Tagged: budget

What Really “Mattress” And What You Should “Chair” About in Furnishing Your Apartment

So Class of 2018… here is the reality – your new permanent address here in New Haven is 127 Wall Street. That’s where you will be spending the majority of your days and nights. That apartment that you probably just dropped a hefty security deposit on is solely where you store your stuff and sleep.

Given that… there is no real reason to spend your already challenging student budget on furnished said apartment in any type of lavish style.  There are ways to get all the essential furniture you need and still save money

IKEA (located on Sargent Drive in the Long Wharf section) – is probably the go to New Haven “student friendly” destination for inexpensive and yet new furniture.   The biggest time constraint with IKEA is not winding your way through the labyrinths of their massive store  (following their mandated yellow line so that you have to walk through each and every department) but the time you will need in actually putting together the furniture which all comes unassembled  with no written instructions (just pictures) and you r only  tool is the 4 inch allen wrench supplied with each purchase.   There is a reason why IKEA sells a larger $7.99 tool kit close to the checkout counters- invest in that!   My favorite spot in IKEA is actually the “As Is” department which is tucked to the far left of the checkout area. Here you can find significantly reduced display models or slightly damaged furniture and the best part… it’s all pre- assembled!!    No room to fit that purchase in your car? – IKEA also allows you to rent trucks on a daily basis to bring the purchase home. Another budget item  related to IKEA- great inexpensive meals in their restaurant – the signature dish being their Swedish meatballs with  ligonberry sauce.

My other  favorite budget furniture place is Universal  Hotel Liquidators (UHL) located on Rt. 1 in West Haven. Consider the concept… who changes furniture the most often… hotels who are constantly updating  their rooms.  UHL  recognized that and the fact that this furniture for the most part is relatively gently used and as such very resellable. .  Think of it as a “green effort” to recycle furniture that still has a lot of life span left.  It’s an enormous warehouse where you can literally find any type of furniture here that you would find anywhere in a hotel. From the traditional bed sets,  desks, and armchairs to ice buckets, luggage racks and wet bars.  And usually it’s not just one of any given item but sometimes 30 that all came out of the same hotel (so you get to choose which one of the 30 is in the best condition).   Part of the adventure is looking for the identification found somewhere on the piece which tells what hotel  it came from – bonus points if you find anything from the Waldorf Astoria.  Hotel Liquidators will also deliver furniture for a small charge.

For those with a sense of adventure there is always the tag sale/estate sale circuit.  You can find a listing of area weekend sales in the classified of the New Haven register each week (paper version or online) .  If you have a car and can get out to the New Haven suburbs (Orange, Woodbridge, West Haven)  it’s usually some pretty good  pickings.

But why listen to me when he real source of interior design on a budget has to be our own  rising 2Ls and 3Ls who shared these tips:

  •  “I  strongly recommend furniture shopping at thrift stores, though you may want to reserve this for non-upholstered items like tables, desks, and dining chairs. My favorites in the area are Savers and Helping Hands Community Thrift Store (which, as a bonus, has a student discount!). “  [Note- you can find Savers, Helping Hands , the Goodwill Store as well as several private consignment shops all on the Route 1 Boston Post Road strip in Orange].
  • Look for furniture on Craigslist — many of the posts in New Haven are Yale students (sometimes even YLS students!) trying to get rid of their furniture before they move apartments or before new roommates move in, and you will often get furniture at a substantial discount.”
  •   “If you can wait to purchase some furniture (or if you are looking to purchase furniture before moving into another apartment before your 2L or 3L year), watch for posts by graduating and moving YLS students looking to get rid of furniture. Many of them will be giving away furniture (and much more — casebooks, dishware, coffeemakers and other appliances, etc. — the list goes on!) for free or very cheap at the end of the year and you can get a lot of what you need then if you are free to pick up the stuff then. “
  • “The Yale Free & For Sale Facebook group is a great place to get affordable furniture and household goods from other students”

So with these  suggestions, keep in mind  that your New Haven home is still a temporary address.  Really assess what critical furnishings you need to be relatively comfortable over what will be three short years and don’t let your budget fall  flat over the allure of that flat screen television.

“Survey Says”- What The Cost of Living Survey Told Us

It’s been a couple of years since I have written a blog post on the YLS Cost of Living survey and felt it was time to re-address what it is we actually do with this survey data and why it’s critical to the financial aid process. And along the way I will share some of the specific results of the recently completed 2014-2015 survey.

WE CAN’T DO IT WITHOUT YOU– the Cost of Living survey is only valuable when students take the time to respond and provide accurate data. So thank you to everyone who completed our 14-15 survey which yielded a 32% response rate of all YLS JD and Graduate students ( down from the 13-14 year response rate of 42% but still yields a good enough sample to draw conclusions.)

WHAT DOES ANY OF THIS HAVE TO DO WITH FINANCIAL AID? In order to award aid (by federal regulations) we must annually develop a “Cost of Attendance” (i.e. budget) which represents both the fixed (think tuition and fees) and estimated (i.e. books, housing, food) costs that a student attending YLS would incur. . That Cost of Attendance forms that basis of all aid awards since the need based aid formula is Cost of Attendance – Contribution (student, parent etc.) = Need. So to come up with those estimated costs of books, housing, food etc. we go (through the survey) to the people actually incurring these costs- our students- .

