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Heidi, Class of 1999

How did you initially plan to pay for your PSU education?
I initially planned on funding my education through student loans. Also, my father worked for UNH, so I was fortunate enough to be able to take advantage of the dependent half-tuition waivers.

If you borrowed money…how easy was it to borrow?
Apparently, money was quite easy to borrow. My father completed my loan applications, prompted me to submit the FAFSA, etc. All I really had to do was pick up my “refund” check at the Bursar’s office.

What did you think about repaying your student loans, when you were borrowing them?
At the time, I was completely in the dark about repayment. I was not playing an active role in creating a healthy financial future. The money I received from my “refund” check – I used that to live on during the semester. I knew that at some point after graduation, I would have to begin repaying my loans, but I was unaware of how the interest of my total borrowed amount would be calculated.

Did you use your student loan money for things other than your cost of education?
Most of the loan money funded my education – it was the “refund” check that was considered “free” money.

What is your experience with credit card usage and credit card debt?
I believe that I had a credit card during my first year of college, but I did not use it. It was strictly for emergencies only. After college, I used my credit card to fund trips, moves across country, purchases, food, etc. I think I had three credit cards at one point, and racked up almost $10,000 in charges. I transferred two of the balances onto one card with a zero percent interest rate and began the long, arduous process of paying off my debt. I believe it took me about three years to pay it off. It’s amazing how quickly purchases can accumulate. If you have a couple of cards with smaller balances, it’s easier to think you’re not spending as much as you truly are. Credit card companies are always trying to hook you into their great deals; charge everything and they’ll send you gift certificates and you’ll earn frequent flyer miles. That’s fine for people who are paying off their balances each month, but the majority of the population does not. I still have a couple of credit cards, but I do not use them. It amuses me to see how often the credit card companies are increasing my available credit line even though I no longer use the cards for purchases.

When you were a PSU student did you budget?
Not to the extent I do now. During college I knew I had to make my “refund” check last for the entire semester, so I was careful about my purchases, but I didn’t have a set budget.

Did you have a summer job or a job during the school year to help with your expenses?
Yes, I had a steady job during each summer, as well during breaks, etc. I worked at Lindt Chocolate Factory in Stratham, N.H., waitressed at a couple of restaurants and worked as a snowboard instructor during the winter.

Explain your financial situation now.
Currently, I do not carry any credit card debt. After five years of college, I believe my total repayment amount was around $19K. I began repayment through the graduated payment option, but reconsolidated my loans and was fortunate to do so when the rates were fairly low. I have approximately $5K left to repay and hope to be able to pay that off within the next couple of years. My only other loan is for my car. In total, my approximate debt amount is around $11K. I feel comfortable with that amount as I have always had a steady job and have never missed a loan payment.

Is there financial information you wish you had known as a student that would help you now?
Yes. A “refund” check is not a refund. That money must be repaid at the same interest rate as the rest of your college loans. I also wish I had taken more of an interest in the financing of my education. I relied on my father to make all the arrangements, as he was an accountant and worked for the university system. I probably wouldn’t have taken out the maximum loan amount each semester, but only enough to cover tuition, room & board.

Knowing what you know now about finances...would you have done anything different?
Most definitely. I would have explored alternative sources of funding through applying for scholarships and grants. I also would have served as a CA for my dorm. Working for Residential Life is a great opportunity to become involved in the campus community, develop leadership skills and receive financial compensation towards the cost of living on campus.

What do you think would be the most effective way(s) to provide information to students about personal finance?
Posting information on the Web and holding informational sessions at times when students would attend – maybe at meal times in the cafeteria or in the HUB. I would also change the name of the “refund” check. That is totally misleading, especially to young adults who do not fully understand the concept of where that money is coming from. I would also encourage parents to have their children play an active role in planning the funding of their education.