by Jill Stone -

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.

by Jill Stone -

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.

by Jill Stone -

“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…

by Jill Stone -

Beware of Student Loan Debt Management Scams…

I am writing to make you all aware of what is out there. I was reading a whole bunch of financial aid information which I receive daily through my email and an article sparked my attention. It was about so-called debt management companies claiming that they can help graduates “manage” their student loan debt. The sad reality of this is that people really do fall for these sorts of things. I guess maybe because it is easier, faster, etc. Why do I need to invest my time and energy into this…they (debt management co.) can handle it and that is why they contacted me, to “help” me. And what is the old saying, “if it sounds too good to be true, it probably is.” So I am writing again (my last blog was Scholarships and the Bewares) about the newest bewares about debt management companies claiming that they can help you manage your loan debt.

Now, would you ever just give your social security number to a stranger? Why not? I am hoping the very first thought that popped into your head was, “NO!” What if you were ever contacted by a debt management company that wanted your personal information (a big red flag should start waving in front of you right about now), and asked you for your federal PIN (personal identification number)? How about that one? Oh goodness…again, I am hoping your first thought was “NO!” NEVER release your federal PIN number to anyone – your PIN holds valuable information of your personal records – and always keep your PIN in a safe place! Think about it, this PIN is used to log onto the federal government’s website, and when you are logged in, what sort of data comes across the screen? Yep, ALL of your personal information, right?

So another beware is that the debt management companies claim that they can help students manage their student loan debt for a small FEE (the fee is set based on the loan debt). OH boy…a fee???? Okay, hope you are paying attention so far because what did I mention in the paragraphs above? I mentioned a red flag, the answer no, any of those ring a bell? I am sure hoping so because no one should pay a fee for something that can be handled by oneself.

The laugh is on them though, there is no reason to hire a debt management company for your loans, you know why? It is definitely something that you can handle yourself and I am going to help you get started and get through it!

I know what you are thinking…loans, plans, repayment, what call do I make first…where to begin? Well, a great website to review – www.studentaid.ed.gov helps you with calculating, managing, picking a repayment plan that best fits you, etc. Also available on the site are calculators to help figure out the monthly payment calculations based on the plan you chose.

Another helping tool is NSLDS – National Student Loan Data System – http://www.nslds.ed.gov/nslds_SA/ is another great place to grab all of YOUR loan information needed regarding your student loan debt. Remember, when you borrowed your financial aid, you most likely borrowed from the Department of Education (federal government) but the federal government wants nothing to do with the loan business, so what they do is “hand off” your loans to a servicer to maintain. The Servicer is your maintainer, helper, guide, problem solver, etc. The servicer that is appointed to your account will be there for the duration of your loan repayment and is there to help with any and all questions you may have now and in the future. And like I mentioned earlier, this is all done for FREE! Yep, FREE!

But now for the best part…the Financial Aid Office is hosting a workshop on Monday, March 11th – LOAN REPAYMENT STRATEGIES: PICK YOUR PLAN (right here at the Law School). If you have not signed up to attend this particular workshop, you are missing out on some pretty cool information regarding loan repayment, asking the right questions regarding your own situation, when does it all start, how much are the monthly payments, etc…all that good stuff (including pizza and dessert too!) It is a great way to obtain all the knowledge possible because what if someday you were contacted by one of these scammers, you will be ready to cut them off at the pass and not fall for their gimmicks. Ha!

My best advice is to NEVER, NEVER, NEVER accept any entity’s help that charges a fee, asks for personal information, asks for anything that you are not comfortable with, or is there to “help” with your student loan debt management…only go to those you trust….like the YLS Financial Aid Office!

We are always here to help at any time, during and after YLS! Come by; ask question after question. We are here for you!
Office – (203) 432-1688
Email – financialaid.law@yale.edu
Street Address – 127 Wall Street, Rm M13

Come by…anytime!
“Happy Graduates, Happy Alumni”

Kellie signing out…

by Jill Stone -

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.

by Jill Stone -

Loans and Literacy

In December, the Federal Reserve Bank reported that student loan debt had increased to $956 billion, more than auto loan debt or credit card debt. For many, it was the culminating benchmark in the ongoing student loan crisis which sees (as reported by FinAid) the total student loan debt increasing at an overwhelming rate of $2,853.88 per second.

The conundrum for need based institutions like Yale Law School is that student loans also serve as a key element of access for many students. Loans are an essential part of our students’ total financial aid support packages which ultimately allow them the means to attend YLS.

