How to Avoid Expensive First-Year College Student Mistakes

by Melissa Brock | Jun 25, 2025 | Ask the admission office | 0 comments

Between adjusting to a new environment and trying to stay on top of classes and everything else college throws their way, some students make choices that cost them more than expected. They don’t always make major errors — often, it’s small oversights or assumptions that add up. Getting ahead of these problems early can help students avoid long-term financial and academic setbacks.

There’s no single rulebook, but there are patterns stuck on repeat. Being aware of them now can help reduce stress later. Below are five common money mistakes to avoid in college that cost students money, time or both — and what you can do to steer clear of them. (Because trust me, you’re going to want to!)

How You Can Overlook the Real Cost of College

Every student deals with the cost of books, course supplies, software, daily transport, personal items and meal plans. These costs crank up fast if you don’t have a plan.

America’s total student loan debt has reached a staggering $1.777 trillion as of 2025, with the average federal student loan balance standing at $38,375 per borrower. This number continues to grow as students take on more debt for both tuition and living expenses.

Learn more: Why is College So Expensive in the United States?

Not Understanding the Actual Costs

It’s important to go beyond cost-of-attendance calculators by doing things like: 

• Track spending during the first few weeks of school. 
• Compare actual expenses against expectations. 
• Adjust monthly budgets from there. 
• Don’t buy new textbooks without checking for cheaper alternatives.

Digital study guides and open-source materials offer strong alternatives. Many instructors are flexible about where the materials come from, as long as the content is correct. Avoid impulse tech purchases unless they are required for class, because these decisions can shape financial stress levels for the rest of the year.

Learn more about hidden fees that might jump out at you.

Underusing Available Support

Some students try to do everything alone. While independence matters, ignoring support options often leads to poor results, such as paying to repeat classes or taking summer credits to catch up.

Academic support doesn’t always look like formal tutoring. Peer-generated tools, shared lecture notes, and well-organized study material can make a difference. Students use these to fill knowledge gaps or prepare for finals when lectures don’t stick.

Platforms like Studocu offer thousands of real student-uploaded study notes, summaries and exam prep files for a wide range of subjects. These resources often include past tests, flashcards and topic breakdowns that save hours of frustration. Using a mix of materials helps students find the best approach for them. Relying only on official slides or one professor’s teaching style can create blind spots.

Ignoring Scholarships and Grants

Plenty of students give up on applying for financial aid. Some think they won’t qualify, and others believe the process takes too long or isn’t worth the effort.

The truth is that new scholarships open throughout the year. Some are based on GPA, but others depend on community involvement, field of study or even unique hobbies. Set a recurring reminder once a month to check your college’s financial aid page and trusted third-party sites and track deadlines on a calendar or planner.

College majors with the highest shares of federal grant money include health (18.4%), humanities (16.3%) and business/management (15.9%). Meanwhile, over 66% of students with above-average SAT and ACT scores receive private scholarships, and STEM students are 5% more likely to receive scholarships than non-STEM students.

Maintaining academic performance opens doors to more awards. Using study help resources increases confidence and performance, improving merit-based funding eligibility. Even small scholarships can add up to hundreds of dollars saved per term.

Credit card companies often target first-year students. While having a card for emergencies might feel helpful, it’s easy to overuse it without a clear repayment plan. Interest rates can spiral if balances aren’t paid in full.

A 2024 national survey revealed that 59% of college students have considered dropping out due to financial stress, with nearly 80% reporting that finances negatively impact their mental health. This financial pressure often leads to increased credit card usage and debt.

Before signing up, compare offers from banks and credit unions. Read the terms carefully. Avoid cards with high fees or low limits. Use student-focused financial literacy tools — many colleges offer them for free. These teach interest calculations, budgeting and long-term planning.

Federal student loans come with better terms than most private options. Use them wisely. Take out only what you need. Pay attention to how much you borrow each semester, not just the total over four years. That awareness sets the tone for manageable repayments after graduation.

Learn more about ways to get college paid for and how to reduce college costs.

Skipping Course Planning and Academic Advising

Assuming you can figure out course planning solo is risky. Degree programs come with required credits and prerequisites. Going it alone can leave students short when they’re ready to graduate.

Schedule a meeting with an advisor each semester. Ask about course sequences, when they’re offered, and how choices impact future semesters. Some classes are only available once a year. Missing one can delay graduation by a full term, which adds more tuition and housing costs.

Advisors can also help identify minors, electives or certificates that match core classes. This saves time and strengthens transcripts. Degree audits, which show which credits still need to be completed, are another tool worth reviewing each term.

Missing Out on On-Campus Jobs and Low-Commitment Income Options

Many students overlook easy ways to bring in money while studying. On-campus jobs are designed with student schedules in mind and often offer more flexibility than off-campus alternatives. Positions in the library, student union, labs or academic departments usually don’t require long hours but provide steady income and a built-in safety net if academic priorities shift. Studies show that students who complete internships are 32% more likely to receive job offers after graduation, and those who land full-time positions can expect starting salaries $15,000 higher than non-interns.

Work-study programs are also available to those who qualify through financial aid applications. These programs don’t reduce tuition directly but help cover ongoing costs like food, transport, or supplies. Earning a small, predictable income helps reduce how much students rely on credit or loans.

Stay Focused and Save More

Financial and academic planning doesn’t have to be overwhelming. Students who take small steps, check budgets, apply for aid and use smart study tools can avoid many big, expensive mistakes that catch others off guard.

Use what’s already available. Speak with advisors. Make use of shared study platforms and course materials. Keep looking for ways to cut costs without cutting corners on quality or performance. Small changes now can lead to less debt, better results, and more flexibility later on.

Learn more: Ways a Tuition Payment Plan Can Help You

FAQs

What is the 50/30/20 rule for college students?

The 50/30/20 rule is a budgeting guideline that helps students manage their money by dividing their income into three categories:

• 50% needs: Rent, groceries, transportation, tuition, and essential bills.
• 30% wants: Eating out, entertainment, hobbies, and non-essentials.
• 20% savings and debt repayment: Emergency fund, student loan payments, or saving for future expenses.

While originally designed for working adults, it can be adapted for students living on part-time income or financial aid.

