Things have become a little tense at my neighbor’s house and it has nothing to do with whose turn it is to take out the garbage... well, maybe it does a little. No, the big issue they’re grappling with right now is “The List” for their son’s college applications. Topping that list for him (let’s call him Vince to protect the innocent — or not so innocent in his case — but I digress) is a very expensive, out-of-state, private university. Vince has had his heart set on going there since he was child and he can already imagine himself walking its hallowed halls. Unfortunately, their family circumstances make such a huge financial commitment quite problematic, so his parents believe he shouldn’t even bother applying to “Dream School.” Hence, the tension. While the right approach to college is highly personal and needs to be adapted for each family’s circumstances, there are a few ways to responsibly approach this emotionally-charged situation. Consider this free advice, Vince.

Don’t take colleges off “The List” just because of their published cost. In many cases, students don’t actually pay the list price, because some discounting does happen. Think of it like buying a car. The sticker price gives you a sense of the car’s sales price — but not really what you will actually pay. You may be offered federal, state, or institution grant aid that doesn’t have to be paid back. You might earn a scholarship or be eligible for work-study.

Give yourself the best chance at admission and aid. Put together the strongest application possible. Get the stats for the student applicant pool to that school. Sites like Cappex might be useful in your research. Make sure that you really measure up and make yourself as desirable — within reason — as possible. Also, don’t underestimate the power of timing. Schools may be a little less stringent about their criteria and a little less stingy with their aid earlier in the application season. As seats start to fill up, though, your chances get slimmer.

Fill out the FAFSA and apply for every scholarship you are remotely eligible for. Yes, this is a pain and can eat up precious Xbox time, but if you need money you need to ask for it. Don’t make the mistaken assumption that the FAFSA is not for families in “your income bracket.” It is for anyone and everyone who would like to be considered for financial aid. You also shouldn’t shun those little scholarships that only offer a few thousand dollars. Often, there is so much competition for the bigger ticket scholarships that your chances could be better at winning a few smaller ones than one big one.  Check out Sallie Mae’s Scholarship Search as a place to start, but don’t forget to look into your parents’ employers and your local civic or cultural organizations.

Consider the whole picture and be creative. The total cost of college is more than the one number listed at the bottom of page 38 in the view book. You have to consider room & board, books, and other living expenses. Then take that number and multiply it by four — assuming you finish your undergrad in four years. By the way, Vince, I STRONGLY recommend you finish in four years wherever you go. There is absolutely no sense in paying for extra years if you can help it. But back to the issue at hand… To get a good picture of what your total cost of attendance might be try our Education Investment Planner.

After fully understanding your costs, you can start thinking about how to tackle them creatively. For example, renting books is a great way to cut costs. On-line retailers like Chegg allow you to rent books for a fraction of the cost of buying all new books every semester. Think about your sources of money, too. And when I say “your,” I don’t mean just what your parents cover. This is, after all, your education so maybe you can chip in a bit. Think about savings, summer jobs, and your vintage T-shirt collection, which might fetch some dollars on eBay. When it comes to meeting the tuition bill, some colleges offer tuition payment plans that let you break up one big scary bill each semester into more manageable chunks. Often, you will need some combination of savings, payment plans, and maybe even student loans to cover it all. If you go down the student loan route again think about big picture. What will you owe after you complete your undergrad?  What will you owe if you go to grad school later, too? Be smart about student loans and look for ones that minimize your total loan cost.

Last but not least … have open, realistic, and respectful family conversations. Parents should explore what their child is hoping to get out of his college experience and students need to understand what financial limitations they need to consider for their final choice in a school. For example, does Vince really want to have his diploma issued by a prestigious school or is trying out a new, challenging environment really the desire. In the former case, maybe he can start out at a less expensive school for the first year or two and then transfer to his dream school. If it’s really all about location, there may be other, more affordable colleges in the same area. Remember that going to college should be a winning proposition. The end goal is a great education that helps you throughout your life, not a painful four years or debt that saddles you for life.

