roughly $20,000.

5. Test Out of Classes

Research the possibility of testing out of some college classes. This can help you avoid boring and costly introduction classes that you already are knowledgeable in. The College-Level Examination Program (CLEP) is accepted by over 2,900 colleges. The CLEP site allows you to search which colleges allow which test, though you will have to find out the maximum amount of credit your university allows through CLEP. The test costs $80, but military personnel may be eligible to receive funding for the cost of CLEP exams.

6. Check Out Local Thrift Stores

Shop at thrift stores that are near your university for a better chance to find apparel with your college's logo on it, as well as still-relevant textbooks. You can score both inexpensively, and either keep them for yourself, or sell them for more online or to other students via sale fliers on the campus' public bulletin board.

7. Become a Resident Assistant (RA)

Movies usually portray resident assistants as overbearing college students who have been on campus for almost a decade. However, the job can be fun and the free rent is definitely a perk that will save you $8,000 to $12,000 a year. Know that these positions are usually competitive, so make your application stand out, and volunteer for other on-campus events to show you have school spirit.

8. Get on a Family Plan

There are many different family plans that you can share to save money. The most popular family plans are offered through cellphone providers. Being on a family plan rather than on your own individual plan can save you $50–$100 a month off your cellphone bill.

Family plans are not just for cellphones, though. You can save money by sharing TV streaming, Amazon Prime, Uber, and more. (See also: How Family Plans Can Save You Tons)

College is expensive, but that doesn't mean you have to drown in debt to get your degree. Living frugally and minimizing living costs in college will make it easier to once you graduate.

What are your favorite ways to save money while in college? Already a graduate? Share your experience of frugal college living.

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: