It’s that day of the semester that every student anxiously awaits with a level of excitement probably second only to that of graduation day– it’s refund day. Some students splurge, others save.
After a student’s tuition and all fees have been paid off, the remaining money is transferred to the student in one of two ways. Most students have the money sent directly to their TAMIU Higher One card, which makes the remaining financial aid available to the student the same day refunds are processed and dispersed.
A second option is to have the refund sent to a personal account. This option transfers the money to a bank account within 2-3 days of refunds being processed.
Then amount of a student’s refund varies depending upon how much financial aid the student receives in the form of Pell grants, scholarships, and loans.
“I used to get about $5,000 every semester… and I would usually just give most of it to my mom to put away in a savings account,” mentions Nancy Garcia, a master’s psychology student.
“One of my friends invested her left over loan money and was able to pay off her loans the day she graduated,” mentions Alfie G., a senior Bridge reporter.
Some of the items students have bought with their refunds now and in the past are:
1) Clothes
2) Electronics (phones, laptops, gaming systems)
3) Cars
4) Food
5) Alcohol
Some of these more expensive items are one time essentials such as a laptop for doing work, and a car in order to get to school and back.
“I splurged my refund only once, and that was when I bought a car. For me, it was something essential,” states Lucero De La Fuente, a junior communication disorders major.
However, some students spend more money eating at expensive restaurants too often and buying the latest must-have electronics.
It is common for students to treat themselves to expensive restaurant meals or snacks after receiving their refund. These purchases may seem like small expenses, but they may eventually add up to hundreds of dollars.
According to a resource by Westwood College, 40% of a student’s budget for the 2008-2009 school year was comprised of discretionary spending. That means that almost half of a student’s budget was spent on entertainment (gaming systems, televisions, cell phones), apparel (clothing), and travel.
This splurging can be a drain on a student’s finances, especially if the student has no job to provide him/her with a steady income.
There have been accounts of students spending their entire refund in one day on items such as purses, clothing, musical instruments, televisions, and cell phones.
“I also know someone who used all of [her refund] at Joe Brand an hour after it was in her account,” comments Alfie G.
Many students do not understand the financial repercussions that come from borrowing money while in college without having a financial plan for after graduation.
The average debt for graduating college students is steadily on the rise, with students owing an average of more than $23,000 in loans according to figures from the U.S. Department of Education.
To learn some tips on how to best manage a budget, visit some of the following websites:
The Bridge invites students to share their own refund experiences (splurges and saves) on the Bridge Diary: Refund Confessions.
(Josefina Gutierrez may be reached at kittystomp@dusty.tamiu.edu.)