So good luck to Vince and all those college-bound hopefuls out there. Have a great senior year and an amazing college experience that you can appreciate for decades to come. Oh, and maybe offer to take out the garbage more often. It could be another way to help keep tensions low in your home.

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Enter our “Smart Money Tips Giveaway” for a chance to win a high-tech prize! Now through the end of January, post your tips on how you successfully manage your money or complete the FAFSA and enter a weekly drawing for top tech gadgets. We’re heading into 2011 with a “Smart Money Tips Giveaway” to help you save money for college—and for life. Whether you’re saving for college, footing a higher education bill, repaying student loans or managing your spending, Sallie Mae, the nation’s only financial services company specializing in education, invites you to ring in the new year by sharing your money management tips with us!

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It’s that time of year again. Decorations, long lines, last-minute shopping, diminishing bank account, and a busy schedule. Yet, before any of that can happen, you must pass the hurtle called FINALS. Usually the most difficult portion of the semester, I believe finals were created to separate the weak from the strong. In my days of college I’ve seen different emotions flow out of my classmates. In fact, just today I saw a girl cry from the work overload. There are the excited ones who can’t wait for the semester to be over so they can spend winter break lounging in their pajamas. Then, like my sobbing classmate, there are the overly stressed ones who break down.

So perhaps, to make the holiday season that much better you must first battle finals. This means don’t procrastinate! Finals can involve many projects, presentations, and exams. Make a list of what needs to get done and when, then organize it in a way that will help everything get done on time. For example, order it by what will be easiest to accomplish or which is the quickest to finish. That way when it comes time for the due date you won’t be stressing about it not being done.

You’d think that after all of that the stress would be over, right? Wrong! For many college students it's time to travel! From my experience in holiday travel I have declared one thing: It’s madness! The airports are flooded with people, the weather makes for a greater chances of cancellations and delays, and it’s EXPENSIVE! Plane tickets alone put a hole in your pocket; with luggage fees and meals not free anymore, it really takes more money than usual. Plus, knowing you are spending that much money makes the next part that much more stressful.

Holiday shopping!!! If you’re like me, then holiday shopping is ten times worse than any of the other holiday break problems. Why? I always end up shopping for myself, too! I’ll buy a shirt for my friend and see it in another color and think, “that would look great on me.” So it goes in with the purchase. There are always so many presents to buy… family, friends, significant other, coworkers, etc. Holiday shopping becomes EXPENSIVE. Make sure you watch out for deals. Also, use your Upromise account to score some great deals and to help save money toward college.

Once you get to the best part of the holidays — when you get to spend time with people you care about — it’s back to school. Winter break never seems long enough, does it? January comes around, a new year has started, and so does a new semester. There’s always something to look forward to though: SPRING BREAK!

I was at a birthday party for my father, chatting with some of his former colleagues. (He worked for the same company for 21 years.) They asked me about my job overseas, and one of their first concerns was that I wasn't paying into Social Security. (Yes, I filed taxes.) Wasn't I worried about retirement?

No, mine won't be anything like my parents' retirement. No pensions, no chance Social Security would cover much ... I explained I was financing this one myself.

Start now and budget for later with an IRA or 401(k)

Are you in a full-time position or looking to enter the working world? If graduating, you're probably starting a new job or resuming your career. Whatever your situation, if your employer offers a 401(k) or other retirement savings plan, take full advantage of it. If your job doesn't offer a retirement savings program, it's a good idea to look into IRAs.

Retirement isn't what it used to be. On one crucial level, it's undeniably better — people are living far longer and enjoying healthier and more active retirement years. My dad's colleagues were having a blast near and past retirement age. Some were consulting, some working full time, some spending days with the grandkids or once-neglected hobbies, some taking extended trips. But the reality is that, over the past 25 years, the burden and risk of financing retirement has quietly shifted from employers to workers.

For a host of reasons, the goal of a financially secure retirement is becoming increasingly difficult to achieve. So you must start younger and act on the fact that even contributing $10, $20, or $50 per pay period can make an enormous difference in your future!