First-year college students usually catch themselves making a variety of rite-of-passage mistakes, such as falling prey to poor time and money management, skipping class, overspending, not asking for help, overcommitting to friends or clubs and organizations and neglecting self-care.

What are the biggest mistakes college students make?

College students often take on too much student loan debt (which they find themselves paying for years after they graduate) — this is one of the biggest monetary mistakes. They may also choose a major without researching job prospects or personal fit, fail to build relationships with professors or network in their field, not use campus resources and skip internships or work experiences that will bolster their resumes. They may also fail to track their academic progress.

How to Report Student Business Income on FAFSA

by Melissa Brock | Jun 24, 2025 | Ask the admission office | 0 comments

Can student business income affect financial aid? In short, yes.

Many students juggle school and self-employment. Some run their own digital storefront, some freelance on weekends, some tutor online — the sky’s the limit. Side income has pretty much become a normal part of college life and that’s a great thing. 

It’s not easy, but it makes students more independent, it strengthens résumés and helps cover tuition or living expenses. But what many students (and their families) don’t realize is that this income can also affect eligibility for financial aid. 

When you apply for federal aid through the Free Application for Federal Student Aid (FAFSA) or institutional aid through the CSS Profile, income from the business you run on the side doesn’t fly under the radar. Depending on how much your child earns and how you report those earnings, they might receive less financial assistance even if they barely turn a profit. 

So, what do you do? You educate yourself, of course. This article will walk you through how to report business income on the FAFSA and the effect a student-run business can have on financial aid. 

How the FAFSA and CSS Profile Treat Student Income

According to the National Center for Education Statistics (NCES), 40% of full-time undergrads and 74% of part-time students had jobs during college. The NCES doesn’t specify separate gig work, but younger students are heavily involved in it. 

Financial aid applications consider job income and self-employment income. If a student works for an employer, it’s simple and straightforward. But if they run a business, freelance or have a gig on the side, the IRS counts that as self-employment and so do financial aid forms. 

The FAFSA allows students to earn $11,510 without affecting aid. However, this figure is subject to change based on factors such as family size and annual inflation adjustments. If your student earns more than that, it can reduce eligibility, since it’s assessed at up to 50%. 

Business income is included if it’s reported on your tax return. The CSS Profile, which some colleges use, goes even deeper, and it might consider income before expenses are deducted and look at assets as well. 

Even if your child makes a small profit from their student business, it can still change how much aid you receive. This is why it’s so important to track everything and to report it correctly. 

Learn more: What is Financial Aid?

If your child is in school and also self-employed, you have to stay organized because income reporting mistakes can cause a lot of trouble down the line. 

Here’s how to keep everything in order. 

Track All Sources of Income

Have your child track every dollar they earn through their business counts. This includes digital payments, affiliate commissions, cash tips, and even money you get through PayPal, Venmo or Stripe. Small payments are easy to forget, but over time, they add up and affect the amount of income your child reports. 

Use a spreadsheet or an accounting app to track month to month, and you’ll never have to worry about surprises when filing taxes or reporting aid. 

Learn more: What is Need-Based Financial Aid?

Keep Receipts and Business Expenses

One of the best ways to lower your reportable income is to simply track your expenses. If your child is selling products, tutoring or freelancing, you probably have costs that qualify as deductions, for materials, software, website hosting or even mileage if your child travels to see clients. 

Keep receipts for every purchase because this will help you subtract costs from total earnings, meaning you’ll report lower income, which can make a big difference on your child’s FAFSA. 

In terms of storage, ensure you’re not just stuffing receipts and tax papers in random drawers or folders. Instead, use what accountants and tax preparers use, such as tax return folders by Mines Press and similar printing services.

File Schedule C and Related Tax Forms Accurately

Self-employed students often need to file a Schedule C form to report business income. A Schedule C is a form that shows both the money your child earned and the expenses they’re claiming. If they don’t do this or enter incorrect numbers, they might overstate their income.

Use tax software to help you through the process or work with a tax preparer who knows how to properly report student income. 

Learn more: What is Merit-Based Financial Aid?

Keep Multi-Year Tax Records for FAFSA Renewals

Financial aid forms often look at tax data from last year, so those records are just as important as this year’s. Help keep full copies of your child’s tax returns and any supporting documents because the school or aid office might ask for them and keep your tax paperwork organized by year to keep it all in one place. This makes the renewal process much easier and faster.

5 FAFSA Mistakes Student Entrepreneurs Often Make

The FAFSA is way more than just a form — it’s a system that pulls in your tax information and helps schools determine the amount of aid to allocate, including federal student loans, such as the Parent PLUS loan. If you’re self-employed, the way you report income is much more important than you may think. 

Here are five mistakes many student entrepreneurs make and how to avoid them. 

Learn more about how student loans work, including private student loans.

1. Forgetting to Report Self-Employment Income

Students often don’t think side income counts if it’s casual or under the table, but the FAFSA wouldn’t agree. Whether it’s tutoring, designing websites or flipping products online, everything your child earns is considered income, and you have to report it. 

The FAFSA uses your tax return to decide whether you’re eligible for aid or not, so if that money isn’t there, you could be flagged for inconsistencies or even accused of misreporting. Even if it seems small, your child’s aid could be reduced or you could get penalties down the road. 

2. Reporting Total Income Without Subtracting Expenses

The FAFSA looks at your net income, not gross. So if your child earned $6,000 selling handmade jewelry but spent $2,500 on supplies and shipping, only $3,500 counts. 

If you report the full $6,000, your child would be overstating their financial strength, which can make it seem like you need less aid than you actually do. Always subtract the expenses first. 

3. Completely Skipping the Schedule C Form

Schedule C allows your child to list business income (and lost income) and deductions. If you don’t do this or you file incorrectly, the FAFSA won’t know how to read your business activity and it may assume you have a higher income than you really do. 

Without this form, your child loses the chance to properly document business expenses, which directly impacts aid calculation. Filing Schedule C is extra work, but it’s important. 

4. Mixing Personal and Business Finances

Mixing personal and business finances makes it hard to track what you actually earned, but it happens all the time to people who use the same account for personal expenses and business income. Your numbers might be off when it’s time to report income on the FAFSA. 

Consider encouraging your child to open a separate business account because it helps them stay organized and offers clean documentation if they ever need it. 