What we must do then to respond to this debt vs. need loan paradox is to make certain that our students are what we term “savvy financial aid consumers”. It is our obligation to support our students while enrolled and after graduation in making the best financial choices about their borrowing and repayment.

To that end, we have extended the outreach of the Financial Aid Office to include an essential financial literacy initiative. As part of the program, our popular Financial Literacy Lunch Series provides interactive workshops on a variety of financial management topics presented by experts in the field. Programs targeted to our 1L and 2L students focus on effective budgeting, strategies to minimize loan borrowing and the benefits of maintaining good credit. Workshops for our 3Ls assist with their transition from YLS with sessions focused on choosing the right federal loan repayment plan specific to their needs, effective participation in our own loan repayment program, COAP, and an overview of “real world” finances (retirement, insurance, investment options). And our workshops refute the old financial adage that there is “no such thing as a free lunch” by including pizza (and dessert) for all in attendance. (YLS students know that you never turn down a free food opportunity!). You can find our full slate of current spring 2013 term workshops on our Financial Aid Calendar.

Another key component of our financial literacy efforts is the delivery of one-on-one counseling to our students. Because of Yale Law School’s small enrollment size, we have the ability to work with students on a very individualized basis to develop both short term (living on a budget while in school) and long term (multi year loan repayment) plans. In particular, we offer our 3L students a comprehensive “exit” counseling session where their entire loan ”portfolio” is reviewed, their projected loan payments under the various federal repayment plans are compared, and their estimated COAP support is graphed over a 10 year eligibility period. 3Ls can also take advantage of a complimentary consultation with a financial planner to discuss their broader fiscal strategies beyond their loan repayment.

Our financial literacy support also extends beyond our currently enrolled students. Our office naturally keeps in close contact with graduated YLS students through the 10 year eligibility of the COAP program, but all alumni are welcome to reach out to our office any time. Perhaps a life circumstance has changed which allows a faster repayment of your loans? Or you would like to know the best way to restructure your loan repayment given new found family commitment? Or you just need assistance negotiating the ever evolving federal repayment programs (like the new federal Pay As You Earn program which just began in December). We encourage alums, no matter how many years out from YLS, to use our office for support and advice on any issues related to their law loans.

Ultimately, the Financial Aid Office’s commitment to comprehensive financial literacy allows our YLS students (and alums) to not only manage their student loan debt effectively, but also build long range financial plans which support their goals and aspirations.

by Jill Stone -

The Means To Live Within Your Means

I could give a million and one euphemistic quotes on saving money. My personal favorite: “if saving money is wrong, I don’t want to be right” from that wise sage William Shatner (presumably as the Priceline Negotiator and not Captain Kirk).

The bottom line is that as a YLS student we expect you to live within a budget and,as such, assume that you will need to modify spending and make financial sacrifices along the way. The same budget or Cost of Attendance must be applied to all students within the same degree program. Why do we do this? Because the Department of Education Title IV federal regulations which allow us to disburse federal loans dictate that we must do this… “students must be awarded on the basis of a Cost of Attendance comprised of allowable costs assessed all students carrying the same academic workload”.

What the regulations do allow is that every school can develop their own budgets based on estimate “allowable” costs specific to their institution and their student populations. In the case of YLS we do something that not every school does… each year we survey our current students on their primary “living” costs to ensure that what we are allotting for this expense is (again as defined by the federal regulations) “reasonable”.

This year 44% of our current enrollment (including both JD and Graduate students) responded to the “Cost of Living” survey (up from 38% last year). That’s a very good response rate and as such probably gives us a pretty accurate sampling. Aside from the obvious data on “rent” or housing we individually poll on a variety of other expense types including utilities, phone, cable/internet, food and local transportation. We average those individual expenses by type and then add them together to determine a typical inclusive “monthly” expense which we can then project for the nine month academic year to determine an average “cost of living” . The result for 2012-2013 is:

COL Table Black White

The survey also yields other interesting facts on how YLS students live which we factor into our decision on the cost of living allotment:

  • The majority of our students (35.6%) make the decision to live alone and, as such, are most likely incurring higher monthly costs (Although we did see a slight increase (18% to 22%) in the number of students living with two or more roommates from last year to this year’s survey).Col Living arrangement Chart 3
  • Most students are paying rents in either the $600-$800 range (31%) or $800-$1000 range (25%) Though we did see an increase (from last year) in the number of students at the extreme low end $400-$600 of the rent scale. Again in the survey rent was defined as the portion of the monthly payment that you personally are responsible for.
  • Surprising (to me at least) …our 1L students have the lowest total living costs per academic year ($14,031) while our 3Ls have the highest ($16,074). I would welcome feedback on the blog from 3Ls as to why that occurs.COL by class color version

The survey also monitors some additional expenses including books/class supplies where the average of $849 per year is within the $1,000 allotment already included in the student budget as a separate allowance. Average childcare costs in the survey were $10,377 per year and YLS presently allows an additional $17,500 in childcare costs to be covered by non COAP eligible loans.

