Many of you who graduated in May 2009 are now entering the repayment stage of your federal student loan. While often dreaded, there are different tools and plans available to make paying off your student loan affordable, simplified, and will minimize your total interest cost. 

Standard repayment provides level monthly payments that cover accruing interest and a portion of principal. This is usually the most economical option as you will accrue the least amount of interest.

If you need to have lower monthly payments, you have a few different options: Extended Repayment, Graduated Repayment, Income-Sensitive Repayment and Income-Based Repayment. These will all provide a more manageable monthly payment, but you will pay more interest over the long run and not everyone will qualify. Find out more about all these different plans at Sallie Mae^®.

As for private student loans, eligibility repayment plans may vary by loan type, loan balance, and disbursement date. Be sure to talk to your lender about your options!

If you haven't entered repayment yet, Sallie Mae has a Loan Repayment Calculator to help estimate what your monthly payments will be under all these different payment options, helping you choose which will be best for you!

If you have a little extra cash left over each month, I would highly recommend prepaying your student loan! As long as your lender doesn't penalize you (most shouldn't but you definitely need to check first), these extra payments you make are applied to the principal of the loan, after the accrued interest and any outstanding fees (if applicable) are satisfied. If you reduce your principal — even by a little — you reduce the amount of interest you have to pay over the life of your loan. Basically, the sooner you pay off your loan, the less time it has to build up interest and the less money you owe!

And don't forget your old Upromise^TM account! Not just for high school students anymore, Upromise Loan Link^® can help you earn rewards on everyday purchases to pay down your Sallie Mae loan.

And not matter what, don't panic. With a little bit of planning you can soon be on your way to building credit, managing your debt and being in charge of your own financial future!

You may know how you're going to pay your tuition, but you're not out of the woods yet! According to The College Board, students spend an average of $1,000 a year on books and supplies, making this a huge expense! Could e-textbooks and rentals cut down on some of this?

E-textbooks can generally be accessed online or downloaded to laptops, so there's no need to buy anything like the Amazon Kindle or Sony Digital readers. Since the majority of students have their own computer or easy access to one, this seems to be a more affordable option.

One popular place to get e-textbooks is CourseSmart.com, which works with 12 of the largest higher-education publishers to offer about 7,000 titles. The company says its e-textbooks on average cost about half the price of new print copies.

One perk of CourseSmart is that texts are searchable by key words or phrases. Students can also copy and paste up to one page to create notes and print up to 10 pages at a time. Another function lets students highlight passages as they do with print textbooks.

Cengage Learning makes its titles available electronically at iChapters.com for half the price of print editions.

One catch with CourseSmart and iChapters is that students only have access for a certain time, usually around a semester or however long the book is intended to be used. So, students won't be able to refer electronically to certain passages later on.

Another huge drawback to electronic textbooks is portability. Unless you have a light laptop, you probably won't want to drag your computer to classes all day.

If you prefer a textbook you can hold, why not try renting?

Textbooks are typically leased for a semester or longer, and costs vary depending on factors including the book's popularity.

Chegg.com is an extremely popular site and says its rentals can save students 65%–85% of the cost of buying books new. The company tries to track down any requested book that isn't already in its catalog of 1.6 million titles. And, while students do pay to have books shipped to them, the orders come with prepaid envelopes to make returning books easy.

BookRenter.com, which generally works the same way, sends students e-mail or text message alerts when due dates are approaching. It also gives students the option to buy a book at the end of the rental period. Any rental prices already paid are deducted from the purchase price.

Cons for renting are that you don't get to keep your textbook (unless you can buy it) and that it needs to be kept in good condition — no highlighting for you! Those are two things you can't ignore but not necessarily deal breakers. The one math class you're required to take freshman year when you're a music major? You probably won't need to highlight passages or keep the book for future reference.

Whether you prefer renting or buying a digital version, both options can save you money! Do you have any unique or surprising tips on saving money on school supplies?

Did you know you may be able to avoid out-of-state tuition rates in a neighboring state through reciprocity agreements? These pacts between states offer each other's residents discounted or in-state tuition rates!

The Western Undergraduate Exchange provides reduced tuition rates for two- and four-year schools for out-of-state students in 15 western states, including Alaska, California, Hawaii, Idaho, Nevada, Washington, and more! Through the program, residents are eligible for scholarships that allow them to pay 150% of the in-state tuition rate — an incredible savings!

Similarly, Minnesota, North Dakota, South Dakota, and Wisconsin have a reciprocity agreement that reduces or eliminates nonresident fees for students living in these states.