WHY FOCUS THE SURVEY ON ONLY CERTAIN EXPENSES? – The Department of Education regulations specify what are “allowable” expenses in the Cost of Attendance and it’s usually a pretty narrow definition. They also mandate that the same Cost of Attendance must be used for all students in the same degree program So we can’t create budgets based on each individual student’s spending pattern or needs… everyone is held to same overall Cost of Attendance accountability.

THE “BONUS”- beyond helping us build the Cost of Attendance, the survey gives us information to evaluate financial challenges among our students, which we can then address. . For example the increasing cost of professional clothing in last year’s survey led to our “Dress For Success For Less Workshop” this past year, as well as our increasing the COAP eligible suit loan from $350–$600.

SO… WHAT DID THE SURVEY SAY…? Some highlights (in a geeky “I love data” kind of way):
99% of our students live in New Haven – that figure is not much different than in prior years but this year we added a question asking in what area or neighborhood :

Where YLS Students live in New Haven
Downtown

61%
East Rock

26%
West River

0%
Westville

1%
Wooster Square

5%
Other

7%

 

So the pragmatist in me says it makes sense that people want to live in downtown as close to YLS as possible. But the Financial Aid Director in me looks at that same data and worries about the “price” of that convenience given that Downtown rents are notoriously higher priced.

blog 3

Living Situation data on the whole differed very little from the 13-14 year but when we drill down a little into this data and start segmenting it by class year … we find a very interesting development:

 

Class Year

1L

2L

3L

Graduate

I live alone

32%

36%

24%

57%

I live with my spouse

7%

6%

15%

21%

I live with my spouse/children

2%

4%

6%

0.00%

I live with one roommate

35%

25%

32%

14%

I live with two or more roommates

23%

28%

24%

7%

For the first time (in the 5 years that I have been conducting the survey) – the percentage of 1Ls living with roommates surpassed the number of 1Ls living alone. To me that’s a very positive trend because there are huge cost savings in living with roommates (and even more if you can do it for all three years). How much savings?

blog 2

Our survey answers that as well:

Let’s do the math – that cost difference between living with a roommate (let alone two or more roommates) is $3,978 for the 9 month academic year. If you lived alone for all three years that’s $11,394. Think that’s a lot? How about if you had to borrow that amount in extra Grad Plus loan funds and then pay it back on a 10 year repayment- total cost then for wanting to live alone for your three years of law school is now – $16,230?

The Average Monthly Living Cost decreased from 13-14 (primarily due to a drop in the average rent/housing cost) and given that data it’s awfully hard to justify an increase to the present $17,000 allotted for living in the student budget.

EXPENSE CATEGORY 2013-2104 2014-2015
Rent/mortgage* $921 $891
Basic Household utilities $92 $91
Telephone (cell or landline) $69 $67
Cable/Internet $51 $46
Food $443 $432
Local Transportation $142 $105
Average Monthly Total: $1,718 $1,631
Academic Year Total (9 months) $15,461 $14,679

In addition, the present estimate of $1,100 for books is fairly accurate given that the survey showed 2Ls and 3Ls spending an average of $954 last academic year.

THINGS THAT WORRIED ME:

  • A higher percentage (28%) of students indicate they primarily get their meals by “eating out-“ than last year (17%) with a corresponding decrease in students who make meals at home (77% to 56% ). As a wise, former YLS student so eloquently shared with me “buying meals out is one of the most efficient ways to deplete your budget”. ( A quote I should have carved over our office entrance)
  • There were some “ongoing” expenses cited for which we can make budget adjustments and allow additional COAP eligible loan borrowing- professional clothing, travel for Clerkship interviews and computer purchases. I worry from the responses that not everyone knew this option was available to them.
  • Many people cited out of pocket health costs as a challenge. Per federal regulations this is an area where on an individual case by case basis we can potentially make a budget adjustment for additional loan funds (however not COAP eligible) but in a cash flow situation that might help you deal with these costs. If this is your situation, come talk to us.
  • Of all the responses to “what are other ongoing expenses not captured elsewhere on the survey”- the most common was “gifts” for the holidays, for weddings, for birthdays etc. I know this is going to sound preachy but I need to say it.. the fact that you are here at Yale Law School has to make your family and friends very happy and proud. I think they would understand that for three very short years of your life you are going to be facing some financial constraints and restrictions that may hinder your ability to give pricey gifts. But you should never forget that the biggest/best gift for them will be your graduation from YLS. Seriously the only “wedding gift” that I received and still use on a daily basis is a very inexpensive hand crafted piece of pottery and I have never used one place setting of my Lenox china. I’m just saying… people will understand your situation

SOMETHING THAT MADE ME HAPPY:

blog1

57% of you indicated that you keep a budget!!! That’s the key to this whole Cost of Attendance challenge. And interestingly most of you are keeping it on a basic Excel spreadsheet and if using an app or software the majority are using mint.com If you are not keeping a budget you may want to check out the basic excel budget template we have available on the Inside Page.

