This guide will cover everything you need to know about the Shawn Carter Scholarship, including eligibility requirements, how to apply, and how much financial support you can receive. We’ll also discuss some similar scholarships you might be eligible for. What is the Shawn Carter Scholarship? The Shawn Carter Foundation was founded in 2003 by Gloria Carter and her son, Shawn “JAY-Z” Carter. The foundation was founded with the belief that anyone with motivation should have the opportunity to pursue further education without worrying about the cost of attendance. The scholarship awards money to students from households making less than $75,000 per year. The program awards as much as $2,500 to recipients each year and continues to make awards for as long as the recipient remains in good standing as a student. How to apply for the Shawn Carter Scholarship In this section, we’ll cover what you need to know to apply for the Shawn Carter Scholarship. Eligibility requirements Before you apply for the Shawn Carter Scholarship, make sure you meet these requirements: Be pursuing your first undergraduate degree Be a US citizen or permanent resident Be 25 years old or younger Have a GPA of 2.0 or higher Have a household income not exceeding $75,000 The application The Shawn Carter Scholarship accepts applications through its website. We’ll break it down. Page 1. Describes the program and what it looks for in applicants. Page 2. Registration. You’ll provide your name, age, and contact info to create an account. Page 3. Prequalification. You’ll confirm that you meet the eligibility requirements. Page 4. The application. You can go through the following steps in any order: Applicant information Education information Honors and rewards, both academic and extracurricular Extracurricular activities, including which you participate in and how long you’ve participated Family information Financial information Personal statement and special circumstances Essay and photo Letter of recommendation It’s important to fill out the application as fully as possible. Also, make sure that you take the time to write a good personal statement and essay. These are your opportunities to let your personality shine through and to show why you want to pursue higher education.  The application doesn’t list a specific topic for the essay, so feel free to get creative and use the opportunity to make a good case for why you deserve the scholarship. Important dates to remember If you’re applying for the Shawn Carter Scholarship, remember these important dates: Applications open: April 1 Application deadline: April 30 Award date: Not listed Other scholarships like the Shawn Carter Scholarship The Shawn Carter Scholarship is aimed at students who need financial assistance with paying for college and who may not have perfect academic records. Instead, it focuses on other factors, including a determination to better oneself through education. Some similar awards include: The Ron Brown Scholarship The Courage to Grow Scholarship The College Bound Scholarship Mos can help you get started applying for both government financial aid and scholarships, like the Shawn Carter Scholarship. Join us now. 

Learn more about the Shawn Carter Scholarship, including eligibility requirements and how to apply.

Complete guide to the Shawn Carter Scholarship

When paying for goods or services, most people reach for one of two options (besides cash, of course): a debit card or a credit card. There are various schools of thought on the benefits of debit vs. credit cards.  Credit cards often offer rewards, but they can lead to costly credit card debt.  Debit cards don’t usually have rewards, but there’s no debt involved—and no effect on your credit score.  Is there a friendly middle ground that offers the benefits of each? Perhaps! The rare rewards debit card offers perks for your everyday spending activities while avoiding the pitfalls of credit card debt.  Here’s everything you need to know about debit card rewards.  Debit vs. credit basics The main difference between debit and credit cards is that debit cards allow you to spend your own money, while credit cards allow you to spend borrowed money.  When you pay using a debit card, the funds are immediately debited (removed) from your checking account. If you spend more than you have available, the transaction might be declined—or it may go through but leave you with a negative balance and an overdraft fee.  When you pay for something using a credit card, the transaction is added to your credit card account. The credit card issuer sends the actual cash to the merchant. You then pay off your credit card bill. If you pay it off in full before the due date, you won’t pay interest on your purchase—but if you carry a balance, you will pay interest.  With a debit card, there’s no interest cost, no effect on your credit score, and no possibility of going into debt. The downside is that debit cards don’t typically earn rewards.  Credit card use may affect your credit score. If you carry a balance, you can go into debt and end up paying a significant amount in interest. Many credit cards earn rewards, however, including airline miles and cash back.  Do debit cards offer rewards?  The vast majority of debit cards don’t offer any type of reward. However, there are a handful of rewards debit cards that do offer perks. The reason most debit cards don’t offer rewards is quite simple: debit cards just aren’t as profitable for banks!  When you make a purchase using a debit card, the bank may earn a very small fee (called an “interchange fee”). But they won’t charge you interest, which is the real money-maker for banks. On the other hand, when you use a credit card, the bank earns an interchange fee and can charge you interest. Interest rates on credit cards are above 20%, on average, so this can be extremely profitable for banks.  Because banks earn so much from credit cards, they can afford to offer rewards to customers. But with a debit card, there just isn’t as much of a profit margin to justify rewards.  Credit card rewards vs. debit card rewards  Even among the debit cards that do offer rewards, those rewards typically aren’t as lucrative as credit card rewards. Some debit cards also have other requirements in order to earn rewards, like keeping a certain amount of money in a checking account.  A typical rewards credit card system might look like this: For every $1 you spend, you could earn 1 airline mile or 1–2% cash back, depending on the card. For example, a $100 purchase might earn you 100 Delta airline miles or $1–2 in cash back.  Some credit cards have “tiered” reward systems, where spending in certain categories earns rewards at a higher rate. For instance, a card might earn 3% on restaurant purchases, 2% on gas, and 1% on all other purchases.  Debit card rewards are usually some sort of point system, which can later be redeemed for rewards like gift cards or cash back. Other debit cards might offer a different reward style, like an increased interest rate on your savings.  In general, the earning rate of debit card rewards is lower than that of credit card rewards. But remember, debit cards are typically free and don’t charge any interest. Credit cards offer better rewards but can end up costing you a lot of money depending on how you use them.  Types of debit card rewards There are a few different styles of debit card rewards. The specifics vary by program and bank.  Keep in mind that some programs might have additional requirements. For example, a bank may require that you make a direct deposit each month or that you keep a certain minimum balance in your bank accounts.  Here’s an overview of the various types of debit card rewards programs. Cash back Cash back debit cards offer cash rewards on every transaction you make. For example, a card might offer 1% cash back—meaning if you spend $100, you earn $1 in cash back rewards.  These cards are fairly rare, as banks don’t have much incentive to offer such lucrative rewards cards.  Points Points debit cards offer points rewards for every transaction you make. This might be a flat amount per transaction (e.g., 5 points per transaction), or it could be based on the dollar amount (e.g., 1 point per $1 you spend). These points are added to your account automatically. Eventually, you can redeem them for various rewards. These rewards vary depending on the bank and rewards program, but they might include things like gift cards, cash back, or travel perks. With these cards, you usually have to save up until you hit a certain threshold. For instance, you may need to accumulate 5,000 points in order to redeem them for a $50 gift card.  Relationship rewards Some banks offer “relationship rewards” for using a debit card. These rewards can look different from bank to bank and might include things like discounts on other banking products, exclusive access to certain products or services, or waived fees.  For example, a bank may offer to waive monthly service fees if you use their debit card X times per month. Or, they may enter you into a prize draw when you use your card. Again, these details vary significantly depending on the bank.  Higher APY on savings Some banks may offer to pay you a higher annual percentage yield (APY) on your checking or savings account when you use their debit card. APY refers to the amount of interest you earn over one year on a deposit account. For example, an account may pay 0.5% APY in interest by default. The bank may then offer to increase this APY to 1% if you use your debit card at least 10 times per month.  Other perks Banks and credit unions may offer various other perks for using your debit card. These could include waived ATM fees, bonus rewards, or prize drawings. You can find the details of a bank’s rewards programs in the fine print, which is often listed at the bottom of the bank’s website.  What debit cards offer rewards? Most debit cards don’t offer any rewards—but there are a handful that do. Here are some of the best options.  Mos student debit card If you’re a student, Mos might be the perfect solution for you.  Mos is a rewards debit card for students. But it’s much more than just that! Mos is a student-focused banking solution that offers dozens of juicy perks. It offers help with finding scholarships, easy cash advances for when you’re short on cash, access to side gigs, and much more. Plus, you can save when you spend with the Mos debit card. After picking your favorite spending category, you can earn points on every purchase you make in that category. You can then redeem those points for cash back rewards, which are deposited right into your account!  Mos members also enjoy exclusive deals and discounts specifically for students. You can even work with a private advisor to help you navigate how to pay for college and save as much money as possible!  Sign up today to see why Mos is trusted by more than 400,000 students nationwide.  Local banks and credit unions  Many smaller regional banks and credit unions offer rewards checking accounts and/or debit card rewards. The details vary by bank.  For instance, many credit unions participate in the Kasasa checking system. This program allows credit unions to offer perks to their members who use debit cards. With Kasasa, the rewards often kick in when you use your debit card at least 12 times per month. Depending on the bank, this might qualify you for perks like: Increased interest rates on your savings Refunds of ATM fees Cash back on your purchases And more Kasasa is a unique program because it’s independently run but has been adopted by various banks and credit unions throughout the nation. You can look at the websites of credit unions in your area to see which offer Kasasa Cash or Kasasa Cash Back accounts.  Axos Bank Cashback checking Axos Bank is an online bank that offers a cash back checking account. With it, you can earn up to 1% cash back on purchases you make using your debit card.  However, there are some significant restrictions. For one, cash back is only offered on transactions that require a signature. This means online and in-app purchases won’t qualify, but something like a restaurant meal will.  Also, certain categories are excluded. These include grocery stores, wholesale stores, supermarkets, and discount stores. These transactions won’t qualify for cash back, even if they require a signature.  To earn cash back rewards, Axos bank customers must maintain a checking account balance of $1,500 or more. If the balance drops below this threshold, the cash back rate is reduced to 0.5%. Discover Cashback checking  Discover Cashback Checking is a checking account and debit card that offers 1% cash back on eligible purchases. It’s not currently accepting new customers, although Discover plans to reopen applications “soon.” Check back later for more details.  Discover Cashback Checking offers 1% spending rewards on up to $3,000 in purchases per month. That means you can earn up to $30 per month in rewards just for making everyday purchases.  The account does exclude certain categories, like peer-to-peer payments (e.g., Venmo) and loan payments. But all standard purchases made directly with the merchant should qualify.  Bottom line Most debit cards don’t offer rewards, but the few that do are certainly worth exploring! And while credit card rewards might seem tempting, remember that they’re only worthwhile if you pay your balance off in full each month. If you carry a balance and pay interest, you’ll pay far more than the rewards you earn are worth.  If you’re a student, check out Mos. Mos is a banking service designed specifically for college students. Its debit card offers rewards, zero fees, and exclusive perks like help with finding scholarships, side gig opportunities, and much more. 

Most debit cards do not offer rewards, but a handful of rewards debit cards do offer some perks. Here’s how they work. 

Debit card rewards

Taking control of your finances is a big part of going to college and becoming an adult—and it starts with opening a bank account. Bank accounts give you a place to save your financial aid, paycheck, and other money you receive. Of course, they also let you spend that money when you need to. First, you need to open a bank account. This isn’t the most fun task in the world, so you might want to know how long it takes. This article will explain how long opening a bank account takes, walk you through the process, and offer some tips on shortening the process as much as possible. How long opening a bank account takes Opening a bank account is a key part of personal finance for college students.  The time it takes can vary between financial institutions and account types. Savings and checking may differ in the speed of opening. On top of that, debit cards linked to checking accounts can take a week or longer to arrive. If you’re closing an old account and opening a new one, the whole process can take several days. Finding the best bank account can also takes some time. In general, it doesn’t take too long to open an account once a good bank has been found. The biggest difference is whether you open your account online or in person. How long does it take to open a bank account online? Opening a bank account online is the quicker option since there’s no need to leave your home or schedule an appointment ahead of time. You can knock out the entire application in 10-15 minutes if you have all of your documents together. If you already have an account at a bank, it might be even faster—especially through the bank’s mobile app. The downside is that running into issues can prolong the process. There’s no face-to-face interaction, so fixing any problems can be a bit harder than an in-person appointment. How long does it take to open a bank account in person? Opening in person takes longer. Most banks will make you book an appointment. You might have to wait several days, depending on how busy that bank is. Then, of course, you have to travel to that bank. The appointment and application itself can take a bit longer than online since you’re working with a human instead of a computer. But the big benefit is face-to-face interaction. Communicating and solving issues is easier, assuming you brought all your documents. In-person is often the best choice for your first bank account overall or your first account with a new bank. It’s also a good option if you have cash or a check you need to deposit right then and there. What you need to open a bank account as fast as possible Banks and credit unions need a bunch of info about you to open your account—and this info will be detailed on the “vital documents” section of the account information. The nice thing is that some documents cover multiple bases. Knowing this info and gathering the correct documents ahead of time smooths out the account opening process.  Proof of identification You’ll need 2 forms of ID. The exact requirements can vary by bank, but here’s generally what to expect: One form of photo ID issued by the US or a foreign government: This could be a valid driver’s license, state ID, or passport, to name a few. A second form of ID: This could be your Social Security card, birth certificate, or a bill in your name, such as an electronic bill statement. Proof of address Here are some documents you can use to prove your address: Active utility bill Bank statement Credit card statement Again, some documents here may double up with other document requirements. Social Security number or ITIN Your Social Security card offers proof of your Social Security number, even if you used your Social Security card for proof of ID as well.  Certain other documents may work if you can’t find your Social Security card` but check with the bank. Otherwise, you can order a new card. If you don’t have a Social Security number, you may have an Individual Taxpayer Identification Number instead. Your ITIN can be found on your ITIN letter—use this as proof. Minimum opening deposit Some accounts demand a minimum deposit to open the account. Bringing cash or a check to your appointment, if it’s in person, works. If you’re applying online, you might have to authorize a transfer from an existing bank account or deposit a check via the mobile app if you don’t have a bank account. How to open a bank account, step-by-step Opening your bank account doesn’t take too long in the grand scheme of things, but you can run into time-wasting hangups along the way if you aren’t prepared. Follow these steps to make the bank account opening process as quick and painless as possible. Know the account type you need Figure out which account type you need first.  The 2 main types students find useful are checking and savings accounts. Checking accounts are designed for your spending money. They don’t often pay interest, but you can write checks or use your debit card to spend out of the account with little restriction. Savings accounts are designed for saving, as the name implies. They pay interest to help you keep pace with inflation, but you can usually only take money out of your account 6 times per month—after that, they may charge you a fee. Regardless of which you choose, look for student-focused bank accounts. These tend to have low minimum balances, low or no fees, and access to financial literacy learning resources. All this makes it easier for you to manage your money and take control of your finances. Compare banks After settling on an account type, compare different banks and credit unions to see where they shine. Here are some factors to weigh: ATMs: How many ATMs do they offer? Do they charge or reimburse out-of-network ATM fees? Cash back and promotional opportunities: Many banks offer free money for opening and keeping an account for a certain time. Some pay rewards on debit card spending. Customer service: How many ways can you access customer service (phone, live chat, branches, email, etc.)? What are their customer service hours? Do they have self-help resources? Fees: Banks may charge fees for various things—try to find banks with low fees to save money. Interest rates: High-yield savings accounts pay far more interest than traditional accounts. Some banks even pay interest on checking accounts. Online and mobile banking: Does the bank have a fast and intuitive online banking portal and mobile app? This is great for banking on the go. Gather the documents you need This step is quick but saves a lot of trouble when it's application time.  Gather the documents you need for the application. When it’s time to apply, double-check that you have everything before starting the application process or going to your appointment. Keep these documents in a safe place, like a lockbox. This will help you keep track of the documents so applying for more accounts in the future is faster. Apply for the bank account If you’re applying online, go to the bank’s website and start an application. You’ll then need to fill in any information asked and potentially upload digital versions of your documents or scanned hard copies if applicable. Processing these documents can take a minute, but you’ll likely get an approval message shortly. If you’re applying in person, you may need to schedule an appointment first.  Bring your folder of documents with you and show up a few minutes early for your appointment, just in case. The banker will ask to see your documents, then spend a few minutes filling in information on their end. You’ll then read and sign a bunch of disclosures and other documents to officially open the account. In either case, you’ll get copies of all disclosures and other important information for your records. Deposit money into the account Finally, deposit money into your account if it requires a minimum deposit. If you applied online, the application might ask you to link another bank account and initiate an ACH transfer. It might also let you deposit a check via its mobile phone app if it has remote deposit capabilities. If you apply in person, bring cash or a check if possible. Otherwise, you might be able to transfer money from another bank (like your parent’s) online. If no minimum deposit is required, make a deposit ASAP to start saving money. The quicker you get money in your new account, the earlier you can potentially start earning interest on it—every penny counts!  Get a bank account and start saving ASAP We get it. You have plenty on your plate, from homework to club meetings to social time.  Luckily, opening a bank account does not take all that long. Prepare your documents and a minimum initial deposit ahead of time, then hop online to set up your account—or schedule an in-person appointment if you have some time. 
For more advice and assistance with opening and maintaining a bank account in college, check out our complete guide to banking for college students. If you’re interested in a fee-free debit card and checking account, why not check out Mos?

College is a great time to open a bank account. Learn how long it takes and what you need to streamline the account opening process.

How long does it take to open a bank account?

Managing personal finances is vital for a successful adult life—particularly these days when everything seems to cost an arm and a leg!  Despite the importance of money skills, they simply aren’t taught in schools. The responsibility to learn personal finance usually falls on the individual.  Why is financial literacy so important for college students? College is the time when you are laying a foundation for your future. If you set a good financial foundation now, you’ll be more likely to live a financially successful life.  This guide to financial literacy for college students covers just about everything you need to know about money skills while in college.  Components of financial literacy  Financial literacy is a broad concept that covers all the basic principles of personal finance.  There are several broad components to be aware of. Earning Before you can save, invest, or really even plan, you must earn money. It seems obvious, but earning is the foundation of personal finance!  For students, earning may look a bit different from the general population. For many students, the primary source of “income” is financial aid or scholarships. Many students have part-time jobs or side hustles, but few work full-time.  To prepare your finances, it’s important to understand how much money you’re bringing in each month—both on a gross and net basis. “Gross” refers to total income, while net refers to income after taxes are taken out.  If you work a part-time job and earn $400 per week, your gross income is $1,600 per month—but your net income is likely a bit lower due to federal and state taxes being taken out of your paycheck.  If you have income from multiple sources (financial aid, work-study, etc.), then you’ll have to combine your income sources to figure out your total income. Once you have this figure, you can make a budget, work toward savings goals, and more.  Spending and budgeting We all know how to spend money—but spending mindfully is another matter! For most students, money is tight, so it’s important to have a budget.  To start, you’ll need to calculate your net income (see above) and then tally up all your expenses. Start with the essentials—tuition, groceries, rent—before you budget anything for optional expense categories. We’ll discuss budgeting in greater detail below.  Borrowing Getting a handle on debt involves understanding interest rates, credit scores, and the long-term impacts of borrowing.  Borrowing money is necessary for most students. Around 70% of students have student loan debt by the time they graduate, and many also take out other loans or accumulate credit card debt.  While borrowing is often a necessary component of student finances, it’s vital to understand the impact of debt. Debt can create a significant financial burden for years or even decades to come.  Student loans can seem abstract, as payments aren’t required until 6 months after graduation. But the burden of debt becomes very real very fast post-graduation.  Saving and investing Any leftover funds can be used for saving or investing toward your financial goals.  The first step is to determine what your goals actually are!  Do you want to pay off your student loans early? Do you want to get a jumpstart on saving for retirement? Do you want to save up for a down payment or a new vehicle?  While in school, you might not have much extra cash to work with—but it’s still worthwhile to sit down and think about your financial goals in life.  Financial literacy for college students  Financial literacy encompasses all aspects of personal finance. For students, the most important principles look a bit different than they would for the general population. Here’s what students should focus on when learning financial skills.  Financial aid  Financial aid is all the money you can get from the government to help pay for college. It includes federal student loans, grants, scholarships, and work-study.  Financial aid is applied for using the Free Application for Federal Student Aid (FAFSA). This application is due every academic year. Filling out the FAFSA yearly is the most important thing students can do to improve their finances while in college. Completing the FAFSA determines how much financial aid you are eligible for. “Financial aid” is a broad term, and there are several different types of financial aid to be aware of: Scholarships: Scholarships are free money for college offered by the government, organizations, nonprofits, and companies. Scholarships do not need to be paid back. Most scholarships are applied for directly, outside of the FAFSA. However, completing the FAFSA is usually a pre-requisite to applying for scholarships. Grants: Grants are free funds for college offered mostly by the government. They are often need-based, meaning that students from lower-income households will often qualify for more grants. Grants do not need to be paid back.  Work-study: Work-study is a program that allows students to work part-time jobs on campus or nearby. The program is a partnership between the government and private employers—students work for private employers (or the school itself), and the federal government helps cover some of the student’s wages.  Loans: Student loans are available to help cover the cost of attending college, but they must be paid back eventually—with interest. Fortunately, loan payments don’t begin until 6 months after graduation, so students will have some breathing room before it’s time to repay their loans.  It’s important to understand that most federal student aid goes directly to the school rather than the student. Financial aid will be applied to tuition and fees first. If there are funds left over, they may be transferred directly to the student to be used for living expenses. Scholarships  Scholarships are available from a variety of sources, including private companies, nonprofits, governments, and colleges. They provide funds to students to pay for tuition or living expenses and do not need to be repaid.  Some scholarships are need-based (based on income), while others are available specifically for certain groups of people. For instance, there may be a scholarship for those pursuing engineering degrees or for first-generation college students.  It’s a great idea to apply for as many scholarships as you qualify for, as they can drastically reduce the cost of attending school. Here’s how to apply. File the FAFSA. Most scholarships require that applicants have already filed the FAFSA for that academic year.  Search for scholarships. You can use BigFuture, Scholarships.com, Sallie Mae, or your school’s financial aid department. Look for scholarships that you qualify for (most list clear requirements for applicants). Mos can help you with applying for scholarships and grants while offering resources to improve your financial literacy. Apply directly. Each scholarship will have its own application process. In general, students must submit a form and may be required to submit an essay or answers to writing prompts.  Keep applying. Don’t wait to hear back—keep applying for any scholarships that you qualify for. And remember, scholarships are based on academic years—so you can apply each year of college.  Student loans  Student loans are offered by the federal government, as well as private lenders. Most students take out federal student loans. Federal student loans are applied for using the FAFSA. Once the application is processed, the government will calculate the maximum amount of federal loans that you can take out. From there, it’s up to you to determine how much you actually want to borrow.  Student loans must be paid back eventually, with interest. Students typically aren’t required to make payments until 6 months after graduation (or 6 months after dropping out). This is known as the student loan grace period.  Students should aim to exhaust all their other options before using student loans. In other words, you should aim to maximize your use of grants, scholarships, and your own savings before borrowing money for college.  Budgeting  Budgeting is important for keeping your finances on track. This is particularly important for students, who often don’t have a whole lot of extra cash to work with! To get started with budgeting, it’s helpful to use a budgeting app. These apps can help you track your spending, set goals, and track your progress.  If you’d rather go the manual route, you can use a college student budget template to get started. The basic principle of budgeting is to first understand where your money is going every month and then make changes where appropriate to work toward your financial goals.  For instance, if you notice that you’re spending $200 a month on dining out, trimming that down a bit could allow you to allocate more towards student loan repayments. But until you start tracking your spending, you simply won’t know how much you’re spending on each category.  Building credit Credit helps you apply for loans, credit cards, and even apartments. It’s measured using a credit score, which is a numerical score between 300 and 850.  Your credit score will be very important for the rest of your life. Generally speaking, the higher your credit, the easier it will be to get approved for loans—and the lower your interest rates will be.  Building credit in college could take a few different forms, including: Opening a credit card and paying it off in full each month Becoming an authorized user on a parent’s credit card Beginning payments on your student loans to build a positive payment history Making on-time payments on any loans you have It takes time to build a positive credit history. The earlier you start, the more progress you can make by the time you graduate. Taxes Taxes are an unfortunate part of being an adult and are something that you’ll have to deal with for the rest of your life. Fortunately, college students often don’t owe much in taxes—but they will still need to file each year. Students may also qualify for certain college tax credits. Many students don’t technically need to file a tax return as long as their income is under a certain limit. However, it’s still a good idea to file, as many students may actually get a tax refund when they file. While manual filing is always an option, it’s much simpler to use software. Students can usually use free tax software to file simple tax returns. Free versions from TurboTax, Credit Karma Tax, and H&R Block will typically be sufficient for students.  The IRS also maintains a free resource of tax tips for college students.  If you live in a state with a personal income tax, you may also need to file state taxes. Saving and investing  If you find yourself with extra money in your budget, it’s wise to save it. Or, better yet, invest it for your future. Even very small investments can grow substantially over long periods. Say you’re 20 years old and plan to retire at age 65. Consider these powerful examples: Just $100 invested today will be worth around $2,100 after 45 years (assuming 7% average returns) $100 per month will be worth a whopping $355,866 after 45 years For many students, saving or investing can seem out of reach. But hopefully, these examples give you some perspective on the fact that it really doesn’t take much to make a meaningful difference in your financial future.  To learn more, read through our guide to investing for college students.  Financial resources for college students  Students are in a unique financial situation, but they also have unique resources available to them. Here’s what to explore.  Mos  Mos is a banking app and debit card made specifically for students. It offers a simple yet powerful banking solution with no fees or nonsense! Plus, Mos offers tons of resources like guidance on applying for scholarships, opportunities for side-gigs, exclusive deals and discounts for students, and much more.  Join Mos today to learn why over 400,000 students are optimizing their personal finances with Mos!  College finance courses  If you’re interested in finance, you might consider enrolling in a finance-related course while in school. Even if you’re not pursuing a finance-related degree, some of these courses can be quite beneficial for any student.  It’s also worth looking into your school's community/continuing education classes. These classes are often offered in the evenings and teach a lot of real-life skills. If your school offers a personal finance continuing education course, it could be a great opportunity to learn valuable skills firsthand.  Campus financial aid department  Your school’s financial aid department is primarily there to help you with all things financial aid—but they’re also a great resource for finance in general. If they can’t help you directly, chances are that they can point you in the direction of another resource that can.  Friends and family  Finally, don’t shy away from asking your friends and family for financial guidance. Parents, aunts and uncles, family friends, and older peers are all great resources. You may even have a friend your age who is interested in finance and could help answer any questions you have.  Wrapping up  Financial literacy is important for everyone, but it’s particularly important for young adults and students. With the tips and resources found above, you can be well on your way to a brighter financial future.  Want a simple way to optimize one aspect of your finances? Sign up for Mos, the debit card specifically designed for students. Mos offers easy money management with cash back rewards, no fees, help applying for scholarships, and much more. 

Financial literacy involves learning basic money skills to manage your personal finances. Here’s everything college students need to know about money.

Financial literacy for college students

Banking is a vital part of personal finance—and for many of us, our bank accounts are the main financial tool we use weekly or even daily. Finding the right bank can save you headaches—and money. It may seem like all banks are the same—and on a basic level, most do offer similar services. But when you look closer, you’ll notice that each bank has its own unique pros and cons. Banks offer different services, fee structures, interest rates, and more.  In this guide, we’ll go over everything you need to know about finding the right bank for your needs. Finding a bank: Questions to consider  There are hundreds of different banks, from big national banks to small regional credit unions—plus a variety of online-only banks.  To choose, you’ll want to ask yourself some important questions. Is access to physical branches important to you? Are you looking for any specific features or perks?  Before you shop around for a specific bank, sit down and ask yourself the following questions.  What account type do I need?  What type of bank account—or accounts—do you need?  You may just be after a simple checking account or a checking + savings combo.  Or maybe you want a specialty account, like a money market account or even a retirement account.  Or maybe you also want to open a credit card along with your standard bank account.  Some banks offer lots of account types, while others are more simplistic. If you’re hoping to keep most of your accounts at the same institution, finding a bank with several options may be helpful. At the same time, using multiple financial institutions is simple enough these days. You might have your primary checking account at a local credit union, a high-yield savings account at an online bank, and a retirement account at a stock brokerage.  Do I need a loan, credit card, or mortgage? In addition to considering what type of bank account you need, it’s also important to consider the type of loan products you might want or need.  Most banks offer loans, credit cards, mortgages, etc.; however, their interest rates vary significantly.  If you plan to apply for any sort of loan or credit card in the near future, it’s important to consider the impact of interest rates. Even a small difference in APR (annual percentage rate—the yearly interest cost you’ll pay on what you’ve borrowed) can make a huge difference over the life of a loan.  Again, it’s not essential that you keep all your accounts and loans at the same bank—but it could simplify your life a bit.  Do I need access to a physical branch? One of the most significant debates is whether or not you want access to a physical bank branch. This will determine if you should look for a traditional bank or credit union or if an online banks would be a good fit for you.  Physical bank branches certainly have benefits. They’re helpful for large cash transactions, and sometimes it’s easier to talk money matters with a real human, face-to-face.  But these days, physical banking is less and less necessary. With online banking, you can conduct most of your transactions from your computer or smartphone and use an ATM for cash transactions.  Even things like depositing physical checks can be done via a mobile app with most banks.  For physical cash, withdrawing is easy from ATMs—though you may be charged a fee if you can’t find an in-network ATM. Depositing physical cash can be done at many ATMs, but not all.  If you frequently use cash, it may be wise to consider a bank with physical branches. If not, physical banking isn’t necessary to prioritize.  Do I need any particular features or services?  Your bank probably offers other stuff beyond your checking and savings account. They issue loans (car loans, mortgages, small business loans, etc.), rent safe deposit boxes, and much more. Some even offer advisory services, like financial advising. It’s also wise to think ahead. Perhaps you just need a bank account now, but you plan to get a car loan in the next few years. Do the banks you’re considering offer auto loans? Again, it’s not an absolute necessity to keep all your financial activities under one roof. But for many people, it’s helpful to keep things simple by keeping all of their finances in one place. Do I qualify for any specialty banking products?  Finding a good bank for you may also involve checking to see if you’re eligible for any exclusive bank accounts.  Most bank accounts are available to everyone. These accounts provide the basics and are available from most traditional banks, credit unions, and online banks.  Then there are a variety of specialty bank accounts that are only available to certain groups of people. These accounts tend to offer better perks, like lower fees or higher interest rates on savings—but they’re not available to everyone.  For example, student bank accounts are offered to college students, teen bank accounts are offered to teens, and veteran’s accounts are offered to military veterans and their families.  For students, Mos is worth checking out. Mos offers student-first banking, including a fee-free debit card and banking solution with generous perks specifically for students. Mos offers cash back rewards, help finding scholarships and grants, assistance finding side-gigs, and much more.  The Veterans Benefits Banking Program (VBBP) offers generous perks for veterans. Many banks and credit unions participate in the VBBP. If you qualify for one of these accounts or programs, it’s well worth considering. The exclusive perks and benefits offered are often superior to what’s available with standard bank accounts.  Types of banks compared  Did you know that there are over 4,200 banks in the US and over 72,000 physical branches? That’s a whole lot of banks to choose from!  There are several broad categories of banks, from small credit unions to big national banks. The section below will highlight some of the key differences between the different categories.  National banks  National banks are the big banking institutions that are likely household names.  These companies are massive and often have hundreds, if not thousands, of physical bank branches. The main benefit of these banks is that they have so many branches. Even if you are traveling out of state, you will likely still have access to physical bank branches. Plus, they offer access to a massive network of ATM machines, so it’s easy enough to find a fee-free ATM.  Another perk is that these banks offer a wide variety of services. The big banks tend to offer everything from standard banking to loans to investment management.  The downside is that these banks often have higher fees. Many have monthly service fees just to have a bank account open and may also have higher fees for things like overdrafts (when you accidentally withdraw or spend more money than you have).  Regional banks  Regional banks are large banks that operate in a specific geographic region. For instance, a bank may operate on the West Coast or in the Midwest.  These banks share many of the same characteristics as the bigger national banks. They tend to offer a wide variety of services and have many branches (within their regional area).  Community banks Community banks are smaller bank chains that operate in local communities. This usually means a specific town, county, or multi-county region. Community banks typically only have branches in one state and usually only operate in a certain region.  Because these are smaller banks, there may be some services—such as financial advisory or investment management—that aren’t available. With that said, they tend to do more to attract customers—which may mean lower fees or higher interest rates on savings accounts.  Community banks have their own ATMs but may not have access to a big network of fee-free ATMs outside of their operating area.  Online banks  Online banks are banks that operate solely online. They do not have physical bank branches where you can access banking services.  Online banks can offer perks for those who don’t mind not having access to physical branches.  For one, running an online bank costs much less than running a physical bank. These online banks don’t have to pay for rent, utilities, or salaries for tellers.  In many cases, online banks pass some of these savings onto their customers. This could come in the form of a lower interest rate on loans, lower fees on bank accounts, or higher interest rates paid on your savings.  For example, many online banks offer high-yield savings accounts. These accounts function similarly to standard savings accounts but pay much higher interest rates.  Some online banks specialize in a specific area of personal finance, while others offer a broad selection of services.  The main downside is that there are no physical bank branches. However, online banks usually partner with other financial institutions to offer fee-free access at select ATMs.  If you’re someone who values in-person banking, online banks likely aren’t for you. But online institutions are worth checking out if you want the best deal possible on your banking services.  Credit unions  Credit unions are member-owned financial institutions. They function similarly to banks in that they offer many of the same services—deposit accounts, loans, credit cards, etc.  However, they are nonprofit organizations rather than for-profit companies. The goal of a credit union is to benefit its members—not to make a profit. Credit unions are owned by their members. When you open an account at a credit union, you technically now own a small slice of the entire credit union. Cool!  Because credit unions are not set up to make a profit, they are often much more affordable than standard banks.  Credit unions typically offer lower interest rates on loans and credit cards, lower fees on banking services, and potentially higher interest rates paid on savings accounts.  Credit unions are typically local or regional chains, but some also operate as online banks. If you have a credit union in your area, it’s well worth looking into.  Specialty financial institutions Specialty financial institutions are non-bank companies that offer financial services. Examples include stock brokers, non-bank lenders, and companies like Mos. These companies are not banks, but they may offer similar services. For instance, a non-bank lender may offer mortgage loans. Or a non-bank financial institution may offer investment products involving real estate, cryptocurrency, or other alternative asset classes.  Typically, these companies are set up to offer a specific type of service, often in a unique way that standard banks do not offer. In some cases, the company may partner with actual banks to offer select services.  Take Mos, for example. Mos is not a bank, but we’re partnered with Blue Ridge Bank. Mos offers the technology that powers the Mos app, debit card, and juicy perks for students—but Blue Ridge Bank offers the behind-the-scenes banking functionality.  Mos is able to offer awesome perks that standard banks don’t offer. Mos is built for students and offers perks like help finding scholarships, cash back rewards, and much more.  How to find a bank  Whew, that’s a lot of information! To sum up, how should you go about finding a bank?  Here’s the breakdown. First, consider the features and account types you need. This will help you narrow down your selection of banks to choose from.  Then, consider whether you might qualify for a specialty account. Are you a student or a veteran? Are you over age 65? If so, you may qualify for an account with special perks.  Next, determine whether or not you want access to physical bank branches. If you do, this will eliminate online banks from consideration.  Then, consider for a moment your future needs. Does the bank provide what you need now and what you might need over the next several years? For instance, do they offer mortgage loans?  Finally, start narrowing down your options to find the right fit for you. Once you’ve narrowed it down to 2-3 options, you can closely compare them side by side. You can also check online reviews to see what other people think about each bank.  Don’t forget to consider fees! Before making your final decision, it’s important to carefully consider the impact of fees.  All banks have fees for some things, like overdrafting your account. However, other types of fees, like account maintenance fees, are avoidable.  Many large banks charge monthly maintenance fees just to have an account open. For instance, a bank may charge $5 per month for a savings account.  While $5 per month might not seem like much, it’s quite likely that this fee will more than outweigh the interest you earn on the savings account. And over time, these small fees can really add up!  Remember, when you deposit money with a bank, you’re doing them a favor! After all, they can then use your money to issue a loan, which helps them make a profit. You shouldn’t need to pay a monthly fee for banking services!  Wrapping up Finding a new bank is all about closely considering what you need in a bank and then actively looking for a bank that fits your needs. It’s best to find a bank with no monthly fee that offers all the services and features that you want.  If you’re a student, check out the Mos debit card. Mos is designed specifically for college students and offers a fee-free banking solution with cash back rewards, access to scholarships, and much more. 

Finding the right bank for you is an important step for your personal finances. Here’s what you need to know about finding a bank.

A complete guide to finding the right bank

Virginia Commonwealth University was founded in 1838 as the Medical College of Hampden-Sydney and later the Medical College of Virginia. It took the name Virginia Commonwealth University in 1968 when it merged with Richmond Professional Institute. As a public university, it keeps costs low for Virginia residents who are interested in its more than 200 different degree programs. If you think VCU might be the right college for you, we’ll tell you everything you need to know about how you can afford the cost of attendance. A snapshot look at Virginia Commonwealth University  VCU is a public research university with a focus on health sciences. Its mission is to benefit the community through “real-world learning that furthers civic engagement, inquiry, discovery and innovation, research that expands the boundaries of new knowledge and creative expression and promotes translational applications to improve the quality of human life, and interdisciplinary collaborations.” Though the school may have begun with a focus on the health sciences, students can also study many other topics, including business, accounting, art history, cinema, and more. Students in every subject area can benefit from the school’s research focus and can expect to receive a top-notch education. Outside of classes, VCU offers an exciting campus in Richmond, Virginia, the state's capital. Students can explore the city or get involved with one of VCU’s hundreds of student organizations and sports teams. The school is also located a less than two hour drive from Washington D.C. the capital of the United States. That means students can easily access the capital’s museums, culture, and entertainment. Ranking: 172nd in National Universities Size: 21,943 Demographics: 40% male, 60% female Acceptance rate: 86% Average GPA of accepted student: 3.70 Key dates and deadlines (2022): Application: January 15th Financial aid deadlines: February 1st A look at scholarships offered by Virginia Commonwealth University Unless you’ve been living under a rock, you won’t be surprised by the fact that paying for college is hard. A degree can easily wind up costing $100,000 or more, so many people and families spend decades trying to save up enough money to pay for school. If you find yourself looking for extra money to pay for college, the best thing you can do is try to earn scholarships. Scholarships are free money that you can put toward your tuition and other educational expenses. Best of all, you don’t have to pay scholarships back after you graduate. There are all sorts of scholarship programs out there that offer awards for everything from getting good grades to being good at sports. You can also win scholarships based on art, essay contests, or other specific interests. VCU’s financial aid office has a web page dedicated to the different scholarship programs available to students. One important note is that while the application deadline at VCU is January 15th, the financial aid office has additional scholarship programs available to students who apply by November 1st. Outside of the scholarships that VCU awards, you can also apply to scholarship programs operated by businesses and community groups. Many organizations offer scholarships ranging from a few hundred to a few thousand dollars, and every little bit helps. 
With some searching, you can find scholarships for almost anything you can think of. Earning scholarships is the best way to pay for school, so you should try to maximize how many you earn. Read our financial aid tips and tricks for more resources on earning scholarships and other college funds. Student loans Scholarships are, by far, the best way to pay for college, but not many people receive enough scholarship funds to pay for the entirety of their education. If you need more money to pay for school, the next best thing to do is start looking for student loans. Loans have an obvious drawback: you have to pay them back, plus interest. However, they can be an important tool if you want to invest in your education. Just like for scholarships, VCU’s financial aid office maintains a page outlining the different loan programs that are available to students. The best student loan program is the Federal Direct Loan Program. As its name implies, these loans come directly from the United States government. There are 2 types of loans offered by the government: subsidized and unsubsidized. Subsidized loans are the better of the 2. With these loans, the government will cover the interest while you remain in school. With unsubsidized loans, interest starts building up right away, making unsubsidized loans more expensive. Once you’ve maxed out your government loans, you may still need more money to pay for school. If you find yourself in this position, the next step is to start applying for private student loans. Private lenders include banks, credit unions, and other companies offering college students loans. These can help you pay for school, but they’re not as good as federal loans. Private student loans tend to have higher interest rates, making them more costly. They also lack perks and protections like loan forgiveness and income-based repayment. Before you consider applying for private student loans, you should max out your government loans. If you’re thinking about getting loans to pay for college, it’s important to understand how they work. You can read our article on student loans, where we break it down. FAFSA When it comes to receiving financial aid to pay for college, the most important thing you can do is submit the Free Application for Federal Student Aid (FAFSA). The FAFSA is a financial aid application that the government and most colleges across the United States use to determine how much aid students will receive. To fill out the FAFSA, you’ll have to sit down with your family and fill out some information about your financial situation. This includes things like your family’s annual income and how much money your family has saved for college. The information you provide will help the government calculate your expected family contribution (EFC) to the cost of your education.  To determine your total financial need, subtract your EFC from your school’s cost of attendance. The higher your financial need, the more need-based financial aid you can expect to receive. However, keep in mind that most colleges do not commit to meeting 100% of their students’ financial needs. That means you’ll need to come up with the remaining funds some other way. The FAFSA process starts on October 1st of the year prior to the academic year in which aid is awarded. That means that you can apply for aid for the 2023-2024 school year starting in October 2022. The FAFSA deadline is the last day of June. However, VCU has a deadline of February 1st, so it’s in your best interest to fill out the form as soon as you are able to. Some programs award on a first-come, first-served basis and award until the money runs out. 
Filling out the FAFSA can take some time, so prepare yourself by learning more about how long it takes to complete the FAFSA. Virginia Commonwealth University financial aid FAQs  We’ll answer a few more questions you may have about getting financial aid at VCU. What is Virginia Commonwealth University’s cost of attendance? VCU is a public school, so its cost of attendance is different for residents and non-residents. Virginia residents will pay $27,932 to $36,454, depending on their living situation. Of that amount, $15,642 is tuition. Non-residents pay an additional $21,946 in tuition, making their cost of attendance range from $47,118 to $56,640. Can students from out-of-state get financial aid? Yes, out-of-state residents are eligible to receive financial aid at VCU. However, there may be fewer aid options available and students who come from outside Virginia can expect to pay a higher tuition. How many students get a full ride? VCU does not publish the number of students that get a full ride at the school. At VCU, 59% of students receive some form of need-based financial aid, with the average need-based award totaling $12,152. Can graduate students receive financial aid? Yes, VCU offers a variety of financial aid options to graduate students, including assistantships, fellowships, and scholarships. Financial counselors at the office of Student Financial Services are available to assist graduate students in understanding their options for financial aid. What is the financial aid application process? The application process at VCU starts with filling out the FAFSA. Undergraduate students should complete the FAFSA by February 1st to ensure that they are eligible for all forms of financial assistance at VCU. Can international students receive financial aid? Yes, international students are eligible for some forms of financial assistance at VCU. Certain programs, such as federal student loans, are only available to eligible students from the United States. What scholarships can prospective students earn? Incoming students who apply by February 1st can receive valuable scholarships, including the Presidential, Provost, or Deans’ Scholarship. These awards cover between $8,000 and $16,000 of tuition each year, with the Presidential Scholarship also covering room, board, and some fees. Are there special scholarships for current students? VCU offers specific scholarship opportunities to incoming and transfer students, but current students can also apply for scholarships directly from their academic department. Does VCU consider my financial circumstances when awarding aid? Yes, VCU participates in a variety of grant programs and offers scholarships and other forms of need-based aid. If your financial circumstances make it difficult to afford a college education, VCU may be able to offer sufficient aid to make a degree affordable. Universities like Virginia Commonwealth University that you might be interested in If you’re interested in going to VCU but aren’t sure whether it’s the right choice for you, consider these alternatives. University of Virginia The University of Virginia is one of the top-rated public universities in the world, making it an appealing option for students from Virginia who want a world-class education at a reasonable cost. 
Founded in 1819 by Thomas Jefferson, the University of Virginia aims to “advance human knowledge, educate leaders and cultivate an informed citizenry.” 
Students at the university can select from hundreds of degree programs across the university’s more than a dozen schools. There is also a thriving campus life where students can join some of the hundreds of student organizations or enjoy UVA’s athletic programs. William & Mary William & Mary is a public university located in Williamsburg, Virginia. The school heavily focuses on research and has a storied history that runs from its founding in 1693. The school is the second-oldest institution of higher education in the United States. Despite its pedigree and the top-notch education William & Mary offers, it keeps costs relatively low for residents, boasting a cost of attendance of $40,824 for in-state students. James Madison University James Madison University is the newest school on this list. Founded in 1908, JMU is a public university located in Harrisonburg, Virginia. The school boasts many accolades, including rankings as the #2 public university in the South and #1 most innovative university in the South, according to the U.S. News & World Report. Students at JMU can benefit from the school’s low student-to-faculty ratio of 16, average class size of 25, and the large number of athletic and student organizations that operate on campus. JMU also keeps costs very low, with a total cost of attendance of just $24,816 for in-state students. Conclusion  VCU is a school with history and many firsts to its name, including being the first school of social work and participating in the first organ transplants in Virginia. If you’re interested in a public university that has a history of being on the cutting edge, you might be interested in Virginia Commonwealth University. Paying for college isn’t easy, but the good news is that Mos can help. With Mos, you can get help receiving more financial aid, applying for hundreds of scholarships and grants, and writing scholarship essays to help you earn extra funding to pay for tuition. Why not get started today?

Read all about financial aid at Virginia Commonwealth University, including scholarships, loans, and grants.

Virginia Commonwealth University financial aid: a complete guide

College is one of the best times to learn money management. Your finances are simple, and there’s a good chance you don’t have a lot of responsibilities. One of the first things that hits you when organizing your personal finances is the hard reality of bills. Rent, utilities, food, and other expenses never truly go away. These are known as recurring expenses because they happen regularly, and most of them make up the core of your budget. Below, we’ll explain recurring expenses in detail and discuss a few types you need to know. What are recurring expenses? Recurring expenses consist of any spending you have to do regularly. This can happen daily, weekly, monthly, or even yearly. For example, do you have a Netflix subscription? That’s a recurring expense because you have to pay for it each month. Food is another example. Your grocery bill may change at each store visit, but it’s recurring because you have to buy groceries regularly to eat and get other household essentials. Recurring vs. non-recurring expenses As we discussed, recurring expenses happen regularly. They can be fixed and automatically billed, but not always. Non-recurring expenses are just the opposite. These are one-off expenses that you don’t expect to make regularly. That doesn’t mean non-recurring expenses only happen once. It just means you don’t pay for them on a predictable basis. For example, purchasing a new pair of pants is not necessarily a recurring expense. Yes, you might buy more pants in the future—but you don’t buy new pants at regular intervals like you would food. Mandatory fixed recurring expenses A fixed expense is any expense that doesn’t change from month to month.  Mandatory fixed expenses are those that you have to pay to live. Without them, you’d be unable to survive, or you’d deal with a lot of hardship. Below are several of the top mandatory fixed recurring expenses you might deal with as a college student and beyond. Housing Many people find housing to be their largest recurring expense, whether that’s room and board, rent, or a mortgage.  Other expenses may be involved. For example, renters may have small fees attached to their rent. Meanwhile, homeowners may owe mortgage insurance, property taxes, and homeowners association fees. You must pay to keep a roof over your head, making these mandatory recurring expenses. Fortunately, they’re fixed—you know exactly how much you’ll pay each month.  Car payment How do you get to class, club meetings, intramural games, and work? If it involves financing or leasing a vehicle, you’ll pay a fixed amount to keep driving that vehicle. Your auto payment costs can blur the lines between mandatory and discretionary.  For example, buying a used economy car to keep your car payment low would most likely count as a mandatory expense. However, if you stepped up to something luxurious or sporty that goes beyond the basics of “Point A to Point B safely,” your automobile may fall partially into discretionary spending. Insurance Several forms of insurance are required either by law or necessity. For example, you generally need car insurance to operate your vehicle on the road legally. Other insurance types, like health insurance, aren’t mandatory by law. But without health insurance, an illness or injury could indebt you for a long time. Regardless, insurance premiums generally don’t change from month to month. Thus, insurance is a mandatory fixed recurring expense. That said, optional insurance types, like life insurance, may also fall under this category once you sign up for them, because you have to keep up on payments to maintain the coverage and benefits. Minimum debt payments Credit cards and loans demand a minimum payment each month. You can pay as much as you want, but you only have to meet that minimum to avoid late fees and damage to your credit score. Because of this, the minimum required payments on each of your debts are considered mandatory fixed recurring expenses. For example, say you put a $500 balance on your credit card each month, and the card requires a $25 minimum payment. Your mandatory fixed recurring expense here would be that $25 payment. Only paying the minimum amount will likely mean you’ll pay a lot in interest and it will take a long time to clear your balance. For this reason, anything beyond the bare minimum could be considered an “investment”, and you’ll learn why in the next section. Mandatory variable recurring expenses Some expenses are necessary to live but may change every month. These are called mandatory variable recurring expenses because, well, they vary. Let’s look at a few of these below: Utilities Utilities are necessary to live, and the most prominent ones—gas, electricity, and water—fluctuate from month to month for many.  For example, your electric bill could be lower in the fall than in the summer because you need less air conditioning. Even so, you can nail down relatively predictable utility bills after living somewhere for a while and getting used to how much of a specific utility you need. Note that some utilities may be fixed. For example, many Internet plans charge a fixed amount every month. You may exclude this from utilities in your budget if that’s the case. Groceries You have to eat and get other household essentials. The amount of food and other items you buy can change each month, though, making your grocery bill a mandatory variable recurring expense. Transportation Your car loan or lease payment is fixed, but things like gas and routine maintenance can change. These expenses are mandatory and recurring but variable. Some people may skip car ownership or leasing entirely and use public transit or ridesharing services. If you pay for either of these, you still have mandatory recurring transportation costs. These costs are variable as well. Saving and investing Ok, saving and investing are not technically expenses. But they kind of are — when you set aside some of the money you make for the future, you’re “spending money” to pay yourself. Saving and investing provides reassurance for future you. For some students this might be an expense too far. They need to prioritize living expenses in the here and now rather than taking care of their future self.  For others, saving a little each month is possible. The recurring expense then becomes a small deposit into a savings or investment account from your checking account. 
Any debt payments over and above the minimum can also be considered an investment.  If you have debt, like credit card or student debt, you’re likely paying interest on the balance each month. Making larger payments than the minimum means you get out of debt faster. Getting out of debt faster means you pay less interest.  Instead of earning a return on your investment, you’re saving money on your debt. They’re two sides of the same coin. And both mean you end up with more in your pocket. For example, say you owe at least $300 per month to stay on track with your college debt payments. But you got an excellent salary out of college, so you can pay $400 per month comfortably. The first $300 is the minimum, a mandatory fixed recurring expense. The extra $100 could be considered “savings/investing.” Discretionary recurring expenses Most of your recurring expenses are needs. They’re the expenses you need to keep paying to survive. But some of your recurring expenses are discretionary. Or, in other words, they’re wants.  Like your mandatory expenses, they can be fixed or variable. Here are a few types of discretionary recurring expenses: Subscription services Subscription services are generally discretionary expenses. You don’t need that Netflix account or skincare subscription box—these are wants.  And yet, you pay for them on a monthly basis. So they are recurring expenses.  These are generally fixed since you’re buying a set level of goods or services every month. Memberships Memberships are recurring expenses. If you fail to pay, you lose your membership. As a student, your memberships likely include club or fraternity/sorority dues. You might also have a gym membership if there is no gym on campus or if it isn’t free for students. Outside of that, you could hold membership in networking and professional groups that require a fee.  Regular “fun” purchases Any other fun purchases that happen on a regular basis can be recurring expenses, although this can vary between people.It If you love to ski, then maybe your regular “fun” purchase is your annual lift pass. Football fan? Maybe season tickets for your school’s games is your recurring “fun” expense instead. These are obviously different for each individual, so won’t appear in every budget. Recurring expenses are vital but never-ending Recurring expenses are central to your budget because you need to make sure you can pay them every month. Some are mandatory, like housing. But many are flexible, and with some planning, you can cut back on those expenses without making life miserable. Learning how to manage recurring expenses early on will pay off later in life when you have more to deal with—like, you know, student loans. 
Want more tips for managing your money as a student? Check out these tips for creating a college budget.

