Money Matters

Fall 2012

New college students have a lot to learn about life on their own. They face many simultaneous challenges, learning independent living as they adjust to new lifestyles and campus patterns of living and learning. Many college freshmen – indeed, some transfer students as well – will deal with day-to-day costs they never before had to handle themselves.

The Financial Aid and Scholarship Office at CSU, Chico projects the average undergraduate student’s costs for the 2012-2013 academic year to approximate a total of $24,090 for an undergraduate living on-campus and $23,934 for an undergraduate living off-campus.. This estimated Cost of Attendance for the 9-month academic year breaks down as follows:

	On-Campus	Off-Campus
Enrollment Fees	$7,438*	$7,438*
Books/Supplies	$1,666	$1,666
Room/Board	$11,118	$10,962
Transportation	$1,126	$1,126
Personal Expenses	$2,742	$2,742
Total	$24,090	$23,934

*non-resident tuition is an additional $372 per unit.

The CSU makes every effort to keep student costs to a minimum.  Fees listed in published schedules or student accounts may need to be increased when public funding is inadequate.  Therefore, CSU must reserve the right, even after initial fee payments are made, to increase or modify any listed fees, without notice, until the date when instruction for a particular semester or quarter has begun.  All CSU listed fees should be regarded as estimates that are subject to change upon approval by The Board of Trustees.

Note:  The budget listed above reflects the estimated amount of undergraduate fee/tuition based on full-time attendance during 2012-13.  Other costs listed are averaged and will vary by student.

What a Parent Can Do

The majority of freshmen have had minimal experience dealing with money. Some students have a problem managing their money wisely and can end up spending more money than they have and then borrowing foolishly.

Before Your Student Leaves for College: Help Build Money Management Skills

1. Teach your student how to plan and maintain a budget.
2. If your student is getting a checking account for the first time, show them how to balance their checkbook and record their transactions to prevent bouncing checks.
3. Explain the need to build a good credit history by paying bills on time and avoiding debt.
4. Teach your student to plan ahead and save for emergency needs.
5. Help your student to ask questions and learn to do things for themselves.

Credit Is Important: Teach about Credit Cards–Being away from home for the first time, a student may not realize how small purchases can add up. Because of this, some students go into debt. We encourage you to talk to your student about credit cards and the long lasting effects of credit card debt.

Many students have misconceptions about credit cards. When credit cards are used wisely, they can be beneficial, especially in emergencies. But many college students don’t realize the added costs of interest if the bills are not paid monthly. To reduce the likelihood of an unmanageable credit card debt for Chico students, the University does not allow credit card companies to solicit students on campus. However, mail and online solicitation is rampant, so help your student understand credit terms.

Living Away from Home: Cash Stress– Managing money can be a major source of stress for students. It’s hard to suddenly live on a set budget if you've never done so. The more informed students are, the less likely they are to overspend. Help your students set guidelines. If you are providing them with financial help, we recommend providing assistance one month at a time. If financial aid and earnings will be the major source of their living expenses, help them learn to plan ahead for the entire semester.

As the academic year progresses, your student may feel strapped for cash. Banks sometimes market loans as “financial aid.” However, the terms of these loans, especially over time, may be an undue burden when your student graduates. It is better to consider alternatives other than additional borrowing.

Common-sense Information about Avoiding Debt

1. Avoid use of credit cards.
2. Learn to live within a budget.
3. Talk to a financial aid advisor before you take out a private loan.

Be Smart:  Have Your Student File a FAFSA

We encourage all students, regardless of family income, to submit a Free Application for Federal Student Aid (FAFSA). Even those students who don't qualify for need-based aid, are usually eligible for federal loans that have student-friendly terms and low interest rates. Chico State participates in the Federal Direct Student Loan Program, which provides long-term, low-interest loans, called Stafford Loans, borrowed directly from the U.S. Department of Education, with the loan proceeds delivered through CSU, Chico. CSU, Chico also administers federally backed loans to parents, called PLUS Loans, that are usually a better alternative to private lending.

Thank you. We value this opportunity to encourage parents to share in the education of their students by setting expectations for them to handle the details of daily life as part of attending college. Parents may wish to contact us directly if their student has submitted an Authorization to Release Information available on our Web site (http://www.csuchico.edu/fa/forms/printable.shtml). This allows our personnel to speak directly to a parent about their student's financial aid file, and assures compliance with the federal Family Educational Rights and Privacy Act (FERPA).

Financial aid advisors are available by appointment (phone or in–person) to help with general financial aid inquiries, questions about loans, special problems, technical questions, appeals, and budgeting. Students may call our office at 530-898-6451 to set up an appointment. Customer service representatives are available by phone and at our walk-up windows for financial aid questions, to accept forms and documents, and to schedule appointments.

We hope that your student will love Chico State and will have an academically successful and rewarding school year. Congratulations to you, the parents, for bringing them this far!

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