College Money

Federal loans and private loans are different products. Federal loans carry fixed rates set by law, income-driven repayment options, and forbearance protections. Private loans do not have to offer any of that.

Subsidized federal loans do not accrue interest while you are enrolled at least half time; unsubsidized loans do, and unpaid interest can be added to the balance later.

Borrow per year against the whole degree, not one semester at a time. Total borrowed under roughly one year's expected starting salary is a common rule of thumb, not a guarantee.

Know your servicer, your rate, your balance and your first payment date before you graduate. Grace periods are short and default is expensive.

Student income is lumpy: aid refunds and summer jobs arrive in chunks, expenses arrive monthly. The job of a budget here is to spread the lumps.

Work out a monthly baseline — rent, food, phone, transport — then divide each lump sum by the months it has to cover.

Keep a separate account for money that is already spoken for. Seeing a large balance in your everyday account is what causes it to disappear.

Track the two categories that actually move: food ordered in and subscriptions. They are where most student budgets quietly leak.

As a W-2 employee, your employer withholds taxes for you. As a 1099 contractor, nothing is withheld and you owe self-employment tax on top of income tax.

Unpaid internships are legal only under narrow conditions in the US. If you are doing the work of a paid role, ask what the position is classified as.

Negotiating a stipend or hourly rate is normal, even for interns. So is asking whether housing or travel is reimbursed.

Keep every offer letter, pay stub and expense receipt for the year. They matter at tax time and if pay is ever wrong.

You may need to file if your income passes the filing threshold — and it is often worth filing anyway, because withheld tax comes back as a refund.

Education credits can be significant. The American Opportunity Tax Credit and the Lifetime Learning Credit have their own eligibility rules, and only one can be claimed per student per year.

Whoever claims you as a dependent generally claims the education credit. Coordinate with your parents before either of you files.

Form 1098-T from your school reports tuition; 1099-INT, W-2 and 1099-NEC report other income. Wait for all of them before filing.

A student credit card used for one small recurring charge and paid in full each month builds history with almost no risk.

Utilization is measured against your limit. A small limit means even modest spending reports high, so pay before the statement closes if you want a lower reported number.

Applying for several cards in a short window creates multiple hard inquiries and a thin, young history — both work against you.

Campus card offers with free merchandise are still credit agreements. Read the interest rate and annual fee before signing anything.

A Roth IRA is funded with money you have already paid tax on. Qualified withdrawals in retirement, including growth, come out tax free.

You can only contribute if you have earned income, and only up to the lower of your earned income or the annual limit set by the IRS that year.

Student years are usually your lowest-tax years, which is exactly when paying tax now and never again is most attractive.

Contributions (not earnings) can generally be withdrawn at any time without tax or penalty — one reason a Roth is a reasonable first account, though it works best untouched.

Landlords commonly want gross monthly income of about three times rent, plus a deposit and often the first month up front. Budget for move-in costs, not just rent.

Read the lease for the parts that cost money later: early-termination terms, subletting rules, who pays which utilities, guest and pet policies, and how the deposit is returned.

Photograph every room, including damage, on the day you move in and email the photos to yourself and the landlord. That record is what gets deposits back.

Renters insurance is cheap and covers your belongings and liability. The landlord's policy covers the building, not your laptop.