Some expenses last a long time, or even for life. These are recurring expenses. Discover how recurring expenses work and learn the major types.

A college student’s guide to recurring expenses

Originally founded in 1838 as a preparatory school for young men, Duke is a well-known university located in Durham, North Carolina. The school offers a variety of academic programs, including 53 majors, 52 minors, and 23 certificates, letting students choose from 437,989 different academic combinations. If you’re considering applying to Duke but think you’ll need help covering tuition, we’ll break down what you need to know. A snapshot look at Duke  Duke is a moderately-sized school, home to 6,789 undergraduate students and nearly 10,000 graduate and professional students. Since its founding, the school has sought to “provide real leadership in the educational world’ by choosing individuals of outstanding character, ability, and vision.” Duke aims to provide its students with a liberal arts education that helps prepare them not only for their future careers but for their futures as participants and leaders in their communities, open to constant learning and intellectual growth. Students who are dedicated to keeping an open mind can excel at the school. That open-mindedness is shown in the fact that students can create more than 400,000 academic specializations from the school’s degree program options. Students can be assured of a strong education at the school. Outside of class, students can join one of the university’s hundreds of student organizations or participate in NCAA Division I sports. Ranking: 9th in National Universities Size: 6,789 Demographics: 50% male 50% female Acceptance rate: 9% Average GPA of accepted student: 3.94 Key dates and deadlines (2022): Application: January 3rd Financial aid deadlines: February 1st A look at scholarships offered by Duke For many people, a college education is one of the most expensive things they’ll ever pay for outside of a house. Paying for college is tricky, so you’ll need all the help you can get. Some families save to help pay for their kids to go to school, but it’s difficult to save enough to pay for all 4 years of college. If your family’s savings aren’t enough to pay for school, the best way to fund your education is through scholarships. Scholarships are like free money you can put toward tuition, fees, and other costs. Best of all, you don’t have to pay them back like you would if you got a student loan. There’s a huge variety of scholarships out there. Some are available based on athletic skills. Others are awarded for good grades or specific achievements. You can even win some based on the luck of the draw. Duke University’s financial aid office has a webpage outlining the scholarship programs available. All students are automatically considered for these scholarships. However, the prestigious Robertson and Nakayama Scholarships have individual applications that students must fill out. Some of these scholarships can award a full ride, so it’s worth trying your hardest to earn a scholarship. If you’re looking for other opportunities to get college funds, don’t forget to check in your community. Many businesses and community organizations have scholarship programs that you can apply to. These programs can award hundreds or thousands of dollars and focus on all sorts of things. With enough effort, you can find scholarships for almost everything. Scholarships are the best way to pay for college, so do your best to max out the awards you earn. Read our financial aid tips and tricks for more resources on earning scholarships and other college funds. Student loans Scholarships are the best way to pay for school, but it’s hard to earn enough scholarships to be able to pay for an entire degree. If you need more funding, the next best thing to do is apply for a student loan. Student loans let you invest in your education, but they have an obvious drawback: they’re loans. You have to pay the money back, plus interest, once you finish school. Duke’s financial aid office has a web page describing the different loan programs that students can take advantage of. Of the loans available to most students, the best program is the Federal Direct Loan Program. These loans come from the United States government in two different forms: subsidized and unsubsidized. If you get a subsidized loan, you don’t have to worry about interest building up while you’re still in school. The government covers the interest while you’re still studying. With unsubsidized loans, interest accrues right away. 
That means that subsidized loans are the better of the two. If your federal student loans don’t get you the rest of the way to paying your tuition, you can also consider applying for private student loans. These loans come from banks, credit unions, and specialized lenders who want to help students fund their education. There are, however, significant drawbacks to private loans. They tend to have higher rates than federal loans, making them more expensive. They also lack benefits such as income-based repayment and loan forgiveness. Ultimately, it’s best to max out your federal loans before you start applying for private student loans. Borrowing money to pay for college is common, but it’s important to understand what you’re getting into. You can read our article on student loans, where we break it down. FAFSA  Because college is so expensive, every last dollar of aid that you can earn is important. The number one thing you can do to get more financial aid is complete the Free Application for Federal Student Aid (FAFSA) each year you plan to attend college. The FAFSA is a financial aid application that the federal government and most colleges around the US use to decide how much need-based aid you’ll receive. To fill out the FAFSA, you’ll have to sit down with your family and answer some questions about your financial situation. That can include things like your family's income and how much money you have saved to pay for college. Based on the information you provide on the FAFSA, the government calculates your expected family contribution (EFC) to the cost of your education. When you choose which college to attend, you can calculate your financial need by subtracting your EFC from the cost of attendance. The greater your financial need, the larger your financial aid package should be. You’ll receive more need-based aid, such as scholarships, grants, and subsidized loans. While you usually have to keep in mind that most colleges do not guarantee that they will meet 100% of their students’ financial needs, Duke breaks the mold. Duke’s financial aid office meets 100% of demonstrated need for undergraduates, awarding more than $130 million in grants each year.  You can start filling out the FAFSA on October 1st for financial aid awarded in the next academic year. That means that the FAFSA for the 2023-2024 academic year opens on October 1st, 2022. The application closes on June 31st. However, North Carolina has some state-based programs that award money on a first-come, first-served basis until the funds run out. That means that filling out the form as soon as possible can help you earn additional aid. The FAFSA can be a bit complicated if you’ve never filled it out before, so prepare yourself by learning more about how long it takes to complete the FAFSA. Duke financial aid FAQs  We’ll answer a few more questions you may have about getting financial aid at Duke. What is Duke’s cost of attendance? Duke is a private university, which means it can be a bit more expensive than public colleges. Its cost of attendance is $79,469, $60,489 of which is tuition. Can out-of-state students receive financial aid? Yes, out-of-state students at Duke are eligible to receive financial aid. The school isn’t a state school, which means out-of-state students pay the same tuition and fees as residents. How many students get a full ride? Duke does not publish the number of students that receive a full ride at the school. However, it has published the fact that 43% of incoming students received need-based aid in 2019 and that the average need-based aid was $51,332.  When will I receive my financial aid award? Duke will apply your financial aid award to your student account a few business days before each semester begins. Before you receive your aid, you must have completed all required applications and provided the required documentation and information. Can a graduate student receive financial aid? Yes, you can receive financial aid if you are a graduate student at Duke University. There are scholarships, loans, and stipends available, as well as the opportunity to work as teaching assistants or in a fellowship to help pay for school. How can my financial aid counselor help me? Each student will have a financial aid counselor who is available to meet online or in person. Your counselor can help outline your options for paying for school and answer any questions about different loans and scholarships you’ve received. Can international students receive financial aid? Yes, international students at Duke can receive financial aid. This can include merit-based scholarships as well as need-based financial aid. You do not need to be a citizen or permanent resident to be eligible. However, international students may face some restrictions. For example, international students who do not have a work authorization in the United States cannot receive work-study aid. Universities like Duke that you might be interested in  If you’re interested in Duke University but don’t know whether it’s right for you, consider these alternatives. University of North Carolina, Chapel Hill If you like the idea of going to school in North Carolina but find that Duke is too expensive, you might be interested in UNC-Chapel Hill. As a state school, UNC Chapel Hill keeps tuition low for residents of North Carolina. Tuition for residents is just $7,020, and the total cost of attendance for those who live on campus is $25,258, less than half of what is charged at Duke. However, that lower price doesn’t mean a sub-par education. UNC-Chapel Hill is rated number 28 nationally by US News & World Report, and the school is well-known for its research programs and status as a “public ivy.” Wake Forest University Wake Forest is another North Carolina-based private university. Like Duke, the school is known for its academic excellence. It also has strong research programs for students to participate in. Athletes may be interested in Wake Forest due to the NCAA Division I sports programs. As a private school, Wake Forest also has a relatively high cost of attendance. Tuition is $62,128, and the overall cost of attendance is just over $83,000 per year. Yale University High-achieving students who want a top-notch education may be interested in Yale University, located in New Haven, Connecticut. A member of the prestigious Ivy League and the third-oldest university in the United States, Yale will provide students with a world-class education and access to a powerful alumni network. On top of the great academics, students at Yale get to participate in a vibrant student life that includes hundreds of student organizations and sports teams. Conclusion Duke is a school with a strong reputation and a large campus that is home to vibrant student life. If you’re looking for a school that provides a high-quality education while letting you enjoy things like Division I sports and a variety of educational tracks, Duke might be the school for you. Paying for college can be hard, but Mos is here to help. With Mos, you can get assistance negotiating for more financial aid, applying for hundreds of scholarships and grants, and writing scholarship essays to help you earn extra money to pay for tuition. Why not get started today?

Read all about financial aid at Duke University, including scholarships, loans, and grants.


Duke financial aid: a complete guide

California State University, Northridge, is a public university located in the San Fernando Valley in California. With a student body of more than 38,000, it has a large, vibrant campus that gives students easy access to one of California’s largest cities, Los Angeles. If you’re a high school student and are thinking about applying to CSUN, you might be wondering how you can afford tuition. We’ll break down what you need to know. A snapshot look at California State University, Northridge  California State University, Northridge is one of the 23 campuses in the California State University (CSU) system. Founded in 1958, the university has served students from Los Angeles and across California. The school has grown from using portable classrooms on former agricultural land to graduating more than 11,000 students a year and boasting an alumni network of more than 370,000. Students at Cal State Northridge can expect strong academic programs at a reasonable cost, thanks to the school’s status as a public university. Undergraduate students can choose from 68 degree programs, while graduates can choose from 58. The school also offers 2 professional doctorate degrees and 14 teaching credential programs. Outside of class, students can explore the San Fernando Valley or nearby Los Angeles. There are also plenty of clubs and sports for students to get involved in, such as the student radio station, 88.5 FM, the Daily Sundial student paper, and 270 student clubs, fraternities, sororities, and other organizations. Ranking: 39 in Regional Universities West  Size: 38,310 Demographics: 46% male, 54% female Acceptance rate: 51%  Average GPA of accepted student: 3.35 Key dates and deadlines (2022) Application: November 30 Financial aid deadlines: March 2 A look at scholarships offered by California State University, Northridge It’s no secret that it can be hard to pay for college. Tuition is expensive, and you also need to find a way to pay for your living expenses while in school. Many families spend years trying to save for their kids’ educations and find themselves with less than they need. If you find yourself needing more funds to pay for school, the best thing you can do is try to earn a scholarship. The reason scholarships are the best way to pay for school is that they’re like free money. You get funds from the scholarship organizer, and you don’t have to pay them back like you would with a student loan. There are all sorts of scholarships out there. Some are based on academic merit or athletic skills, while others are based on financial need or simply getting lucky and winning a drawing. CSUN’s financial aid office has information about both on-campus and off-campus scholarships that students can apply for, helping them find opportunities to get college funds. One important program for California students to know about is the Cal Grant program. This program provides residents with grants to attend state schools like CSUN. Beyond state grant programs and scholarship aid you receive from the university, you can also look for scholarship opportunities from outside CSUN. Many businesses, community organizations, and other groups offer scholarship programs. With some careful searching, you can find a scholarship for almost anything you can think of. If you’re looking to maximize your financial aid, check out our financial aid tips and tricks page for more resources on earning scholarships and other college funds. Student loans Once you’ve earned as many scholarships as possible, the next best place to get money for college is student loans. Student loans have a major drawback compared to scholarships—you have to pay them back eventually, plus interest. However, the cost of getting a loan can be worth it if you consider your education and investment in your future. Like scholarships, CSUN’s financial aid office has a web page outlining the different student loan programs that are available to its students.  For most students, the Federal Direct Loan Program is the best loan option out there. As the name implies, this program gives students loans directly from the United States government that come in 2 forms: subsidized and unsubsidized. Subsidized loans are preferable by far because the government pays the interest while you’re in school and during grace periods. Unsubsidized loans let interest start building up right away, making them more expensive. 
California also has a state-based loan program called the California Dream Loan. This program provides students who graduate from California high schools with the option to borrow up to $4,000 per year. If government loans don’t provide you with enough financial assistance to cover your college costs, you may want to consider private lenders (this should be a last resort for most people). Many banks and specialized lenders offer student loans. However, private loans tend to be more expensive than government loans. They also lack options like interest subsidization, income-based repayment, and loan forgiveness, meaning you should typically max out your government loans before getting private loans. If you’re thinking about getting loans to pay for college, it’s important to understand how they work. You can read our article on student loans, where we break it all down (and in plain English, not banker or bureaucrat jargon). FAFSA  If you need financial aid to help pay for college, filling out the Free Application for Federal Student Aid (FAFSA) is the first step you should take. 
The FAFSA is a comprehensive financial aid application the federal government and most colleges and universities use to make decisions about the financial aid that you require (and ultimately receive). Based on the information you provide, you might receive student loans, grants, and scholarships. The FAFSA involves sitting down with your family and providing some information about your finances, such as your annual income and how much money you have saved for college. A government body will calculate your expected family contribution (EFC) to the cost of your college education based on the information you provide. The difference between your EFC and the cost of attendance at your school is your total financial need. Your financial need plays a role in determining what need-based financial assistance, such as subsidized loans and need-based grants or scholarships you receive.  Most schools don’t guarantee they’ll meet all their students’ financial needs, so you have to look out for yourself. You’ll have to come up with the remaining funds through loans or other methods. FAFSA applications open up on October 1st for financial aid awarded in the next academic year. For example, you could apply on October 1st, 2022, for aid awarded in the 2023-2024 academic year. You can submit the application anytime through the end of June. However, California has a March 2nd deadline for many of its state programs, and some programs offer awards on a first-come, first-served basis. That means it’s in your best interest to submit the FAFSA as soon as you’re able to. Filling out the FAFSA can take some time, so prepare yourself by learning more about how long it takes to complete the FAFSA. California State University, Northridge financial aid FAQs  We’ll answer a few more questions you may have about getting financial aid at CSUN. What is California State University, Northridge’s cost of attendance? The cost of attendance for in-state undergraduate students living on campus at CSUN is $23,782. Of this amount, $7,064 covers tuition, and $11,848 goes toward room and board. Out-of-state students pay an additional $396 per unit taken at CSUN, adding $11,880 to their costs, making the total cost of attendance for out-of-state students $44,596. Can out-of-state students receive financial aid? The short answer is yes; students from out of state are eligible to receive financial aid at CSUN. However, they will not be eligible for programs designed for California residents, such as the Cal Grant or CA DREAM Loan program. How many students get a full ride? CSUN does not publish numbers for how many students receive a full ride at the school. However, 82% of full-time undergraduate students receive some amount of need-based financial aid. The average student who gets a need-based award receives $17,240. When will I know my financial aid awards? CSUN’s financial aid office reviews financial aid documents in April and May before sending out financial aid awards. Continuing students will receive notification of their financial aid eligibility and the awards they receive in June. Funds are paid out 10 days before the beginning of the semester. What types of aid can I get from CSUN? CSUN offers many types of aid to its students. You can receive both need and merit-based scholarships as well as grants. You can also receive grants and loans from the federal and state governments. Can I receive a federal grant at California State University, Northridge? Yes, students at Cal State Northridge can receive federal grants as a portion of the financial aid funds that they receive. There are also many other financial aid programs available, including school-specific, state, and government programs. Are there any ways to reduce student costs? Students looking to reduce their cost of attendance may be able to do so by staying on-campus instead of in more expensive off-campus apartments or by living with their parents to reduce the cost of room and board.  Less-than-half-time students also pay reduced tuition, so you may save money by taking fewer classes. Universities like California State University, Northridge that you might be interested in  California State University, Northridge, is just one option if you’re looking for an inexpensive school that provides a great education. If you’re thinking about applying to CSUN, consider these alternatives too: University of California The University of California system is another group of public universities in the state. The system offers 160 major and more than 800 degree programs across its 10 campuses, such as UC Davis, UC San Diego, UC Irvine, and UCLA. As a public university system, the University of California keeps costs low for its students, 83% of whom come from California.  If you’re interested in a public university but don’t think CSUN is the right choice for you, the University of California is worth considering. San Diego State University San Diego State University (SDSU) is another public university located in California. Like CUSN, it keeps costs low for in-state students while offering a strong educational experience. Located just 30 minutes north of the US-Mexico border, SDSU is well known for its diversity, equity, and inclusion practices. As a federally-designated Hispanic-service institution, more than half of the student population are students of color, and SDSU is a top-ranked college for LGBTQ+ students. With more than 100 degree programs to choose from and an NCAA Division I sports program, SDSU offers a lot for students who want strong academics and a vibrant student life. Stanford University Stanford is one of the world’s top research universities. Located in the San Francisco Bay Area, the school gives its students easy access to one of the United States’ top tech hubs and has a reputation for entrepreneurship plansand innovation, with student startups frequently receiving funding. Stanford isn’t a public university, which means it will be a bit more costly than a school like CSUN. However, it can be well worth the cost for enterprising students who want to be a part of cutting-edge research and who aim to make a difference in the world. Conclusion CSUN is a public university located on the edge of Los Angeles. As a public school, it offers students from California a quality education at a relatively low price.  If you’re looking for a vibrant campus in the city, CSUN might be the right school for you. If you’re looking for the best way to pay for higher education, Mos can help.  With Mos, you can get access to fee-free banking for students, a debit card with cashback and other rewards, along with personal assistance applying for financial aid, and a streamlined application to 100s of grants and scholarships with ease. To get started, check out Mos today.

Read all about financial aid at California State University, Northridge University, including scholarships, loans, and grants.

California State University, Northridge financial aid: a complete guide

Most of us have several cards in our wallets—debit cards, credit cards, library cards, and that random old bus pass from years ago!  When it comes to personal finances, the 2 most common types of cards are credit cards and debit cards. Both allow you to make purchases—but there are some crucial differences between the 2 to consider.  In this detailed guide, we’ll cover the differences between credit cards and debit cards, from the basics to more nitty-gritty details.  Credit card basics Credit cards are cards that allow you to borrow funds to pay for goods and services. When you use a credit card, you are using borrowed money. This money must be paid back—with interest.  If you pay the card off in full by the due date, you won’t pay any interest. But if you carry a balance and pay the charges off over time, interest costs will begin to accrue.  Interest is simply the cost you pay for borrowing the money. It’s measured in annual percentage rate, or APR.  For example, a credit card may have a 15% APR. That means that if you make a $100 purchase today, and pay it off 1 year later, you will pay $15 in interest (15% of $100). This is a simplified calculation used to illustrate the basics of interest.  Because credit cards allow you to borrow money, you must apply for them and be approved by a bank or credit union. The bank will look at your credit history—like your history of payments on student loans, credit cards, car loans or other forms of debt—to determine your creditworthiness. If they believe you are a trustworthy borrower, they will approve you for a card and give you a credit limit.  This credit limit is the maximum amount you can carry as a balance on the card. For example, if you have a $2,000 credit limit, you can put up to $2,000 in charges on the card.  Your available credit will adjust automatically with each purchase and payment. Your balance will decrease as you make payments, allowing you to spend more.  For example, if you have a $2,000 credit limit and spend $500 on the card, you will have $1,500 in available credit. If you make a $300 payment, you will now have $1,800 in available credit. Advantages of credit cards There are many advantages to using a credit card, particularly for some expenses.  Earns rewards: Many credit cards come with rewards. Cash back credit cards offer cash back on every purchase—1% back, for example. If you spend $100, you’ll earn $1 in rewards that you can redeem later for cash or other perks. For instance, travel cards offer miles or points on every purchase—say, 1 airline mile per $1 spent. These cards allow you to earn free or discounted travel. Flexible spending: Credit cards are a form of revolving credit. You get a maximum credit limit and can spend freely as needed. That provides a lot of flexibility compared to a traditional installment loan.  Builds credit: Using a credit card and making on-time payments can help build your credit. Banks like to see borrowers who actively use credit and make regular payments. There are even credit cards for young adults that are specifically helpful for those who have a limited credit history. No interest if paid in full: Credit cards charge interest, but only if you carry a balance. If you pay off your card in full each month, you won’t owe any interest. This helps you manage cash flow, fund surprise expenses, and make ends meet while you wait for your paycheck. Just be cautious—if you start to carry a balance, interest charges can really add up quickly—20% APR (or more) is a lot!  Perks: Some credit cards offer perks, like rewards, purchase protection, travel benefits, and more. Some luxury cards even offer perks like free rental car insurance or extended warranties on purchases made on the card.  Disadvantages of credit cards But it’s definitely not all rainbows and sunshine when it comes to credit cards—they have some serious downsides. Interest charges: If you carry a balance, credit cards charge interest. And they are one of the most costly forms of debt. The average credit card APR is over 20%, meaning a $100 purchase today would cost you more than $20 in interest per year. Credit card debt can be a vicious cycle that’s tough to escape.  Easy to overspend: Credit cards allow you to spend money that you don’t have. This can be a slippery slope, making it frighteningly easy to get into significant debt.  Annual fees: Many credit cards have annual fees, often $20 to $150 or more. Requires credit history: Getting approved for a credit card requires a reasonable credit score and positive credit history. 
Fees for cash withdrawals: Most credit cards charge significant fees for withdrawing cash from ATMs. Can negatively impact your credit: If credit cards are used irresponsibly, they can negatively impact your credit. Missed payments and carrying too large a balance can damage your credit score.  Debit card basics  Debit cards are directly linked to your checking account. They allow you to spend money out of your bank account or withdraw cash from an ATM.  Because you’re spending your own money, there’s no added cost to use a debit card. You won’t have to pay interest, and there are typically no annual fees—although some banks may charge a monthly fee for a checking account.  Debit cards can be used directly at payment terminals in-store, as well as for online shopping. You can also use them to withdraw cash from an ATM—usually without fees.  Debit cards don’t involve credit at all—so they won’t help you build your credit score. On the positive side, you won’t have to worry about negatively impacting your credit.  Advantages of debit cards Debit cards allow you to use your own money, for better or worse. Here are some of the key benefits of using debit: Keeps spending in check: Because you’re spending your own money instead of borrowed money, it’s more difficult to overspend with a debit card.  No annual fees: Unlike credit cards, most debit cards do not have any sort of annual fee. With that said, some banks may charge a monthly maintenance fee on certain bank accounts.  Available to almost everyone: It’s easy to open a bank account and get a debit card. You don’t need good credit—you’ll simply need a small opening deposit and your personal information. Credit cards, on the other hand, require decent credit and must be applied for. Disadvantages of debit cards  But even a debit card isn’t without disadvantages: No rewards: Most debit cards don’t earn rewards, while most credit cards do. Psst: The fee-free Mos debit card does earn cash back rewards, and is available to students over 16. Plus, Mos provides access to streamlined scholarship applications, expert financial aid advisors, and more!  Higher risk of fraud: If your debit card is lost or stolen, thieves may be able to access the funds in your bank account. Because funds leave your account as soon as they are spent, this can create an issue. In most cases, fraud prevention will still protect you—but you don’t have the same breathing room as with a credit card.  No credit building: Using a debit card will not help you build credit, unlike responsible use of a credit card.  Overdraft fees: Debit cards charge overdraft fees if you spend more than is in your account. For example, if you have $100 in your checking account, and spend $110 at the grocery store, you may incur an overdraft fee. The transaction may or may not go through—this depends on the bank’s policy. Overdraft fees typically cost around $35 a pop.  Credit card vs. debit card Debit cards and credit cards look quite similar, and both can be used to make everyday purchases. Both share similar features, such as: A 16-digit card number Magnetic strips and EMV chips Expiration dates Security codes The ability to make purchases in-store or online The main difference between credit cards and debit cards is where the money comes from.  With a debit card, you’re simply spending your own money directly from your bank account.  With a credit card, you’re borrowing money to make the purchase. You then later pay off the borrowed funds or choose to carry a balance and pay it off slowly over time.  Debt and interest  With a credit card, you are spending borrowed money. This creates debt—and costs you money in interest. A typical credit card may have an APR of anywhere from 15% to 25% or more. The average is over 20%. That means a $100 purchase today would cost you around $120 if you pay it off in 1 year’s time.  Credit card debt can be a slippery slope. Once you go into debt, it can be hard to get out of it. As interest accrues, your balance goes up, creating a vicious cycle.  Despite its downsides, credit card debt is quite common. The average American had nearly $6,000 in credit card debt at the end of 2021. Given the average APR of 20%, that means the average American is spending $1,200 per year on interest alone.  Debit cards, on the other hand, don’t involve debt or interest. They simply enable you to spend your own money out of your bank account.  Purchase protections Both credit and debit cards may have certain forms of purchase protection. These features can help protect you in the case of fraudulent transactions made on your card. In general, credit cards offer superior purchase protection. This is due in part to the fact that credit cards simply give you more time. If a fraudulent transaction is made, the money won’t be immediately drained from your bank account as it would be with a debit card.  Credit cards also allow chargebacks, which is a feature you can use to dispute a charge on your account. For example, if you go to a store and are incorrectly charged twice, you can use a chargeback to request that the credit card company correct the error with the merchant on your behalf.  Some credit cards even offer extra perks, like extended warranties. For example, a card may offer to extend the manufacturer’s warranty on certain purchases.  Debit cards do still offer some level of purchase protection, but in general, credit cards offer greater protection.  Access to cash Both debit and credit cards allow access to cash, but the process is different.  With a debit card, you simply use an ATM to withdraw cash from your checking account. You can also get cash back while making a purchase at a retailer.  With a credit card, you can request a cash advance. This is essentially borrowing cash using your existing credit limit. You will be charged interest starting on day one, and there is often a flat fee as well. Plus, credit cards may charge higher interest on cash advances than they do on standard purchases.  Credit card cash advances can be completed at banks, ATMs, and by using checks provided by the credit card company. Because of the fees and high-interest charges, it’s best to think twice before using a credit card cash advance. Rewards Many credit cards offer rewards for your spending—but most debit cards don’t. Cool news: The Mosstudent debit card gets you cash back when you spend, and it’s available for students 16 and over!. Learn more about Mos here.  For example, a cash back credit card may offer 1% back on every purchase you make. A $10 purchase would therefore earn you $0.10 in rewards. Other cards offer airline miles, hotel points, or other rewards.  Very few banks offer rewards on debit card purchases, so this is one area where credit cards clearly win out.  But just remember: Credit cards charge interest if you carry a balance. There is a reason they offer rewards—you might earn 1% cash back, but don’t forget about the 20%+ interest charge!  Savvy credit card users can optimize their rewards by paying off their cards in full each month. That way, you can earn rewards and not pay any interest—a win-win!  Eligibility and access  Debit cards are easy to get and come with checking accounts. Credit cards must be applied for, and generally require you to have some history of successfully managing loans in the past. Credit cards must be applied for. The bank will review your credit profile to determine if they want to approve you for the card. Each bank has its own requirements in terms of credit ratings, but most cards require at least decent credit scores in the 600s or higher.  Your credit score will also affect the type of credit cards you can apply for, as well as the APR you will be offered. The better your score, the more cards will be available to you—and the lower your interest rate may be.  Finally, credit cards also require income. You will need to list your annual income on your credit card application. Your income will determine your eligibility and how much credit the bank is willing to extend to you.  For example, someone with a low income may receive a low credit limit—$1,000, for example. Or, they may be denied altogether. Someone with a high income and good credit would likely get a much higher credit limit.  Final thoughts The main difference between a debit card vs. a credit card is that debit is used to spend money in your bank account, while credit cards allow you to spend loaned funds. There are pros and cons to each, depending on your approach to personal finance.  For the simplest option, stick with a debit card. You won’t have to worry about accumulating debt, and you can’t spend more than you have. Plus, almost anyone can get a debit card, while credit cards are more exclusive to those with decent credit scores.  If you’re a student looking for a modern banking solution, check out Mos. Mos provides students with zero-fee banking and debit card access, plus cash back, scholarship opportunities, and much more.

Debit cards spend money directly from your bank account, while credit cards allow you to borrow money to make purchases. There are other differences as well.

Credit card vs. debit card: compared and contrasted

This article will discuss all of the essential details of the Minecraft Scholarship, including its eligibility requirements, how you can apply, and how much financial support you can get. We’ll show you some similar scholarships you may be eligible for too. What is the Minecraft Scholarship? The Minecraft Scholarship is an annual scholarship opportunity offered by Apex Hosting, an internet hosting company. It was established 6 years ago to provide scholarships to students who play Minecraft and are interested in technology and how it can be used in education and career development. The scholarship offers a one-time award of $2,000 that you can use during your next semester of college. How to apply for the Minecraft Scholarship Here’s everything that you need to know about the Minecraft scholarship. (Image Source) Eligibility requirements To be eligible for the Minecraft Scholarship, you must meet a few basic requirements. Be a US citizen Have a GPA of 3.0 or higher on a 4-point scale Be currently enrolled in high school or college The application The application for the Minecraft scholarship is incredibly simple. It consists of a single form on the Minecraft Scholarship website. It asks for: Your full name Your Minecraft in-game name Your email address Your current GPA A 500-word essay on “how Minecraft can be a positive influence on education and career development” Because of the simplicity of the application, there’s no reason not to give it a shot. Make sure to put effort into your essay because it’s the primary way you can make your application stand out. Important dates to remember When applying for the Minecraft Scholarship, make sure to keep this date in mind. Application deadline: July 31st Other scholarships like the Minecraft Scholarship If you’re looking for other scholarships that emphasize the importance of fun and technology that you can use to pay for college, consider these opportunities: Amazon Future Engineers Scholarship Superpower Scholarship Equitable Excellence Scholarship Mos can help you get started applying for both government financial aid and scholarships, like the Minecraft Scholarship. Join us now.

The Minecraft Scholarship offers a quick application process and awards $2,000 to a student who understands how technology can influence education.

Complete guide to the Minecraft Scholarship

Most college students could certainly use some extra spending money. Most are also short on time and won’t be able to juggle a traditional part-time job and school.  What are students to do? Passive income for college students may be an option. Passive income is money you can earn without additional effort. Think of it as a way to make money while you do other stuff, like study or sleep. Of course, some ventures are often labeled as passive income but, in reality, require quite a bit of active effort. It’s important to have realistic expectations about passive income opportunities and recognize that, in some cases, simply getting a part-time job may be more effective.  Nonetheless, it’s well worth exploring the various passive income ideas for college students. Here’s what to consider.  What is passive income?  While it may sound to good to be true, passive income is definitely a thing. As we said above, passive income is a great option for busy students because you can snag extra bucks without additional effort. For example, earning dividends from stock market investing could be considered passive income, as could income from a rental property. Unfortunately, these methods are often out of reach on a college student’s budget!  Income from a job is not passive income, as it requires active effort to earn.  Of course, the line between passive and active income is a bit blurry at times. Almost everything requires at least some level of effort. And plenty of “passive” opportunities actually require quite a bit of upfront effort.  For instance, writing a book would require a ton of work—but once it’s published, the income from book sales could be considered “passive” income. As you can see, the definition of this phrase can be different depending on who you ask.  This can also create a bit of a trap for those pursuing passive income opportunities. You might start a blog hoping to earn passive income—but you may need to spend 100s of hours on it before you earn any significant amount of money.  For these reasons, it’s important to weigh passive income opportunities carefully. Are they worth the time and effort? And perhaps more importantly, are they enjoyable?  Passive income for college students  Many of the traditional passive income opportunities require huge upfront investments of time, money, or both. Real estate investments are a common example of how people generate passive income. But unfortunately, these are often out of reach for students.  The best passive income for college students may lie in lesser-known opportunities. Some of these opportunities—like renting textbooks—exist specifically because of college, while others are simply more approachable for students' budgets and time constraints. Below, find some top passive income ideas for college students to drum up some extra money. To earn more, you may consider developing multiple passive income streams.  House sitting House sitting can be a great passive income source for college students. Depending on the situation, it could require very little work or a bit more if pets are involved.  House sitters can typically charge between $25 and $50 per night, and perhaps even more if there are pets. That can quickly add up, with a 1-week house sit racking up between $175 and $350 at those rates.  Finding house-sitting gigs is mostly about word-of-mouth. You could also choose to advertise on local message boards, Facebook groups, or websites like Housesitter.com. The downside of this is that you may need reliable transportation to get back and forth from campus to the house, depending on where it’s located. It’s wise to estimate the amount of time you’ll need to spend on the gig before accepting it and weigh that time against the amount of money you’ll earn.  Selling stock photos and videos If you’re interested in photography or videography, you could opt to sell stock assets online. This involves producing imagery, organizing and tagging each asset, and uploading it to a popular stock photo website.  Websites like iStockPhoto, Shutterstock, and Dreamstime all allow you to sell photos and videos directly to customers. And there are actually dozens of websites where you can list your digital assets.  This is an opportunity that requires a good amount of upfront effort. It’s best for those who have a genuine interest in these hobbies (and the equipment handy already) and for those who already have a library of images built up. A big chunk of the upfront effort is uploading, labeling, and tagging all your images. Once this is done, very little ongoing effort is required (although you may want to keep adding more images as you take them).  Don’t expect to earn a fortune from selling stock photos—but if you’re interested in photography, this is a viable opportunity for earning passive income as a college student.  Affiliate marketing  Affiliate marketing involves promoting various products, services, and courses. You earn a commission when someone buys something or signs up for a free trial.  To make money in affiliate marketing, you need an audience. This could be from your blog, YouTube channel, email newsletter, or even paid advertising.  For example, you could start a YouTube channel about hiking. In the video description box, you could include affiliate links to hiking gear on Amazon, and you’d earn a small commission if someone clicks on your link and buys something.  The upfront effort involved in affiliate marketing can be immense. You will likely need a substantial audience in order to make any sort of real money.  For this reason, this is mostly recommended if your dream job is in an industry where the skills are transferable. If you want to work in travel and hospitality, starting a travel YouTube channel may be enjoyable—and could actually earn you a few bucks on the side, while also looking good on a resume.  Starting a blog  Starting a blog is one way to grow an audience, which you can monetize via advertising or affiliate marketing.  For example, you could blog about rock climbing (or whatever you’re passionate about!) In each post, you could include an advertisement from Google Adsense, which pays you a small amount each time someone clicks on an ad. Or, you could include affiliate links to relevant products (see above).  Blogging can be rewarding, but building an audience takes a long time. You shouldn’t expect to have any sort of significant traffic—let alone profit—in at least the first 6 months.  There are also typically costs involved, like website hosting, a domain name, etc. You can get by on a basic setup with minimal upfront investment (around $50 per year, for example), but it’s still important to be aware of costs before getting started.  Because of the huge upfront effort involved, this is an opportunity that is best reserved for those who are truly passionate about a topic and have a genuine desire to blog about it. Renting (or flipping) textbooks  Buying and renting out textbooks can be a way to drum up some semi-passive income. There are 2 ways to do this: Renting directly to students on your campus Renting online To rent directly, you’ll need to find renters by spreading the word in your classes or posting advertisements on campus. You may wish to buy multiple copies of each textbook in order to improve your profits. To rent online, you can use a platform like Valore to list items. When someone rents it, you’ll ship it directly to them, and they will return it after the designated time period.  Buying and reselling textbooks for a profit could be another angle to consider. For instance, you could speak to fellow students in your class on one of the final days of class to see if they would sell you their textbooks.  Flipping textbooks is simply a matter of buying low and selling high. Start by researching how much used textbooks are going for, either on Amazon or on other third-party marketplaces. Then, subtract the fees you would have to pay for selling on that platform (it’s 15% on Amazon). This will determine your net selling price — now, all you have to do is determine how much profit you wish to make on each book. For example, let’s say a used chemistry textbook is selling for $90 on Amazon. If you list yours at $89 (to be the cheapest option), you’ll pay $13.35 in fees, plus around $5 to ship it. That will leave you with a net income of around $70.65. By offering $50 to students in your class, you can turn a profit of around $20.65 per textbook.  Just be sure to be aware of the risks of this approach. You could struggle to sell the books and wind up having to store them for a while. Or a new edition could come out, resulting in the prices of your textbooks plummeting.  Investing extra money Investing is a great way to develop an extra source of income. You can earn dividends (like interest) from stocks, interest from savings products, or interest from something like peer-to-peer loans.  In general, you need a lot of cash to invest to earn any significant amount of passive income. However, it’s true passive income, as it really doesn’t require much effort.  If you invest $1,000 in an S&P 500 index fund, you might earn around 1.5% in dividends. This means that after a year, you’ll have earned $15 in dividends. Plus, your investment will typically grow over time (although this fluctuates with stock market movements).  Though it won’t necessarily produce a huge amount of passive income, investing is a fantastic idea in general. The earlier you get started, the more your money can grow.  If you kept that same $1,000 invested for a total of 45 years (until retirement age) and earned 7% returns, you would have over $21,000 in your account—and that’s without making any additional investments!  For more info, read through our guide on how to invest as a college student.  Live streaming  Various platforms exist where you can live stream and make money in college. While this isn’t necessarily “passive” income, in some cases, it can reward you for doing activities that you would already be doing.  For instance, you might choose to live stream yourself playing your favorite video game. Platforms like Twitch allow viewers to leave tips and donations; you can even sell premium subscriptions to loyal viewers.  This strategy requires building up an audience, but getting started is usually low-cost or no-cost, although you probably need to buy a better microphone and camera than those in your laptop if you want to start earning serious money.  Renting out your car If you own a vehicle, you can make semi-passive income by renting it out on a platform like Turo. Turo is like Airbnb for vehicles, and it allows owners to rent directly to renters.  This strategy will work best if you live in a decent-sized town that has strong rental demand. Bonus points if there is an airport nearby!  Advertising using your vehicle Another way to make passive income using your vehicle is to sell ad space on your car. This is known as “wrapping,” allowing you to make money by driving around.  A few different companies will pay you to wrap your vehicle. Just be sure to check the fine print—some may require that you drive a certain amount of miles per month, for example.  Selling your class notes  Here’s a creative strategy: You can actually sell class notes for cash. Since you’re taking these notes anyway, the income from this source could be considered passive.  Various online platforms enable you to sell notes for cash. Examples include Nexus Notes and Stuvia. Stuvia reports that the average seller earns over $100 per month selling notes on the platform.  Retail arbitrage Retail arbitrage involves buying discounted items from retailers and reselling them online. This is not truly “passive” income, but it can still be worth considering as the time requirement is flexible.  Arbitrage is all about looking for opportunities to buy low and sell high. You might see a video game on sale for $25 at a local store, where it goes for $45 on eBay or Amazon. After fees and shipping, you could likely net around $10 to $15 from flipping this item.  This strategy can require a fair amount of time spent researching, listing, and shipping items—it’s only recommended if you enjoy these kinds of entrepreneurial pursuits.  Wrapping up Passive income is a great way to supplement your funds during college. Some passive income ideas require a lot of upfront investment—whether of time, money, or both—while others are simpler to get into.  Regardless of which way you choose to earn passive income, it’s wise to track your progress and see how much time you’re actually spending. In some cases, you may find that your “passive” income source isn’t so passive after all! Be sure to re-evaluate if the activity is worth the extra money it provides or if you’d be better off getting a part-time job or being a rideshare driver.  Looking for other ways to save and earn in college? We’ve got you. Mos is a banking solution specifically designed for students. You can use Mos to earn cash back, manage your funds, apply for scholarships, and much more.  Plus, if you’re looking for active income, try Mos gigs. Earn extra cash on a schedule that suits you, with vetted opportunities sourced just for students.

Passive income lets you earn money without much active time invested. Here are passive income ideas for college students.

Passive income for college students

If you’re like many, your parents opened a bank account for you at a young age to teach you money lessons. At the time, all you had was your birthday money, holiday gifts, and maybe an allowance to throw into your bank account. But it was a vital first step in building your financial future. But as you approach adulthood, you can open and maintain a savings account yourself—and ditch the one you shared with your parents. It’s the next step in becoming a financially independent adult. This article will show you why you should get your own bank account and walk you through the process of doing so. What is a joint bank account? A joint bank account is just a bank account you share with someone else.  Minor children can’t legally open their own bank accounts, but your parents can open one for you and put both your names on the account.  This instills the virtues of saving money and financial responsibility in you early on as a child or teen.  But setting aside that allowance or first-job paycheck gives you a head start on saving for your college education, too.  Obviously, your pre-college earnings won’t cover all your education costs. But kicking off your good money management early makes the transition to adulthood smoother and, at the very least, offers you some peace of mind when you’re a “broke college student.” Why you should take your parents' names off your bank account Look: At some point, you’ll need your own bank account as an adult. You can’t become financially independent without it.  Doing it as early as possible—like in college—puts you on the road to independent adulthood early and makes you feel like an adult. It brings along a few benefits, like: You gain complete control of your money Your parents have as much access to your joint account funds as you do. Regardless of how they use that power, you can never be fully independent if they still have it. Cutting the cord and getting your own account gives you more control over your personal finances. You are entirely responsible for keeping money in the account, not overdrawing it, paying any fees, and so on.  It can be scary at first, but also rewarding. No more limits of any kind. No need to depend on your parents to do things for you. No need to worry about parents dipping into your hard-earned money. That said, your parents aren’t out of the picture when you have your old account. They can still transfer money to you. These days, some banks have integrated technology that makes bank transfers free and instant. So it’s almost like your parents are still on your account but without access to your cash. You get more financial privacy When you have a joint bank account with your parents, they have the same level of visibility. They can see your every financial transaction.  Some may find this to be no big deal. Others much prefer their parents don’t see their spending habits and call them with concerns every week. Once you ditch the joint account and get your own, this is no longer a concern. Only you can access your personal bank account.  Your assets are protected against parental financial issues If a parent is on your bank account with you, it’s technically one of their assets. That means if they end up in a situation where their assets are seized, the person doing the seizing might come after your bank account. This could happen if they use the bank account as loan collateral, receive a judgment against them in court, or fall into tax debt. All of these situations are terrible, but you’re an adult. You can help your parents voluntarily if you want, but you don’t want outside entities seizing your money because of your parents’ decisions. How to get your own bank account If you’ve never opened a bank account on your own before, it may sound a bit confusing. What documents do you bring? Do you have to pay the bank anything? Does it take a long time? Actually, it’s fairly straightforward. The hardest part, as you’ll see, is researching accounts. But we’ll help you with that and the rest of the process below. 1. Decide the account type you want First, pick the account type you want. Most students will do well with either checking or savings accounts, but the best account varies based on your needs. You may find you need both. Checking accounts Checking accounts are the more flexible account type. You can withdraw as many times as you want, as long as you have the money available. You’ll also get a debit card that lets you spend out of the account and withdraw money at ATMs. That said, most checking accounts don’t earn interest on their balances. Therefore, checking accounts are suitable for students who need a spending account. Savings accounts Savings, as the name implies, are designed for you to set aside money. Most only let you withdraw 6 times per month without incurring fees. However, they pay interest on the balance to help reduce the effects of inflation. Student accounts Some savings and checking accounts are designed for students. They generally have low or no maintenance fees or opening deposit requirements.  These accounts will also provide financial literacy and education resources to help you understand banking and your money. You must be an active student to get one of these. Once you graduate, your bank may convert this to a regular account. Be ready for that—you might start paying fees associated with a regular account. 2. Shop around for banks Next, look around for the best banks and bank accounts.  Each bank and account will differ when it comes to account features. Here are some factors to consider: FDIC insurance: Make sure you pick a bank that is FDIC-insured. This covers losses if your bank goes under. Most banks you’ll find will be insured, but checking never hurts.  Monthly maintenance fees: Fees charged for keeping the account open. They may be waived for a minimum balance. Minimum opening deposit: The amount needed to open the account. Interest: Compare savings interest rates. Some checking accounts may also pay interest. Online and mobile banking: Online and mobile banking make your banking convenient. Look into a bank’s online banking features and security. Branches: Check out branch availability near you in case you ever need to visit a branch. Rewards: Some banks offer rewards when you spend with the account’s debit card. Customer service: See what options they offer, such as phone and live chat. Read reviews to get a feel for how customer-friendly they are. Other fees: Compare fees for ATM withdrawals, overdrafts, insufficient funds, and so on. Some banks may reimburse ATM fees or have no overdraft fees. 3. Apply for the best account you find Did you find an account you like? It’s time to apply.  Many banks let you do this all online without leaving home. It should only take a few minutes. The application will ask you for some basic information such as your name and Social Security number. It’ll also ask you to agree to disclosures and other relevant policies. 4. Fund the new account Finally, it’s time to fund the account. You can write a check or initiate a transfer from your existing account to do this. Note that you don’t need to fund the account immediately if it doesn’t require an opening deposit. Fund it as soon as possible, though, so you avoid maintenance fees and can start using your new account. Closing the old joint account Now that you have your own account, it’s time to close down the old joint one.  Here’s how to do that as smoothly as possible: Switch employer and financial aid direct deposits Start by updating your bank information with your employer and financial aid for direct deposit purposes. This will ensure your paycheck, loans, and other aid goes to your new account immediately. No need to worry about continuing to make transfers between accounts, and it gives you more control of your finances during the account closure process. Update regular payments with your new account details Pay any bills with the old account? Update that information, especially any automatic payments, like streaming services. This will help you avoid overdrawing that old account accidentally or payments failing once you close the account. Inform your old bank Let your old bank know you want to close the account. The bank may also need consent from your parent, so it’s easiest to do this in person. However, you may be able to call, email, or chat online to handle this. Ditch the old account’s debit cards and checks Finally, cut up any debit cards and shred checks associated with the old account. Don’t just throw them away—you don’t want any old account or debit card numbers available, as this could lead to identity theft or other issues. If you have no way of destroying these, your bank may do it for you. It’s time to get your own bank account Getting your own bank account is a rite of passage into adulthood, alongside finding a job, building credit, and learning to budget. You gain control of your money. That means more privacy in financial transactions and more independence from your parents’ financial decisions. Not everyone is ready to sever ties at 18, though. A joint account during college may be beneficial. Have this conversation with your parents and decide on a good time to get your own account. With Mos, you can open a joint account with a sponsor as a teen, then easily switch to a solo account once your 18th birthday rolls around. Once you’re ready, check out our complete guide to banking for college students so you can make the best use of your account.

Being a financially independent adult starts with getting your own bank account. Learn how to take your parents’ names off your bank account and open your own.

How to take your parents’ names off your bank account

This guide will tell you everything there is to know about the Thurgood Marshall Scholarship, including the eligibility requirements, how to apply, and how much money you can get to pay for college. We’ll also cover some other scholarship opportunities you may be eligible for. What is the Thurgood Marshall Scholarship? The Thurgood Marshall Scholarship was established in 1987 in honor of Thurgood Marshall, a civil rights activist and Associate Justice of the Supreme Court. He was the first African American to serve on the Court. The scholarship is the nation’s largest that focuses on the Black college community. The Thurgood Marshall College Fund offers multiple scholarship opportunities. The average award available is $3,100 per semester.  (Image Source) How to apply for the Thurgood Marshall Scholarship This section will tell you how you can apply for the Thurgood Marshall Scholarship and all of the eligibility requirements. Eligibility requirements Before you apply for the Thurgood Marshall Scholarship, make sure you meet the eligibility requirements:  Be a full-time or part-time student at an accredited historically Black college or university or predominantly Black institution Have a GPA of 2.5 or higher on a 4 point scale Show financial need Show leadership capabilities Be a US citizen or legal permanent resident The application You can apply for the Thurgood Marshall Scholarship through the fund’s website. We’ll break it down. Page 1: Create an account Page 2: Select scholarship opportunities to apply for Page 3: Demographic information Page 4: Education information Page 5: Personality questionnaire Page 6: Video question - How will your education benefit you, your family, and the community? Page 7: Essay Page 8: Letter of recommendation Your essay and video question are your opportunities to show your personality and explain why you deserve the scholarship, so make sure to put in the effort to make them good responses. Important dates to remember Some important dates to remember include: Applications open: January/February Applications close: April/May Recipients selected: April - June Awards distributed: July Other scholarships like the Thurgood Marshall Scholarship If you’re looking to pay for college, there are many other scholarship opportunities available. You might be interested in these alternatives. The Jackie Robinson Foundation Scholarship The Shawn Carter Scholarship The Ron Brown Scholarship Mos can help you get started applying for both government financial aid and scholarships, like the Thurgood Marshall Scholarship. Join us now.

The Thurgood Marshall Scholarship offers many opportunities to the Black college community.