THE BOTTOM LINE: As with all things financial- we have to end with the bottom line… we will retain the $17,000 allowance for “living” and $1,100 allowance for “books” in next year’s 2015-2016 Cost Of Attendance because based on the survey data (which is the only empirical evidence we have) an increase is not justified. That $17,000 allowance is still above the $14,679 average academic year living costs calculated by the survey and, as such ,we are still allowing a $2,321 “buffer” for higher cost choices or to cover some of the ancillary costs. (toiletries, household expenses, entertainment, technology maintenance, pet care, etc.) cited as ongoing expenses in the survey. We also need to point out that increasing the “living allowance and Cost of Attendance in general also increases the amount of unit loans offered to you and your overall borrowing/debt.

So my best advice is:
1) Start/continue to keep a budget so that you can live within that allowance, recognizing the reality that while here (again for three short years) you are going to need to make some challenging financial choices, decisions and sacrifices
2) Don’t hesitate to come to the Financial Aid Office to discuss any of the financial challenges that you face. There are circumstances under which we can make aid adjustment and, at the very least, we may be able to offer support and help you come up with some creative solutions.

Eat Cheap- Wash, Rinse, Repeat

It seems like I am forever preaching the gospel of eating on the cheap at YLS . By now I am sure everyone knows that “food” is the one discretionary item in your budget that you can control (because you can’t really change how much you are going to pay each month for rent and utilities.) You probably also have heard me quote a very wise YLS student who once shared the prophecy- “ buying meals out is one of the most efficient ways to deplete your budget” .

Well there is a great new resource making its way through the graduate school world – “Good and Cheap: Eat Well On $4/Day” by Leanne Brown. Leanne actually wrote “Good and Cheap” as part of her master’s in food studies at New York University. The original premise of her study was focused on the critical question “how well can a person eat on the $4.00 per day given by SNAP (the U.S. Supplemental Nutritional Assistance Program – aka Food Stamps)? .

Leanne proved that based on maximizing every ingredient and using economical cooking methods there are numerous nutritious and affordable options. Her upcoming book (self-published as a result of a successful Kick Starter campaign where for every book funded a copy would be donated to a non-profit organization) not only includes a wealth of her nutritious budget conscious recipes but also includes tips on shopping, creating a basic pantry, and mastering some essential staples (i.e. pizza dough, flour tortillas, even croutons!). Now the book won’t officially “drop” until June 2015 but in advance of that you can visit Leanne’s website where she encourages downloading a PDF version so you can start cooking meals that are healthy for your body and budget.

Financial Aid Fashion Blogging

So this is my one (and most likely only) chance to join the myriad of “fashion bloggers” out there. Definitely a bucket list item I can now cross off.
So what’s the connection between my real life world of financial aid and the far more interesting world of fashion… budgeting of course (my favorite topic of conversation).

Our 2013-2014 Cost Of Living Survey indicated that on average, YLS students spent $642 on professional clothing last academic year (a significant jump of 18% over what was spent the prior year). That’s a big bite out of the already stretched student budget.

But the reality is that you can indeed “dress for success… for less” as our October 20th Financial Literacy Lunch Workshop proved. Fashion editor Shanelle Rein Olowokere (In Style, Entertainment Weekly, People Style Watch, PEOPLE.com and currently senior fashion editor at Goodhousekeeping.com) brought her fashion sense and sensibility to YLS.

Shanelle Points

Shanelle recognized that YLS students face two distinct challenges- dressing for the nonprofit/public service work environment and dressing for the far more conservative and formal law firm setting. With clothing generously provided by THE LOFT, Shanelle used real YLS models to demonstrate two looks for both the conservative (think firm or clerkship) to casual (nonprofits or new media) work places. Our special thanks to our two models Chelsea Lane-Miller’ 17 and Irina Anta’ 15 for agreeing to walk our makeshift runway (well, okay just the amphitheater stairs in Room 127) . In the photo on the left, Shanelle (right) highlights some of the features on Irina’s “casual work environment” LOFT look , while Chelsea (middle) waits to show a LOFT suit appropriate for “firm wear”. And Shanelle didn’t forget the men- she included in her presentations visuals for optimum casual and conservative looks for them as well.

So here are some of the key takeaways that Shanelle shared-

1) The absolute need to find the right fit- whether that means ignoring the sizing label, making friends with your local tailor or just knowing your body enough to realize what looks right on you!

2) Have a shopping strategy- know how much you can spend (i.e. the all-important budget), know what you need (make a list!), research on line first (saves lots of time browsing through stores) and shop smart (see something you like… wait for it to go on sale!)

3) Work those accessories- want to express your individual style while wearing a relatively conservative wardrobe? Let your accessories (tie, scarf etc.) do the talking for you. But don’t forget that you want quality in those accessories so that they fit well and will last … whether in good (aka comfortable) shoes or leather handbags .

