Financial

Financial knowledge is very important for both paying for college and in the future after you graduate.

Types of Financial Aid and Loans

 

8 Tips to Pay for College

  1. 529 Plan
    • A 529 plan is a tax-advantaged investment plan designed to help families to save for a beneficiary’s (typically one’s child or grandchild) future higher education expenses. Usually this account is opened up and started by a parent or grandparent when a child is young so that they can start saving for college.
  2. APPLY FOR FAFSA and scholarships
    1. FAFSA application opens on October 1, 2020 and will close March 2, 2021 for many state financial aid programs. To be eligible for Cal Grant, a school-verified GPA has to be submitted by March 2nd as well. If you are a non-citizen (without a SSN), contact the Cal Maritime financial aid office and fill out the California Dream Act Application
      • Apply for FAFSA  
      • Cal Maritime's Federal School Code: 001134
    1. On top of third-party scholarships, Cal Maritime also offers scholarships. Every year, the Foundation Scholarship opens in late November, and it is available for any Cal Maritime student. It only asks for a general application (with 3 prompts) and it automatically applies you to dozens of scholarships.
  1. Take community college classes (mostly for GE classes)
    • Community college is a great option because the tuition is cheaper than CSU. If you weren't able to enroll in a class at Cal Maritime, it is never a bad idea to look for the class at a community college. It is possible to simultaneously take classes at Cal Maritime and a community college, but make sure that you are not overwhelming yourself and look at the amount of units you are taking at Cal Maritime (the units you take at CC doesn't count for the units taken at Cal Maritime, which could affect financial aid). Also, make sure that you discuss your plan with a university advisor and your assigned academic advisor. Once you get approval, sign this form for the registrar's approval.
  2. Test out of classes
    • If you have taken classes in high school, but didn't take an AP exam, or if you are very confident in your knowledge of a particular class, you may be able to test out of a class. Contact the professor of the class what you could do, and if you are able to test out, it will allow you to take classes ahead of the curriculum. Before you do, talk to the university advisor (for general questions) and your assigned academic advisor. Depending on your major and the situation, you may graduate early.
  3. Negotiate your financial aid package with the Financial Aid office
    • If your financial situation changed since you applied for FAFSA, and if you feel that you need more financial support, you may contact the Financial Aid office. "If you and your family have faced financial challenges such as loss of employment during the COVID-19 Shelter in Place that may impact your financial aid eligibility please contact us to discuss possible Parent/Student Income Appeals." - Cal Maritime Financial Aid Office 
  4. Know your interest rates before applying for loans
    • When you receive your financial aid package, you might see different types of loans. Of all the loans, there's two types that may be confusing, which is the difference between subsidized and unsubsidized loans. Subsidized loans are paid by the Department of Education (they pay for the interest) and the interest period don't start until you graduate (or drop out). For the unsubsidized loans, loans  interests the moment the loan(s) is disbursed.
  5. Get a part-time job (some offer tuition reimbursements)
    • Having a part-time job is a great way to pay for college, but make sure that you don't overwork. You should have a distinct line between your studies, work, and free time.

Apply for jobs on campus here 

There are also part-time jobs available off campus. Depending on your company you work for, they might offer tuition reimbursements (like Starbucks and Chipotle) that will help you pay for your tuition.

  • Internships
    • Internships is a great way to get experience, but depending on what internships, they may pay you as well. Though it is great to be paid for the internship, unpaid internships is also a great opportunity because it gives you the experience of working in your desired field, so you know what field of occupation you want to go into, and it is a great investment for your future because it will help you get jobs when you graduate. Based on your major, you are required to do internships over the summer, but you could apply anytime throughout the year. Like the part-time job mentioned earlier, make sure that you don’t overwork and plan accordingly.

Scholarship Sites (3rd Party scholarships)  

The Cal Maritime Financial Aid office has compiled a list of 3rd Party Scholarships that are worth looking at. There are general scholarships (open for anyone) and there are some that are for certain demographics. The financial aid office made the list of scholarships, but there are countless amount of resources available online. It's free money that only takes a little bit of your time.

Scholarships based on major (known by faculty)

    • For engineering majors

    • Minorities in STEM Majors, LSAMP Scholarship

    • For Marine Transportation

    • For Business majors

Credit Score and Related things

  • Credit Scoring
  • A credit score a number system from 300 to 850 that determines a consumer's creditworthiness. Your credit score is determined by your credit history which looks into several factors such as number of open accounts, amount of debt, debt repayment history, etc. By having a higher credit score, it lets the lenders know that you are able to make repayments in a timely and orderly fashion, and you are able to borrow more money.

In addition to allowing you to get more loans, higher credit scores allow you to get lower interest rates for the loans, more premiums for auto and homeowners coverage, higher chances of getting rent, etc. Having a good credit score is also good for emergencies like natural disaster.

  • Check credit score here:

 

Credit Cards vs Debit Cards:

  • Credit cards
  • A credit card is issued by your financial institution (bank) and whenever you purchase a product or service, you are making an agreement with the bank that you will pay it back. If you pay back the money immediately, you won't be charged any interest. But if you don't pay back the bank immediately, you will be charged a loan based on the financial institution's policies, also affecting your credit score.

 

Compared to debit cards, credit cards give greater protection if the card is lost or stolen and is reported within 48 hours (Electronic Fund Transfer Act). Also if either there is a charge that you didn't authorize or if you received a package that was damaged/lost in shipping, you are able to dispute it to the bank (Fair Credit Billing Act). Also unlike debit cards, credit cards may have fees that come with it, such as annual fees and late-payment fees. These fees may differ based on the bank and the credit card plan, so it is very crucial to read the information of each credit card before applying and know what you are signing up for.

 

Before making a credit card and making large purchases, like a home or a car, it is important to be responsible with money, as you should avoid getting credit card loans that you cannot repay. Make sure to strategically get loans and make a solid plan of repaying the money you borrowed.

  • Debit Cards
  • Unlike a credit card where you make loans to the bank, a debit card deducts money directly from your checking account. There's two main types of debit cards: standard (connected to bank account) and prepaid (pre-loaded money; often sold in supermarkets and convenience stores). There is also Electronic Benefit Transfer (EBT) that are issued by state/federal agencies, allowing to receive additional benefits.

 

Debit cards eliminates the chances of getting debt because it only draws out the balance you own.  There are also fewer or no fees associated with it compared to credit cards.

Identify financial stressors and make a plan. 

Free Budget Calculators: Everydollar

Ask For professional support through consumer credit counseling and personal financial planners:

National Foundation for Credit Counseling: Non-profit Free Credit and Debt Advice

National Association of Personal Financial Advisors: Find a financial advisor

 

Seek Out Consumer Advocates:

Clark Howard

Career Services - Talk to a Career Coordinator to help you develop a plan to find a career or internship. 

 

Good reads for self-growth and financial-growth:

  • Don't Eat the Marshmallow... Yet! By Joachim de Posada and Ellen Singer
  • Don't Gobble the Marshmallow... Ever! By Joachim de Posada and Ellen Singer
  • Keep Your Eye on the Marshmallow By Joachim de Posada and Ellen Singer
  • The Snowball By Warren Buffet
  • Think and Grow Rich By Napoleon Hill
  • Perfectly Yourself By Matthew Kelly
  • Rich Dad Poor Dad By Robert Kiyosaki
  • Secrets of the Millionaire Mind (T. Harv Eker)

Some videos:

 

Video web content titled: 5 Positive Money Habits I Only Adopted Because Of COVID