Financial Matters: The A to Z of College Finance

A is for the checking account you’ll want to open. If possible, choose a bank with locations near both home and campus, and make sure parents can easily transfer money when needed. This makes day-to-day spending much easier to manage.

B is for budget. Create a realistic one that includes everyday spending and a cushion for unexpected expenses. 

C stands for credit rating. Be careful about carrying balances that are hard to repay. Ideally, pay off your credit card in full each month to avoid interest and build strong credit over time. Good habits now make a big difference later.

D is for debt. While not every student borrows, about half of college graduates today leave school with loans, typically ranging from $30,000 to $35,000. Understanding how much you are borrowing and why helps you make more informed decisions.

E is for Expected Family Contribution, now called the Student Aid Index (SAI). Despite the name, it was never the exact amount you would pay. It’s simply a number colleges use to determine financial aid eligibility, and it may look different from what your family actually contributes.

F stands for flexible-spending accounts. Many colleges allow part of your meal plan to be used at campus cafés or nearby vendors. Parents can often add money as needed, giving students both structure and flexibility.

G is for grants. These are typically based on financial need, reduce the cost of college, and do not need to be repaid. They are one of the most valuable forms of financial aid.

H is for health insurance. If a student is not covered under a family plan, most colleges offer their own insurance options. Make sure you understand what is required before arriving on campus.

I is for the internet. It’s a useful starting point for scholarship searches and loan information. Be selective and stick to reputable sources to avoid misinformation or scams.

J is for jobs. Even without work-study, students can find campus or local jobs. Working 8 to 12 hours a week can provide spending money while also helping build structure, responsibility, and time-management skills.

K is for kitchen. Living in housing with a kitchen can help reduce food costs and give students more flexibility and independence.

L is for loans. Federal student loans should generally be considered first before private loans, as they offer more flexible repayment options, borrower protections, and lower interest rates.

M is for meal plan. Choose a plan that realistically matches how often you’ll eat on campus. Many students overestimate how often they’ll use it, so it’s okay to start smaller and adjust later.

N is for need, the difference between the cost of attendance and your Student Aid Index (SAI). This number helps determine the amount of need-based aid a student may receive.

O is for overseas programs. Most colleges offer study abroad options, generally for the same cost as studying at your home campus.  Travel costs are usually additional, but the experience can be priceless!

P is for PLUS Loans, federal loans that parents can use to help cover remaining college costs. Families should review repayment terms carefully before borrowing.

Q stands for questions. If your financial situation changes or if something doesn’t make sense, reach out to the financial aid office. There may be options, including appeals.

R is for reduce. Look for ways to lower costs, such as using AP credits, graduating early, or taking classes at a community college. 

S is for scholarships. Scholarships are gift aid that reduces college costs. They may be based on academics, talents, or specific interests.

T stands for telephone. Phone plans can quietly add up. Choose one that fits your actual usage and avoids unnecessary costs.

U is for unpaid positions.  While these won’t fund your college expenses, they can add immeasurably to your resume.

V is for volunteer. Colleges offer many ways to get involved in meaningful service through campus organizations and community partnerships.

W is for work-study. Eligibility is determined through the FAFSA. These jobs help students earn money, and earnings are treated favorably in future financial aid calculations.

X stands for extras. These are the small, often overlooked expenses, books, supplies, and social activities. Planning for them makes a difference.

Y is for you.  While college is expensive, remember that college graduates currently earn over a million dollars more over a lifetime of work than those with only a high school diploma.

Z is for zoom. Finishing in four (or fewer) years can significantly reduce total cost. Nationally, only about 60% of students graduate within six years, so staying on track academically matters.