The Midwest Student Exchange Program provides discounts to students in Indiana, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, and Wisconsin. With more than 140 participating colleges and universities, public institutions agree to charge students no more than 150% of the in-state resident tuition rate for specific programs, and private institutions offer a 10% reduction on their tuition rates. Participating students will typically realize savings between $500 and $3,000 annually, which can make a huge difference!

Before you resign yourself to a second- or third-choice school that's in-state, talk to your guidance counselor or a financial aid officer and find out what options you have!

For any student, getting into college involves a lot of preparation and work — standardized tests, letters of recommendation, admissions forms, financial aid, and so on. If you are a "first-in-my-family" student, preparing for college could involve jumping even more hurdles.

College preparation

Preparing for college is a long process that should begin as early as junior high, according to many experts. If your parents attended college, they can give you guidance on how to navigate this process — what classes to take, how to manage all the tests and forms, how to pick a school, and so on.

But if you are the first in your family to attend college, you might not have that kind expertise available at home. Be sure to speak to your high school guidance counselor who can provide you with advice and help!

Financial barriers

The cost of going to college has been outpacing inflation, making it more expensive for everyone to attend college. For some students, the price seems to put a college education beyond their reach. If you are one of those students — especially if you are the first in your family to attend college — you may need reassurances that price isn't a barrier.

Experts report the best way to overcome financial obstacles is to develop a college financing strategy well in advance. Be sure to check out Sallie Mae's Education Investment Planner and Free Scholarship Search to help you get started!

Family obligations

If you are from a low-income family, you may feel pressured to choose between attending college or supporting your family. Part-time classes might be the way to go, just be sure manage your time well.

If you defer college to work, you can always go back to school! Continuing education is tailored for those over age 24.

There's time to fulfill family obligations and to earn a college degree. In the end, though, a college education could benefit your family by improving your chances to get a better-paying job. So weigh your options carefully and never sell yourself short!

I only know a handful of people who's career has any correlation to what they studied in college.While this isn't necessarily a bad thing, it's always good to assess your personality, skills and interests to chose a major, and eventual career, that's right for you. The sooner you start, the sooner you can retire, right??? Here are some tips and tools to help you get started:

Personality

Your personality traits can determine which careers are best suited to you. For example:

• Are you shy or outgoing?
• Patient or impulsive?
• Good with children or adults?
• Do you like animals or machines?

For a closer look at yourself, take a personality inventory — a questionnaire that asks how you would think, act, and feel in specific situations.

• The most popular personality inventory is the Myers-Briggs Type Indicator® (MBTI). Unofficial versions of this personality inventory are available online and can be completed in 30 minutes. Your answers to the multiple-choice questions will be evaluated and you'll receive an explanation of your personality type.
• PersonalityType provides the most abbreviated version and also presents popular career options.
• Humanmetrics offers a longer, more personalized version.
• The official version of the MBTI is available in print. This official test is administered by qualified trainers, and trained professionals evaluate the answers. Check with a guidance counselor to see if this test is available.

Based on what you find in your personality inventory, you might realize that the job of your dreams may not be perfect after all. On the other hand, what you learn about your personality, coupled with your skills and interest, could point you to your perfect role in life.

Interests

What makes you happy? If you had a spare moment, what would you do?

• Do you like to paint or draw?
• Take dance classes?
• Like the mental challenge of chess?
• Do you love to read?
• What are your hobbies?

Your answers to questions like these can say a lot about you. Your interests and skills offer additional insight into your personality and what you really love to do. And knowing that is important when you start thinking about your future.

Another way to understand your interests and how they relate to your career is to take the Strong Interest Inventory®. If this is not already part of your high school's career or college prep curriculum, check with your guidance counselor.

Skills

What are you good at?

• Do you excel in sports?
• Do people call you when they're having computer problems?
• When it comes to literature, do you see beyond the writing and into the meaning intended by the author?
• Can you take a motor apart, put it back together, and have no extra parts left over?

Beyond just answering these and similar questions by yourself, you can learn more about your talent for career-related (or "vocational") skills by taking an aptitude test.

One particularly thorough test is the Armed Services Vocational Aptitude Battery (ASVAB). It is designed to measure your aptitudes while you're in high school.

As a bonus when you take the test, you'll get Exploring Careers: The ASVAB Workbook. It will help you interpret your ASVAB test results.

The ASVAB includes eight short tests that cover:

• General science
• Arithmetic reasoning
• Word knowledge
• Paragraph comprehension
• Mathematics knowledge
• Electronics information
• Auto and shop information
• Mechanical comprehension

Note: Taking the ASVAB does not mean you're enlisting in the Armed Services.