Finally, the survey asks an open ended question regarding “what other ongoing expenses do you have not captured elsewhere on the survey”? There is always a great diversity in the answers to this question – my personal favorites this year being the response of “Gym, Tan, Laundry” (did you seriously think you could slip a Jersey Shore reference in there and I would not get it?) .

Of these “ongoing expenses” the most common response was Travel- particularly as cited for the holidays and to visit significant others. YLS specifically budgets an equitable travel allowance into all student budgets based on home state (as reported on the Need Access application or FAFSA.) The allotment is based on making two roundtrips- getting to YLS in the Fall, going home for the holiday break in December, returning to YLS in January and going home at the end of the academic year in May. Any other travel beyond that schedule is a personal budget choice. However always be aware that if emergency travel or if a personal crisis arises which necessitates travel, we can exercise professional judgment based on a justifiable expense to increase the travel allotment. As much of a romantic as I am, visiting a love sick significant other does not constitute “emergency” travel.

I also want to address a survey comment that YLS cost of living is less than other Yale Graduate and Professional Schools. The reality is that we have one of the highest cost of living allowances because on top of the basic living expense we build travel and books/supplies as separate budget items. Most of the other G&P schools are incorporating those costs in their general living allowance.

So… the reality is that the current $17,000 allowance well surpasses the average costs of $15,003 per academic year as documented in survey and provides a buffer of almost $2,000 to support those other “ongoing expenses”- however you may prioritize them. As such, we feel the $17,000 living allotment, in addition to the travel allowance by state and with the book/supplies allowance of $1,000, meets the federal guidelines as “reasonable” expenses for the 2013-2014 student budget.

Does it meet your own personal needs? Maybe not. Does it allow you to maintain a standard of living to which you are accustomed? Maybe not. But it’s still an equitable allowance to live “like a student” for the short time that you are here in New Haven. Will you need to make some sacrifices or make priorities? Probably. Is it going to be a challenge to live on what is essentially “fixed income&rdqurdquo;? Most likely yes. It is going to be a difficult to receive an influx of funds at the start of a term (no more weekly paychecks) that then has to stretch for several months? Of course. Ultimately will you need to carefully budget your funds? Absolutely yes.

And that’s also where the Financial Aid Office comes in… to support you as you face the potential challenge of living within that allowance and to assist you in that budgeting process. Our office has many budgeting tools and web resources that we can share with you. We can also sit down with you through one on one counseling to actually develop a personal budget based on your own financial aid, your expected refund and your monthly expenses. We also offer workshops throughout the year which provide basic budgeting how tos, manageable spending tips and credit dos and don’ts .

Because despite the preconceived notion that the budget in some way “hinders” you, the reality is that the budget parameters actually “help” you minimize your overall loan borrowing and , ultimately, ensures that 25-30 years from now you are still not paying off the lifestyle “choices” you made in law school .

by Jill Stone -

The “Execution” of YLS Financial Aid- A Welcome Message for the Class of 2016

With our Class of 2016 beginning to take shape, I thought it was appropriate to reach out and extend a welcome on behalf of the YLS Financial Aid Office. You’ll find our office tucked in the York St./Grove St. corner of the Law School in M13. In order to get here, you’ll have to pass through one of the Law School’s carved stone archways. But this one has a very vivid depiction of a man with a head in the guillotine and the executioner above (with a big smile on his face no less). Will that be symbolic of your financial aid experiences at YLS? Is there a little foreshadowing going on?
executionLet me give you all assurances that it will not be. Here is my solemn promise of no beheadings. I do, however, reserve the right to fill the moat outside my office with small alligators. (Yes, there is an actual moat outside our office windows).

Because for us, financial aid at YLS is a very personal process. Our small class size allows us to not only carefully review all the application forms and documents you submit , but also reach out to you directly if we see something that perhaps was done in error or doesn’t make sense. We also recognize that applications and forms may not truly capture unique personal circumstances and as such, encourage you to contact our staff and share those situations that may impact your aid award. And because managing financial aid may be a whole new world for you, don’t ever hesitate to ask the most basic questions related to the application process or the aid award itself.

