THURSDAY, MAY 11, 2006
GRADUATION
INVESTING
THE UNIVERSITY DAILY KANSAN 5C
Investing in the future
Students should start saving for retirement
BY ASHLEY PATE
editor@kansan.com
KANSAN CORRESPONDENT
With all the stresses of your upcoming graduation you don't need anything else to worry about. But you should be concerned about your financial future.
The first and most imminent issue that needs to be addressed is paying off your student loans. Before you consider consolidating your loans though, make a plan.
This plan should include a monthly budget of what you're spending and a budget of the loans and other debts that need to be paid off.
Once that plan is made, the next thing you should be concerned with is a general financial plan. It's easy to live paycheck to paycheck and not invest any money but it's smarter to look to the future and plan for your retirement.
"Social Security is going to be a question mark in the future."
CHECK THIS OUT
Some Web sites to check out:
www.fool.com - for articles and other information about financial investing
www.virtualstockexchange.com - if you want to try out your investing skills without using your hard-earned money
www.sharebuilder.com
- an online stock brokage
that also sells an Investor
Starter Kit
http://finance.yahoo.com/
retirement - info on saving
for retirement and has calculators that can help you
create a financial plan
professor.
Gentry will be teaching a new Journalism class next year, Financial Basics for Communicators, which will look at how companies make money, interest rates, profits sheets, and balance sheets among other topics. One other topic that is especially important that Gentry will discuss in his course is investing in a 401k retirement plan.
According to money-talk.org, a "401k retirement plan is a trust in which employees are allowed to contribute money before taxes are assessed." Employers take a portion of their employees' paychecks, automatically deducted every month and put it in a 401k. This means that whatever portion of the paycheck put into the 401k cannot be taxed by the government. Many times if your company offers a 401k, they will be able to match what you put into it. Many financial investors promote the 401k because it is tax sheltered.
Although you may not be thinking that far into the future, you should. If you wait until you are in your forties, it will be much more difficult to retire at the age that you want. Because the government may not be able to help with things such as the social security system, it is important to start thinking ahead.
Another investment to mull
over is stock investing. This can be an easy way to make some money, but should be thought of as a long-term investment. Research should always be done before diving into any particular stock.
In a January 2006 article titled "Why you should be terrified," Richard Gibbons, investment analyst for the Motley Fool wrote, "Don't invest based on tips or stories; only invest in businesses. Make sure you understand how the business makes money and why it will continue to do so in the future."
Stocks are also a good starting point because you can invest as little or as much money as you want. Also, it is easy to access your stock portfolio if you choose to go through an online broker.
Just remember that making a plan is essential to your financial future and that research is a must if you want to do things right. Happy Investing!
- Edited by Timon Veach
LOANS
Paying back those student loans
BY DAVID LINHART
editor@kansan.com
KANSAN CORPORATION
Students are increasingly shouldering the costs of college instead of their parents and they're partly using private education loans to do it, according to student aid figures from CollegeBoard.com and an April 10 article in The New York Times.
My RichUncle.com, offers clear advice to those seeking private education loans: if you can get scholarships, grants or loans from the federal government, then choose that before trying private loans.
CollegeBoard, which collects and publishes student financial aid data, tracked a 734 percent increase in non-federal loans over the last 10 years. During the same period, federal loans increased only 89 percent. In the past year, private lenders issued $13.8 billion in loans, which accounted for about 18 percent of all loan funds issued in 2005.
Students turn to private loans because they can only borrow from the government up to the cost of attendance at their chosen school.
Ginny D'Angelo, vice president and manager of student loans for Commerce Bank, said she had seen an increase in the number of loan applications from students. Commerce Bank operates a small branch inside the Kansas Union.
D'Angelo said Commerce Bank had experienced the same trend that CollegeBoard documented at the end of last year: an increase in non-traditional students who weren't dependent on parental money and simply more students paying their own way. Roughly 40 percent of undergraduates are nontraditional students, according to CollegeBoard.
"Especially the graduate population, students who go back and get their MBAs," D'Angelo said. "We obviously hope the growth of student loans will continue."
An online loan company, MyRichUncle.com, offers clear advice to those seeking private education loans: if you can get scholarships, grants or loans from the federal government, then choose that before trying private loans.
The fine print explains why. Private loans from MyRichUcle.com or Commerce Bank typically come with higher interest rates—sometimes four times as high as loans from the Federal Direct Loan program. Repayment schedules are shorter; a short-term loan from the KU Endowment Association must
be repaid in full a year after disbursement.
Commerce Bank has had such success with education loans in Missouri and Kansas that it began seeking new markets in Oklahoma and Arkansas in the past year. The bank aggressively targets the student population, sending bank representatives to individual schools to offer loan options to cash-strapped students.
Suzette Runyon, Lyndon junior, is among the growing number of students whose parents don't pay for their children's college expenses. Runyon's parents told her before she finished high school that she'd pay for college. They wanted her to learn the value of a dollar, Runyon said, and to appreciate her time at the University.
Last year, Runyon took every loan dollar she could get from the FDL program and added a $2,000 loan from the Endowment Association on top of that.
even more for my education degree," Runyon said. "Going into education, I know it's going to be really hard to pay back my loans."
Linsie Eriksen, Aurora, Colo. sophomore, said education loans were hugely important for her. Without them, she could never attend college — much less an out-of-state school like the University.
"It's really hard right now because I'm going to be a fifth year senior, and I'll have to take out
"I didn't really have a choice when it came to paying for college, it was this or nothing," Eriksen said. "My parents can't afford to send my brother or me to college, so we took the role of paying for college upon ourselves."
