student loans Archives - George M. Pullman Educational Foundation

By Shawn J. Mayberry, Guest Blogger, Pullman Scholar Alumnus.

In 2011, I graduated from Loyola University Chicago with my communications degree. It was the most exciting (and scariest!) time of my life. With scholarships and other money saving strategies, I graduated with less than $15,000 in student loan debt at a private university with an annual price tag of $45,000.

Unlike most Pullman Scholars, I had attended Harry S. Truman College, a two-year community college, prior to transferring to Loyola University Chicago. I was awarded the Pullman Foundation Scholarship as part of a pilot partnership program with another organization I was a part of.

Higher education is one of your biggest life investments, and like any good investor, you want to cut costs and save money wherever possible. Here are a few tips I pulled from my experience to help you minimize your student loan debt:

Stick to your courses: There may be a class or two that you sign up for and realize it is more difficult than you expect or that you just can’t meet the workload demand. In all four years of college, I never dropped one course. I stuck through some of the hardest courses because I didn’t want to waste my money or time – two very valuable things. Before starting a course, ask your peers if they have taken the course or know anybody that has. You can also check out sites like Rate My Professors, where students give feedback on courses and professors.

Study abroad, smartly. I had the pleasure of sitting with fellow Pullman Foundation Scholars at our Winter Celebration in December (you missed a great event if you weren’t able to make it!), and I was amazed at all of the alternative ways students found to study abroad. While I really wanted to study abroad, I feared all of the costs and the loans I would have to borrow, but I still wanted that valuable experience. Instead of spending three to four months abroad, I spent time in Ciudad Juarez, Mexico through a Jesuit program at my university. I met a lot of amazing people and heard incredible stories of people’s plight to better economic opportunities. It was life changing. For the whole experience, I only spent about $250, and they covered everything else, including food, room and board, and air travel. If you do decide to study overseas, try and cut costs as much as possible. Look for cheaper flights on sites like Student Universe, apply for scholarship programs, and make sure you will receive credits for your studies abroad. You would hate to take out student loans only to realize that you won’t receive credit and then have to extend your stay in school or take classes over the summer, all costs you can avoid.

Apply for scholarships. It can be time-consuming juggling school, work, and other extracurricular activities, but see if you can dedicate an hour or two to searching and applying for new scholarships every other week or so. You can search for scholarships on sites like Big Future, Scholarships.com, and many others.

Secure a job, if possible, through work-study, which gives you the opportunity to make money on campus, usually in environments that allow you to study during your shifts. I worked in the Communications Department of my university where I not only made long-lasting connections and gained valuable experience (I was featured on the university website and in marketing collateral), but I was able to make money. If you are able to strike a good balance between classes, studying, and work, you can get great experience and earn extra money regardless of whether you work on or off campus.

Become an R.A. Full disclosure: the only debt I am paying off is a year of living expenses at our downtown Chicago campus. After I realized the cost, I immediately applied to be a Resident Assistant. Not only is your room and board covered, but you might also receive a meal allowance and a stipend every semester. It’s also a productive way to build connections with other students and gain great experience.

Cut spending on your books. Textbooks can be a huge expense in college. Exchange books with friends who have the same classes as you, and check to see if the school and public library carry any of the books. Sometimes I would go to my professor to see if the book was mandatory or if they had a loaner I could use periodically. You can also try renting books or purchase used books at lower prices.

I wish you the best of luck in 2015, throughout your college career, and beyond. Ask me questions and keep in touch with LinkedIn and @ShawnMayberry on Twitter.

Shawn currently works at an advertising agency and is also pursuing entrepreneurial endeavors helping small businesses maximize their online and digital advertising dollars. He enjoys spending time with his cockapoo named Princess, staying fit at the gym, writing calligraphy, gardening, reading random articles, and volunteering on two associates boards, including the Pullman Foundation Associates Board.

By Shawn J. Mayberry, Guest Blogger, Pullman Scholar Alumnus.

Stick to your courses: There may be a class or two that you sign up for and realize it is more difficult than you expect or that you just can’t meet the workload demand. In all four years of college, I never dropped one course. I stuck through some of the hardest courses because I didn’t want to waste my money or time – two very valuable things. Before starting a course, ask your peers if they have taken the course or know anybody that has. You can also check out sites like Rate My Professors, where students give feedback on courses and professors.

