10%30%forSelectedWants: 10%20%forSavings/InvestmentGoals: Emergencyfundinfederallyinsured moneymarketaccount(onemonthsof expenses) Retirementcontributions(IRAs,Roth IRAs,401(k),403(b),etc.

(k),403(b),etc.) Collegesavingsaccounts Paymentsinexcessofmonthly minimumstolowerhighinterestdebt Irregularexpenses(auto,medical, homerepair/maintenance) Spareofthemoment/justbecause Eachindividualcanandshoulddecidehowthey wishtodivideuptheirMonthlyCommittedEx pensesandMonthlySelectedWants.Youmust decidehowtoallocateyouravailablefunds (incomelesstotaldeductions&expensesdue theschoolplusbooks)bypercentagesandthen workoutthedetails.Itisvitallyimportantthat youborrowless,atthelowestpossiblerates Cable/Satellite/Internet Nonessentialfoodpurchases Carpayment&relatedexpenses* Dineout Childcare/Babysitters Personal CellPhone Entertainment/Recreation Presents/Gifts Vacation/Travel Memberships/Subscriptions Other

andbesttermspayingonlyfor"basiceducation andlivingnecessities,"notrunadeficitandhave atleasta$500cushionasanemergencyfund. Thekeytostudentfinancialsuccessandgoal achievementisbeingfinanciallyinformedand responsiblewithanaffordabledebtandmoney managementstrategyinplacewhichprovidesfor simultaneousdebtrepaymentandbuildingfinan cialassetsthroughsavingandinvesting.Main tainingandstrengtheningcreditstatusisalsoa priority. Borrowingtoomuch,whichisfartooeasytodo viafinancialaidandcreditcards,caneasilyturn anexcellentinvestmentlikeyoureducationinto anunmanageableoverleveraged(notenoughin cometomeetdebtpayments)"bad"investment thatwillconsumeexcessiveamountsoffuture incomethatcouldbebetterusedformorepro ductivepurposes. FreeBudgetingToolsareavailableat www.aptaloanconsolidation.com/tools/ YoumayalsocontacttheAPTAEndorsedEduca tionLoanProgramc/oMEDebtSolutionsbyemail atinfo@medebtsolutions.comorvisit www.aptaloanconsolidation.com. BesuretoreferenceAPTA.

APTA

Endorsed Education Loan Program

Budgeting Essentials for Students

Thecontentofthispublicationareproprietaryand areforinformationaluseonlyandaresubjectto changewithoutnotice.TheAPTAEndorsedEdu cationLoanProgram,APTA,EASGroup,LLC/MEDebt Solutionsnortheauthors/editorsassumenore sponsibilityoranyliabilitiesforanyerrors,omis sion,orinaccuracies.

Copyright APTA - Endorsed Education Loan Program and EAS Group, LLC/MEDebt Solutions. October 2008

APTA - Endorsed Education Loan Program Budgeting Essentials for Students

futureliving/lifestyleimplicationsandadjust mentsnecessitatedbyyourborrowing.Be suretoconsideryourgoalsandtimeline,pro jectedfutureincomeandexpensesandbeing suretoincludepayingyourselfsav ing/investing.

and/orthereductionandeliminationofanydebt startingwiththehighestinterestdebt.Studentscan usethefollowingBasicBudgetGoalsBreakdown templateandrecommendationstocreateabudget.

BasicBudgetGoalsBreakdownforStudents
Income/MoneyIn: FinancialAid PersonalCash/Savings/Investments Scholarships AllOtherSources Expenses/MoneyOut: Tuition,feesandrelateddirecteducationcost duetheschoolplusbooks&supplies. Withtheremainingfundsafterpayingtuition, feesandrelateddirecteducationcostduethe schoolallocate: 60%70%forMustHaveCommittedExpenses: Rent/Mortgage InsurancePremiums Utilities Carpayment&relatedexpenses* Basicfoodneeds Taxes(property&other) Studentloanpaymentsthatcannotbe deferred/postponed Childcare Childsupportoralimonypayments Ongoingcontractualobligations(i.e.credit cards,medicalbills)

BudgetingEssentials forStudents
Thefirstandmostimportantstepinbudget ingisthestatementofyourgoals.Whatdo youwishtoaccomplishandwhen.Your budget(moneyin/moneyout)planwillbe mosteffectivewhenformulatedasearlyas possible,evenbeforestartingschool.You wanttoknowacommitmenttoborrowing onlyforyourdirecteducationexpensesand basicminimumstudentlivingcostsothat youareabletokeepasmuchofyourfuture salaryaspossible.Onaregularbasis,atleast twiceayear,preferablyquarterlyandeven bettermonthly,reviewyourbudget.Com pareyouractualincomeandexpenseswith thoseyouhadprojectedandmakenecessary adjustment.Preferablyattheendofthe budgetedschoolyearyouwanttohavesome thingleftoverwith$500foremergenciesor atleastbreakeven.

Budgetingasastudentdependentonstudent loansourcesissomewhatdifferentthan budgetingasapracticingphysicaltherapist earningasalary.Studentsdependentupon loansshouldfirstidentifyallsourcesoffunds availabletopayfortheireducation.Next youshoulddeducttuition,feesandrelated directeducationcostduetheinstitutionplus booksfromthecheapestsource.Theremain ingbalanceiswhatyouhavelefttopayforall remainingexpenses.Eachschoolpublishesa schoolbudgetwhichprovidesageneral guidelineforstudentscostofeducationand living.Everystudentmustdecidehowmuchof theirmoneytheywishtospendoneachcost itemsuchashousing,transportationandper sonalexpenses,butunderstandthatverybad

badthingswillhappenthatcaneffectyour financesforthenext2030ormoreyearsif youallowyourexpensestoexceedyouravail abledollars.

Asyoutakeonnewborrowing,estimateand compareyourmonthlypaymentsforalldebt toprojectedpracticeincome.Bydoingsoyou areprepared,informedandunderstandthe Asastudentyourfirstsavvyfinancialmove shouldbetocreativelyreduceyourlivingex pensesby10percentwhichwillbeappliedto

*Carpaymentsandrelatedexpensesisa"MustHave"expense onlyifpublic/alternativetransportationisnotaviable,lower cost,reasonable,safeoption.Otherwise,itisa"SelectedWant." Automobileownershipforthepurposeofstatus,convenienceor perceivedfreedomisnotconsidereda"MustHaveCommitted Expense"forstudents.