While the U.S. Army, Air Force, Navy, Coast Guard, and Marines use the test to place recruits in a military career field, the Department of Defense, in cooperation with the Department of Education, developed a version for high school students.

Many high schools administer this test as part of their college preparation routine. If the test is not available at your school, talk to your guidance counselor to arrange a test date. 

Above all, don't forget to talk to you parents, friends, teachers and guidance counselor!

Last week I explained what the Expect Family Contribution (EFC) was. Today you get to learn about how to avoid having a higher EFC than you should!

Hundreds of articles have been written that recommend gaming the FAFSA by appearing to have fewer financial resources than you do to get more aid. I don’t recommend you do this.

Aside from the ethical and legal aspects of shifting assets and income to manipulate the system, almost anything you do to affect your EFC will have an impact on your personal income, assets, and taxes.

What about shifting assets?

For example, you may decide to spend all your personal savings on a new car, hoping this would lower your EFC by lowering your assets.

But would spending $30,000 on a car mean your child would get $30,000 more in financial aid? No. Only a maximum of 5.64% of your assets are counted in the financial aid formula.

This would be like giving up $30,000 for $2,260 (at most) in additional financial aid (some of which will be student loans).

Not only would you be trading real dollars you have for pennies in aid, if you need the money, you won't have it. You’ll have to borrow the funds and pay them back with interest.

Common sense principles

The following common sense principles will affect how financial aid works for your family and keep your EFC low.

Don't overpay your share. Some parents believe that they are 100% responsible for financing their child's education. This is not the view of the federal government or college financial aid offices. They believe that the paying-for-college responsibility rests with:

1. The student first
2. Parents second
3. College, including financial aid, last

The financial aid formula assumes that students will contribute a large percentage of their income and assets to pay for each year of college.

If parents pay for everything and let their children keep their savings accounts untouched, they will be penalized, because the formula will keep assessing the same high percentage against the child's assets every year.

Build your 401(k) and IRA accounts. Under the federal and institutional methodologies, your retirement accounts are not considered assets that can be used to pay for college. Plus, under current tax laws, you may withdraw money from these accounts and use it to pay tuition without paying a penalty.

Check your pride at the door. Some families are embarrassed to reveal financial information to a total stranger, but this kind of pride could cost you. While financial aid calculations seem very mechanical and pre-determined, they are not. Your financial aid administrator is a professional who can can strongly influence the process.

If you have suffered a setback — especially one that is not reflected in your FAFSA or past year’s taxes — let your financial aid officer know. He or she can modify the results of the financial aid calculations. Financial aid administrators are there to help and can save you money if you let them.

The bottom line:

Don't waste time with strategies that may result in tiny increases in financial aid (which may be offset by higher taxes or lower asset levels) and that, at worst, could result in fines or jail time. Instead, focus on getting your taxes done early and correctly.

The Expected Family Contribution, or EFC, is the amount of money your family — including you and your parents or guardian — is expected to pay toward the cost of one year of education.

Typically, the lower your EFC, the more financial aid you will receive. Factors such as family size, number of siblings in college, savings, and income — all of which are included on the FAFSA — are used to calculate your EFC.

There are three formulas to calculate the EFC:

•     One for dependent students
•     One for independent students without dependents other than a spouse
•     One for independent students with dependents other than a spouse

How the EFC is used

Once your FAFSA is processed, your family will receive a Student Aid Report (SAR) that contains the official EFC figure. The same information is also sent to the schools you listed on the FAFSA.

Next, the financial aid administrator (FAA) will determine your financial need. Need is defined as the difference between the cost of attending college and your EFC. If there is a difference, your family may be eligible for aid.

   Cost of Attendance
– Expected Family Contribution
= Financial Need

Based on your financial need, the FAA will prepare your financial aid package. The financial aid award letter tells how much financial aid you could receive through federal, state, and school-based programs if you accept admission at a particular college.

Formulas

Your EFC may vary from one institution to another, and is generally calculated using one or both of the nationally accepted methodologies.

Federal EFC methodology

• Based on a formula established by the federal government.
• Takes into account family income, assets, size of current household, and the number of family members currently attending college.
• Determines eligibility for federally-sponsored financial aid such as Pell Grants, Perkins and Stafford loans, and Work-Study programs.

Institutional EFC methodology

• Used by institutions and organizations to determine a student's eligibility for institutionally-based, private aid programs.
•  May vary from college to college.
•  Additional factors in a family's financial situation are sometimes considered to determine a student's eligibility for institutional need-based aid.
•  May be used instead of, or in addition to, the federal EFC to determine eligibility to receive financial aid from college or private funds administered by the college.