Complete guide to the Thurgood Marshall Scholarship

Purdue traces its origins to 1862, when President Abraham Lincoln turned over public lands to states that agreed to use the land for higher education related to agriculture and mechanics.  Starting classes in 1874 with 39 students, today Purdue is a well-known school that has more than 49,000 students enrolled. If you’re a high school student and think Purdue might be the school for you, but you’re worried about how you’ll pay for college, we’ll break down what you need to know. A snapshot look at Purdue  Located in West Lafayette, Indiana, Purdue University is the flagship campus of the Purdue University system, a group of public universities in the state. Since its founding in 1874, Purdue has grown to be one of the largest schools in Indiana and has very high research activity classifications. The school is also notable for the large number of astronauts it has produced – 26. Students at Purdue can expect a rigorous academic experience thanks to the school’s top 50 ranking nationally. However, as a public university, Purdue keeps costs low, making it an affordable option for in-state students. Students at Purdue can select one of the university’s schools and colleges, such as the College of Agriculture, College of Engineering, Krannert School of Management, or the College of Science. Purdue also offers multiple graduate programs. Outside of class, students at Purdue can join one of the school’s more than 900 student organizations. The university also has NCAA Division I programs that participate in the Big Ten conference, giving athletically-inclined students the opportunity to compete or cheer on their classmates. Ranking: 49th in National Universities Size: 49,639 Demographics: 58% male, 42% female Acceptance rate: 58% Average GPA of accepted student: 3.69 Key dates and deadlines (2022): Application: January 15 Financial aid deadlines: April 15 A look at scholarships offered by Purdue When it comes to paying for college, it’s easy to get sticker shock. A degree can easily cost a hundred thousand dollars or even more. Many families save for years to pay for college, only to find that they haven’t been able to save enough. If you want to go to Purdue University but don’t have enough money saved to pay for tuition, the best thing you can do to help cover the bill is to try to earn scholarships. Scholarships are free money that you can put toward tuition and other educational costs. What makes them great is that they’re not loans, so you don’t have to worry about paying them back. If you look around, there are many different scholarships out there. Some are based on athletic skill, while others are awarded based on academic achievement. There are also scholarships where you can win by luck, by writing a strong essay, or based on your financial need. Purdue has a variety of scholarships available, including need-based and merit-based awards. The merit-based scholarships are highly competitive, with only 15% of students receiving merit-based awards. The university notes that only citizens, nationals, permanent resident aliens, and lawfully present aliens who are able to establish domicile in the US are eligible. International students can’t receive these awards. Outside of scholarships offered by Purdue, you may be able to qualify for federal grants, which work like scholarships. There are also scholarship programs operated by businesses, community groups, and other organizations.  With some effort, you can find scholarships for everything from being tall to being left-handed. Our financial aid tips and tricks page has more info on finding scholarships and other sources of college funding. Student loans Scholarships are the best way to pay for college, but if the scholarships you earn aren’t enough to cover the full cost of your education, the next option to consider is a student loan. The obvious drawback of student loans is that they’re loans—you’re expected to pay them back, plus interest over time. While loans can be quite expensive, investing in your education can be well worth the cost, so it’s a good idea to consider one if you need help paying for school. Purdue’s financial aid website has information about the various loan programs available to students. One unique program is the Purdue Loan, which offers low-interest loans to juniors and seniors who have financial need. In general, the best student loan program for most people is the Federal Direct Loan Program. These student loans come from the United States government and can come in 2 different forms. Subsidized loans are better. When you get a subsidized loan, the government pays the interest for you while you’re in school and during grace or deferment periods. With unsubsidized loans, interest starts to build up as soon as you receive the money, so you’ll owe more as time passes. Government loans are usually the best way to pay for school, but there are limits to how much you’re eligible to borrow. Once you exhaust your federal loans, you’ll have to consider turning to a private student lender. Many banks, credit unions, and other money lenders offer specialized student loans to help people pay for the cost of college. The downside of private student loans is that they tend to have higher interest rates, making them more expensive. They also don’t have some of the perks of federal loans, such as income-based repayment, deferment, and loan forgiveness. Getting loans can be scary, but they’re an essential tool when it comes to paying for college. Our article on student loans breaks down how they work. FAFSA  The most important thing to do for any college student who needs help paying for school is to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is the most important financial aid form you’ll fill out because it’s used by federal and state governments as well as most schools to determine your eligibility for financial aid. When you fill out the FAFSA, you’ll have to sit down with your family and answer a variety of financial questions, such as your family’s annual income and how much money they have saved for school. Based on the answers, the government will determine your expected family contribution (EFC) to the cost of your education. The difference between your EFC and your school’s cost of attendance is your total financial need. The larger your need, the more need-based aid you’ll generally receive. This can include things like subsidized loans, scholarships, and grants. Keep in mind that most schools try to meet some of their students’ financial need but don’t guarantee that they’ll meet 100% of need. You’ll have to come up with the remaining money in other ways, such as merit-based awards and loans. You can fill out the FAFSA as early as October 1st for money awarded in the next academic year. The deadline is the last day of June, but Indiana has an April 18th deadline for some programs. It also offers other awards on a first-come, first-served basis, meaning it’s in your best interest to finish the application as soon as possible. The FAFSA is a long and complicated form, so it’s a good idea to prepare yourself by learning more about how long it takes to complete the FAFSA. Purdue financial aid FAQs  We’ll answer some more questions you might have about Purdue University. What is Purdue’s cost of attendance? The cost of attendance at Purdue ranges from $22,812 to $45,954. Indiana residents pay the lowest cost of attendance, while non-residents and international students must pay higher amounts of tuition. For residents, of the $22,812 cost of attendance, $9,992 goes toward tuition, $10,030 toward room and board, and $2,790 toward other costs. Can out-of-state students qualify for financial aid? Yes, out-of-state students are able to qualify for financial aid from the federal government and the university. However, they won’t be eligible for certain state aid programs. International students will have much more limited eligibility for aid. How many students at Purdue pay no tuition? Purdue doesn’t publish information about how many students get a full ride for their degree at the school. However, 40% of the university’s students receive some form of need-based aid, with the average award totaling $12,387. What is the financial aid process at Purdue? The financial aid process at Purdue starts with filling out the FAFSA, which you can do as soon as October 1st for aid awarded in the next academic year. There are also supplemental awards you can apply for with deadlines ranging from March to August. Students begin to receive their award notices in mid-March.  How can I lower my educational expenses? Students at Purdue University need to cover tuition, room and board, and other educational costs. One of the best ways to reduce tuition costs is to be a resident of Indiana. If you have family in West Lafayette, you can also save on room and board by living with family. What will be included in my financial aid package? Your financial aid package at Purdue will include any need-based and merit-based scholarships that you receive. It will also include any government grants, subsidized and unsubsidized loans, and any state-based aid that you receive. Does Purdue offer scholarships for exceptional students? Yes, there are merit-based awards for exceptional students. For example, the Trustees Scholarship is available to students with exceptional academic achievement and a history of leadership and service in their school or community. It is renewable as long as students maintain a 3.0 GPA. Universities like Purdue that you might be interested in  Purdue is a great university for many students, but you might not be sure if it’s the right school for you. If you’re thinking about applying to Purdue, consider these alternatives too. University of Michigan, Ann Arbor The University of Michigan, Ann Arbor, is a top-ranked public research university. As a public school, it keeps tuition low for students from Michigan, making it a great choice for cost-conscious students who still want to attend a large research school. With more than 275 degree programs and a 15:1 student-to-faculty ratio, students will find engaging classes in a variety of different disciplines. Students can also enjoy the school’s many student organizations and cheer on its 29 NCAA Division I teams. Notre Dame University Located in South Bend, Indiana, Notre Dame is a well-known, private research university. The school was founded in 1842 by Rev. Edward F. Sorin, who aimed to establish a powerful Catholic university in the United States. Today, it is operated by a mix of lay and religious administrators. Today, the school is recognized globally for its theology and philosophy programs, but it offers more than 70 other degree programs in subjects such as Economics, Computer Science, and History. The school is also known for its athletic program. The Fighting Irish compete in many NCAA sports and have a passionate fan base across the country. Northwestern University Located in Evanston, Illinois, Northwestern is a good choice for students that want to remain in the Midwestern United States but who want a more urban college experience.  Since its establishment in 1853 with a total of 10 students, the university has grown to a population of more than 21,000 students. Northwestern is a top-ranked school nationally, ranking 9th overall, 24th globally, and boasting top 10 rankings for business, materials engineering, chemistry, and economics. If you’re looking for rigorous academics, Northwestern is a strong choice. Conclusion Purdue is ranked among the best public universities in the United States and is especially well-known for its engineering program. If you’re looking for a top-ranked school that keeps the cost of a quality education relatively low, you might want to consider applying to Purdue. But still, the cost of getting an education at Purdue isn’t cheap—Mos can help if you’re looking for the best way to pay for higher education. 
With Mos, you can get help negotiating for more financial aid, easily applying for scholarships and grants, and writing scholarship essays to help you earn extra funding to pay for tuition. Why not get started today?

Read all about financial aid at Purdue University, including scholarships, loans, and grants.

Purdue financial aid: a complete guide

All things considered, the average cost of college is just over $35,000 per year. That’s probably why the vast majority of students rely on some form of financial aid.  But all the aid available can blend together and be confusing, with so many kinds available.  2 of the most common aid types are student loans and scholarships. Both help you pay for college, but neither works much like the other. This article will explain how each aid type works, along with its pros and cons, then compare how they stack up against each other. What are student loans? Student loans are one of the most common types of financial aid. Since they’re loans, you eventually have to pay them back. That means they put you into debt. However, they are generally the easiest form of aid to get since they’re based on need. Nearly 43 million borrowers have some level of student loan debt. Types of student loans: Federal vs. private loans There are 2 broad types of student loans: federal and private. Federal loans, as you’d expect, come from the federal government. The government gives the money to your college who then hands it on to you to use on your education expenses. On the other hand, private loans come from banks, credit unions, online lenders, and other financial institutions. More lenders mean more options, but they don’t come with the special features associated with federal loans. Let’s look at each loan type in more detail. Federal student loan types The most common type of federal student loan is the Stafford loan. This is the loan most people are talking about when they discuss federal student loans.  It got its name when former Vermont Senator Robert Stafford passed legislation that changed the Higher Education Act of 1965 in 1988. There are 2 types of Stafford Loans: Direct subsidized: Payments aren’t required until 6 months after you graduate or leave school. Interest doesn’t accrue until after that 6-month grace period ends, either. Direct unsubsidized: Interest accrues immediately. However, payments aren’t required until after the 6-month grace period. The federal government offers a couple of other loan types as well: Direct PLUS loans: For graduate or professional students and the parents of undergraduate students. Interest begins accruing immediately. Direct consolidation loans: These let you combine multiple student loans into one. How to get a federal student loan You can get a federal student loan by filing the Free Application for Federal Student Aid or FAFSA. The FAFSA is free to file, and you can knock it out in an hour or 2 by gathering all the necessary documents ahead of time. You’ll then create an FSA ID for your FAFSA login, plug in all your info in the right spots, then sign and submit the FAFSA. After submitting, you’ll receive a Student Aid Report detailing your eligibility for loans and other federal financial aid sources. Finally, you choose the loan amount you need, and it’ll be disbursed to your school to pay for college expenses. How to get a private student loan Private student loans are available through most established financial institutions that lend money, like banks and credit unions. To get one, you’ll have to shop around to find the best rates. Then, you’ll need to apply by providing personal and financial information. Now, private lenders will want to see a credit history and decent score. As a student, you might not be there quite yet. Lenders know this and will let you apply with a co-signer—a trusted individual with a good score, such as a parent or relative. Pros and cons of student loans Unfortunately, student loans make you go into debt.  But many students in need of financial aid will pay a good chunk of their college costs with student loans. After all, the Education Data Initiative found that student borrowers borrow an average of $32,880 to get a bachelor’s degree. With that in mind, here are some student loan pros and cons: Pros Available to most students Need-based Flexibility in use It can help you build your credit score  Helps you pay for college without money upfront Cons You incur debt that must be repaid Interest accrues Missing payments or defaulting on loans can harm your credit score What are scholarships? Scholarships are a form of financial aid you don’t have to pay back. As a result, they help you pay for college without loans. This gets you through college with less debt, putting you on better financial footing afterward. Many scholarships are merit-based. This means you’re judged on the quality of your application. However, some scholarships may be need-based. Types of scholarships There are tons of scholarships for all sorts of people that require a range of effort. For example, there are fairly easy scholarships to apply for like the Courage to Grow Scholarship. Most of these just ask for some basic info about you and maybe a few quick questions. Easy means more competition, but you can apply to more in less time. On the other end are rigorous, exclusive scholarships like the Ron Brown Scholarship. These ask a lot more of you (usually including an essay), but the winnings can cover a big chunk of college costs. There is a nearly endless number of niche scholarships out there for people based on sports, hobbies, majors, religious or ethnic backgrounds, and more. The Ron Brown Scholarship is a good example — it’s designed for high-achieving Black students.  How to get a scholarship Scholarships vary in their application processes and award criteria. However, the general steps are similar across most. Start by looking around for scholarships. You can contact your financial aid office, browse online, or use a service like Mos to get matched to scholarships. From there, you’ll fill out the application and attach any documents they need. You’ll also complete the essay, video, or other requirements before submitting it. Follow any other instructions to complete the application. You’ll eventually hear back from the organization offering the scholarships about whether you won or not. How long this takes varies by organization. Pros and cons of scholarships Unless you score a full-ride scholarship, this form of aid won’t necessarily pay for most of your education. Still, scholarships are an essential piece of your financial aid package. Here are some pros and cons of this aid type: Pros It’s free money—no need to repay it No limit to the amount you can earn up to your total school expenses Wide variety of types available Easy scholarships are available, requiring little more than an application Some can be renewed Some can be applied for multiple times Cons Often competitive and merit-based May involve work such as essays or video creation Not offered directly on FAFSA Student loans vs. scholarships Now let’s dive in and compare the 2 different forms of aid head-to-head: Repayment Perhaps the biggest difference between student loans and scholarships is the repayment requirements. Let’s look at each aid type: Student loan repayment In general, all student loans must be repaid. The schedule can differ depending on the loan type. For example, direct federal subsidized and unsubsidized loans don’t require repayment until 6 months after you graduate the school or drop below half-time enrollment. This is called a grace period, and it gives you time to find a job before repayment. Direct PLUS loans usually require repayment immediately, with the first payment due 60 days after disbursement. However, the borrower can request to defer the loans all the way until the end of that grace period. Private loans are also due immediately. Lenders may allow deferment and forbearance, but this varies by lender. Now, you may not have to pay back all of your federal loans if you qualify for a loan forgiveness program. For example, workers in public service roles can have their loans canceled through the Public Service Loan Forgiveness Program after making enough payments. Private loans are rarely forgivable, but it’s possible. Scholarship repayment Scholarships don’t usually require repayment. Once you win the money, it’s yours to keep. This is why they’re such an excellent tool for keeping down the amount of debt you graduate with. There are exceptions, though.  For example, some scholarships are given every year as long as you maintain certain grades and are enrolled in enough credits. Fail to meet those, and you could lose your scholarship. In some cases, you might have to repay some of it. It depends on the contract you sign. Misusing the money—like using it for your spring break trip instead of tuition—could lead to the awarding organization demanding the money back. Of course, lying, falsifying information, or plagiarizing work on a scholarship application is grounds to have your award yanked—among other consequences. Academic dishonesty is not worth it. Eligibility Student loans and scholarships serve different roles in a financial aid package. So the qualification criteria and process for getting them will differ. Student loan eligibility Student loans are need-based. The government and private lenders will give them to you based on your and your family’s financial information and your estimated college costs. There’s no need to compete with others for student loans, and the funds don’t run out. You simply apply for the FAFSA each year or through a private lender for private loans to see what you qualify for. Scholarship eligibility Some scholarships are need-based, but most of them are merit-based. This means you compete with other students for the money. The best or most suitable students win. How you apply varies by scholarship. Some may ask for transcripts and a list of extracurriculars. Others may want to see essays or videos on a topic. And some scholarships want all of the above. All that said, some scholarships may take finances into account as a prerequisite for applying. For example, some scholarships are designed for students from low-income backgrounds. These are need-based in that you must be below a certain money threshold to qualify. But the program itself may still make you compete with other applicants by submitting transcripts, extracurriculars, and essays. Other sources of “free money” financial aid Want more free money? If scholarships aren’t getting you enough, you have a few other options.  Try these forms of free money financial aid: Grants Like scholarships, grants are a form of aid that doesn’t make you repay it unless certain uncommon criteria are met. The Pell Grant, offered through the FAFSA, is the most prominent, offering up to $6,895 for the 2022-2023 academic year. The federal government provides a few other grants as well. If those aren’t enough, you can hunt for grants through your state. For instance, New York State resident students that file the FAFSA can get additional aid through the NYS Tuition Assistance Program grant. Many private organizations offer grants, too. You have plenty of options out there, so don’t give up if one board says no. Work-study Work-study is FAFSA federal aid that lets you work up to 20 hours per week to earn money for your college expenses. These earnings don’t count toward your FAFSA income limit, so loan eligibility isn’t affected. Your school will try to put you in a job related to your major or “civic education.”  For example, if you’re a psychology major, work-study may give you an administrative assistant job in the psychology department. Now, you get help paying for school and a resume booster. These jobs take your class schedule into account, too. They make sure work and school clash as little as possible. Free money vs. borrowed money Scholarships are free money, but most are merit-based, so there’s no guarantee you’ll win any. Meanwhile, federal student loans are easier to get, but they put you into debt. The best way for most students is to exhaust all scholarship (and grant) options first to maximize their free money. Then, use federal student loans to fill the gap. Only after exhausting these options should you consider private loans. Have more questions about getting financial aid and the kinds available to you? Go check out our financial aid FAQs to get your questions answered.

Student loans and scholarships are 2 of the most popular financial aid types. Learn the pros and cons of each and how they fit into your aid package.

How is a student loan different from a scholarship?

Want to know if you have access to grants and scholarships beyond what’s available on a federal level? Check out our complete state aid directory.


 State financial aid directory for all U.S. states and territories

College is expensive — so expensive that even a $1,000 scholarship may not make much of a dent in paying for college while avoiding student loans. But that's just what Mos was built for, so if you're looking for the absolute, largest scholarships out there, that can allow you to avoid student loans entirely, look no further, as here are our absolute favorite big-money scholarships, hand selected from tens of thousands. Ron Brown Scholarship The Ron Brown Scholarship awards $10,000 each year for 4 years (a total of $40,000) to the most talented and economically challenged African American students. To qualify, you must be a graduating high school senior. An essay and recommendations are required to apply. Chat with a Mos advisor to learn more, or visit the scholarship site! Hertz Fellowship The Hertz Fellowship is a five-year scholarship worth $250,000 for graduate students pursuing a PhD in the applied physical and biological sciences, mathematics, or engineering. You can apply for this scholarship as a college senior or as a first-year graduate student. To apply, you'll need an essay and recommendation letters. Jackie Robinson Foundation Scholarship Program The Jackie Robinson Foundation Scholarship Program offers up to $30,000 to graduating high school seniors with leadership potential and a demonstrated dedication to community service. For this scholarship, you must have a minimum SAT score of 1,000 combined on the Math and Critical Reading sections, or a composite ACT score of 21. You’ll also need to show financial need and attend a 4-year college.  NHS Scholarship The National Honor Society (NHS) Scholarship provides 600 high school seniors with scholarships ranging from $3,200 up to $25,000! You’ll have to be an active National Honor Society (NHS) members in good standing, and will need to submit an essay and recommendation letters to apply. Create-A-Greeting Card Scholarship The Create-A-Greeting Card Scholarship provides $10,000 to the student who comes up with the best image for the front of a greeting card. Any student, 14 years of age or older, is eligible to apply. To apply, you need to submit an original photo, artwork or computer graphics.  QuestBridge College Match The QuestBridge College Match provides a full four-year scholarship, worth over $200,000! Academically outstanding high school seniors from households earning less than $65,000 per year for a typical family of four are eligible to apply. Your first step is to submit a free, online National College Match application, two letters of recommendation, two essays and any available standardized test score reports are required to apply. Golden Door Scholars (Golden Door Scholarship) Golden Door Scholars provides over 300 large scholarships to high performing students with DACA, TPS, or undocumented students. Strong preference will be given to applicants who have high financial need and are interested in pursuing software engineering, nursing, data analytics, business analytics, and digital marketing. Students often attend select Partner Schools, but it is not required. To apply, you’ll need to submit an essay, information about leadership and extracurricular activities, and transcripts. Dell Scholars Program The Dell Scholars Program provides 500 students with a $20,000 scholarship, textbooks, and a laptop! To be eligible for this scholarship, you must have participated in a college readiness program in grades 11-12. You also need to be eligible for the Pell Grant, have a 2.4 GPA, and be studying full-time at a four-year school. To apply, you’ll first need to complete an online aid report. Then, you may be asked to submit transcripts, a Student Aid Report (SAR) from the FAFSA, and an online recommendation. Chat with a Mos advisor or visit the scholarship website to learn more. Amazon Future Engineer Scholarship  The Amazon Future Engineer Scholarship provides $40,000 scholarships, $10,000 each year, plus a paid internship to high school seniors planning to study Computer Science. To qualify, you must have taken AP Computer Science (either a class or the test) and plan to major in Computer Science, Software Engineering, Computer Engineering or another computer-related field of study. Lockheed Martin STEM Scholarship The Lockheed Martin STEM Scholarship provides 200 STEM students with $10,000 scholarships! Students in any of the following majors are eligible: Aerospace Engineering, Computer Engineering, Computer Science, Electrical Engineering, Electrical and Computer Engineering, Industrial Engineering, Mechanical Engineering, and Physics. You must have a minimum 2.5 GPA, attend a 4-year college, and demonstrate financial need. Winners are selected on academic performance, leadership in school and community activities, work experience, a statement of career and education goals, personal circumstances, and a recommendation.  Barry Goldwater Scholarship The Goldwater Scholarship Program provides a renewable $7,500 scholarship for students pursuing a research career in a natural science, mathematics or engineering! To qualify, you’ll need to be a college sophomore or junior and have a 3.0 GPA. To apply, you’ll need to submit an online application and interest statement.  We the Students Essay Contest  The We the Students Essay Contest provides 16 scholarships of up to $7,500 to the students with the best essays on our society and values. They contest is open to any high school student ages 14-19. To apply, you just need to submit your essay — ask your advisor for help coming up with an essay idea! 

Here are our absolute favorite big-money and largest scholarships, hand selected from tens of thousands, to help you pay for college without loans.

Top big money scholarships

Student loans are intended to be used for tuition and living expenses while you’re in school. But technically, you can use them for just about anything.  Some creative students might be wondering if they can invest student loan funds and pocket the difference between their profits and the interest they are charged.  Is investing student loans legal? And is it a good idea? That’s what we’ll explore in this article. We’ll break down typical student loan contracts, the legality, and the risks and drawbacks of the bold proposition. Can I invest student loans?  Student loans are intended to be used for educational expenses. However, using them for other purposes is not technically illegal.  You could theoretically use student loan funds to invest in stocks or other assets. However, remember that most loan funds go directly to your school—you’ll only have direct access to loan money left after your tuition and fees.  While it’s not illegal, investing student loans is certainly a gray area—both legally and morally. Put simply: this strategy is using the loans in a way that’s a lot different from their intended use.  Plus, it can be quite risky. You will eventually need to pay these loans back, with interest. If your investments don’t perform well, you could lose money and get stuck with a huge student loan bill.  And finally, it’s difficult to make money with this strategy because you need to earn more than the interest rate you’re paying on your loans.  Student loan interest rates for federal loans range from 4.99% to 7.54%. To make any sort of profit, you’ll need to earn a rate of return that’s higher than the interest rate you are being charged. Considering that the broad US stock market tends to return around 7% per year, that can be difficult to achieve.  Remember: Most student loans are sent directly to the school  An important detail to remember is that most student loan funds are typically sent directly to your school. They are then used to cover tuition and related expenses. This is true for both federal and (most) private loans.  If funds are left over, they can be distributed directly to your bank account. But in general, you won’t receive a check for the full amount of your student loans—therefore, you can’t easily invest the bulk of student loan money.  Federal loans vs. private student loans  One big consideration is whether you’re using federal student loans or private loans. Generally speaking, federal loans have more strict rules on how they can be used. The Department of Education makes it clear that student loans are meant to be used for education expenses.  Private loans, on the other hand, may be more flexible. Many lenders don’t have specific rules on how the funds can be used—they are more traditional loans based on your creditworthiness. At the same time, private loans are more expensive and often harder to get approved for.  Subsidized loans vs. unsubsidized  There also may be a difference to consider if you are using subsidized student loans. Most federal loans are subsidized by the government, which means that Uncle Sam offers to pay part of your interest.  With subsidized loans, the government provides a lower interest rate than you could otherwise get. The US government considers it an investment in educating the population. However, subsidized loans present another moral dilemma—is it appropriate to invest loans that taxpayers subsidize?  Subsidized loans could also present a legal hurdle. While there are no specific laws against investing with student loans, it’s possible that the Department of Education could take legal action against students who use student loans improperly.  Should I invest student loans?  Technically, you can invest your student loan money. But should you?  In short: No, probably not. A lot is working against you when it comes to investing student loan money.  The most significant is that you’re investing money that isn’t yours. You’re investing a loan, and that loan will need to be repaid eventually—with interest. Consider 3 scenarios: Worst-case scenario: You take out a student loan, invest the money, and your investment goes south. You lose the invested funds. Unfortunately, you still owe the full amount—and interest is accruing daily.  In this case, you would have to find the money in your budget to tackle the debt, or perhaps even take out another loan to cover the monthly student loan payments.  Mediocre-case scenario: You take out student loans with an interest rate of 5%. You invest the funds, and earn 7% returns on average (the long-run return on investment for the US stock market).  After accounting for the 5% interest you’re accruing, you earn a real return of 2%. On a $10,000 investment, that’s only $200 per year. Is that worth the risk and headache?  Best-case scenario: You take out student loans with an interest rate of 5%. You invest and get lucky with a stock that has high returns. You make some money, and pocket the difference between your returns and the interest rate you must pay.  Investing could pay off, but again, a lot is working against you here. It’s best to play it safe and only invest money you can afford to lose.  Potential benefits  In a best-case scenario, you could earn some money on your investments. If you make wise or lucky investments, and the stock or crypto market happens to work in your favor, you could potentially make some profit.  The question is whether the small potential for benefit is worth the risk—and the stress that comes along with that risk.  Risks and downsides There are many more downsides than there are upsides. Here are a few of the most important to consider. Possibility for legal action: While there aren’t specific laws against investing student loans, it’s certainly possible that a lender could threaten legal action for improper use of funds. This may be more likely with government-subsidized loans.  Negative returns: Unless your investments earn more than the interest you accrue on your loans, you will end up with a negative rate of return. This means that you actually lose money. For example, if you earn 4% per year on your investments, that may seem like a profit—until you remember that the loans are accruing 5% per year in interest.  Investing with debt: One of the core rules of investing is that you should only invest money that you can afford to lose. Can you afford to lose money that is loaned to you? What’s your plan if you lose some or all of your invested money and still have to pay back your hefty student loan balance?  Poor timing: The stock market can be a fickle place. Even if you happen to make a good investment, things can easily turn south at any time. For example, you could pick a good investment and watch your money grow for several years—only to have the stock market crash right around the time you need to start making monthly payments on your loans.  Overall, the risks of investing college loans outweigh the benefits of doing so by far.  How to start investing as a college student  It’s not generally a good idea to invest student loans. But that doesn’t mean you shouldn’t start investing while you’re in college! Even small monthly investments can really add up over time. $100 per month for 40 years would result in a balance of around $248,000, assuming 7% average returns.  And the earlier you get started, the more time your money has to grow. So whatever amount you can afford to invest, the key is to get started as soon as possible.  So, how do you get started? Here’s the brief rundown—for more details, see our guide on how to invest as a college student.  1. Open an account First up, you’ll need an investment account. You can open a free account at a stock broker like Charles Schwab, Fidelity, or Vanguard. Or, you can opt for an app like Robinhood or WeBull. All of these options are free and offer free stock trading.  2. Select investments Now, choose what you want to invest in. Since you’re young, you have a long time horizon for your investments—which typically means that you can afford to take a bit more risk. So, investments like stocks are a good option.  Not sure where to start? Investing in index funds is a simple way to invest in the stock market. Index funds include 100s of different stocks bundled into one. A great option is an S&P 500 index fund, which includes shares in the 500 largest companies in America. 3. Diversify Diversifying means spreading out your investments so that you don’t have all your eggs in one basket. This is an important principle of investing.  Buying things like index funds is an easy way to diversify your investment portfolio. If you choose to buy individual stocks, you should aim to spread your bets by investing in various companies. 4. Contribute regularly The key to investing success is to keep making more investments over time. Ideally, this means setting up a regular monthly or even weekly investment plan. You can set up automatic transfers from your bank to make this easier.  If you can make room in your strict student budget for investments, your future self will thank you! And even if you just invest extra money when you come across it, you will still greatly benefit from investing early in your life. 5. Consider your other financial goals Investing is important, but it’s not the only financial priority to consider. You may wish to start building an emergency fund to cover unexpected expenses. Or you may want to work on paying off your student loans early. The basic idea is to make a list of all your various financial goals, and then start prioritizing them. It may be that you can only afford to work towards one goal at a time—and that’s perfectly okay! Wrapping up Technically, you can probably get away with investing student loan funds. But is it a good idea? Almost certainly not!  Even if your investments do well, remember that you still pay interest on your loans. To generate a profit, your investments need to beat the interest rate you are paying.  Investing with any sort of loan is highly risky, and can lead to some serious financial consequences if things go badly. It’s best to play it safe.  Want to give a boost to your student finances in a safer way? Sign up for Mos, the banking app designed specifically for students. Get access to fee-free banking, a debit card with cashback rewards, and streamlined applications to the biggest scholarship pool in North America.

Investing student loans is technically possible, but it comes with a whole lot of risks. Get the scoop on investing your loan money right here.

Investing student loans: is it possible, and should you do it?

Are you thinking about making a budget? Congratulations! You’re ahead of many of your peers.  However, you may quickly get overwhelmed with the first step—noting all of your expenses and breaking them down into categories that make sense within your budget. Everything needs to be accounted for so you can decide where to cut or rearrange your spending. Otherwise, you risk making money decisions based on incomplete information… which can lead to overspending and financial stress. Below, we’ll explain why you should make a budget in college and dive into some of the most vital categories to include in yours. What is a personal budget? A personal budget is a plan detailing the money you bring in and how you’re going to spend that money. Personal budgets are broken down into three broad categories: Income: This is the money you receive from any sources, such as a paycheck, student loans, scholarships, or a birthday gift. Expenses: These are all the things you spend money on. Savings/Investment: Your financial goals, retirement accounts, and other savings or investment accounts. Having these written down helps you manage money—and we all know how important that is as a broke college student. It’s also an important life skill, as we’ll get into later. Now, your income can only come from so many places. Expenses? There are nearly endless things you can spend your money on. Your budget's not very useful without knowing exactly where your money’s going. To make a helpful budget, you have to break down your income and expenses into categories and subcategories — paying extra attention to the expenses side. Why do I need a budget in college? With exams to study for, club meetings to attend, and a social life to maintain, making a budget can seem like extra work. However, that work can pay off in spades. Here are some reasons why: It helps you manage your money better Writing down your financials in a budget makes money management faster and easier.  You can set fixed amounts, percentages, or ranges for the amount you spend, then simply follow that plan. No guessing at whether you’ve spent too much at any given point.  It also makes you use that money more smartly. You have a written plan holding you accountable. You feel bad if you go overboard in any given area, but you also have a plan you can adjust later if that extra spending is necessary. It can ease financial stress Writing things down can be cathartic. Not only will you feel better by getting things down on paper, but you’ll have hard proof that you’re bringing in enough income to handle your expenses. You’ll also feel more organized and in control just by having a monthly budget plan. As a result, you’ll feel a little less money stress. Even if your budget is tight, you’ll feel better seeing the numbers in front of you. You can save for your wants If you want something, you have to save for it. These wants can be small, like a concert ticket or some new clothes. Or they can be far larger, like a big vacation or future home. Whatever it may be, a budget lays out where all your money’s going. This makes it easier to designate a certain amount of money to go towards saving for those wants. You can also find ways to cut expenses, helping you save even more. Budgeting is an important life skill Budgeting isn’t just for college students. It’s a vital life skill. As you gain more responsibilities — like a mortgage and family — you need a budget. Learning how to budget early in life, before you have a ton of responsibilities, will pay off later when your money management skills are superb (and super necessary).  Personal budget categories: The essentials Before you can list your budget numbers, you need to know which categories and subcategories to include. Some may belong in multiple categories depending on spending. For example, if you meet up with friends at the bar for drinks, you may place that in “fun” spending. But if you go to that same bar to eat dinner, that may fall under “food.” Ultimately, these types of expenses are up to you. But here is a list of categories and subcategories to consider.  Income As mentioned, income is any money you receive aside from refunds or returns. Here are some common income subcategories: Salary & wages Self-employed income Student loans & scholarships Dividends Gifts Interest Alimony Child support Some income, like dividends or alimony, may not apply to you in college. Depending on how you budget, you might want to include financial aid as well—especially if you use it for more minor expenses, like books. Housing Housing is most likely your largest living expense. Debt.org found that public school room and board averages around $8,887/year, and that rises to about $10,089/year at private schools. Debt.org also found that the average 2-bedroom apartment rent averages $1,178/month. Of course, there are other expenses involved in housing. Here are some subcategories to include in your budget: Mortgage/rent Furnishings Repairs/maintenance HOA (Home Owners Association) fees Property taxes Again, categories like property taxes and HOA fees may not apply if you aren’t a homeowner. Utilities Utilities can vary in cost from month to month, and you may not have to pay for all of them. If you live in an apartment, you’re likely responsible for more utilities than in a dorm. Per Debt.org, apartment electric bills average $112/month for electric. Other utilities will add to that number if you have to pay for them. Here are some utilities you may have to pay for: Electricity Gas Water Trash collection Internet Food Food’s another essential, whether you have a meal plan, go grocery shopping, or some combination of each. Here are some subcategories to include in your food budget: Groceries Fast food Coffee shops Restaurants You can include bars here if you enjoy going out for drinks, but that may also be in a “fun” category. That’s up to you. Transportation Some students drive. Others ride the bus. Hipsters, extra broke students, and health nuts bike, walk, or longboard to class. Regardless, you may have some transportation expenses to pay for. Here are a few subcategories to consider adding: Car payment Gas Car warranty Repairs Car registration/DMV fees Parking fees Tolls Public transit Maintenance/oil changes Insurance Even as a student, you may have your own insurance policies. Here are some to include in this category: Health insurance Dental insurance Vision insurance Homeowners/renters insurance Car insurance You may consider adding things like car insurance to transportation, but for many, putting all insurance expenses in their own category makes the budget organization simpler. Healthcare Unfortunately, your health insurance may not cover everything. You may need to budget for healthcare expenses, such as the following: Out-of-pocket costs Co-pays Urgent care Specialty care Prescriptions You might include over-the-counter medications here, depending on the medication and what it’s used for, but you could also place it in your groceries subcategory.  Saving/Investing Yes, it’s possible to save money in college and invest as a college student—even on a tight budget. Doing so now lets you take advantage of the power of compound interest to get ahead. Plus, you’ll learn valuable lessons about investing when you have less money and responsibilities to worry about. You might have been saving since you were a teenager and got your first job, or maybe this is your first attempt. Start by breaking down the subcategories of saving, investing, and debts by your personal goals. Some examples of different savings subcategories by savings goal include: Emergency savings Travel savings  Car down payment savings Some examples of investing subcategories may include: Retirement Starting a family Stock market “play” money Any debt payments beyond the minimum can also fall under investments. When you pay down debt, you reduce interest charges, which is essentially earning a return. For debts, split up categories by the debt itself. You may have a subcategory for student loans, credit cards, a car loan, and so on. Personal budget categories: The fun stuff Half the point of a budget is freeing yourself from financial stress so you can enjoy your life. So it only makes sense that you’d budget for some fun times. Nothing wrong with spending money on yourself if you have some leftover, but you don’t want to go overboard. Here are some categories that typically land on the “wants” side of things (unless your goal is to be a travel writer, fashionista, or music critic): Recreation College is a time to get out there, try new things, grow through your hobbies, and have fun doing it all. So here are a few subcategories you may want to include in this section: Travel (for vacation) Concerts Streaming services and other subscriptions Hobbies Sporting events Of course, feel free to create other subcategories for recreation and fun if you have them. Personal spending You deserve to spend money on yourself sometimes. As long as you budget properly for personal spending, you can stay financially responsible while having a solid quality of life. With that in mind, here are some personal spending subcategories to consider: Gym membership Club dues Shopping Gifts Miscellaneous The miscellaneous category is where you can place any expenses you haven’t accounted for. Perhaps it doesn’t fit well anywhere else, or it's a large one-time expense you don’t want to mix in with your regular spending. The miscellaneous category can also be a place for you to allocate excess spending from certain categories. This helps you reduce spending elsewhere to stay on budget. Using a budgeting app to track your spending makes it easier to catch when you’ve overspent in a certain category. One more thing: Fixed vs. variable expenses Now you know some of the categories and subcategories to put in your budget. But you also need to know the difference between fixed and variable expenses to master personal budgeting: Fixed expenses Fixed expenses are expenses that don’t change in amount from month to month. They’re the easiest things to budget for because you know exactly what you’ll pay each month. That can also make them harder to cut, though, because their very nature doesn’t let you reduce the amount you spend so easily. For example, you can’t really change your rent without moving or your car payment without getting a new car. There is some flexibility, though. “Wants,” like your Netflix subscription, are easier to cut because you can change your plan or drop the subscription completely. Variable expenses Variable expenses can change from month to month. This makes them slightly harder to budget for, but after a few months, you can get a general range for what you spend on them. For instance, take your electric bill. If you live in the same place for more than a year, you get a general idea of how much you pay each month throughout each season. You can then plan your monthly budget around that range. That said, you can cut most variable expenses by using them less.  Back to the electricity example—there are plenty of ways to reduce energy use and slash that bill. It’s time to make your budget Everyone’s budget will look different. People have different incomes and priorities, and they’ll spend their money accordingly.  That said, most college students will have many of the above categories somewhere in their budget. These are some of the most common expenses you’ll encounter in college and beyond—don’t forget to include them in your budget if they’re relevant to your circumstances. Now that you know what to include in your budget, it’s time to learn how to make that budget. Check out our post on college student budget templates if you need help with that. And if you want an easy way to save money and pay for your expenses, Mos offers fee-free banking for students, a cashback debit card, and scholarship application support.

Taking your college finances into your own hands? Here are some personal budget categories to help you create your budget.

Making a budget? Here are some personal budget categories to consider

One of the world’s top research universities, Stanford University is a well-known school located in the San Francisco Bay Area. The school was founded in 1891 and has since grown to become one of the most prestigious schools in the United States. If you’re a high school student who is interested in applying to Stanford but needs to figure out how you can afford attending, here’s what you need to know. A snapshot look at Stanford  Stanford is a private research university located in Stanford, California. It has a strong reputation for academics and research, often ranking in the top 10 universities in the US and having academic rivalries with Ivy League universities. In its own words, Stanford aims to be a place of discovery, creativity, and innovation. With its campus located in the San Francisco Bay area—near both San Francisco and San Jose—students have access to a highly innovative and vibrant part of the country. Thanks in part to this innovative atmosphere, Stanford is regularly ranked as one of the top schools for attracting start-up funding. Undergraduate students at Stanford can choose from 40 academic departments and more than 69 majors. For graduate students, Stanford offers more than 200 fields of study. The school boasts more than 80 Nobel laureates among its faculty, staff, and alumni network. Outside of classes, off-campus students can participate in campus life along with the 13,000+ on-campus students. Stanford has more than 625 organized student groups and clubs. Those interested in athletics can participate in 36 varsity and 33 club sports as either players or spectators. Ranking: 6th in national universities Size: 16,937 students Demographics: 50% male, 50% female Acceptance rate: 4% Average GPA of accepted students: 3.95 Key dates and deadlines (2022): Application deadline: January 5th Financial aid deadline: February 15th A look at scholarships offered by Stanford Everyone knows that college is expensive. Some families spend years or even decades trying to save for their children’s college education but find themselves unable to save enough to pay for the full cost of tuition. If you need some help paying for college, the best thing that you can do is apply for scholarships. What makes scholarships so great as sources of funding for college is that they’re like free money that you can use to pay for school. You can apply the funds to tuition and other educational expenses without having to worry about paying the money back. There are lots of ways that you can earn scholarships. Commonly, these are awarded based on financial need but you can also get awards based on academic or athletic merit. Stanford offers many scholarship opportunities to its students. Best of all, there is no need to submit additional applications to apply. You’re automatically considered for these awards based on the information in your application, FAFSA, and CSS profile. Stanford, specifically, notes that all university scholarship aid is awarded on the basis of financial need rather than academic or another merit. One unique financial aid program Stanford offers is the Knight-Hennessy Scholars program. This program offers a fellowship covering up to three years of tuition for graduate students. It “cultivates and supports a multidisciplinary and multicultural community of graduate students from across Stanford University, and delivers engaging experiences that prepare graduates to be visionary, courageous, and collaborative leaders who address complex challenges facing the world.” If you’re a student from California, you can also benefit from the Cal Grant Program. This program works like a scholarship, giving you funds that you don’t have to pay back. Don’t forget, there are plenty of opportunities outside of the scholarships offered by Stanford. You should take the time to apply for the scholarships offered by local businesses, charity groups, and other organizations. Even if you only get a few hundred dollars from these programs, every little bit helps. If you look carefully, you can find scholarships for almost anything. If you’re having trouble finding opportunities for students like you, Mos can help. Our financial aid tips and tricks page is a great resource for students who need advice on getting the most aid possible. Student loans Savings and scholarships are two of the best ways to pay for college, but if you find that those aren’t enough to cover your bills, you have other options. Many people choose to borrow money to pay for school, investing in themselves by furthering their education. The obvious drawback of student loans compared to scholarships is that they’re loans. You’ll have to pay them back, plus the interest they’ve accumulated, over time. Stanford’s financial aid office has a webpage that outlines the different loan programs available to its students. For most students, the best source of loan funding is the federal government. You can get Federal Direct Loans in two different forms: subsidized and unsubsidized loans. Subsidized loans are the better of the two. With these loans, the federal government pays the interest that accrues while you’re in school. This makes them cheaper than unsubsidized loans. With unsubsidized loans, interest starts to build up on them right away. One major benefit of federal loans is that there are multiple aid programs built into them. For example, once you leave school, you can sign up for income-based repayment, which can make your monthly payments more affordable. Some students can even qualify for loan forgiveness over time, reducing the total amount they have to pay. Once you’ve maxed out your federal loans, the next place to look is private student lenders. These are banks, credit unions, and specialized companies that offer loans to students who need help paying for college. However, private loans are usually more expensive than federal loans. They also lack protections and perks like loan forgiveness and income-based repayment. These should be your last resort after exhausting your federal loans. Student loans can be complicated, so if you want a more detailed breakdown, you can read our article on how student loans work. FAFSA  The most important thing for every student who needs help paying for college to do is to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is a universal aid application used by the federal government, schools, and state governments. The information in your FAFSA can make you eligible for scholarships, grants, and loans. When you fill out the FAFSA, you’ll have to provide some information about your family’s finances, such as how much you make each year and how much you have saved for college. Based on the information you provide, the government and schools will calculate your expected family contribution to the cost of your education. They will then compare that number to your school’s cost of attendance to determine your total financial need. The greater your financial need, the better your chances of getting need-based aid, such as federal loans and grants or scholarships from your school. Keep in mind that most schools don’t guarantee that they’ll meet 100% of your financial need, so you’ll have to come up with the remaining money another way. The FAFSA opens on October 1st for aid awarded in the next academic year. The deadline for the application is June, but it’s usually a good idea to fill it out as soon as possible. California has a March 2nd deadline for many state programs, and some aid programs award money on a first-come, first-served basis. Filling out the FAFSA can take some time, so prepare yourself by learning more about how long it takes to complete the FAFSA. Stanford financial aid FAQs  Let’s answer a few questions you may have about financial aid at Stanford. What is Stanford’s cost of attendance? Stanford’s cost of attendance is $82,162 per year. Of that amount, $57,693 is tuition, and $18,619 is room and board. Students may be able to secure a lower cost if they live off campus or with family. Can out-of-state students receive financial aid? Yes, Stanford offers financial aid to students from outside of California. However, non-resident students may not qualify for state aid programs like Cal Grants. Can non-citizens or permanent residents receive aid? Yes, Stanford offers scholarships and other aid to international students, non-citizens, and non-permanent residents. This includes undocumented students regardless of their DACA status. Immigration status is not a condition of admission. How many students pay no tuition at Stanford? Stanford does not publish information on how many students pay no tuition. However, in 2019, 54% of first-year students received need-based financial aid, and the average need-based award totaled $55,000. When do incoming students and prospective students receive their financial aid information? Incoming students who apply for Stanford using restrictive early action receive their award notification on December 15th. Students who apply regular decision will receive their award info in April. When do transfer students receive their financial aid information? If a transfer student applies by March 15th, they’ll receive their financial aid package by May 15th. Does Stanford offer student employment? Yes, Stanford offers student employment as part of federal work-study programs. You can use the school’s career services platform, Handshake, to apply for on-campus jobs or seek a job off campus. What family income qualifies for financial aid? Stanford considers many factors when determining financial aid, such as family income and family size. Almost 100% of students with a family income under $150,000 receive financial aid. Universities like Stanford that you might be interested in  Stanford is one of the top universities in the United States, but there are many other options for academically-inclined students. If you’re interested in Stanford, consider these alternatives. Harvard University Located on the opposite side of the United States in Cambridge, Massachusetts, Harvard is one of the oldest universities in the United States. A member of the well-known Ivy League, Harvard is known for its rigorous academics. The school has more than 23,000 students and a powerful alumni network that includes multiple presidents, Supreme Court justices, and senators. Massachusetts Institute of Technology The Massachusetts Institute of Technology (MIT) is another top university located on the opposite coast from Stanford. Like Stanford, MIT is known for its academic rigor and focus on research and innovation. Many start-ups and technological innovations have come out of MIT, and its location in the heart of the Boston metro area gives students access to a city known for its academic institutions. MIT is also known for its vibrant pranking culture, with students having executed stunts such as placing a police car on the school’s Great Dome or replacing the John Harvard statue at Harvard University with a statue of the video game character Master Chief.  University of California, Berkeley For students who would rather remain in California, the University of California, Berkeley may be an appealing option. Like Stanford, UC Berkeley has a strong academic record, with nine Nobel laureates on its current faculty. One thing that sets it apart, however, is the fact that it is a public university. This means that tuition for in-state students is much lower than Stanford’s, at just $14,254. If you’re looking for a good college education at a low price and are a California resident, UC Berkeley might be the place for you. Conclusion Stanford is one of the highest-ranked, best-known, and most selective universities in the United States. If you can get in, you’ll be sure to receive an excellent education and join a large alumni network that you can leverage throughout your career. If you’re looking for the best way to pay for higher education, Mos can help.  Mos can help you get as much free money for college as possible by helping you apply for financial aid, grants, and scholarships—all in one place. Plus handpicked gigs for students to help you earn even more once you start classes. 

Read all about financial aid at Stanford University, including scholarships, loans, and grants.

Stanford financial aid: a complete guide

Let's face it: college doesn't come cheap. The vast majority of students don't have the financial means to pay for college tuition without some form of financial aid—and while student loans can help you pay for your education, they also have to be repaid someday. That’s why you should always try to prioritize gift aid like grants or scholarships if you can. Gift aid is financial aid from the government that you don’t normally have to pay back. When it comes to gift aid, one of your first ports of call should be the Federal Pell Grant. The US Department of Education’s Pell Grant is a generous and pretty inclusive source of gift aid for loads of college students. Generally speaking, you don’t have to repay any Pell Grant award you receive, either.  But it’s important to note that there are a few conditions under which you may be asked to repay your Pell Grant. This guide explains what the Pell Grant is, whether you need to repay the Pell Grant, and how to pay the Pell Grant back if you’re required. What is a Pell Grant? The Federal Pell Grant (or “Pell Grant”) is a financial aid program administered by the US Department of Education’s Federal Student Aid office. The Pell Grant is designed specifically to support undergraduate students who haven’t yet earned a degree. Unlike some other financial aid programs, the Pell Grant is a need-based form of gift aid. That means your eligibility will depend on your financial need.  But we’ll get to that in a minute. It’s also important to note that the amount of money you can receive through a Pell Grant varies based on a number of factors. These include your financial need, how expensive the tuition fees are at the specific school you’ve chosen, and whether you’re studying full-time or part-time. No matter how much cash you’re awarded, there’s a total annual cap you’ll be limited to. The maximum grant award you can receive through the Pell Grant changes every year, but the cap was placed at $6,495 for the 2021-22 academic year. How do you apply for the Pell Grant? To apply for the Pell Grant, you have to complete and submit a Free Application for Federal Student Aid (FAFSA) form. The FAFSA is the US Department of Education’s universal financial aid form, and it’s used by the federal government, state governments, and most colleges to determine how much financial aid you are eligible to receive. What are the Pell Grant eligibility requirements? The Pell Grant includes a pretty broad and inclusive set of eligibility requirements. In the US, around 34% of undergraduates receive a Pell grant every year—and the average Pell Grant award is $4,491. But because it’s a need-based grant program, it’s worth bearing in mind that not all students are going to be offered a Pell Grant. 51% of Pell Grant funds end up going to students whose families earn $20,000 or less annually. To qualify for a Pell Grant, you must: Be a US citizen (or eligible non-citizen) Be a current or incoming undergraduate student Not currently hold a bachelor’s degree Have an Expected Family Contribution (EFC) of $6,000 or less Be enrolled either part-time or full-time in an accredited college or career school While both part-time and full-time students are eligible to receive a Pell Grant, you should note that part-time students generally won’t receive as much funding as full-time students. That being said, your school isn’t allowed to refuse your Pell Grant funds just because you’re enrolled half-time or less. There’s also one exception to the Department of Education’s rule on only being eligible to receive the Pell Grant as an undergraduate. You’re also likely to be eligible to get a Pell Grant if you’re enrolled in a post-baccalaureate teaching certification program.  It’s also worth diving a bit deeper into the Pell Grant’s rules on your Expected Family Contribution (EFC). Your EFC is the number that the US Government determines your family can responsibly contribute on an annual basis toward your college tuition.  That means they aren’t going to look at your parents’ combined annual salary and use that entire number as the amount they should be expected to pay for your tuition. Instead, they look closely at the financial information you include in your FAFSA to figure out an amount they think your family can realistically afford to contribute without putting them in a tough spot. To qualify for a Pell Grant, your EFC needs to be less than $6,000. One final point you should consider is that you may be eligible for the Pell Grant even if you or your parents aren't US citizens. There are exceptions made for some non-citizens—and even if you’re undocumented or are a Deferred Action for Childhood Arrivals (DACA) student, you may still be eligible to apply for state government grants or college-specific grants from your school instead. Pell Grant disbursement After you’ve submitted your FAFSA, you’ll get a financial aid offer letter from the university (or universities) that you’ve applied to. That offer will include a list of any scholarships, grants, and loans available to you—and once you’ve accepted that award, it’ll set the cogs in motion to receive your grant money. The process in which the cash from your Pell Grant award is distributed is called “disbursement.”  Normally, the US Department of Education will directly give the funds from your Pell Grant award to your college. Your college will then apply the grant money toward your tuition fees, administrative fees, and room and board (if you’re living in university-managed accommodation). If any grant money is left over after it’s been applied to your institutional fees, it’ll be paid directly over to you so that you can spend it on other educational costs. Do you have to pay back a Pell Grant? Okay: so we’ve covered what a Pell Grant is and how you can qualify. Now, let’s talk about repayment. Generally speaking, the answer is: no. You don’t need to repay a Pell Grant. That’s why grants are such a great way to fund your studies—they’re a non-repayable form of gift aid. But before you start jumping for joy, it’s important that you understand there’s a bit of fine print here. Translation: there are a few situations where you’ll need to pay back part or all of a federal grant. Don’t panic because these scenarios aren’t going to apply to most students. Let’s quickly break them all down. Do you have to pay back grants if you drop out?  If you withdraw early from the course that you’ve received a grant to pursue, then you may be asked to repay some or all of your Pell Grant. Normally, repayment is based on a pro-rata model—and so if you attended a college for 3½ out of 4 years, you’ll likely only be asked to repay your final semester’s worth of unused grant funding. Long story short: if you want to hold on to your Pell Grant money, don’t drop out of school. Do you have to pay back grants if your enrollment status changes? If your enrollment status changes, it’ll likely reduce your Pell Grant eligibility. That means if you’re awarded a Pell Grant as a full-time student but you switch to studying part-time, your award amount will likely get reduced. While you won’t be expected to repay your entire grant as a result of that eligibility shift, you’ll probably get asked to repay a relative proportion of the original award. The silver lining here is that if you reduce your attendance from full-time to part-time, your tuition fees will probably get reduced as well. That means even after repaying part of your grant, you shouldn’t be any worse off financially. How do you pay back a Pell Grant? Let’s say that you decide to drop out of school or drastically reduce the number of hours you’re at school. You’ll now likely find yourself being asked to repay some (or all) of your Pell Grant award. Fortunately, you don’t have to do a whole lot of work as part of the repayment process. If your grant eligibility is lost or reduced, the finance office at your college will get alerted automatically. Your finance office will then get in touch with you to let you know that you’ll need to make a repayment. This letter should spell out exactly how much of your grant must be repaid and how that amount was calculated. From the point at which you’ve been notified about your repayment due date, you’ll have 45 days in order to take action. That action must take 1 of 2 forms. You must either repay the money owed in full, or you must enter into an approved repayment plan with your school’s finance office. If you go for the second option and end up striking a repayment agreement with your college, your debt may get assigned to the US Department of Education for collection. That means your payments will go straight back to the federal government. Alternatively, the government might let your college keep the debt so that you’re making payments directly back to your school. It doesn’t really matter from the student’s point of view. Either way, you’ll be expected to keep up with monthly payments as outlined in your repayment plan. Each plan is unique to the student, so the amount owed and repayment length will depend on your grant, how it’s been reduced, and your financial means. What happens if you don’t pay back a Pell Grant? If you do end up in a situation in which you’ve got to repay part of your Pell Grant, it’s essential that you meet the terms of your repayment agreement. By failing to make your payments on time, your college’s finance office will typically pass your debt over to the US Department of Education (DOE). The DOE can then take action against you in a number of ways. These include garnishing the wages you receive from your employer or withholding any outstanding or future income tax refunds and other federal payments owed to you. The damage is a bit deeper than that, though. If you fail to pay back part of a Pell Grant that you’ve been asked to repay, that activity will then ultimately get reported to the 3 big credit rating agencies: Experian, Equifax, and TransUnion. This can be pretty bad news for you in the long run. That’s because these big credit bureaus catalog all of your reported credit history into a credit score which has a major impact on your life.  With a low credit score, you’ll find it extremely difficult to get a new credit card, qualify for a car loan, or get a mortgage. But even if you do qualify for credit with a bad credit score, the rates you’re offered will probably not be the best. That means shorter repayment timelines, worse interest rates, and fewer perks. Some utility companies even look at your credit score before deciding whether to extend service—and with a bad credit score, you might get asked to pay huge deposits. Long story short: if you get asked to repay all or part of your Pell Grant, do it. If you fail, you’ll regret it for a long time. Conclusion A Pell Grant is essentially free money to pay for college. If you qualify for one, that means it’s going to make paying for college that much easier. Fortunately, you don’t normally need to pay back a Pell Grant. It’s considered gift aid, which means the money you receive is a one-off cash award. That being said, it’s important to note there are a few circumstances in which you'll be required to repay it—and if you fail to meet the terms of that repayment plan, your credit score is going to take a beating. So, do you want to learn more about college grants? Join Mos now to learn about financial aid and get matched with loads of scholarships and other financial aid opportunities to help you make the most of your time in college. 

