Back-to-school season always seems to sneak up on us. One minute you’re convincing yourself there’s still plenty of summer left, and the next you’re trying to remember where you packed your laptop charger and wondering why textbooks cost as much as a small vacation.
Between tuition, supplies, groceries, rent and the occasional coffee that becomes a daily habit, college can get expensive quickly. The good news is that taking a little time to prepare financially before the semester starts can save you a lot of stress later.
Being financially prepared doesn’t necessarily mean having all the money up front. Instead, it’s about having a realistic plan for covering expenses throughout the year. That includes not only tuition, housing and meal plans but also books, supplies and everyday necessities that can add up fast.
The first place to start is your financial aid offer, which is now available to students on Workday. It isn’t the most exciting thing you’ll read this week. But understanding what you’re being offered is one of the smartest financial decisions you can make.
“Students should understand the difference between borrowing and gift aid or employment,” said Chad Olson, director of the Office of Student Financial Aid. “Grants, scholarships, savings and earnings are resources you don’t have to repay. Loans can help make college possible, but students should review their expenses to determine if they need the full amount being offered.”
Olson encourages students to review their aid offers carefully and think about what they actually need. Just because you’re offered a certain amount in loans doesn’t mean you have to accept all of it. If your expenses are covered with scholarships, grants, savings or help from family, borrowing less now could mean paying back less later.
Olson said one of the biggest mistakes students make is accepting the full loan amount without first determining whether they actually need it. He encourages students to think beyond a single semester and consider how borrowing can add up over the years.
When loans are necessary, it’s important to understand the difference between your options. “We encourage students to borrow conservatively and focus on their actual education needs rather than the maximum amount available,” Olson said. “If the student is unable to make payments, the co-signer is responsible for repaying the debt.”
If a private loan is necessary, a qualified co-signer may help a student secure approval or receive a lower interest rate. However, Olson emphasized that the co-signers are taking on a significant responsibility.
Once your financial aid is sorted out, it’s time for something that isn’t glamorous but incredibly helpful—creating a budget. Before you roll your eyes, hear me out.
A budget doesn’t mean giving up every coffee run or never ordering pizza during finals week. It helps you know where your money is going before it disappears. Try listing your monthly expenses, including rent, groceries and those subscriptions you forgot you were paying for. You might be surprised by how quickly little purchases add up.
Olson recommends planning for expenses beyond tuition, including books, transportation and personal costs. The Iowa State Expense Estimator can also help students estimate how much they’ll need throughout the academic year before deciding how much to borrow.
“Every dollar borrowed today becomes a monthly payment after graduation,” Olson said. “Borrowing decisions accumulate over multiple years.”
Another thing students sometimes overlook is using the resources already available on campus. Iowa State’s Office of Student Financial Success offers free financial education, including help with budgeting, managing debt, understanding your credit and making smart decisions about student loans. You don’t have to figure everything out on your own, and asking questions now can save you from headaches later.
Financial situations can also change during the school year. “Students should contact the Office of Student Financial Aid as soon as possible,” Olsen said.
Changes such as job loss, reduced family income or unexpected medical expenses may qualify students for a review of their financial aid. Olson said it’s important to reach out early because the review process can take time.
Starting a new semester comes with enough challenges. You have classes to juggle, assignments to finish and somehow convince yourself that 8 a.m. lectures aren’t that early. Taking a little time now to get your finances in order won’t solve every problem, but it can make the semester feel much more manageable.
At the end of the day, being financially prepared isn’t about having the biggest bank account. It’s about understanding your options and setting yourself up for success both in the classroom and beyond. Your future self will probably thank you, even if your current self is still trying to figure out how you spent $50 at Target when you “only needed one thing.”
