The Ins and Outs of Budgeting

Developing in-school and out-of-school budgets are important when determining how much you should borrow and whether you'll be able to afford that level of debt once you graduate. Your budgets should be as detailed and accurate as possible.

Developing Your Personal Budget

Worksheets or spreadsheets can be helpful in developing your personal budget. They help you easily identify your resources and expenses at a glance. You can find sample worksheets in books on financial planning. Use Access Group's interactive online in-school and out-of-school calculators to help you calculate your budget.

When you are ready to begin developing your budget, consider the following:

In-School Budget

Identify your (non-loan) financial resources

First you must identify the financial resources you have available. Your financial resources may include any of the following:

• Income (yours or spouse's)
• Savings
• Contributions and/or gifts (from parents or relatives)
• Non-loan financial aid (scholarships, grants, work-study, tuition waivers, etc.)

Be sure not to include any loans you've been offered since these are not your funds, they are borrowed.

Identify your expenses

A very conservative approach is recommended in evaluating your financial needs while attending graduate school, especially if you are relying on loans as a primary source of financial aid. Be as thrifty as possible.

Direct education expenses

Direct education expenses may include:

• Tuition
• Fees
• Books, supplies, and other related expenses

Living expenses

The following is a sample list of items that you may include when calculating your living expenses:

• Mortgage, rent, or room & board
• Utilities
• Food
• Transportation
• Insurance
• Clothing
• Household goods
• Dependent care
• Recreation/entertainment
• Interview expenses
• Other expenses (e.g., subscription, gifts, haircuts, personal expenses, etc.)

Note: You may wish to customize this list to more accurately reflect your personal expenses.

Projecting Your Out-of-School Budget

Your out-of-school budget will include most of the same components as your in-school budget, without the education expenses. You likely will have new expenses related to your job, as well as the added expense of your student loan payments.

To calculate your total student loan debt, multiply the loan amount you expect to borrow annually by the number of years in school. Remember to include the interest that will accrue while you're in school and that will be capitalized prior to repayment. This capitalized interest will increase the total amount you'll have to repay. For help on projecting your total debt and estimating your monthly payments, use our online loan repayment calculator.

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