Wondering whether you'll need to repay your Pell Grant award? Check out this guide from Mos to find out.

Do you have to pay back a Pell Grant?

Founded in 1831, New York University has grown from its initial enrollment of 158 to have more than 50,000 students at its 5 campuses, including the main campus in Manhattan and its locations in Africa, Asia, Europe, and South America. NYU’s founders believed that cities are engines of creativity, so it leverages its locations in major world cities to provide students with unique educational experiences. Its mission is to be a top center of scholarship, teaching, and research internationally. If you’re considering attending NYU but need a hand paying for college, we’ll break it all down. A snapshot look at New York University  Located in the heart of New York City, NYU is an exciting university that focuses on research. The student body is diverse, with students from almost every state and more than 130 countries.  NYU includes 18 schools and colleges for its 53,576 students. Students can choose from one of the more than 400 academic programs offered by the institution, meaning there’s something for almost everyone at NYU. There’s also a host of online programs for students who want to continue learning over the summer or who can’t commit to studying on campus. Outside of classes, students have easy access to New York City, one of the largest and most diverse cities in the United States. Students can enjoy the city’s many sights and attractions, join one of NYU’s hundreds of student organizations, or participate in or cheer on the school’s NCAA sports teams. Ranking: 28th in National Universities Size: 53,576 students Demographics: 42% males, 58% female Tuition: $58,168 Acceptance rate: 21% Average GPA of accepted student: 3.7 Key dates and deadlines (2021): Application: January 5th Financial aid deadlines: February 20th A look at scholarships offered by New York University  A college degree is one of the most expensive things that you’ll ever pay for. It’s easy to spend tens or hundreds of thousands of dollars on college costs. There aren’t many people who can pay that out of pocket, so you’ll probably need some help. One of the best ways to get extra funds to pay for college is to apply for scholarships. Scholarships give you money that you can put toward tuition, fees, and other college expenses. Best of all, there’s no expectation that you pay them back.  There are lots of ways to get scholarship money. You can receive need-based financial aid or win scholarships based on your scholastic or athletic excellence. NYU offers a few different scholarship programs for its students. For example, the September 11th Scholarships offer aid to the dependents and spouses of firefighters, police officers, and emergency workers who died during the September 11th attacks. There are also more generic programs available to students from other backgrounds. NYU’s financial aid website has more information available. Even if you don’t receive a scholarship from NYU, don’t lose hope. There are scholarships available from other sources. Many businesses, community organizations, and other groups have their own scholarship programs. If you look carefully, you can find scholarships for almost everything you can think of! Taking just a few minutes to fill out scholarship applications can be worth hundreds or thousands of dollars toward your education. Mos’ guide to financial aid tips and tricks is one of the best places to check if you’re looking for strategies on how to receive the most financial aid. Student loans Though scholarships are, by far, the best way to pay for your degree, it’s hard to earn a full ride. If your family’s savings aren’t enough to make up the difference, you’ll want to turn to student loans. Student loans are special loans designed specifically to help students pay tuition, fees, and living expenses while they work on their degrees. The drawback of using a student loan is that you’ll have to pay the money back, plus interest. However, for many people, the cost of borrowing money is worth it to invest in themselves and their education. NYU’s financial aid website has some information about the different types of loan programs that are available to its students. For the majority of students, the best loan program available is the Federal Direct Loan Program. These loans, like their names imply, come directly from the US federal government.  There are 2 types of federal loans. Subsidized loans don't accrue interest until after you leave school. That means they’re less expensive than unsubsidized loans, where interest starts to build up right away. Federal student loans also have other benefits on top of interest subsidization. For example, students can sign up for income-based repayment plans to make their monthly loan bills more affordable. There are also loan forgiveness options that can help you eliminate a large portion of your debt, making it easier to afford the cost of college. If federal loans aren't enough to cover your remaining college costs, you can also work with private student lenders. These are banks, credit unions, and other companies that offer loans to students. However, it’s usually a good idea to maximize your federal loans before turning to a private loan. Private loans have higher interest rates and fees. They also lack perks like income-based repayment and loan forgiveness. Figuring out all the different student loan options, and choosing the right one for you, is hard. Our article about the different types of financial aid you need to pay back can help put you on the right track. FAFSA  Completing the Free Application for Federal Student Aid (FAFSA) is one of the most important things any student can do if they need help paying for college. The FAFSA is a universal student aid application that is used by federal and state governments and individual schools to make decisions about how much aid they should provide. Filling out one form can make you eligible for dozens or even hundreds of different aid programs. To fill out the FAFSA, you’ll need to sit down with your parents or guardians and answer some questions about your financial situation. Be ready to enter things like your annual income and the amount you’ve saved to pay for college. Based on your answers, the FAFSA will calculate your expected family contribution (EFC) to the cost of your education. Any costs above that amount are considered your financial need. You may be eligible for subsidized loans and federal grants, like Pell Grants, as well as other aid based on your financial need. Many schools also look at students’ needs when awarding aid, but keep in mind that most schools don’t guarantee that they meet all of their students’ financial needs. Ultimately, that means that you’ll need to make up the remaining costs somehow, often through student loans. There are also work-study programs that you can find, or you can try a part-time job to help pay for some of your education. If you’re ready to start filling out the FAFSA, be sure to set aside a good chunk of time. For more info, check out our article on how long it takes to complete the FAFSA. New York University financial aid FAQs  Here are some frequently asked questions about New York University. What is New York University’s cost of attendance? The cost of attendance at New York University is $64,481 for a commuting student and $83,250 for an on-campus student. Of these amounts, $58,168 is tuition. How many students pay no tuition at New York University? New York University doesn’t publish the number of students that receive a full ride at the school. However, 24% of its students received Pell Grants, and the average scholarship awarded to first-year students exceeded $37,000. Can out-of-state students receive financial aid? Yes, NYU students from outside New York can receive financial aid to help pay for college. Universities like New York University that you might be interested in  If you’re not sure that New York University is right for you, consider the alternatives. Columbia University Columbia University, like NYU, is located in the heart of New York City. It is one of the world’s top research universities and leverages its location within the city to attract a diverse and accomplished faculty and student body. Students at Columbia can take advantage of its location to experience the many attractions of New York City. While studying, they can choose from the university’s 3 undergraduate schools and 13 graduate schools while pursuing one of the university’s hundreds of courses of study. Research plays a major role at the university, with the school receiving more than $1 billion in funding annually and claiming 84 Nobel laureates among its alumni, faculty, and researchers. Outside of classes, students can join one of the school’s many arts, athletics, or community organizations. Boston University For students who want to experience a different world-class city, Boston University is a strong choice.  BU is home to more than 33,500 students and 10,000 faculty and staff. It is one of the top research institutions in the world and offers more than 300 programs of study for its students to choose from. With its main campus located on Commonwealth Avenue, students are a short walk from the Fenway neighborhood of Boston and have easy public transit access to downtown as well as the neighboring cities of Somerville and Cambridge, giving them access to a vibrant and diverse area. BU is also known for its athletics programs, particularly hockey, which students can cheer on during NCAA Division I matches against other Boston-area schools. Less athletically-inclined students can choose to join one of the university’s more than 400 clubs and student organizations. Northeastern University Northeastern University is another school located in Boston for students who want an urban school that’s located somewhere other than New York City. Northeastern has made a name for itself with its recent rise in the US News ranks, now finding itself listed at 49th nationally. The school’s main campus is located in the heart of Boston, with easy access to the Orange and Green lines of the MBTA, giving students an easy way to reach other parts of the city as well as neighboring areas like Cambridge. What sets Northeastern apart from many other universities is its innovative co-op program. Students on a 4-year degree plan will take 2 opportunities to leave their classes for 6 months and work full-time in their industry. Northeastern has more than 2,900 business partners locally and across the globe to provide these experiential learning opportunities to students. Students can also study at one of the school’s global campuses, which includes locations in Portland, Vancouver, Toronto, London, Seattle, and Silicon Valley. Outside of classes, students can cheer on the school’s Division I hockey team, which competes with other Boston-area schools or join one of nearly 400 student organizations, such as the chess club, ballroom dance club, or esports clubs. Conclusion NYU is a large school with a diverse student body and more than a dozen study sites across the world. If you’re looking for an exciting place to learn more about the world and other people, as well as the opportunity to travel to and study in some of the world’s top cities, NYU might be the right choice for you. However, keep in mind that its cost of attendance can be quite high, so you’ll need significant financial aid, or loans, to afford an NYU education. Once you’ve chosen which school to go to, don’t forget that everyone needs a bank account by the time they start college. If you’re looking for a good bank to work with, check out our list of the best student bank accounts. 

Read all about financial aid at New York University, including scholarships, loans, and grants.

New York University financial aid: a complete guide

We’re all familiar with the idea of income—it’s simply the amount of money you earn. Income could come from a job, business, or even from certain types of financial aid.  But what is discretionary income? This term is relevant for everyone, but it’s particularly important for students to understand because discretionary income levels can affect student loan repayment plans.  This comprehensive guide will cover what discretionary income is, why it matters, and how to calculate your own discretionary income.  What is discretionary income?  The simple definition of discretionary income is money that is left over after you pay for necessary expenses. Discretionary means “available for use at the discretion of the user.” Essentially, discretionary means that you have a choice in the matter. Required expenses are things like rent, utilities, and other bills. You can’t really choose to simply not pay rent—you’ll get evicted! Discretionary expenses are optional or flexible expenses, like dining out, activities, and shopping.  Discretionary income refers to the gap between your income and your fixed, required expenses. Let’s look at an example of a college student budget to illustrate.  Income: $2,600 ($1,000 from part-time work, $500 from parents, $1,100 from financial aid/scholarships) Mandatory expenses: $2,300 (rent, tuition, fees, meal plan, groceries, books, etc.) Discretionary income: $300 ($2,600 - $2,300) this money is left over for optional spending.  In this example, the student has a monthly income of $2,600 (including financial aid) and mandatory monthly expenses of around $2,300. This leaves the student with around $300 to spend as they please. This $300 is the student’s discretionary income.  Discretionary income vs. disposable income Discretionary and disposable are sometimes used interchangeably, but they have different meanings. Disposable income is the amount of money you have left after paying income taxes. In other words, it’s your take-home pay after you pay federal and state taxes. Discretionary income is discussed more in this article—it’s the amount of money left over after taxes and after any required expenses, like rent and groceries.  Why does discretionary income matter?  Discretionary income is important because it shows you how much money is available for optional expenses, savings goals, and more. Knowing discretionary income levels can help you keep your budget on track and avoid overspending.  The figure has another important role for students: It can influence how your student loan repayment plan is structured and how much you’ll have to pay each month. This can have a substantial impact on your finances.  For general budgeting  For people without student loans, discretionary income is simply relevant for determining how much “pocket money” you have.  It’s very useful to know this number ahead of time—or at least have a rough idea. Otherwise, you can end up overspending. For example, let’s say you earn $4,000 per month. That’s a lot of money, right! While $4,000 in your bank account may seem like a lot of dough, wait until you pay your rent, utilities, phone bill, buy groceries, and save a bit for a rainy day. You may find that you’re not left with much at all!  If you don’t use any sort of budgeting structure, you may simply not know where your money is going. Small expenses can really add up.  If you don’t prioritize the most important expenses (as well as your savings goals), you can end up living paycheck-to-paycheck for a very long time. Or worse, you can end up with an increasing level of debt.  By knowing your discretionary income upfront, you can be aware of what you’re spending on optional items—and if that aligns with your discretionary income. You don’t necessarily need to track every purchase or budget every dime—just knowing your rough estimate will be very helpful.  Some people adopt certain budgeting styles, as well. For example, the 50/30/20 budget states that you should aim to spend around 50% of your income on needs, 30% on wants (discretionary), and 20% on savings or paying down debt.  For student loan repayment plans  For students, and graduates with student loan debt, discretionary income is even more important to be aware of. This is because it affects the amount you’ll need to pay on income-based student loan repayment plans.  The higher your discretionary income, the more you’ll need to pay toward monthly student loan payments.  Basically, the federal government (which backs most student loans) allows you to pay a portion of your discretionary income toward your student loans instead of paying a fixed amount. This is helpful for new graduates and low-income people because it means you won’t need to pay as much when you earn less.  For most plans, the amount is 10% of your discretionary income. So if the government formula determines that you have $700 in discretionary income, your student loan payment may only be $70 per month.  However, “discretionary income” in this case is defined in a very specific way. It doesn’t look at your actual spending—it uses baseline poverty level information to estimate how much discretionary income you might have. See below for an explanation of how to calculate your discretionary income.  Keep in mind that this only applies to income-based repayment plans. There are a few different versions of these plans, including:  Revised Pay As You Earn Repayment Plan (REPAYE Plan) Pay As You Earn Repayment Plan (PAYE Plan) Income-Based Repayment Plan (IBR Plan) Income-Contingent Repayment Plan (ICR Plan) Each plan is set up a bit differently. In terms of discretionary income, here’s how they work: REPAYE plan, PAYE plan, and IBR plan: Generally require payments of 10% of your discretionary income ICR plan: One of either: 10 percent of your discretionary income, OR What you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income The rules vary, so be sure to check with your loan issuer for details. There are also different requirements to apply for these plans—see this overview for more information.  How to calculate your discretionary income  To calculate discretionary income in general, simply take your monthly income and subtract your mandatory monthly expenses.  If you earn $3,000 and spend $2,200 on required expenses, your discretionary income is $800.  To calculate discretionary income for student loan repayments, the math is different. It doesn’t look at your actual expenses but uses an estimate based on the federal poverty levels.  For most repayment plans, your discretionary income is calculated as the difference between your annual adjusted gross income (AGI) and 150% of the federal poverty level for your household size.  If your household size is one (and you aren’t a dependent for tax purposes), the federal poverty line is $13,590. You can multiply this by 1.5x (150%) to find the government’s estimate of your annual expenses. In this case, that figure is $20,385.  From here, take your annual AGI and subtract the figure you just calculated. If you earn $30,000 per year, you would subtract $20,385, leaving you with $9,615. This figure of $9,615 would then be what the government estimates your annual discretionary income to be.  Finally, divide that figure by 12 to get the monthly amount. In this case, that’s $801.25.  In this example, your monthly discretionary income estimate is $801.25. For most repayment plans, this means that you’d pay $80.12 per month (10% of your monthly discretionary income) toward your student loans.  To sum up, here’s how to calculate discretionary income for student loan repayment plans: Look up the federal poverty level for your household size Multiply this number by 1.5 Take your annual income and subtract the figure calculated in step #2 Divide by 12 to find your monthly discretionary income Want an easier option? Simply use a discretionary income calculator to find out.  Discretionary income for students: Impact on student loans  The government uses estimates of discretionary income to determine how much a borrower can reasonably pay each month toward their loans.  Instead of looking at actual expenses, the government uses a standardized system to estimate a borrower’s discretionary income.  Generally, the higher your income, the more you will be required to pay toward student loans. Again, this is only relevant if you’re on an income-driven repayment plan. Other plans have fixed payments. Private loans will also have fixed payments, so this is only for federal student loans.  This system is designed to help keep monthly payments affordable for student loan borrowers. It also provides a way for people to pay more as they earn more. For example, a fresh graduate might not have a job or much income—so their monthly payments would be very low (or even $0). As that person gets their first job, their discretionary income and monthly payments will increase. And if they land their dream job with high pay, they’ll have a much higher monthly payment.  How often does discretionary income change?  For student loan purposes, you are required to update your income level each year. This is done through your student loan issuer via a process known as recertification.  So each year, you will submit an updated application with details on your income level and household size. The loan issuer will then re-calculate your monthly payment requirements. Your payment amount may change slightly, even if your income does not substantially change. This is due to changes in the federal poverty levels used to calculate discretionary income.  In addition, you should submit an updated application any time you have a substantial change in income.  For example, if you lose your job, you should submit an updated application with your new income level. This will help reduce the amount of your payments for the rest of the year.  Likewise, if you get a new job with higher pay, you should update your application with your loan servicer.  How does discretionary income affect student loan repayments? Discretionary income affects student loan repayments for borrowers of federal student loans who are on income-driven repayment plans. Other loan types (like private loans) and other repayment plans are not affected by discretionary income level. In short, the lower your discretionary income, the lower your monthly payments will be. As your income increases, so will the required monthly payments toward your student loans.  Conclusion Discretionary income is simply the amount of money you have left over in your budget after paying for essentials. It’s an important number for everyone to be aware of, as it defines what optional purchases you can make.  For students, discretionary income also affects student loan repayment amounts.  Financially savvy students should check out Mos, the first bank account built entirely for college students! Mos helps students earn cashback, enjoy fee-free checking, save on tuition, and even find scholarships to apply for. Learn more today.  


Discretionary income refers to the amount of money you have left over after paying for essentials, like rent and food. Here’s what students need to know.



What is discretionary income?

Staying in control of your finances can be tough—especially if you’re a college student. Between classes, work, and trying to maintain some sort of social life, sitting around crunching numbers is the last thing you want to be doing. That’s where a budgeting app comes in. With the help of a purpose-built budgeting app, you’re able to score a constant, real-time view of all your income and expenses. That makes it a whole lot easier to make responsible financial choices and plan for your financial future. But not all budgeting apps are created equal—and some budgeting apps are going to be way more useful for college students than others. This guide explains what a budgeting app is, what a college student budget should include, the features you should look for in a budgeting app, and the best budgeting apps for college students. What is a budgeting app? Before we talk about the best budgeting apps for college students, it’s worth taking a step back and covering exactly what we mean by “budgeting app.” Simply put, a budgeting app is a software application that people can use to keep track of their personal finances. These apps could be in-browser or on a mobile device—and they’re designed to tabulate and assess all of the incoming and outgoing numbers that keep you moving. Those numbers could include everything from your income and expenses to your savings, debt payoffs, investments, and more. So, how is a budgeting app different from an accounting app? In a nutshell, an accounting app focuses on business expenses rather than personal expenses. Accounting software is designed to look at company income, overhead expenses, and corporate tax burdens that most individuals don’t have to worry about. Budgeting apps have gained a lot of traction over the past couple of years. 73% of smartphone users say they’ve used an app to manage their finances in the past month—and when you look at the benefits of a budgeting app, it’s not hard to see why. With a budgeting app, you can sync all your financial accounts so that you have one consolidated overview of your financial situation. You can get spending updates in real-time, which allows you to understand how much cash is at your disposal. One of the biggest mistakes people make about their finances is a lack of awareness about how much they’re spending every month. With the help of a budgeting app, users can organize their spending history into categories—and the best budgeting apps can then use that history to identify trends and make suggestions about how you may want to alter your spending habits. What should a college student budget include? If you want to use a budgeting app effectively, you will need to develop a clear understanding of what your college budget should include. At first glance, coming up with a smart college budget can be pretty difficult to crack. That’s because there are so many college costs you have to pay to get through school.  The College Board estimates a moderate college budget for an in-state student attending college comes in at $26,820. Go out-of-state, and your budget instantly jumps to an average of $43,280 per year. So, what expenses do you need to include in your budgeting app? Let’s quickly break down the top expenses that should be forming your budget as a college student. Tuition fees It won’t surprise you to know that college tuition is going to be the single greatest expense in your budget. Currently, the average tuition at a 4-year college in the US is $28,775 per year. That being said, it’s important to note that prices vary based on whether the school is public, private, in-state, or out-of-state. Although you’ve got to budget for these fees, it’s worth noting that financial aid will ordinarily cover the bulk of those expenses through loans, grants, and scholarships. Accommodation The second-greatest expense in your college budget is going to be room and board. After all, it costs money to live, right? The precise cost of your room and board will depend on whether you’re living on-campus or off-campus. But the average cost of room and board at a 4-year institution currently ranges from $10,216 to $11,945 per year. If you’re staying on-campus, some of these costs might be covered through financial aid. If you’ve organized a private rental, you’re probably going to be paying out of your own pocket—which means this is one of the first essentials that’ll need to go into your monthly budget. Administrative fees Admin fees aren’t usually sky-high—but they add up pretty quickly. We’re talking about fees like parking stickers, gym memberships, extracurricular activities, and everything in between. Most of these fees aren’t normally covered by financial aid, and they tend to come in waves throughout the year. That means you need to keep close tabs on future expenses and ensure you have enough money in the bank to cover them. Books and supplies Students are currently paying an average of about $1,334 on college textbooks and course supplies. This includes everything from your essential reading lists to things like field trips, lab supplies, and more. Again, these items are usually out-of-pocket expenses you must prepare for—so plan accordingly. New tech According to researchers, about 60% of college shoppers have to buy new electronics for each school year, spending about $306.41 per year. Here, we’re talking about your phone, laptop, tablet, headphones, and anything else you might need. These are all one-off expenses. But in this day and age, they’re also fairly frequent. Transportation Your average college student spends $1,050 to $1,800 on transportation costs. This covers a number of areas like bus fares, train tickets, car insurance, car payments, filling up with gas, maintenance, and loads of other extras. Again, this all adds up pretty quickly—and like a lot of these other budget lines we’ve already covered, transportation isn’t normally covered by financial aid.  Personal expenses Pretty much anything we haven’t covered can go into the “personal expenses” category. This might include your clothes, eating out, tailgating, going to the movies, toiletries, streaming services, and whatever else. The amount you’ll need to budget for in this area depends on your lifestyle and your income. But it’s important to remember that personal expenses add up really quickly. This is the first area you’ll normally need to cut back on when working to reduce your budget. What should I look for in a budgeting app? We’ve covered what a budgeting app is and what numbers you should consider when using that app. But there are loads of budgeting apps out there—and not all of them are great. When looking for the best budgeting apps, there are some key features you should be particularly focused on. The first one is price. There are some amazing free budgeting apps out there. Some might give you a free trial period, while others go straight into monthly or annual fees. You shouldn’t spring for the most expensive budgeting app just because it looks fancy— make sure you do your homework and pay what you can afford. Next, you should be looking for a budgeting app that can sync with other accounts. By syncing your app with multiple accounts like your checking accounts, credit card, digital wallet, savings accounts, or other types of bank accounts you may have, your app will give you a bird’s-eye view of your total financial landscape. Every budgeting app worth its salt should also include some form of bill payment or budgeting tracker. By setting up automatic payments or monthly reminders to pay upcoming bills, your app will make sure you never get any nasty surprises. Your ideal budgeting app will also have automatic transaction categorizing so you can quickly identify where you’re spending the most and why. Goal setting is an important one, too. A lot of budgeting apps will let you create different financial goals. You’ll be able to chart your progress in real-time and even set up multiple goal funds to save for different items (or an emergency fund). Finally, you may want to check out an app that offers budget sharing. If you split your finances with a roommate or a partner, using the same budget app will ensure you’re both on the same page at all times where your numbers are concerned. What are the best budgeting apps for college students? No 2 savers are identical, so the best budgeting app for you might not be the best for every other college student. But to help you sift through that never-ending sea of apps, here are 4 of our favorite budgeting apps for college students. Best app for saving: YNAB You Need a Budget (YNAB) is a budgeting app designed to help you plan ahead (rather than track your transactions). YNAB uses a zero-based budgeting system, which means that you have to make a plan for every single dollar that you earn. When you get paid, you can tell YNAB how much of your paycheck should be going toward different spending categories or savings goals. Just be aware that, unlike some other budgeting apps, YNAB isn’t free. After a free trial period, you’ll have to pay $14.99 per month. Best app for investing: Personal Capital Personal Capital is essentially a budgeting app for investors. If you’re investing in securities or crypto rather than just saving extra cash, this app will help you budget how you spend on your portfolio. Personal Capital also automatically tracks your purchases and investments to analyze your spending and where your investments are headed. Just be aware that you’ll need to pay a management fee of 0.89%—but you’ll get free access to Personal Capital’s money-tracking dashboard. Best app for couples: Honeydue Are you and your significant other already pooling some (or all) of your finances? Check out Honeydue. Honeydue is a budgeting app for couples that allows both users to sync bank accounts, student loans, investments, and credit cards onto one account. This lets both of you have a full picture of your combined finances—although it doesn’t let you choose how much you want to share with your partner. Honeydue is a free app, and it’s great for helping you and your partner look back and reflect on your spending habits. But it’s not ideal for forward planning. Best app for student banking: Mos Setting up an account with Mos is the way forward if you’re trying to sync all your existing accounts to have a singular bird’s-eye view for keeping track of spending. First of all, there’s no overdraft, minimum balance, or other hidden banking fees—even after you graduate. Considering that the average student spends $228 on banking fees each year, that’s decent savings. You can also sync multiple accounts, get instant access to more than 50,000 ATMs, select your favorite category and earn 1% cashback points on your daily spending. But one of the best bonuses with Mos is that you can use your account to find grants and scholarships you can get in 5 minutes or less. We even have advisors on hand to walk you through the application process. Conclusion Nobody wants to wake up to a bank notification saying they’re in the red. Using a budgeting app, you can ensure that you always stay on top of your spending and that you’re living within your means. It’s important to remember that not all budgeting apps are created equal. You’ve got to consider what you’re looking for in a budgeting app and the key features that matter to you. But if you’re on the hunt for an all-around student banking app to help you make the most of your existing accounts and spending, Mos is definitely worth checking out. So, what are you waiting for? Join Mos.com today and start taking control of your finances. 

Want to get control of your finances? Check out this Mos guide on the top budgeting apps for college students.

4 best budgeting apps for college students for 2022

For a lot of families, paying for college might feel like climbing Mount Everest. The cost of attendance includes a whole range of different expenses—and those expenses just seem to climb higher and higher every year.  That means you’ve got to start saving as soon as you can to fund your college education. Fortunately, there are plenty of tools to help you achieve that. Options include state-backed investment plans, federal grants, scholarships, personal savings strategies, and more. We’re here to help you unpack all of these options. This guide explains how much it costs to go to college, how much you’ll need to save for college, and a few of the top programs you can use to help. How much does it cost to go to college? You don’t need to have a degree in rocket science to know that college doesn’t come cheap. But how much do you (or your family) actually need to save for college? The College Board says an in-state student at a 4-year public college should budget to spend around $26,820 per year—while an out-of-state public college student should have an average budget of $43,280. Private colleges come in slightly higher at $54,880 per year. But the truth is that there are a couple of strands to this. Fortunately, we’re here to help. Let’s break them down. Cost of attendance The biggest expense you have to save for is your college tuition fees. Last year, private US colleges and universities averaged $38,185 per year for tuition and administrative fees alone. Public out-of-state colleges are a bit cheaper at $22,698 per year, while public in-state colleges come in at an average of $10,338 per year. Multiply that number by 4 years, and we’re talking about big money no matter where you’re going to school. But it’s also important to remember that tuition fees go up every year. Last year, the cost of attendance shot up between 1% and 2%—which means if you’re going to graduate from high school in a few years, your savings target will need to be higher than the amounts we’re talking about.  Fortunately, you can normally cover a large proportion of this expense through financial aid like federal student loans, scholarships, or grants. Room and board Your second-biggest college expense is going to be accommodation. At your average 4-year college, annual room and board ranges from $10,216 to $11,945 per year. This cost is going to vary quite a bit depending on whether you’re living on-campus or off-campus. But the way you pay that cost will vary, too. That’s because some financial aid can be used to cover university-managed accommodation—but if you’re renting privately, you’ll generally be paying out-of-pocket. Textbooks College textbooks can be pretty pricey, too. At a public 4-year college, students pay an average of $1,334 per year for their books and supplies. Fortunately, it’s possible to shave a bit off some of these costs if you buy secondhand, rent your textbooks, or get them from the library. Transport You’ll also want to save for future transport costs. If you’re going to commute to campus or keep a car, you’ll need to think about car payments, car insurance, fuel, maintenance, and parking stickers. If you don’t drive, you’ll be looking at a bus pass, train tickets, Uber fees, or maybe even a new bike. All these costs add up quickly—and you need to consider the cost of traveling home, too. When you pool all these costs together, it’s estimated the average college student will have to spend between $1,050 and $1,800 on transportation per year. Personal expenses Like it or not, it costs money to live. Translation: you shouldn’t just be saving for your tuition and accommodation. You’ll also need clothing, food, toiletries, and money to fuel your social life in college. This is the area that can spiral out of control the quickest, so you’ll need to be careful about how much you spend. How much money should I have saved by the time I go to college? You’re probably looking at these huge sums and panicking a little bit—but don’t. Although the cost of attending college is pretty astronomical, you’re able to fill in a lot of gaps with financial aid. Translation: you don’t need to save up a whopping $200,000 before you graduate high school. We’ll explain why. Saving for college using the ⅓ rule Generally speaking, you should try to save around a third of your target amount. Scholarships, financial aid, student loans, or your current income can normally fill the remaining ⅔.  This is called the ⅓ rule—and it can make saving for your college education a lot less stressful. For example, let’s say you’re 16, and you want to save to go to a public out-of-state university. As a middle-of-the-road estimate, you’d want to look at the average annual cost of $22,698 and multiply that by 4 years’ worth of tuition. That gives you an estimated cost of $90,792. But take a breath. This isn’t your savings target.  Using the ⅓ rule, you’d want to save around $30,264 by the time you’re ready to go to college. When you reach the stage where you’re applying for schools, you’ll be able to get a more accurate estimate about the exact amount you’ll be paying off in tuition fees. You’ll also be able to sit down and apply for scholarships, financial aid, and student loans to make up the difference. That way, a huge chunk of your college tuition is already taken care of before you even move into your dorm. What's the 50/30/20 budget rule? The 50/30/20 rule is a pretty straightforward budgeting method that can help you manage your money effectively. It’s a great way to save for your future education. But if you’re a current student, the 50/30/20 budget rule is also a great way to make sure you’re meeting your budget requirements. The basic rule is that you need to divide your monthly income (after-tax) into 3 different spending categories: 50% for what you need, 30% for what you want, and 20% for saving or paying off any debts. In this case, you’re looking at using the 20% you’re saving towards the ⅓ of your college expenses you’re pooling together. That might mean that if your family makes a combined monthly income of $8,000, you should be aiming to put away around $1,600 per month toward future college expenses. This amount might need to be divided between multiple savings accounts (after all, your family should keep a rainy day fund and might have other stuff to be saving for, too—but you get the idea). How to save for college We’ve covered why you should save for college and the strategies you can use to do so. Now, let’s talk about the tools you may want to consider to make those savings go further. 529 college savings plan A 529 plan is a special savings account that’s designed specifically to help you and your family cover higher education expenses—and it has good tax advantages. 529 plans are essentially investment accounts that let parents or guardians invest after-tax cash into low-cost and low-risk diversified security funds. They’re essentially education-specific brokerage accounts. But when you’re ready to withdraw cash to pay for college, you can take that money out tax-free (as long as it’s for a “qualified educational expense”). This means you and your family will be able to save for college while slashing the amount of taxes you’ll have to hand over to the government. Most 529 plans are state-specific, and there are 2 types available: prepaid tuition plans and education savings plans. With prepaid tuition plans, family members prepay for your college by purchasing credits in advance. They can also pay future tuition costs at a particular school with a contract.  Education savings plans are the most popular option. Unlike prepaid tuition plans, education savings plans let you make withdrawals for more than just tuition fees. This enables you to use a 529 plan to pay for things like textbooks and accommodation. Coverdell ESA A Coverdell Education Savings Account (ESA) works a lot like a 529 plan. A Coverdell ESA lets you invest money into an education-specific account and then make withdrawals for qualified expenses in the future. There are a couple of key differences, though. Coverdell ESAs let you invest in a broader range of self-directed investments. That means you can choose from a wider range of securities and risk levels—and ESAs normally use a broader interpretation of “qualified expenses.” That means you’ll be able to use ESA funds on things other than tuition fees and university-managed accommodation. The biggest catch is that a Coverdell ESA has a far lower contribution limit than a 529 plan. That means it’ll take longer to save a big nest egg. Apply for grants and scholarships Saving for college isn’t just about pooling as much cash together as you possibly can before graduating high school. You should also aim to get at least ⅓ of the cash you need to pay for school through grants and scholarships.  College grants are a form of financial aid called "gift aid." Gift aid is funding that you don't need to repay. You can get grants from your state government, your college, or the federal government. Although federal grants are normally gifted based on your financial need, the US Department of Education uses a pretty inclusive set of eligibility requirements. That’s why around 34% of all undergraduate students receive a federal grant every year—and those awards average $4,491 per student per year. Fortunately, applying for those grants is pretty simple. You’ll be able to apply for most federal and state grants using a single form: the Free Application for Federal Student Aid (FAFSA). If you need more guidance on the FAFSA, don’t worry—we’ve got you covered. Scholarships work differently. Some scholarships are need-based, some are based on your academic results, and others might be more niche and based on your background or your interests. The good news is that there are a huge amount of scholarships that you can choose from. This year, there are around 1.7 million scholarships from colleges, charities, companies, community groups, employers, trade schools, religious groups, and loads of other organizations. Unfortunately, having such a huge number of scholarships to choose from can make finding the right scholarship feel like finding a needle in a haystack. But don’t panic because this is where Mos comes to the rescue. By setting up a student account with Mos, you can get instantly matched with loads of scholarships that are absolutely perfect for you. All you need to do is to take a short quiz. You can even get one-on-one help applying for scholarships from our expert advisors. Conclusion Saving for college is incredibly important—and the earlier you start, the better. After all, college tuition only seems to get more expensive every year. Fortunately, you don’t have to worry about saving $200,000 for your college education. That’s where financial aid comes in. Using the ⅓ rule, you should be aiming to save around ⅓ of the total amount you think you’ll need to pay for school. Financial aid like grants, scholarships, and federal student loans should be able to pick up the rest (alongside income from you or your family to pay for everyday personal expenses in the future). Fortunately, there are plenty of great savings programs and investment tools that you can utilize in order to start saving for college now. But if you’re not sure where or how to get started, Mos is here to help you every step of the way. Join Mos now to take control of your finances and get matched with loads of scholarships and other financial aid opportunities to help you make the most of your time in college.

Check out this guide from Mos to find out how much you need to save for college (and how you can do it).

How much to save for college (and programs that can help)

College is expensive—and we're not just talking about tuition costs. Living expenses, textbooks, and other college-related costs add up quickly. That's why it's important to have a handle on your finances from the get-go. But student personal finance isn’t just about learning how to budget and juggle expenses. It’s also about embracing adulthood, building sound financial habits, and making tough, responsible decisions with your money. In this guide, we’ll do a deep dive into personal finance for college students. Along the way, you’ll learn why personal finance is so important and also explore the 10 pillars of personal finance that'll help shape your financial future. Why is personal finance so important for college students? Let's pop the top off personal finance and review a few of the reasons college students should care about it. Personal finance is a critical life skill that extends beyond college Strengthening your personal finance skills in college can help you live a healthier, wealthier life after you graduate. After all, personal finance is a lifelong journey. Think about it this way—the decisions you make about your money in college will influence how you approach fiscal responsibility after you've left campus. So, it's never too early to start learning about personal finance and how to make smarter financial decisions. You'll learn to live within (or below) your means As a college student, you'll probably live on a shoestring budget—and that's not an entirely bad thing. Living on a tight budget will teach you to be more mindful about your spending and how to live within your means.  Both of these skills will come in handy when you're out of college and have to juggle rent, transportation, utilities, student loan payments, and other adult expenses. Living within your means isn’t about skimping out on all the fun stuff—after all, college is a time for self-discovery—it simply means prioritizing needs over wants and spending a modest amount of money on things like partying and pizza. It's part of growing up Whether you like it or not, you'll need to take ownership of your finances at some point. And while it might seem like a daunting task, honing your personal finance skills in college can give you the confidence and independence to embrace adulthood—financial responsibilities and all. The 10 pillars of personal finance for college students Now that we've talked about why personal finance is important for college students, let's get into the nitty-gritty. Here, we'll cover the 10 foundational personal finance strategies for college students.  1. Get real about your needs and wants Sure, a big part of college is having a good time. But many college students conveniently forget that those “good times” may cost a lot of money, leaving less cash for important, essential needs.  Put more bluntly; if you're spending your rent money on nights out and pricey new clothes, you're earning yourself a big fat "F" in personal finance. To avoid this, start by jotting down a list of your needs and wants. This helps you prioritize your spending and avoid making unnecessary impulse purchases. Not sure about the difference between a need and a want? Here's how it works: Without needs, you'll die. Without wants, you'll feel bored. More specifically: Needs are things you need to stay alive, like food, water, and shelter.  Wants are non-essential items that can increase your quality of life but aren’t necessary for survival, like a Phineas and Ferb tattoo across your chest or a brand new iPhone. 2. You don’t need an MBA to budget money Budgeting isn’t an ancient secret guarded by an elite squad of MBA graduates. In fact, it’s quite simple.  Here's what budgeting boils down to: You track your income and expenses over a certain period—usually a month. This gives you a clear picture of where your money is going and helps you make informed decisions about your spending.  If you want to get more technical, there are different types of college student budgets, like the 50/30/20 budget or the envelope budget. But for our purposes, we'll just stick to the basics. Here's how to create a budget in 5 simple steps: Track your income. Track your recurring and everyday expenses. Compare your income and expenses.  Make adjustments to ensure your spending doesn't exceed your income. Review and revise your budget every week. That's it. Now, you may not have a "monthly income" because you receive your financial aid in a lump sum at the start of each semester. In which case, you can still use the budgeting tips outlined above. Simply track your expenses over a semester, and keep a running total of how much of your financial aid money you have in the bank as you plan your budget each month. 3. Emergency funds aren’t a reset button for bad decisions Emergency funds are there for emergencies—like if you have an unexpected bill or your car needs a sudden repair. What emergency funds are not for is bailing you out after a string of bad financial decisions, like going on a Spring Break vacation you clearly can't afford or buying a new wardrobe every semester. We get it; it's tempting to use your emergency fund as a personal piggy bank. But if you do that, you'll put yourself in a tough spot the next time you have an actual emergency and no money to cover it. Now, if you don't think an emergency fund is necessary, consider this: 37% of Americans don't have $400 in savings to cover an emergency. So if you can start building your emergency fund while you're in college, or at least getting into the habit of setting aside money for emergencies, we recommend you do it. But how much should you set aside in your emergency fund? While you're in college: A good rule of thumb is to have at least $1,000 dollars you can immediately access in case of an emergency. After you graduate: You'll want to save a least 3 months of living expenses in case you lose your job or have another financial setback. 4. Student credit cards are dangerous in greedy hands (but useful tools in smart ones) When used responsibly, credit cards can help you build your credit score, which can lead to better interest rates on things like personal loans and mortgages. But when used recklessly, credit cards can ruin your credit score and leave you in debt for years. Here are a few tips to help you use credit cards responsibly: Credit card debt is a difficult burden to carry, especially when you have student loan debt. So if you’re not sure you can handle the responsibility of a credit card, don’t get one. 5. Your student loan isn’t free money Like credit cards, your student loan isn't free money to spend on whatever you want, so treating it like a "fun money" ATM isn't a great idea. For example, let's say you're strolling through Target, and you see they've got PS5s in stock for $500. And having just received your financial aid, you decide to “treat yourself” and buy it. End of story, right? Not quite. You forgot about that pesky little thing called interest. Now, the fortunate part about federal loans (and most private loans, too) is that they use simple daily interest. This means you're only charged interest on the principal balance, not your initial balance plus any accrued interest, as you are with compound interest. Simple interest on federal student loans is calculated using this formula: Interest Amount = (Outstanding Principal Balance x Interest Rate Factor) x Number of Days Since Your Last Monthly Payment (typically 30 days) Note: Interest Rate Factor is your loan's annual percentage rate (APR) divided by the number of days in a year. As of 2022, the average interest rate among all student loan borrowers is 5.8%, or an interest rate factor of 0.01589% (0.0001589 as a decimal required for calculations). Getting back to our PS5 example, until you pay off that $500, it collects $2.38 in interest every month: ($500 x 0.0001589) x 30 = $2.38 And if it takes you 10 years to pay your balance, the $500 you spent on a PS5 will collect $285.60 in interest charges. In other words, your PS5 actually cost you $785.60, or about 57% more than what you originally spent. Think twice before spending money you don’t have on things you don’t need that end up costing you a lot more when the bill is due. 6. Saving & investing pay off (literally) You may not think you have much cash to save or invest while you're in college, but even small amounts can add up over time—especially if you start early. For example, say you turn 18 and decide to invest $75 every month. If your investment earns a compounding return of 5% every year, you'll gain $15,786.26 in compound interest, and your total investment would be worth $35,661.26 when you turn 40. Not bad for 75 bucks every month, right? If you're interested in learning more about investing, here are a few things to remember: Speak with a financial planner: investments can be risky if you're a newbie and have no idea what you're doing, so talk with a pro before you invest. Avoid meme stocks: better yet, avoid WallStreetBets and SuperStonks on Reddit entirely—these subreddits do more harm than good for novice investors. Opt for low-risk investments: investing in a Roth IRA or in exchange-traded funds (ETFs) like the S&P 500 ETF are low-risk investments with consistent returns over time. They're simple investment strategies but will teach you the ropes of investing before you move on to advanced strategies. The bottom line is learning how to save and invest with small amounts of money in college can cement the skills you need to build an impressive investment portfolio when you start making better money after college. 7. Choose a bank that treats you like a best friend The best bank for college students is one that won't nickel and dime you with unnecessary fees—and also has checking and savings accounts specifically for students.  When choosing a student bank account, look for one that offers: No monthly maintenance fees A low or no minimum balance requirement A mobile app for easy banking on the go Access to a large fee-free ATM network Rewards FDIC Insurance No-hassle customer service Not to toot our own horn, but if you're looking for a bank that understands what it's like to be a college student, check out Mos (that's us!) Not only does Mos offer banking services to college students, but we can also: Hook you up with a dedicated financial advisor. Match you with hundreds of scholarships and grants. Negotiate with your school to get you a better financial aid package. 400,000 students have already let Mos into their lives, so if you'd like to join the party, we'd love to have you. 8. Don’t pay full price for anything Embrace student discounts, secondhand shopping, and buying things on sale. Seriously, paying full price for goods on a student budget is like setting money on fire. Here are some of the best ways to score student discounts: Flash your student ID: you'll find student discounts on everything from clothing to food. And if you're not sure whether a store offers a student discount, it never hurts to ask. Look for student discounts online: plenty of companies offer student discounts when you verify your student status on their website (usually by signing up with your “.edu” email address). Download the Unidays app: Unidays gives you instant access to discounts for over 800+ brands, both online and in-store. And the best part? It's free! You can also save money by shopping second-hand. Browse through your local thrift store for clothing or hit up Craigslist for some furniture or household goodies. Of course, you can also save money by simply waiting for sales. You’ll need a bit of patience, but it's totally worth it when you finally score something you’ve been eyeing for a fraction of the original price. 9. Insurance: protect your stuff and your health As a college student, you'll want renter's insurance to protect your belongings in case of theft, fire, flooding, or some other disaster. Renter's insurance is pretty affordable, with the average policy costing about $15 per month. However, coverage limits vary, so shop around for a fair policy. And lest we forget about health insurance.  If you're still on your parents' health insurance plan, great! But if you're not on their plan or your school is outside of your parents' healthcare network, you'll need to find a different healthcare insurer. Thankfully, most schools offer affordable student health insurance plans. 10. Plan for your post-college finances After you graduate college and enter the workforce, you'll have more expenses—including that big, bad student loan repayment. If you've honed your personal finance skills throughout college, managing these "grown-up" expenses will feel less demanding. Still, it's important to have a solid plan for your post-college finances, which should include: Tackling student loan debt: create a budget and timeline for paying off your federal and private loans. If you're struggling with your monthly payment, you may want to refinance your loan to get a lower interest rate. Saving for retirement: If your employer offers a 401k, sign up and start contributing as much as you can. If not, continue contributing to the IRA and/or other investments you started in college. Building a proper emergency fund: if COVID has taught us anything, it's that you never know when a layoff will hit. Now that you're on your own, you'll need a proper emergency fund that covers at least 3 months of living expenses. And that’s a wrap on personal finance for college students Personal finance can be a tricky subject. But like anything, the more you work at it, the better you'll be at money management. Use this guide as a resource to help you navigate personal finance during your college years and beyond. And if you want more information, strategies, and tips on college student finance, learn with Mos. 

Learn about the importance of student personal finance and explore 10 pillars of personal finance for college students that’ll shape your financial future.

A guide to personal finance for college students

Going to college is a big deal. When you head off to college, you’ll learn new skills, make friends for life, and take the first step toward establishing a career. It’s an amazing and once-in-a-lifetime experience—but it’s also a big adjustment. At college, you’re probably going to find yourself living on your own for the first time. You may be in a new town dealing with a way bigger academic load. You’ll also be responsible for managing your own finances. So, how do you prepare for college? You should start by trying to relax. Getting ready to go to college shouldn’t be scary. This is an incredibly exciting time. You’ve just got to make sure you do your research and stay organized. This guide will explain when you should start preparing for college and what you should do to get ready in terms of your class schedule, financial aid, taking standardized tests, and everything in between. When should preparation for college begin? Everybody’s different, right? Well, the same rule applies to college prep. The right time for you to start getting ready for college might not be the same as your friends, so don’t stress about comparing yourself to where everybody else is on their college journey. But generally speaking, you should start preparing for college during your freshman or sophomore year of high school at the very latest (at least from an academic point of view).  Why start prepping freshman year? Above all else, because you’re starting the year with a clean academic slate. It doesn’t matter what your grades were in middle school because college admissions departments are only going to be looking at your high school grades. Translation: freshman year is when you really need to start paying attention and getting that homework done. When you hit your sophomore year, you’ll need to start considering what your course load looks like, the extracurriculars you’re taking part in, and standardized testing. From a financial point of view, you should start preparing for college even earlier. One option is to chat with your family about investment opportunities like setting up a 529 college savings plan or a UGMA custodial account now so that they’ve got time to start saving before you graduate. These investment vehicles will enable your family to save for your college tuition over a number of years—with a couple of big tax advantages, too. If you’re already in high school, it’s not too late to prepare for college financially. But instead of trying to set up an investment account with your family, you’ll need to focus your search on potential financial aid opportunities (but we’ll cover that a bit more in a minute). What should you do to get ready for college? You've got to do a couple of key things before you get to college, including finding the right school, bulking up your resume, practicing your testing skills, and researching financial aid. To help you get started, let’s break down each step you’ll need to take. Start looking for the right college An important step in thinking about college is considering where or what you’d like to study after high school. Consider your extra-curricular activities, career fields that interest you, and locations you may want to check out. You'll also need to chat with your family about finances to understand which schools you can realistically afford to attend. That being said, don’t get discouraged—there are loads of financial aid opportunities out there. After you’ve started to develop a long list, you should visit a local school. You can even find a campus tour near any vacation destinations you've got planned. Visiting college campuses or going to college fairs will give you an idea of what to expect at other schools, and you may be surprised at what you experience. You'll also get an important taste of college life and the overall college experience. This should help you in your college search by showing you first-hand what you are (or aren't) looking for in a school. Get involved in extracurricular activities Taking part in activities outside of your schoolwork makes high school a lot more fun—but it also gives you opportunities to learn new skills and explore your passions in ways that textbooks can’t offer you. More specifically, extracurriculars can help you develop your leadership skills, public speaking skills, ability to work as a team, creativity, self-awareness, and everything in between. Fortunately, these are exactly the sorts of skills that college admissions teams are looking for in applicants. That means, by getting involved now, you’re going to be making your future college applications stand out to admissions officers when it’s time for you to head off to school. Just make sure that you’re keeping a detailed record of all your extracurricular activities. You may get asked about them on your college applications or in interviews. Bulk up your class schedule Like it or not, colleges are generally looking for a bit of rigor in terms of the classes applicants have taken in high school. That means you should try to kick it up a notch in your sophomore and junior years by taking classes that are as difficult as you can handle. This could include Advanced Placement (AP) classes, International Baccalaureate classes, or honors year classes—whatever your current school offers. If you’re applying to competitive colleges, having a more impressive course list is going to make a difference. But there’s another aspect to this, too. Taking AP classes in high school boosts your school transcripts to show colleges that you take your academics seriously. It also might save you money in the long run.  If you perform well enough in your AP courses or on an AP exam, it might count as college credits toward your college course work. As a result, you won’t have to take quite as many college courses to graduate (saving you valuable tuition money). You shouldn’t just be trying to take classes that sound hard. You’ve got to think about the electives you’re taking as well. It helps to take classes that are academically focused, like sociology, psychology, or computer science.  But if you’re wanting to go to an art college, it’d be pretty silly not to have taken a few art classes over the course of your high school career—so you need to be logical about this. Finally, it’s important that you do well.  Don't just bulk up your schedule with hard classes and then struggle your way through high school being miserable. It’s equally important that you’re getting good grades in the classes you’ve chosen. That means you should talk to your school counselor to figure out which subjects you excel in and what sort of academic levels you can handle. Start practicing your testing skills It might not be everybody’s favorite part of the college application process but colleges and universities use entrance exams as one of the top benchmarks for admission. As a result, you need to start familiarizing yourself with the standardized entrance exams the colleges you want to attend accept. Most colleges and universities in the US accept either the ACT or the SAT. Some schools accept both tests, but others prefer one test over the other. Likewise, there are some colleges that’ll recommend you take the optional writing portion of a standardized test. When in doubt, you should get in touch with the schools you’re interested in to find out exactly what they’re looking for. Generally speaking, it’s best to take the ACT or SAT during your junior year of high school, but you can also take them as a sophomore. There are also practice versions of these tests—for example, the PSAT helps you get ready for the real SAT. By taking a practice test early on in your high school career, you’ll get a better idea of what to expect, how you’ll do on the real test, and the areas in which you need to improve. If your SATs or ACTs don’t go the way you want them to the first time, don’t despair. Just look at the areas in which you need to do better, study hard, and take the test again. A whole lot of students choose to take an entrance exam multiple times. Start researching financial aid In this day and age, most students can’t afford a college education without some form of financial aid. For the 2021-2022 school year, the average private college came in at $38,185 per year in tuition fees and admin fees. That might be on the more expensive end of the spectrum, sure—but even a public in-state school is going to set you and your family back $10,338 per year. Unless you’ve got all of that cash lying around already, you really need to start sourcing funds. Fortunately, there are plenty of opportunities available.  The US Department of Education offers a number of federal student aid programs in the form of grants and subsidized student loans. You can also opt for a private loan from a mainstream lender, although private loans don’t tend to come with the same consumer protections you’ll get with a federal student loan. The biggest advantage you’re going to gain with a federal student loan is that the interest rates are fixed. That means the amount of money you have to repay each month won’t go up—which helps you stay on top of your repayments and plan for the future. A lot of private loans offer variable rates, which means they may decide to charge you more (or less) depending on how the market or their business is performing. But loans can be a decades-long debt obligation that most people don’t want to have to deal with if they can help it. That’s why one of your first ports of call should be to apply for scholarships.  Scholarships are essentially free cash to pay for school. You can get scholarships from a range of sources, including government bodies, businesses, clubs or societies, religious groups, employers, the college you’re applying to, and more. Some scholarships are needs-based, some are based on your background, and others might be a bit more niche, based on your interests. It doesn’t matter who you are or what you’re into—chances are there’s a scholarship out there for you. The problem students often have is sifting through the thousands of opportunities out there to find the scholarships that are right for them. That’s where Mos comes in.  By setting up an account with Mos, you’ll get instantly matched with loads of scholarships that you’re eligible for. Our advisors can then help you apply for these scholarships and connect you with other financial aid opportunities, too. Fortunately, Mos does a whole lot more to help you prepare for college than just connect you with financial aid opportunities. A Mos account also enables you to get a student bank account without having to worry about any fees. The average student spends about $19 every month on banking fees. That’s $228 you’re wasting just for the sake of having a bank account. With Mos, you don’t have to worry about any of that. You’ll also get access to more than 50,000 ATMs, plus, you can sync existing accounts to the app and earn cash back on the things you’re already spending on to make money as you go. The end result: you’re able to stay on top of your finances and budget and get organized—all while getting instantly connected with loads of scholarships and financial aid opportunities that are perfect for you. Conclusion Simply put: college is a huge change for most students. It’s a big change academically, socially, and financially. The sooner you start preparing, the better. But there are quite a few aspects you've got to consider when preparing for college. As a result, it’s really important for you to remember that academics or extracurriculars alone may not get you into your dream school. You must also think about finances, testing, and what school is a good fit for you. Do you want to learn more about how to prepare for college financially? Join Mos now to find out about financial aid and to get matched with loads of scholarships and other financial aid opportunities to help you make the most of your time in college.