Shanelle smilesBeyond her basic presentation, Shanelle fielded a lively Q&A session with students that touched on every fashion aspect imaginable from appropriate winter outerwear (answer- classic trench coat and wool coat), whether you can wear black shoes with navy pants (answer- absolutely), if black flat shoes are appropriate (answer- depending on the work environment and if the shoe was constructed well i.e. no ballet shoes), how to work with a tailor (answer- start with alterations to some of your less expensive clothing to see if you like their work before giving them any of your higher quality suits or dresses) to whether you can use a nice leather tote bag in lieu of a purse (answer- yes!) .

Above all Shanelle emphasized how important clothes are to not just looking professional but feeling good about yourself in the workplace, which ultimately help your performance. And she gave tips galore on inexpensive brands, sale strategies (shopstyle.com!) and continually proved that you can indeed dress well on a budget (provided you make a budget!).

And so ends this post from the self-proclaimed “Financial Aid Fashionista”!

Life Does Not Have To Involve Living Off Ramen- How YLS Students Save Money

Part of my ritual for another school year is a blog entry targeted to our new 1Ls basically focused on “living on the cheap” in New Haven. I could certainly give you my own ideas (like if you shop at IKEA check out their “As Is”… department first where not only can you save money but your furniture will already be put together for you – okay that’s equally a budget tip and equally “I am just lazy” tip). But this year I decided to change it up a little and go to the actual source… real YLS students who have learned (in some cases the hard way) how to save, sacrifice and manage on a student budget. I put out a call in early summer to our rising 2ls and 3Ls asking them to share with our incoming students their money management strategies and was amazed at their resourceful responses:

Most of the students agreed that the most challenging part of the student budget centered on housing/rent, transportation, food and books. That being said here are their creative solutions (with a disclaimer that the Financial Aid Office is not endorsing any strategies or vendors … we are simply stating that this is what students do…):

HOUSING/RENT
“Pay your rent for the entire semester ahead of time so that you don’t have to think about it. It really reduces the stress surrounding finances to have the biggest expense taken care of.”

“The hardest part of budgeting is paying your January rent, since the second semester doesn’t start until after winter break, you don’t get the second round of loans until late January. At the start of the semester, set aside all the cash you’ll need for rent into a savings account (or wherever) and then budget with the rest. A lot of us 1L year didn’t do this and had to scramble in January to make ends meet. “

“If you do not have a roommate, split utilities like internet with neighbors.”

“You can make small adjustments to your food budget, but let’s not ignore the elephant in the room: Don’t live in expensive downtown high-rise apartment buildings just because it’s easy or because everyone else seems to be doing it. You’ll have plenty of time to live in your own private mediocre high-rise apartment once you’re practicing law. Instead, find a room in a cute house in East Rock, Wooster Square, the Mansfield Street area, etc. You’ll save $400-600/month. If you do that, you’ll never have to worry about your food budget. Don’t be afraid to explore New Haven’s “outer” neighborhoods!”

“My advice is simple (for single people): live in East Rock with roommates. Rent is my biggest expense by far – by keeping my rent low, I’ve found living on the budget is really a piece of cake. “

TRANSPORTATION/TRAVEL:
“Get on a bike and go buy groceries. Homemade meals are the golden path to saving a ton of money. It can be hard to get around in New Haven, so a bike can be a great option to get exercise, bask in the sun, and buy the stuff you need. “

“Being in a long-distance relationship can really strain your budget, but planning ahead can help. If your significant other is an Amtrak ride away, buy a Student Advantage card to get discounted train travel. And book those tickets well in advance, even if you aren’t sure that you can actually travel on that day. Fares are much lower two months out and it’s easy to cancel or modify reservations – there’s no fee and you can use the credit towards a later trip.”
“Book your Amtrak or Mega Bus tickets in advance. Prices go way up closer to the date you’re traveling.”

“The key to saving money for me has been signing up for frequent flyer miles and credit cards that give me rewards so I can spend less on transportation to the west coast.”

“Sending my car back home was the best financial decision I could have made. With parking and upkeep expenses I was barely getting by, but without a car I’m able to live within my means. I just get my heavy groceries delivered through Peapod and buy fresh items from the co-op.”

SHOPPING:
“Shop at Savers!!!! Savers has furniture, home supplies & appliances and pretty awesome clothes. There are some real treasures there. “

“Connect with current or, ideally, recently graduated students to see if they can get some furniture. Alternatively, Craigslist is a great resource.”

“Carpool with a few other students every 3-4 weeks to Costco or Trader Joes in Milford and stock up on essentials.”

“If you shop online, use Ebates.com–you get cash back for most major retailers. It adds up!”

FOOD/MEALS
“Make food that freezes well and divide it into individual portions (and freeze it) so that you don’t have to resort to takeout when life gets hectic. “

“It’s surprising how much money you can waste on small expenses like study snacks during the day. To save money, stock your locker with snacks you’ve bought in bulk.”

“Attend events at YLS. Great way to get tasty free food and learn something new.”