Let early contributions work their compounding magic for you. Over decades, your money has the potential to earn interest, and so does your reinvested interest. Try to increase your contribution level by 1% or more each year as your salary grows and you will reap the benefits in the long run. There are a million easy ways to put off doing it, but the longer you wait, the harder it will be to accumulate the amount you need. After a month or two, you do adjust.

Company matches

Looking for an investment that earns a guaranteed return of up to 100%? Then hope your employer offers a company match on your 401(k) or other retirement savings plan. By not participating in a matching program, an employee leaves real money on the table — essentially passing up a raise. Company match formulas vary and can range from 1% to 6% or more of a worker's pay.

Mercer Human Resource Consulting reports that employer matches are becoming more generous, and a Hewitt Associates survey indicated that 8% of companies planned to add or increase a company match in 2007.

Heard of the Roth 401(k)?

This year marks the 30th anniversary of the 401(k), which uses pre-tax dollars to reduce your taxable income, so you pay taxes on your salary minus your 401(k) contribution. No taxes are paid on your 401(k) until you start to withdraw money after age 59.

The Roth 401(k) basically flips that formula, so that contributions are made with after-tax dollars. Upon turning 59-1/2, all your Roth 401(k) withdrawals — including the earnings on your investments — are tax-free. This is a very attractive option for workers in their 20s, who are often in lower tax brackets, and the very affluent. Hewitt Associates reports that 14% of workers in their 20s selected the Roth 401(k) whenever it was available — the highest rate of participation for all age groups.

So how will you finance your retirement?

My dad's colleagues thought I was a math genius or really organized and ambitious. (Ha! I set them straight!) I've just been hearing about saving for retirement my whole life. Like them, my employers have helped me make sure money gets socked away with every paycheck. They just don't offer pensions.

How you build your nest egg is largely up to you, but starting early — despite all the challenges — makes the task exponentially easier. Begin with the benefits department at work. Visit your local bank to see the savings options offered. Consider making an appointment with a Certified Financial Planner to ensure you are making the right decision for you!

Additional information

Here are some resources for information on how to make the most of your future savings:

• www.401khelpcenter.com/Employee_index.html
• www.sec.gov/investor/pubs/inws.htm
• www.nelliemae.com/calculators
• www.investopedia.com
• www.bankrate.com/brm/calculators/manage-money.asp
• www.smartmoney.com

With school, finals, travel plans, and work, do you have to figure out a way to shop for the holidays? I remember my schedule: wake, breakfast with tons of caffeinated soda, final exam, back to dorm, turn in final paper, lunch, study session or another final, work-study (dinner during 15-minute break), back to dorm/library to study more, sleep. “Take bus to and cruise the mall wondering what to get the fam” wasn’t going to fit in with either my schedule or my finances.

What my family does these days seems so much saner. The grown-ups name their favorite charity and the other grown-ups donate to it. This has several advantages:

• First, we have enough stuff.
• Second, we don’t have to guess whether Aunt Agnes is still into the local animal shelter or would rather raise money for disease awareness.
• Third, we can give within our means and online (and get a tax break).
• Fourth — and most important — the charities benefit.

The kids get what is on their wish lists. This means I get presents for my nephews and a couple friends. I am done!

Another fun idea, which we tried in years past, was various forms of Secret Santa. Everyone draws a name and gets a present for that one person. Usually minimum and maximum dollar amounts are set.

As part of a Secret Santa or as a separate theme, here are some other ideas:

• You can do it anonymously (“Who got me this? It’s perfect!”).
• You can give only joke gifts (“Look! A telenovela children’s all-star Christmas album!”).
• You can make it a re-gift festival (“I think I remember this unicorn from 1996 …”).
• You can set a theme: handmade (“What is this?”), dollar store (“When you care enough to give the very best.”), favors (“You’ll hang my ceiling fan?!”), opposites (“You shouldn’t have. Really.”) …

The possibilities are endless.

The point is exactly the cliché that “it’s the thought that counts.” So put a little thought into ways not to rack up cost and you can ratchet up the fun.

