<p>I'm going to need to open a bank account for myself, before my 18th birthday. My dad will be making payments to this account and is allowing me to "manage it myself, and do what you want with it". Of course I can't really do whatever I please with the money. It (all) needs to go towards my tuition. Not only that, I need a bank account for my work-study job, and any other jobs I may take up over the summer, as well as during the school year. </p>
<p>The question for you parents is two-fold: </p>
<p>1.) I'm undecided about which Bank to open up with. My family has been with Bank A<a href="We'll%20call%20it">/i</a> in my state for quite a long time. My last name is known to a particular branch here that I could open up with, and I would be able to give my parents (they are divorced) some amount of access to my accounts easily if I open up with them. However I'm moving across the country, and the nearest branch to me is in a city rather than the town I will be in. I would be able to make trips to this branch, but *Bank B has an atm on campus and a branch in town. The college-checking account programs look quite similar, and the ease of access is quite tempting. I believe both banks are fairly reputable, but I don't know which is smarter to open with- the one that has dealt with my family in my home state for quite some time or the one that I won't have to travel to get to? </p>
<p>For that matter, should I open with both banks? (I will not under any circumstances be opening a credit card) One for my spending cash (laundry money, toiletries, needed clothes, books, etc) and one for money to pay on my loans? I figured I'd ask parents because you'll know things my fellow incoming freshman might not. :]</p>
<p>2.) This is one I need to approach with my parents, although mostly my father. He has agreed to cosign my loans, but looking at the recent, and alarming posts on student debt, I was wondering if any parents could recommend great loan companies they've had a good experience with? (Should I try to take loans from whichever bank I choose?) My dad is very much expecting me to know what company to take out loans from, and I must admit I am weary of picking a company at random. I think my Dad took out loans from Sallie Mae, but I don't know how much loans have changed since he went through college.</p>
<p>Can any parent speak from experience of both their loans and their children's loans about what types of loan givers to look for/avoid? I looked at my College's site to see if they gave out loans, (and they do) but they're only for students who don't qualify for Federal loans.</p>
<p>I have opened co-accounts for each of my kids at a local bank in our state as well as the credit union on their CA campus. It has worked well for us. Even tho the checking accounts are in both of our names for both accounts in HI & CA, it is basically their account & I’m just named so I can add (or withdraw), and can make inquiries & help iron out any problems that may develop, particularly if they are unavailable (on travel, etc.) I have a separate account that is linked to their accoutns as well, so I could quickly transfer money if needed.</p>
<p>Sorry, don’t know anything about loans, other than please read the cautionary tale in this thread about the physician who owes $555,000 for loans she took out to go to med school & won’t finish paying off until she’s 70! It cites the article in the Wall Street Journal. Unfortunately, there are MANY in similar straits, so I’d STRONGLY advise you to attend an inexpensive school so your debt load will stay as low as possible, especially when getting basic requirements satisfied; you can always transfer to dream school to get your degree & pay less for a shorter time.</p>
<p>My two kids both opened accounts at banks that were convenient to their colleges – ATMs on or very near campus. Neither bank is one where I have ever had an account. I can, though, with just the account numbers make deposits into those accounts at branches here in town where I live. I am not named on my son’s account, but I can still go in and make deposits to his account when he needs to buy books, for example.</p>
<p>I think it’s more important to have an account at a bank that is going to be convenient for you at college.</p>
<p>I actually think it’s more important for you to have an account with your parents. If you have an account with your parents, they could easily transfer money into your acct. The fund would be available to you right away. If you were to tell me that your acct would be just for spending money, I would have said it didn’t matter where your acct is because worse comes to worse you and your parents could have PayPal accts and send each other money that way. But if you will need to receive big check (from your parents for tuition) and pay for tuition, it’s best from the same bank, otherwise out of state checks could take days (weeks) to clear. As far as your paycheck from school it could be easily direct deposited into your out of state checking acct. You could get a debit/credit (one card) for your checking acct (from out of state), and use that for most of your purchases, even for coffee or other small purchases. Once a month you could go to your bank’s ATM machine to take cash out, which shouldn’t be that much because you could use your card for purchases, if you don’t want to pay a fee.</p>
