Starting college is an exciting milestone! This new chapter of life can also bring the responsibility of managing your finances—something that might be new to you. This may be the first time that you are fully independent and responsible for things like  your tuition, meal plan, and money for your everyday needs. Financial aid can be a huge help, but it’s important to know how to manage that money wisely. We’re here to show you how to apply money management strategies to the financial aid you receive so you can make the most of your college experience without unnecessary financial stress!

Understand the financial aid offered to you

Financial aid helps cover the cost of college, including things like tuition, room and board, books, and class fees. Whether you’ve received grants, scholarships, or loans, understanding your financial aid package is the first step in managing your money effectively. Be sure you understand key financial aid terms and the types and amounts of aid that were offered to you for the current academic year. This can give you a good idea of how much you will need to budget or save–two essential parts of good money management–to cover essential college or living costs. 

Reapply for financial aid each year you’re in college

It’s essential to know that your financial aid won’t automatically renew. You will need to renew your FAFSA or state-based financial aid each year you’re in college to receive most forms of financial aid, such as federal, state, private, and institutional aid like scholarships and loans! Be sure to stay on top of important deadlines and deliverables so you can submit your financial aid forms on time and receive the aid you need!

Manage your money 

Depending on the amount of aid you receive and accept, you may get a refund check! Your school puts together an aid package and they take what they need for tuition, fees, and room and board if you live on campus. If the aid you accept–including scholarships, federal and state aid, or institutional aid–is greater than your tuition and fees, the leftover amount will be given to you as a refund. For example, if your aid totaled $20,000 per term and your college costs were $19,000, you will receive a $1,000 refund, given to you via direct deposit or a physical check. Receiving these funds, as well as your earnings from things like work-study or other part-time jobs, means that you’ll have money to spend and save! It is a good idea to prioritize educational or living expenses, but these are your funds to spend or save. Here are some tips to manage your money well and set yourself up for success:

• Create a budget. If you receive a refund, it will likely be disbursed, or deposited, to you in one large sum at the start of each term. It can be tempting to spend it all at once, but it’s crucial to create a budget that will help you spread your funds out over the entire term. 
• Spend wisely on college expenses. Books and supplies can be expensive, but there are ways to make your money stretch further! For example, knowing where to find the best deals on textbooks or checking to see if your school offers discounts or financial aid to cover the cost of technology can go a long way. Don’t hesitate to ask your financial aid office about these opportunities.
• Be cautious of personal loans. While it may be tempting to take out personal loans to cover extra expenses, it's important to remember that loans need to be repaid with interest. Only take out what you absolutely need, and explore other options first, such as working part-time or applying for additional financial aid. The goal is to graduate with as little debt as possible.
• Stay persistent. If the financial aid you’ve received doesn’t fully cover your educational or living expenses, you may need to find supplemental aid. Talk to someone in your school’s financial aid office to learn about additional aid you can apply for, and seek paid opportunities both on- and off-campus if your schedule allows it. 

Apply for scholarships

Scholarships can significantly lower college-related costs! Here’s how to make the most of scholarship opportunities:

• Continue applying for scholarships. Many students think that college scholarships are only for incoming freshmen, but that’s not the case! There are scholarships available for college students regardless of what year they’re in.  Set aside time each month to search for and apply to scholarships. Be sure to check out our free Scholarship Finder to find and apply for more than 16,000 scholarships!
• Utilize scholarships for non-tuition expenses. Scholarships can often be used for more than just tuition. Depending on the scholarship’s terms, you may be able to apply the funds toward books, housing, or technology. This can free up other parts of your financial aid package to cover additional school or living costs or to save.

Familiarize yourself with financial aid resources on campus

Effective communication with financial aid experts on your campus is crucial for managing your money and staying on track financially! Here’s what to know about two important financial aid offices at your college:

• Regularly check in with the financial aid office. A college’s financial aid office helps students understand their funding options. Think of this office as your financial advocates on campus! Make it a habit to check in with them at least once per term to ensure everything is in order. If your financial situation changes, or if you’re struggling to cover your expenses, they might be able to adjust your aid package or point you toward emergency funds or additional scholarships.
• Understand your bill from the bursar's office. A college’s bursar's office is where tuition billing and payments are processed. Review your bill each term to make sure your financial aid has been properly credited to your student account. If there’s a balance due once financial aid has been applied, you can work with the bursar's office to explore payment options, such as a payment plan. Never ignore a bill, as unpaid balances can lead to holds on your account, preventing you from registering for classes or receiving your transcript.

The money management skills you develop in college will come in handy for the rest of your life! By connecting your financial aid awards to smart money management strategies, you can make the most of your time in college without the burden of financial stress. These skills are also crucial to ensure that you reap the financial benefits of a college degree. Your education can unlock huge earning potential for your life and can help you build a foundation of generational wealth for your family and community.

If you have more questions about money management or financial aid, Get Schooled is here to support! Text #Jobs to 33-55-77 to chat with one of our advisors. If you're using a mobile device, click here to have the text message set up for you!