“Make your own lunch or buy food from food carts… cook for yourself as much as you can. The dining hall has a microwave, plates, utensils, napkins, basic condiments. There’s even a fridge on the other side of the building. You can really cut costs by bringing your own lunch to school or attending almost-daily free lunch events.”

“I try to pack lunch at least three times a week. And I almost always cook dinner for myself. Buying meals out is one of the most efficient ways to deplete your funds. Plus cooking will impress potential dating partners. “

“I try to buy liquor at the big store next to Trader Joe’s. I get someone with a Costco card to take me shopping there. Don’t eat out! Save it for special occasions. Pack a lunch from home or go to an event with free lunch.”

BOOKS:
“Don’t buy books until you’ve had a couple weeks in your classes. There may be some classes for which it’s more sensible to use the copy the library has on reserve. This is particularly for professors who give a lot of reading outside of the textbook. If students are anything like me and can’t help highlighting, underlining, and taking notes in the text while reading, scanning and printing the pages you need really works. At the most, you’ll spend $60-$70 on printing per class over the entire semester. That probably amounts to a third of what you’d pay for buying the book.”

“If you HAVE to buy the book, make sure to check the Initiative’s book fair at the beginning of the semester, in addition to the ongoing Google doc that YLS students maintain to sell books (2012-13 version available here).”

“You might be tempted to pay more for your books and for shipping so that you can have them for the first day of class. But don’t do it, shop around and find less expensive options. “

“Books are a major expense and there are a lot of other ways to get the readings (friends, copies from the library). My year, someone from our small group got the books from the library and scanned all the readings for the first week and sent them to the group. That way, if the less expensive book didn’t ship for a week or two, we were still all covered.”

“You can also rent books from the book store for a lot less than buying them (though you can’t write/highlight in them). So keep that option in mind.”

BUDGETING IN GENERAL
“Do your best to estimate your utility bills and other bills related to living so that you can get a better idea of how much spending money you’ll have once ALL of your bills are paid for the semester. Divide the excess into weeks –this is the MAX that you can spend each week. Putting the money into a separate account will reduce confusion about how much money is available to go out with friends, shop, etc. “

“I think it’s helpful to make an actual budget in Excel at the beginning of every semester. Then at the end of each semester go back and see how well you stuck to your plan and revise for the next semester as necessary.”

“I set up a monthly budget in August and update it periodically to keep track of my expenses. I usually overestimate (within reason) all budget line items so I have a cushion at the end of the semester.

“I also use mint.com, a budgeting app. It lets you set monthly budgets and makes it super easy to keep track of spending.”

My thanks to all the 2Ls and 3Ls who contributed their suggestions and their first hand experiences living on a “fixed income”. Keep in mind that the Financial Aid Office has budgeting tools available to help you. In addition we will be kicking off our Financial Literacy Lunch Workshop series this year with a workshop on budgeting and credit on September 25 which includes one of those “valuable” free lunch opportunities.

Tonight’s Top Ten Category … Things You Need to Know About Using Your Financial Aid …

Note- this post has been updated since its original publication in May 2013
Okay, I couldn’t resist adding one more to the myriad of over used Top Ten Lists out there (David Letterman what have you wrought in our society!!). But this is a pretty important one to at least take a look at because it’s all about what you need to do to insure your financial aid actually materializes to pay your tuition bill and actually is accessible for you to pay your own bills. So… (drumroll….)

#10 – You will not receive a bill – it’s true..…not in the sense of a bill mailed or emailed to you directly. What you will get is an email that a July 1 billing (due August 1) for charges for the Fall  term is available for you to review on the Student Information System (SIS).

#9 – You may not need to actually pay the bill – if you have accepted enough financial aid between loans and scholarship funds to fully cover the Fall term (i.e. that’s 50% of your total aid for the year) your financial aid will appear on the July 1 billing statement as anticipated aid. Provided you have enough accepted financial aid to cover the bill, you will not need to make any payments on the due date of August 1. However, the only way that your financial aid appears on your bill is if you have completed the financial aid process by submitting all required tax returns and the Notification and Confirmation form.

#8 – You may need to actually pay the bill – if you have declined financial aid, intend to pay on your own or have not accepted enough financial aid to cover the Fall term bill you will owe a balance that must be paid by August 1st .

#7 – There are consequences (bad things) if you do not pay the bill in full by the deadline… including late fees added to your account and holds (including a registration hold if the bill is not paid by the time you get to YLS which will prohibit you from registering with your class and getting your course schedule).

#6 – Your loans are not really loans yet…there are steps that need to happen in the summer to actually “set up” your loans. You will get an email from Student Financial Services mid-summer (usually mid to late July) instructing you to complete loan paperwork electronically on the SIS system including a promissory note, truth-in-lending statements (TILAs), Title IV authorizations and an entrance counseling session (which are not counseling sessions at all but an online information survey). Documents will differ depending on what type of loan(s) you have and you will also need to complete separate promissory notes for each loan (including both the federal Direct Unsubsidized and Graduate Plus loans).