<p>Both of my kids have accts at my banks, and it makes my life a lot easier. As an example, yesterday was a Chinese New Year. She wasn’t home to receive her red envelope. I just logged into my bank acct and transferred over some money to wish her Happy New Year. If she needed some unexpected money for emergency, just a phone call I could have money available for her in minutes. No worry of sending a check, waiting for the check to clear.</p>
<p>I am a VERY STRONG believer of not having a credit card without a real job. There are many parents who would advocate that because of building credit history. I think it’s rubbish. You will get credit when you have ability to pay. there is a thread now where a student said he has 10k credit bill. By only using your debit/credit card to pay for things, you will only spend what you have.</p>
<p>I agree with oldfort! S opened his checkng account on his own at a bank that was convenient for him at school. It was a pain for me because in order for funds to be available to him the next day, I had to deposit cash. No real help in an emergency! D has had a bank account with debit card at our bank since she was 13 years old. It works wonderfully for all of us. I can transfer money to her that is available instantly. She has a savings account that is attached to this account also, so she can transfer from there if she needs access to that money. I can’t help on the loan issue, but buyer beware!</p>
<p>what 'rent said is most important. My S first opened an acct at a bank that didn’t have any branches back east. He did have credit card under my name, so books, flights, etc could be purchased on that. What he earned on campus job went into his acct.</p>
<p>when S moved, he closed college acct and opened with same bak i use. I can transfer $ online, which makes life easy.</p>
<p>This may not be OP’s case, but if parents are premier customers at their bank, their kids’ accts could usually enjoy the same privileges. My older daughter doesn’t have to pay a lot of fees other people do. When she studied abroad she was able to use her bank card without any FX fees, and used ATMs for free.</p>
<p>He has agreed to cosign my loans, but looking at the recent, and alarming posts on student debt, I was wondering if any parents could recommend great loan companies they’ve had a good experience with?</p>
<p>How much are you considering borrowing?</p>
<p>Since you’re mentioning the need for co-signers, that suggests that you’re borrowing more than Stafford loans (unless you’re an int’l). </p>
<p>The problem with co-signed loans for education purposes is that either payment gets deferred until after graduation (accumulating a lot of interest and growing the balance) or payments begin immediately while you’re still in school. </p>
<p>How much will you borrow for the 4 years of undergrad?</p>
<p>What is your future career and how much do you think you’ll be earning your first few years out of college?</p>
<p>Do you have a less expensive option to go to school (at least for the first 2 years of college)?</p>
<p>My son opened up an account near our house but at a separate bank, and I would give him a cash, check or send him funds electronically for his allowance. Then when he went to college he opened up a separate account at the bank with a branch at the college.</p>
<p>I let him know that he was responsible, and he’s never need an emergency bail out, so this has worked out just fine so far (He’s a second semester freshman)</p>
<p>Each of my kids opened an account at a bank that had branches (full-fledged branches, not just ATMs) on their campuses and also in our home town. For my son, this happened to be a bank where I also have an account, but that fact was never relevant. For my daughter, it happens to be a bank where neither my husband nor I do business (although, very conveniently, it happens to have a branch a block from where I work, which has made it easier for me to make deposits into her account when necessary).</p>
<p>I suggest that you find out what banks have branches on your future campus or within a few blocks off campus. Then, see if any of those banks also have branches in your home town.</p>
<p>One more point: You may find yourself dealing with a local or regional bank. And some day, when you graduate, you may move out of the region. This can pose problems. My son, who had an account with a local Maryland bank, decided that he wanted to keep the account temporarily when he moved to California for graduate school so that he could use his debit card during the period before he opened a new account in a California bank. This was a mistake. It turned out to be incredibly difficult and time-consuming for him to close the Maryland account from California (and it required the services of a notary public, who are few and far between in California). He would have been better off changing his account to a national bank that had a branch near his new campus and one within driving distance of our home (such as Bank of America or Wachovia) before he left for California, so that he wouldn’t have this problem.</p>