5. Misunderstanding the IRS Data Retrieval Tool

The IRS Data Retrieval Tool (DRT) is supposed to make the FAFSA easier because it pulls your tax information directly from the IRS. But if you didn’t file correctly or you left out important forms like Schedule C, the tool won’t pull in the full picture, causing discrepancies between what the FAFSA sees and what your student’s actual finances look like. 

Some students assume that using the DRT means they don’t have to double-check anything, but that’s super risky. Always ensure all tax returns are complete and accurate before using the DRT. 

Learn more: What is Room and Board? and How to Get In-State Tuition When You Live Out-of-State

If your child’s business is bringing in decent money, pat them on the back! That’s quite an accomplishment for someone who’s studying and working. However, you might wonder how to reduce the impact on your child’s financial aid. This might sound sketchy, but there are 100% legal ways to go about this. 

• Timing: Timing is a big one. Your child can choose when to receive payments, meaning they can speed them up or delay them so they don’t have to report higher income in the year they’re applying for aid. Another smart move is to contribute to a retirement account, such as a Roth IRA. This will lower their reportable income and do something good for their future self.
• Buying equipment or tools: If your student must buy equipment or tools for your business, you might want to do it before the end of the tax year because those purchases count as expenses and can reduce your net income.
• 529 plans: If your family uses a 529 college savings plan, it’s better to keep it under your parents’ name because that can reduce its weight when it comes to calculating aid.

Consider All Angles for Student Business Income

It’s important to remember that IRS audits on small business filers happen: about 0.42% of those reporting under $25,000. This number seems trivial, but it’s higher than the zero-income audit rate. The IRS also flags Schedule C filers, especially since an estimated 76% of sole proprietors misreport business expenses each year, amounting to almost $92 billion in annual discrepancies. 

Many students have some self-employment income and the FAFSA calculates against it. 

Mistakes or sloppy reporting could cut into your aid or even make you ineligible for it. 

FAQs

Do you still have questions about student business income affecting college aid? Let’s walk through some FAQs.

Do I need to report hobby income on the FAFSA?

Absolutely. If your child makes money from it, you need to report it. The IRS and FAFSA don’t care whether selling muffins is just something they do here and there because they like it. If they get paid for it, they must report it. 

What if my business loses money?

Welp, that’s unfortunate, but your child still needs to report it. Actually, you want to report it. If the expenses for their business are higher than its income, that can work in their favor on FAFSA. When you report net loss on your Schedule C, that reduces your total income, which could help increase aid eligibility. 

Does income from Venmo or CashApp count?

Yes, because it’s still money. Even if the money comes from the Tooth Fairy, it needs to be reported. It doesn’t matter where it comes from; if you’re getting paid for services or selling something, it’s income. Keep records, even peer-to-peer apps, because neither FAFSA nor the IRS ignores digital payments. 

Can parents report the business under their name instead?

No. If your child is the one doing the work and getting the money, that income is theirs, even if you help you manage the money or file taxes. If you report it under someone else’s name, the IRS and financial aid offices won’t be pleased.

How to Prepare for Unexpected and Hidden College Costs

by Melissa Brock | Jun 20, 2025 | Ask the admission office | 0 comments

College costs don’t stop at tuition, room and board. If your student is just beginning their college journey, you may think you’ve accounted for all your expenses, but surprise costs can creep up and throw your budget off track. From one-time fees to recurring out-of-pocket expenses, students often encounter bills they didn’t see coming.

This guide helps you understand which costs to watch for and how to prepare for hidden costs of college. By the end, you’ll know how to plan for the unexpected, make smarter financial decisions and tap into the right resources to stay on track.

Why College Budgets Often Fall Short

Even when you plan carefully, some expenses can catch you off guard. College cost calculators and brochures often overlook less obvious fees, making it easy to underestimate your actual expenses.

Hidden Fees Add Up Fast

Schools may charge mandatory lab fees, tech fees, student activity fees or course-specific surcharges that aren’t clearly outlined in your bill. These can range from $25 to over $200 per class.

If your child takes a biology course with lab requirements or a graphic design class that uses professional software, you could be responsible for additional access fees. These charges usually show up after registration, making them hard to budget in advance.

Living Costs Shift From Semester to Semester

A change in your child’s meal plan or housing situation could increase your out-of-pocket expenses without warning. For example, if your student’s dorm closes over a break or their lease starts late, they might need temporary housing or dining options.

Likewise, inflation affects everyday costs like groceries, transportation and hygiene items. These often get overlooked in initial college planning conversations, even though they add up quickly.

Unexpected Medical Visits and Prescriptions

Most campus health centers offer basic services, but some visits, like emergency care, lab work or prescriptions, may require out-of-pocket payments. If your child visits an off-campus provider or requires ongoing care, you may be charged the full price or be required to meet a deductible.

Don’t assume your insurance covers everything. Review your health coverage before arriving on campus and understand the cost of care at local clinics and pharmacies.

Mental Health Services Can Be Limited

Many schools offer a limited number of free therapy sessions. But if your child needs more support, they may be referred off campus. Those appointments can cost $75 to $150 per visit or more.

According to the American College Health Association, nearly three in four students report moderate to serious psychological distress during college. It’s important to budget for mental well-being, especially during high-stress periods like midterms or finals.

Once classes begin, it’s the everyday spending that often surprises students the most. These recurring costs can affect how long savings lasts.

Transportation and Travel Expenses

Whether your child commutes from off campus or travels home for breaks, you’ll likely spend more than you expect on transportation. Costs can include:

• Bus or subway passes
• Gas and car maintenance
• Parking permits or tickets
• Rideshares or rental cars during holidays

A single round-trip flight home during a school break can cost $300 or more. Booking at the last minute or during peak times only increases the cost. Consider adding travel costs to your yearly budget upfront to avoid surprises later.

Books, Supplies and Tech Gear

While used books and digital rentals can lower textbook costs, some professors require new editions or digital access codes that are only available through the publisher. These often cost $100 or more per course.

Other overlooked costs include:

• Notebooks, folders and printer paper
• Lab goggles, calculators and specialty materials
• Laptop repairs or software upgrades

Most students can’t afford to delay tech fixes. If their laptop breaks, you’ll need to replace or repair it quickly. A good safety net for tech-related emergencies is essential.