Study abroad, smartly. I had the pleasure of sitting with fellow Pullman Foundation Scholars at our Winter Celebration in December (you missed a great event if you weren’t able to make it!), and I was amazed at all of the alternative ways students found to study abroad. While I really wanted to study abroad, I feared all of the costs and the loans I would have to borrow, but I still wanted that valuable experience. Instead of spending three to four months abroad, I spent time in Ciudad Juarez, Mexico through a Jesuit program at my university. I met a lot of amazing people and heard incredible stories of people’s plight to better economic opportunities. It was life changing. For the whole experience, I only spent about $250, and they covered everything else, including food, room and board, and air travel. If you do decide to study overseas, try and cut costs as much as possible. Look for cheaper flights on sites like Student Universe, apply for scholarship programs, and make sure you will receive credits for your studies abroad. You would hate to take out student loans only to realize that you won’t receive credit and then have to extend your stay in school or take classes over the summer, all costs you can avoid.

Apply for scholarships. It can be time-consuming juggling school, work, and other extracurricular activities, but see if you can dedicate an hour or two to searching and applying for new scholarships every other week or so. You can search for scholarships on sites like Big Future, Scholarships.com, and many others.

Secure a job, if possible, through work-study, which gives you the opportunity to make money on campus, usually in environments that allow you to study during your shifts. I worked in the Communications Department of my university where I not only made long-lasting connections and gained valuable experience (I was featured on the university website and in marketing collateral), but I was able to make money. If you are able to strike a good balance between classes, studying, and work, you can get great experience and earn extra money regardless of whether you work on or off campus.

Become an R.A. Full disclosure: the only debt I am paying off is a year of living expenses at our downtown Chicago campus. After I realized the cost, I immediately applied to be a Resident Assistant. Not only is your room and board covered, but you might also receive a meal allowance and a stipend every semester. It’s also a productive way to build connections with other students and gain great experience.

Cut spending on your books. Textbooks can be a huge expense in college. Exchange books with friends who have the same classes as you, and check to see if the school and public library carry any of the books. Sometimes I would go to my professor to see if the book was mandatory or if they had a loaner I could use periodically. You can also try renting books or purchase used books at lower prices.

I wish you the best of luck in 2015, throughout your college career, and beyond. Ask me questions and keep in touch with LinkedIn and @ShawnMayberry on Twitter.

By Shawn J. Mayberry, Guest Blogger, Pullman Scholar Alumnus.

Stick to your courses: There may be a class or two that you sign up for and realize it is more difficult than you expect or that you just can’t meet the workload demand. In all four years of college, I never dropped one course. I stuck through some of the hardest courses because I didn’t want to waste my money or time – two very valuable things. Before starting a course, ask your peers if they have taken the course or know anybody that has. You can also check out sites like Rate My Professors, where students give feedback on courses and professors.

Study abroad, smartly. I had the pleasure of sitting with fellow Pullman Foundation Scholars at our Winter Celebration in December (you missed a great event if you weren’t able to make it!), and I was amazed at all of the alternative ways students found to study abroad. While I really wanted to study abroad, I feared all of the costs and the loans I would have to borrow, but I still wanted that valuable experience. Instead of spending three to four months abroad, I spent time in Ciudad Juarez, Mexico through a Jesuit program at my university. I met a lot of amazing people and heard incredible stories of people’s plight to better economic opportunities. It was life changing. For the whole experience, I only spent about $250, and they covered everything else, including food, room and board, and air travel. If you do decide to study overseas, try and cut costs as much as possible. Look for cheaper flights on sites like Student Universe, apply for scholarship programs, and make sure you will receive credits for your studies abroad. You would hate to take out student loans only to realize that you won’t receive credit and then have to extend your stay in school or take classes over the summer, all costs you can avoid.

Apply for scholarships. It can be time-consuming juggling school, work, and other extracurricular activities, but see if you can dedicate an hour or two to searching and applying for new scholarships every other week or so. You can search for scholarships on sites like Big Future, Scholarships.com, and many others.

