Could You Get In-State Tuition at an Out-of-State School?

Ways you can save money on tuition and fees
According to the College Board, in-state tuition at a public four-year university for the 2016-17 academic year runs an average of $9,650; if you’re an out-of-state resident at the same school, tuition runs $24,930. But it is possible for an out-of-state resident to pay closer to that in-state tuition rate.

“A number of regional, state and college-specific programs allow some students to qualify for in-state or heavily discounted tuition at out-of-state public schools,” writes Kaitlin Pitsker of Kiplinger Personal Finance.

Regional level
There are four regional compacts that exist in which certain out-of-state residents can apply for in-state tuition. The Southern Regional Education Board’s Academic Common Market (Alabama, Arkansas, Delaware, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Oklahoma, South Carolina, Tennessee, Virginia and West Virginia) and New England’s Regional Student Program (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont) allow for this as long as the student pursues a major that isn’t offered in his or her home state.

Meanwhile, the Midwest Student Exchange (Illinois, Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota and Wisconsin) and Western Undergraduate Exchange (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming) also offer steep discounts to a number of students across the country.

In addition to the stipulation regarding majors for the first two programs, there may be school-specific restrictions as well.

State level
Individual states may also have reciprocity programs. For example, the in-state flexibility could extend to an entire neighboring state or perhaps a few select bordering counties in a neighboring state. Again, the benefits of such programs vary, but in many instances the state-level programs are more advantageous than the regional compacts.

College level
Many colleges also offer discounts in order to attract students from out of state. These often are based on GPA and test scores.

Special circumstances
Children of parents who are in the military or work in public service are often eligible for tuition flexibility. Other times, nonresident fees are waived for children of alumni or those with strong academic credentials.

The bottom line is that you should never take that glaring “out-of-state tuition” figure at face value. Research thoroughly and talk with a guidance counselor, school registrars or financial advisers in order to get the best education for the best value.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

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How online banking can keep you from overdrawing your account

Seeing red? Prevent a negative balance in your account by following these simple tips, many of which can be achieved with a simple enrollment in online banking.

TRADITIONAL BANKING SOLUTIONS
Opt out of overdraft coverage.
Debit card transactions cause more overdrafts than any other transaction type, according to a 2014 report from the Consumer Financial Protection Bureau (CFPB) recently published by NerdWallet staff writer Spencer Tierney. Luckily, since 2010, consumers have had the option of opting out of overdraft coverage, a service that declines debit card or ATM transactions when your account contains insufficient funds. The alternative would be incurring an overdraft fee from your financial institution for the insufficient funds, as well as a returned item fee from the entity receiving your money. Opting out eliminates the additional fee or stops you from making a purchase that would send your account into the red.

Maintain a buffer balance.
Most overdrafts occur due to relatively small sums, often $20 or less. That means you can avoid a lot of overdraft fees by keeping a cushion in your checking account at all times just in case a deposit is delayed or you make a mistake in your register,” says Marcie Geffner of Bankrate.com. U.S. News contributor Simon Zhen recommends a buffer amount equal to the sum of one month’s recurring expenses (rent, utilities, fuel and groceries).

Link an account or line of credit.
Your financial institution may offer the option of linking a savings account, credit card or specified line of credit to your account that would cover an overdraft if needed. “When a transaction causes a negative balance, a [financial institution] will automatically perform an overdraft protection transfer from the linked account to cover the overdrawn amount,” Zhen explains. “Note that [financial institutions] may charge an overdraft protection transfer fee. With a line of credit, you’re simply borrowing from this credit line and you’ll be subject to interest charges, just like any other loan.”

ONLINE BANKING SOLUTIONS
Use online bill pay rather than auto pay.

Automatic bill pay is a great service as far as convenience goes, but it can wreak havoc on maintaining a budget. Instead of setting up auto pay with billers, utilize online bill pay through your financial institution’s online banking. Making the payments manually gives you control over the transaction, so you won’t have to worry about any forgotten expenses pulling your account balance below zero. It’s also a better option than mailing in a physical check, which could take weeks to clear.

Dutifully monitor spending.
Another benefit of online banking is the mobile aspect. Today you can check your account balance anywhere, anytime—sometimes without even manually signing in. Taking full advantage of that increased potential for vigilance can save you big.

Create account alerts.
If you find manually checking your balance to be a bit tedious, automate the process instead. Sign up for alerts through your online banking, which will notify you via email or text message anytime a certain event occurs, such as unusual account activity, an overdraft or falling below a certain amount. Some platforms will even allow you to do this in real time. “When you’re alerted to an overdraft, you may be able to deposit money in time to avoid the overdraft fees,” Zhen says.

By simply being observant and taking advantage of the tools and resources provided to you by your financial institution, you should be able to circumvent overdrafts and their corresponding fees.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Direct Subsidized and Direct Unsubsidized Loans for Students

The difference between these two types of student loans

If you or a family member is in the process of applying to schools and seeking information about the various ways to cover tuition and the associated costs, you may have already learned that you can choose between applying for loans that are either subsidized or unsubsidized.