How to Plan Ahead for the Unexpected

Rather than reacting to financial surprises, take steps to stay ready. The more flexibility you build into your plan, the more confident you’ll feel navigating college finances.

Add a Buffer to Your Budget

One of the easiest ways to stay prepared is to include a buffer — ideally $500 to $1,000 per semester — into your budget. This can cover unexpected fees, travel, or health-related needs.

If you don’t use your buffer, roll it into the next semester or move it into an emergency fund. You’ll be glad it’s there when something unplanned comes up.

Track Your Expenses Weekly

A written or digital budget is only effective if you update it consistently. Use free tools like Mint, YNAB or even a simple Google Sheet to track what you planned to spend, what you actually spent, and categories going over budget.

Tracking weekly helps you catch patterns early and adjust before things spiral. It’s a smart habit that builds financial awareness over time.

Make Income Part of Your Plan

Relying only on savings or financial aid can leave you vulnerable when new expenses arise. Adding a steady source of income — even a small one — gives you more flexibility and control during the school year.

You can also earmark part of your regular income to put toward college.

Have Your Child Look for On-Campus Job Opportunities

Campus jobs are ideal for students because they’re designed around academic schedules. Positions like working in the library, staffing the front desk in a residence hall or assisting a professor with research offers steady income without heavy time commitments. These roles also eliminate the need for commuting and can build skills that support your child’s future resume.

Begin looking for student jobs early each semester. Most schools post openings through internal portals or their career center. If your financial aid includes work-study, focus on those roles first. They typically have guaranteed hours and are reserved for students who meet need-based eligibility.

Explore Flexible Off-Campus or Remote Work

If your child doesn’t qualify for work-study or wants more flexible hours, consider off-campus roles or remote gigs. Local businesses often hire part-time help during evenings or weekends, and online platforms now make remote work more accessible.

Your child can do tutoring, freelance writing, social media management or online customer service jobs, which they can do from anywhere with an internet connection. These roles often allow them to work around their class schedule and choose their own hours. Just be sure the job doesn’t interfere with their academics — income should support their goals, not compete with them.

Use Income Strategically, not Spontaneously

It’s easy to treat income as spending money, especially when your child feels suddenly rich after getting paid. But using your paycheck wisely builds long-term security. Set aside a portion of each paycheck for emergency savings, textbooks or recurring monthly needs like groceries and transportation.

Saving just $25 a week can go a long way. Over a semester, that could cover an unexpected flight or a medical expense. Developing this habit early lays the foundation for smart financial management after graduation.

Even with good planning, some costs may exceed your resources. In those cases, it’s important to know your funding options and choose the most responsible solution.

Talk to Your Financial Aid Office First

Before turning to private loans or credit cards, contact your child’s school’s financial aid office. 

Many colleges offer:

• Emergency grants for urgent needs
• Short-term loans with zero interest
• Additional work-study opportunities

These resources are designed to help students stay enrolled. You may also be eligible for a financial aid reevaluation if your family’s situation has changed since filing your FAFSA.

Personal Loans Can Offer Short-Term Support

A personal loan can help cover urgent costs like a broken laptop, unexpected travel, or emergency medical care. These loans are usually unsecured and offer fixed repayment terms, so you know exactly what you owe each month.

Many lenders now offer student-specific personal loans or allow a parent co-signer to help students qualify. These are often designed to be more accessible, especially for borrowers without a long credit history. If you’re exploring easy loans to get, start with lenders that advertise student-friendly requirements and simple online applications. Just be sure to read the fine print.

Before applying, compare:

• Rates
• Repayment terms
• Fees and penalties

Make sure the loan solves a problem, not creates a new one. Avoid borrowing for discretionary expenses like spring break trips or concert tickets.

Scholarships Aren’t Just for Incoming Freshmen

Scholarships aren’t limited to new students — many are available to current undergraduates, especially after their first year. 

Departments often offer awards for students who excel in a particular major or meet specific criteria. Your child may also find scholarships through professional associations, nonprofit groups or local businesses.

Stay organized by setting a monthly reminder to search for new scholarships. Ensure your child writes strong personal statements and keep a list of accomplishments or leadership roles to reuse in applications. 

Even a $500 scholarship can reduce your child’s need to borrow or cover surprise costs that pop up mid-semester.

Crowdfunding and Community Support Can Help in Emergencies

Crowdfunding isn’t a long-term fix, but it can be a lifeline in urgent situations. For students dealing with sudden medical costs, housing issues, or other emergencies, platforms like GoFundMe or university-run hardship funds can offer quick, meaningful support.

Be transparent about your needs and explain how funds will be used. Friends, family or members of your community may want to help but don’t know how unless you ask. Some schools also maintain alumni-funded emergency grants. A quiet conversation with a trusted staff member in the financial aid office could lead to unexpected support.

Read more: Why is College So Expensive?

Build a Long-Term Plan that Works for You

College can be unpredictable, but that doesn’t mean your finances have to be. A good long-term plan keeps you prepared and in control, no matter what comes your way.

Review and Update Your Budget Each Term

Your child’s needs will change from semester to semester — a new job, different class load or a move to a new apartment will affect their spending. Review your budget at the start of each term to add new expenses, adjust categories that went over last term and set new savings goals.

Make budgeting a habit, not a one-time activity. Treat it like checking your child’s grades or submitting assignments — part of the routine.

Get a Job

Summer jobs or internships are a great opportunity to grow your child’s savings. Even setting aside $20 to $30 per week adds up quickly. Use that money to: 

• Refill the emergency fund
• Pay off a small balance from last term
• Buy needed tech or supplies in advance

Your future self will thank you when the next surprise hits and you’re ready.

Automate Your Savings Where You Can

Setting up automatic transfers helps you save consistently without thinking about it. Many banks and budgeting apps allow you to schedule small transfers weekly or after each paycheck. Automating even $10 per week builds discipline and removes the temptation to spend it elsewhere.

If you have multiple accounts, set aside one just for emergency savings so you’re less likely to dip into it casually.

Know Your Financial Aid Renewal Deadlines

Many students lose grants or aid simply because they miss paperwork deadlines. Make a calendar of key dates each semester — including FAFSA renewal, scholarship applications and school-specific forms. 

