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College can be an exciting place for self-discovery and growth, but it's also where some young adults develop poor money management habits. If not addressed, these bad habits can often stick with students long after they've left school.

Learn about some of the most common financial problems for college students and find out how you could manage your money wisely.

1. Not Taking Advantage of Financial Aid

By not applying for financial aid, which comes in the form of grants, federal loans and work-study programs, you may be missing out. Take time to fill out a Free Application for Federal Student Aid (FAFSA), which could help you get additional funding for your college expenses.

Keep track of the deadlines for filing this application and begin your hunt for scholarships well in advance. A checklist of the documents you need to apply for financial aid, such as federal income tax returns and bank statements, could help you stay on track. While it may feel overwhelming, getting your documents in good order could help prevent any snags.

2. Not Creating a Basic Budget

One of the most common financial problems for college students is not having a budget. Without a budget, you may have a hard time keeping your money in good order. Start with a basic budget by listing your expenses - such as tuition, books, room and board, food, school supplies, computer equipment, clothing and entertainment - and income. Don't forget to include one-time expenses, which can consist of things like travel costs for spring break and the holidays and bedding for your dorm room.

Set limits to how much you will spend on specific categories, such as dining out or entertainment, which could help you develop financial self-control. If it's your first time creating a budget, ask your parents or an older sibling who has gone through the ropes to assist you. Also, if you receive financial aid and get a refund check, which can happen if there's more money than what's needed to cover your student account balance, develop a plan for how you'll spend that money. Remember: If it's coming from student loans, it's money you'll need to pay back eventually.

3. Not Knowing the Difference Between Wants & Needs

Are you often flooded with slews of images for alluring products with convenient "buy now" buttons? In the digital age, many people are more inclined to buy stuff they don't need.

But before you give in to the impulse to buy something, take a step back and ask yourself:

Will this product make my life easier?

How will this product add value to my life?

How many times will I actually use this product?

Of course, you will occasionally buy a "want," but making a 30-day list could help you curb your spending. Make a list of non-essential items that you want, and if you still have that nagging desire for something after 30 days, consider making the purchase. Then, look into ways you can get a deal, such as using an online coupon or purchasing the item during a sale.

4. Credit Card Misuse - or Disuse

Your college years are a great time to start building credit. As you may know, having a stellar credit history - and, in turn, an excellent credit score - could help you save money as a consumer. Without good credit, you may not qualify for the best rates and terms on a future car loan, mortgage or personal loan.

To build solid credit, consider being added as an authorized user to one of your parents' credit cards. You'll want to discuss it with them beforehand, including your credit limits and how you'll handle payment. Of course, you'll want to use the card responsibly. Another option is a secured credit card. These work like a hybrid credit-debit card. You'll be required to put down a cash deposit up front, and you can only spend up to the amount you've deposited - so if you deposited $500, your credit limit would also be $500.

Not using your credit card responsibly can really put you in a debt grave - and hurt your credit score. If you do decide to sign up for a credit card, it could be beneficial to avoid using it for unnecessary expenses. That means weekend road trips or spring break vacations you can't afford - or splurging on clothing, fancy gadgets or a music festival. While the fear of missing out can certainly give you the urge to put things on credit, resist the temptation. Stick to your budget instead. Your financial well-being depends on it.

To avoid treating your credit card like it's free money, consider starting with a low balance and committing to only using the credit card for specific purchases and paying off the balance in full each month. If you aren't able to pay it in full each month, devise a game plan to crush that credit card debt in a set amount of time.

5. Not Planning for the Future

You'll spend most of your time in college studying for exams, doing coursework, sitting through lectures - and making the most of what college has to offer. College life is so busy, so it may seem like a tall order to drum up a plan for the future. But it could help to ensure you have a parachute before you jump into the "real world."

Think about coming up with a game plan for paying off any student debt and taking steps to transition as smoothly as possible from graduation to your first job. You may even consider significant life goals, such as buying your first home, getting married, starting a family and retirement. While you don't need to have all the answers now, it may help to start with a road map.

Consider taking steps now to avoid some of the most common financial problems. Making these mistakes could cost you dearly in the long run, but an ounce of prevention is worth a pound of cure. Will that ring true for you?

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5 Common Financial Problems for College Students | Western & Southern Financial Group

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College can be an exciting place for self-discovery and growth, but it's also where some young adults develop poor money management habits. If not addressed, these bad habits can often stick with students long after they've left school. Learn about some of the most common financial problems for college students and find out how you could manage your money wisely.

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Bill Gates: The American college financial aid system is failing students

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Want to reduce student debt and boost college attendance? Fix the FAFSA, writes Bill Gates.

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The Classroom | Empowering Students in Their College Journey

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Many students accumulate debt before they realize what's happening, and it may be difficult to start digging your way out of debt once you graduate. According to the Institute for College Access & Success, debt levels for students pursuing a degree in 2016 ranged from a low of $4,600 to a high of $59,100. That debt can lead to financial problems that follow students for years--even decades--after graduation.