There is more to college expenses than just tuition and housing bills. When you estimate how much college will cost, consider the direct and indirect costs. Everything from books to supplies to trips back home adds to the overall price.

To estimate how much college costs, look at the direct and indirect costs.

Direct costs

• Tuition: If you've selected a state school, the tuition (cost of classes) will depend on your residency status. The difference between in-state and out-of-state tuition can be thousands of dollars a year. Some schools base tuition on the number of credit hours taken in an academic period. Others rely on enrollment status (full time versus part time). Get details from the financial aid or admissions office.
• Fees: Most schools charge set fees for services such as activities or athletic facilities. Such fees usually appear on the tuition bill whether you use these services or not.
• On-campus room and board: You may choose to live on campus and eat in dining facilities. Frequently freshmen are required to do so. Meal plans prices can vary significantly.

Indirect costs

• Books and supplies: Textbook costs are similar from school to school, but they vary greatly depending on the courses taken. Students can save by buying used books, buying online, or sharing with classmates. Some classes require more supplies than others; others have printing, copying, or computer costs.
• Computers: Many schools require students to have a personal computer. Check the admissions requirements to determine whether a basic PC will do or a more expensive laptop is required. Remember to add the costs of software, a printer, and — if you live off campus — connection to the Internet.
• Off-campus room and board: This category includes rent, furnishings, utilities, and meals. If you haven’t taught yourself to cook, now is the time! Even if you live at home, there will be expenses related to food and commuting.
• Transportation: If you will commute to school, factor in the cost of public transportation, gas, car insurance, maintenance, and parking fees. Some schools provide free parking, while others require a paid permit. If the school is far away, don’t forget the cost of air travel to get home on breaks and holidays. You can lower these costs by carpooling and by shopping around for student rates on airfare.
• Personal expenses: Students have lots of small personal expenses that add up and can make a huge difference. Consider clothing, laundry, haircuts, cell phone, and entertainment. Learn to maintain a written budget since these expenses can easily spiral out of control.
• Other costs: Count on extra expenses such as lab fees for science courses, fees for course changes, and expenses for participating in athletics or joining a sorority or fraternity. Try to keep a little extra money in the budget to cover emergencies.

Now that you know what goes in your bill, create a plan to pay with the Sallie Mae Education Investment Planner!

Here are some tips to help make taking a standardized test like the SAT or ACT a little less painful!

Be prepared: The night before the test, gather everything you’ll need:
•    Admission ticket
•    Valid form of photo identification
•    Several No. 2 pencils
•    Calculator with fresh batteries
•    Watch
•    High-energy snack

Don’t cram: The best thing to do the evening before the test is to get a good night’s sleep. Get into test mode: calm, rested, confident, and ready.

Dress in layers: You must be comfortable to perform at your best.

Don’t spend too much time on one question: Each question is worth the same score. If a question is confusing or too time-consuming, move to the next one. You can always come back to harder questions, if time permits.

Guess aggressively: If you don’t know an answer, eliminate the choices you know are wrong then make an educated guess from the remaining options.

While it’s always great to focus solely on your studies during college, it’s not always a possibility. Higher education, while worth it, can be pricey and sometimes you need that extra cash flow! Consider getting a job in school: There are some great benefits, such as learning to manage your time and money and fleshing out your resume!

Consider first the two types of employment during your college years: on- and off-campus jobs. On-campus jobs take your class schedule into account and eliminate a commute. There’s always a variety of opportunities, from entertainment planning to aerobics instruction. I recommend looking in your department first for extra resume boosting!

Depending on where you go to school, there can be more or less opportunities with an off-campus job. If your school is in a big city, you will probably find many positions in your career path for experience in your chosen field. But it’s important to be clear about your class schedule and time restrictions.

No matter where you work, keep your education a priority and don’t try to take on too many hours. You may find yourself wanting to accommodate more than you can handle, but you can’t please everyone! “Learning and Earning: Working in College,” a 2001 study by Upromise, shows that students who work more than 20 hours a week while attending school full-time experience more stress and have a larger chance of dropping out of school. The study also finds that students who work continuously take somewhat longer to graduate than non-workers: Student workers took an average of 9.2 semesters to graduate, compared to 8.9 semesters for those who have at least one non-working semester.

If having a job causes you to retake classes, take more time to graduate, or even drop out, you may have lost money in the long run. Make sure you do the math! Be honest with your boss and, most importantly, yourself over what will enhance (not hinder) your college experience.