<p>So far there’s been a significant (but not insurmountable) gap between offered FA and the full cost of attendance at the schools I’ve applied to. I have some money saved and will be earning more with my seasonal summer job this year. But I’m wondering . . . how much money should I keep in reserve as a cushion, “just in case”? You know–in case the car breaks down, in case the apartment gets flooded, in case the cat gets sick, etc. I don’t want to take out more loans than necessary, but I don’t want to run out of money because of an unforeseen expense either.</p>
<p>The Full COA usually has some pad in it. Does yours?</p>
<p>It’s hard to say how much pad is needed. Car repairs can range from a few hundred to a few thousand. </p>
<p>Are you an independent student? You’ll be taking your cat with you to school? Will you need a car to get to class?</p>
<p>Yes, I’m an independent student. The car will probably be coming with me. (Maybe not if I end up in NYC, since it’s not a car-friendly city and it would be too far for me to drive to visit any relatives anyway. But some of the other colleges are closer to family.) The cats are coming with me, though I expect we’ll all be frazzled by the drive (or flight)!</p>
<p>Right now I have about $5000 in savings, plus $700 reserved for annual vet bills and “cat emergencies,” but by the end of the summer I should have $9000 total (maybe more, but I’m trying to keep my estimate conservative until I know for sure). (Then too, some of it will have to go towards an apartment deposit.)</p>
<p>^^^</p>
<p>Sounds like you’ll have a reasonable cushion.</p>
<p>One common suggestion for an “Emergency Fund” is to have three to six months living expenses stashed in a ready to access form (such as a Money Market account) but not in your everyday savings/checking account. The figures you have posted look like they would fall into that range. </p>
<p>Michelle Singletary, a financial columnist for the Washington Post, recommends that you also set up a “Life Happens Account” for expected large expenses that aren’t daily expenses. This would be a place to stash money for periodic car work, vet bills, and those inevitable trips to weddings/funerals/required family events. Michelle has a chat forum every two or three weeks that can be very informative and inspiring for those of us on tight budgets. Here is a link for you: [Michelle</a> Singletary - Personal Finance Advice From Washington Post Columnist Michelle Singletary - The Color of Money](<a href=“http://www.washingtonpost.com/wp-dyn/content/linkset/2005/03/24/LI2005032400142.html]Michelle”>http://www.washingtonpost.com/wp-dyn/content/linkset/2005/03/24/LI2005032400142.html)</p>
<p>That’s very good advice, but I doubt I’ll have anywhere near 3 months padding left by the end of next year. In the summer, yes, because I’ll be working full time. But once the school year hits, it’s back to part time jobs (through Work Study, mainly) and money will be going out (for rent, utilities, books, etc) faster than it’s coming in. 
The money drains away rather quickly.</p>
<p>I’m very leery about taking on more debt than necessary for the remaining two years of college. Then again, I know it would be stupid to use up ALL my savings . . . But I don’t know how much of the $9000 total I should use. Although, since it’s for COA rather than tuition (which is covered by scholarships), I guess I could take things as they come. Is it possible to take out student loans mid-year if necessary, or only at the beginning of the school year?</p>
<p>This whole financial aid thing is stressing me out. O__O</p>
<p>Yes, you can take out student loans mid-semester if you happen to run short and need them. There is a cut-off date, I’m pretty sure, so ask the school as soon as you see that you’re running low.</p>