Missing even one deadline can mean losing thousands of dollars in aid. Keep your paperwork and login credentials organized, and reach out to your child’s school’s financial aid office if you’re unsure when or how to submit.

Unexpected expenses are part of the college experience, but they don’t have to derail your progress. Planning ahead, staying flexible and knowing where to turn for help can make all the difference.

You don’t need to anticipate every single cost but you can build a mindset and system that absorbs financial shocks instead of crumbling under them. Whether it’s a tech emergency, an off-campus housing challenge or a health-related expense, the key is to stay informed and act early.

If you haven’t already, now’s the time to build your buffer, review your coverage and update your budget. A small step today could prevent a big setback tomorrow.

What to Do When an Emergency Threatens Your Child’s College Fund

by Melissa Brock | May 20, 2025 | Ask the admission office | 0 comments

Growing a college fund is a huge undertaking. You work hard, save every extra dollar, and you dream about the day you can send your kid off to college without worrying about how you’ll pay for it. You might even be a student trying to save up on your own. 

Everything goes according to plan, you’re saving and the fund is growing. And then life throws a curveball. You lose your job, have a health emergency. Maybe you get in a car accident… Whatever the case may be, all of a sudden, the money you set aside for college now has a different job, and it has to cover other expenses. It’s absolutely heartbreaking, not to mention stressful. 

But that’s life for you. Emergencies happen; nobody expects them. But just because you can’t predict them doesn’t mean you can’t be (somewhat) ready for them. 

Believe it or not, there are ways of protecting that college fund, and in this article, you’ll get to explore several of them.

The Most Common Emergencies that Impact College Savings

An emergency pops out of nowhere and turns your life upside down. Among other things, it can also seriously affect your finances, even your college fund. Medical emergencies are one of the biggest reasons families are forced to dip into their savings because those bills pile up fast. Surgeries, hospital stays, even ongoing mental care, can quickly drain your bank account and money set aside for tuition. 

Accidents and personal injury hit just as hard. A car crash, an injury in the workplace, even a simple fall, can mean major expenses and, in some cases, even lost income. If your family is to stay afloat, you have no other choice but to lean on the savings, regardless of what they were meant for. 

Then there are emergencies that are actual disasters, like floods, wildfires, or hurricanes. They can wipe out entire communities. When something like this happens, paying for college is the last thing you’ll think about. 

But even if it’s not something as dramatic as an injury, illness or a natural disaster, job loss and economic downturn are always a threat. If a parent loses a job or the family’s income drops because of a recession, college savings turn into an emergency fund that covers everyday expenses. 

Life rarely goes how you’ve planned it and these kinds of emergencies show just how important it is to have a plan B. 

A little planning right now will make a huge difference if life throws something unexpected your way. Here’s how to make sure your savings stay as safe as possible. 

Save Money Just for Emergencies

One of the simplest and most effective things you can do is to have a separate emergency fund that has nothing to do with your college savings. This way, when something unexpected happens, you don’t have to immediately reach for the money you’ve set aside for college because you have an alternative. 

Experts say that you should have three to six months’ worth of expenses saved up, but even if you have less than that, it will still give you some breathing room. 

Get Insurance

Insurance is anything but exciting, but if something goes wrong, it’s a lifesaver. A car accident without insurance is a nightmare, financially and legally. With good health insurance, life insurance and disability insurance, you can cover big expenses without losing your savings. 

You’ll also want to check your homeowners or renters’ insurance to make sure you’re covered for natural disasters. Paying for insurance will probably feel like a pain now, but it can save you thousands in emergencies. Experienced Malloy Law personal injury lawyers always explain clients how a good policy can provide financial protection when unexpected events lead to injuries or property damage. Understanding coverage limits and exclusions ahead of time can make a significant difference during the claims process, especially when stress and recovery are already factors.

Look for Help if You Need it

If your family ends up in a serious crisis, you don’t have to go through it alone. There are scholarships, emergency grants and other aid programs meant to help families who run into unexpected trouble. If you’re dealing with interviews, legal claims or insurance documentation, consider using professional transcription services to help organize it all. Trust the human experts at Ditto Transcripts to turn your audio or video into clear, usable text.

If your family emergency stems from environmental disasters, like water contamination, exposure to dangerous chemicals or pollution from a natural disaster, it’s more than possible to seek compensation for water contamination damages, pollution consequences, etc. 

Choose Savings Plans that Give You Flexibility

Not all savings plans are the same. Some of them allow you to take out money for certain kinds of emergency withdrawals, but make sure to check the rules about qualified and nonqualified expenses. If you take money for non-qualified reasons, you’ll get a penalty, but in some cases, those penalties are small compared to the financial relief you need. 

How to Rebuild Your College Fund After an Emergency

Once you dip into your college fund because you had an emergency, it’s easy to start feeling defeated. Actually, it’s hard to feel anything but that. It’s frustrating and scary because you’ve worked so hard to save. But the truth is, you’re not starting from scratch, even if you had to spend all the money you had. You’re starting from experience, which means you can rebuild, possibly better than before. 

First, take a breath and figure out where things stand. Sit down and really look at the numbers — don’t guess. How much did you take? What’s left? What’s your current monthly budget? It’s perfectly fine if the answer is “not much.” Don’t feel bad about where you are, just understand it so you know what to do next. When you have a clear picture, think about how much you want to save. 

Before, you might have been aiming for four years of tuition, but maybe now you can start with two and build from there. Or maybe you want to cover books, housing or just the first year. Whatever the case, be realistic and flexible. 

It’s important to think about your priorities when you’re trying to rebuild a savings fund, especially after you’ve taken a financial hit. Of course, your emergency needs need to be taken care of, like rent, food, and medical bills. This comes first. But once you’re back on your feet, start putting money back into that college fund. Don’t wait until things are perfect; every small step counts. Even $10 a week will add up over time. Automatic savings are a helpful trick here. You can link your debit card to a round-up app that sends the change from every purchase straight to your savings. Or you can set a recurring transfer for payday, even if it’s tiny. With automation, you can save without thinking about it. 

If you’re in a position to earn a little more, you might also want to consider a side hustle or a part-time job. Babysitting, tutoring, food delivery, freelancing… Anything you can squeeze into your schedule without burning out. If you’re a student, some campuses offer work-study programs that allow you to earn money while still focusing on school. 