<p>Ironically, about six months after my son had so much trouble closing his Maryland account, the local bank was bought out by Capital One, which had branches in his California city. We didn’t know it, but if he had waited six months, he could have closed that old account easily.</p>
<p>Consider opening an account at a credit union rather than a bank - they usually have lower fees and better rates and are often easier to deal with.</p>
<p>Ah, don’t worry Oldfort. I won’t get a credit card. They’re simply too much. My friend (who recently turned 18 and has her own job at the moment) insisted her having one that she could pay off meant she could build her credit, but my Mom had plenty of credit card horror stories of her own. And I’m more inclined to listen to my mother than my friend. As it is, there is absolutely no reason I would <em>need</em> a credit card. </p>
<p>I’ve already been accepted to my college of choice ED. I will be taking out $20,000 in private loans, but I’ll be able to pay off $12,000 of it every year. (More if I can convince my Dad that less debt would be great, but that’s all up to him, unfortunately.) Until I can present what sort of loans would be best, it will be very difficult to convince my dad that since he has the money, he should probably wait on buying a new car/a home/whatever he wants because it might be cheaper in the long run to just pay it off now. If my dad does decide he wants another car, I will be able to sell his old one, so my first year’s worth of debt should go down either way. I don’t know what my future career is, so those questions are rather moot. </p>
<p>Ideally, I would want loans that waited until after graduation, but that I could pay off when I have the money on hand, since I recieve funds on a monthly basis, rather than in a lump sum that colleges want. (I assume that’s possible, but correct me if I’m wrong. )</p>
<p>If it helps any, this is my colleges FAQ on banks:</p>
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<p>As for this:</p>
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<p>That makes sense, although my worry is that a trip from New London CT to New Haven CT will become a hassle if I have to make it every month. That’s why I was considering opening two accounts- one for ‘big’ purchases/money/parental ease of access and one for when I need to simply and easily take out spending cash.</p>
<p>@ucsd<em>ucla</em>dad: What’s the differences? Both of my potential banks in question appear to have college checking programs…</p>
<p>Full disclosure: the Family Bank would be Chase and I already have an ‘allowance’ account with USAA. (But that’s incidental.)</p>
<p>I’ve already been accepted to my college of choice ED. I will be taking out $20,000 in private loans, but I’ll be able to pay off $12,000 of it every year. (More if I can convince my Dad that less debt would be great, but that’s all up to him, unfortunately.)</p>
<p>I’m confused…</p>
<p>Are you saying that you’ll be taking out the Stafford Loans ( $5500, $6500, $7500, $7500) during your college years…AND…you’ll be borrowing an additional $20k per year?</p>
<p>And…how will you be paying back $12k per year?</p>
<p>Even if you were able to pay back $12k per year (very difficult while also having some pocket money expenses), that would mean that you’d graduate with… </p>
<p>$8k + $8k + $8k + $8k + $27k Stafford = $59k in debt (actually, probably more since college costs rise each year, and it’s unlikely that you’ll be able to pay off $12k every year (or is your dad paying the $12k each year?))</p>
<p>What is your likely career? How much do you think you’ll be earning during the years after graduation?</p>
<p>If you borrow $60k, your monthly payments (for private and Staffords) will likely be over $700 per month for 10 long years. Yikes!</p>
<p>Yurtle - ATM fee is only $3 at most. Ability for your parents to transfer money into your acct instantaneously would be priceless someday. In my personal experience, I like to have one checking/savings acct, one brokerage, one Visa, one AmEx. It’s easier for me to keep track of how much I am spending. You could also sign up for online payment through your checking acct. It’s usually free. It’ll save you postage, hassle of mailing, and keep track of of your payments (no need to keep your cancelled checks for record keeping).</p>
<p>Okay, it looks like I am mistaken about stafford loans. I do have federal loans, it’s just the private ones I’m worried about at the moment. </p>