Our office believes we have an obligation to ensure that our students are “saavy financial aid consumers” – we want you to understand the financial decisions you are making while in Law School, know the options and choices you have, and also leave here with a plan for how those financial decisions you made will then impact your life going forward. That’s why we counsel students not only as they enter YLS but all through their enrollment (and beyond because of our loan repayment assistance program COAP).

All Financial Aid Offices have their own “culture” and ours is to have an open door policy – literally the door in M13 is always open. You don’t have to make an appointment (although it helps), you can drop by and you won’t have to go through a “gatekeeper” to reach either myself or our Assistant Director, if we are available, we will welcome you in and try to help in any way that we can.

Because the real secret is this…I have the open door policy for a very selfish reason. The best part of my day is actually when I get the chance to sit down with a student and chat. Far better than preparing aid estimates on Excel charts or running statistical analysis. It’s those counseling sessions where I get to know our wonderful (and they are) students on a different level than just a paper financial aid application or a tax return. And FYI- we always have a full candy bowl in the Financial Aid Office as another temptation to drop by…just to say hello and grab a handful of chocolate. (Trust me, you may need that sugar rush some days here).

So by way of further introduction, (yes we are indeed real people and not robots processing aid applications) … here are the folks you will come to know in YLS Financial Aid… …Roselyn, our Senior Administrative Assistant, is our office historian having been at YLS for 14 years (she has truly seen it all!) and, more importantly, is the undisputed “Queen of COAP”– our loan repayment assistance program. Kellie, our Assistant Director, came to YLS after spending 18 years at Yale Student Financial Services (so she is a great resource for dealing with that office on billing and loan issues) and now, in addition to making aid awards, also coordinates our Summer Public Interest Fellowship program. Fun fact about Kellie…she is an avid gardener and baker- two indispensable skill sets for the workplace! And myself, Jill, the Director, a relative newbie to YLS having joined the staff in 2011- returning to financial aid after a few years away in the student services field because I actually (gasp!) missed financial aid. Want to strike up a conversation with me (aside from talking about financial aid)- bring up college basketball (I live for March Madness!), cats (my husband fears I am well on my way to being the “crazy cat lady” of the neighborhood) or yoga (Om!) .

So now that you know us, it’s time for us to get to know you. We look forward to the opportunity to email, talk and meet as you begin and move through the financial aid process.

Just a reminder that we have a new website “ How to Apply for Financial Aid- New Admits” which will hopefully walk you through the aid award process. And this is the time when you should be submitting your FAFSA and Need Access application if you wish to receive a provisional financial aid award letter.

by Jill Stone -

Deck the Halls and Pay Your Rent

As we approach the holiday season, I wanted to throw a very blunt reminder out there that holiday shopping and gift giving were never a part of your student budget.

There is no denying that those Black Friday sales after Thanksgiving or even cyber Monday sales are incredibly tempting. But the reality is that if you are living off your financial aid refund, you are on a “fixed income” (you didn’t even have to wait for social security to achieve that status). You have a set amount of money meant to last you from September 5, 2012 all the way to January 23, 2013 (the earliest date that your spring funds can disburse to your student account). To make it even more challenging…the Fall term is about 23 days longer that the Spring term so you have to stretch those Fall funds even further than you will have to in the Spring.

And what is the biggest challenge you are going to face in making those funds last…most likely January rent. I received many, many emails last year (particularly during the week between Christmas and New Years) from students who had little or no funds for their January rent payments and turned to our office for help. The reality is that our office is limited by federal financial aid regulations under which we cannot disburse your spring funds any earlier than three business days before the start of the term and in doing so, the earliest you can receive a refund on the SIS system is the first day of term.

So if you do find yourself in this January rent situation during that final week in December (or foresee even now that this may happen to you), my advice first and foremost will always be to talk to your landlord as soon as possible and explain the situation. Let him know you are fully supported by financial aid, that the next disbursement will be transferred to your own personal account most likely on the first day of the spring term (give them an actual date) and how much you are expecting to receive (if you have difficulty estimating that please ask our office to help). If the landlord requires additional documentation, the Financial Aid office can always write a letter confirming what you have told him about the amount of your spring disbursement and when it should be in your account and for your disposal. Contact our office as early as possible before your rent is actually due to get this letter (keeping in mind that Yale as a whole and our office is closed the week between Christmas and New Years). In the majority of cases, we have found that with the right information and assurances of payments, the landlords seem willing to work with you. Chances are if your landlord has rented to students before he may already be aware of this challenging cash flow issue that all students face.