It also might be time to reevaluate your college plan. It doesn’t mean you should give up, it means you need to be strategic. Community college for the first two years can save you thousands. 

Choosing an in-state school instead of an out-of-state institution can slash your tuition in half. Living at home instead of on campus: Another huge savings. When it comes to college, there’s no single solution that will work for everyone, and adjusting your plan doesn’t make it any less valuable. 

In fact, it could make the entire experience much more manageable and less stressful for everyone involved. 

Ways to Build a Resilient Financial Base

There are many things in your life you have no influence over, but your finances shouldn’t be unpredictable. The best way to protect your college fund (and mental health) is to build a good financial foundation that can take whatever life throws at it. 

And no, this doesn’t mean you need to be rich or be a master investor. You just have to have a few simple habits and systems in place that make your finances stronger over time. 

Here are a few ways that can create this kind of stability. 

When people talk about saving, they usually think of just one account. But if you put all your money in one place, it’s risky. Diversifying your savings means you spread it across different types of accounts, where each has a different purpose and benefit. 

For example, a 529 college savings plan offers tax advantages specifically for education expenses, while a high-yield savings account gives you better interest on your emergency fund. If you’re saving for retirement, a Roth IRA is a great option because it grows tax-free. Having these different savings “buckets” helps protect your money and gives you more flexibility when something unexpected happens. 

Build Multiple Income Streams

When you have just one paycheck to rely on, it’s like walking on a tightrope. If you suddenly lose that income, everything else gets shaky. This is why having more than one income stream is so smart. You don’t have to turn into a full-time entrepreneur overnight, but you can get a part-time job, do some freelancing, sell handmade items online or even rent out a room. All this can give you a nice financial cushion. 

If things go sideways, you’re not stressing out so much because you know you have options. Plus, these smaller sources of income will help you save more steadily for college or bounce back faster after an emergency. 

Practice Budgeting and Tracking Expenses

Budgeting sounds so boring, right? But honestly, it’s one of the most powerful things you can do to stay in control of your money. A budget lets you see where your money is going and it gives you the power to make tweaks before things go off track. There are tons of free apps that make budgeting super easy and some of them even link to your bank account to automatically categorize everything you spend. Of course, you can also just use a notebook. 

Whatever you decide to use, the important part is consistency. Check in weekly to catch issues early, or even monthly. If you do this, you’ll be able to stay focused on your goals and you’ll be more confident about your financial choices. 

Teach Kids and Teens Early About Money

Money should never be a taboo topic, so teach your kids about finances. It will make a difference in how they handle money when they’re older. Even young kids can learn the basics of saving, spending and giving. 

Teens can take this a step further. You can help them research costs related to college or come up with a savings goal for something they want. If they have a part-time job, talk about how they might set aside a small portion of it for their education. The point isn’t to pressure them, it’s to empower them. 

When they understand the value of money, they’re more likely to appreciate the work behind it and make better decisions in the future. 

Avoid Risky Investments for College Funds

It’s always tempting to try and grow your money quickly. But if you invest your college savings in risky things like individual stocks, crypto, or the latest “get rich quick” scheme, there’s a chance you’ll cause yourself a lot of damage. 

When it comes to saving for college, slow and steady is the way to go, and don’t let anyone tell you differently. This money usually has a shorter timeline than something like retirement, so you don’t have as much time to recover from a big loss. Instead, it’s better to stick with safer, more reliable options like low-risk mutual funds, savings accounts or 529 plans. 

You Have Options During Emergencies

Thinking about worst-case scenarios is never fun, but the truth is, life happens. If you plan for it, at least you have a safety net and you’re not risking your education. 

Keep in mind, though, that everything is going to be okay even if you get knocked down. College is not a straight line, and life is… Well, even less of a straight line. It’s kind of like a twisty one with potholes in it, but just keep going.

What to Do if Your Teen Chooses an Expensive College

by Melissa Brock | May 16, 2025 | Ask the admission office | 0 comments

Your teen just announced the big decision: they want to attend a college with a jaw-dropping price tag.

And you? You’ve run the numbers, and they don’t add up.

This is one of the most emotionally complex crossroads in the college search journey — when their dream school clashes with your financial reality. As a parent, you’re proud of their ambition. But you’re also allowed to be practical. And yes, you can say no.

This article is your guide for navigating that moment with empathy, strategy and honesty.

The Moment You Hear the College Price Tag

You might remember the day. You were all sitting around the kitchen table, flipping through brochures or checking out dorms online. And then it happened: they named the school they fell in love with.

You nodded. You smiled. And then, when you saw the tuition: Your heart skipped a beat.

Maybe it’s $65,000 per year. Maybe it’s even more. And that’s before books, flights, housing and life.

Your instinct might be to panic. But don’t. This isn’t the end of the road — it’s just a curve.

And naturally, the next thought that follows is: how are we going to pay for all of this? While some families consider part-time jobs or work-study options for their teens. The reality is that juggling academics, extracurriculars, and a job isn’t easy. The question of whether it’s okay to pay for essay support comes up responsibly. Time gets tight — especially when papers, assignments, and deadlines start piling up. In such cases, some students choose to pay for research paper writing as a practical solution to manage their workload. Paying for research paper writing isn’t about avoiding effort — it’s about making strategic choices under pressure. It’s one way students try to stay afloat when there just aren’t enough hours in the day.

And let’s be honest: sometimes doing everything alone isn’t a sign of strength — it’s a fast track to burnout. Learning when to ask for help, delegate, or use available resources is part of growing into a capable adult. That’s adapting. And it frees up space to focus on what matters most: learning, not just surviving.

Don’t Dismiss the Dream Right Away

The worst thing you can do at that moment is shut it down too quickly.

Why? Because this isn’t just about numbers to your teen. It’s about identity, excitement, pride, and vision.

Take a breath and listen to why they want to go there. What is it about this school that stands out? The programs? The campus culture? Location? A specific professor or internship connection?

Sometimes the reason is clear and justifiable. Other times, it’s based on prestige, social media hype, or the name on a sweatshirt.

By understanding their “why,” you’re setting up a better conversation about the “how.”