#5 – The Asset Verification Form is the final piece of the financial aid puzzle – this form must be completed within the window of after July 1st and by August 1st (no earlier and no later) allowing us to substantiate the estimate you made on Need Access for your total assets (and upon which we based the asset contribution in your aid award). Depending on the balances reported on this Verification form aid awards will be adjusted (both increases and decreases). Find this form in your Admissions Binder or on our website. Failure to submit by the deadline will put a hold on all financial aid funds.

#4 – Financial aid (loans and scholarship) disburse three days prior to the start of the term – with no exception. That’s in keeping with federal regulations and there is no getting around that. What that means is there is no “early” disbursal of aid for any financial reasons or hardships. So you will have to come prepared to pay for critical things you need (shelter, food, etc.) with your own funds from the time you move to New Haven through orientation.

#3 – Refunds on Financial Aid need to be requested in order to disburse. Refunds are the technical term for financial aid funds you have accepted for the sake of your own living expenses. Refunds are generated when all the Yale direct charges are paid and there are still excess funds on your account. However, in order to gain access to these funds you must “request a refund” on the SIS system. And you need to do this each semester or anytime you want a refund (i.e. those funds are not going to come to you automatically just because they are yours). And the earliest you are going to receive a refund is the first day of term. But again because there is no set or guaranteed date for the refund (albeit per federal regulations schools have 18 days from start of the term to issue and Yale does an extraordinary job of getting refunds to students in a timely manner) make the necessary allowances in your cash flow to survive.

#2 – There are things you can do to expedite the refund. First, sign up for automatic deposit so that the refund is deposited directly into your own bank account and you are not waiting for a paper check to be issued. Instructions on this process can be found on the Student Financial Services website . Second, request the refund a couple of days before the first day of term so that as soon as the excess funds are generated the refund process will already be in process.

#1 – Reach out to the Financial Aid Office for questions and help. As as you have just read a lot of fairly complex things need to happen on a certain timeframe, in a certain order over the next few months to ensure that you actually have funds in hand come the first days of classes. Don’t let a missed step leave you without the money you need. (Try as some have you can’t survive by living off the free candy that the Financial Aid Office always has available in our candy dish). So call us, email us or come visit us anytime if something in the process needs to be clarified.

The Price of Solitude … the cost of living with or without a roommate

I know that this is the time of the year when our new admits are scrambling to find housing and put deposits down before someone else snatches up a good apartment. Lots of pressure to insure that you have a place to actually “land” when you get here in August.

And not wanting to add any additional pressure onto those tough, timely choices but…. thought it would be worth just throwing out a few numbers which show why we advocate that students give serious cost consideration to finding roommates. Yes, I know that the thought of sharing space with someone you barely know at this stage of your life probably just makes you groan. Are they going to “mistakenly” eat your peanut butter… probably yes? Are they going to play some unbearable (you fill in the genre) music night and day … most likely. And are they going to have a whole warren of dust bunnies living under their bad? Absolutely. They will invariably do things to annoy you and impede your independence.

But what they will also do is save you considerable money in your student budget. Here’s why we know that… as some of you may have read on the blog post “The Means to Live Within Your Means” we do an annual costs of living survey among current students to assess if the number we use for “living expenses” in the student budget is accurate (which it is). What that survey also shows us is the overall cost differential between living alone, living with one roommate and living with two or more roommates.

COL Roommate Chart

Using the example of the cost differential of single to one roommate.. that’s $203 per month or $1,827 per academic year or $5,481 over a 3 year JD degree. So let’s say that you chose to live alone and let’s suppose that you then have to borrow ( in a Grad Plus loan) the additional funds of the cost differential in loans in order to make up for that extra expense of living alone. That $5,481 extra you borrowed over your 3 year enrollment translates to $7,946 on a 10 year loan repayment and $12,582 on a 25 year loan repayment. (And that is not factoring in the interest that is building on the borrowed amount while you are enrolled). So you just spent at a minimum $7,946 to live without a roommate. Is it worth it?

You are going to hear two things ad nauseum from me during your enrollment. First, you have a limited amount of money to live on in your student budget. Basically you are on a fixed income (and you didn’t even have to wait till social security). You can live adequately on our student budget provided you make some fiscally sound life choices. Second, any opportunities that you have to mimimize your borrowing saves you considerable funds in the future. Sacrifice a little now for long term financial gain. And choosing whether to live alone or with a roommate is one of the first choices you make that will impact both budgeting and borrowing.

Apples to Apples (or at least Granny Smith to Macintosh): Comparing Aid Award Letters

Note this blog was updated from its original April 2013 publication.

This is the season when our office gets a lot of requests to match aid awards from other Law Schools. But as a need-based institution we can only review or change an aid award if there is a change in financial circumstances which affects need. The existence of an alternative scholarship does not affect need or allow the leveraging of additional YLS funds.