The first semester of a new school year presents some pretty tough challenges, especially for freshmen. Between new dorms, new roommates, and new professors, there’s a lot of…well, new. It can be exciting, but it can also be overwhelming. After a week or so, you may feel like your brain is about to explode. Managing stress well is an important skill, because stress never goes away. But with a few simple tips, you can easily stay sane throughout your first year.

1. Relax. Take time to do something enjoyable, whether it’s playing Ultimate Frisbee or reading Jane Austen novels.
2. Escape. Get away from campus for a day or two. You can visit a museum, take a roadtrip to a cool concert, or maybe even go home for a little. (Yes, home: You know, that place with your parents and bedroom and dog?)
3. Sleep well. Yes, college steals that precious commodity from you. But it’s important for you to get enough sleep. Being well-rested helps you cope with stress better.
4. Save up. Finances are a huge source of worry for most college students. You’ve probably experienced that sinking feeling in your stomach when you look at your bank account and realize you don’t have enough money to buy a bag of peanuts, much less a ticket home for the holidays. Budgeting is a good way to avoid such a dilemma. It sounds very strange and adult at first, but it really does help. Planning your expenses — and your savings! — can alleviate a lot of stress.
5. Seek support. Sometimes, you can’t go it on your own. Ask your school’s student services or health center about counseling. Most schools offer qualified counselors at a low fee—or for free. Take advantage of this service! Sometimes, having someone listen helps more than any amount of sleep.

Stress can be brutal, and you’re probably experiencing more of it now than ever before. That’s okay — no one said college was easy. If you treat yourself well, however, you’ll be able to minimize your stress load and enjoy school more.

How are you going to make it “over the river and through the woods” for Thanksgiving and upcoming holiday breaks? Here are a few suggestions that get you a ride home on the cheap and enable you to make academic and professional connections. I know one blogger who got a job (and a work visa and an apartment) in Amsterdam based on a friendly chat on a flight to Paris.

Word of mouth

Ask around. You may think you know all the people on campus who are from your area, but it doesn’t hurt to ask around. Other students might be going to your home town even if they aren’t from there! If they are willing to split a rental or have their own car, ask about a ride share. If their parents are picking you up, ask what academic or career advice they can offer.

Bulletin boards

You can use your school’s notice boards, local schools’ boards, Craigslist, or Facebook to find out who is going where and when. It will likely mean traveling with strangers, and this is where the “what are you majoring in?” and “what’s your internship like?” networking can happen. (You could end up listening to Def Leppard the whole way home, but just think of it as part of your education.)

Intercity buses and trains

If you are on the East Coast or in California, you may have heard about “Chinatown buses.” They are crazy cheap and typically pick you up and leave you on the sidewalk in a major city's Chinatown district or near public transportation.

Megabus, an England-based discount bus, operates in the northeast and as far west as Kansas City and as far south as Memphis.

Greyhound and other region bus services offer student rates. Remember to ask for it and any other discounts you might be eligible for.

Amtrak has a student discount program that currently offers 15% off adult rail fares.

Flying

Holiday breaks are peak season for airlines and tickets may be expensive. Check the sites that cater to college students. You are probably all too familiar with pulling all-nighters so incorporate them into your travel schedule! And, if you can doze off in the library, terminal and coach section seats should be no-brainers! (I’d take an especially impenetrable textbook with me.)

On my last flight home, the guy sitting next to me had gone to my high school and was now working in the town next to me (400 miles from home). We discussed our shared love of teaching. Had I or any of my friends been looking for a job — he’s at an awesome school — I definitely would have asked for leads!

Good practice

Even if you aren't particularly chatty, a focused search using these suggestions may get you home (cheap) for the holidays and a new work opportunity.

Geeky wrap up: “Travel” comes from the same root as the French word travaille, meaning work or labor (like the English word “travails”). You can literally link the two if you talk about career or summer plans for even a couple minutes. Bon voyage!

November is National Scholarship Month and we’re celebrating by hosting a free online chat! High school seniors and returning colleges students and their parents can get answers to how, where, and when to find free money and share insider tips and advice.