Many families get blindsided by the sticker price of college. But it’s essential to break it into parts — and compare schools using net price, not just listed tuition.

Net price = tuition + fees + housing + other costs – grants and scholarships.

Most colleges have a “net price calculator” on their website. Use it. Plug in your financial information, and see what the actual out-of-pocket cost might be.

You may find that an expensive school offers generous aid. Or you may confirm that it truly is out of reach.

Either way, you’ll have real numbers to work with — and those numbers make it easier to guide the decision.

Frame it as a Family Decision

College isn’t a consumer purchase. It’s a long-term partnership between your teen and your family.

So make that clear: this decision impacts all of you — not just them.

Here’s one way to frame the conversation:

“We’re proud of the work you’ve put in. Now we need to figure out what makes sense for all of us financially. We’re not saying no — we’re saying let’s look at every option seriously.”

This approach reduces defensiveness. It keeps the door open for compromise. And it teaches your teen one of life’s biggest lessons: major decisions need a full view of the picture.

Look at Value, Not Just Price

Yes, a college might cost $70,000 a year. But what are you getting for that price?

Look at:

• Graduation rates
• Average debt at graduation
• Starting salaries for graduates
• Internship or co-op opportunities
• Job placement support
• Alumni network strength

Then compare those metrics to other schools, including more affordable options.

Sometimes, a smaller public university offers better hands-on training and support than a “big name” private school. But your teen won’t know that unless you show them.

This is where it helps to shift the conversation from price to value.

Talk Real Numbers About Debt

This is where things get serious—and where many teens just don’t have the full picture.

Explain how student loans work. Break down monthly payments based on projected debt.

If your teen takes on $100,000 in debt, they may be facing over $1,000 in payments each month for 10 years.

That’s not just a number — it’s rent. It’s a car payment. It’s the ability to say yes or no to jobs, cities, and opportunities.

Let them feel the weight of that debt — not as punishment, but as reality.

Talk About Emotional Readiness, Too

While the focus is often on finances, it’s worth having a quiet, honest conversation about emotional readiness as well.

College is not just an academic step — it’s a lifestyle shift. Your teen will be living independently, managing their time, navigating peer pressures, and handling stress in a totally new environment.

Ask:

• Do you feel confident managing your own time and responsibilities?
• Are you choosing this school because it truly fits your goals — or because it looks good on paper?
• What kind of support system will you have there?

Sometimes, a smaller, more affordable school might offer more hands-on mentoring, stronger community, or more balance.

Encourage Campus Visits (Even to Less Expensive Options)

Let them walk the campus. Talk to current students. Sit in on a class.

Visiting more schools can reset the emotional narrative. Your teen might find a new favorite — one that feels just as exciting without the overwhelming cost. And sometimes, it’s not just about what the brochures say — it’s the feeling of being there. The energy, the people, the way they imagine themselves walking to class or grabbing coffee near the library. You can’t get that from rankings or Instagram posts. A school that seemed “too ordinary” on paper might feel just right in person. And those small surprises often turn into the best decisions.

Explore Alternative Paths

If your teen is still drawn to one school, consider creative ways to make it work — without risking your family’s future.

Ideas to explore:

• Start at a local or community college and transfer in later.
• Take a gap year and reapply with stronger scholarship positioning.
• Attend a more affordable school and pursue special programs like study abroad or dual degrees later.

These aren’t backup plans. They’re smart, strategic alternatives.

What If They Still Push Back?

They might feel defeated. They might blame you.

That’s okay.

Let them express their frustration, but remain firm in your boundary. You’re not punishing them. You’re protecting them.

Say:

“This isn’t the outcome you wanted, and I understand that. But I hope one day you’ll look back and see that we made this choice for your future.”

Use Real Outcomes as Proof

Instead of debating emotions, turn to data.

Use College Scorecard to compare outcomes. Such as salary after graduation, loan default rates, job placement. Sometimes the less expensive school leads to better long-term outcomes. It’s one thing to fall in love with a campus — it’s another to understand what life looks like after graduation. Where do graduates end up? Are they working in their field? Are they earning enough to manage their loans and live independently? These are the kinds of answers that make the financial conversation less emotional and more realistic. You’re not shutting down their dream — you’re helping shape it into something sustainable.

Don’t Forget Hidden Costs

Even with scholarships, hidden costs add up fast:

• Flights home during breaks
• Food off-campus
• Health insurance fees
• Laptop or software requirements
• Student activity fees
• Summer housing if they stay for internships

What seems “just barely manageable” may actually be a stretch.

Help Them See the Bigger Timeline

Ask: Where do you want to be at 25? At 30?

Do you want a flexible career path? The ability to travel? A down payment on a home?

That future gets a lot easier when they’re not carrying six-figure debt. College feels like everything right now — but it’s really just one chapter. They will be freer tomorrow if they take a chance on a new job, move to a new city, or say yes to an unpaid internship that opens doors. A school that fits financially gives them room to grow without feeling trapped. Remind them: success isn’t just about getting in somewhere — it’s about what’s possible once they get out.

Involve a Trusted Third Party

Sometimes hearing it from you feels personal. But hearing it from a counselor, financial advisor, or even a family friend can help them see things more objectively.

Put all colleges side by side. Compare:

• Total cost
• Financial aid offered
• Scholarships
• Average starting salary
• Job placement support
• Campus vibe

Let the facts speak for themselves.

Normalize Choosing a School That Fits Your Budget

Plenty of successful people went to public schools or started at community colleges. A smart decision now can set the stage for long-term freedom.

Build Excitement for Other Schools

Don’t let your “no” be the end of the excitement.

Redirect that energy:

“Let’s find a school that you love and that won’t leave you — or us — buried in stress.”

Look at programs. Clubs. Internships. Study abroad. Help them see what’s possible — not what they’re losing.

Give Them a Role in the Financial Planning

Let your teen fill out the FAFSA. Let them help look for scholarships. Have them create a basic monthly budget for college expenses.

When they take ownership of the financial side, they better understand the stakes.

Watch Out for Parent Loans

Many families rely on these loans, but they come with risks. Unlike federal loans for students, these are fully on you — the parent. High interest, few protections.

Think long-term. What does repayment look like? How does it affect your retirement plan?

If it feels like a burden, it probably is.