Look at Tuition and Fees

College tuition and fees are large expenses for students. A full-time college student might spend thousands of dollars each term for credit hours, campus parking and books. Many times, these students do not realize they could apply for federal Pell grants to cover many of these expenditures. Pell grant recipients must meet certain income requirements, but scholarships are often available for students not eligible for those grants. Find out more through your school website or counseling office or on websites such as Studentscholarships.org. Avoid parking fees by carpooling with other students when possible and purchasing books online, in an off-campus, discount bookstore or from other students to save money. And always check with your instructor before buying books to make sure you actually need them for class. Supplies such as backpacks, pencils and notebooks are usually available at a discounted rate in dollar or outlet stores. Online you can find financial problem among students essays or other info to help you in your quest.

Consider Credit Card Debt

Students are frequently targets of credit card companies and can quickly accumulate debt. Cards that carry high or variable interest rates and hidden charges can cost you a lot quickly and can leave you struggling to make even the interest payments on the cards. Because of the recently enacted Credit Card Protection Act, students under 21 must get a co-signer and credit card companies must give you the option of stopping payment on charges to avoid over-limit fees. They must also tell you before hiking interest rates. Students should read credit card terms carefully before accepting any offer, and make sure to pay their balance monthly to avoid accumulating debt. This is a typical financial problem of students entering college.

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Review Housing Costs

Living expenses can eat up a lot of students' money, particularly those who are able to work only part-time or not at all. Consider living with your parents to save money if you attend a local college. If not, you definitely need roommates to help cover expenses if you live off campus. You might find that a two- to three-bedroom apartment or dorm room is much less expensive than a one-bedroom if you split the bills evenly with one or more roommates. Consider whether you need extras such as a home phone, cable or extra Internet services. Try using your cell phone as your main phone after rate comparison shopping, and if you must have Internet and cable service, find the lowest-priced deals. Turn your air conditioner, heater and lights off when leaving the home to save money on electricity. Food and other necessities can often be bought at dollar or discount stores to save money.

Examine Student Loans

Many students take on a great deal of debt in the form of student loans. All too often, students take out loans from private companies with high interest rates. According to CNBC, variable interest rate private loans average 7.81 percent, while fixed-rate private loans fall around 9.66 percent. These rates can lead to long-term debt that is often difficult to cope with for recent college graduates. Federal subsidized and unsubsidized loans have a slightly better interest rate of 4.45 percent. At the end of the loan period, repayments required will not exceed 10 percent of your discretionary income, and if the loan still exists after 20 years, the balance is forgiven.

What Is a Financial Problem?

A typical financial problem of students is they don't take the time to assess before they reach an excess in credit card debt or other debt. Many students who are out on their own for the first time may get caught up in a cycle of overspending that comes with eating out, buying new clothes or partying. This lifestyle can become expensive very quickly and can increase overall debt. To avoid unnecessary expenses, follow a budget in which you pay your necessary expenses first and leave yourself a specific amount of your income for entertainment. Then stick to that budget. Try cost-saving ideas such as watching movies at home, cooking your own meals regularly and buying clothes from discount stores.

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Many students accumulate debt before they realize what's happening, and it may be difficult to start digging your way out of debt once you graduate. According to the Institute for College Access & Success, debt levels for students pursuing a degree in 2016 ranged from a low of $4,600 to a high of $59,100.

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Plan a meeting with our financial adviser. Our Financial Aid office located on the second floor of the student center Monday-Thursday: 8am-5pm Friday: 9am-5pm Phone: 734.487.0455 or 888.888.3465 Email: Office of Financial Aid: financial_aid@emich.edu.
There a plenty of options. You can enroll in a payment plan over a period to extend the time you have to pay for your Financial bill.

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While financing your college is not easy, we have created a 5 step strategy to lighten the load.
1. Identify your income; How much can you contribute to your tuition?
2. Find a part time job.
3. Apply for as many scholarships as you can; the more money you have the less your tuition is.
4. Apply for grants.
5. Plan a face to face meeting with the EMU financial aid office and plan something that works for your specific issue.

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College tuition and fees play a big part of college students financial problems. Many students spend a lot of money for the many credit hours they have to take a semester, housing fees, and books. Many students get their debt from student loans. Students tend to take out loans from private companies who have a high interest rate. Interest rate private loans average 7.81 percent, while fixed-rate private loans fall around 9.66 percent. These rates can be a long time debt issue. Many students who are out on their own for the first time may get caught up in a cycle of overspending that comes with eating out, buying new clothes or partying. Also low income families usually do not have much if any spare money to go towards their college tuition. Low income families rely on strictly financial aid and since financial aid is scarce and only few people receive the amount they truly need. They end up finding it hard to pay for their tuition. While Middle class families may have a little more money, it is almost never enough to cover their whole tuition. Middle class families are often overlooked because their parents income may say it is enough to fund their college tuition but other costs are not included in their salary and other responsibilities.

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Financial Issues arise due to lack of money. Many people do not have the money to pay for their whole college tuition which on average is $34,760 a year. Many college students tend to build up debt without realizing it. It can be very hard to dig yourself out of debt once you graduate. With that, college is a place where a lot of teens realize it's hard being on your own and they also realize they have poor money management skills. If no one says anything to you about the poor money management skills these kind of things can tag along with students for the rest of their time being in college.