3 Money Tips for Future College Students
You’re finishing up your college applications right now. In just a few months, you will get your acceptance letters, which will help you finalize your decision on what campus you’re going to join next fall. This monumental decision is just around the corner.
While you’re thinking about your college prospects, you should think about the financial implications of your approval. How are you going to handle tuition? How are you going to pay for your essential equipment? How can you prepare for unexpected expenses while you’re away from home? Learn these financial tips before you actually accept.
1. Apply for FAFSA as Soon as Possible
You should complete the Free Application for Federal Student Aid to see whether you qualify for grants, loans and work-study programs. Even if you’re unsure that you will qualify for these forms of financial aid, it doesn’t hurt to fill out a form and see. You just might be eligible for some aid, which can make covering the steep costs of college tuition, housing and supplies a little easier.
Now, the official federal deadline to fill out your FAFSA for the 2024-2025 year is June 30th, 2025. However, you may not want to wait that long to fill out the form. Certain colleges and even states have earlier deadlines to submit your FAFSA. So, if you miss those earlier deadlines, you will be limiting some of your options for aid.
Look into the FAFSA deadlines at the colleges that you’re interested in attending. You will want to submit your form before then. The form will be available for future students as of December 2023. So, get ready to fill it out and do it soon!
FAFSA isn’t a one-time application. You should fill it out every year that you intend to attend college as a full-time student.
2. Use a 529 Plan for More Than Tuition
Did your family set up a 529 education savings plan for you? Then, you’re lucky! A 529 education savings plan is a tax-advantaged savings account specifically designed to save money for future educational expenses — particularly expenses related to college. As the benefactor, you can make a withdrawal from the plan in order to pay for your tuition costs (of course, after subtracting any student aid that you accept).
Don’t just use those savings for college tuition. These are some examples of the other eligible expenses you can use the savings for:
- College housing
- Meal plans
- Textbooks
- Essential electronics (laptops, printers, etc.)
These savings shouldn’t sit in the account, gathering dust. They should be put to use. So, spend them on whatever eligible expenses you need to cover.
3. Protect Your Laptop
You’re going to need a functional laptop while you’re away at college so that you can conduct research, type assignments and attend online classes. Your laptop will also be your source of entertainment while you’re bored in your dorm room, letting you watch movies, stream music and play games. And you can use it to stay connected with anyone outside of college — like your parents who need frequent video chats to check up on you and make sure that you’re okay. Your laptop will be your lifeline at this time in your life.
So, when you’re purchasing your laptop, you should consider signing up for an extended warranty plan that will help you cover the costs of sudden repairs. You’ll be relieved that you have this type of protection when something goes wrong, and you need to fix your laptop right away.
If you skip the extended warranty plan, you should at least have a small emergency fund sitting in a savings account. You could make a withdrawal from the emergency fund to cover a laptop repair out of pocket. Without a warranty plan or an emergency fund, you might not be able to handle the sudden expense on your own. In this case, you could apply for a personal line of credit loan — as long as you meet requirements like a steady stream of income. A personal line of credit loan could give you enough funds to pay for the repair and get your laptop back in working order.
A personal line of credit loan shouldn’t be a solution for all situations. Check out all of the situations when to consider applying for a line of credit to see when it’s an appropriate solution. This could help you in the future.
Attending college is no small expense. So, follow these financial tips before you even get to campus!