<p>The amount I have to pay (that lovely EFC thing) would be about 20-21k. My dad is (as it has been explained to me) obligated to pay me $12k yearly (Divorce settlment) while I am in school (ie 1k a month starting from the month of my 18th birthday.) I need to take out loans for the tuition amount, but can (at the moment or until I convince my father otherwise) pay off 12k every year. Again, My dad may end up replacing his car this year, and I’ll be able to sell the old one off when he gives it to me, which should help</p>
<p>This isn’t a case of “school I can’t afford” sadly, it’s a case of “I can afford it, it just relies on the complex workings of divorced parents” so I was coming here to ask about private loans, in order to present my case better. O_o; As far as I know, the price of my school isn’t likely to rise on me personally, and the FinAid department assured the prices I see this year should be the same I see the following year, assuming no major financial issues occur on my end. </p>
<p>Pocket money will be up to me and my mother. I’ll work over the summer, as well as having workstudy, and she’ll be continuing my current allowance- which will be suitable for say, toothpaste and shampoo. Luckily enough, tuition covers room and board, as well as a myriad of other things, so books/toiletries will be my biggest expenses. </p>
<p>edit: You’re probably right oldfort. I should make an appointment with the bank sooner rather than later. :)</p>
<p>Yurtle - Credit Unions don’t usually charge the fees for checking, fees for ATMs (and they usually allow fee-free ATM use at any credit union’s ATM if they belong to the network), fees for this, fees for that, that banks tend to. They also usually pay you interest on money you have sitting in your checking account and sometimes have better rates when it comes to CDs, auto loans, other loans, etc. and sometimes are easier to deal with for credit cards. They usually have other services like car buying services, etc.
Credit union accounts are federally insured just like bank accounts are in the event the CU fails. </p>
<p>Banks sometimes have some of the above but it’s common and perhaps the norm at credit unions. The best way to understand it is to use a couple of examples - for example, compare a BofA or Chase (or whatever) bank account (checking, savings) with a particular credit union in your area or on-campus. You can see all this online.</p>
<p>The ability for parents to easily transfer money to your account can be important too (if your parents are willing to - haha) but you might want to see if they presently belong to a credit union and use that rather than the bank or you might want to join your campus one and just figure out how to do the transfers - it’s not that hard to do. My main point was that if you’re starting out considering where to establish your ‘banking’ you might want to use a credit union rather than an actual bank.</p>
<p>If you already have an account with USAA why not use that? You can withdraw money at no charge from any ATM (up to some amount per month - 6?). You can do everything you need to with it on line and if your parents have a USAA account it’s easy for them to transfer money. We have joint USAA accounts with both our kids - we just deposit whatever we want directly in it.</p>
<p>Our college junior has a credit card from USAA and pays the balance in full every month. It’s not that hard to use a credit card responsibly. I’ve never used them for money I didn’t have, only so I didn’t have to carry around wads of cash.</p>
<p>No…you can’t. Regular ATM fees apply. :S I’ve always had to pay the $3 fee to withdraw cash from any ATM with my USAA card. When I originally got it as a gift from my parents, the reason they liked it was because no matter the balance on my card, I would be able to pay for gas. (They always let gas charges go through, and the debit run up in emergencies will be paid off later) But since I don’t drive… xD; I could use it, but it doesn’t look like a regular debit card, and doesn’t act like a regular debit card when withdrawing from the ATM and there are no branches at all…in case I need to talk to someone in person for whatever reason. </p>
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<p>I’m just not going to have a credit card right now. My parents really don’t want me to have one, and I can respect that. My mom originally had a card in college that she used for books that she needed for college (“just this once”) and didn’t pay it off in full right away, and when she married my dad, he helped pay it off, but then her limit jumped from $500 to $1300… which then became the downpayment for a car…and so on. They ended up cutting up the extra cards once they had paid off their debts.</p>
<p>It can be quite tempting to just put it on the card, and I would rather not end up like the other thread in the Parents board…with 10k owed on a Credit Card. I’m sure your D is quite responsible, and I could probably be just as responsible…I just think taking away the option entirely for the time being means I’m less likely to mess up badly.</p>
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