Considering heading off to college? Read this guide from Mos to learn how you can prepare for school.

How to prepare for college: a step-by-step guide

Investing is the best way to build long-term wealth. Assuming a 7% average return, every $1 invested in the stock market today could be worth over $29 in 50 years, thanks to the power of compounding interest.  But investing is also complicated—or at least it can seem like it for newcomers! With thousands of investment opportunities, hundreds of platforms, and a variety of shiny distractions to get caught up in, it can all make your head spin.  And let’s face it—as college students, most of us don’t have a ton of money to throw into investments. The barriers to investing seem high, but they don’t have to be!  Here’s how to invest as a college student.  Why should I bother with investing?  Investing puts your money to work for you. Instead of sitting in a bank account earning pennies per year, your money can start to earn real returns and grow over time.  And the key to investing is that the earlier you start, the more time your money has to grow!  And over long periods of time, the results can be massive. Because of compounding interest, investment profits “snowball” over time, growing faster and faster the longer you invest.  For example, $1 invested today will be worth around $2 in 10 years, $4 in 20 years, $7.50 in 30 years, $15 in 40 years, and a whopping $30 in 50 years.  Of course, $1 doesn’t get you very far. Let’s look at some concrete examples using an approachable but meaningful amount of money invested:  Valentina starts investing in college at the age of 20. She invests $100 per month until she retires at age 65. Valentina will have approximately $355,000 in retirement, assuming 7% average returns. The total amount that Valentina would have actually invested would be $54,000—the other $301,000 would be all investment profits.  Samuel starts investing at age 30. He invests $100 per month until he retires at age 65. Samuel will have approximately $172,000 in retirement, assuming 7% average returns. That’s less than half of what Valentina ended up with! Samuel would have invested $42,000 in total—just $12,000 less than Valentina.  The basics of investing  Put simply, investing involves buying assets that you expect to grow in value over time.  For example, you could buy McDonald's stock if you expect McDonald’s to keep growing—or you could buy a rare sports card if you think it will be more valuable in the future.  There are all sorts of things you can invest in, but the most common are: Stocks (small portions of big companies, like Microsoft) Index funds and mutual funds (bundles of stocks from many different companies) Bonds (essentially I-O-Us to governments or companies) Real estate (houses, apartments, etc.) Cryptocurrency Collectibles Investing can be as simple or as complex as you want it to be.  At its most simple, you could open an account and buy a single index fund, like the S&P 500 index. That would allow you to own small pieces of 500 different US companies. You could then keep investing regularly and check back in a few decades! Don’t worry; investing can be straightforward and low-stress. Let’s break down what you need to know about how to invest as a college student. Opening an account  For most investments, you’ll need a brokerage account or a trading app. This account will allow you to transfer money, buy and sell assets, and more.  There are 3 basic routes to go here: Traditional brokers: Stock brokers let you buy and sell stocks, bonds, mutual funds, index funds, and more. They generally offer the widest selection of investment options. If you choose a good company, trading will be free. Some good options include Schwab, Fidelity, and Vanguard. Trading apps: Newer investing and trading apps let you buy stocks, index funds, and more. They often have a bit more limited selection when it comes to investment, but they make things very simple for newcomers. Some good options include WeBull and Robinhood.  Robo-advisors: “Robo-advisors” are platforms that allow you to invest in pre-built portfolios. Instead of picking individual stocks, robo-advisors ask you some questions about your goals and risk level and recommend a pre-made investment portfolio. The downside is that there are fees involved. Some good options include Wealthfront and Betterment.  Select an account type You’ll also need to select an account type. There are 2 broad categories here: General brokerage accounts: These are the “vanilla” accounts that are designed for general-purpose investing. There are no tax benefits, but there are also no contribution limits or restrictions on when and how you withdraw money. Retirement accounts: These retirement-specific accounts, like the Roth IRA, offer tax benefits when you save for retirement. However, you generally can’t withdraw funds from these accounts until you reach retirement age. If you withdraw early, you may face a penalty. If you’re saving for retirement, the tax benefits are substantial—but if you’re not sure what you’re saving for, it’s wise to stick with a general account.  Determining your goals and risk tolerance  Next up is to consider what you are investing for.  Are you saving for a short-term goal, like starting funds for your life post-college? Or is it for a long-term goal, like retirement?  It’s important to ask these questions because your goals affect how you should invest. The period of time you will be investing for is of particular importance.  If you are investing for the very long term (like for retirement), you can afford to take more risks. That could mean investing in all stocks, or maybe even some alternative assets like crypto.  If you are investing for the short or medium-term, you should likely stick with somewhat safer options. That could mean keeping 50% of your portfolio in riskier assets like stocks and the rest in safer assets like bonds or cash.  Keep in mind that you can save for multiple goals at once and have a different investment strategy for both. If you’re saving $200 per month, you could put $100 into long-term retirement accounts and $100 into short-term cash savings.  More broadly, it’s a good idea to consider your “risk tolerance.” This refers to how comfortable you are taking risks with your money. A good place to start is this investment risk tolerance assessment from the University of Missouri. You can then use this knowledge about yourself to decide what to invest in.  Selecting investments  Now it’s time to actually build your investment portfolio!  A key principle of successful investing is diversification. Basically, you don’t want to put all your eggs into one basket.  Instead of investing 100% in one company, you might buy an index fund with hundreds of companies. Instead of investing only in crypto, you might invest in a mix of stocks, bonds, and cryptocurrency.  Here’s a brief overview of the most common asset classes.  Stocks: Stocks, AKA shares, are small pieces of publicly-traded companies. When you buy a stock, you own a tiny fraction of that company. If the company grows, the value of your share will grow. Stock index funds: Index funds are baskets of many different stocks. For example, the S&P 500 index fund invests in the 500 largest public companies in the US. Mutual funds: Mutual funds are another type of fund that combines several assets into one. Many mutual funds are actively traded, which means professional investors actually buy and sell for you. Mutual funds have higher fees, however.  Bonds: Bonds are essentially I-O-U notes. You buy a bond, and the bond issuer promises to pay you back after a certain period of time—with interest.  Real estate: Real estate refers to physical properties, like houses or apartments. It can also refer to REITs, which are like index funds for real estate (and can be purchased in small quantities through a brokerage account). Cryptocurrency: Cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) are digital currencies that run on blockchain technology. They are a high-risk, high-reward investment.  Once you select investments, simply start buying! If you’re feeling lost, here’s our simple recommendation for college students: Buy a single, low-cost index fund, like the S&P 500 index. These trade under the stock names “SPY,” “VOO,” or “IVV.” This is a set-it-and-forget-it way to invest in the broad stock market.  Investing regularly  Your first investment is only the start! For the best results, make a plan to invest regularly. And remember, the initial investment amount doesn’t matter too much—it’s all about how much you can contribute on a regular basis.  You can set up an automatic transfer to invest funds every month or even every paycheck. You could also choose to funnel any extra money you receive into your investments.  With a long-term outlook and patience, you can really start to grow your wealth.  How to invest as a college student  So, that was a lot of information! Let’s break it down step-by-step. Here’s how to start investing as a college student.  1. Decide how much you have to invest  Let’s face it—most students aren’t exactly rolling in cash. But is there extra money in your budget each month?  Here’s the good news: You don’t need large amounts of money to get started with investing. You could get started with as little as $50 or $100. The key is to make investments regularly to continue to grow your wealth.  You might even be able to squeeze some extra funds out of your college student budget to boost your investing budget.  2. Open an account at a low-cost broker or app  Next, you need to open an account. Here’s the lowdown. For casual trading and a super-simple user experience, an app like Robinhood or WeBull is a decent option. These offer free trading and are quite simple to use. They may not support mutual funds and certain alternative investments, however.  For more options and a better long-term setup, opt for a brokerage account from a low-cost broker. Fidelity, Schwab, and Vanguard are all good options. These also offer free trading and have more options for your future investing endeavors.  3. Start making simple investments  Now, pull the trigger on your first investment!  A great place to start is a low-cost index fund, like the S&P 500 index. This is a cheap way to gain access to a diversified portfolio of stocks. If you want to invest in a specific company, you can do that too—just be sure to do your research. Most brokers now support fractional stock trading, which means that you can buy $50 of Apple stock, even if it’s trading at $150 per share.  4. Diversify your portfolio  You eventually want to construct an investment portfolio, which is simply the basket of all your various assets.  Diversification is key. Diversifying your assets basically means spreading out your bets by investing in a wide variety of assets.  Simple diversification usually involves index funds. These funds allow you to own hundreds of companies by purchasing a single stock.  More complex diversification might include a mix of stocks, index funds, bonds, and alternative assets.  You can make it as simple or as complex as you’d like—the point here is to make sure you don’t put all your eggs in one basket.  5. Invest regularly  For long-term success, it’s important to invest regularly. If you can make a habit of chipping in some money every month (or even every week), you’ll build your wealth on autopilot.  To simplify this, you can set up automatic transfers to your investment account. This will automatically pull money from your checking account to your investment accounts on a predetermined date. You could also choose to throw any extra money that comes your way into your investment account.  Need a better checking account? Mos is a bank account specifically designed for the needs of college students.  6. Balance investing with other financial goals  Investing is important—but it shouldn’t override your other financial goals. It’s important to consider the period of time, as well, and to balance both short-term and long-term goals.  For example, it might make more sense to pay off your student loans before you start investing. Or at the very least, to start making extra payments toward them. Because of the student loan grace period, you probably won’t be required to make payments toward your loans while you’re in school—but if you do, you can get ahead on paying them off.  Likewise, if you have debt on credit cards, paying that off first should take priority over investing.  Last but not least, remember that you should also be enjoying your college years! If you set aside a bit of extra money for investing, consider keeping some “fun money” in your budget too.  Conclusion  Investing can help you reach your financial goals—and the earlier you start, the better. Even small investments made during college can grow into substantial sums by the time you reach retirement.  For beginners, it’s helpful to keep things simple. That could mean opening a low-cost brokerage account (Fidelity, Vanguard, or Robinhood are all good options) and then buying low-cost stock market index funds, like the S&P 500. And for best results, keep investing regularly.  Want to boost your overall financial situation? Switching to a bank for students can help you get your finances on track.  Mos is a bank account designed specifically with college students in mind. It offers zero-fee checking, cashback rewards, scholarship opportunities, and much more. Learn more about Mos here.  

Investing doesn’t need to be complicated. Here’s how to invest as a college student, even if you only have a few bucks to get started.

How to invest as a college student

Opened in 1883, the University of Texas is one of the top public universities in the United States. UT Austin, one of the largest campuses in the UT system, is home to more than 52,000 students and 3,000 faculty members across 18 colleges and schools. The school’s core purpose is to “transform lives for the benefit of society” by achieving excellence in education, research, and public service.  If you’re thinking about going to the University of Texas but aren’t sure how you’ll pay for college, this article will tell you everything you need to know. A snapshot look at the University of Texas  The University of Texas is a public university system located in the state of Texas. It includes 13 higher education institutions across the state with more than 240,000 students and 21,000 faculty. UT Austin is the largest school in the system. The school benefits from “the backdrop of Austin, Texas, a city recognized for its creative and entrepreneurial spirit” and aims to provide a place for its students to explore opportunities for tomorrow. UT Austin offers many undergraduate and graduate programs, including both medical and legal degrees. Undergrads can choose from programs across multiple colleges, including the College of Fine Arts, College of Education, McCombs School of Business, and the College of Liberal Arts. Outside of class, students can join one of the school’s more than 70 fraternities or sororities, enjoy NCAA sports as a spectator or participant or join one of the school’s many clubs or student groups. Ranking: 38th in National Universities Size: 52,000+ Demographics: 46% male, 54% female Tuition: Varies by college, ~$12,000 for in-state students, ~$40,000 for out-of-state students Acceptance rate: 39% Average GPA of accepted student: 3.8 Key dates and deadlines (2021): Application: December 1st Financial aid deadlines: January 15th Scholarships offered by the University of Texas  It’s no secret that college is expensive. You can wind up paying hundreds of thousands of dollars over the course of your education, and many families spend years saving up for the cost of school. One of the best things that you can do to help pay for college is apply for scholarships. Scholarships are financial awards that you can use to pay for tuition, fees, and some other education expenses. Best of all, you don’t have to pay them back after you leave school. They’re simply free money to pay for your schooling. There are many ways to earn scholarships, including through academic achievement, financial need, or athletic prowess. UT Austin offers more than 3,000 scholarships to its incoming and current students. Its financial aid and admissions websites have information on the different awards available and advice on how to apply for them. Many only require that you fill out the FAFSA, which we’ll cover later. For others, you can use the scholarship finder tool to find opportunities you’re eligible for and easily apply. On top of the programs offered by UT Austin, you should look into scholarship programs from other groups. Many businesses, community organizations, and even local governments have scholarship programs you can apply for. You can find scholarships for almost anything if you look carefully. Mos can help you figure out how to pay for college through scholarships and loans. To get the most aid possible, visit our financial aid tips and tricks page. Student loans Scholarships might be the best way to pay for school, but the reality is that most students won’t earn enough aid to be able to cover the cost of college. That means that many people will have to turn to student loans. Student loans are a special type of loan designed for students. You can use them to pay for tuition and other educational expenses. However, unlike scholarships, you’ll need to pay them back, plus interest. Loans are expensive, but they can be a valuable tool for investing in yourself. UT Austin’s financial aid website has a page outlining the different loan programs available to its students. For most students, the best way to borrow money is through the Federal Direct Loan Program. This is a federal student aid program that offers 2 types of loans to college students. Of the 2 loans, subsidized loans are better. With subsidized loans, interest won’t build up on the balance as long as you remain enrolled in school. You can also get unsubsidized loans, but interest will start accruing on these loans right away. On top of interest subsidization, federal loans have a lot of other perks. For example, students may be able to get their loan balances forgiven in some cases and can sign up for income-based repayment to make the loans more affordable. Texas residents can also take advantage of the College Access Loan program offered by the state. These loans can range in size from $100 to the full cost of attendance and have low, fixed interest rates. If you’ve exhausted both your federal and state loan options, the next place to look is to private lenders. Banks, credit unions, and specialized student loan companies can offer college loans to students and their families. However, these loans lack many of the benefits of government loans and typically have higher fees and interest rates. Typically, you should max out your federal and state loans before working with a private student lender. Student loans are complicated. There are so many different options that it can be hard to choose the right one for your needs. If you're still looking for more information, take a look at our article about the different types of financial aid you have to pay back. FAFSA  The most important thing to do for any college student who needs financial aid is to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is a universal student aid application that gets used by federal and state governments as well as your school to determine how much financial aid you’ll receive. When you fill out the FAFSA, you’ll sit down with your parents or guardians and answer some questions about your financial situation. That includes things like your family’s income and any money they have saved. Based on the answers, the government will determine your expected family contribution (EFC) to the cost of college. Your EFC will determine your eligibility for government aid programs like Pell Grants and federal loans and the need-based financial aid you receive from your college.  Keep in mind that while the FAFSA is used to determine your financial need, most schools do not guarantee that they meet 100% of their students' financial needs. You’ll have to come up with the rest of the money somehow, typically by getting student loans. The FAFSA opens on October 1st for aid awarded in the next academic year. You have until June to fill it out, but Texas has a state deadline of January 15th. It’s usually in your best interest to fill it out as soon as possible. You can read our article on how long it takes to complete the FAFSA for more information. University of Texas financial aid FAQs  Here are some frequently asked questions about the University of Texas What is the University of Texas’s cost of attendance? The cost of attendance at the University of Texas, Austin for an in-state student ranges from $20,518 to $32,346, depending on the student’s living situation and the college they choose. Of that number, $10,858 to $13,576 is tuition. Out-of-state students pay additional tuition, ranging from $38,650 to $46,498, making their total cost of attendance range from $57,420 to $65,268. How many students receive a full ride at the University of Texas? UT Austin doesn’t publish how many students receive a full ride. However, 42% of first-year students receive some form of need-based aid, and the average need-based aid totals $9,723. Overall, the school meets 66% of its students’ financial needs. Can out-of-state students receive financial aid? Yes, out-of-state students are able to receive financial aid at UT Austin. Universities like the University of Texas that you might be interested in  If you’re not sure that the University of Texas is right for you, consider the alternatives. Texas A&M Texas A&M, located in College Station, Texas, opened in 1876 as the state’s first public institution of higher education. Today, it’s one of the top research-intensive universities in the state, offering more than 130 undergraduate and 170 master’s degree programs. Texas A&M also has multiple international campuses, with locations in Mexico, Costa Rica, and Qatar, giving students the opportunity to study internationally. Outside of classes, Texas A&M is a national force in NCAA Division I sports and offers hundreds of student clubs and organizations for its students to join. As a public institution, Texas A&M keeps tuition costs low for in-state students, making it an appealing choice for those looking to keep the cost of their education as low as possible. Texas Tech Texas Tech is another public, research-focused university located in the state. Like Texas A&M and UT Austin, it keeps tuition affordable for in-state students, making it appealing to those concerned about college costs. On top of its designation as one of just 94 “very high research activity” universities, Texas Tech is a designated Hispanic Serving Institution with a Hispanic student population of over 29%. Students can benefit from the opportunity to engage with cutting-edge research and a highly diverse student body. The school is located in Lubbock, Texas, and is home to more than 40,000 students. With 150 undergraduate degree programs, 100 graduate programs, and hundreds of student clubs and organizations, there’s something for everyone at the school. Texas State University Texas State University, founded in 1899, is another public university that keeps tuition inexpensive for in-state students. The majority of its students come from Texas. It is the only university in the state where a president has graduated, Lyndon B. Johnson. Like many other schools, Texas State University has a focus on research. It offers nearly 100 undergraduate programs and more than 90 graduate programs across its 10 colleges. Students at Texas State University can choose from 2 campuses: the original campus located in San Marcos or a second campus in Round Rock, just north of Austin, giving students easy access to one of the state’s largest cities. Outside of classes, Texas State has 16 NCAA Division I teams for students to join or cheer on as spectators. It also has more than 400 student organizations focused on academics, art, and other interests. Students can also join roughly 5,000 other students, faculty, and staff during the school’s annual community service project, Bobcat Build. Conclusion The University of Texas is one of the top public colleges in the United States. It offers a huge variety of programs and a strong education. If you’re an in-state student, you can get a great degree at a very reasonable cost, but even out-of-state students might consider the school. Working with Mos can help with the high cost of college. You can get help paying for your education through access to a huge scholarship pool. Once you’re off to college, don’t forget that you’ll need a great bank account. You can check out our list of the best student bank accounts if you’re looking for a good bank to work with. 

Read all about financial aid at the University of Texas, including scholarships, loans, and grants.

University of Texas financial aid: a complete guide

College students and recent grads were hit hard by the financial effects of the pandemic and lockdowns in early 2020.  The government went to work, pausing student loans and drawing up all sorts of legislation—most famously, the CARES Act. But there was another bill that would’ve sent out even more money. That bill’s called the HEROES Act. This article will discuss the HEROES Act and where it is as of now. But since it hasn’t passed quite yet, we’ll also show you several other ways to get the government to help with your student loans, whether you have already graduated with loans or are looking for ways to mitigate your loans while still in school. What is the HEROES Act? The Health and Economic Recovery Omnibus Emergency Solutions Act, cleverly called the HEROES Act, is a broad pandemic relief bill. It originally included a $3 trillion stimulus package to address many different areas, including student loans, but that has since been revised down to $900 billion. For education in particular, the original act provided about $191 billion for student loan relief and higher education funding. HEROES Act vs. CARES Act The Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, was the first stimulus bill to help keep the economy afloat when everything shut down. It was a large bill, but not as comprehensive because the pandemic was just beginning. The government had to get something out the door, so it was a bit smaller. Once we had seen some of the CARES Act’s effects, it was easier for the government to create another aid bill that was more comprehensive and better addressed society’s needs. That’s what the HEROES Act was for. It added more money and provisions to address where the CARES Act fell short. Since we had more knowledge of the pandemic’s effects as it played out, the government had a better idea of what to include. What happened to the HEROES Act? The HEROES Act was introduced in the House of Representatives on May 12, 2020—less than 2 months after the CARES Act passed—by Rep. Nita Lowey, Democratic Congresswoman from New York. After going back and forth through typical legislative matters, like committees, rule changes, and debates, it passed the House 208 - 199 on the evening of May 15, 2020. Next up was the Senate, where it arrived on May 20, 2020, and this is where the HEROES Act story comes to a close for now. The bill was read twice. First, on May 21, then on June 1, before being placed on the legislative calendar to be worked on later. It made its way into the Senate Committee on Small Business and Entrepreneurship for some hearings on July 23, 2020… then never got anywhere after that, according to Congress’s website. As of now, it's still in limbo in the Senate. An updated version passed the House in October 2020, but the act itself still isn’t law. Ultimately, the Senate negotiated a new bill, the ​​Consolidated Appropriations Act of 2021, which became the second form of aid in December 2020. Now that we’re emerging from the pandemic, the odds of the HEROES Act passing grow slimmer, but we can never know for sure if Congress won’t pick it back up later. Other ways to get help from the government with paying your student loans The government offers numerous ways to help you reduce your student debt burden, such as non-loan aid, adjusting your repayment plan to be more affordable, and even erasing your loans (in certain cases). Here are some of the numerous ways the government may help reduce your student loan burden or allow you to pay them back more easily: FAFSA non-loan aid The FAFSA is the key to unlocking your financial aid because it shows your eligibility for all federal aid programs, not just federal student loans. For instance, it shows your eligibility for federal grants like the Pell Grant. You don’t have to pay grants back, so this is free money. Work-study is another form of federal aid you qualify for through the FAFSA. These are jobs that the university arranges for you, up to 20 hours a week, but you get paid a paycheck directly that you can use as you please, unlike other forms of aid. They’re often on campus but can also be at non-profits, public agencies, and small businesses off-campus. Many scholarships aren’t available on FAFSA, but some, like the College Bound Scholarship, require some FAFSA information to qualify.  Some state-specific programs, like the NYS TAP grant program, are also attached to the FAFSA application and make you fill it out. Non-FAFSA, non-loan aid Outside of the FAFSA are still more forms of government aid at the state and local levels. These can be grant or scholarship programs offered through state and local governments. Plus, businesses, non-profits, and other organizations offer grants and scholarships by the 1000s.  You can look for these online or get matched to the best ones for you automatically through a service like Mos. Loan forbearance and deferment Loan forbearance and deferment are programs where the government pauses your loan payments temporarily if you’re in a tight spot financially. Deferment is the better of them because interest doesn’t accrue in deferment. Interest does accrue in forbearance, but at least you don’t have to make payments for the time being. The exception was the pandemic loan forbearance, which set interest rates on federal student loans at 0% to ensure interest would not accrue and capitalize onto your loan balance. Note that private lenders may not offer forbearance, deferment, and similar programs. And if they do, they may not be as flexible. Loan Forgiveness Loan forgiveness and cancelation is what it sounds like—several government programs will erase all eligible loans for students who meet a program’s criteria. Public Student Loan Forgiveness (PSLF) is one that most people have heard of. Anyone employed by any government in the US—federal, state, local, or tribal—as well as non-profits can have their loans forgiven after making 10 years of payments, or 120 payments, on an income-driven repayment plan for a certain number of years while working in that sector. PSLF may include teachers, but the Teacher Loan Forgiveness Program is another loan forgiveness program designed solely for teachers. This one could cancel up to $17,500 of Direct or FFEL (Federal Family Education Loan) loans. There’s also student loan discharge, which is a bit different. It eliminates loans for events out of your control, such as your school closing, becoming disabled with outstanding loans, or you getting scammed by a for-profit school. These are obviously not ideal situations, but it is nice to know you could have your loans erased if you find yourself in one of them. Income-driven repayment plans If you’re struggling to make your payments, the government offers income-driven repayment plans that adjust your payment based on your current income and family size. These programs may also offer forgiveness after enough time making on-time payments, since your payments under these plans wouldn’t be enough to pay off your loans within a regular timeframe. There are 4 plans available: Revised Pay-As-You-Earn: Payment is 10% of your discretionary income. Forgiveness comes after 20 years of payments for undergrads and 25 years for grad students. It subsidizes 100% of accrued, unpaid interest for the first 3 years, and 50% every year thereafter. The catch is if you’re married, your discretionary income is calculated including your spouse’s income, even if you file taxes separately. Pay-As-You-Earn: Payment is 10% of your discretionary income. Forgiveness comes after 20 years for grad students and undergrads. It subsidizes 100% of accrued unpaid interest for the first 3 years, but nothing after that. Discretionary income is based on your income alone, even if you’re married, as long as you file taxes separately. Income-Based Repayment: Payment is 10% or 15% of your discretionary income, depending on if any of your loans were taken out before or after July 1, 2014. Forgiveness after 20 or 25 years of payments for both undergraduate and grad students based on the same factor (date loans started). Income-Contingent Repayment: Payment is the lesser of 20% of discretionary income or the amount you’d pay on a repayment plan with a fixed payment for 12 years, based on your income. Forgiveness comes after 25 years for grad students and undergrads. Federal employee student loan assistance To help recruit more talent, federal agencies are allowed to offer employees loan repayment assistance. Federal agencies can help each employee repay up to $10,000 per calendar year, with a lifetime maximum of $60,000 per employee. That said, federal agencies differ in how much they’ll repay. Ask your boss or HR department for more information about assistance amounts. Military service Most people have heard of the GI Bill. This covers all tuition and fees for students attending in-state public schools. It can cover out-of-state and private costs as well, but may not go as far. The GI Bill may also provide allowances for housing, books, supplies, and some other costs. Beyond the GI Bill, active duty military and veterans have plenty of ways to get government assistance with their loans: Servicemembers Civil Relief Act (SCRA) Rate Cap: Any loans acquired before military service have rates capped at 6% while on active duty Military Service Deferment: During certain periods of active duty and immediately after, you can defer loans. 0% Interest: If serving in a hostile area that qualifies for special pay, you don’t have to pay interest for up to 60 months. Department of Defense Loan Repayment: The DoD may repay some or all of certain military members’ loans under specific circumstances. Veterans Total and Permanent Disability Discharge: Veterans with service-related disabilities can have all of their federal and some private student loans discharged. Active duty and veterans may also qualify for PSLF. Education tax deductions and credits The IRS knows education costs money, so students and families have plenty of tax breaks at their disposal. One of the easiest is the student loan interest deduction. If you paid interest on student loans you took out for yourself, your spouse, or a dependent, you can deduct up to $2,500 of that interest per year from your gross income. Education tax credits like the American Opportunity Credit and Lifetime Learning Credit can take your savings further. These are dollar-for-dollar payments that can reduce your tax owed if you spend money on qualifying education expenses during the year. Finally, tax-advantaged education savings accounts like 529 plans let you invest money for college and let it grow tax-deferred. These types of accounts generally let you spend the money tax-free if used on qualifying education expenses, like tuition and fees. Government agency volunteer programs Certain government agency volunteer programs may help you with your loans if you volunteer. For instance, Americorps volunteers can earn a Segal AmeriCorps Education Award after completing service with AmeriCorps VISTA, AmeriCorps NCCC, or AmeriCorps State and National. The award amount is always equal to the max Pell Grant award amount for that year. In 2022, that’s $6,435. Other government volunteer programs like the Peace Corp may qualify you for loan forgiveness programs we talked about earlier. Refinance and consolidate Refinancing student loans means getting a new loan at a lower rate to pay off those old loans. You essentially swap your current rate for a better rate to reduce your monthly payment and save on interest. Many who refinance also consolidate their loans, meaning they pay off existing loans with one large loan, combining several loans into one.  This streamlines your loan payment. It’s easier to track your progress on loans, and you’re less likely to forget to make payments. The federal government offers Direct Consolidation Loans that let you consolidate all your eligible loans into one at no cost. As for refinancing, you can only refinance federal or private loans with a private lender. Check that the rate you get is lower than the weighted average of the old loans, and make sure you’re fine with losing eligibility for income-driven repayment and other federal loan benefits. Also, read the fine print in the contract carefully to see if the promised low interest rate won’t grow higher over the years. No HEROES Act For Now… The HEROES Act is still sitting in the halls of the federal government. We can’t know for sure when it’ll go through or if it’ll even survive the rest of the lawmaking process. For now, the best you can do is look for ways to ease your student loan debt through the government and private sources.  Mos can help you get as much free money for college as possible by helping you apply for financial aid, grants, and scholarships—all in one place. Plus handpicked gigs for students to help you earn even more once you start classes. 
 


The government passed several aid bills during the pandemic. Learn more about the HEROES Act and other forms of government student loan assistance.


What is the HEROES Act, and how does it impact student loans?

If you’re looking for an innovative school with loads of different academic, athletic, and social opportunities to choose from, you should definitely check out Arizona State University (ASU). With more than 77,000 students on its 4 campuses and over 57,000 online students, ASU is a sprawling, modern institution that offers more than 350 undergraduate degree options and over 400 graduate degree pathways. Translation: if there’s something you’re into, chances are you can major in it at Arizona State. But the school isn’t all about books and pencils. ASU also has more than 1,100 student clubs and organizations, and the Sun Devils compete in 26 varsity-level sports at the NCAA Division 1 level. Fortunately for those in need of financial aid, the school is equally impressive when it comes to funding options. If you're interested in applying to ASU but are wondering how you're going to pay for it, we've got you covered. Let's break it all down. A snapshot look at ASU Before we dive into ASU financial aid, let’s slow things down and take a quick look at why it’s such a desirable college in the first place. Arizona State University has been around for a long time. It’s a public institution that was founded in 1885 (before Arizona was even a US state). Fast-forward to today, and ASU is now one of the largest public universities in America. ASU is home to more than 135,000 students when you combine its on-campus cohort with online learners—and it has 17 colleges and 170 cross-discipline institutes and centers for undergraduate and graduate students. ASU is a place where there’s something for everyone. But it also has a serious reputation for excellence. Its staff and alumni include: 5 Nobel laureates. 9 Pulitzer Prize winners. 6 MacArthur Fellows. 9 members of the National Academy of Engineering. 23 members of the National Academy of Sciences. 26 members of the American Academy of Arts and Sciences. 40 Guggenheim fellows. 149 fellows of the National Endowment for the Humanities. 270 Fulbright Program American Scholars. And if sports are your thing, ASU has that, too. Competing as the Arizona State Sun Devils, ASU competes in 26 varsity-level sports in the NCAA Division I Pac-12 Conference. It also has over 1000 student clubs and teams you can get involved in—meaning you don’t have to be a future NBA star to join in. With the wide range of academic choices, great reputation for sports and student life, and solid reputation, ASU poses some amazing opportunities for students from all over the world. Ranking: 117 Size: 77,831 Demographics: 50% male, 50% female Tuition: $10,710 per year (in-state), $28,800 (out-of-state) Acceptance rate: 88% Average GPA of accepted student: 3.54 Key dates and deadlines (2022) Application: November 1st (Priority) or February 1st Financial aid deadlines: January 15th A look at scholarships offered by ASU If you want to go to Arizona State University (ASU) but need some financial support, you’ll be relieved to know that ASU offers a huge range of scholarships. Some of those scholarships are unique to certain majors or university departments. Others are based on your high school performance, financial need, or whether you come from a certain background or community. Just to give you an idea of what’s available, let’s walk through a few highlight scholarships. New American University Scholarship ASU’s New American University Scholarship awards are for outstanding incoming freshmen. There are 4 different awards within the program: the President's Award, the Provost's Award, the Dean's Award, and the University Award. The amount you’re eligible to receive will depend on your residency status and the award you’re offered. But generally speaking, it’s an inclusive scholarship program that a large slice of the ASU freshman population fits into. Harrison Westerfield Scholarship The Harrison Westerfield Scholarship is another award for incoming ASU freshmen. But this scholarship is designed exclusively for out-of-state students—and to be considered, you need to be able to demonstrate an involvement in community service. To be eligible for the Harrison Westerfield Scholarship, you need a minimum 3.0 grade point average (GPA). The total award is $1,000. ASU Next Generation Service Corps The ASU Next Generation Service Corps (NGSC) is a 4-year leadership development program that trains Arizona State students from all majors to address meaningful societal challenges.  As part of the program, ASU makes sure that all NGSC students have base tuition coverage. That means ASU offers variable awards to NGSC members based on whatever gap each student has to plug after factoring in other university-based grants or scholarships. ASU’s Scholarship Office calculates each student’s award on a case-for-case basis over the summer. Dougherty Foundation Scholarship The Dougherty Foundation Scholarship is designed to support full-time in-state students pursuing undergraduate or graduate degrees. But to qualify for a graduate Dougherty Scholarship, you must have received the scholarship at the undergraduate level, too. The scholarship award is $2,000. This is just the tip of the iceberg. Want to learn more about ASU scholarships? Join Mos now, and we’ll walk you through each one and help you apply. Student loans While gift aid like grants and scholarships are always ideal because you don’t have to pay them back—a majority of students simply can’t afford to go to school without taking on a loan. A student loan is a nominal amount that you borrow in order to help pay your college tuition. Loans give you money to pay for college now—but in exchange for that cash, you’re going to have to repay those funds with interest. Each loan has its own interest rates and repayment terms depending on the loan type and your eligibility requirements. If you’re applying for a federal student loan, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is the universal application form that the US Department of Education’s Federal Student Aid Office uses to determine your eligibility for federal loans and grants. ASU accepts the following types of federal student loans: Federal Direct Subsidized Loans Federal Direct Unsubsidized Loans Federal PLUS Loans Arizona State also accepts private loans (which are generally credit-based) from other lenders. If you’re going for a private loan, just be aware that the application process is far from universal. Each lender will inevitably have its own application process, so just make sure you understand how to apply and all the eligibility requirements. Do you want to learn more about applying for ASU student loans? Join Mos now and let’s get started. FAFSA A lot of financial aid opportunities offered to ASU students require you to fill out the Free Application for Federal Student Aid (FAFSA). The federal government uses the FAFSA to figure out how much US Government aid you’re entitled to receive. But your state government and ASU will also look at the information you’ve included in your FAFSA to determine whether you’re able to secure any state-based financial aid or institutional aid. That being said, it’s important to remember that a lot of ASU’s scholarships require you to complete separate application forms. This is particularly true for current ASU students applying for scholarships. For more information on applying for the FAFSA—including key dates and how to make sure your application is submitted successfully—head to our learning hub. ASU financial aid FAQs We’ve covered ASU scholarships and loans. Now, let’s take a look at some of the most frequently asked questions (FAQs) about ASU financial aid. What percentage of students receive financial aid at Arizona State University? The vast majority of ASU students receive financial aid. In the fall of 2020, a whopping 89% of ASU undergraduate students received some form of financial assistance. A third of all ASU undergraduates received a Pell Grant in 2020—and in the fall of 2021, 80% of all first-year students who were Arizona residents earned one of ASU’s New American University Scholarships. ASU offers 4 different types of New American University Scholarship awards: the President's Award, the Provost's Award, the Dean's Award, and the University Award. Each award varies based on whether a student is from Arizona or out of state. Who qualifies for financial aid in Arizona? The state of Arizona offers a pretty inclusive set of eligibility requirements for its in-state students. That being said, you do have to fulfill some basic criteria in order to qualify for financial aid. To get federal financial student aid in the state of Arizona, you’ll need to have a high school diploma or equivalent. You also need to be admitted to a university degree program and be enrolled in that program. To qualify for student aid, you need to be enrolled at least half-time, and you must be working toward a degree or a combined degree. If you’re only enrolled in a certificate program, you won’t be eligible for federal student aid. This includes loans. Next, you need to be able to demonstrate financial need. You’ll be able to do this through the information you include in your FAFSA application. That being said, it’s worth noting that a lot of loans and scholarships are available to students without a demonstrable financial need. You’ve also got to be either a US citizen, a US national, or an eligible non-US citizen with a valid Social Security Number (SSN). Finally, you’re going to have to maintain satisfactory academic progress toward achieving your college degree—and you will need to attend all of the classes you’re enrolled in. If you fail to attend some of your classes, your aid will likely be reduced as part of an aid adjustment. Is FAFSA required for ASU? It’s worth noting that a FAFSA isn’t required for every single financial opportunity at ASU. But if you’d like to be considered for most campus-based funds, institutional grants, Federal Pell Grants, and Direct Loans, a FAFSA is required. You have to send in a valid FAFSA and any verification documents before your last day of attendance (LDA). Universities like ASU that you might be interested in If you’re still unsure about whether ASU is truly where you belong, don’t sweat it. There are loads of other universities in Arizona worth checking out. To help you get started in your search, here are a few of the most popular ASU alternatives. University of Arizona The University of Arizona was founded the same year as ASU (1885), and it’s based in nearby Tucson, Arizona. The University of Arizona is home to more than 49,000 students, and the Arizona Wildcats compete against ASU in the Pac-12 Conference for NCAA sports. Arizona’s acceptance rate is comparable to ASU — although tuition is slightly higher at $12,700 per year for in-state students and $37,200 per year for out-of-state students. Grand Canyon University Like ASU’s flagship campus, Grand Canyon University (GCU) is based in Phoenix, Arizona. GCU has a large cohort of on-campus students, with just under 59,000 using its 100-acre campus as a base. GCU is split into six colleges, and most of Grand Canyon’s athletic teams compete at the NCAA’s Division I Western Athletic Conference. Northern Arizona University Founded in 1899, Northern Arizona University (NAU) is based in Flagstaff, Arizona. NAU has a total enrollment of more than 28,000 students, and the school offers over 180 undergraduate programs, 90 undergraduate and graduate certificates, and a hundred online degree programs. The cost of tuition at NAU is fairly comparable to ASU. In-state residents must pay $10,650 per year, and out-of-state students pay $25,396 per year. Conclusion If you’re looking for a college that has a big range of majors and specializations, Arizona State University is a pretty attractive option. But equally as important as its academic reputation, ASU also has a huge student community that caters to all sorts of hobbies and interests. Fortunately, Arizona State understands that most students can’t afford to go to college without a helping hand. That’s why it offers students loads of different scholarships and financial aid opportunities. If you’re on the hunt for the best way to pay for a school like ASU, Mos can help. We can help you apply for hundreds of scholarships and grants and negotiate for more financial aid. Check out Mos.com to learn more. 


Considering going to Arizona State University? Read this guide on ASU financial aid from Mos.


ASU financial aid: a complete guide

Student loans can be a huge debt obligation for a lot of us and can go on to haunt some students for years after they’ve graduated. Fortunately for those struggling to repay their federal student loans, the US Department of Education offers a couple of ways you can prevent a loan default—and the most popular solution by far is student loan rehabilitation. Student loan rehabilitation allows you to dig your federal student loans out of default by making 9 monthly payments over 10 months. It can also help you improve your credit score. But it’s important to note that not everyone qualifies for loan rehabilitation, and there are some marks on your credit score that it can’t erase. This guide explains what student loan rehabilitation is, how it works, what happens after student loan rehabilitation, and more. What is student loan rehabilitation? Student loan rehabilitation is a repayment strategy the US Government offers as a way to help college students avoid going into loan default. If you miss federal student loan repayments for more than 270 days, your loan will generally automatically go into default. When a loan goes into default, it means that you’re going to lose access to any repayment benefits that your original loan agreement may have offered. You’ll also lose access to any future federal financial aid—which means you’re not going to be able to rely on the federal government for a grad school loan. It’s critical to bear in mind that any late payments you’ve made to your loan servicer will ultimately hurt your credit score. So, how does a loan default hurt your credit score? Let’s say you end up missing a payment on your student loan. After a certain amount of time, your loan servicer will then report that missed payment to the 3 big credit agencies: TransUnion, Equifax, and Experian. They’ll then mark this blip on your credit report—which could end up causing trouble for you later. For example, you might end up getting denied a good mortgage rate by the bank or a loan for a new car because you’ve got a black mark on your credit score for missing student loan payments. Translation: by defaulting on a loan, you might miss opportunities that can improve your life. That’s why, if you’re struggling to repay your student loans, loan rehabilitation is worth considering. It can help you get your loans back into good standing. In return, you’ve got to make 9 on-time monthly payments that are equivalent to at least 15% of your discretionary income. For reference, student loan rehabilitation isn’t the only solution the US Department of Education offers to help students avoid default. The other route is loan consolidation through the US Government’s Federal Student Aid (FSA) office. The FSA offers a Direct Consolidation Loan, which allows you to combine (or “consolidate”) multiple federal student loans into just one loan. In doing so, you’ll benefit from a single monthly payment instead of loads of different payments coming out of your bank account. Loan consolidation also empowers you with the ability to access other types of loan repayment plans and loan forgiveness programs. But loan consolidation can be a bit complicated, so let’s stick with loan rehabilitation for now. How does student loan rehabilitation work? Student loan rehabilitation is a lot more straightforward than people think, but there are pretty strict rules you’ll need to abide by to ensure that loan rehabilitation works. After contacting your lender and letting them know you need support, you may be offered the chance to enter into a student loan rehabilitation agreement. Once you’ve signed that agreement, your student loan servicer will give you a new monthly repayment amount that’s directly linked to your discretionary income. If you’re unfamiliar with the concept of “discretionary income,” don’t sweat it. It’s essentially just a fancy way of describing the amount of income you’ve got left after basic living costs, social security charges, and taxes have all been deducted. To maintain your loan rehabilitation eligibility, you’ll then need to make 9 consecutive, on-time payments within 10 months. As a point of reference, the US Government defines “on time” as being within 20 days of the payment’s due date—so you’ve got plenty of time to get your payments in. If you’re able to make those payments in line with your student loan rehabilitation agreement, that means your loan will no longer be in default. Once this has happened, the ping on your credit report will be removed so that it looks like your loan never even went into default in the first place. Unfortunately, any late payments you made leading up to your default won’t be removed so easily. Late payments will stay on your credit report for 7 years before they disappear. Student loan rehabilitation comes with a couple of extra benefits, too. For example, if the US Government were trying to collect on your unpaid debts by garnishing your wages, those actions would end after your loan has been rehabilitated. Likewise, the government will no longer be able to withhold any outstanding tax refunds you’re owed. By completing a loan rehabilitation program, you’ll also regain the ability to apply for additional federal student aid and leverage various repayment benefits. Finally, you’ll be delighted to know that you’ll no longer get any communications from collection agencies after your loan is rehabilitated. All of these actions stop after your agreement has been satisfied. Although student loan rehabilitation offers a real lifeline for borrowers struggling to repay their debts, there are a couple of important rules you have to bear in mind. First and foremost, you can only rehabilitate a defaulted student loan once. Translation: this is a single-use solution, so you can’t bet on loan rehab saving you more than once. To help prevent future defaults, you’ll then need to make sure you work alongside your loan servicer to pick a repayment plan that you can afford.  After completing rehab, you’ll be able to choose one of the US Government’s 4 income-driven repayment plans. These plans work by calculating your monthly payments in relation to your discretionary income. You’ll then make more manageable payments for either 20 or 25 years (depending on the plan you’re offered). If you end up selecting an income-driven repayment plan, you’ll benefit from loan forgiveness at the end of your repayment period. This means that any unpaid balance still existing on your account will be completely forgotten (although you might still need to pay income tax on that outstanding amount). How do you enroll in student loan rehabilitation? If you want to enroll in student loan rehabilitation, your first step is to get in touch with your loan servicer to figure out if you’re eligible to apply. Assuming your loan provider gives you the go-ahead, you’ll have to send in a copy of your latest IRS income tax return or a tax transcript. Based on this information, your servicer will then determine the amount of money you can realistically afford to pay monthly without putting you into an even tougher financial position. After working out a reasonable repayment amount, your loan servicer will then send you a written rehabilitation agreement. This should arrive within 15 days. If you decide to accept your student loan rehabilitation agreement, you’ll need to sign and return that agreement to your loan servicer. Upon receipt of that signed contract, you’ll be enrolled in a unique rehabilitation program. What happens after student loan rehabilitation? After you’ve successfully met the conditions of your student loan rehabilitation, your loan will normally get sold or assigned to a new loan servicer. As we’ve already touched upon, the government will stop garnishing your wages after you’ve made 5 rehabilitation payments. You’ll also regain access to other sources of federal student aid and various repayment options. These include forbearance, deferment, and the income-driven repayment plans we’ve covered. Because you’re only able to rehab a student loan once, you must come up with a strategy to pay for any future payments you’ll have to make post-rehab.  For example, let’s say you fell behind on your loan repayments in the first place because your repayment amount was too expensive. If this is the case, asking your new servicer for an income-driven repayment plan is probably going to be your best bet. That said, it’s also worth considering what might happen if your student loan rehabilitation doesn’t work. If your rehabilitation program fails or you end up defaulting again on your previously rehabilitated loan, your most viable option will be to consolidate your loan. Just be aware that, like loan rehab, consolidation only works once. If you’ve consolidated student loans already, your only remaining options are to add that loan to your existing consolidation or simply pay the full balance of your outstanding loan. If you end up running into this situation, you may find that your loan servicer is willing to settle for less than you owe. By getting in touch with them and explaining the situation, you may be offered a lower settlement figure to pay down your loan as an act of goodwill. It’s also possible to file for bankruptcy—but this route should be avoided at all costs, as it can have a horrible impact on your finances for years to come. Doomsaying aside, student loan rehabilitation is a positive way to successfully repair your credit and get back on track with repaying your loan. Will my credit score go up after loan rehabilitation? Unfortunately, the answer to this one is a little bit complicated. Student loan rehab has a positive impact on your credit, but your credit score depends on a couple of other factors. One of the key benefits of rehabilitating a student loan is that it removes the record of a default from your credit report. However, you’re not going to get that black mark removed from your credit report if you opt for loan consolidation—it’ll remain on your credit report for 7 years.  As a result, loan rehab is generally a smarter option than loan consolidation if you’re trying to build your credit. While your credit score is going to see a boost from the elimination of that default notation on your credit report, it’s not a silver bullet to help you achieve a stellar credit score. Loan rehab won’t remove previous late payments you made from your credit score, which means your score could remain relatively static even after you’ve successfully rehabbed a loan. Conclusion Loan rehabilitation can be a real financial lifeline for those struggling to repay student loans. You don’t have to let the consequences of a loan default follow you around forever. Instead, you can get in touch with your loan servicer and enroll in loan rehab. If you’re able to rehabilitate a loan successfully, that default note will be removed from your credit history. Remember that, even if you can rehab a loan, your credit report will still include any late payments reported to the 3 big credit agencies before your loan went into default. The key here is to make sure you plan ahead, stay organized, and are aware of all the options available to you. That means doing your homework concerning student finance—but it also means asking for help from professionals when and where you need support. So are you ready to learn more about student loans?  If you’re still in college, you should join Mos. We can walk you through various financial aid opportunities and match you with loads of scholarships and other financial aid options to help you make the most of your time at school. 

Are you at risk of a student loan default? Read this guide from Mos explaining how student loan rehabilitation can save the day.