What we will do when you reach out to us with this request is two things. First, we will do a re-review of your Need Access and FAFSA applications to ensure that we have understood your financial situation correctly. We recognize the fact that the data on those forms often does not tell the full story of an applicant (or their parents) and as such it’s helpful to dig a little deeper into what has been reported. Sometime the student has miscalculated what assets they will have available as of September 1st (which is the key number we use in calculating the asset contribution – not the data that reflects the assets you had at the time you completed the application). Or sometimes we will note that the student or parent had a one-time influx of income which is not representative of what their annual income truly is. Again, adjustments to the aid award can be made if we determine that the financial need data should be revised.

Second, we will talk with you about how to look at our aid award in the context of other awards you may have received. We are big believers in the “look before you buy” philosophy. Often we share the following points in how to effectively compare aid awards:

— As previously stated, it’s not possible to do a direct (my apples to apples analogy) comparison of “merit” based awards vs. need based awards because they simply are not done on the same principles.

— With merit-based awards that support tuition only, you want to be conscious, therefore, of how you will then fund your living expenses (and what realistically are those living expenses). If you are borrowing loans to support your personal expenses and living in a high cost city this could be substantial loan debt. Which then leads to the question: is this loan debt borrowed for living costs covered under the institution’s LRAP (Loan Repayment Assistance Program)? Which in turn leads to the larger question of comparing that LRAP to other LRAPs available.

— LRAPS in general have to factor into any aid award comparison as a “back end” scholarship. It’s not just about what you are getting in the initial aid award to fund those three (short) years of law school, it’s also about what support you will receive to assist in the long term repayment of the debt.

— How was the aid award made? At YLS we make it a point to show on the aid award letter the entire progressive calculation: Budget minus Contribution (Student, Parent, Spouse) = Need. Need is first met by unit loan and then by Institutional Scholarship. You can see exactly how we are arriving at bottom line numbers. It’s all very transparent and equitably applied to all students. If you are going to do a direct comparison of aid awards you will need to understand exactly how each element of the award was calculated by each institution.

— The cost of living differential is critical. Many people focus on the tuition and fees in looking at their student budgets. But let’s talk about the importance of the cost of living allotment. The reality is that the cost of living allotment is the only part of the student budget which you can control (you can’t change tuition, fees or health costs or anything else that will be billed from the school) but you can live on less (and more ) that what is budgeted for living. So it’s important to understand how exactly each school calculates the cost of living and if it’s a realistic number. In the case of YLS we conduct a Cost of Living survey annually with all our JD students to assess how much they are actually paying for rent, utilities, internet, phone, food etc. This year (2014-2015) the average monthly cost for all living expenses was $1,631 which at a nine month academic year was an average of $14,679. And we presently budget $17,000 in our 15-16 academic year student budget so we provide a buffer for other expenses. Bottom line — we are pretty confident that the cost of living allotment is accurate and is going to allow you to make out okay here in New Haven.

— Another related issue is evaluating if increased scholarship support is only supporting a higher cost of living. For example, say you received $3,000 more in scholarship support from another institution than YLS but in looking at their Cost of Living allotment in their budget (assuming their budget includes that breakdown) you see that it costs $3,000 more to live there than the YLS New Haven allotment. You really haven’t gained anything in that extra $3,000 because it’s just going to pay for a cost of living differential.

We recognize that deciphering multiple aid awards (all usually looking different, calculated different etc.) is a challenge. We are always willing to talk about how YLS calculates our award.

“Delicious” Money Saving Tips And Tricks From One YLS Student

Inspiration for the blog comes in many forms. Take my change meeting with 2L Christina Coutu this past week who happened to see me with a container of my favorite Greek yogurt. Bonding over our mutual love of yogurt, Christina shared how in a purely cost savings measure she had taken to actually making her own yogurt. (Seriously you can make it? I thought it only came from the dairy case at Stop and Shop?). Christina said that when faced with the realization of how much she was spending buying those little individual yogurts she realized she could save some significant funds doing it herself. And she didn’t stop there.. .she also shared how she makes her own fast, affordable and healthy steel cut oats breakfast (in lieu of high cost cereals) and how she prepackages healthy snacks from home for munchies cravings while at YLS. Better than anything from Rachel Ray or Martha Stewart, here Christina shares her self-proclaimed “money saving tips and tricks in the kitchen” proving that budgeting can be done while here at YLS:

1. Make your own GREEK Yogurt.

What you’ll need:
* Crockpot
* Thermometer
* Milk (any fat content will work—higher fat = richer/smoother)
* Starter (1/2 cup per ½ gallon of milk of yogurt with live cultures)

Directions:

  1. Heat the milk in a saucepan on the stove or in a microwaveable safe container (in the microwave) until the milk reaches 180 to 200? F.
  2. Let the milk cool until it reaches 110-115? F.
  3. Once cool pour the milk into the crockpot.
  4. Remove one cup of the milk and whisk in the starter. Stir this mixture into the crockpot.
  5. Place thermometer inside the crockpot (you can simply crack the lid slightly). Cover the lid with a towel to keep the heat in.
  6. Check the yogurt after a few hours to see that the temperature hasn’t fallen below ~105-110? F. If it has simply turn on the crockpot (warm or low setting) until the thermometer reads 110-115.
  7. Leave the yogurt to sit for a total of ~8 hours, longer will yield tangier yogurt.