There are key differences between these two types of loans that you should learn to make sure you choose the type that better suits your financial needs.

One of the things that make the loan application process slightly more confusing is that different people or organizations may use different names when referring to the same loan. Direct Subsidized Loans and Direct Unsubsidized Loans are sometimes called Stafford Loans or Direct Stafford Loans, respectively, so if you’ve heard those terms, you should be aware that they are the same and not two additional loans out of four different types being discussed. Regardless of what these loans are called, when trying to figure out which type of loan is which, the most important criterion to look at is whether the loan is subsidized or unsubsidized.

Both loan types are offered by the U.S. Department of Education to eligible students who attend participating schools. They can be used at four-year colleges and universities, community colleges, and trade, technical and career schools.

Qualifying for either type of loan requires the student to be enrolled at least half time at a school participating in the Direct Loan Program. Typically, the student’s chosen program must be one leading to a degree or certificate.

Direct Subsidized Loans offer students slightly better terms. This is because they are intended to go to students with financial need.

The website run by Federal Student Aid, an office of the Department of Education, defines financial need as “[t]he difference between the cost of attendance [COA] at a school and your Expected Family Contribution [EFC],” and states, “While COA varies from school to school, your EFC does not change based on the school you attend.”

Although your EFC will not change depending on your chosen school, your school will be responsible for determining the amount that you can borrow. That amount may never exceed your financial need, however.

The biggest advantage of a Direct Subsidized Loan is that the Department of Education pays the interest on the loan while the student is still in school at least half time. The federal government will also pay the interest on the loan if the student has postponed his or her loan payments with an authorized loan deferral. Furthermore, the six months following the student’s graduation are considered a “grace period,” during which time the federal government continues to pay the loan interest. This is intended to make it easier for students to make payments while searching for a job.

Although the party responsible for paying the loan interest differs, the interest rate itself does not depend on the loan type.

“As of 2013, interest rates charged for Federal Direct Loans began to be tied to the 10-year Treasury note, with an additional margin added on to cover expenses,” states Mark P. Cussen, CFP, CMFC, AFC, in an article for Investopedia. “They do not depend on the borrower’s credit score.”

In order to qualify for a Direct Subsidized Loan, the income level of the student’s family must not be above certain levels. The exact criteria that define low family income and sufficient financial need are detailed in the Free Application for Federal Student Aid (FAFSA). More information about the regulations and processes of applying for student aid with FAFSA can be found at https://fafsa.ed.gov.

While Direct Unsubsidized Loans don’t have an income requirement, the student is responsible for the interest accrued during all periods. One advantage of Direct Unsubsidized Loans is that they are available to graduate students, which isn’t the case with Direct Subsidized Loans. A further advantage is that it is possible to take out more money with a Direct Unsubsidized Loan, so students with very large educational costs to cover may find it necessary to use a loan that is unsubsidized.

The cost of education is rising at an alarming pace, but thankfully there are many financial tools, including Direct Subsidized and Direct Unsubsidized loans, to help students and their families cover it. To delve more deeply into the details of these loans and explore the wealth of information available online for students and their families in the application process, visit https://studentaid.ed.gov/sa/.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

What to Know About Trading in Your Existing Car

The steps you should be taking as you head to the dealership
Are you thinking about trading in your current car for a new one? Before rushing to the dealership and signing any papers, there are a few things you should consider.

What is your current car’s appraisal value?
“To determine [whether] you’re being offered a reasonable price on your trade-in, you first must know what your car is worth,” says Edmunds senior consumer advice editor Ronald Montoya.

You can do this via any appraisal resource, like Edmunds’ True Market Value tool or Kelley Blue Book (KBB). Be honest with yourself when assessing options and condition, or you may find yourself with a vastly inaccurate assessment.

What does the dealership say?
Next, you will want to take your current vehicle to a dealership to have the experts there appraise it and give you a trade-in amount offer. This number will not be the same at all dealerships, as it depends on various factors, including current inventory levels, probability of sale and current trade-in promotions.

How much do you still owe on your vehicle?
Find out how much you owe on your current car by requesting the payoff amount from your lender.

“This is the amount it will take to pay off your existing loan, and it may be different from any outstanding balance listed on your statement or [in your] coupon book. This difference may be because of a prepayment penalty or the way interest is calculated,” the Consumer Financial Protection Bureau website explains.

Compare that amount to the appraisal quote and the trade-in value given to you by the dealership. If you still have equity in your vehicle (that is, you are not “upside down” — owe more than your car is currently worth), you can use that to your advantage.

Can you negotiate?
As previously mentioned, don’t settle for the first number spit out at you. The first offer always starts low, as dealerships expect buyers to negotiate. Use your original appraisal from Edmunds or KBB as a basis for what is fair and see if they’ll match that number. If you are upside-down on your current car, see if they will give you a bit more for your trade-in if you plan to get your new car there that day. However, be sure to keep negotiations for your trade-in and your new car separate. In most cases, your trade-in can be used as a form of down payment and will be written into your new car contract as a credit against the price of the car.

Following these steps will set you on the right path to having a positive vehicle trade-in experience.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.