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The Hidden Cost of Freebies

By U.S. News & World Report

You’ve probably heard that there’s no such thing as a free lunch. Well, that logic applies in the shopping world, too. Even when something is advertised as free, there’s a good chance that it requires you to pay something, whether it’s with your time, personal information or even money. Here are just a few of the hidden costs that can lurk beneath so-called freebies:

Space: Nothing teaches you the precious value of real estate like a small apartment. Just think of how much you pay for a storage unit. Every square foot of your space is worth something and when you bring new items into that space, you need to evaluate if trading that space for storage or display is worth it, even if the item itself is free.

Most promotional items and free swag is junk and clutter anyway. Don’t put your blinders on to assessing utility and value just because you didn’t have to pay for the item. You’re still going to need to store it.

Time: Free items often have a high time cost. Your friend might be giving away free furniture, but you still have to take the time to go pick it up. The bakery might be giving away free cookies, but how long will it take you to get there and back or wait in line? Could you get more out of spending that time working, working out, cooking dinner or simply relaxing at home with your family or a good book?

Money: Even free items carry monetary costs. Transportation is the most common. If you have to go out of your way to pick up your freebie, there’s not only a time cost involved but a gas or public transit cost too. If the item is particularly large, it may require some additional moving costs like a truck or soliciting the help of a mover.

Some items can even affect your monthly budget. It’s great to score a free Kindle or smartphone as a gift or from a friend who’s upgrading, but if you need to make purchases or increase your spending to actually use that item (like a data plan or e-book purchases), then you need to evaluate if that kind of added expense is realistic for your budget.

In some cases, free trials and subscriptions also wind up costing you money. Most require credit cards to activate so they can charge you on the next billing cycle. Even vigilant consumers can forget to cancel, and when they try to, they have to spend time interacting with customer service.

Effort: “Stuff,” whether it’s free or not, generally requires maintenance, cleaning, upkeep and repairs. There’s also effort involving in donating or selling the item if and when the novelty wears off.

Personal Information: Giving away your email or mailing address might not seem like much to pay until you start sifting through piles of spam on a daily basis. Is that free 4 ounce sample of lotion really worth it?

Health: Consumable freebies are great because they don’t take up any space. You get a free granola bar, you eat it, and it’s gone. Unfortunately, most food freebies come in the form of unhealthy treats and fast food. How many times have you been enticed into something by free pizza or beer?

Treat freebies like anything else you’d spend money on. The fact is, you’re going to be trading something for it. If it’s not money, then perhaps it’s your time, your space or your health. Make a fair and honest assessment before deciding whether or not “free” is really worth it.

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The Hidden Cost of Freebies originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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