Student loan rehabilitation: what it is and how it can work for you

Students in the Empire State have a lot of great options for schools, from elite universities like Cornell and New York University (NYU) to the renowned City University of New York (CUNY) and State University of New York (SUNY) public institutions. However, most aren’t cheap, and the state of New York realizes that. They provide New York resident students with the NYS Tuition Assistance Program to help them afford school and encourage students to study in New York. Below, we’ll discuss what the TAP is and how to see if you qualify. We’ll also cover some other forms of aid New York residents can take advantage of to lower the cost of higher education in the Empire State. What is the NYS Tuition Assistance Program? The New York State Tuition Assistance Program helps resident students of New York state pay for school if they demonstrate financial need. It’s a grant administered by the NYS Higher Education Services Corporation (HESC), so you don’t have to pay it back if you’re awarded some money through the program. As previously mentioned, New York state has many excellent schools. They’re known for the CUNY and SUNY systems but are also home to great private institutions like Cornell, NYU, and Syracuse. Tuition prices can make it hard for bright minds to afford these schools. CUNY and SUNY costs of attendance can average nearly $18,000 per year for NY residents, and private NY colleges can climb to $51,900 per year. If you’re a New York state resident, applying for the TAP program can be a huge help in paying for your dream school within the state. Am I eligible for TAP? You are eligible for the TAP program if you meet all of the following requirements: Current New York state resident and have resided in New York state for 12 continuous months US citizen or eligible noncitizen Graduated from a US high school in the United States, earned a GED, or passed a federally approved "Ability to Benefit" test as defined by the State Education Department Commissioner Study at an approved New York state postsecondary institution Be in an approved program of study and be in good academic standing with at least a "C" average as of your 4th-semester payment Be enrolled full-time, taking 12+ credits applicable toward your degree program each semester Be charged at least $200 tuition per year Meet income eligibility limitations (see below) Not be in default on any state or federal student loans and not be in default on any state award repayment Comply with the terms of any service condition imposed by an NYS award Income limits TAP has income limits as well based on your taxable income earned within the state of New York. The exact income limits vary based on tax filing status and dependents. Here are the limits: $80,000: Dependent undergraduate students, independent students (married or unmarried) with tax dependents, or students who qualified as an orphan, foster child, or ward of the court at any time since age 13 $40,000: Independent undergrad students who are married with no other tax dependents $10,000: Single independent undergrad students with no tax dependents How to apply for TAP You should complete the Free Application for Federal Student Aid (FAFSA) every year if possible. Aside from qualifying you for all kinds of federal aid, it shows you your eligibility for the TAP program if you’re a student in New York. Applying for the FAFSA doesn’t take too long. You’ll need your parents’ financial information—or your own if you’re independent—then you’ll have to make an FSA ID log into your FAFSA. From there, you’ll fill out all the necessary information and apply for the FAFSA.  Once you finish the FAFSA and arrive at the submission confirmation page with your confirmation number and data release number, there will be a button linking directly to the TAP application. If you missed the TAP application on your FAFSA, you can still apply. The HESC will send you an email or mail you instructions for applying online within 3–4 days of completing the FAFSA.  Other New York-specific financial aid TAP is perhaps the best-known New York financial aid program, but it’s not the only one New York students can take advantage of. Consider these if you’re a New York resident and you need more aid beyond FAFSA and TAP aid. Aid for Part-time Study The Aid For Part-Time Study program is available for students in New York who are in school part-time, meaning 3–12 credit hours per semester or 4–8 credit hours per trimester. Students can earn up to $2,000 or their total tuition, whichever is smaller. The eligibility requirements are generally the same as the TAP program. APTS also has income limits based on certain tax criteria like taxable income, filing status, dependency status, and number of dependents. If you’re interested in applying, you can get an application from your school. Funds are limited and first-come, first-serve, so make sure you apply ASAP if you’re a part-time student who needs help paying for school. NYS Educational Opportunity Program The Educational Opportunity Program is a state-funded program for New York students considered economically disadvantaged and who may otherwise be financially unable to attend college. This is more than a scholarship or grant. It provides several services, including financial help, a summer pre-entry program that introduces students to college expectations, tutoring, and counseling for academic and career matters.  Excelsior Scholarship The Excelsior Scholarship helps New York students cover any remaining college expenses after other federal and state grants and scholarships, including things like TAP. Excelsior Scholarships can award up to $5,500 to cover these expenses. Most of the eligibility requirements are the same as the TAP program. Income limits change each year to adjust for inflation. For the 2021-2022 academic year, the family adjusted gross income limit was $125,000. If you still need aid after everything else, consider the Excelsior Scholarship. Enhanced Tuition Awards Program Private colleges are generally more expensive than their public counterparts.  The Enhanced Tuition Awards Program is for students attending participating private colleges within the state of New York who opt into the program. It essentially supplements the TAP program. Schools must provide a match of up to $3,000 and freeze the student’s tuition when they win to offer the maximum benefit to the student. Altogether, students can receive up to $6,000 in combined TAP, school match, and ETA awards. Other ways to pay for school in New York TAP’s a great program for students in New York, but it won’t pay for everything.  Consider the following options to secure or earn more money for college. Federal grants The federal government offers several grants to students with financial needs. Just like NYS TAP, you don’t have to pay these back. For example, the Pell Grant is the most well-known. Every year, the average Pell Grant winner gets almost $4,500 in aid. Combining that with the NYS TAP could cover nearly half a year’s tuition—all debt-free. The other major grants offered by the federal government include: Federal Supplemental Educational Opportunity Grants (FSEOG) Iraq and Afghanistan Service Grants Teacher Education Assistance for College and Higher Education (TEACH) Grants Like the TAP program, you can qualify for federal grants by filling out the FAFSA each year. You’ll see how much Pell Grant money you qualify for on your student aid report, a document sent to you after submitting your FAFSA. Non-government grants There are thousands of public and private grants beyond federal grants and the TAP program. They’re basically all need-based and designed for specific groups (like certain majors or schools), but some include a merit component. You can apply for these grants at any time throughout the year to win free money that you don’t have to repay. Scholarships Scholarships are another form of money you don’t have to pay back. The difference is most scholarships are based on merit—they’ll weigh factors like your grades, extracurriculars, and other relevant information. Some scholarships are easy to apply for, only requiring a short application. Others are longer, asking you to answer one or more questions with an essay or video. Many scholarships are specific to certain niches. For instance, they may be designed to help students of particular minority groups afford college. Other niche scholarships could be targeted toward students in certain majors or people who live in specific states. You can find tons of scholarships online or use a service like Mos to automatically match with scholarships that fit you. Work-study program Work-study is a federal aid program that lets you work part-time, up to 20 hours per week. Instead of getting paid directly, the money you’d earn covers your education costs. These jobs are often related to your major, such as working in your major’s department at the school as a research assistant. However, you could also get something more general, like a dining hall job. Additionally, some work-study jobs are off-campus at nonprofits, public agencies, and some small businesses. Jobs and internships If you don’t qualify for work-study, consider getting a non-work-study job to make some money for college. On-campus jobs, like the dining hall or a department office, tend to be more flexible about scheduling around your classes. You could also get some nice benefits, like free or discounted campus dining meals. If you’re a graduate student, you could try for a graduate assistant job, too. These look great on a resume. All that said, off-campus jobs offer more variety and, sometimes, higher pay. Speaking of higher pay, look for paid internships. Not only do they often come with bigger paychecks, but you’ll get a great resume builder and see some class material in real life. Regardless, you can find internships on-campus or off. NYS TAP FAQs Have more questions about the NYS TAP program? Check out our FAQs below. What is a NY state resident for TAP purposes? The NYS HESC defines a NY state resident for TAP purposes as the following: A legal NY resident for at least 12 months immediately preceding the first term you plan to use the award for, OR A resident for the last two semesters of high school, OR A resident of NY when entering into the armed forces, Peace Corps, or AmeriCorps Vista and re-establish NY residency within six months of release from active duty I missed the TAP on my FAFSA. Can I still apply? Yes. If you qualify as a New York state resident and listed a school in New York state on your FAFSA, the NYS HESC will send you TAP application instructions via mail or email within 3–4 days of submitting your FAFSA. Once you receive those, you can apply here. What schools does TAP let me use aid for? TAP lets you use funds at most public and private colleges and universities within New York state. You can view a full list of approved schools on the HESC’s website. How long does my TAP application take to process? Your TAP application can take 3–5 weeks to process. During certain times of the year, submitting corrections to the TAP program or completing requests for information can take longer. Additionally, the NYS HESC says to consider your award amount as an estimate until your school certifies your TAP eligibility. New York residents: Get help paying for school The TAP program makes New York’s many highly-ranked schools a little more affordable to any residents that meet the requirements. You don’t have to pay it back since TAP is a grant. The best part is that you can apply right within the FAFSA, so it's easy to see if you qualify. When you sign-up for Mos, you’ll get free help to complete your FAFSA and signposting toward other financial aid opportunities. Now, TAP won’t cover all of your costs at your chosen New York state college or university. For more information on affording your education, check out our guide on how to pay for college. 

New York has many great colleges, but they can be pricey. Learn about the NYS TAP financial aid program and see if you qualify for this New York aid program.

The complete guide to the NYS Tuition Assistance Program (TAP)

Plenty of bright and talented students out there come from backgrounds where affording the rising cost of college is nearly out of the question. Despite qualifying for scholarships and low-interest federal loans, some students still come up short while their families don’t have enough to cover the remainder. That’s why the federal Pell Grant program was designed. It helps students with a clear financial need to pay for their degree while reducing their debt burden. In this article, we’ll explain how the Pell Grant works, its eligibility requirements, and how to apply. Then, we’ll go over some other federal grants and alternative sources of aid. What is a Pell Grant? Grants are a form of need-based financial aid. This means they are awarded based on a student’s financial status rather than merit. The Pell Grant is one of the most well-known grants. It’s a federal grant you can qualify for if you file the FAFSA and meet certain requirements. As a grant, you generally don’t have to pay it back as long as you finish your studies. This makes it easier to cover your expenses and reduce your student debt burden. Since tuition costs and student loan debt keeps climbing every year, students—especially those from low-income backgrounds—are faced with a choice: Crushing debt to get a degree, or No college education The Pell Grant has helped solve this problem for a large part of students. About 34% of undergraduate students get Pell Grant awards, and 51% of Pell Grants go to families earning under $20,000 annually. A brief history of the Pell Grant In 1965, president Lyndon B. Johnson signed the Higher Education Act into law as part of his Great Society initiative.  As the name implies, the Higher Education Act was designed to make higher education more affordable, especially for low-income students. It established several educational policies and aid programs, including a grant called the Basic Education Opportunity Grant. Throughout the following years, changes were made to the program. In 1980, the BEOG was renamed the Pell Grant in honor of Claiborne Pell—a Democratic US senator from Rhode Island—to honor him for his work on improving access to higher education. For several decades, the total Pell Grant funds given out increased slowly each year to accommodate inflation and rising college costs. It spiked dramatically from 2006 to 2010, likely because of the financial crisis. However, total Pell Grant funds given out have shrunk most years since then, despite rising college costs. What can I pay for with Pell Grant money? You can use your Pell Grant money for most educational expenses, not just tuition. First, your school will receive your funds and apply them to your student account to cover tuition, fees, and other expenses. After that, they pay funds out to you to use on things like textbooks, room and board, and transportation if you commute to class. Benefits of the Pell Grant The federal Pell Grant is one of the best forms of aid if you qualify for several reasons: You don’t have to pay it back. This reduces your debt burden. It’s based on financial need. You don’t need to write essays or be at the top of your class. You can use it for virtually any education expenses, from tuition to textbooks. Funds generally don’t run out, so you don’t need to worry about going without your grant. Virtually every degree program is eligible. The government can retroactively adjust it if you increase your course load or your financial situation changes. You can get an advance on your grant if you need some of the funds ahead of time. Am I Eligible for a Pell Grant? To qualify for the Pell Grant, you must be eligible for FAFSA aid.  Here are the FAFSA eligibility requirements: US citizen or eligible noncitizen Undergrad student who hasn’t earned a bachelor's degree (with some exceptions for students in post-baccalaureate teaching programs) Enrolled already, or accepted for future enrollment as a student in an eligible degree or certificate program Have a high school diploma or a GED or have completed a high school level education in an approved home-school setting For the 2023 academic year, this has been extended to people who meet the following descriptions: Unable to complete studies due to school closing Borrowers whose loans were discharged under borrower defense to repayment Students who are incarcerated How much money can I get? The maximum Pell Grant award changes every year for inflation and tuition price increases. In the 2021-2022 academic year, the maximum award amount was $6,450 per year, and the minimum was $650.  That said, earning a Pell Grant is dependent on your financial need, so there are limits based on income and finances. The government determines your financial need based on the following: Expected Family Contribution School cost of attendance (determined by school for your program), Full-time vs. part-time student status Your plan to attend school for a full academic year or less The amount you win applies for an entire award year—from July 1 to June 30. Additionally, students can win additional aid if their parents died in the line of duty when the student was: Under 24 at the time Enrolled in school at least part-time The Department of Education covers how Pell Grant awards are calculated in more detail and your eligibility on its website. How to apply for Pell Grant The FAFSA lets you see your eligibility for all sorts of federal financial aid—the Pell Grant being one of the most important. Luckily, applying for the FAFSA doesn’t take too long. You can probably knock it out in a day (or faster, if you’ve got a couple of cups of copy to fuel your typing). You’ll need your parents’ financial information, or your own if you’re independent, and to create an FSA ID for logging in. Then, fill in the information the FAFSA asks for and submit it. After you submit the FAFSA, you’ll eventually receive a student aid report that tells you your eligibility and award amount for the Pell Grant, along with other forms of federal financial aid. Go here to learn more about filing the FAFSA, including how long it takes. Other federal grants from the US Department of Education The Pell Grant is the most well-known federal grant, but it’s not the only one. There are few others designed for students in specific situations. The good thing about these grants is the little required extra work beyond completing the FAFSA. Filling out the FAFSA will give you an idea of your eligibility for each. So with that said, here are the 3 other grants made available by the ED.) Federal Supplemental Educational Opportunity Grants (FSEOG) The Federal Supplemental Educational Opportunity Grants program is designed to help the Pell Grant winners with the most financial need. You can win $100-$4,000 if you qualify for this grant. However, funds are more limited, and not every school has these. So make sure to check with your school’s financial aid office to see if and how much FSEOG funds are available. Iraq and Afghanistan Service Grants Iraq and Afghanistan Service Grants provide more financial aid for students whose parent(s) died as a result of military service in Iraq or Afghanistan post-9/11.  Students must have been under 24 and enrolled in college at least part-time at the time of their parent’s death.  To qualify, you have to exceed the Pell Grant EFC limit and meet all the other Pell Grant eligibility requirements. As for the award amount, it’s generally equal to that year’s Pell Grant amount. For 2022, that means a max award of $6,435. However, the Budget Control Act of 2011 reduces any Iraq and Afghanistan Service Grant first disbursed on or after October 1, 2020, and before October. 1, 2022, by 5.7% from the amount you’d usually win. Teacher Education Assistance for College and Higher Education (TEACH) Grants Students in eligible teaching degree programs can get free money through the Teacher Education Assistance for College and Higher Education program.  You have to be enrolled in a TEACH-eligible program, meet grade point average requirements, and go through TEACH Grant counseling every year to qualify and stay eligible for a TEACH grant. Students can win up to $4,000 per year. That said, there are a ton of details to this program you need to know to understand if you qualify. You can find these on the Federal Student Aid website. Other ways to pay for school if the Pell Grant isn’t enough Pell Grants make a great financial aid foundation, but for most students, they’re only part of a college funding package.  If you need more aid after Pell Grants, consider these other ways to pay for college. Non-federal grants States also give out grants, usually to students who reside and attend college in that state. For instance, New York resident students who also attend college in New York State may qualify for a grant through the Tuition Assistance Program (TAP). This year, qualifying students could qualify for up to $5,665 in TAP aid.  As you can see, combining federal and state grants can go a long way in covering your education cost. Beyond that, you can also look for grants through private organizations. Organizations like Kiwanis and Rotary hand out grants to eligible students who seek them out. Scholarships Scholarships are another form of aid you don’t have to pay back. However, unlike grants, they’re generally based on merit.  This means you have to work harder to win, but at the same time, you won’t be capped on aid based on need. In theory, you could win enough scholarships to cover all your costs. Some scholarships are on the easy side of things. They only ask you to fill out a short application and answer a question or 2. Others involve a lot more work, such as long essays or videos, but the award amount can be huge. Scholarships are also targeted to all sorts of niches, such as certain majors or minority groups. For instance, the Ron Brown scholarship offers up to $10,000 per year to Black high school students demonstrating exceptional dedication to community service. Your financial aid office can point you toward scholarships, but you can also browse online or use a service like Mos to be matched automatically to great scholarships. Work-study Work-study is a federal aid program that lets you work a job—up to 20 hours per week—in exchange for some tuition assistance. Many of these jobs are on-campus and in your major, such as in your major’s department as a clerk or research assistant. However, you could be placed in a more general role, like in the dining hall. In some cases, you could be placed off-campus at public agencies, nonprofits, governments, and some small businesses. Work-study tends to be more flexible about scheduling around your classes than a regular job, but there’s less choice in job type, and you can’t work more than 20 hours per week. Just like other federal aid types, you have to fill out the FAFSA to see if you qualify for work-study. Jobs and internships Getting a job or internship while in school is a classic way to make money in college and cover some of your costs while avoiding loans. On-campus jobs are usually more accommodating when it comes to scheduling hours. They know you have to study and go to class. You could work in all sorts of roles, from the dining hall to the library, to a research lab, and more. Depending on the role, you could get a nice resume booster. If you’re willing to sacrifice potential scheduling flexibility, finding an off-campus job could open you up to more pay and better career development opportunities. You could even look for an internship in your major. These tend to pay well, and assuming your internship isn’t for credit, it’ll look great on your resume. As a result, you might land an awesome job right out of college. Your college probably has an online job board where you can start your search. You can also contact individual departments. If you’re looking off campus, check out job sites like Indeed and search in your area. These days, with the right skills and knowledge, you could even land a remote job in college and work right out of your dorm room or apartment. Once you land a job, you’ll want to manage your money responsibly to cover your expenses and reduce financial stress. Go check out our guides on saving money in college and grab one of our student budget templates to jump-start your personal financial management.  Federal Student Loans If you’ve exhausted the above and still have college costs, you’ll want to look at loans. The first type of loan programs to look at is federal student loans.  These tend to offer better rates than private loans and offer other benefits, like income-driven repayment plans, deferment and forbearance, and loan forgiveness. Plus, they come with a 6-month grace period after you leave school, during which you don’t have to make payments. This gives you time to find work so you can be financially prepared for repayment. You can qualify for these by submitting the FAFSA. There are a few types. First, those designed for undergraduate students: Direct Subsidized Loans: These don’t accrue interest or require payments until your grace period ends. Direct Unsubsidized Loans: These begin accruing interest right away, but don’t require repayment until the grace period ends. There’s another type of loan, called a Direct PLUS loan, of which there are 2 types: Grad PLUS Loans: These are designed for graduate and professional students. Parent PLUS Loans: Parents can take these out to help pay for their dependent student’s college. Check out our grant vs. loan comparison to learn more about the benefits and drawbacks of each aid type. Private student loans Private student loans are any student loans you can get through lenders, banks, and other private institutions. These should be your last resort because they have a few downsides. For one, they come with higher rates than federal student loans, in some cases, significantly higher. They don’t offer loan forgiveness or income-driven repayment programs in most cases, and may not provide deferment or forbearance. Additionally, the lender might demand you start repaying these loans while in college. Not exactly affordable when you’re a student. Plus, even qualifying for one can be harder than federal loans. If you have little to no credit score or history, the lender might make you get a cosigner, like your parents. Pell Grant FAQs Have more questions about the Pell Grant? Take a look at our Pell Grant FAQs below. Do I ever have to pay back federal grants? You generally don’t have to repay grants, except in certain uncommon circumstances: You withdrew early from a program a grant was given to you to pay for. Your enrollment status changed in a way that reduces grant eligibility, such as dropping from full-time to part-time. You got outside scholarships or grants that cut your financial aid needs. You got a TEACH Grant but didn’t meet your TEACH Grant service obligation requirements. Do I have to apply for Pell Grants every year? Yes. You have to apply for the Pell Grant through the FAFSA every year that you wish to win it. The FAFSA is free and doesn’t take long, so there’s no downside to applying—even if you don’t think you’ll win. Do I have to accept my Pell Grant? You do not have to accept your Pell Grant every year, although you should if you need aid since it’s tax-free when used for education expenses, and you don’t need to repay it. You can also return disbursed Pell Grant funds midway through the year if unused. This may increase your lifetime eligibility again since the funds weren’t used. Are Pell Grants first-come, first-serve? Pell Grants are not first-come, first-serve. In fact, they’re one of the only forms of aid that generally doesn’t run out, alongside student loans. Every school receives enough money to fund the program. However, most other grants may run out—especially private and state grants.  Similarly, scholarships and work-study can run dry. How is my Pell Grant paid out? If you accept a Pell Grant, the school will credit your student account to cover your tuition, fees, and other expenses they charge. The remainder, if any, is paid to you directly. You could then use these funds to pay for other expenses yourself. The school then gets reimbursed by the government for the funds they dole out. Can I use the Pell Grant for the summer semester? Potentially. Students eligible for a regular Pell Grant may qualify for additional aid to cover summer classes. If you’re eligible, you can receive up to 150% of your typical Pell Grant award for the year. For instance, if you typically qualify for $4,000 in Pell Grants total for the fall and winter semesters, you could get an additional $2,000 for summer courses. Contact your financial aid office to learn more about getting Pell Grant aid for summer classes.  That said, keep in mind that you can only get Pell Grants for 12 semesters, or 6 years maximum.  Get debt-free financial aid through the Pell Grant Pell Grants help bright minds get the college education their hard work has earned them. At the same time, it makes it easier to get through school with a little less debt, setting you up for a less stressful life post-graduation. But for most students, Pell Grants won’t cover all school costs. Instead, it’ll make up a portion of an overall plan to pay for college. Check out our guide on how to pay for college to learn more ways to cover tuition, fees, and other education expenses. 

Tuition’s rising, so you need every free college dollar you can get. Read about the Pell Grant and eligibility, plus other ways to help pay for college.

Your complete guide to the Federal Pell Grant

No one wants to default on their student loans and have a big chunk of their paycheck taken away to cover the debt. But that's exactly what happens when you don't (or can't) make your payments. If you're worried about student loan wage garnishment and you're not sure what to do next, or Uncle Sam is already "taking his cut" from your pay, and you want him to stop, then you're in the right place. In this article, we'll talk about what student loan wage garnishment is, how it happens, and how you can stop it. We'll also dish out some tips on how you can avoid it entirely. What is student loan wage garnishment (and why does it happen?)  Have you ever wondered what happens when you don't pay your student loans?  The good news? You won't go to jail—that’s not how student loans work. The bad news? You’ll face a series of stressful, long-term consequences—one of which is wage garnishment. Student loan wage garnishment is when your student loan lender withholds a chunk of your income to pay back your student debt. And it happens because you’ve neglected to pay your loans and defaulted on your debt. Federal student loans enter default if you fail to make payments for 270 days. Private loans work similarly. Now, keeping your loan in good standing is the best tactic to avoid defaulting and having your wages garnished. But sometimes life deals you a lousy hand—and that’s understandable.  Just remember that wage garnishment isn’t the end of the world and that there are ways to prevent and stop it once you’ve been served a garnishment notice. Can private student loan lenders garnish your wage? Private loan lenders can garnish your wages if you’ve defaulted on your student loans, though the process differs from wage garnishment for federal loans. We’ll explore the process for both federal and private loan wage garnishment next. For now, the vital thing to remember is that both private and federal lenders can garnish your wages if you miss enough monthly payments. What happens when student loans garnish your wages? Here we’ll explore what happens when your student loans are garnished. We’ll discuss federal and private student loans separately, as they each follow a significantly different process. Federal student loans After missing 270 days of payments, the US Department of Education (the lender) passes your defaulted loans to their collections office, the Default Resolution Group (DRG).  Once the DRG takes control of your loan, it can start garnishing your wages using its administrative wage garnishment process (AWG). The AWG is a powerful debt collection process, granting any federal agency the power to garnish up to 15% of any non-federal employee’s wage to pay a delinquent debt. With the AWG process, these agencies do not require a court order to collect your wages. Federal agencies issue AWG orders to employers using Standard Form 329. (Image Source) Private student loans Private student loan wage garnishment follows a different process from federal wage garnishment. For starters, private lenders need a court order before they can start skimming your wages—more on that in a second. Like federal loans, private loans default after you’ve failed to make payments. But unlike federal loans, most private loans default after 120 days, though this time frame varies from lender to lender. Next, private lenders assign your loan to an in-house collections department or send it to a debt collection agency. And finally, private lenders (or whoever holds your debt) must sue you, take you to court, and receive a court order before they can garnish your wages. How much of your wage can be garnished? Under the administrative wage garnishment process, the federal government can collect up to 15% of your disposable income until your loan is paid. Private student loan lenders can garnish up to 25% of your disposable income but require a court order. How to stop student loan wage garnishment once it’s started? If your student loan is in default and your wages are already being garnished, don’t panic—there are ways to stop it.  Let’s explore a few tactics to stop wage garnishment and shoo away debt collectors from your paycheck. Loan rehabilitation Loan rehabilitation is an absolute life-saver if you’ve defaulted on your student debt. It stops wage garnishment and also removes your loan’s default status from your credit report. Not bad, right? However, loan rehab is a one-time lifeline, so don’t agree to it unless you’re 100% sure you can meet the terms. Here’s how to enroll in loan rehabilitation for federal student loans: Contact your loan holder to see if you’re eligible If you’re eligible, your loan holder will request your latest tax returns Your loan holder calculates a monthly payment equal to 15% of your discretionary income If you agree to make 9 consecutive monthly payments in 10 months, you’re enrolled in the loan rehabilitation program Unfortunately, most private lenders don’t offer a 9-month payment loan rehabilitation option—if they even offer rehabilitation at all. So if you’ve defaulted on your private loans, reach out to your lender and see what payment assistance programs they provide.  Declare bankruptcy Filing for bankruptcy halts wage garnishment while your case is open. But be warned, declaring bankruptcy—and proving your severe financial hardship to the court—is a Herculean trial. Yes, bankruptcy is stressful. But if your financial hardships hinder your quality of life and wage garnishment is making it worse, bankruptcy can help soften the blow. If you’re considering bankruptcy, chat with a student loan lawyer and see if it’s a viable option. Pay off your loans in full Paying off your student loans completely will immediately stop wage garnishment. Of course, this is far easier said than done. If you have the money to pay off your debt, kudos to you! If not, don’t worry—you still have options. Dispute the wage garnishment and request a hearing If you receive a wage garnishment notice from the federal government, you have the right to dispute the notice and request a hearing, in writing, within 30 days. Technically, you can’t request a hearing after wage garnishment starts. But because it first requires that you default on your loans and receive a notice, it’s a bit of a gray area. We’ll cover the specifics of garnishment disputes and hearings in a few minutes. The important thing to know is that you can challenge a garnishment notice, but you only have a narrow window to make it happen. 5 ways to prevent student loan wage garnishment 1. Loan consolidation Loan consolidation takes multiple loans and combines them into one big loan with a fixed interest rate. This way, you only need to manage one payment instead of juggling several simultaneously.  You can consolidate your federal loans into a Direct Consolidated Loan at no extra cost. Private lenders, however, may charge a fee—if they even offer loan consolidation. The bottom line is that loan consolidation makes it easier to manage your debt and keep it in good standing. And the icing on the cake is that you’ll likely secure a better overall interest rate by consolidating your loans, saving you a ton of money over your repayment period. 2. Loan deferment A loan deferment is like putting your payments on pause. If you have federal student loans, you may be eligible for a deferment if you meet approved conditions, like: You’re undergoing cancer treatment. You’re facing economic hardship. You’ve been accepted into a graduate fellowship program. You’re enrolled in school and have at least a 50% course load. You’re on active military duty. You’ve been involuntarily unemployed. Private lenders aren’t required to offer loan deferment programs but some do for exceptional cases, like the reasons listed above. Despite what you may have heard about loan deferment, certain federal loans still accrue interest when deferred. These loans are listed below: Direct Unsubsidized Loans Unsubsidized Stafford Loans Direct PLUS Loans Direct Consolidated Loans The unsubsidized portion of FFEL consolidated loans Similarly, private loans will likely accrue interest during a deferment, but terms and conditions vary. Remember deferment is only temporary. But if life’s circumstances or your financial struggles have you worried about defaulting on your loans and having your wages withheld, you have the option to hit the pause button. 3. Loan forbearance Like deferment, forbearance lets you stop paying your loans temporarily, usually for 12 months. Interest still accrues on your loans, but forbearance is an option if you need the relief. Qualifying for a forbearance on your federal loans requires similar conditions as deferment, such as: You’re experiencing financial hardships. You’ve been hit with unexpected medical expenses. You’ve lost your job. Most private lenders also allow borrowers to request a forbearance. But, again, the exact terms and eligibility requirements vary by lender. Even though forbearance is temporary, it’s a handy strategy for preventing loan default and having your wages garnished, so don’t be shy about applying for a forbearance program. 4. Refinance at a cheaper rate How does a cheaper interest rate on your loans sound? Well, that's precisely the goal when you refinance your student loans. Refinancing means trading in your old loans for new ones with better terms. These terms may include a cheaper interest rate, a longer repayment period, or both. Either option helps lower your monthly payment, making it easier to manage your student debt and avoid defaulting on your loans. Like private loans, federal student loans can be refinanced with a private lender. But if you do refinance your federal loans, you’ll lose all the perks and protections that come with federal student loans, like deferment, forbearance, and income-driven repayment programs (more on that next). 5. Request an income-driven repayment plan Federal income-driven repayment (IDR) plans offer you a more affordable monthly student loan payment but come with a much longer repayment period. With an IDR plan, monthly payments are based on a percentage of what you earn—usually 10–20% of your discretionary income. Most federal student loans qualify for at least 1 of 4 income-driven repayment plans: Revised Pay As You Earn Repayment Plan (REPAYE Plan) Pay As You Earn Repayment Plan (PAYE Plan) Income-Based Repayment Plan (IBR Plan) Income-Contingent Repayment Plan (ICR Plan) Now, income-driven repayment plans extend your repayment period to 20–25 years, meaning you’ll pay a lot more in interest over time. But following that repayment period, any remaining balance on your loans is forgiven.  Private student loan providers may offer income-driven or voluntary repayment programs, but the repayment periods won’t be as generous. They’ll also expect the balance to be paid in full when the repayment period ends. When (and how) to dispute wage garnishment Just because you’ve been served a wage garnishment notice doesn’t mean you can’t fight it. Below we’ll review valid reasons for disputing a wage garnishment and, following that, walk you through how you can request a hearing. Reasons for disputing wage garnishment You have the right to dispute a federal student loan wage garnishment and request a hearing if: Wage garnishment will cause extreme financial hardship, such that you can’t keep a minimum standard of living. You’ve been employed for less than 12 months following a period of involuntary unemployment. You believe the loan is invalid for whatever reason (for example, you think your balance has been miscalculated or that the loan isn’t yours). Remember, these conditions only apply to federal student loans. Disputing private student loan wage garnishment is a different story. With private loan disputes, you’ll likely end up in court and must prove to a judge that you can’t pay your student loans and that wage garnishment would ruin you financially.  How to request a garnishment dispute hearing After the Department of Education sends your notice of wage garnishment, you’ll have 30 days to request a hearing in writing. After receiving your request, your loan holder will schedule the hearing. Meanwhile, you’ll need to collect proof that supports your garnishment dispute.  Your hearing may be held in person or over the phone. But in some cases, a formal hearing isn’t held at all. Instead, your loan holder simply reviews your proof-supporting documents to make their final decision. Following the hearing, it takes about 60 days, starting from the time that your hearing request was received, to receive a decision about your wage garnishment. The final decision on your garnishment dispute has 2 outcomes: Your dispute was successful, and you’ll avoid wage garnishment for 12 months (or the percentage of your garnished wages will be reduced). Your dispute was unsuccessful, and the government garnishes 15% of your wages. Frequently Asked Questions How can I get my student loan out of garnishment? For federal student loans, your options include requesting a garnishment dispute hearing, applying for the loan rehabilitation program, declaring bankruptcy, or paying your loans in full. For private student loans, contact your lender and ask if they offer any wage garnishment support programs or alternatives. If your lender doesn’t provide support, declaring bankruptcy or paying off your loans in full may be your only options. Does garnishment affect your credit score? Technically, defaulting on your student loans affects your credit score, not wage garnishment. So if your wages are being withheld, the damage to your credit score is already done. How long can student loans be garnished? Garnishment continues until your debt is paid. However, if you’re enrolled in an income-driven repayment plan, the unpaid balance on your federal loans is forgiven after 20–25 years. Can student loans garnish your tax refund? Yes. If you’ve defaulted on a federal loan, the federal government can garnish your income tax refund to help repay your debt.  Curb student loan wage garnishment (and keep Uncle Sam out of your paycheck) Having your wages garnished to pay your student debt is like adding salt to a financial wound—it's defeating, embarrassing, and often doesn't do anything to address the real problem, the necessity of large student loans to fund study.  The best way to handle wage garnishment is to curb it altogether. But that's not always an option. So if you've been dealt a lousy hand and find yourself surrendering your money to the government before it hits your bank account, try some of the strategies outlined in this article.  The most important thing you can do to steer your finances is to stay educated. Keep up to date on the latest student debt developments and strategies with Mos. 

Learn what student loan wage garnishment is, why it happens, and how you can stop (and prevent) your wages from being garnished.

Student loan wage garnishment: what it is and how to protect yourself

It doesn’t matter where you choose to go to school or how much money your family has in the bank: college is expensive. That’s why so many students and their families turn to loans. Today, around 65% of students graduate from college with student loan debt. A lot of that debt stems from federal student loans—which tend to include some great consumer protections like fixed interest rates, income-based repayment plans, and even the potential for loan forgiveness. But even with a federal student loan, you could be signing on for up to three decades’ worth of monthly payments that aren’t going to make your adult life any easier. That’s why a lot of students are tempted to pay for college without loans—and, fortunately, there are plenty of options out there that can help you achieve that. This guide explains why student loans aren’t ideal for all students, how grants and scholarships work, and everything you need to know about the federal work-study program. Are student loans a good idea for everyone? For a lot of students, the cost of college is just plain unattainable without loan assistance. But in exchange for accepting that generous financial aid, you’re then obligated to take on overwhelming long-term debt that’ll follow you around for years. Let’s crunch the numbers here. Right now, student loan debt in the US is sitting pretty at around $1.762 trillion—and the vast majority of that money is owed to the US Department of Education. The US Government’s Federal Loan Portfolio alone is currently more than $1.606 trillion. In terms of how this loan burden affects each student borrower, there are 43.4 million borrowers in the US who’ve got federal student loan debt. The average balance owed by each student is $37,113. When you factor in private student loans, researchers say the average student loan debt is probably as high as $40,904 per person. That’s nothing to scoff at—and depending on the loan amount you’ve borrowed and the repayment plan you’re on, this balance could be with you for quite a while. Federal student loans can take anywhere between 10 years and 30 years to pay back. Simply put, a lot of families (or independent students) understandably don’t want that sort of debt hanging over their heads for decades. But unless you’re fortunate enough to have tens of thousands of dollars sitting in the bank, you’re going to need to focus on different forms of financial aid to pay for college. Fortunately, there are alternative sources of funding available that don’t need repaying—and we’re happy to walk you through them. How to pay for college using grants If you’re keen to pay for college without loans, grants are a fantastic place to start. It’s not always possible to pay for the entire cost of college with grants alone, but if you combine multiple grants and scholarships, you might be able to cover college costs like the cost of tuition and your living expenses. Let’s explore the ins and outs of college grants. What are grants? Before we get into how to pay for college using grants, let’s take a step back and talk about what we actually mean when we’re talking about grants. A college grant is a form of financial aid called “gift aid.” Gift aid is funding support that’s gifted to the student, AKA, you don’t need to repay it. Grants are typically available from your state government, the federal government, your college, university, community college, or trade school. Most academic grants are offered to students based on their financial need. These are called needs-based grants, and the popular Federal Pell Grant program falls into this category. To be eligible for a needs-based grant, you’ll need to provide proof that your income (or your family’s income) falls below a certain threshold. That being said, not all college grants are awarded based on your financial needs. Colleges and trade schools often award grants that are based on your background, the community you come from, the subject you major in, and a wide range of other factors. So, what are your chances of getting a grant to pay for college? To be honest, your chances are pretty good. The federal government has an annual student grant budget of around $32 billion. Approximately 41% of all undergraduate students receive a federal grant—and those awards average $5,179 per student per year. How to apply for grants If you want to apply for a college grant, you’ll normally need to complete and submit the Free Application for Federal Student Aid (FAFSA).  The FAFSA is the universal application form the US Department of Education’s Federal Student Aid office uses to figure out the amount of financial aid you’ll be entitled to for a given school year.  Students can complete the FAFSA online or through Federal Student Aid’s mobile app. It doesn’t take very long to complete—but you’ve got to make sure you have any relevant documents handy when completing your FAFSA. This includes information about you and your family’s income, any large outstanding debts that’d affect your ability to pay for college, and recent IRS tax returns. After you complete and submit your FAFSA, this information will be passed on to your state government and your college. You should then get a financial aid offer from your school’s financial aid office outlining which federal grants, state grants, or school-specific grants will be available for you. That said, some state grants or school grants may require additional information or documentation—so just be aware that extra steps could be involved for particular grants after completing your FAFSA. Plus, there may be state-based or school-specific grants that don’t use the FAFSA to determine eligibility. That means you should still look around and do some research after receiving your financial aid offer to see if there are additional private grants available for you. Remember: even if you know you won’t qualify for a federal student grant, you might still be in a position to qualify for a state-based grant. That’s why you must complete the FAFSA every year you plan on going to college. After all, you miss 100% of the shots you don’t take. Translation: if you don’t apply for any grants, you won’t get any. How to pay for college using scholarships There’s a misconception out there that only certified geniuses or basketball stars get scholarships. But the truth is, there are literally over a million scholarships out there—which means there are scholarships for almost everybody. You’ve just got to understand what scholarships are, how they work, where to find them, and how to apply. What is a scholarship? A scholarship is another form of gift aid. It’s a cash award for educational purposes that you aren’t required to pay back. So a scholarship is basically free money to pay for school—which makes it a great way to afford college without taking out massive student loans. In 2020, around 58% of US students and their families received one or more scholarships to pay for school. This isn’t surprising, given how many scholarships there are out there.  In 2022, there are currently about 1.7 million scholarships available from colleges, employers, charities, companies, community groups, religious groups, trade schools, and loads of other organizations. Some of these scholarships are need-based, like grants. But others are awarded based on your academic results, your background, or your interests. You’ll get both broad scholarship programs designed for inclusivity as well as niche scholarships with really specific eligibility requirements. That means no matter where you’re coming from or what you’re into, chances are there’s a scholarship out there for you. How to apply for scholarships Each scholarship tends to have its own set of eligibility requirements and will be administered by a different group or organization. As a result, each scholarship usually has its own application process and requirements. That means it’s up to you to do your homework, figure out when and how to apply and get everything in on time to make sure your application is considered. The first step is tracking down a scholarship you’d like to apply for. After finding a scholarship that looks suitable, you should check out the scholarship’s website to find out how to apply. Make sure you take your time reading all of the scholarship materials and understand the application process and what’s expected of you as an applicant. If you end up forgetting a step, you could be kissing a big scholarship goodbye. One way to avoid costly mistakes like this is to get professional help. That’s where Mos comes to the rescue. When you set up an account with Mos, you get access to the largest scholarship pool in America. You can also get help from dedicated advisors to connect you with scholarships you’re eligible to apply for. After getting matched with scholarships, you’ve just got to follow a few easy instructions on how to apply for each scholarship program.  How to pay for college using work-study Another way to pay for college without loans is to use the federal work-study program. Work-study isn’t quite as well known as some of the other forms of federal student aid—but for those keen on getting work experience while earning money to pay for school, it’s a pretty smart option. Here’s a quick rundown on how the work-study program functions and how to apply. What is work-study? Work-study is a type of federal financial aid you can use to pay for college. Students who’re able to qualify for the work-study program can get a part-time job of up to 20 hours per week while working towards a college degree. Most of the work-study jobs you’ll find are on-campus jobs in which you’re able to work directly for your school. That being said, other work-study jobs can be based off-campus and are with local businesses, non-profits, or public agencies affiliated with the school. There are around 3,400 schools in the US that offer work-study programs—and around 16% of all college students utilized the federal work-study program in 2021. If you’re awarded work-study aid in your financial award letter, that means you’ve qualified. But responsibility then rests with you to go out and find a work-study job. This job can then help you to earn money to pay for school or other expenses. How to apply for work-study If you want to apply for work-study, there are two applications you’ll need to complete: the FAFSA as well as an application for each particular job. As we’ve already touched upon, the FAFSA is the US Department of Education’s universal financial aid application. If you want to take part in work-study, you’ll need to indicate this on your FAFSA form. But even if you’re invited to take on a work-study job as part of your financial aid package, it doesn’t guarantee you’ll get a job. You’ve then got to fill out individual applications for each opportunity. That said, getting approved for work-study by the federal government will make it a lot easier for you to find a part-time job. Most schools that offer on-campus jobs are keen to hire students who have been designated as work-study students by the Federal Student Aid office. It’s also important to note that you need to renew your work-study eligibility on an annual basis. That means you’ve got to submit a FAFSA for each academic year you want to maintain eligibility. Conclusion At the end of the day, loans are an easy way to pay for college because they’re so accessible. But most students and families would understandably prefer not to rely solely on loans. After all, a student loan burden can hang over your shoulder for decades—and so choosing to pay for college without loans will empower you with more financial freedom after graduating. Fortunately, there are plenty of financial aid options available that can help you pay for college without taking on debt—and the most popular options are grants, scholarships, and work-study. Want to learn more about how to pay for college without loans? Join Mos now to find out about financial aid and to get matched with loads of scholarships and other financial aid opportunities to help you make the most of your time in college. 


Want to pay for college without student loans? Check out this Mos guide to find out how.

How to pay for college without loans

In 2022, the average total cost of college for a first-time, full-time undergraduate student is $35,331 per year. But don’t let the high sticker price scare you away from getting educated.  There’s plenty of financial aid available out there. Over 83% of college students received some form of financial aid to help make ends meet in 2021. Some of that financial aid is free, and some of it you have to pay back (student loans). Taking free money is always a good idea. But before accepting a student loan, you need to figure out if borrowing makes financial sense for you. In this article, we’ll break down what student loans are, their pros and cons, and how to determine if a student loan is right for you.  What is financial aid? Financial aid is money to help you cover the costs of college through the federal or state government, schools, private businesses, or other organizations. Examples of financial aid include grants, scholarships, work-study programs, and federal student loans. Some financial aid is free—you never have to pay it back. For example, the Federal Pell Grant is free financial aid of up to $6,496 (in 2022) based on your financial need. You don’t have to repay a Federal Pell Grant. With other types of financial aid, you need to eventually repay it. For example, a Stafford loan is a type of federal student loan that you need to pay back to the Department of Education. What are the types of free financial aid? The three main types of free financial aid are scholarships, grants, and work-study programs. Scholarships Scholarships are merit-based awards based on your academic performance, extracurricular achievements, or association with specific organizations. The most well-known scholarship based on academic performance is the National Merit Scholarship, which rewards high scorers of the Preliminary Scholastic Aptitude Test (SAT)/National Merit Scholarship Qualifying Test (PSAT/NMSQT). Other scholarships are available to students displaying exceptional talent (e.g., artistic talent, athletic ability) or involvement in organizations (e.g., community service, plans to work for a company or within an industry). Other scholarships are available to students for a wide variety of reasons, including family background, race, or ethnicity. Grants A grant is free money for students with demonstrated financial hardships. Grants are need-based financial aid. The federal government is the main source of grants, budgeting $31.7 billion in federal grants in 2021. Some examples of federal grants are the Federal Supplemental Education Opportunity Grant (available to students with an extreme financial burden), and the Iraq and Afghanistan Service Grant (available to children of military service members who died in the Iraq or Afghanistan wars). State governments, private organizations, and schools may offer grants as well. Work-study programs A work-study program is financial aid that you need to earn by performing an eligible job. Undergraduate and graduate students need to demonstrate financial need to apply for work-study programs.  The application for a work-study program is competitive. In 2021, only 18% of students received such federal financial aid. In addition to the government, local nonprofit organizations and universities employ students through work-study jobs. What is financial aid that I need to repay? Typically, student loans are the only type of financial aid that you have to pay back even if you finish your studies without issue. The need for repayment is the main reason you should first maximize your free financial aid before considering student loans. You can seek to borrow from the federal government (federal student loans) or from private lenders (private student loans). Federal education loans The federal government offers federal education loans through the Department of Education. In 2021, the average federal education loan was $8,825 per year. There are four main types of federal loans: Subsidized loans: The federal government pays for the interest while the undergraduate student attends school. These federal student loan interest payments prevent it from growing exponentially while you are in school. Unsubsidized loans: This type of loan is available to undergraduate and graduate students. The interest of an unsubsidized loan starts accumulating from day one of the loan. PLUS loans: An undergraduate or graduate student with a good credit history can use their creditworthiness to apply for a PLUS loan. Also, a parent or guardian may take out a PLUS loan to pay for college degree expenses. Consolidation loans: After graduation, you can combine all of your federal student loan debt into a single consolidation loan. Private education loans In addition to the federal government, other organizations provide loans (private education loans). States, universities, and financial institutions offer private debt to student borrowers. Private education loans aren’t as common as federal loans. In 2021, 13% of students chose private debt. How are federal loans and private student loans different? Federal and private student loans have several key differences: Interest rate: Typically, federal student loan rates are lower than those of private ones. Federal loan interest rates are set for the life of the loan, while private loan rates may or may not change (variable interest rates). Loan subsidy: Subsidized federal loans cover your interest payments while you attend school. Most private loans aren’t subsidized.  Start of repayment: All private loans require you to start paying the loan right away. Unless you drop out of college or attend less than half-time, you won’t need to repay a federal loan before graduation. Loan consolidation: Consolidation loans are an option with federal student loans. A private lender isn’t required to provide a consolidated loan option. Repayment options: Federal loans provide more flexible repayment arrangements than private loans. Some options include a 6-month repayment grace period and a series of income-driven repayment plans.  Why are federal loans preferable to private loans?  All things equal, you should exhaust all free financial aid before you consider borrowing. If you do need to take out a student loan, here’s why federal loans are preferable to private ones. No credit check or credit history needed With most federal student options, you won’t need to have an existing credit history. Only a few federal options, such as a PLUS loan, consider your credit history when applying. A federal loan is typically more friendly to first-time student borrowers with little to no credit history.  Payments aren’t due until after graduation Yes, a federal loan provides you with a grace period of six months after graduation before repayment.  You may also ask to postpone the start of repayment if you’re going through financial hardships. The government covers interest payments until graduation One of the major federal benefits is that the government covers interest payments on its subsidized loans until graduation.  Unlike subsidized federal loans, all private loans start charging you interest from day one. Fixed interest rates and often lower than that of private loans Currently, the Department of Education has set an interest rate on its loans at 0%. This temporary relief measure is set to expire on August 31, 2022. Still, the latest schedule of interest rates before the COVID pandemic shows that federal loans have lower interest rates than those of private loans. And federal loan rates aren’t variable rates. Income-driven repayment plans & loan forgiveness Federal student loans also offer the opportunity to participate in income-driven repayment plans, and in certain cases, you can even have your remaining federal student loans “forgiven” through special programs. What are the pros of student loans? Here are some of the pros of taking on student debt. Higher earning potential There’s no way around it: college grads tend to earn more (significantly more) than high school grads.  If a student loan is the only way that allows you to pursue and complete a college education, then it may be a worthwhile investment. Payment isn’t due until after graduation Subsidized federal loans allow you to defer payment for up to 6 months after graduation.  If you can’t land a job or suffer financial hardships, you may be able to push back your repayment start date even longer. Student loan interest deduction When you take out a student loan, you or your parents may claim a college tax credit or deduction on a tax return.  Some of the available tax breaks include the American Opportunity Tax Credit, the Lifetime Learning Credit, and the Student Loan Interest Deduction. Credit history For many students, a student loan is their very first form of credit. When properly managed, student loans can help you build up a credit history. Your credit score is based on your credit history, and you’ll need one to apply for a car loan, credit card, or mortgage. Loan forgiveness Some professions (e.g., nursing, teaching) and industries (e.g., public government) may make you eligible for student loan forgiveness. Repayment options Federal student loans offer many repayment options. Based on your unique financial situation, you may be eligible for making repayments based on your income, applying for a delay on the start of payments, or securing a discharge or forgiveness of your loan. What are the cons of student loans?  Now, let’s review the disadvantages of having student debt. Potential delay of other financial plans In 2022, the average federal loan debt balance for American students stands at $37,104. While a college degree may increase your earning potential, a hefty school loan debt may hinder your other financial plans.  If you have to put away several hundred dollars in monthly payments, you may have a hard time saving for a home down payment or building a nest egg. Sign a legal document Taking on student debt is a serious matter.  To accept a student loan, you have to sign a FAFSA master promissory note (FAFSA MPN).  A FAFSA MPN is a legal document in which you promise to repay your entire loan, all of its applicable interest, and any fees to the US Department of Education. Additionally, you may have to sign more than one MPN. Your lender may require you to sign a new MPN every year or to take on additional debt.  Fees and penalties Just like responsibly managing your student debt can build up your credit, irresponsibly handling debt can wreck it. If you were to completely default on your debt, your credit history would take a big hit. Penalties for defaulting on student debt include extra fees, added interest, and wage garnishment. Here’s an overview of what happens when you don’t pay student loans at all: The good news is that you do have options when you can’t afford your student loan payments. Your lender is often able to help you get back on track with payments. The first step is always to reach out to your lender right away. What are some criteria to decide if I should take out student loans?  Let’s break down some guidelines for determining if you should take on student debt. You’ve exhausted all grants and scholarship options There is free money out there for the taking, but it's estimated that every year about $2 billion in grants go unclaimed. Make sure to fill out the FAFSA because it allows you to apply for about $120 billion in financial aid every year. Also explore private scholarship and grant options — Mos gives you easy access to the largest scholarship pool in the US. Can you work sustainably alongside your studies? Seek out jobs that match your schedule and allow you to cover some everyday expenses, even if you won’t earn enough to fund your studies. That includes options like: Work-study programs: The average undergraduate student earned $1,794 through work-study programs per year in 2021. Job tuition reimbursement: Some employers, such as Bank of America, Starbucks, UPS, and Walmart, reimburse eligible college expenses. On-campus work: From participating in studies to working in the library, you have many options to earn money on campus. Can you be flexible with your school plans? Choosing between in-state and out-of-state tuition can make a big difference in your school budget. Choosing a school in your state may allow you to avoid taking on school debt.  Also, you could consider first moving to the state of your target school, gaining residence, and only then starting attending. Another option would be to first complete credits at a community college and then transfer to a more expensive school later in your studies. Make sure you maximize free financial aid first While you could borrow up to $5,500 in federal loans as a dependent undergraduate in your first year, it doesn’t mean you should.  Student loans are often part of a financial award package. Look for ways that you can increase the amount of free financial aid so that you minimize your loan amount. Remember that you can appeal a financial aid award letter. Conclusion Student loans aren’t always the right path to paying for college. Despite the rising cost of college, it’s possible to complete a debt-free degree. Remember that over 83% of college students received some form of financial aid to help make ends meet in 2021. After exhausting all free financial aid options, you may have to take out a student loan. The key is to keep a manageable debt load and stick with subsidized federal loans as much as possible. Sign up for Mos to make sure that you’re not leaving money on the table and maximize your free financial aid from federal and private sources.  


The responsible use of student loans can help you cover the gap between the cost of tuition and free financial aid.

What are the pros and cons of student loans?