Expert Kelly Tanabe, co-author of 12 books on college admissions and paying for college, including her latest, The Ultimate Scholarship Book 2011, chats live 9–10 p.m. EST on Nov. 17 on www.Facebook.com/SallieMae.

Sign up now: http://on.fb.me/aw8Euu. Advance questions are welcome and will be answered during the chat.

Try Sallie Mae’s free online scholarship database which contains about 3 million scholarships worth more than $16 billion. It’s available at www.SallieMae.com/Scholarships and on Facebook. Users of the scholarship tool will automatically be entered for a chance to win Sallie Mae’s College Answer Scholarship, a $1,000 monthly giveaway.*

* No purchase necessary. Void where prohibited. For a complete set of sweepstake rules, please visit us online.

Over the next few months, you'll likely receive a tidal wave of brochures, postcards, emails, and letters from universities, lenders, and companies that sell college-related products and services. Some materials are worth keeping until you follow up with the organization. But if you know you're not interested, chuck the paper in the recycle bin.

You'll want to hold on to important papers related to college admission, like SAT scores, school transcripts, and copies of college applications. You may need to reference them often and replacing them, if even possible, can cost you time and frustration. Keep these papers in a safe place and organize them logically.

Saving whatever files you have on your computer lets you consolidate your records and cut and paste information as needed. Don't forget to back up your data!

Keep a financials file. Keep copies of your Form W-2 and your tax returns — you'll need much of that information for the Free Application for Federal Student Aid (FAFSA). And since federal aid is distributed on a first-come, first-served basis, you'll want all your documents ready so you can send in the FAFSA as soon as possible.

Store permanent records — such as a birth certificate, citizenship papers, high school transcripts and diploma, insurance policies, student loan promissory notes, passport, and Social Security card — in a filing cabinet, fireproof safe, or bank safe deposit box. Temporary or short-term records — such as financial aid award letters, bank statements, and store receipts — can be stored in a file or portfolio that you won't lose or accidentally throw away.

Freshman paperwork can be confusing: You have materials from the registrar, financial aid office, orientation, professors, and so on. The more organized you get today, the more efficient you'll be by May, bringing a little bit of order to the whirlwind at the end of high school.

It’s that time of year again. I can feel it creeping up slowly, ready to overpower me and drag me down. I’m not talking about a devious villain, nor am I referencing a deadly disease. No, I’m talking about something far scarier than bad guys and the plague: midterms.

We all hate them, yet every semester, professors subject us to the same thing. Fill-in-the-blank, short answer, true/false, multiple choice, the dreaded essay question — this is the stuff of our nightmares. We’re tempted to not study, fudge it, and maybe even not take the exams at all. Freshmen go insane worrying about Dr. X’s all-destroying midterm, and most seniors haven’t learned to cope, either. But fear not, gentle citizens of Collegeville! With a couple simple tricks of the academic trade, you can beat your midterms and have an enjoyable week.

1. Know your study style. Some of us are visual learners; some are audio learners. Yet others learn by hands-on practice. You should know how you study best. Flash cards don’t work for everyone. (For example, the author of this blog prefers to re-write or re-type her class notes.) Knowing your study style will help you study more effectively. Information will stick better, and you’ll do better on the exams.
2. Make study guides. Some professors provide them; others do not. Either way, you need to actually use them for them to be of any help. Even when the professor hands one out, however, it’s good to gather your friends and make your own. You can either start from scratch, or you can elaborate on the one the professor provided.
3. Ask questions. Just like study guides, questions help you prepare for an exam by making you aware of what you need to know. Ask the teacher about the format of the test, the time allotted, and what it will cover. Be in the know!
4. De-stress in other areas of your life. If you’re chill with your significant other, your best friend, and your bank account, midterms won’t seem so scary. Try to schedule commitments for another time, and minimize the more manageable worries. For example, send out your Smart Option Student Loan interest check the week before (or set up auto-debit!), so you won’t forget amidst the midterm madness.

Midterms, like everything in life, are tricky. But they don’t have to be unmanageable, insurmountable obstacles. With common sense and a few small tips, you can ace your exams and have energy left for that awesome party Friday night!