But rent may only be part of the battle if you return to campus after break with little funds available. (There is always that small issue of actually needing money to eat as well- unless you have strategically hoarded enough holiday gingerbread men to get you through mid January). That’s why it’s critical to budget right now- not come the end of December when you may be in crisis mode. And despite rumors to the contrary “budgeting” doesn’t have to be a complicated spreadsheet involved process. Just take a few minutes to review what funds you have left in your personal account(s) at this very moment in time, then project what funds you will need (through January 23rd!!) to pay both primary living expenses (i.e. those fixed costs you must pay like rent, utilities, phone, etc.) and secondary expenses (i.e. those expenses you can control to a degree…like food, transportation, etc.). Any excess funds you have not allocated to pay the primary and secondary expenses are available to you to make whatever holiday cheer you choose.

And if you don’t have a lot to spare – don’t despair… just be a little more “creative” in your gift giving approach this year. Remember those “ coupon books” you probably made for your parents in grammar school (i.e. “This coupon good for 1 take out the trash”, “This coupon good for 1 wash the dishes” ) can easily be updated (i.e. “This coupon good for 1 hour of future legal services”). Use your talents to make gifts yourself or support some of our great local crafters (did you know that YLS even has its own craft fair on November 30th?).

I fully acknowledge that celebrating the holidays with limited funds will be a challenge, but if you need a reminder, just watch any of those classic holiday specials that will begin running shortly on a continual TV loop … Charlie Brown, Scrooge or (personal bias) The Grinch, to get the morale of each and every story…that it’s not the gift but the thought that counts (and will help your budget).

Trust me, your family and friends will completely understand that today you are living like a student and making some tough financial sacrifices so that tomorrow (or in the not too distant future) , you can graduate from Yale Law School and that will probably be the best gift (holiday or otherwise) that you could ever give them.

by Jill Stone -

Pay Attention to the “Pay As You Earn” Loan Repayment Option

Hot off the press from the Department of Education is a new addition to your loan repayment plan options. And pleasantly this plan has a much more descriptive and understandable name that the other plans (i.e. Standard, Extended, Graduate Extended etc.) – it is quite simply “Pay As You Earn”.

“Pay As You Earn” is a new income based payment plan akin to the existing Income Based Repayment (IBR) or Income Contingent Repayment (ICR) plans. “Pay As You Earn” is generally considered the most “generous” of the repayment programs and was announced by President Obama last October acting as one of the cornerstones of his student loan relief efforts. Final regulations on the program were issued by the U.S. Department of Education last week and the specifics of the plan are already up on the DOE student loan website.

“Pay As You Earn” is really an accelerated version of the existing Income Based Repayment program. Whereas IBR was based on making loan payments equivalent to 15% of your discretionary income (as calculated by the DOE) Pay as You Earn drops that payment to 10% of your discretionary income. Also whereas IBR forgave any existing loan balances after 25 years of consistent payments, Pay As You Earn will forgive significantly earlier at the 20 year mark.

The key to Pay As You Earn is not just determining if you can meet the “partial financial hardship” qualification (based on loan debt to income) but also have specific eligibility based on your loan portfolio. To qualify you must have taken out your first federal loan after September 30, 2007 and you must have also received a loan after September 30, 2011. As such, if you are a current YLS student with just law debt you more than likely meet that standard.

But just like Income Based Repayment there a couple of things to be wary of with Pay As You Earn. First if you r payments based on income are calculated so low, you may not be keeping up with the interest building on your loan and may have negative amortization. Second, the forgiven amount at the 20 year mark can be a taxable occurrence in the calendar year when the forgiveness occurs (increasing your tax liability significantly). Finally, if you have any FFEL loans (federal student loans provided through private lenders) those cannot be repaid using Pay As You Earn (although they will be counted in your total loan debt to determine the financial eligibility hardship). If you are not sure if you have FFEL loans- check your loan history at the National Student Loan Database.

And Pay As You Earn is already stirring up some controversy among critics who feel it is primarily benefitting those graduate and professional students with high loan debt (with some specific references to Law students) more so than undergraduates.

Very high hopes have been placed on Pay As You Earn to revolutionize student loans repayment and significantly impact the student debt crisis. Referencing the Pay As You Earn initiative, former President Clinton himself stated that “this will change the future for young America”.

Right now the DOE readily admits that its biggest challenge is simply getting the word out there that this new repayment option exists for both current and new borrowers amongst the myriad of other loan repayment programs they offer.

For more information – view the DOE Pay As You Earn information sheet or use the Pay As You Earn calculator to estimate eligibility and loan repayment. If you have questions on your eligibility, use of the calculator or how this program may work for your personal law debt, stop by the Financial Aid Office for one on one loan counseling.