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Why should I create a budget?

A budget is a guide that keeps you on the path to reach your financial goals. Budgeting keeps your finances under control, shows when you need to make adjustments to your spending, and helps you decide where your money goes instead of wondering where it all went.

• Budgeting helps you achieve academic and financial goals
• Budgeting makes it easier to plan, to save, and to control your expenses
• Budgeting can help you avoid debt and improve your credit

To create a budget, first list all the categories of your spending: rent, food, phone, personal expenses, entertainment, etc. Then assign an amount to each category. Keep track of your actual expenses for 1-2 months and see how they compare to the amount you listed on your budget. I’m sure you spend more than you realize in certain categories. If you are spending too much in some of these categories, you’ll need to make some changes to your spending. It’s a good idea to revisit your budget once a month to see how you’re doing and make any needed adjustments.

Students have reported receiving phone calls, emails, letters, and/or texts offering them relief from their federal student loans or warning them that student loan forgiveness programs would end soon. Usually, the so-called student loan debt relief companies offering these types of services don’t offer any relief at all. Often they’re just fraudsters who are after your money. There’s nothing a student loan debt relief company can do for you that you can’t do yourself for free.

Here are some signs to help you identify a scam by a student loan debt relief company:

• They require you to pay up-front or monthly fees for help
• They promise immediate and total loan forgiveness or cancellation
• They ask for your FSA ID
• They ask you to sign and submit a third-party authorization form or a power of attorney
• They claim that their offer is limited and encourage you to act immediately
• Their communications contain spelling and grammatical errors