Completing an undergraduate degree is a great way to kickstart a new career and get the ball rolling toward chasing your dreams. But if you really want to shift into high gear and give your career potential a boost, going to grad school can be a pretty smart move. College is expensive—but fortunately, there are plenty of generous financial aid opportunities out there that grad school students can use to fund a master’s degree. The tricky part is finding them all—which is where the government’s Free Application for Federal Student Aid (FAFSA) comes in handy. If you’ve completed an undergraduate degree, chances are you’re already well-acquainted with the FAFSA. But not all undergraduate students know that you can also use the FAFSA to apply for graduate school funding. This guide explains what the FAFSA is, how the FAFSA can be used to cover graduate school funding, the difference between using a FAFSA to cover graduate school vs. an undergraduate degree, and more. What is the FAFSA? Before we speed right into the FAFSA and how it can be used to support postgraduate funding, let’s pump the brakes and talk about what people mean when they’re talking about the FAFSA. FAFSA stands for the “Free Application for Federal Student Aid.” It’s the universal application form used by the US Department of Education’s Office of Federal Student Aid to determine a student’s eligibility to receive financial aid to pay for college or other types of higher education. But it’s not just the US government that looks at your FAFSA to figure out how much federal aid you’re entitled to. Your state government will also use the information you provide on your FAFSA to assess your eligibility for state aid. Plus, your school will use the FAFSA to decide how much institutional aid you’re able to secure. Exactly how universal is the FAFSA? Every year, more than 17 million students file the FAFSA. Those students are then given over $112 billion in low-interest loans, grants, and work-study opportunities from the US Department of Education. Bearing that in mind, it’s fair to say a large proportion of the student population relies on the FAFSA. Fortunately, completing the FAFSA is fast and simple. The form itself asks for basic information about you or your family’s finances. This includes information about your income and any relevant tax returns. FAFSA applications open on October 1 every year, and they’re due by June 30 of the year when you actually attend school. But it’s important to bear in mind that you’ve got to complete and submit a FAFSA for each year you need funding. Does the FAFSA cover graduate school? Simply put, yes: the FAFSA can cover financial aid for graduate school as well as for undergraduate study. Earning a master’s degree or another postgraduate distinction is a great way to boost your career—but the cost can be a major barrier. Fortunately, you probably won't have to cover that full cost on your own. There are many financial aid opportunities available. But to access them, you’ll have to fill out the FAFSA just like undergraduate students do. Translation: not only does the FAFSA cover graduate school funding, but it can help connect you with some pretty generous financial aid packages that could mean the difference between completing your master’s or not. Fortunately, completing and submitting the FAFSA as a graduate student is pretty similar to completing it as an undergraduate student. You’re required to include the same sort of information about tax returns, your bank accounts, and details on any investments. There are a few differences, but we’ll get to that in just a minute. It normally takes about 30 minutes to complete the FAFSA, and you can choose as many as 10 schools to send your FAFSA to. How is the FAFSA different for graduate school than for undergraduate financial aid? If you applied for FAFSA as an undergraduate student, the process is pretty similar to what you’ll be doing when you apply as a grad student. Because the application form is universal, the fields and pages you’ll be navigating are the exact same whether you’re applying for a bachelor’s degree or a postgraduate degree. Both undergraduates and postgraduates can fill out the FAFSA in-browser on the Federal Student Aid website. They can also download the myStudentAid app from the iOS App Store or for Android via Google Play. That being said, there are some important differences you should be aware of. To help you get started, we’ll quickly walk you through the key distinctions between completing the FAFSA for graduate school and completing it as an undergrad student. Your dependency status The biggest difference between completing the FAFSA to cover graduate school and completing it for undergraduate degrees is that postgraduates are considered independents. What is an independent? When most undergraduates complete the FAFSA, they’re normally considered a dependent of their parents for the purposes of federal student aid. To qualify as a dependent, you’ve got to fulfill some eligibility requirements. These include the requirement to be under 24 years old, unmarried, and working to achieve an undergraduate degree. But if you're going to be working toward a degree that's considered a graduate-level or professional-level degree, you'll automatically be considered an independent for financial aid purposes. This applies no matter how old you are or whether you're living with your parents. This means you’re going to have to fill out your FAFSA with your own financial information rather than the financial information of your parents. That being said, there’s an exception to the rule here. Some law schools and medical schools require you to include information about your parents, even if you’re considered an independent student from a financial aid point of view. Subsidized loans Another important difference for graduate school students applying for the FAFSA is that they aren't going to be eligible for subsidized loans.  Subsidized loans are an attractive student loan product for many individuals because they don’t start building up interest charges until you’ve graduated. That can save you a decent amount of money in the long run. Unfortunately, these products don’t apply to postgrads. The loans you’ll take out as a grad student will generally be unsubsidized. This means your federal loan will begin building up interest charges immediately—whether you’re a full-time student or not. Why is this important? Above all else, it’s important because the interest your loan accumulates will cause the balance of your loan to be a few thousand dollars more by the time you’ve graduated (even if you’re only in a two-year program).  Federal loan borrowing limits As a postgraduate student, you’re going to benefit from a lack of borrowing limits where federal student loans are concerned. Federal student loans for undergraduate students have both annual borrowing limits as well as aggregate borrowing limits. Graduate unsubsidized loans have borrowing caps, too. But Federal Student Aid’s Grad PLUS Loans don’t have any borrower maximum. You’re allowed to borrow any amount up to the total cost of attendance (as certified by your school). Can graduate students get Pell Grants? The short answer is no: graduate students aren't eligible for Pell Grants. A Pell Grant is a form of federal student gift aid provided to undergraduates who are able to demonstrate a significant level of financial need. Postgraduates aren’t normally eligible to receive a Pell Grant. But, as always, there’s an exception to the rule. If you’re working toward your post-baccalaureate teacher certification, you may be able to qualify for a federal Pell Grant. That being said, it’s worth noting that grad school students tend to qualify for a number of other federal grants. These include the Teacher Education Assistance for College and Higher Education (TEACH) Grant, the Fulbright Grant, and the Iraq and Afghanistan Service Grant. You may also qualify for postgraduate-specific grants on offer from your state government or available internally at your chosen grad school. Likewise, grad school students will normally be eligible to apply for the federal work-study program. Work-study is a funding program that offers students part-time work in exchange for funds that can be applied toward academic expenses. How to complete the FAFSA for graduate school Completing the FAFSA for grad school is pretty similar to the FAFSA for undergraduate students. Just like undergraduate students, postgraduate students will need to include the following information in their FAFSA: Your Federal Student Aid (FSA) ID Your Social Security number (SSN) or Alien Registration Number (or “A-number”) Your account balances on any checking or savings accounts Information about any investment accounts you may have Your federal income tax returns Any records relating to your untaxed income Grad school students are encouraged to submit their FAFSA as soon as possible. Applications open on October 1 every year. But you should also bear in mind that your chosen grad school may require you to complete additional forms unique to that individual school. Generally speaking, most schools will require your FAFSA form to be in by early February, even though the federal deadline isn’t until June of the year you actually attend school—but every university has its own deadline. Be sure to check with your school so that you can get your application in on time. After submitting your FAFSA, you can normally expect to receive a Student Aid Report (SAR) within a few weeks.  Your SAR is the document that lists out all the answers and information you included on your FAFSA form. It also provides some basic information about financial aid eligibility. That means you’ve got to review it carefully and let your school know immediately if anything is wrong. Your graduate school’s finance office will then send you a financial aid offer detailing what’s available to you. From there, you’ll be able to accept your aid and get the ball rolling by working directly with your school’s finance team. If you’re offered and accept a federal student loan as part of your graduate funding, you’ll need to complete a Master Promissory Note (MPN). An MPN is a legal document in which you promise to pay back your loans with any interest accrued. You’ll need to sign that form in order to get your funds. Your MPN also details all the terms of your loan. This includes the interest rate, as well as the date or condition in which you’ll have to start repaying your loan.  You can expect to get a separate MPN for each kind of student loan you take out. That means students with both a Stafford Loan and a PLUS loan will get 2 different MPNs. Conclusion As a grad school student, the FAFSA is absolutely critical. It covers financial aid for graduate school just like it covers aid for undergraduates. But while you may have completed the FAFSA a fair few times already to get undergraduate funding, there are a few key differences you should be aware of when using the FAFSA to cover graduate school funding. That’s why it’s essential you familiarize yourself with all of the basic rules on eligibility, deadlines, and completion. Want to learn more about graduate student funding? Mos is a banking solution for students that can also help you apply for hundreds of scholarships and grants and negotiate for more financial aid. Check out Mos.com to learn more. 


Need funding for grad school? Check out this Mos guide to find out how you can use the FAFSA to get aid.


Does FAFSA cover graduate school?

Everybody knows that college isn’t cheap. But what you might not know is that there are lots of tried and tested ways you can save for college to soften the financial blow of getting your degree. No 2 students are 100% alike, so the college savings strategy that works for you might not necessarily be right for your best friend.  But to help you get an idea of some of the savings options available to you, we’ll walk you through 5 of the top ways you can start saving for college now—trust us, you’ll be thanking yourself later. This guide explains what expenses you should save for as a student and the 5 best ways to save for college. What should I save for as a student? Before we get into the best way to save for college, you must understand exactly what you’ve got to be saving for as a student.  A lot of families take a look at a school’s tuition fees and assume this is the figure they need to save for. Unfortunately, the cost of attending college is a whole lot more than just tuition fees alone.  To give you an idea, let’s walk through the key expenses you’ll need to save for as a student. College tuition fees Tuition is the single greatest expense you’re going to need to save for when preparing for college—and the cost can vary pretty dramatically depending on where you decide to attend. For example, the average cost of tuition at any 4-year college currently comes in at $28,775. At a public college, the average in-state tuition fees sit at $9,349 per year. For out-of-state students, the average cost for a 4-year public institution is $27,023. But a private college can be a lot more expensive in terms of tuition fees. 4-year private schools cost an average of $35,807 per year. Fortunately, large chunks of this particular expense can be covered by sources of federal student aid—but we’ll talk more about ways to pay for college in a minute. First, let’s keep working through the expenses you’ve got to save for. Books and supplies College textbooks are notoriously expensive. At the average 4-year college, students can expect to pay an average of $1,291 per year on books and supplies. For reference, “supplies” covers stuff like lab materials or art materials if you’re taking those sorts of courses. Again, it’s important to note this is just a ballpark average. Different schools and majors are going to have different textbook expenses—and various programs within each school will have their own unique costs for course materials. Room and board Accommodation is generally going to be your second-greatest expense after tuition fees. The deciding factor in terms of your total cost of room and board will be whether you decide to live on-campus or off-campus. If you’re attending a 4-year institution, you can expect the cost of room and board to fall anywhere between $9,395 and $12,540 per year. If you’re living on-campus, university accommodation is generally a little bit more expensive. Room and board for on-campus students costs, on average, $11,303 per year. Meanwhile, off-campus students pay slightly less, at an average of $10,631 per year. Additional expenses Tuition, supplies, food, and accommodation are obviously going to be your essential expenses. But those are just the basics and don’t account for every single expense you’re going to have to pay while you’re at school. On average, additional expenses at a 4-year college run from $2,733 to $6,022 per year. But what exactly are “additional expenses”? The short answer is that it’s the fun stuff—things like travel, involvement in clubs and teams, nights out, entertainment, and everything in between. What are the best ways to save money for college? We’ve covered the various expenses you’ll need to save for to go to college. Actually saving up enough money to cover those expenses is a different matter entirely. Fortunately, there are several tried-and-tested ways to get your finances under control and start saving enough to cover all your college expenses. Let’s explore 5 of the most popular ways to save for college and how you can get started saving now. 1. Set up a student bank account The first step towards saving for college is to get a firm grasp of your finances—and the best way to get a firm grasp on your finances is to set up a dynamic student bank account. A student bank account is a financial product designed specifically to fulfill the needs of college students. By setting up a student bank account, you’ll get oversight over all your finances and make sure you’re saving for all those extra expenses. There are loads of banks out there promoting student bank accounts with silly gimmicks and sign-up gifts. But if you’re looking for a bank account that has useful features that will help you secure college funding and be proactive about your finances, you’ve got to check out Mos. Unlike a lot of bank accounts, Mos doesn’t have a minimum balance requirement—which means you can get started without a nest egg. Mos is also free to join, and it offers a student debit card (that gives you 1% cashback on your favorite category of expenses), a full-featured mobile app, and access to more than 50,000 fee-free ATMs.  Above all else, Mos is great for students because it has no hidden fees. But it’s important to bear in mind that Mos is more than just a bank account. No other bank account can offer you access to the largest scholarship pool in the country.  With a Mos account, you can skip the lengthy scholarship search process. Instead, you can take a couple of short quizzes and get instantly matched with scholarships you qualify for—all using a slick and intuitive app. Finally, with Mos, you’re never on your own. Mos account holders get access to special financial advisors who can help you figure out how to save for college. You’ll get one-on-one support to complete your applications, score discounts, and avoid making expensive mistakes. 2. Start a 529 college savings plan You’ll need the help of a parent or guardian for this one. But if your family can set up a 529 college savings plan a few years before graduating high school, this can be a tax-beneficial way to save and pay for college. A 529 college savings plan is an education investment account that lets you invest cash or assets into a fund that can be used to pay for future college tuition and related expenses. 529 plans are managed by each individual state government. That means the exact rules and account types are going to vary from state to state. Generally speaking, the reason that a lot of families choose to set up a 529 plan is that it offers a couple of attractive tax benefits that can help you pay for college education later on. With 529 prepaid plans, all of the money you invest is allowed to grow free from federal income tax and state income tax. When it comes time to withdraw, you won’t need to pay taxes on the money you take out of a 529 either—but only as long as those withdrawals are for a “qualified education expense.” If you withdraw money for anything other than qualified educational expenses, you’ll need to pay a withdrawal penalty (10% + income taxes). 3. Get scholarships Scholarships are one of the best ways to save for college. If you’re unfamiliar with scholarships, they’re just financial gifts awarded for educational purposes that you don’t have to pay back. Translation: a scholarship is free money to help students pay for college—and if you can bank a few of them before you graduate high school, you’re going to be well on your way towards paying for school. Fortunately for students in need of some financial support, there are a lot of scholarships available. Right now, 1,700,000+ private scholarships are being awarded by schools, employers, private companies, charities, nonprofits, communities, social organizations, religious groups, and even individuals. Bearing in mind how many scholarships are out there, it’s hardly surprising that 58% of American families relied on at least one scholarship in 2020 to help pay for school. Unfortunately, sifting through 1000s of scholarships to find the ones you can apply for can be time-consuming and incredibly mind-numbing. That’s where Mos comes to the rescue. When you set up an account with Mos, we automatically match you with 100s of scholarships that are perfect for you—and our expert advisors are on-hand to help guide you through the application process. 4. Start a Coverdell ESA A Coverdell education savings (ESA) account is an alternative to the 529 plan. The Coverdell ESA is almost the same as a 529 plan in terms of being used to cover education expenses, but it’s a lot more lenient than 529 providers around what counts as a “qualified expense.” In addition to your tuition fees and administrative fees, Coverdell ESAs are also able to cover other expenses like your tutors, any uniforms you might need, special needs services, and much more. That being said, there are a couple of drawbacks to the Coverdell ESA you should consider. It’s got much lower limits on contributions at just $2,000 a year—and if you’re going to Harvard from out-of-state, that’s not going to put a huge dent in your tuition. There’s also a rule which dictates you have to withdraw all funds by the time the student beneficiary hits age 30. But apart from that, the Coverdell ESA is a tax-beneficial way to save for college you might want to explore. 5. Apply for grants Like scholarships, grants are an amazing way to save for college because they count as “gift aid.” Gift aid is financial aid that you don’t need to repay. That means grants are literally free money—which makes them preferable to taking out massive federal student loans that you’ll need to repay with interest. There are plenty of federal, state, and school-specific grants available. The most common federal grant by far is the Federal Pell Grant. Pell grants are designed for undergraduate students who can demonstrate exceptional financial need. But just because you’re unable to demonstrate financial need and qualify for a Pell Grant doesn’t mean you’re unable to qualify for any grant. Contrary to common belief, you don’t need to live in a low-income family to receive a grant. You just need to show you have a financial need. By “financial need,” the US Department of Education is specifically looking to see if your Expected Family Contribution (EFC) is lower than the cost of attendance (COA) at your school. Your expected family contribution is the number that you get after submitting your Free Application for Federal Student Aid (FAFSA) and is how much the government thinks your family can cover for your education. Even if you’ve got a high EFC, you may still be able to demonstrate a financial need if you’re applying to a really expensive college. That’s why it’s worth completing your FAFSA as soon as possible, no matter what your financial circumstances may be. By getting your EFC early, you’ll have more time to complete extra applications for any state grants or school-specific grants you might be able to get from your school. Conclusion College is expensive—but you shouldn’t let that prevent you from going to school or enjoying a quality student life while you’re studying. That’s why it’s important you start saving for college as soon as you can. If you want to be able to save money for college, you’ve got to have a ballpark figure in mind tounderstand your overall expenses. That means doing some research on the type of school you’d like to go to, what sort of degree program you’re going to pursue and whether you plan to live on-campus or off-campus. Once you’ve got a ballpark figure for your college savings goal, it’s worth using some of these tried-and-tested methods to start saving for college. So, are you ready to set up your student bank account, gain control of your finances and connect with grants and scholarships? Join Mos now. 


Looking for ways to pay for college? Check out this guide from Mos.com on the best way to save for college.

The 5 best ways to save for college

Student loans can turn out to be a big debt liability for a lot of graduates, and making payments can be a real struggle for some people. Unfortunately, you can’t afford to miss any student loan payments, or your credit score will get absolutely hammered. That being said, there’s one way you might be able to prevent further damage to your credit score if you’ve missed student loan payments—and that’s to submit a goodwill letter. It’s important to bear in mind that a goodwill letter isn’t a guarantee you’ll get what you want. But if your request is approved, your lender could end up asking credit bureaus to take late payments off your credit history. This guide explains what a goodwill letter for student loans is, whether they work, and how to write a goodwill letter for student loans. What is a goodwill letter for student loans? Simply put, a goodwill letter is a written request you can send to a lender asking them to remove an overdue loan payment from your credit report. When you fail to make a payment on a loan, your lender will typically report that overdue payment to the 3 big credit bureaus: Equifax, Experian, and TransUnion.  This matters because other lenders and service providers pull credit reports from these bureaus to decide whether to extend you credit or a particular service. We’re talking about anything from buying a car or getting a mortgage to utilities service plans—and if those companies don’t like what they see on your credit report, you may get denied service (or get a worse deal). That’s why you want to do your best to avoid any black marks on your credit report. But if you miss a student loan payment, those marks will usually start to appear. Writing a goodwill letter is essentially a roll of the dice to try and minimize the damage. You can submit a goodwill letter to your lender for any number of loan products—including a student loan, mortgage, car loan, or anything in between. When you send your letter, it’s important to bear in mind that there’s no guarantee of success. If your lender acknowledges your letter and agrees to remove the overdue payment on your credit report, it’s essentially an act of their own goodwill. They aren’t legally obligated to do anything. But if your lender decides to strike a late payment off your credit report, your credit should rebound almost instantly. On paper, it’ll look like your payment was never missed at all. Do goodwill letters work for student loans? Unfortunately, there’s no guarantee that a student loan goodwill letter will actually work.  When you send a goodwill letter for a student loan, the decision on whether to accept your request will be completely up to your lender. It’s possible they’ll be totally unsympathetic to the circumstances which caused your late payment. That being said, you could end up finding a sympathetic reader at the other end of your letter. This is much more likely if your late student loan payment was caused by unexpected circumstances. For example, maybe you lost your job, got sick, or had a bereavement. If you’re able to honestly and politely explain what happened and why, you may be surprised to find your lender will be receptive to making a goodwill adjustment. There aren’t really any concrete numbers that illustrate the success rate of goodwill letters—because they’re all decided upon behind closed doors on a case-by-case basis. There might be some student loan providers who are more receptive to goodwill letters than other providers. But at the end of the day, those who don’t ask don’t get. Translation: there’s no harm in trying, right? To maximize your chances of success, it’s important that you own up to any mistakes you’ve made which led to the late payment. Where an extraneous circumstance caused the late payment, provide assurances to your lender that missing a payment is a rare occurrence for you—and demonstrate a payment record to back that claim. It’s also important that you get in touch with your student loan provider as soon as you see your credit score has been affected or you’ve received a late payment charge on your loan account. In many cases, your lender is likely to be more understanding if you reach out to them quickly to try and address the problem. You should also bear in mind that borrowers aren’t the only ones who make mistakes. It’s also possible that a late payment was reported to a credit bureau as an error on the part of your loan provider. If this happens, you can dispute that report directly with the 3 big credit agencies over the phone or via email. How to write a goodwill letter for student loans Let’s say you’ve noticed a negative mark on your credit report. The first thing you need to do is get in touch with your lender as soon as possible to find out what’s happened.  If you think the black mark is an error, let them know. But if they’re able to explain to you that the report was genuine, it’ll then fall upon you to make the next move.  On the one hand, you could just choose to take the hit and try to rebuild your credit. On the other hand, you might go for one last roll of the dice by submitting a goodwill letter to your lender. As we’ve already mentioned, the success of your student loans goodwill letter is pretty difficult to predict. But a number of factors are going to dictate whether or not your request gets approved. These include who’s reading your letter, your payment history, the rules set by your lender, and the content you include in your letter. To help you get started, we’ll run you through all the basic information your letter needs. What information do you include in a goodwill letter for student loans? The first thing you have got to include in your goodwill letter is personal information. This will ensure that your lender can understand who you are and quickly access your account to understand your particular situation. To do that, they’ll need your full name, account number, and other identifying information that might be relevant to that particular lender. For example, your student loan provider might also need your phone number, address, or account type. Speaking of addresses, it should go without saying that you’ll need to include the address where your goodwill letter must be sent. If you’ve phoned your lender to ask about your credit ping, you should ask them for their representative’s name and address so you know where to send your letter and to whom you should address it. When it comes to goodwill letters, personalization can go a long way. Next, you need to include details about the late payment. Outline the date on which the late payment occurred. If possible, include any documentation that proves the late payment went through when you say that it went through. You must then list the reason (or reasons) for that late payment. The more specific, the better. For example, did you miss a student loan payment because you got laid off at work? Did you miss a payment because you got sick and ended up in the hospital? Did you have a family emergency and need to travel overseas? No matter what your situation was, your goodwill letter is where you need to spell out that situation explicitly. Your goodwill letter then needs to include a clear and concise request for removal. A goodwill letter is no place to be coy or nonspecific. Tell your lender exactly what you’re asking them to do. It may help your chances to outline to your lender why you want to keep your credit score high and how the ding impacted your credit score. For example, maybe you want to apply for a mortgage, and you’re relying on a good credit score to keep your interest rate as low as possible. Finally, your goodwill letter has to show proof that you’ve made payments. Put simply; you need to show you’re good for the favor. By reminding your lender that you have a history of making on-time payments, you’re demonstrating that you have the ability to pay back your loans. By showing how responsible you normally are with your credit, you’re going to maximize your chances of getting your request approved. (Image Source) What supporting documentation should you include with your goodwill letter? Depending on who your lender is, you might need to give them some form of proof of your claim before your request can be accepted. For example, let’s say you ended up in the hospital and missed a payment because of it. In addition to explaining all of this in your goodwill letter, it’s normally worth including some documentary proof alongside your letter. This could be a hospital admission letter, an itemized bill, or even a note from your health insurance provider. Likewise, if you were in a car wreck, you might consider including a copy of a police report or documentation from your car insurer. This isn’t always required by student loan providers. But after considering your letter, lenders will often get in touch to ask for proof of your claim before approving the removal of your missed or late payment. By including these documents from the get-go, you’ll cut out a step of the process—and hopefully get a positive result quicker. How long does it take to get a response to a goodwill letter? Remember how we’ve already said that you should be sure to send your goodwill letter as soon as you realize there’s a problem? Well, the reason you have to get your letter in quickly is that there’s no telling how long it’ll take to get a result. In some cases, it can take a lender weeks to submit a response to your request. If it’s been a while and you haven’t heard back about your goodwill letter yet, it never hurts to follow up.  Give your contact a call and politely remind them you’ve submitted a goodwill letter and are awaiting a response. This should allow you to either get an update or give them a helpful reminder that it’s sitting on somebody’s desk. It’s also important to remember that there’s a chance your lender won’t approve your request. They should still get in touch to let you know your request has been rejected. If your request is approved, it may take a while for your lender to action the goodwill request. But once the request has been actioned, your credit score blip should disappear almost instantly. If your request is rejected, you’ll need to move forward and try to find a way to rebuild your credit. Your first step will be to ensure you’re making on-time payments moving forward. It also helps if you avoid maxing out your credit cards. Whether your goodwill request has been approved or not, it’s critical you get in touch with your lender if you’re struggling to make loan payments. Your lender might be able to offer a solution, such as adjusting your monthly payments. You may also be eligible for loan forbearance or deferment. By striking an agreement, you may be able to prevent any more damage to your personal credit. Conclusion Your creditworthiness is pretty important—it dictates the rates you’re able to get for a mortgage, a car loan, a loan for new tech, or anything in between. If your credit’s no good, you might not even qualify in the first place. That’s why it’s critical you do everything you can to keep your credit report looking squeaky clean. But making a late payment on your student loan is going to ruin that squeaky clean record. Sending your lender a goodwill letter isn’t a sure thing. But if it’s successful, you can get any negative blips removed from your report and move forward. Just make sure to include all the essentials in your letter, including any supporting documentation. Remember to be direct but polite. Do you want to learn more about financial aid and keeping on top of your finances? Check out Mos.com now. 

Made a late student loan payment? Check out this guide from Mos to find out how you can send a goodwill letter.

Goodwill letter for student loans: what it is and a template to get started

We all know that college isn’t cheap.  The average cost of public in-state college tuition in the US is more than $10,000 per year, rising to over $38,000 for a private out-of-state college. Plus, there are living expenses, books, and supplies to consider. Because most families don’t have that much cash sitting around, a majority of them are reliant on student loans to pay for college. When you accept a student loan from a lender like the US Government, you’re effectively entering into a legal contract to repay that money—and the contract you’re signing is called a Master Promissory Note (MPN). But before you complete, sign, and submit your MPN, you must know what you’re getting into. This guide explains what a Master Promissory Note is, what an MPN includes, how to complete an MPN, how long it takes for an MPN to process, and more. What is a Master Promissory Note? A Master Promissory Note (MPN) is a legal document in which a borrower promises to pay back a loan with any accrued interest. An MPN also explains all of the terms and conditions of the loan in question. MPNs are incredibly relevant where Federal Student Aid is concerned. If you take out a Direct Subsidized Loan, Direct Unsubsidized Loan, or a DirectPLUS loan, you’ll receive and be expected to sign a Master Promissory Note before your loan money can be paid. Where the US Department of Education is concerned, there are 2 types of MPNs you might encounter. This depends on the type of loan you take out from the federal government. The first MPN type applies to both Subsidized and Unsubsidized Federal Direct Stafford Loans. This is for undergraduate and graduate students—although it’s important to note that graduate students and professional degree students aren’t eligible to receive subsidized Stafford Loans. If you’re offered a Federal PLUS Loan, you’ll need to complete a slightly different MPN. PLUS Loans are designed for the parents of undergraduate students (or the students themselves) working toward a graduate school degree or another type of professional degree. The key difference between these 2 MPNs is primarily the terms and conditions element because the terms of these loan types vary in nature. Why is an MPN so important? Above all else, it’s important because the MPN is a legally-binding document. Unlike borrowing money from a friend, borrowing money from the US government requires a formal process. By signing an MPN, you’re making a legal agreement to repay that loan in full—including interest. What details are in a Master Promissory Note? The two most important details that are included in your MPN are the interest rate on your student loan and how that interest is charged.  These two details are important because they directly affect the total cost of your student loan. When your loan has a lower interest rate, your monthly repayments are going to be lower—and you’ll be repaying less over the total life of your loan. Your MPN also has details about your annual borrowing limits. You must understand your borrowing limits. That’s because if your loans aren’t going to cover the full cost of your education, you’re going to have to find more funding to make up the difference. This could include grants, scholarships, income from a part-time job, or anything in between. But your Master Promissory Note doesn’t just spell out the loan amount you’ve borrowed, your loan limits, and the interest that will accrue. An MPN for a federal student loan also includes details about what you can use the funds from your student loan for. For example, your MPN will state whether your loan can be applied to pay for tuition fees, room and board, or additional administrative fees. Likewise, your MPN also includes details about future repayment options after you graduate. As a result of all these details, your MPN should be your first port of call if you have any questions about your federal student loan or how to repay it. If you have any additional questions about the information that’s in your Master Promissory Note, you’ll need to ask the finance office at your school. They’ll be able to fill in any blanks and explain the details of your MPN to you. How do you complete a Master Promissory Note? If you receive an offer for a Direct Subsidized Loan or a Direct Unsubsidized Loan as an undergraduate student, you’re going to have to complete an MPN. Master Promissory Notes are usually quite simple, and as the borrower, you can complete your part of the MPN in under 30 minutes! But it’s important to note that you’ll need to complete your MPN in a single online session. If you fail to complete your MPN in one session, you’ll have to start again. The process is completed entirely online. Your Federal Student Aid (FSA) ID functions as your electronic signature, so once you’ve read the information and completed all the necessary fields, you can sign your MPN with your FSA ID and submit it. To complete the necessary fields, you’ll need the following information handy: A verified username and password (FSA ID) The name of your school Your mailing address Your contact information Your reference information If you want to make sure there are no delays in getting your funds disbursed, you must complete your MPN correctly and submit it as quickly as you can. Do you need to include references on your Master Promissory Note? We’ve already briefly mentioned that you need to have information about references on-hand to complete your MPN. But what are your MPN references? When you submit a Master Promissory Note, you’re going to be asked to include the names and contact information of two people. These people will act as your references, and they can be just about anyone. One of the only rules about the eligibility of your references is that they’ve known you for at least three years. Your references don’t have a huge amount of responsibility. But if you ever move without telling your lender (in this case, the US Department of Education), your references will be contacted to help locate you. This is part of the “skip-tracing” process, which is just a fancy term the government uses to describe the process of tracking you down. In the context of a student loan MPN, that’s about all your references are ever going to have to do. That’s why it’s important when selecting your references to reassure them that they aren’t cosigning your loan. They’re not even going to be a character witness—which is a type of reference some lenders require for other loan products to check out your trustworthiness. Again, you can pick whoever you want to be your two MPN references.  But generally speaking, the first person that most people list as a reference on their MPN is one of their parents or a guardian. The second reference is normally a person you have a close relationship with and you plan on keeping in touch within the years to come. It’s not always possible to include both of your parents as MPN references because one of the eligibility rules is that your two references aren’t allowed to live at the same address. How long does it take for an MPN to process? After you submit your MPN to the US Department of Education, the government will then get in touch with your school’s financial aid office to let them know that it’s been completed. This process normally takes between 3 and 5 working days. After your school’s finance office has received your MPN, you’ll have to complete entrance counseling before the school agrees to disperse your funds. The counseling process is mandatory if you’re a first-time borrower for a federal student loan—although the requirement also falls upon grad school students and professional students taking out a Direct PLUS Loan for the first time. That being said, the requirement for entrance counseling doesn’t apply to parents who’re taking out a Direct PLUS Loan to help their children pay for college.  So, what is entrance counseling? Entrance counseling is the process in which you sit down with a member of your school’s financial aid office and get to ask any questions about the loan process. They’ll explain how the loan works, as well as the responsibilities you’re assuming by accepting that loan. An entrance counseling session normally takes about 30 minutes to complete. Like completing your MPN, entrance counseling must be completed in a single session. After your session has been completed, your college will be able to disburse your loan funds. This is typically done in one installment, although there are exceptions. The way your loan is provided at your school should be covered as part of your counseling session. When you’ve received your loan, you’ll have to notify your school’s financial aid office if anything about your enrollment at the school or your personal details change. This could mean you’ve moved apartments, changed your name, stopped attending school, or transferred to another college. Does a Master Promissory Note need to be notarized? If you’re taking out a loan from the US Department of Education, then your MPN doesn’t need to be notarized. Some lenders will require an MPN to get notarized depending on the product type, and who it is that’s offering the loan. By contrast, an MPN is considered legally enforceable after it’s been signed by the individuals or parties involved. That means by signing your MPN, you’re entering into a legally binding contract to repay your loan and accrued interest as specified within your loan terms and conditions.  How do I get a copy of my Master Promissory Note?  If you ever need to access your MPN, it’s readily available online. To get a copy of your MPN, all you’ve got to do is log into “studentaid.gov.” To log into the site, enter your FSA ID. Once you’re in, you can then choose the menu bar entitled “My Loan Documents.” From there, simply click on “Completed Master Promissory Notes.”  You should then be able to access and view all of your MPNs and download a digital copy if required. How often do you have to complete a Master Promissory Note? In most cases, you’ve only got to submit an MPN once after it’s been accepted. You’re then able to borrow additional Federal Direct Loans if required on a single MPN for up to 10 years. That being said, there are a couple of exceptions to the rule. Some schools do require you to sign a new MPN every academic year. This won’t be applicable for students at most colleges, though. You may also be asked to sign an additional MPN if you completed one more than a year ago but no loan was disbursed. Finally, if the Office for Federal Student Aid determines that you’ve got an adverse credit history and you obtain an endorser to borrow a Direct PLUS Loan, you might need to sign and submit a separate MPN for each loan you take out. Conclusion At the end of the day, your MPN is pretty important. Your Master Promissory Note clearly outlines all the details on the amount of money that you owe, how your loan interest is calculated and when that interest is charged. It also includes information about any available repayment plans, product late fees, collection charges, deferment options, and cancellation options. Bearing in mind all the important information that’s included in your MPN, you must understand the process in which an MPN is approved and passed on to your college so that you know when to expect your student aid to be disbursed. Want to learn more about the student loan process? Join Mos now to find out about financial aid and to get matched with loads of scholarships and other financial aid opportunities to help you make the most of your time in college. 

Check out this guide from Mos to find out everything you need to know about an MPN.

What is a Master Promissory Note?

If you’re trying to pay for college, chances are you’ll need some federal student aid. More than 2/3 of all college students apply for financial support from the government and their colleges using the US Department of Education’s universal application form. The Free Application for Federal Student Aid (FAFSA) streamlines the financial application process—enabling the federal government, your state government, and your school to access your information in one place and quickly and efficiently decide how much financial aid you need to pay for school.  But one key factor that’s going to determine how much financial aid you’re able to access is whether you’re a dependent or independent student. This guide explains the difference between a dependent and independent student, the information dependent and independent students must include in their FAFSA forms, and how to declare yourself as an independent student. Dependent vs. independent student: what’s the difference? Before we break down how you complete a FAFSA as an independent student, it’s important we talk about the distinction between dependent students and independent students. In terms of federal student aid, your dependency status essentially indicates whether you’re in some way financially dependent upon your parents or guardians. This status gets determined based on the information you include in your Free Application for Federal Student Aid (FAFSA) form—and then dictates your eligibility for certain financial aid opportunities. An independent student is anyone who’s considered financially independent from their parent or guardian. But the eligibility criteria to be considered an independent student for the purposes of federal student aid goes a little bit further. The US Department of Education defines anyone as an independent student who is: At least 24 years old Married A graduate student A professional student A veteran A serving member of the armed forces An orphan A ward of the court An emancipated minor An individual with legal dependents other than their spouse An individual who’s homeless or at risk of becoming homeless As a financial aid applicant, you’ve got to fulfill at least one of these specific requirements in order to get classified as an independent student rather than a dependent student—and it’s important to note that not living with your parents or not being claimed by them on tax forms doesn’t make you an independent student for the purposes of applying for federal student aid. Generally speaking, most students who complete the FAFSA aren’t FAFSA independent students. This is because they still receive some form of financial support from their parents and are under 24—but that doesn’t mean there aren’t quite a lot of independent FAFSA students around. During the 2019–20 academic cycle, more than 9 million independent students applied for federal student aid using the FAFSA. Because your dependency status is dictated by the information you include in your FAFSA, you have to carefully and honestly consider every single question on the application form. These questions are basically the same every year, although the wording changes a little bit on an annual basis. For example, the 2022–23 FAFSA asks students whether they were born before January 1, 1999. Meanwhile, the 2023–24 FAFSA form will instead ask students whether they were born before January 1, 2000.  Do you have to provide your parents’ information on the FAFSA form? You may be required to include information about your parents on your FAFSA form, but it’ll depend on your dependency status. All of the college-funding programs offered by the US Department of Education are based on the idea that it’s primarily the responsibility of you and your family to pay for your college education. This is particularly important to bear in mind if you’re a dependent student. That’s because federal student aid operates on the assumption that a dependent has the financial support of their parents or guardians. As a result, you’ll need to include information about your parents or guardians if you’re a dependent student.  The information about your parents will then be assessed alongside your information so that the federal government, state government, and your school can get a complete picture of your family’s ability to pay for school. It’s important to note that your parents won’t necessarily need to pay anything for your college education just because you’re a dependent student. You’ve just got to make sure you include all of the relevant details about your parents and their financials so that the Department of Education can assess everyone in the same way. In terms of the parent details you have to include as a dependent student, you should expect to have to report all the basics of your family’s income and the assets they own. By contrast, independent students don't need to include their parents’ information on the FAFSA form. Instead, independent students only need to include information about their own income and assets. The only exception to this rule is if you’re married. Independent married students need to include information about their spouse’s income and assets on the FAFSA too. So, why does your parents’ information matter so much? In most situations, your parents will have a higher income and more financial resources than you will—especially when you’re a teenager or in your 20s. Parents and guardians also generally have higher levels of financial resources than independent students who are trying to pay for their education without parental support. As a result, a dependent student who has parents with resources will normally receive less aid because those parental resources are factored into the student’s ability to pay for school. Some independent students may even have child dependents, which further slashes their ability to pay for school.  Because of this, the expected family contribution (EFC) of an independent student, excluding parent information, will generally be lower than the EFC of a dependent student. Despite all of this, there’s an exception to this rule when it comes to including your parents’ details. If you’re enrolling in a law school or getting a degree in an allied health profession, you may need to include your parents’ information on your FAFSA form—even if you’re classed as an independent student.  When it comes to federal funding, parent information is often used to help determine your financial eligibility for various types of sector-specific funding like a Health Professions Student Loan available from the US Department of Health and Human Services. Do independent students get more financial aid? Simply put: yes. Independent students will often get more financial aid than dependent students. But this isn’t a golden rule. In some cases, an independent student may not be offered any more than a dependent student working toward the same degree. A student who qualifies as independent from a FAFSA point of view doesn’t need to file their parents’ financial information as part of their application. Independent students only file information about their own income and assets—and this often works in their favor.  As we’ve already touched upon, that’s because an independent student normally has a greater financial need. That also normally means they have better eligibility for various financial aid opportunities. But a student’s dependency status doesn’t necessarily lead to more money.  Some financial aid programs don’t give your dependency status weighted value—meaning that you’d be offered the same amount whether you were financially independent or not.  But the key program that does consider dependency status is the federal student loan program. With federal student loans, your dependency status has a direct impact on the maximum amount of federal student loans you’ll be eligible to receive. For example, let’s take a quick look at Direct PLUS Loans. Under the Direct PLUS Loan program, a dependent student can currently borrow up to $5,500 to help pay for tuition during their first year at college. On top of that, their parents can also borrow more through a Parent PLUS Loan. But independent students aren’t in a position to get additional help paying for school via a Parent PLUS Loan because their parents aren’t eligible. Fortunately, the Department of Education understands that—which is exactly why the borrowing cap on Direct PLUS loans is higher for independent students. At present, a financially independent freshman entering college or a university can borrow up to $9,500 per year. That’s nearly double the amount of a dependent student. That being said, it’s also worth noting this higher cap can often be accessed by dependent students, too.  If you’re a dependent student and your parents or guardians aren’t eligible to apply for a Parent PLUS Loan, the government will often allow you to borrow up to the independent student cap even though you’re classed as a dependent student. Why wouldn’t a parent or guardian qualify for a Parent PLUS Loan?  If your parents have an adverse credit history, they may not qualify for a federal student loan. Citizenship status can also come into play when applying for a Parent PLUS Loan. But the biggest eligibility requirement is that you’re the child’s biological or adopted parent.  Grandparents and legal guardians aren’t generally eligible to receive Parent PLUS Loans—even if they’re the primary caregiver responsible for raising that student. Bearing all of that in mind, it’s likely independent students can generally expect to receive a higher financial aid package than dependent students.  But because parents are allowed to borrow any amount up to the full cost of attendance (after subtracting other forms of financial aid), an independent student without parental support might still end up with less financial aid regardless of the higher federal student loan limit. As a result, independent students are typically advised to focus more on financial aid awards that are on offer from the school they’re attending. Work-related income is also going to be essential in paying for education-related expenses. How can you become an independent FAFSA student? If you’re reading all of this thinking that you’d be better off financially if you were classed as an independent student, it is possible to change your status despite not meeting the typical eligibility requirements of financial independence.  In certain situations, the US Department of Education has the power to grant you a dependency override regardless of your ability to meet independent student requirements from a FAFSA point of view. A dependency override is when your college changes your dependency status from dependent to independent. This isn’t a common avenue students go down. According to Finaid, only about 2% of undergraduate students gain an independent status through a dependency override—and that’s mostly because the circumstances in which a dependency override is permitted are pretty specific. These might include an abusive family environment, parental incarceration, or if parents are judged to lack the physical or mental capacity to raise a child. It’s important to note that the following reasons are not judged sufficient to enable a dependency status change: Your parents or guardians are refusing to contribute financially to your education. Your parents or guardians aren’t willing to provide the necessary information for your FAFSA form or as part of the verification process. Your parents don’t claim you as a dependent for income tax purposes. You can demonstrate total financial self-sufficiency. To apply for a dependency override, you’d need to request this in writing directly to the finance office at your school. The financial aid administrator at your college can help you request an override or learn more about the funding available to you despite any lack of parental support. Conclusion At the end of the day, it’s absolutely critical that you fully understand your FAFSA student status prior to sitting down and completing your FAFSA.  After all, if you want to make sure you get the correct amount of financial aid without any delays, you need to understand all of your responsibilities and eligibility requirements in terms of the pieces of information you must include on your FAFSA form. Theoretically, independent students are able to get more financial aid than dependent students. But it’s important to remember that a higher loan cap doesn’t mean independent students always get more financial aid than dependent students. That’s why it’s important that you understand all of the financial aid opportunities available to you—which is where Mos comes in. We can help you apply for hundreds of scholarships and grants and negotiate for more financial aid. Check out Mos.com to learn more. 

Check out this guide from Mos to find out what your FAFSA dependency status is and how it affects financial aid.

What's my FAFSA dependency and why does it matter?

We're not going to sugarcoat this. Getting private student loan forgiveness is extremely difficult. But if you're struggling to repay your loans and hoping to find some relief, we've got you covered. In this article, we'll explore a few popular alternatives to student loan forgiveness. Now, these solutions won't wipe out your debt with the wave of a hand—they’re not magic. But they can give you some much-needed support in your quest to conquer your private loans and defeat student debt for good. Federal student loans vs. private student loans First, let’s look at how federal and private student loans differ when it comes to loan forgiveness as, sadly, they don’t play by the same rules. As you may know, the US Department of Education administers federal student loans. And private student loans are issued by private financial institutions, including banks, credit unions, or agencies specializing in lending private student loans, such as Sallie Mae, Ascent, or SoFi. Because federal student loans are government-issued, they're eligible for tons of different repayment assistance and student loan forgiveness programs, like: Public Service Loan Forgiveness: a federal program that forgives federal student loans for borrowers who work full-time in public service for 10 years. Teacher Loan Forgiveness: a federal program that forgives up to $17,500 of federal student loans for teachers who work in low-income elementary and secondary schools for 5 years or more. Closed School Discharge: if your school closes while you're enrolled or soon after you graduate, the remaining balance on your federal loan may be forgiven.  On the other hand, private student loans don't offer the same protections and forgiveness programs because private lenders issue these loans. So, private loan forgiveness doesn't really exist—at least, not like it does for federal student loan debts.  Why is private student loan forgiveness almost impossible to get?  As of early 2022, US student loan debt tipped the scales at $1.747 trillion. Of that, 8.8% is private student loan debt, totaling $146 billion. But despite billions owed, why is it so hard to get private lenders to give borrowers a break and cancel student loan debt? The answer, quite simply, is because there's no incentive. Remember, private lenders are in the business of making money. So, forgiving loans would require these lenders to take a significant loss on their investment.  Alternatively, the government has something to gain by forgiving federal loans. Sure, they want their money back. But by offering repayment assistance and forgiveness programs, the government attracts qualified job-seekers toward public sector employment, helping solve critical labor shortages. State governments may also offer loan relief programs for certain professions, like doctors and nurses, incentivizing them to work in underserved communities within the state. Private lenders, however, don't care about your profession. They just want their money back at a very unforgiving interest rate. The bottom line is that by forgiving student loans, the government can help address public issues—like labor shortages—and keep their voters happy. But because private lenders are for-profit businesses, they have nothing to gain and everything to lose by offering loan forgiveness. Can private student loans be forgiven? What are the exceptions? Technically, private student loans can be forgiven.  But before you get your hopes up, you ought to know that these exceptions are extreme and, depending on your lender's policy, aren't 100% guaranteed. Death Your student loan debt may be forgiven if you die. But unlike a federal loan, private lenders have no legal obligation to "discharge due to death." Read your loan agreement carefully, or ask your loan agent about what happens to your loan when you die. If your lender doesn't discharge or cancel your loans when you die, your debt passes to your estate. Thankfully, your family isn't directly responsible for paying your debts when you die. If there isn't enough money in your estate to settle your debts, the debt goes unpaid. However, there are exceptions to this rule: If your loan has a co-signer, they may be on the hook for your balance. If you live in a community property state, your spouse may be responsible for your loans after you die. Remember, just because you die doesn't mean your family won't be liable for repaying your debt. Disability Your private student loans may also be forgiven if you develop a permanent disability.  However, unlike federal student loans, a total and permanent disability discharge isn’t automatic if you become disabled. A few larger private lenders, like Sallie Mae, waive your balance if you become disabled, but other lenders may not. Always err on the side of caution and check the terms of your loan before signing. Some lenders may assess disability on a case-by-case basis. So, if you develop a permanent disability that prevents you from working, have a doctor verify the extent of your condition and contact your lender. Be warned, even if your lender offers disability discharge, they may fight you at every step. So be prepared to cross swords. 6 Alternatives to private student loan forgiveness  Just because it's next to impossible to have student loans forgiven doesn't mean you're out of options if you need debt relief. Let's dive into 6 smart ways you can nip student loans in the bud without having to put yourself in the grave—literally! 1. Refinancing Refinancing your student loans is an entirely doable way to help manage student debt.  When you refinance a loan, your lender pays off your old loan and issues you a new one based on your negotiated terms. As long as you have good enough credit and a reliable income, getting your loans refinanced is an absolute breeze. When you refinance your loans, your goal is to get a better interest rate than what you currently pay. A better interest rate means, usually, a lower monthly payment and less money paid in interest over the lifetime of your loan.  If you can't get a lower interest rate and struggle with your monthly payment, consider lengthening the term of your refinanced loan. You'll pay more in interest over time, but you'll have a more manageable monthly payment. Loan refinancing isn't just an option for private student loans. If you also have federal loans and think you qualify for a better interest rate from a private lender, consider consolidating your federal and private loans. Not only could it save you a ton of money, but consolidating your loans into one payment makes juggling your finances a lot easier. 2. Bankruptcy It's not glamorous nor easy, but declaring bankruptcy may release you from your student loans. But filing for bankruptcy doesn't automatically wipe your student loans. Instead, you have to prove to the courts that your payments are causing you "undue hardship" by passing something called the Brunner test. The Brunner test looks at three conditions when determining if student loan payments are causing you undue hardship: Repaying student loans means you can't maintain a minimal standard of living. Your financial situation isn't likely to change during the bulk of your repayment period. You've made reasonable efforts to repay your student loans. If each condition is true—and you can prove it—a judge can grant you a discharge from your student loans after filing for bankruptcy. Bankruptcy isn’t a “get out of jail free card” for your student loan—it’s more of a last resort. But if student debt is robbing your means to achieve a minimum quality of life, seek help from a student loan lawyer and ask about the pros and cons of bankruptcy. 3. Forbearance Forbearance is just a fancy term for when your lender lets you stop paying your student loans temporarily.  Many private student loan lenders offer forbearance, usually up to 12 months, but terms and conditions vary lender-to-lender.  To qualify, most lenders ask that you prove you're experiencing unexpected financial struggles, such as: A job loss An expensive medical emergency Other reasonable financial challenges Although forbearance is only temporary, it's a great option if you're facing a temporary setback and need some wiggle room to get back on your feet. Plus, it prevents you from falling behind on your payments and defaulting on your loans. Keep in mind that while forbearance postpones your monthly payments, your student loan still collects interest. Despite this, forbearance is still a handy option if you’ve hit a financial snag and need short-term relief from your private student loan payments. 4. Deferment Like forbearance, a deferment is when your lender lets you temporarily suspend your loan payments.  Private lenders aren’t required to offer deferments, but some do under special circumstances, like if a borrower is: Experiencing financial or medical hardships. Returning to school or attending an internship. Deployed for active military duty. Unlike federal student loan deferment programs, private loans may still accrue interest. But don’t let that be a deal-breaker. If you’re having trouble paying your loans and need a little breathing room, it’s better to defer your loans than default on them. 5. Repayment programs Most states offer student loan repayment assistance programs (LRAPs). However, many of these programs are reserved for high-demand professionals like doctors, nurses, mental health professionals, legal aid lawyers, and teachers. For example: California State Loan Repayment Program: available to certain healthcare professionals, like doctors, nurses, pharmacists, dentists, social workers, and therapists. Applicants must meet eligibility requirements and work in federally designated Health Care Professional Shortage Areas. Award amounts start at $50,000 for a 2-year commitment and reach a maximum of $110,000 if participants extend their contracts for another 4 years.   New York State Teacher Loan Forgiveness Program: up to $20,000 (paid over 4 years) of loan repayment aid is available for qualified New York teachers who work in hard-to-staff districts or teach in-demand subjects. Florida Bar Foundation Loan Repayment Assistance Program: the Florida Bar Foundation will award $5,000 per year in student loan repayment assistance to qualified civil legal aid attorneys. Attorneys must be full-time or part-time (at least 50% FTE) employees with a legal aid organization that receives grants from the Florida Bar to be eligible for the program. These programs are just a snapshot of what’s available. And if you want the most up-to-date info on LRAPs in your state, contact your state's department of education, consult with your professional organization (if you belong to one), or ask your employer if they know about assistance programs—they may even offer their own! 6. Use Mos and avoid private student loans entirely Of course, one of the best alternatives to private student loan forgiveness is to avoid private loans entirely. And this is where Mos can help. Fun fact: Billions in federal aid go unclaimed every year. For example, in 2021, $3.75 billion in Pell Grants went unawarded. Over 70% of financial aid letters are missing aid. And let’s be honest, part of the reason this money didn’t go to the students who needed it is that applying for financial aid is a mind-boggling ordeal. But what if it wasn’t? With Mos, we help you navigate the financial aid process and make sure that you get all the money you deserve.  Not to toot our own horn here, but our financial advisors can help you maximize the amount of federal aid, grants, and scholarships you receive so you never have to take out a private student loan. Come hang out with us for a while and see what Mos is all about. Frequently asked questions Do private student loans go away after 7 years? No, your private student loans don’t magically disappear after 7 years. But, usually, they’re removed from your credit report 7½ years after you’ve defaulted. Can I change my private student loans to federal? No, the government won't take on your private loan debt. Unfortunately, that's not how student loans work. And while you can refinance your federal loans with a private lender, it doesn’t work the other way around. At what age do student loans get wiped? Simply put, they don’t. Unless you live long enough to see the fall of capitalism, your student loans are with you forever. Conclusion Getting out of private student loan debt is a mountain to climb, especially when loan forgiveness isn't an option. But there are plenty of other smart alternatives, like refinancing or deferment programs that can help take the sting out of repayment.  And if you’re heading to college and want to avoid private loans completely, let Mos help you manage the cost of your education.  No matter what route you choose, taking action is the first step toward clobbering or curbing private student debt. 


Learn about alternatives to private student loan forgiveness and how Mos can help you avoid private loans entirely. 


Private student loan forgiveness: a walkthrough and leading alternatives

Founded in 1800, Emerson College is a small, highly regarded liberal arts college. It is home to just over 3,800 undergraduates and 600 graduate students studying topics in communication and the arts. The school’s campus is located in Boston’s Theatre District. Emerson’s mission is to educate students to assume leadership positions in communication and the arts while promoting civic engagement, respect for diversity, and ethical practices. If you’re thinking about attending Emerson College but aren’t sure how you’ll pay for school, here’s what you need to know. A snapshot look at the Emerson  As a small liberal arts college, Emerson emphasizes preparing students for the world by giving them a broad education in the arts. The school’s vision is to “educate leading professionals in the arts and communication; to inspire generations of students to think boldly and creatively…and brighten the cultural, social, political, and civic life around us.” Located in the heart of Boston, students will study blocks away from major venues and museums in the city, including the Boston Opera House, the Boch Center Wang Theatre, the Museum of Science, the Museum of Fine Arts, and the Isabella Stewart Gardner Museum.  Access to these institutions will give students an opportunity to deepen their cultural education outside of class. In class, students can choose from more than 24 majors and 30 minors, such as comedic arts, acting, creative writing, journalism, sports communication, and theatre. The school also has nearly 100 clubs and organizations for its students to join. Ranking: 8th in Regional Universities North Size: 3,813 undergraduates, 633 graduates Demographics: 65% female, 35% male Tuition: $50,240 Acceptance rate: 40% Average GPA of accepted student: 3.64 Key dates and deadlines (2021): Application: February 15 Financial aid deadlines: February 1 A look at scholarships offered by Emerson  College is expensive! Many families spend years saving for college, but it can be hard to save up enough to pay for even 1 year’s tuition. One of the best ways to get extra funds to pay for college is to apply for scholarships. Scholarships are awards that you can apply toward tuition and other education expenses—with no expectation that you pay the money back. You can earn scholarships in many ways, including based on academic achievement, athletic prowess, or financial need. Emerson offers many scholarship programs to its students. For example, honors students can earn the Trustee Scholarship, which awards $28,000 annually. Top applicants can receive the Aspire Scholarship, which awards as much as $40,000 annually! Other programs offered by Emerson focus on success in specific fields and award amounts ranging from $5,000 to the full cost of attendance. Whether or not you receive a scholarship from Emerson, you should also take some time to apply for scholarships from other groups. Businesses, charity groups, and other organizations often operate their own scholarship programs.  If you look carefully, you can find scholarships for almost everything you can think of! If you’re looking to fund your college education by earning scholarships, Mos can help. Visit our financial aid tips and tricks page for advice on how to get the most aid possible. Student loans While savings and scholarships are generally the best way to pay for your education, it’s difficult to cover the full cost of college with those alone. If you need some extra funds to pay your tuition bills, you might want to consider turning to student loans. A student loan is a special type of loan designed to help pay for the cost of college. Like any loan, you have to pay it back eventually. However, borrowing money and dealing with the interest charges can be worth it if you’re investing in your education. Emerson’s financial aid website has information about the different loan programs available.  The best way to borrow money for most students is through the Federal Direct Loan Program. This program is a student aid program run by the US government. It offers both subsidized and unsubsidized loans to students. Subsidized loans are the better of the 2 options. With these loans, interest won’t build up on the loan until after you graduate. Interest starts to accrue on unsubsidized loans right away. Another reason federal loans are a good choice is that they have a few programs that make them easier to deal with. For example, borrowers can sign up for income-based repayment and can qualify for loan forgiveness in some cases. Private student loans are another option. These loans come from banks, credit unions, and specialized student lenders. However, they usually don’t have the same perks as federal loans and are often more expensive, meaning you should try to max out federal loans before turning to private ones. Student loans are complicated, and choosing the right one for your needs can be difficult. If you’re still wondering how they work, take a look at our article about the different types of financial aid you need to pay back. FAFSA  When you apply to college, you’ll have to submit a financial aid application to be eligible for things like scholarships and loans. The most important financial aid application you can fill out is the Free Application for Federal Student Aid (FAFSA). The FAFSA is a universal student aid application. That means it’s used by almost every school and program out there to help them make decisions about financial aid. The government and schools review the info included to determine what kind of need-based aid you’ll receive. Aid providers can determine your financial need through the FAFSA because you provide a lot of your family’s financial information with the application. This can include things like your family’s income and the amount you’ve saved for college. One important thing to note is that while the FAFSA helps schools determine your financial need, most schools do not guarantee that they’ll meet 100% of their students’ needs. That means some students will need to find other sources of funding, like private loans. You can fill out the FAFSA starting on October 1 for aid awarded in the next academic year. The deadline is the end of June, but Massachusetts has a state deadline of May 1, meaning you should fill out the form as soon as you can. For more information on the FAFSA, you can check out our article on how long it takes to complete the FAFSA. Emerson financial aid FAQs  Let’s answer a few questions you may have about financial aid at Emerson College. What is Emerson’s cost of attendance? Emerson’s cost of attendance in 2021 was $71,834. Of that amount, $52,190 covered tuition and fees, and the remaining amount went toward room and board and other expenses. How many students pay no tuition at Emerson? Emerson doesn’t publish information about how many students get a full ride, but 49% of first-year students received need-based aid, with the average aid amount totaling $27,101. Can out-of-state students receive financial aid? Yes, out-of-state students are eligible to receive financial aid. Universities like Emerson that you might be interested in  Consider these alternatives if you’re thinking about going to Emerson but aren’t sure it’s right for you. Suffolk University Suffolk University is another school located in Boston, Massachusetts. The school focuses on experiential learning, giving students real-world experience through the relationships it’s built with employers and other organizations across the city. At Suffolk, students can study the arts or choose to study other programs, such as accounting, politics, and law. Wesleyan University Located in Middletown, Connecticut, Wesleyan is a private liberal arts college. One focus at Wesleyan University is interdisciplinary learning, encouraging students to study across subjects instead of focusing on one specific field. The school is home to roughly 3,000 undergraduate students and 200 graduate students. Elon University Located in Elon, North Carolina, Elon University is a mid-sized private university that focuses on experiential learning. The school’s educational programs are grounded in the liberal arts, giving students a broad base of learning that they can apply to their work and life after college. Elon’s stated goal is to create an “academic community that transforms mind, body, and spirit and encourages freedom of thought and liberty of conscience.” Conclusion If you’re interested in theater or the arts, Emerson College is one of the top places to get an education. With its location in the heart of Boston, students will be surrounded by a city with a vibrant history and a strong arts scene. Though the school can be expensive, the available financial aid can help you cover the cost. College is expensive, but working with Mos can help. With Mos, you can get help paying for college through access to a huge scholarship pool. And don’t forget that you’ll need a great bank account once you’re off to college. If you’re looking for a good bank to work with, check out our list of the best student bank accounts. 

