Budgeting for College 101: Sallie Mae Offers Tips to Help College Students Create a Realistic Budget and Stick to it

    RESTON, Va., Aug. 23 /PRNewswire/ -- It's that time of year again:
 students are packing their belongings and heading off to college and
 university campuses across the nation this month. By now, most families
 have considered the best ways to pay for higher education, and by setting a
 good budgeting strategy for the school year, they can minimize unexpected
 expenses and bills. Sallie Mae, the nation's leading
 saving-and-paying-for-college company, can help students budget and save
 wisely, borrow responsibly and effectively manage higher education
 repayment obligations.
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     "The best financial management strategy starts before you even walk on
 campus, by thinking about your finances and setting a smart budget," said
 Tom Joyce, vice president, Sallie Mae. "When setting a budget, it's
 important to remember that overall college expenses include more than just
 tuition and housing. Everything from books to supplies to trips back home
 contributes to the total cost of your education."
     Joyce suggests that families begin by requesting a list of direct
 expenses from the student's college or university Financial Aid Office, or
 by looking on the school's Web site.
     Some tips to keep in mind when creating a college budget include:
 
     -- Ask the experts. Cost of attendance varies by school and location, so
        the best way to start is by contacting the institution for information
        on average tuition, room and board, books, and other fees.  Students
        may have to dig deeper to estimate costs for off-campus housing,
        transportation, and incidentals such as laundry, personal care
        products, and entertainment.
     -- Perform an honest assessment. Conduct a straightforward accounting of
        current spending habits and lifestyle. Don't forget to take into
        account expenses such as entertainment (concerts, movies, sporting
        goods), food (coffee, pizza), clothing, and car-related expenses (gas,
        insurance).
     -- Consider your health. Most colleges require students to carry health
        insurance, and some institutions may require students to buy on-campus
        care even if the student is already covered.  If you have several
        options -- such as a campus plan versus a private plan -- evaluate your
        health needs and the cost. It is important you know the policy so that
        you are not paying twice.
     -- Continue saving. It is never too late to save for college using a tax-
        advantaged 529 college savings plan. Even if college has already
        commenced, families can continue saving to help students afford
        subsequent years of school. Upromise(R) is the creator of an extensive
        reward program designed to help members contribute to their college
        savings through regular spending on qualified products and services;
        Upromise Investments is a leading provider of 529 college savings
        plans. By enrolling at Upromise.com, families can earn rewards on
        purchases made at nearly 70,000 places.  Accumulated rewards can then
        be used directly for college expenses, as contributions to a Upromise-
        administered 529 college savings plan, or to help pay down an eligible
        student loan.
     -- Be book-savvy. Campus bookstores generally buy and sell used textbooks.
        Because they can be considerably cheaper, used books are generally in
        shorter supply than new ones, so do not wait until the last minute to
        make your purchase -- just be sure to get the correct edition.  You may
        also find your books at cheaper sources such as off-campus stores or
        the Internet.
     -- Use credit with caution. Not every student needs a credit card. You may
        find that a debit card would meet your needs, and keep non-essential
        purchases in check.  Students often opt to use credit cards for
        convenience and inadvertently end up paying interest on their pizza or
        concert ticket.
     Sallie Mae is committed to encouraging students' financial health, and
 offer free services designed to help students budget wisely, borrow
 responsibly and manage their financial obligations. For more information on
 budgeting and financial management as well as planning to pay for college,
 please call 703/984-5621 or e-mail beth.guerard@salliemae.com to set up an
 interview with an expert.
     SLM Corporation ( SLM), commonly known as Sallie Mae, is the
 nation's leading provider of saving -- and paying for -- college programs.
 The company manages $153 billion in education loans and serves nearly 10
 million student and parent customers. Through its Upromise affiliates, the
 company also manages $18 billion in 529 college-savings plans, and 8
 million members have joined Upromise to help save for college with rewards
 on purchases at nearly 70,000 places. 529 college savings plans are
 municipal securities and are offered through Upromise Investments, Inc. The
 value of units will vary with market conditions and are not government or
 FDIC insured. Upromise is a registered service mark of Upromise, Inc.
 Sallie Mae and its subsidiaries offer debt management services as well as
 business and technical products to a range of business clients, including
 higher education institutions, student loan guarantors and state and
 federal agencies. More information is available at www.salliemae.com. SLM
 Corporation and its subsidiaries are not sponsored by or agencies of the
 United States of America.
 
 

SOURCE Sallie Mae