As a college student, you have the power to create a better financial future now. By starting responsible money habits early, you will have a better understanding of basic personal financial skills such as budgeting, managing credit, savings, and investing. To help you, Indiana State University offers a variety of free online tools as well as important information on personal finance topics.
Planning
Net Price Calculator
The Net Price Calculator is an online guide to assist in early financial planning for college. This calculator provides an early estimation of federal, state, and institutional eligibility to help families estimate what aid the student may receive and to make arrangements to cover the cost of attendance. The calculator is designed for first-time, full-time undergraduate students. It may also be used by transfer students and students interested in enrolling in one of Indiana State's online programs.
Estimated Tuition and Fees
The University has created an online tool that enables students to estimate their tuition and fees for the year. This estimate gives students an idea of how much Indiana State will cost before any student aid. To use this tool, visit tuition.
Now that you're in college, learning to maintain a budget is an essential skill in preparing for your future, keeping track of your income and expenses, and meeting your financial goals. A budget breaks down how much money you are receiving (income) and spending (expenses) each month. To keep your budget balanced, your expenses should be less than your income, meaning you spend less than you make.
Budget Tool
Need a place to start in building in your budget? Download our customizable budget tool to help you track your income and expenses (On-Campus or Off-Campus)!
You Can't Always Get What You Want
Budgeting requires you to separate your needs from your wants. While Netflix may seem essential (especially during finals week), it's not a necessary expense. Needs include items such as housing, utilities, food, and transportation. When starting your budget, assign funds to your needs first. Any remaining money (also known as discretionary income) can be used to fund your wants.
Budget Busters
It's easy to justify small daily purchases. Will you really miss that $3 for a daily trip to your favorite coffee spot? But little "everyday" expenses add up. Consider this: if you drink one $3 coffee every day, that comes to around $90 a month and $1080 a year! Brewing your own coffee at home will cost a fraction of the price, and will save you massive amounts over time.
Tips for $uccess
- From Zzz's to $$$
When considering making a purchase that you want but don't need, take the night to sleep on it before making your decision. Many things that you think you need in the moment will lose some of their lusters after some shut-eye! - Calculate expenses in "work time"
Don't just think of purchases in terms of dollars. Calculate how many hours of work you have to do before you can buy it. If you're considering purchasing a $75 pair of shoes and you make $8/hour, it will take you over 9 hours of work to sport your new kicks. - Leave the cards at home
Skip the temptation to pay with plastic. If you're going shopping or out to dinner, pull out the amount you're willing to spend in cash and leave your debit and credit card at home!
Establish Your Emergency Fund
Life is unpredictable. One of the best ways to plan for the unexpected and to build a savings habit is to establish an emergency fund of your own. An emergency fund is money that you have set aside for unforeseen expenses.
Saving for an emergency fund takes discipline, especially when college presents you with an abundance of opportunities to spend your cash on everything from dinners out to drinks to travel. If you can put back just a little bit a week, you will be amazed at how much you have saved at the end of a year!
Check out the chart below to see how much you could save:
JUST $1/week = $52/year
$5/week = $260/year
$10/week = $520/year
$20/week = $1,040/year
Easy Ways to $ave
Keep the change
Whenever you break a dollar or get back change from a purchase, toss that money in a bank or change jar. That’s cash you may not miss, and if you don’t cash out for a year, you may be surprised at how much you’ve saved!
Create a “rewards” account
Have goal you’re trying to reach? Let’s say you’re trying to hit the gym before classes each morning. Every morning you go workout, put a dollar in a savings jar or a separate bank account. When you reach your “reward” amount ($25, $50, $100, etc), use the money to treat yourself for a job well done!
Opportunity cost
Saving for a large purchase, like a trip? It can be difficult to deny yourself the instant gratification of a dinner out or a fun purchase for a future reward. Try taking the money you would have spent on that purchase and moving it into your savings. For example, if you’re saving for a Spring Break trip to Florida, but you want to spend $30 on a pair of new sneakers, move the $30 you would have spent on the shoes into your Florida account. You’ll get the instant rush of moving money while building your trip fund!
Protection
College students are at risk of identity theft because of the availability of their personal information and how they handle this data. Indiana State University students know how important it is to protect identity. Check out this video they created!
What is Identity Theft?
Identity theft is when a person uses your personal information, such as your birthday and Social Security Number, with the intent to commit fraud.
One of the most common types of identity theft occurs when someone opens up a new credit card account in your name. Sometimes people may even take out a loan in your name.
How to Prevent Identity Theft
Protect your identity is very important. The following are some suggestions you should keep in mind.
- Do not carry your Social Security Card and your driver's license together in your wallet.
- Shred pre-approved credit card offers before throwing them away.
- Do not shop online or pay bills on a public computer.
- Never give personal financial information or your Social Security number to anyone.
- Limit the amount of personal information on social media; such as Facebook and Twitter.
If you haven't started already, you will probably start building your credit history while you are in college.
Your credit history begins as soon as you take out a loan. The loan can be in many forms including a credit card, a student loan, or a car loan.
Your timeliness in paying back your loan is reflected in your credit score - a grade that measures how reliable you are with paying back your debt. Also, if you don't pay off the full balance each month, you will be charged an additional amount called interest.
Credit Score
Understanding the Credit Score
The credit score takes into account your repayment track record, the amount of debt you owe, your history with debt, how often you apply for credit, and the types of credit you use. It helps lenders determine how risky it is to lend money to you, which can influence your interest rate and whether or not you qualify for certain types of loans.