Start the Conversation Early

Don’t wait until acceptance letters arrive.

Start talking in junior year. Set a clear range of what’s affordable. Research schools together. Be upfront.

Avoid the heartbreak of “getting in” only to realize later that you can’t pay for it.

Involve Siblings (When It Makes Sense)

If there are other kids in the house, be mindful of fairness.

Maybe you have one college savings fund. Maybe you’re planning to contribute equally.

Explain this clearly so that all kids understand the bigger picture — and no one feels overlooked.

Celebrate the Smart Choice

Finally, when the decision is made, celebrate it.

Highlight the opportunities. Buy the hoodie. Schedule the visit day. Get excited together.

Your teen needs to feel that this choice is not second-best — it’s strong, strategic, and full of potential.

Saying No Is a Step Toward Something Better

Saying no to an expensive college is hard. But it doesn’t mean giving up on your teen’s dreams.

It means helping them find a way to reach those dreams without sinking under debt or stress.

It’s an act of love, not limitation.

When you say no thoughtfully, firmly, and with care — you’re not ending the conversation.

You’re starting one that matters more: how to build a smart, flexible, debt-conscious future.

And that’s a lesson your teen will thank you for — sooner than you think.

How Military Families Can Use VA Loans to Support College-Bound Teens

by Melissa Brock | May 1, 2025 | Ask the admission office | 0 comments

Military families face unique challenges from frequent relocations to the emotional strain of deployments. As their children grow and prepare for college, these families must also navigate the financial complexities of higher education. 

Fortunately, VA loans, one of the most valuable benefits available to veterans, active-duty service members and eligible surviving spouses, can be strategically used to support college-bound teens. While VA loans are primarily designed for homeownership, military families can leverage them in creative ways to ease the transition to college and ensure financial stability, including through VA college loans.

Understanding VA Loans 

VA loans are mortgage loans backed by the U.S. Department of Veterans Affairs. They offer numerous advantages, including:

• No down payment requirement
• Competitive interest rates
• No private mortgage insurance (PMI)
• Flexible credit requirements

These benefits make it easier for military families to afford a home and with strategic planning, to use that home as a financial asset in support of their children’s education.

No, VA loan benefits are not transferable to the children of veterans. However, a veteran can apply for a joint VA loan with their son, but the son must meet certain criteria and does not receive the VA benefits directly.

Buying a Home Near the College Campus

One of the most direct ways a VA loan can support college-bound teens is by purchasing a home near their chosen college or university. If a military family has Permanent Change of Station (PCS) orders or plans to live near their teen’s college, buying a home instead of paying for dormitories or off-campus rentals can be a smart move. Here’s why:

• Cost savings over time: Rather than paying thousands of dollars annually for dorm fees or rent, military families can invest that money into a mortgage. Over a four-year period, these savings can be significant especially with no down payment and favorable interest rates through a VA loan.
• Investment potential: Owning a home in a college town opens the door to future income opportunities. Once the child graduates, the home can be sold potentially at a profit or rented out to other students. In this way, a VA loan-financed home can become a long-term investment that continues to yield returns.
• Stability and security: College students benefit from having a stable home environment. With ownership, families can ensure their teens have a quiet, private, and safe space to study and live, as opposed to the often chaotic nature of dorm life or renting with strangers.

Refinancing to Free Up College Funds

For families who already own a home through a VA loan, refinancing options such as the VA Interest Rate Reduction Refinance Loan (IRRRL) or a VA cash-out refinance can provide access to extra funds to support college expenses.

VA Cash-Out Refinance

A VA cash-out refinance allows eligible homeowners to refinance their existing VA or non-VA loan and take out cash from their home equity. The funds from this refinance can be used for any purpose including tuition, books, laptops, or room and board.

For example, if your home has built significant equity over time, refinancing to pull out $20,000 or more can ease the burden of college costs without needing to resort to high-interest private loans.

IRRRL for Lower Monthly Payments

While the IRRRL doesn’t allow cash-out, it can help reduce your monthly mortgage payment. This savings can then be redirected toward college expenses, providing greater financial flexibility during the college years.

Multi-Generational Living Solutions

Military families often consider multi-generational living as a strategy to support aging parents or growing children. For college-bound teens, a larger home financed through a VA loan could mean the student can live at home while attending a local college, eliminating the need for campus housing or additional rent. Roommates or boarders (if allowed by VA guidelines and local zoning laws) can share housing costs, easing financial strain.

Buying a multi-bedroom home could also accommodate other siblings creating a supportive, cost-effective family hub during the college years and beyond.

Building Credit and Financial Literacy

Helping teens understand how VA loans work and involving them in the homeownership process can also be an educational experience. Teens can learn about budgeting and mortgage payments, understand long-term investment through real estate and begin to build credit through associated utilities and bills (if placed in their name, with guidance).

These lessons prepare them not just for college, but for life after graduation.

While VA loans aren’t direct financial aid for education, they can ease financial pressures elsewhere, freeing up resources for tuition. Many military families qualify for educational benefits such as:

• Post-9/11 GI Bill (can be transferred to dependents)
• Yellow Ribbon Program
• Scholarships for military children

When combined with a VA loan strategy (such as buying near campus or refinancing), families can create a comprehensive financial plan at any age of high school (freshman through senior year) that reduces debt and improves long-term stability.

Considerations and Requirements

Before using a VA loan in support of a college-bound teen, families should keep the following in mind:

• Occupancy requirements: The VA requires borrowers to occupy the home as their primary residence. However, exceptions may apply if the spouse or dependent child will occupy the home while the service member is deployed or living elsewhere due to military duty.
• Loan limits and eligibility: Although there is no longer a maximum loan limit for most VA borrowers, lenders may have their own limits. Always check with a VA-approved lender.
• Property type: VA loans are for primary residences. Duplexes and multi-family homes may be eligible if the borrower occupies one of the units.

Think Outside the Box if You Have Military Connections

Military families have sacrificed greatly in service to their country, and VA loans are one of the many ways the nation gives back. By thinking creatively and strategically, families can use VA construction loan benefits to support their college-bound teens in meaningful ways whether through homeownership near campus, refinancing to fund tuition, or reducing housing costs. In doing so, they not only ease financial burdens but also create a legacy of stability and opportunities for the next generation.