Here's what the research says about your college budget.

  • Know the conditions of your financial aid. Financial aid counselors see it all the time: a student loses her financial aid and has no idea why. Know that your parents are not receiving any information about your college life once you are 18. You must give permission in writing to allow them access to your records. So they won’t automatically know all this stuff, which means they can’t nag you the way they did in high school. Financial aid — whether it is loans, scholarships or grants — comes with strings attached. You have to show adequate progress toward your degree. You should maintain at least a 2.0 GPA overall — not just in your major — and you must finish at least 70 percent of the classes you take. (Check for specific guidelines at your college; some require more than these minimums.) In other words, go to class.
  • Don’t buy a car. Try to keep or fix your old vehicle if you are a commuter or work off campus. If you live on campus, you don’t need a car. Use campus shuttles, ride a bike or walk. Between payments, insurance and gas prices, a car will drain your bank account and create pressure you don’t need. If possible, work no more than 15 to 20 hours per week. About 75 percent of full-time students work at least some of the time. But research shows that working more than 20 hours a week (15 is even better) impedes your academic progress. Working too much can force you to drop or fail classes, which just costs you more money when you have to take them again. You also should try to find a job on or near campus so that you don't spend a lot of time getting back and forth.
  • Get to know the people in your college financial aid office. They can help you find solutions to some of your financial problems. They may help you reassess your financial need, find grants offered by the university or point you toward federal work /study programs. They will help you remember that for the most part, you have to apply for financial aid every year. Sometimes they can even point you to scholarships that have extra funds available.
  • Aim for a full load of classes. Part-time students are far more likely to drop out. Also, keep in mind that financial aid, especially grants, which don’t have to be paid back, are often based on full-time enrollment.
  • Embrace poverty. Being poor is part of the drill for most students. Acquire a taste for macaroni and cheese, make fun of your old clothes and consider it part of the whole college experience.
  • If you must withdraw from classes, do so the right way. Sometimes, life happens and you must drop out for a semester. Make sure you formally withdraw from classes. Don’t take the missing-in-action approach and just stop attending classes. It can mess up your GPA and your financial aid. Find out early in your first term the rules your college or university has about withdrawing, just in case you need to know later. Not all places have the same rules.
  • Learn to budget. Loan or grant funds arrive early in the school year. Be sure to use the money carefully throughout your term. Understand what the loan or grant covers and what it does not cover. Also, try not to borrow too much; graduating with a $50,000 debt will affect your life choices for years.
  • Avoid credit cards. Talk about a money pit. The fact that you can get a credit card doesn’t mean you should get one. It’s better to learn to live without shopping jaunts and midnight meals at Denny’s than to find yourself in debt. If you do go for a credit card, mainly in order to establish credit, get one with a very low credit limit and pay it off promptly every month.