CollegeBoard estimates that the average student who borrows money to pay for a bachelor's degree will graduate with $15,500 of debt. More than 60 percent of public university students will graduate with some type of debt.
Though Commerce Bank continues to push its private loan program, D'Angelo acknowledges the drawbacks of non-federal borrowing.
"Alternative loans aren't necessarily the best way to go," D'Angelo said. "Students can get into a lot of debt."
Commencement Schedule
2. 30 to 4:15 p.m. Office of International Programs and ISSS recognition and certificates for graduating international students, Kansas Room, Kansas Union, level 6, followed by a reception for graduates, their family and friends. Malott Room, Kansas Union, level 6.
—Edited by Vanessa Pearson
Fridav. May 19
4 to 6 p.m. School of Business recognition for bachelor's degree candidates and hoding for master's degree candidates. Lied Center.
Saturday, May 20
8. 30 a.m. School of Journalism graduate recognition and master's degree hooding ceremony Lied Center. Reception follows, lawn of Stauffer-Flint Hall.
8:30 to 10 a.m. Reception for Chancellor's student awards recipients. Kansas Room, Kansas Union.
9 a.m. School of Allied Health recognition ceremony, Memorial Hall, 600 N. 7th St, Kansas City, Kan.
10 to 11 a.m. College of Liberal Arts and Sciences master's hooding, Crafton-Preyer Theatre, Murphy Hall.
10:30 a.m. School of Fine Arts Convocation, Lind Center
10:30 a.m. to noon. School of Allied Health and School of Graduate Studies brunch for graduates and families. Murphy courtyard, the University of Kansas Medical Center, Kansas City, Kan.
11 a.m. School of Nursing recognition ceremony, Memorial Hall, 600 N. 7th St, Kansas City, Kan.
11 a.m. to noon. Phi Beta Kappa initiation. Woodruff Auditorium, Kansas Union. Noon. Phi Beta Kappa initiates reception. Big 12 Room. Kansas Union.
11 a.m. to 2 p.m. KU Visitor Center open at 1502 Iowa St.
Center open at 1024 Iowa St.
12:30 to 2 p.m. School of Nursing
brunch for graduates and
families. Murphy courtyard, the
University of Kansas Medical
Center, Kansas City, Kan.
1 to 3 p.m. Program and reception for graduating seniors who have completed the University Honors Program and for graduating University Scholars, Crafton-Preyer Theatre, Murphy Hall.
1 to 3 p.m. School of Education convocation. Lied Center. Tickets at www.soe.ku.edu.
4 p.m. Graduate School doctoral hooding. Lied Center.
2 to 3 p.m. School of Medicine graduation lunchon for graduates and families. Murphy courtyard, the University of Kansas Medical Center, Kansas City, Kan.
6 p.m. Multicultural graduation banquet. Kansas Room, Kansas Union.
macy senior recognition and Pharmacy hooding, Crafton-Prayer Theatre, Murphy Hall. Reception follows, Murphy courtyard.
6 to 7:30 p.m. School of Phar-
7 p.m. School of Medicine hooding and awards, Lied Center.
7 to 9 p.m. Division of Biological Sciences recognition of honors, awards, and graduating seniors ceremony.120 Budig Hall.
Sundav. May 21
8 a.m. School of Engineering recognition and awards ceremony. Lied Center, Reception following at Oliver Hall.
a. m. to p.m. Memorial Drive closed to traffic. (Parking ban begins midnight Saturday.)
9 to 11 a.m. Environmental Studies Program graduate recognition and honors reception. Environmental Studies office, 415 Snow Hall.
9:30 a.m. Department of Applied Behavioral Science recognition for students receiving BA and BGS degrees. Courtyard between Dole and Haworth Halls.
9:30 a.m. Department of Math graduation celebration. Brunch and recognition ceremony. 120 Snow Hall.
9:30 to 10:30 a.m. Speech-Language-Hearing/Intercampus Program in Communicative Disorders undergraduate and graduate recognition ceremony. 110 Budig Hall, Reception follows. Wesco Hall patio.
10 to 11 a.m. Bachelor of Social Welfare recognition. 120 Budig Hall.
10 to 11:15 a.m. School of Law
hooding, Lied Center, Tickets
required, Reception follows,
Green Hall.
10:30 a.m. to 1 p.m. Class of 2006 Commencement lunch.
Chancellor's residence, 1532 Lilac Lane. Program begins at
11:30 a.m.
11 a.m. to noon. College of Liberal Arts and Sciences recognition for students graduating with distinction and highest distinction. Crafton-Preyer Theatre, Murphy Hall.
11 a.m. to 2 p.m. KU Visitor Center open at 1502 Iowa St.
11:30 a.m. School of Architecture and Urban Design Commencement luncheon and recognition ceremony. Tickets required. Ballroom, Kansas Union.
Noon to 1:15 p.m. School of Social Welfare hooding for M.S.W. candidates, Lied Center.
2 p.m. Commencement participants assemble on Memorial Drive.
2:30 p.m. Commencement procession begins.
Monday, May 22
10 a.m. to noon. Joint Service
10 a.m. to noon, court seat on commissioning ceremony. Kansas Union ballroom. Reception follows.
source: commencement.ku.edu
CONGRATS, GRADS! Join us at the Yacht Club for our great specials
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$2 Domestic Bottles
$2.50 Aluminum Bldd & Blud Light Aotles
$2.75 Import Aotles
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$1.50 Single Wells
$2 Wheat Pints
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$2.50 Single Crown, Alabaster, Malibu
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D. Steak Entree
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$ 7 2L Domestic Towers $11 3L
$ 2 Single Jack, Captain, and Smirnoff Drinks
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