Secure a job, if possible, through work-study, which gives you the opportunity to make money on campus, usually in environments that allow you to study during your shifts. I worked in the Communications Department of my university where I not only made long-lasting connections and gained valuable experience (I was featured on the university website and in marketing collateral), but I was able to make money. If you are able to strike a good balance between classes, studying, and work, you can get great experience and earn extra money regardless of whether you work on or off campus.

Become an R.A. Full disclosure: the only debt I am paying off is a year of living expenses at our downtown Chicago campus. After I realized the cost, I immediately applied to be a Resident Assistant. Not only is your room and board covered, but you might also receive a meal allowance and a stipend every semester. It’s also a productive way to build connections with other students and gain great experience.

Cut spending on your books. Textbooks can be a huge expense in college. Exchange books with friends who have the same classes as you, and check to see if the school and public library carry any of the books. Sometimes I would go to my professor to see if the book was mandatory or if they had a loaner I could use periodically. You can also try renting books or purchase used books at lower prices.

I wish you the best of luck in 2015, throughout your college career, and beyond. Ask me questions and keep in touch with LinkedIn and @ShawnMayberry on Twitter.

By Julia Lane, Intern.

It’s that time of year again. The air is crisp, couples dressed in J.Crew knits walk down the street consuming pumpkin-flavored beverages, and recent college graduates receive their first student loan repayment bills.

If you graduated this spring and took out loans to fund your education, which according to the College Board’s 2013 Trends in Student Aid is more than half of you, your six-month student loan grace period is probably about to expire. This means you will be receiving a bill soon which will mark the beginning of your repayment period. Like Batkid’s fight against crime, repayment is no joke, missing a payment could affect your credit score, your ability to rent an apartment or even your eligibility for a job.

Be smart about your repayment. Here are four things you can do now before your first student loan payment is due:

1. Get Organized

It’s probably been several years since you took out your first student loan, and with finals, graduation, and post-college plans you might have become a little hazy about the details. Since you are going to have to start repaying those loans soon, it’s important that you know how much you owe and what kind of loans you have. You can log into the federal government’s student aid website (studentloans.gov) using your Federal Student Aid pin to view your loan balances, information about your loan servicers, interest rates, and more.

2. Say Hello to your Loan Servicer

While you’re on that website, check out who your loan servicer is. A loan servicer is a company that collects your federal student loans payments on behalf of the U.S Department of Education. Once you’ve found out who your loan servicer is, go to their webpage and make sure your contact information is updated. You don’t want your loan bill collecting dust at your mom’s house because you moved over the summer.

3. When Life Gives you Loans, Make Monthly Repayments

So how big of a bill should you be expecting? Your monthly payment will depend on three main things: how much you borrowed, your interest rate, and what kind of repayment plan you choose. For example, the average student who earned a bachelor’s degree in 2011-12 graduated with $26,500 in debt. If their loans had an interest rate of 6.8% and they chose a standard repayment plan of 10 years, then their monthly bill will be almost $300. Overall, they will end up paying a little less than $10,000 in interest over the course of 10 years. In order to make these payments, it is recommended that they have a yearly income of at least $45,000. Take a look at the chart below for more examples.

Estimates were made using Mapping your Future’s Student Loan Repayment Calculator

4. Create a Game Plan for your Repayment Plan

I know, $300 dollars a month is a lot of money, but before you start bulk-buying Top Ramen; you should consider what repayment options you have available to you. For many recent grads, even minimum monthly payments under the standard 10-year repayment plan may be too much to handle at first (we feel your pain theater majors). Luckily, you’ve got repayment options, such as income-sensitive or extended repayment that may lower your monthly bill. While low or reduced monthly payments might mean that you’ll have a little extra cash for fun things, you will end up paying more in the long-run, as unpaid interest is capitalized, increasing your principle loan amount.

Want more information on student loan repayment? Talk to your loan servicer or your college’s student loan officers for more personalized information and repayment options.

Advanced Readings:

Four Common Student Loan Mistakes

Everything You Need to Know about 7 Student Loan Repayment Plans

Federal Student Aid | U.S Department of Education

Income-based Repayment Calculator | Student Aid. gov

Mapping your Future: Estimate your student loan payment