Notes:
* Once the yogurt has sat for ~8 hours you should have a layer of whey on the top. I like to pour this into a container and use it for banana bread (higher protein content than plain old water). This also makes the yogurt thicker.
* For extra thick yogurt strain it in a colander lined with cheesecloth, heavy duty paper towels, or coffee filters.

2. Make overnight steel cut oats for a fast, affordable, and healthy breakfast

What you’ll need:
* Add-ins of your choosing (suggestions to follow)
* Crock pot or regular pot
* 1-1/2 cups milk (any variety will do)
* 1-1/2 cups water
* 1 cup uncooked steel-cut oats
* 1/2 teaspoon cinnamon
* 1/4 teaspoon salt
* Optional garnishes:

Directions:

  1. Coat inside of slow cooker with cooking spray.
  2. Add all ingredients to slow cooker.
  3. Stir, cover, and cook on low for approx. 7 hours (slow cooker times can vary).
  4. Spoon oatmeal into Tupperware containers (1 cup portions are perfect) and store in the refrigerator for an easy grab and go breakfast.

*I like to pour ¼ cup milk on top, pop them in the microwave, and add additional toppings for a warm breakfast.

Mix-In Ideas
* Chopped apples, walnuts, and apple pie spice.
* Chopped bananas, cocoa powder, and slivered almonds.
* Flaxseeds, canned pumpkin, and pumpkin pie spice.
* Maple syrup and brown sugar.

3. Portion your own snacks into individual bags.

* Sounds easy enough but we’ve all spent way too much money on snacks because hunger strikes during a class break.
* Buy some Ziploc baggies and large sizes of foods you love—portion all of them at once and you’ll never have to worry about spending money frivolously on snacks.

A Few Great Snack Ideas:
1. Dry Cereal: Instead of paying $2 per serving for an individual cup of cereal in the dining hall do your own. A $4 box of cereal with 12 servings is just 33 cents a serving—saving you $1.67 every time you bring your own.
2. Nuts: Any variety will do but I love the flavored varieties.
3. Chips/Crackers: Just divide them up and pack some hummus for dipping.
4. Raw veggies and dip or hummus: Slice, portion, and bag them up. Grab a bag with a few tbsp. of hummus or dip if you prefer not to eat them plain. (mini Tupperware is great for this).
5. Raw fruit: bananas, apples, and oranges are great for packing.
6. Hardboiled eggs: boil a whole dozen at once.

There are great buys [Note: Christina cites Amazon] for stocking up on DIY snack essentials including: Food Storage Containers (less than $25 and great for your dips, oatmeal, and homemade yogurt), Thermometer (less than $5 and a must-have for yogurt) and the Crockpot (less than $25).

Any other YLS students have their own resourceful tips and tricks for living within the student budget? And yes .. I am talking to you… 3Ls… who have had three years of learning how to make a budget work for you. If so share them in the blog comments below or email them to our office (financialaid.law@yale.edu) as the topic of their own future blog posting…

Beyond Loan Repayment- “Big Picture” Financial Planning

Any of you who have ever been in my office may have noticed that I have two watercolor prints on my walls both of which are beach scenes. Why? It keeps me focused everyday on “the” goal…the little beach house in South (or North) Carolina that someday in retirement will be mine. It’s a tangible motivation and my continual reminder that I need to stick to a financial plan to get to that goal (because I won’t be transported down to Myrtle Beach by magic).

And to that point if you think post graduate money management involves only your loan repayment…it doesn’t. Certainly loan repayment is paramount to your immediate finances but it also needs to be coordinated and put in context with other more futuristic financial decisions. Because as you enter the “working world” you are going to be bombarded with a gazillion (yes that many!) financial choices particularly when you are faced with electing your employee benefits for health insurance, retirement, and life insurance, to name a few. And most likely you will be under pressure to make those choices and complete new employee paperwork asap so that you can begin your actual job. But the reality is that those short term decisions you are making now have significant long term consequences. So while you might be saying “retirement…but I just started this job”…the fact is that financial planning for the future needs to be on your radar now. (Need proof? A simple test is to use any of the 401K and 403B retirement calculators on the American Institute of CPA’s 360% of Financial Literacy site to compare what happens if you begin saving at age 25 vs. 35 vs. 45 etc.).

So it’s in your best interest to learn as much as you can about financial planning so that when you are faced with these choices, you can make the best ones. Financial planner John Caserta is a longtime friend Yale Law School who has presented workshops and has offered one-on-one counseling to YLS students to help them get their financial house in order post graduation. Check out John’s article on “Why some people may never find financial freedom“ for some key do’s and don’ts of beginning the financial planning process as a young professional.

As an extra bonus…John Caserta will be visiting YLS on April 11th and April 17th (12:00-5:00 p.m.) to offer complimentary individual counseling sessions to our students. These are meant as basic introductions to planning and students at all levels of “financial expertise” are encouraged to attend. You can sign up for your session with John by emailing financialaid.law@yale.edu – space is limited. Take advantage of this opportunity because when it comes to financial planning…the future really does start now.