Tagged: financial literacy

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.

New Year? Time For Your Annual Credit Report Checkup

Turning the calendar page to January (seriously does anyone even have a paper wall calendar anymore?)  is the perfect time to think about getting your credit report.  (Huh?)  Because you are entitled to a free credit report once a year and why not use January 1 as your own annual reminder.

credit reportThinking that you don’t really need to worry about your credit score until after you graduate? Think again… that federal Grad Plus loan that you may have opted to borrow is reviewed for credit eligibility each year.  So that means that a small credit slip (late bill etc. ) in your 1L year  could make you ineligible for the Grad Plus for your 2L  year.   Are you considering taking out a Bar Loan to help support your living expenses while studying for the bar?  Bar loans are only offered by private lenders and all are credit based -not just for their overall approval but also in determining what your interest rate will actually be.  (i.e. good credit = low interest rate and bad credit = high rate).  Want to take advantage of the new  refinancing options on your student loans that so many lenders are new offering- those interest rates are credit based as well.  Even potential employers will review and factor your credit into the hiring decision.

Here is how this works… there are three nationwide consumer credit reporting companies- Equifax, Experian and TransUnion.  You can get a  free annual report from each one of the credit reporting companies  once every 12 months.    So there are two possible strategies…

  1. Order the report from all three companies at the same time so that you can determine whether any of our files have errors across all three agencies.
  2. Request the reports separately for each credit reporting agency at various intervals so that you can monitor your credit files more often throughout the year.

No matter if you want the report from Equifax or TransUnion or Experion- you order it from one place- www.annualcreditreport.com.  That URL is the only one that will provide the report for free. (You may have seen ads for other sites with names that make you think the credit report is free but it is not).

What will your find on the credit report? Basically the report  contains information about your credit accounts including how much credit you have vs. how much credit is available to you vs. how much credit you are  actually using. There will also be information on your bill repayment history and whether a debt or bill collection is in place against you.

What won’t you find on the report?   Well surprisingly  you won’t find  an actual “credit score” You will need to purchase a credit score directly from the credit reporting companies. But since that score is based on all the information from the credit report it is still incredibly valuable to review the report and make sure there are no inaccuracies or errors which can hurt the calculation of the  credit score.

What do you do if you find something wrong on the report?  Fix it asap so that it doesn’t harm your credit in the long term.   To correct an error reach out directly to the credit reporting  company and fill out one of their dispute forms.  Know that the agency must investigate and respond to you within 30 days.

Does asking for the report itself “ding” your  credit? No, self-inquiries do not affect your score, as long as you order your credit report directly from the credit reporting agencies, or through an organization authorized to provide credit reports to consumers (like annualcreditreport.com)!

So start the New Year right – begin by  getting  a copy of your credit report  atwww.annualcreditreport.com.   You may need that good credit in the not so distant future!

Contact Info for the consumer credit reporting companies:

  • Equifax: 1-800-685-1111 or www.equifax.com
  • Experian: 1-888-397-3742 or www.experian.com
  • TransUnion: 1-800-916-8800 or www.transunion.com

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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”!

A Belated Federal Update, or, What I Should Have Been Writing About… But Didn’t

Ouch! Has it really been 6 months since I last wrote a blog post. Well just because I was inactive doesn’t mean that the great student loan debate didn’t rage on. Congress and the administration seemed to be in a particular frenzy these past few months in trying to come up with solutions to the “student loan crisis”. Much of the fury has been the result of the pending reauthorization of the Higher Education Affordability Act (up for renewal in 2014) and some of the proposal may really just be “marker bills” with more of an intention to “promote” the idea than to actually see any immediate action taken on it. So although nothing has been approved or adopted (yet) and some have already died… here is a sampling of some of the scenarios that are at least making the rounds on the Hill which could (significantly) impact your loan repayment future:

  • ExCEL Act (Earnings Contingent Education Loans Act) – originally proposed by Rep. Petri (R-WI) in the 112th and 113th Congress (and co-sponsored by Rep. Polis (D-CO)) – this bill creates a single student loan program (no more Unsub vs Grad Plus vs. Perkins) that is repaid on an income contingent basis (15% of income above 150% poverty) and would use employer withholdings to make payments. In addition interest would stop accruing on the loan when the total amount of interest accrued (paid and unpaid) equals 50% of the loan’s balance when it entered repayment.
  • Dynamic Student Loan Repayment Act – introduced by Senator Rubio (R-FL) and Senator Warner (D-VA) would replace current loans, subsidies, deferments, forbearances, and repayment options with a single loan called the Income Dependent Education Assistance (IDEA) Loan, and would be repaid through income-based repayment and employer withholding.
  • Financial Aid Simplication and Transparency (FAST ) Act – proposed by Senator Alexander (R-TN) and Senator Bennet (D-CO) – streamlines student loan repayments into two options- 10 year repayment or income-based repayment (eliminating the present Graduate Repayment and Extended (25 year) repayment options ). Also established a one loan (for undergrad and graduates) program.
  • Investing In Student Success Act – introduced by Rep. Petri (R-WI) and Sen Rubio (R-FL) establishes a regulatory framework for income share agreements. (What do income share agreements have to do with student loans you ask? It applies to those cases when individuals/organizations provide students with funds for their education in exchange for the student agreeing to make payments linked to their income after graduation) .