When does your credit score matter? Lenders may look at your credit score every time you do one of the following:
- Buy a car or a home
- Set up a phone or utilities
- Rent an apartment
- Apply for a job
Interest Rate
Understanding Your Interest Rate
The interest rate is your cost for borrowing. Paying your bill in full by the payment deadline results in a cost saving for you because you will not be charged any interest. By deferring full payment, you will begin to incur interest charges on your outstanding balance.
Controlling Your Costs
The amount you will pay in interest will be determined by two factors: your annual percentage rate (APR) and the amount of the outstanding balance.
These factors suggest:
- You should be aware of your APR; this will help you know what percentage of your bill you will be paying in interest costs before you make your next purchase.
- You should be aware of how much you are spending; the more you owe, the more you pay in interest costs, and therefore, you should only spend what you know you can pay back, including interest.
Protection
Secure Your Future
Your credit rating is important to your future.
- Use your credit sparingly, and keep your spending within your credit limit
- If you encounter financial difficulty, talk to your lender and work out a payment plan.
- Pay off your balance in a timely manner so that you avoid financial penalties
- Only borrow what you need.
Process
Federal student loans offer fairly flexible repayment terms, including 10-year fixed repayment, graduated repayment, or income-based repayment for up to 25 years. To find out more about repayment options for Federal Direct Loans, contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243), or visit Direct Loans.
Federal loans offer other benefits. For example, students working in public service or in the military may be eligible for loan forgiveness. Or, if students have special circumstances, such as going back to school, losing a job, getting married, or having a child, they may be able to apply for forbearance or deferment. Check with the servicer for details.
Don't know who your servicer is? Visit the National Student Loan Database and log in with your Federal Student Aid username to view a comprehensive history of your student loan activity.
Private alternative loan repayment terms vary by lender.
Entrance Counseling
All borrowers of federal loans must complete entrance counseling before disbursement. Once complete, a student's file last for ten years. Visit StudentAid.gov to begin; detailed instructions are available - click here to visit.
Master Promissory Note
If you are a first time borrower of Federal Loans you must complete the Master Promissory Note. Visit StudentAid.gov to begin; detailed instructions are available - click here to visit.
Exit Counseling
All borrowers of federal loans must complete exit counseling before repayment begins. Visit StudentAid.gov to begin; detailed instructions are available - click here to visit.
Sample Repayment Schedule
The average undergraduate student borrows $26,946 in federal student loans at an interest rate of 3.9%. Using these figures, a single person who graduates in 4 years might have the following repayment schedule:
| Repayment Plan | First Payment | Last Payment | Total Amount Paid | Repayment Period |
|---|---|---|---|---|
| Standard | $272 | $272 | $32,585 | 120 months |
| Graduated | $152 | $455 | $33,979 | 120 months |
| Revised Pay as you Earn | $308 | $441 | $31,116 | 84 months |
| Income Contingent | $232 | $238 | $28,170 | 120 months |
To calculate an estimated repayment schedule using personalized data, visit StudentAid.gov.
Unable to Pay?
Failure to make regular payments on federal loans can have serious consequences, including negative credit reporting, default, or even wage garnishment. However, federal student loans offer options for borrowers who are unable to pay back their loans on time.
- Deferment Temporarily suspend payments due to a short term circumstance, such as enrolling in college or the US Military.
- Forbearance Apply for a pause in your payments after you've begun repayment, usually due to financial hardship.
- Forgiveness Several loan forgiveness programs are available, including public service loan forgiveness, or discharge due to disability or death. Contact your servicer to find out how to apply (visit National Student Loan Database).
A refund will be issued each semester to students whose financial aid awards are greater than the charges on their student account. Typically this will be 10 days prior to the start of classes. To have a better understanding of refunds, including items you should or should not purchase with your refund, follow the instructions on this page.
For further information on refunds, visit the Office of Student Financial Aid.
Things to Consider Regarding Your Refund
Just because you are eligible for a refund does not mean you have to keep it—or that you should spend it on anything you want. Before you make any decisions regarding your refund, follow these steps:
Step 1: Determine the source of your refund
- Grants and scholarships do not have to be paid back.
- Loans have to be paid back and acquire interest.
Step 2: Decide if you need the refund
- Since loans have to be paid back, determine how much of the refund you need.
- Only take out the amount you need for tuition, books, school supplies, and living expenses.
Step 3: Return your refund if you do not need it
Refunds can be returned to the Office of the Controller, Parson Hall room 100.
Direct Deposit of Refunds
At Indiana State University, the quickest and most convenient way to get your refund is by direct deposit.
To set up your account for direct deposit, follow visit Office of the Controller/Bursar Operations
Note: Students who do not sign up for direct deposit will have refund checks mailed to their student mailing address, as maintained in the Office of Records and Registration, in the student's name. Refund checks made payable to parents will be mailed to the address listed on the Parent PLUS Loan Form. All refund checks received must be used to pay educational expenses.
FAFSA
Use the following resources to learn how the Free Application for Federal Student Aid (FAFSA) gives you access to loans, grants, and work-study jobs that can help fund your education.
Types of Aid
Indiana State University assists students with a variety of financial aid options including:
- Grants
- Scholarships
- Federal Work Study
- ROTC
- Veterans Benefits
- Loans
Understanding what is involved with each aid option can be confusing. To find out more, visit types of aid.
Helpful Information and Instructions
Use the following resources to ensure you are on track for all of the financial aid you are eligible to receive.