Wednesday, March 4, 2015

Spring Cleaning Series: How to Organize Your Study Time More Efficiently

Photo Credit
Spring is here…almost.  Even though the weather hasn’t joined in on this concept, spring breaks are fast approaching.  Use this time to get organized so when you return to classes it will be smooth sailing to finals.  Today as well as the next three posts will help you organize and get you on the right track!  First, let’s start by making your time more efficient.
One of the best pieces of advice I received during my first year of law school was to treat school like a workday. Wake up early, exercise or stretch, take a shower and eat a good breakfast. Go to school or your home office and start work! Review for the first class. Go to class, and continue to study between each one. After classes, study more until you have reached the end of a workday. Grant yourself time to eat dinner, exercise, and do whatever you need to do to wind-down for the evening. Finally, get a good eight hours of sleep.  Believe it or not, but this is possible to do.
First, figure out your modus operandi. Are you a morning person or a night person? Are you more motivated after an afternoon nap? Establish your most productive hours and then follow through.  Take your version of “workday hours” and break them into one-hour increments.  Since you know you have to go to class, fill in those hours first.
Next, review your syllabi for your classes.  If you haven’t figured out by now,  take time to determine how long it takes to read ten pages of text, how long it takes to brief a case, how much time on average you need to review notes for class, and which classes need extra review.  To help you, try out the free app toggl to track your time doing different activities.  Then, every Sunday morning map out the week by filling up the remaining “workday” slots.
To make sure you achieve your time goals, don’t forget to schedule random moments – the time it takes to get to class, the time to get to your study area and unload, a break or two, and your lunch hour.  For example, if you plan to go to the library after a class that ends at 10 and read for an hour, your schedule may say:  class 9 -10, library reading 10:15 -11:15.  Also, write down context with the assignment to help you get started right away.  Going back to the example of library reading, you might write down:  10:15-11:15 reading 10 pages assigned for torts on Thursday and corresponding supplement.  Finally, group simpler tasks together to knock them out quickly.  You’ll free up more time and accomplish a lot, making you feel more energized and focused for difficult tasks that take more time.  Be sure to check off the time slots you complete to keep you motivated.
Further, avoid time-wasters such as social media sites that can take away hours of your time without you realizing it.  Try using the free versions of Rescue Time or Minutes Please to limit or even restrict your social media access.

You Might Also Like:

Until Next Time,
Jenny L. Maxey

Wednesday, February 25, 2015

Student Loan Series: Tax Opportunities You May Be Missing


Photo Credit
The tax filing deadline is creeping upon us.  If you’ve made student loan payments, make sure you claim those credits and deductions for which you qualify.  Each one could mean a reduction in the amount owed or even a tax refund!
For those enrolled in school during the last tax year, there are a few credits you might take.  The Lifetime Learning Credit is available to you, your spouse, or dependents if enrolled at an eligible educational institution and were responsible for paying college expenses.  The credit is for a 20% credit for up to $2,000 on a $10,000 in tuition expenses.  This credit may drop your tax to a zero balance, but any leftover credit is not refunded.  An exciting requirement is that you don’t have to be in undergraduate school to receive the credit and may have only taken one course to qualify.
The American Opportunity credit allows for a credit of up to $2,500 on the first $4,000 of qualifying undergraduate college education expenses.  There is a phase-out range based on the total amount of income, which you can review here.  The credit is currently only available for the years 2009-2017, so make sure you use it before you lose it!  Further, up to 40% of the credit is refundable, which means if you have a zero balance, then you may receive some of this money in a tax refund!
There are two deductions which you may be able to take advantage of whether you’re in school or out.  The first is a deduction for up to $2,500 in qualified interest payments made during the tax year.  The second deduction is for up to $4,000 in qualified tuition and fee payments made during the tax year for you, your spouse, or dependents.  Both of these deductions are subtracted from your reported income, which can change how the amount you owe is calculated. 
Requirements for the credits and deductions must be met, so make sure you read the fine print to avoid facing issues with your filings.