The other hot Beltway topic continues to be the future of Public Service Loan Forgiveness (PSLF). The President’s 2015 Budget Proposal called for capping the (currently uncapped) total amount of loan forgiveness under PSLF to $57,500. (Why $57,500? Because that’s the current aggregrate, undergraduate loan limit. ). The proposal would also limit qualifying payments for PSLF to only income drive repayment plans . More significantly it would calculate married borrower payments for income drive repayment (and therefore PSLF eligbility) on combined household Adjusted Gross Income. This would close a gap in the current regulation which allows a borrower if married to complete their taxes as “married filing separately” using only their AGI to calculate the income drive loan repayment amount. (A huge benefit if the borrower is working for relatively low income (i.e. public service) while the spouse may be making a significantly higher income). The Republicans countered with the GOP Tax Reform Act of 2014 under which the loan debt forgiven in year ten of Public Service Loan Forgiveness would now become a “taxable event”- i.e. you would need to declare the monetrary“value” of the amount forgiven as income on your tax return (and be taxed on income that technically you never received but had “in theory”). Keep in mind as well that we have yet to see the first group of borrowers step forward for their actual forgiveness (that won’t happen until 2017.

Want another example of how really far the politicizing of student loan debt has gone… Check out this recent ad from the College Republican National Committee parodying one of my favorite television shows- “Shark Tank” (Posted here only as example of the level to which this issue is now political fodder not for any political affiliation or endorsement ) But it does get you thinking .. with seemingly every one in Washington throwing out ideas on how to solve the student loan crisis… maybe it is time to turn to the “Sharks” to get this done.

What is truly important…in the New Year?

At this time of the year, we all look back at the past year, what happened, what did not happen, what we will change in the upcoming year and everyone thinks about going on a diet! But what is truly important?

2014Good question, huh? What is important to one may not be so important to another, right? But what if that “important” was bothering you and you are unable or afraid to talk about it or bring it to someone’s attention?

Some problems or issues can be as small as a grain of sand but depending on the problem or issue that is bothering you, it can feel like the size of Mount Rushmore. Am I right? And what if the issue/problem/stress is just too much to handle? What do you do? There is always a huge relief to talk things out, get feedback/advice/suggestions. When you talk out loud and actually hear what you are talking about, it may help. You may find you feel better and possibly at the same time, find that it can be worked out.

January starts off a new year…let’s try and find things that make us happy, ease the stress, talk things out and to those who can help, etc. Let’s start off the new year on an upbeat note which can only bring positive vibes for the upcoming year!

Spring term 2014, the financial literacy sessions resume (four in total). Two significant sessions that should not be missed are about Yale Law’s Loan Repayment Assistance Program – COAP…Session I – Coping through COAP, Monday, March 24th (giving you the basics on the process) and Session II – COAP in Action, Wednesday, March 26th (giving you a more detailed narrative on how it works for you and your household). For those of you who are 3Ls…be sure NOT to miss either one! As always, great food will be served!

Spring is also the time 1Ls and 2Ls are getting ready to finish out the term and looking forward to summer. Possibly thinking of using summer funding (SPIF) for the public interest, non-profit positions…2Ls may repeat SPIF or may want to venture into a firm position and 3Ls are getting excited because spring term 2014 is all that is left before graduation! Believe it? Three years here at Yale Law are coming to an end. The next chapter of your lives will soon begin.

For 3Ls, it would be in your best interest to make an appointment to meet with the Director of the Financial Aid Office, Jill Stone, who will review your loan debt, the repayment process, repayment plans (which is best for you), know what to expect after graduation, COAP, etc., which can all be tricky especially if you are new to the repayment process. Jill has posted a new blog for our 3Ls in regard to all that I just mentioned. Please review; make an appointment and be sure to bring all of your questions!

The Financial Aid Office is always here to help. Please call or visit us at anytime…our door is always open. We are located straight across the courtyard, up the stairs, pass the childcare center…once through the door…you will find us straight ahead! Visitors are welcome at all times!

Happy New Year…we are looking forward to seeing you soon!

Kellie signing out…