Read all about financial aid at Emerson, including scholarships, loans, and grants.

Emerson financial aid: a complete guide

As a teen, you're probably not rolling around in piles of cold hard cash. And that's why it's important to save as much as you can. Look, saving money is a pain whether you're 16 or 60. And let's face it, it's way more fun to spend it than it is to save it. But learning smart money-saving habits as a teen can help you curb financial chaos as an adult. In this article, we'll help you mature your money-saving skills with 10 simple tips. We'll also show you how to build a basic budget so that you can strengthen your financial discipline and bulk up your bank account. 4 reasons to save money as a teenager You probably don’t prioritize saving money because you’ve got other things on your mind, like, school, friends, and navigating life in general. But saving money, even in small amounts, comes with some pretty sweet benefits.  For starters… 1. Saving money gives you more independence As a teenager, you're probably itching for more independence. And one way to achieve it is by having your own money. If you want to go out with your friends or buy something you really want, you won't have to rely on your parents to foot the bill. Plus, if you prove to your folks you can save money—and spend it wisely—they might reward your maturity with more privileges. 2. You'll learn how much things actually cost Knowing the value of a dollar and, more importantly, what you can afford with that dollar are 2 important money lessons you'll learn by saving. Let’s say you find a pair of sneakers for $100.00—a good deal for a new pair of kicks! And let’s say you have a job that pays the federal minimum wage, $7.25 per hour. Before deductions from your paycheck and taxes on the sneakers, you’d need to work almost 14 hours—35% of a 40-hour workweek—to pay for your footwear. Is it worth trading those working hours to buy these shoes? Do you really need them? Can you find something equally good for cheaper? These are the questions you’ll start asking once you start saving and learning the true cost of things. 3. You'll have a cushion for unexpected expenses We all know how much fun teenage years can be (hint: a lot). But they can also be really unpredictable and expensive. For example, your car might break down, or you may need to pay for last-minute tickets to see your favorite band. If you have savings set aside, you can cover these types of unexpected expenses without going into debt or, worse, borrowing money from your folks. 4. Learning to save now makes your college years less painful College isn’t cheap! Between tuition, books, supplies, and living expenses, it costs about $35,331 per year. And while you may have scholarships, grants, and student loans to help cover these costs, after you pay them, you won't have much—if any—money left over. Sharpening your saving and budgeting habits before you go to college makes it easier to live on a shoestring budget—an unavoidable financial reality for most college students. But what if you didn’t have to live on ramen and schlep to the nearest coffee shop for internet because you can’t afford your own?  Our advisors at Mos can help you get all the financial aid you deserve before you ship off to college. Join Mos and learn how we can match you with scholarships and grants you never even knew existed. Top 10 money-saving tips for teenagers Let’s take a look at 10 tips you can use to save money—even if you’re not quite an adult. 1. Open the right bank account Opening a bank account is a super important first step for building your money-saving skills. A bank account also keeps your money secure and makes it easier to track your spending and savings. Most banks offer special bank accounts for teenagers, which usually come with advantages like: No minimum balances Low or no fees Overdraft protection Not all teen bank accounts are created equal. So shop around to find the bank account (and bank) that works for you. 2. Set a savings goal with the 52-week challenge The 52-week money challenge is a simple and easy way to jumpstart savings. Here’s how it works: You save $1 the first week of the year, $2 the second week, and so on.  By the end of the year, you’ll have saved over $1,300. Not bad! 3. Practice the 30-day rule to prevent impulse purchases If you’re tempted to make an expensive impulse buy, think about it for 30 days before making a decision. Chances are you’ll lose enthusiasm and avoid buying something you didn’t really want or need. 4. Hide your debit card and pay with cash Instead of using your debit card to pay for things, withdraw a set amount of cash at the start of every week. This money is everything you're allowed to spend for the next 7 days. And if you spend it all, tough luck—you’ll have to wait until next week for more! Paying with a plastic card doesn’t have the same impact as physically handing over cold hard cash. Watching your hard-earned money go from your hand to the cashier’s hits a little different, reminding you that money is finite and that you’d better spend it wisely. 5. Make a cash-match pact with your parents For every dollar you save, ask your parents to match it. You’ll feel motivated to save more money, and you’ll reach your savings goals twice as fast! 6. Embrace student discounts (they add up fast) Student discounts are the easiest way to save money on everything from food to entertainment to clothing. Now, not all businesses offer student discounts—especially small businesses—but it's worth asking if they do. Discount percentages vary from business to business, but it’s not unusual to save 10%+. Sure, 10% might not seem like much, but over time, it adds up. If you’re really eager to better understand where your money goes, every time you save money with a student discount, keep track of it. This way, you’ll feel motivated to seek out deals and save even more. 7. Pay yourself first Paying yourself first is often called “the golden rule of saving” because it’s one of the simplest, most effective money-saving strategies. Here’s how it works: if you’ve got a part-time job then, whenever you get paid, transfer a set percentage of your paycheck into savings. That’s it! Prioritizing saving over spending sounds like common sense. But, 37% of Americans struggle with savings, having less than $400 to cover unexpected expenses. Stashing away money every payday, even if in smaller amounts, is the key to building a financial cushion.  8. Find a budget that works for you Just because you’re a teen doesn’t mean you can’t learn the motions of budgeting. But it helps when you find a budgeting strategy you’ll stick with.  We’ll show you how to make a simple budget later in this article, but for now, we’ll explore 3 popular budget types to help activate your money-saving powers. 50/30/20 budget: 50% of your money goes to needs, 30% to wants, and 20% to savings. Following the 50/30/20 budget makes “paying yourself first” a heck of a lot easier. Zero-based budget: Income - [spending + savings] = $0. With a zero-based budget, you account for every last dollar. So if you earn $500/month, your total spending and savings must total $500. If you need to watch your money like a hawk, or you’re looking for a lean college student budget, the zero-based budget works wonders because, with it, you’ll know exactly where your money is going. Envelope budget: Create a simple monthly budget (we’ll show you how next), and grab one envelope for each expense category you have in your budget. Label each envelope with an expense category, like “clothing,” “video games,” or “eating out,” and fill each envelope with the amount you’ve budgeted for that category.  For example, if you’d budgeted $100 for video games, put $100 in that envelope. Now, when you want to buy a new video game, you have to spend the cash from that envelope—no dipping into other categories. And If you don’t have enough money in the envelope, you can’t afford it. 9. Automate your savings Want to put your money-saving on autopilot? Set up your bank account to automatically transfer money into savings every time you get paid. This way, the money is tucked away before you even think about spending it.  With automated savings, you'll also unleash the true power of "paying yourself first" and the 50/30/20 budget without even realizing you're doing it. Talk about a win-win.  10. Buckle down with a part-time job  It’s not a shocking revelation, but having a part-time job and earning money is the fastest way to save more money. Now, a part-time gig or summer job comes with more perks than just extra cash. You’ll develop valuable essential life skills like time management and also learn to appreciate the hard work that goes into earning a paycheck.  And when you realize what it takes to earn money, you may be less willing to part with it so easily! How to make a simple a teen budget Even a simple budget can help you level up your finances. Here, we’ll show you how to create a teen-friendly monthly budget so you can get more comfortable with managing money.  List your sources of money First, you’ll want to list all of your income sources for the upcoming month. Don’t forget to include money you’ll receive from gifts—grandma’s birthday check still counts as income after all! Your sources of income might include: Part-time job Allowance Gifts (birthdays, Christmas, etc.) After you’ve listed all your income sources, predict what you expect to earn from each source. Don’t worry about being 100% accurate, but try to do better than a “ballpark estimate.”  List your expenses Before you figure out how to budget your expenses for the upcoming month, you need to figure out your spending habits. And the simplest way to do this is by looking at your bank statements, either in print or online. Armed with your bank statements, jot down your expenses from the past 2–3 months.  Next, you’ll want to categorize these expenses. For example, going to the movies or buying a new video game could both be categorized as “entertainment” in your budget.  Your budget categories are entirely up to you. But, in general, you’ll want to group similar expenses into the same category to keep things simple. Your expenses categories might include: Clothing Gas Entertainment Eating out Car expenses (maintenance, repairs) Now that you have your previous month’s expenses categorized, add up the totals for each category to get an idea of how (and where) you spend your money. Identify your “money pits” and see where you can start saving Once you have a list of your income and expenses, you can start to see where your money is going. This information can help you make changes to your spending habits. For example, if you find that you're spending a lot of money on eating out, you may want to cut back and bring lunch instead. Or, if you're spending too much on clothes, you may want to shop at thrift stores or look for sales. Tweak your budget month-to-month At the end of every month, look at how you spent your money and ask yourself these guiding questions: Was my predicted income accurate?  Did I hit my savings goal? Where did I overspend? Where did I underspend? Where can I adjust my budget so that it’s more accurate for next month? As a teen, you’ll have variable income and expenses, so it’ll be hard to predict your budget every month. But with more experience, you’ll get better at tracking your budget and tweaking it week-by-week. Frequently asked questions Let’s answer a few questions about how to save money as a teenager. How much money should I be saving as a teenager? How much you should be saving is up to you. But saving 10–20% of your income is a reasonable amount. How can a teenager save money without a job? Saving money without a job might seem impossible, but there are a few things you can do. You can start by looking for ways to earn extra money. For example, you can negotiate an allowance with your parents, work odd jobs for neighbors, or save money you’ve received from birthdays or other special occasions and holidays. How can a teenager save money each month? Following the tips outlined in this guide is a great way to boost your savings. At the very least, learn how to budget. Becoming a savvy budgeter will 10x your saving habits like nothing else. Get started building great saving habits  Saving money can be tricky, especially if you're a teen. But if you follow the simple tips and strategies we've laid out for you, you'll be on your way to a bright financial future.  Remember, start small and increase your savings over time. And always keep your long-term financial goals in mind. With a little effort, you can make saving money easy. And if you’re heading off to college and would like an advisor to help you steer your finances until you graduate or just lend a helping hand every now and then, Mos is there for you! 

Learn how to fatten your bank account with these 10 simple money-saving tips for teens.

How to save money as a teenager (and pay for higher education)

According to the Education Data Initiative, student loan debt in the US sits at almost $1.75 trillion in 2022! If you think that sounds like a lot, that’s because it is. Student debt represented 7.6% of the entire US GDP in 2021. So student loan debt is clearly a problem. But luckily, there are several programs that can help you cancel student loan debt—your own, that is. That means your loans could be completely erased if you qualify for any of these programs—sounds like a good deal, right? In this article, we’ll explain how student debt cancellation works and cover several payment plans, forgiveness programs, and other methods that offer it so you can see if you qualify. What does student loan debt cancelation actually mean? If your student loan debt gets canceled, you no longer have to pay it back. When it comes to cancellation, there are two types: forgiveness and discharge. Forgiveness erases your student loans after making on-time payments for long enough if you work within a specific sector.  Discharge erases your loans under other circumstances, such as if you become disabled or a school defrauds you. Debt cancellation can be a big help—after all, the average federal student loan balance sits around $37,000 per borrower in 2022. Plus, by July 2021, about 11.4% of borrowers with student debt claimed they couldn’t make at least 1 of their payments that year to date. Usually, only federal loans can get canceled. Most private lenders don’t let you cancel loans without serious circumstances, like death, disability, or another rare occasion dictated by the government. Speaking of that, the Biden administration made student loan cancellation a big piece of their platform. However, President Biden’s recently proposed 2023 budget doesn’t mention student loan forgiveness or payment pauses.  Student debt cancellation and taxes When you borrow money to pay for school, you eventually have to pay it back. If that debt’s canceled, it’s basically like you got paid the money in the first place. Therefore, the IRS may consider a canceled student loan to be income. However, if your student debt is canceled as part of a federal debt forgiveness program, in most cases, canceled student loans aren’t taxed—you just need to report them in your tax filings. Plus, the majority of student loans canceled between 2021 and 2025 are exempt from taxation.

Also, note that these rules could change if the government takes more action to provide student borrowers with financial relief. How to get student debt canceled: Income-driven repayment programs Income-driven repayment plans use your income and family size to set your monthly student loan payment at an amount you can afford.  Each plan has a few rules to be eligible. They each calculate your payment based on your discretionary income, which is defined differently depending on the plan. Your payments can change each year as you recertify your income. Regardless, they’ll often be lower than what they’d be under a Standard Repayment Plan. As a result, you might not pay off your entire balance during your repayment period. That’s ok because they all offer loan forgiveness after making monthly payments on time for long enough. Here are the details for each plan: Revised Pay As You Earn Anyone with eligible federal loans as defined by the Department of Education (ED) can qualify for the Revised Pay As You Earn (REPAYE) program.  Under REPAYE, your loan payment becomes 10% of your discretionary income, which is defined as your adjusted gross income minus 150% of your area’s poverty level. If all your loans were used for undergrad education, you could qualify for loan forgiveness after 20 years—which involves making 240 successful monthly payments.  That number jumps up to 25 years, or 300 successful payments, if any loans under your REPAYE plan were used for professional or graduate studies. Pay As You Earn To qualify for a Pay As You Earn (PAYE) plan, you must be considered a new borrower as defined by the ED.  Under PAYE, your loan payment becomes 10% of your discretionary income, which is defined as your adjusted gross income minus 150% of your state’s poverty guidelines. That said, your payment can never be more than the 10-year Standard Repayment Plan amount. After 20 years or 240 payments, the remainder of your eligible loans can qualify for forgiveness. Income-Based Repayment Anyone with eligible federal loans as defined by the ED can qualify for an Income-Based Repayment (IBR) plan. However, your payment varies depending on when you borrowed your loans. For new borrowers on or after July 1, 2014: Your loan payment becomes 10% of your discretionary income, but never more than the 10-year Standard Repayment Plan amount. For borrowers that were not new borrowers on or after July 1, 2014: Your loan payment becomes 15% of your discretionary income, but never more than the 10-year Standard Repayment Plan amount. Once again, discretionary income is defined as your adjusted gross income minus 150% of your state’s poverty guidelines (based on your family size). Your repayment period length before forgiveness depends on the same thing: For new borrowers on or after July 1, 2014: Your repayment period before forgiveness is 20 years or 240 periods if you were a new borrower on or after July 1, 2014 For borrowers that were not new borrowers on or after July 1, 2014: Your repayment period before forgiveness is 25 years or 300 payments. Income-Contingent Repayment Income-Contingent Repayment (ICR) plans are available to anyone with eligible federal loans as defined by the ED.  Under an ICR plan, your loan payment becomes the lesser of: 20% of your discretionary income Your expected payment on a repayment plan with a fixed payment over 12 years, adjusted according to your income In this case, however, discretionary income is defined as your adjusted gross income minus 100% of your state’s poverty guidelines (instead of 150% like in the other plans). As for forgiveness, you must make payments for 25 years, equal to 300 payments, before having your loans forgiven.  Loan forgiveness programs that could cancel your student debt Income-based repayment plans are the main way for most people to get their federal student loans canceled. However, there are a few special loan forgiveness programs for people that work in certain jobs or industries. Most require you to be on an income-based plan, but loan forgiveness comes much sooner. Check out these loan forgiveness programs to see if you qualify: Public Service Loan Forgiveness The Public Service Loan Forgiveness is one of the most well-known programs in the country. It’s designed for anyone who works for federal, city, state, or tribal governments. This includes government employees, teachers, and public safety officials like police officers and firefighters, to name a few. Not-for-profit employees may also qualify for PSLF. If you’re in an eligible job, you have to meet the following: Have direct federal student loans or consolidate other loans into direct federal loans Work full-time Make on-time payments for 10 years (120 payments) Repay loans on a qualifying income-driven repayment plan—although this is waived until October 31, 2022. After those 10 years are up, you can apply to have your remaining eligible federal loan balance wiped clean by filling out the free online application. Teacher Loan Forgiveness PSLF can help you erase all your loans, but it takes 10 years to qualify for.  Fortunately, if you’re a teacher, you could get some of your loans erased sooner through the Teacher Loan Forgiveness program. To qualify, you generally have to teach full time for 5 complete consecutive academic years in a low-income school or educational service agency. Direct and FFEL loans are eligible. If you qualify, this program could forgive up to $17,500 in Direct or FFEL loans after your 5th year. There are plenty of nuances regarding what is a “low-income” school or educational agency and how to count years where you spend only part of the year teaching. Federal Student Aid goes over the requirements in more detail here to clear those things up. Federal Perkins Loan cancelation The Perkins loan program was phased out in 2017, but many borrowers still carry these loans.  Fortunately, many public service employees can have these erased under Federal Perkins loan cancellation. The ED’s Federal Student Aid office provides a lot of detail on how teachers can have their Perkins loans canceled. However, exact requirements can vary by profession. Per Federal Student Aid, you can contact the school that made the Perkins loan to you or that school’s loan servicer to get the proper forms and directions for applying for forgiveness. Federal employee student loan forgiveness Work for the federal government but don’t qualify for PSLF or Perkins cancellation? Don’t worry—according to the US Office of Personnel Management, federal agencies can offer federal student loan repayment as a hiring incentive to fill their positions.  It’s not total forgiveness, but the agency or department you work for could help you pay for part or all of your loans, including Perkins loans if you’re in good standing at work. Per the US OPM, your agency can pay you up to $10,000 per calendar year in student loan repayment assistance. The total repayment allowed caps at $60,000. Of course, the total amount will vary depending on which agency you work for. Contact your HR department to get the details. Student loan discharge Discharge is slightly different from forgiveness—it erases loans if you can’t pay them back, you’re a victim of fraud, and you have other circumstances that are more “out of your control.”  There’s not necessarily a fixed amount of time that you have to pay back your loans before qualifying. Many of these discharges used to count as income, but the American Rescue Plan—passed to assist the country during the pandemic—has waived any taxes associated with discharge. Regardless, here are the ways you could have your loans discharged. Total and permanent disability discharge If you become totally and permanently disabled, as defined by Federal Student Aid, you can get your loans discharged. To prove a disability for loan discharge purposes, you’ll need documentation from the Department of Veterans Affairs, the Social Security Administration, or a doctor. Death discharge If you die with outstanding federal loans, those loans will be discharged. PLUS loans are discharged if either you or the borrower—aka your parent—die while the loan is outstanding. This means your loans won’t pass onto anyone else.  School closure discharge Sometimes, schools close down for good. If your school closes while you attend or shortly after withdrawing, the government may discharge your federal student loans. Make sure you meet the requirements before applying for discharge. Bankruptcy discharge Bankruptcy discharge is rare, but you may qualify if the following apply to you: You would not be able to maintain a minimal standard of living if you’re forced to repay the loan There’s evidence this hardship will continue for a significant part of the repayment period You made good-faith efforts to repay the loan before filing bankruptcy Even if the court grants you discharge, you may only have some of the loans discharged. In some cases, you may simply get a lower rate or other more favorable terms without any true loan cancellation. Borrower defense discharge If your school defrauded you in some way, and you can prove it, you can get your loans discharged. This is more likely to happen with for-profit schools. ITT Technical Institute is a prominent example, having allegedly defrauded millions of students over several decades before closing. Many former students are having their loans used to attend ITT Tech discharged. False certification or unauthorized payment discharge If your school falsely certified your eligibility for loans, that’s not your fault. So you can get your loans discharged. For instance, you could be an identity theft victim—if someone took out loans in your name, you could get them discharged. Another example would be the school certifying you as eligible to take on loans when you’re not actually eligible. Again, that’s the school’s fault, so the government will discharge those loans.  Unpaid refund discharge If you withdraw from your school, but your school doesn’t refund unused loans to the ED or the relevant lender, you could get these loans discharged since you didn’t use them. Get your loans erased There are plenty of ways you could qualify for student loan debt cancellation, forgiveness, or discharge. But even if you think you’re eligible, it takes time to apply for these programs and wait for your application to process.  You should keep paying your loans until you get written confirmation your loans will be erased. The last thing you want is to face the consequences of unpaid loans while you’re seeking forgiveness. If you don’t qualify for any of these programs, or you’re struggling to keep up on loan payments while waiting for approval, we got you. Read our guide on getting out of student loan debt for more tips. 

Got a lot of student loans? In certain situations, you can get your loans erased. Learn how to cancel student loan debt and reduce your debt burden.

How to cancel student loan debt

Taking on a student loan is a pretty big commitment. Right now, the average federal student loan debt balance is $37,113—not exactly a great start to post-college life! And even if you’re enjoying all of the consumer protections of a federal student loan, you’ve got to be wary of how this sort of debt can impact your finances. After all, you may be able to handle the terms of your student loan right now. But in a decade, you may find yourself in a position where you need to adjust your repayment plan or interest rate to fit your lifestyle. This is where refinancing can be a real lifesaver. This guide explains what refinancing is, the pros and cons of refinancing a student loan, and how to refinance a student loan. What is refinancing a student loan? Refinancing a student loan is just like refinancing any other debt like a car loan. When you do so, you’re essentially trading in all of your current loans to another private lender. That lender will then settle your existing debts with your current lenders. From there on out, you’ll have a new loan that you commit to pay off instead. In terms of refinancing, most people choose to trade in their existing student loans for a new loan with a better (or easier) repayment plan. Refinancing often enables you to score a new loan deal with a lower interest rate—which will mean lower monthly payments.  Refinancing a student loan can get you a new loan product with the option to pay off your loan earlier using a more aggressive repayment plan over a shorter time period. You can also opt for a longer repayment period that brings your monthly payments down in exchange for allowing your new lender to stretch your repayment timeline. At the end of the day, refinancing a student loan can be a good option for some people—but it’s not for everybody. A lot of experts specifically advise against refinancing federal student loans (we’ll get to that in just a minute). But if you’ve got private student loans, it is often possible to get a better deal through refinancing. What are the benefits of refinancing a student loan? While refinancing isn’t the best choice for everyone, there are quite a few serious benefits you can expect to gain by trading up your student loan for a new deal. To give you an idea, let’s quickly walk through some of the key reasons people tend to refinance their student loans. Refinancing lets you change your repayment plan As we’ve already mentioned, the single greatest benefit of refinancing is that it lets you change your repayment plan. Generally speaking, most lenders will let you choose a new loan term ranging from 5 to 20 years—assuming you qualify. This puts you back at the steering wheel in terms of driving your own repayment schedule.  By refinancing, you get to decide how quickly (or slowly) you want to pay back your loans. If you go for a shorter repayment plan, that means you’ll be making more aggressive monthly payments—thus escaping your debts quicker so that you can move on to bigger and better financial goals. On the flip side, if you opt for a longer timeframe, you’ll be able to make lower monthly payments. This will make life a lot easier right now if you’ve got other financial responsibilities draining your income. Just bear in mind that by taking a longer repayment plan, you’ll ultimately be paying back a greater amount over time because of interest. You get to consolidate loan payments Another core benefit you can gain by refinancing student loans is consolidation. If you had to take out multiple student loans to pay for school, most refinancing lenders let you trade in multiple loans in exchange for one new loan, which combines the outstanding amounts.  In some cases, consolidating student loans by refinancing can save you a lot of money. In other cases, it just makes life easier by reducing the number of direct debits coming out of your bank account to just one monthly loan repayment. You can apply with a co-signer One benefit of refinancing a student loan is that you may be able to bring a co-signer into the frame to secure a better deal. Let’s say you initially got approved for a private student loan based on your own credit history—which was just average. If you’ve got a trusted friend or family member with a great credit score, you might be able to get a better student loan deal by getting them to cosign your loan. When you take out a loan, your lender is going to look at your credit history to decide whether you should get approved. They’ll also look for a low debt-to-income (DTI) ratio before approving you for refinancing. That’s why a co-signer with a great credit history will help you qualify for a better deal. Just choose your co-signer wisely, and make sure they fully understand all of the responsibilities involved in this role.  After all, becoming a co-signer means they agree to take on any missed payments. So if things go wrong, this arrangement can strain even the closest relationship. Improve your overall financial picture By refinancing a student loan, you’re generally going to be able to get a lower interest rate or lower monthly payments on your student loans. That makes it a lot easier to help you avoid missing a payment, which can then go on to improve your overall personal finances. Why does keeping up with loan payments improve your overall financial picture? Above all else, one of the core elements of securing a healthy credit score is to make on-time payments for any existing debts. By improving your credit score, you’ll get to qualify for better credit card deals, financing on cars, a mortgage, and more. Why is it sometimes not a good idea to refinance a student loan? Refinancing your student loan might look great on paper—but there are drawbacks to refinancing, too. To give you an idea, we’ll walk you through a few of the main reasons some people shouldn’t refinance their student loans. You might not be eligible The first drawback of refinancing is that not everybody is allowed to do it. In order to get approved for refinancing, you’ll need a pretty good credit history. Generally speaking, many lenders will look for a credit score of at least 650 before they’ll offer you a refinancing package. But even with a lower credit score, you may be eligible—although the terms of the loans you qualify for may be worse. You also need a low debt-to-income ratio. A low DTI shows prospective lenders how much of your monthly income currently goes toward paying your other bills (like rent, utilities, and car payments). When it comes to your DTI ratio, lenders are normally looking for anywhere under 50%. But if you’ve got a DTI ratio way under 50%, your chances of getting approved will be a lot better. To figure out your DTI ratio, divide the total monthly payments you’re already making by your existing monthly earnings. If you don’t qualify for refinancing, all is not lost. You might still be able to get a better deal by bringing in a co-signer. Your credit score determines your new interest rate Even if you do get offered a new student loan deal, it might not be better than the loan you’ve already got.  That’s because the interest rate you get offered will be largely dictated by your credit score—and so if you don’t have a great credit score, you probably won’t get a great deal, either. Refinancing can lengthen your repayment timeline One of the benefits of refinancing a student loan is that you can lengthen your repayment timeline. But for some people, this is actually a big drawback. If you choose to refinance your student loans and you’re already halfway through repaying them, you can probably get lower monthly payments. But in exchange for those lower payments, you’ll often be stretching out the amount of time it will take to repay your loans completely. That means you’ll be living with this large debt for longer and usually also pay a larger total amount because of interest. You could lose consumer protections Remember how we said that a lot of experts will tell you to avoid refinancing federal student loans? That’s because a federal loan offers some key protections that private loans don’t. For example, federal student loans have fixed interest rates that help you plan for the future, while a lot of private lenders offer a variable interest rate. Variable interest rates can go up and down, which means your monthly payment might go up in the future.  With federal student loans, you can also negotiate income-based repayment plans. In certain cases, the outstanding balance of your federal student loan can even be forgiven. Private lenders aren’t obligated to do any of that—which is important to remember because you can’t refinance a federal student loan with the US Department of Education. You can only refinance a federal loan with a private lender.  That means by refinancing, you’ll be trading in your federal student loan for a private student loan, which is almost never a good idea. Your terms might end up being worse over the long term If you currently have federal student loans, be very careful with any lenders that promise you lower interest through refinancing. In general, federal student loans offer lower interest rates than all private lenders since they don’t aim to maintain a profit margin on your debt. Refinancing lenders may try to tempt you with initially low interest rates or low monthly payments, but make sure you read the fine print before signing on that dotted line. How to refinance a student loan When refinancing a student loan, you need to remember some key factors. Consider your credit score, the type of loan you have, the remaining time you have left on that loan, your current interest rate, and your monthly payment. Armed with this information, you’ll be able to cross-reference these key points while shopping around to find out if lenders are actually able to offer you a better deal or not. Shopping around is the first step when refinancing. Browse different options online and compare the rates and fees of each lender. Many lenders offer prequalification tools that perform a soft credit check on your credit report. Soft credit checks are your friend—because if you have too many hard credit checks taking place, this will be a red flag for potential lenders. By getting prequalified, you’ll be able to get a clearer picture of all the rates and loan terms you might qualify for. After you’ve seen all of the rates available, it’s time to choose your new loan product! Most lenders will be in a position to offer you more than one loan product. If you need help determining which is the best of those options, don’t be afraid to get in touch with the lender to ask for help. Next, you’ll have to fill out your loan application. The official loan application form is required even if you’ve gone through the lender’s prequalification process. You’ll need detailed information about your finances at hand for this step—we’re talking pay slips, tax returns, debt statements, asset statements, and more. Prepare all the documents you need before starting the process. Finally, you sign your new loan agreement and start making payments on your new loan. Just keep in mind that your new lender may not pay off your former loans right away. Sometimes the process takes a few weeks, which means you might continue to make loan payments to your previous lender. Conclusion Refinancing a student loan can help you get out of debt sooner, but this depends on whether you’re eligible for a good deal. Getting a good deal is all about doing your homework, comparing multiple offers, reading the fine print, and considering both the risks and benefits of refinancing before you fill out an official loan application.  If you decide that refinancing is a good option for you, the process is relatively straightforward. Just be sure to ask questions and look out for other funding opportunities that can help you pay for college faster. If you’re still in school, join Mos now to find out more about financial aid and to get matched with loads of scholarships and other financial aid opportunities to help you make the most of your time in college. 

Want to learn how to refinance a student loan? Check out this guide from Mos.


How to refinance a student loan

If you’re developing a shortlist of all the colleges you’d like to apply to, chances are the University of Southern California (USC) is right there at the top. But just like every other university in the US, the cost of attendance can be a barrier for a lot of aspiring students. Fortunately, USC offers a range of generous financial aid packages in the form of scholarships, grants, and more. If you’re interested in applying to USC but wondering how you’ll pay for it, we’ve got you covered. Let’s break it all down. A snapshot look at USC Founded in 1880, the University of Southern California (USC) is home to more than 22 academic schools, has an endowment of $8.1 billion, and welcomes almost 50,000 students every year. USC has 2 primary campuses. Its flagship campus is the 229-acre University Park Campus, which houses the USC Dornsife College of Letters, Arts and Sciences, the Graduate School, and most of USC’s professional schools. USC also has a Health Sciences Campus which houses the Keck School of Medicine of USC, the School of Pharmacy, and 3 teaching hospitals. If you’re into sports, USC has also got 110 NCAA national championships to its name—you get the idea. USC is internationally renowned both in terms of its academics and sporting prowess. Ranking: 27th nationally Size: 49,500 Demographics: 48% male, 52% female Tuition: $63,468 Acceptance rate: 16.1% Average GPA of accepted student: 3.74 - 4.0 Key dates and deadlines (2022) Application: January 15 Financial aid deadlines: February 11 A look at scholarships offered by USC The University of Southern California (USC) definitely isn’t the cheapest school in the country. But the university does administer over a dozen prestigious (and quite generous) scholarship programs for incoming undergraduate students. These scholarship programs vary pretty dramatically in terms of both the number of scholarships available as well as in terms of value. But regardless of the scholarship amount on offer, it’s critical to note that, unlike loans, scholarships don’t have to be repaid. They’re awarded based on academic merit, leadership, talent, and service—so this is effectively free money for your studies! To give you an idea of what’s on offer, let’s take a quick look at a few of USC’s most popular scholarship programs. Trustee Scholarship The USC Trustee Scholarship is a merit-based scholarship for incoming undergraduates. Candidates for the program are chosen by the USC staff and faculties from a competitive national pool. USC says that winning applicants are those who pursue a demanding academic curriculum and have worked to achieve the highest academic level possible. Only around 100 Trustee Scholarship awards are issued each year, but it’s definitely worth applying for if you think you fit the bill. Each award equates to a full-ride scholarship in which all tuition fees are covered. Translation: if you’re wondering how to go to USC for free, earning a Trustee Scholarship is one of the best ways to do it. Presidential Scholarship The USC Presidential Scholarship is another merit-based scholarship program the school offers. Candidates are assessed and chosen in the same way as in the Trustee Scholarship program. But the key difference is that the Presidential Scholarship has twice as many awards up for grabs—and they’re still worth half of your annual tuition fees. USC administers around 200 Presidential Scholarships every year. Deans Scholarship The Deans Scholarship is a competitive merit-based scholarship program USC offers for high academic achievers. But in addition to academic criteria, eligibility for the scholarship also incorporates criteria in which candidates are asked to demonstrate talent, innovation, perseverance, or leadership. Around 100 Deans Scholarship awards are issued each year, and the scholarship amount is worth a quarter of your annual tuition. Leadership Scholarship USC’s Leadership Scholarship is another merit-based scholarship in which candidates are assessed based on their academic achievement. But unlike some of USC’s other scholarship programs, the Leadership Scholarship focuses on each applicant’s leadership skills demonstrated either in their respective schools or local communities. About 30 Leadership Scholarship awards are issued each year, and each one is worth $10,000 per year. Want to learn more about scholarships? It’s important to remember there are a lot more external scholarship options out there beyond what USC offers.  Join Mos now, and we’ll walk you through all your options and help you apply. USC student loans A lot of USC students and their families need to take loans as a supplemental way to finance their college education. Fortunately, there are quite a few different types of loans available. Before we dive into specifics, let’s take a step back and talk about what student loans actually are. Simply put, a student loan is money that you borrow from a lender so that you can pay for your college tuition right now. After you graduate, you’ve then got to repay all of that money back to your lender over time—with added interest.  Interest is the amount of money a bank or lender charges you for the privilege of getting to borrow their money. If you’re taking out a federal loan backed by the US Government, interest rates are normally fixed.  Federal student loans also come with a number of consumer protections like repayment grace periods, deferred interest accrual, income-based repayment plans, and more. If that sounds like something you might be interested in pursuing, all you’ve got to do to apply for a federal student loan is to complete and submit a FAFSA. USC accepts Direct Stafford Loans, Federal Direct Plus Loans, and Federal Direct Grad Plus Loans. You can also opt for a private loan.  But be careful if you opt for this route: each lender has different requirements for you to be eligible—like US citizenship status, degree status, and enrollment status—plus different loan rates, repayment terms, and other conditions.  To make things worse, some lenders may even require you to pay interest while you’re still in school. That means you could find yourself struggling to keep up with payments before you’ve even graduated. That’s why it’s generally recommended that you aim for a federal student loan if you qualify. Want to learn more about applying for USC student loans? Join Mos now, and let’s get started. FAFSA If you’d like to apply for USC financial aid, you’ll be relieved to know that the application process is pretty simple. You can apply for most USC financial aid opportunities via the Free Application for Federal Student Aid (FAFSA).  What is the FAFSA? The FAFSA is the US Department of Education’s universal financial aid application form. Students can use it to apply for federal student loans, federal grant aid, and work-study support. But completing and submitting your FAFSA won’t just score you federal student aid. State governments and USC will look at your FAFSA to determine whether you’re eligible to receive extra state support or school-specific grants and scholarships. That being said, don’t forget that some USC scholarships may require you to fill out a separate application form, so you’ve got to make sure you do your homework and understand all of the application requirements for relevant scholarships. That’s where Mos really comes to the rescue. For more on applying for FAFSA, including important dates and how to make sure your application is submitted successfully, head to our learning hub. USC financial aid FAQs Let’s take a look at some of the most frequently asked questions (FAQs) about University of Southern California (USC) financial aid. How much does it cost to attend USC? Unlike a lot of big schools, USC tuition is charged at the exact same rate for both in-state and out-of-state residents. That means you shouldn’t expect a huge tuition fee discount just because you’ve grown up in Los Angeles (although there are plenty of state-specific aid programs for California residents). The average cost of USC undergraduate tuition for the 2022/23 academic year is $63,468 per year. That being said, it’s important to note that there are a few additional costs of attendance you’ll need to bear in mind. These extra costs include: $1,258 per year for administrative fees An average of $10,506 for on-campus accommodation An average of $1,200 for books and supplies $450 new student fee for all incoming freshmen Just keep in mind that your actual costs are likely to differ a little bit, depending on your specific circumstances. For example, costs for students pursuing certain majors may be higher—science degrees may induce special lab fees, and art degrees are likely to include studio fees and supplies. How do you apply for USC financial aid? Most grants, scholarships, and loans included as part of a USC financial aid package can be applied for by completing a FAFSA. The FAFSA application season officially starts on October 1 every year. The FAFSA deadline is then normally June 30 or the end of the current academic year (whichever comes first). If you’re a US citizen, US national, or US permanent resident, you should be eligible to get federal student aid by completing the FAFSA. After you’ve submitted your application form based on your eligibility, you’ll then receive a financial aid offer from USC, which includes all relevant federal loans, grants, and scholarships you’re eligible for. Does USC offer student grants? A grant is a form of financial aid called gift aid—which means it’s free money that you don’t have to repay. Sources for grants and scholarships vary and can include federal and state governments, USC, community groups, companies, and more. But if you’re keen on pursuing an award from one of USC’s grant programs, there are several opportunities available. First, there’s the USC University Grant. This award is a needs-based grant for full-time students pursuing a bachelor’s degree. That being said, half and three-quarter-time students can apply for limited grant funds if they demonstrate sufficient financial need. The USC University Grant can be used to cover tuition fees, admin fees, books, housing, and meals. You’ve got to reapply every year. Another popular grant for USC students is the Cal Grant. Cal Grants are only for California students, and the funds can only be used to pay for tuition fees and mandatory admin fees. There are 2 types of Cal Grants: Cal Grant A and Cal Grant B. To qualify for one of the grants, you’ll need to fulfill general eligibility requirements and include information about your family income, GPA, and more. To get the Cal Grant A, you need a minimum GPA of 3.0. To get a Cal B grant, you need a minimum GPA of 2.0. Universities like USC that you might be interested in If you’re still unsure about whether USC is where you belong, there are other universities in California worth checking out. UCLA If you’re set on attending a top American university based in sunny California, the University of California, Los Angeles (UCLA) might be worth considering, too. Just like USC, UCLA is based in LA. But it’s also ranked a little higher in the university league tables at 20th in the US. Unlike USC, UCLA offers different in-state and out-of-state fee rates—but it’s worth noting UCLA’s acceptance rate is a little bit lower than USC’s acceptance rate. Berkeley The University of California, Berkeley is another high-ranking California college. Coming in at 22nd in the nation, Berkeley’s tuition fee rates are quite a lot lower than USC’s tuition fees—particularly if you’re already a California resident. UC Berkeley is a public land-grant research university, and its student body is a little bit smaller than USC at 45,000 students. Cal State Founded in 1947, California State University, Los Angeles is a public institution that ranks pretty high regionally. Although Cal State isn’t quite as large or distinguished as USC, its tuition fees are a lot more affordable. It’s also got a really high acceptance rate. Conclusion At the end of the day, USC is a pretty amazing school. It’s in the perfect location to launch any number of careers, it has loads of different majors, specializations, and an incredible student life offering. USC just isn’t very cheap. Fortunately, Mos can help you get the financial aid you need to afford it. We can help you apply for hundreds of scholarships and grants and negotiate for more financial aid. Check out Mos.com to learn more. 


Want to learn about USC financial aid? Check out this ultimate guide from Mos.com.

USC financial aid: a complete guide

If you’re considering studying in New England, you can’t do much better than Rutgers University. But just like every other college in America, the cost of attendance can be a barrier for a lot of aspiring students. Fortunately, Rutgers University offers a range of generous financial aid packages in the form of scholarships, grants, and more. If you're interested in applying to Rutgers but wondering how you'll pay for it, we've got you covered. Let's break it all down. A snapshot look at Rutgers Founded in 1766, Rutgers is the 8th-oldest college in the US and has been ranked New Jersey’s top public university. Fast-forward to 2022, and Rutgers now plays home to more than 66,000 students from all 50 states and over 130 countries. There are 3 campuses—Newark, New Brunswick, and Camden. Bearing in mind that Rutgers offers such a wide range of majors, it’s hardly surprising that the school’s staff and students have racked up so many accolades. Rutgers staff and alumni have earned National Medals of Science and Technology, Pulitzer Prizes, MacArthur “Genius” grants, Simons Fellowships, Fulbright Scholarships, and more. If you’re into sports, the Rutgers Knights compete in the NCAA’s Big Ten conference—and Rutgers is famously known for being the birthplace of college football. Ranking: 63rd nationally Size: 50,200 Demographics: 50% male, 50% female Tuition: $6,268 per semester (in-state), $14,868.50 per semester (out-of-state) Acceptance rate: 67% Average GPA of accepted student: 3.7 Key dates and deadlines (2022) Application: December 1 Financial aid deadlines: December 1 A look at scholarships offered by Rutgers One thing that really makes Rutgers University stand out is how accessible the school is in terms of financial aid. Rutgers offers a pretty wide range of merit-based and need-based scholarships for incoming undergraduate students. Rutgers scholarship programs do tend to vary in terms of the number of scholarships available and the award values. But because scholarships don’t have to be repaid, it’s important to note that a scholarship is essentially free money to help you pay for school. That’s why it’s always worth doing your homework to find out which scholarships you may be eligible for. To give you an idea of what’s on offer, let’s take a quick look at a few of Rutgers’ most popular scholarship programs. Keep in mind that some of these programs are specific to a certain Rutgers campus — so you’ll want to do some further research before applying. Scarlet Guarantee If you’re wondering, “How can I go to Rutgers free?” this could be one of your best bets. Launching for Fall 2022, the Scarlet Guarantee program is a scholarship scheme designed to provide generous financial support for first-year and second-year undergraduate students. The Scarlet Guarantee program has been set up using 3 funding tiers. These tiers are all based on your family’s adjusted gross income (AGI), which Rutgers will get from your FAFSA or NJAFAA (we’ll get back to these application forms in just a minute). Eligible Tier 1 (AGI $0–$65,000) students pay $0 for tuition and mandatory fees, beginning with their first semester—which means the Scarlet Guarantee is essentially a need-based, full-ride scholarship. Tier 2 (AGI $65,001–$80,000) students pay up to $3,000 for tuition and mandatory fees, beginning with their first semester, while Tier 3 (AGI $80,001–$100,000) students pay no more than $5,000 for their respective tuition and fees. First Scholarship Rutgers has a merit-based scholarship for high school seniors who have actively competed on a FIRST team at some point during their high school career. The Rutgers University First Scholarship is a single, merit-based scholarship of $5,000 per year for a full-time undergraduate student. Over the course of 4 years, that works out to a total scholarship of $20,000. Kevin Apuzzio Endowed Memorial Scholarship The Kevin Apuzzio Endowed Memorial Scholarship is an award for Rutgers students with emergency services experience. To be eligible, you’ve got to be a student who is an emergency services volunteer at Rutgers or an organization outside Rutgers. Rutgers September 11th Memorial Scholarship The Rutgers September 11th Memorial Scholarship program is for students who are the dependent child of a New Jersey resident whose death can be directly attributed to the terrorist attack on the World Trade Center, the Pentagon, or the airplane crash in Pennsylvania on September 11, 2001. To be eligible, you must be enrolled or accepted to study at Rutgers, The State University of New Jersey.  The financial support this scholarship offers will be made available to any undergraduate college or school at Rutgers’ New Brunswick, Newark, or Camden campuses. Vincent R. Kramer Scholarship Rutgers University’s Vincent R. Kramer Scholarship is awarded to one student entering their first year at Rutgers University, New Brunswick. The award totals $1,766, and the scholarship is for a recipient who can demonstrate outstanding academic achievement and leadership qualities in their community.  You'll be given preference if you're related to a present or past member of the Rutgers Alumni Association (RAA). Want to learn more about scholarships? It’s important to remember there are a lot more external scholarship options out there beyond what Rutgers offers.  Join Mos now, and we’ll walk you through all your options and help you apply. Rutgers student loans A lot of Rutgers students and their families rely on student loans as a way to finance their college education. Luckily, there are quite a few different types of loans available. In its most basic form, a student loan is just money that you’ve borrowed from a lender so that you can pay for your college tuition immediately. After graduating from school, you must then repay the loan over time with interest.  Interest is the amount your lender charges you for the privilege of getting to borrow cash. If you’re taking out a federal loan backed by the US Government, interest rates are normally fixed.  Federal student loans also come with other useful consumer protections like repayment grace periods, deferred interest accrual, income-based repayment plans, and more. If that sounds like an opportunity you’d like to explore, all you need to do to apply for a federal student loan is to send in a FAFSA. Rutgers accepts Stafford Loans, Plus Loans, and Grad Plus Loans. But you can also opt for a private loan if you need to.  Just be careful if you go private. When you take out a private loan, interest rates aren’t always fixed, and repayment terms can be more stringent. For example, some lenders require you to pay interest on your loan before you’ve even graduated. That’s why most experts recommend you aim for a federal student loan if you’re eligible. Want to learn more about applying for student loans? Join Mos now, and let’s get started. FAFSA If you’d like to apply for Rutgers financial aid, you’ll be glad to hear the application process is very straightforward. You can apply for most Rutgers financial aid opportunities via the Free Application for Federal Student Aid (FAFSA).  What is the FAFSA? The FAFSA is the US Department of Education’s universal financial aid application form. Students use the FAFSA to apply for federal grants, federal student loans, and work-study support. But sending in a FAFSA won’t just secure federal student aid. State governments and Rutgers also use your FAFSA to decide if you’re eligible to get state support or school-specific aid. Just remember that some Rutgers scholarships will require you to fill out a separate application form, so you’ve got to make sure you understand the application requirements for each scholarship you’d like to apply for. Don’t stress, because this is where Mos comes in. For more on applying for FAFSA, including important dates and how to make sure your application is submitted successfully, head to our learning hub. Rutgers financial aid FAQs Let’s take a look at some of the most frequently asked questions (FAQs) about Rutgers University’s financial aid. How much does it cost to attend Rutgers? The cost of attendance at Rutgers varies based on your major, where you’re from, and the campus you’re studying on. Generally speaking, most Rutgers campuses charge New Jersey (in-state) residents from $6,268 per semester for full-time students. Tuition fees for out-of-state residents start from $14,868.50 per semester for full-time students. But just like every other school, there are extra admin fees you’ve got to consider.  For example, domestic students are charged a Student Health Insurance Plan (SHIP) of $9,844 for each fall semester and $1,363 in the spring. If you’re studying for an online-only degree, you’ll need to pay $577 per credit for most undergraduate courses. Camden School of Business online-only courses cost $564 per credit. That being said, costs for some university schools and faculties are higher than others. For example, at Rutgers’ New Jersey Medical School, in-state tuition starts at $43,995 per year in year one. If you’re coming from out-of-state, the tuition rate jumps to $67,885 for your first year. Similarly, Rutgers School of Dental Medicine costs $55,290 per year in year one for in-state students, while out-of-state students pay $89,583 in year one. For more specific fee information, it’s worth taking a look at the specific major and Rutgers school you’re considering studying with. How do you apply for Rutgers financial aid? Most of the grants, scholarships, and loans included as part of a Rutgers financial aid package can be applied for by completing the Free Application for Federal Student Aid (FAFSA). The FAFSA is a financial aid application form that students use to apply for federal, state, or college financial aid. You can submit a FAFSA application from October 1—and you can normally apply until June 30 or the end of the academic year (whichever comes first). The FAFSA is ideal if you’re a US citizen, US national, or US permanent resident. But if you don’t fit into one of these categories, you still have options. If you’re undocumented, a Deferred Action for Childhood Arrivals (DACA) student, or an NJ Dreamer, you likely won’t be eligible to get federal student aid by completing a FAFSA. But you may still qualify for state-based aid and financial aid from Rutgers itself. Instead of a FAFSA, you should complete the New Jersey Alternative Financial Aid Application (NJAFAA). This is a similar, state-specific version of the FAFSA. After you’ve submitted the relevant application form based on your eligibility, you’ll then receive a financial aid offer from Rutgers, which includes all relevant federal loans, grants, and scholarships you’re eligible for. Does Rutgers offer student grants? Like scholarships, grants are gift aid that doesn’t need to be repaid. Grants are awarded to students based solely on financial need.  To be considered for any Rutgers grants, you’ll need to complete the FAFSA or the NJAFAA. Rutgers, the state of New Jersey, and the US Federal Government offer the following grants for students attending or planning to attend Rutgers: Federal Pell Grant Federal Supplemental Education Opportunity Grant New Jersey Tuition Aid Grant New Jersey Educational Opportunity Fund Grant NJ Stars II Disadvantaged Student Fund Universities like Rutgers that you might be interested in If you’re still not sure whether Rutgers is the perfect college for you, there are other universities in New England worth checking out. University of Connecticut The University of Connecticut (UConn) is jointly ranked 63rd in the country alongside Rutgers. Its acceptance rate is slightly lower at 56%, and UConn has a smaller student body. UConn is located in a fairly rural setting but has a range of well-respected NCAA sports teams and is ranked exceptionally well for its student-life offerings. New Jersey City University Founded in 1927, New Jersey City University (NJCU) is a public university based in Jersey City. Although NJCU doesn’t rank as well as Rutgers, New Jersey City has a great acceptance rate and relatively affordable tuition fee rates. Rowan University Located in Glassboro, Rowan University is a public research university with an additional medical campus in Stratford, New Jersey.  Rowan University’s acceptance rate is about on par with Rutgers, although its tuition fees are relatively lower. Conclusion At the end of the day, Rutgers is a nationally recognized school with a ton of history and a lot of learning opportunities in the form of several different majors. But if you need help paying to study at Rutgers, Mos is here to help. We can help you apply for hundreds of scholarships and grants and negotiate for more financial aid. Check out Mos.com to learn more. 


Want to learn about Rutgers financial aid? Check out this guide from Mos.com.