Until Next Time,
Jenny L. Maxey

You Might Also Like:
5 Financial Aid Mistakes to Avoid at the Beginning of the Semester 

Wednesday, February 18, 2015

Student Loan Series: Transferring Affects Your Student Loans

Photo Credit
The decision to transfer schools might cross your mind, and can become something of a conflict of interest. Transferring schools can allow you to trade-up, so to speak. If you attended a school with a mediocre reputation, poor job market location, or expensive tuition, you might consider a transfer to a school that will boost your objectives.  However, keep in mind that transferring may also affect your financial aid.  And, some of the changes may be affected based on when you decide to transfer.  Here’s how.
Regardless of your transfer date you’ll need to resubmit your FASFA form.  Your financial status and eligibility to receive financial aid shouldn’t be affected by a change in schools.  This also means that your expected family contribution (if in undergrad) will also remain the same.  Further, make sure you check the amount of credits that transfer to remain eligible for financial aid under the satisfactory academic policy.  Federal subsidized loans can also be affected greatly if you are transferring from a four-year to two-year program.  Any campus-based aid provided by the previous school will not be transferred.  Further, you may receive less institutional aid than you may have received at your previous school because each school is different, may have differing amounts of available money to give out, and most campus aid is distributed on a first-come, first-served basis.  On the plus side, if your new school is cheaper you may receive a smaller financial aid award than your previous school, but this only means that the cost of attendance is cheaper and the amount of loans you have to repay will be less!
Transferring Mid-semester:  Your financial aid is “earned” after 60% of the semester has been fulfilled.  If you leave before this is met, the school will return unearned aid to the federal government.  This can affect how much you’re able to borrow at your new school.
Transferring Mid-year:  FASFA forms are for the academic year; so a mid-year refiling means that most of the financial information will be the same and your eligibility for financial aid should be the same as well.  However, depending on how much you earned at the previous school, you may qualify for less financial aid as you did as a first-time or returning student.
Transferring For a New Academic Year:  If you don’t know where you’ll be attending school for the next academic year, then your FASFA form will not reflect the school by the deadline (you can always add potential schools on your filing), but this could mean you are awarded less aid than had you filed on time.
Keep in mind your previous school’s existing loans.  Those loans will begin their grace period (or repayment based on the terms) as soon as you drop to below full-time/half-time enrollment (based on the terms).  Therefore, it is important that you contact the lenders to work out a continuing education deferment or other repayment option.

Until Next Time,
Jenny L. Maxey

You Might Also Like:
5 Financial Aid Mistakes to Avoid at the Beginning of the Semester

Tuesday, February 3, 2015

Student Loan Series: Private Lenders Making Changes

Photo Credit

Federal loans aren’t the only hardship for college graduates.  Many students also relied on private student loans to finance their education.  Typically, private lenders are stricter on repayment terms, offering little to no grace period, no flexible repayment options, rare deferments, and capped forbearances.   And while for many student loans, these strict standards remain in place, other private lenders are willing to make changes to help make repaying debt more manageable in today’s economy.

For instance, Wells Fargo – a private lender with borrowers in $11.9 billion outstanding student loan debt – recently announced that it will lower interest rates for borrowers meeting certain requirements.  Staff will review supporting documentation proving financial hardship including paystubs, other types of income documentation, and any other documentation showing the borrower’s full financial picture.  If you are a Wells Fargo borrower and believe you may qualify for a lower interest rate, you can call 1-800-378-5526 or visit this website.  In addition to lower interest rates, it has also been reported that this month (February 2015) Wells Fargo plans to extend repayment periods.  These changes have the potential to save Wells Fargo borrower’s thousands in interest payments.

Another private lender, Discover Financial Services is rumored to be making similar changes.  Other than lowering interest rates for some of its borrowers, the hardest-hit borrowers may also be forgiven for a portion of their outstanding debt!  The company, which holds $8.3 billion in outstanding student loan debt, is still working out the details.

     If you’re a borrower with a different private company, continue to check with your lender.  These changes mentioned above could mean less defaults and consistent repayments for these lenders, which may interest other private lenders to make changes as well.


Until Next Time,
Jenny L. Maxey

You Might Also Like: