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This week on the Civil War Graduation Countdown, we’re sharing how we paid for our education. 

Susie — Oregon State Univ. 

Paying for college is approached differently by just about everyone. Do you take out loans? Do your parents? Do you seek out scholarships? What exactly is this FAFSA thing people talk about? Or can you afford to simply pay for school outright?

I was lucky enough to have parents that were willing to take out loans and foot the out-of-state tuition bill for me. I am, of course, eternally grateful. Heading into the world without student loan debt will be a reprieve from everything else that will pile up as I become a “real” adult.

I also received a small scholarship from OSU each year, and I applied to the FAFSA program yearly. The aid from FAFSA helped a ton. My parents also had special college funds for my brother and I that they must have started a while back; we used it to pay for my last year of school and to get a shiny new computer for me to take to New York.

My story isn’t exactly riveting, I’ve been fortunate to have a pretty smooth ride. Still, it’s important to know that no matter what kind of financial situation you have - there are programs and people who can help. For example, if you are looking to attend school out of state like me and live on the West Coast, check out the Western Undergraduate Exchange (WUE) Program, which could hook you up with a reduced tuition rate.

Jens – Univ. of Oregon  

College isn’t cheap – the majority of students spend $9,000 per year to earn their four-year degree.

So here’s how I avoided making the sour face with my college funding finances. As a graduating high school senior I applied for and received the Collins-McDonald Trust Fund Scholarship, which paid between $1,600 and $2,000 per term. To qualify for this scholarship you have to complete all your high school education in Lake County, Oregon. Since this probably isn’t an option for most of you, check out collegeboard.com and scholarships.com for information on free college money.

I also applied for, and received, financial aid from the government through the FAFSA program, which Susie mentioned above. Finally, I came up a few dollars short this year, so I took out a subsidized loan through the University of Oregon.

Also, all through college I worked at a local lumberyard, and they went above and beyond in wages and perks. Thanks. You know who you are.

Lastly, you might have noticed that I work here at brass as a paid intern; it’s a pretty sweet gig. 

Check back with us next week for our final entry in the countdown, we’ll talk about the future and how we’re facing it head on. 

– Susie and Jens

Note: this is the second entry in a two-part series on real estate. Check out the first post to catch up.

When my parents bought their home in Hawaii in the 70s, they put most of everything they had into the deal. The time was right and they went for it. The result was a beautiful two-story home nestled in a small valley named for its swirling winds.

Over the past 30 years or so, the house has been a constant. My parents twice opened a home equity line of credit, a loan that has a limit based on a percentage of the total value of your home, minus the balance still owed on the mortgage. They tapped it once to buy a new car, then again several years ago to make some renovations.

The house is likely my parents’ largest investment (other than me; kids are expensive!) and their largest single asset — its value has appreciated ten-fold over time. Traditionally speaking, the home has usually been the greatest asset for many Americans. But as a whole, the concept of someone’s home being their monetary bedrock is starting to shift.

In early March, it was reported that for the first time since 1945, home equity rates averaged below 50 percent. So what does this mean? In a nutshell it means that on average, American homeowners owe more for their homes than they own.

Traditionally, a home has been an asset. But with this big housing downturn, we’re starting to get stuck with depreciated money pits instead. Home equity lines of credit can’t work well if you don’t own a decent stake in your home. With their backs against the wall between resetting mortgage rates and plummeting home values (which were overinflated to begin with), some folks are choosing to walk away. This is when a beleaguered homeowner literally hands over the house keys to the creditor, says “I’m through,” and walks out. Obviously, this is not what creditors or the Federal Reserve want. Cutting your losses by quitting a mortgage wrecks your credit, but for some people, they’d rather get hit by foreclosure rather than bankruptcy, which stays on your credit report for 10 years. Since some owners entered the market paying little to no money down, they’re attempting to cut their losses and increase their rebound time by walking away. The idea is to wait a few years, try and heal their credit and then buy a new home - for a lower price. There’s even a new industry that has developed from people choosing to walk away from mortgages, which was recently covered by ABC News. If you’re in a mortgage bind, check out what the FTC has to say about your financing options before throwing in the towel.

In March, Fed Chairman Ben Bernanke urged lenders to go beyond scaling back interest rates and start cutting the size of mortgages, a move that would hopefully persuade homeowners not to walk away, according to a report in the LA Times.

If you’re thinking about buying a home down the road like I am, it’s good to keep at least a casual eye on all this news. Right now, the housing climate is cutting both ways - not only forcing some owners into bankruptcy, but swinging back and bopping lenders on the nose too as folks walk away from their houses. The concept of home equity is shifting, especially for our generation. It may take a while before the homes we buy become a resource rather than a liability.

– Peter

Have you had your brass today? A recent survey from the Federal Reserve suggests that students don’t only need eight hours of shuteye and a big bowl of Wheaties everyday:

The survey of high school seniors reported that on average they only answered 48.3% of questions correct about personal finance and economics. This data is a drop from the 2006 survey when students answered 52.4% of questions correctly. In addition, college students’ financial literacy came out slightly higher, answering 62% of questions correctly.

Source: time.com

College is often about learning plain old life lessons in addition to learning in the classroom. This week on The Civil War Graduation Countdown, we’re talking about things we wish we hadn’t learned the hard way.

Susie - Oregon State Univ.

Apartment hunting is a difficult task, and it proved more difficult at the end of my freshman year. Having lived on campus until then, my roommate and I had no sense of the town or what we were getting into. We found what seemed like a nice apartment for a low price and reserved it – we could even store our stuff over summer! When we moved in the fall, it all seemed to come together.

But after a little while things started to go wrong. Our shower didn’t provide enough hot water. Our toilet started to back up every other week, and the management company was being difficult about fixing it. FYI, there are laws in place to protect your rights as a tenant; here’s a list of tenant rights by state.

We didn’t figure out the heaters until a month into the icy weather (okay… that was our fault). The location of the apartment was super close to a grocery store, but a considerable walk from campus, and far away from our other friends’ places.

Living in an apartment for the first time hit me in a way that freshman year and leaving home never did. My mom jokes how that fall she talked to me on the phone more than she’d talked to me my entire life. At the end of the term I decided to move back to the dorms and my roommate got herself a single bedroom downtown. Luckily we had a month-to-month lease. Without that, we would’ve likely been stuck where we were.

It was a tough lesson, but sometimes learning it the hard way makes you that much more prepared for the future. It could be a small thing, like knowing to test the shower and sinks, or the bigger things I’m now facing, like covering all my bases when finding an apartment in Brooklyn. My friend and I know we’ll be leasing for at least a year and a safe neighborhood, legit landlord and no roaches or bed bugs are a must! Whatever it is, some things we learn the hard way keep us more alert for the future.

Jens - Univ. of Oregon

Lesson #1: It’s not always the best idea to move in with three other guys, especially if one of them is a good friend. The dynamics of four college guys living in one house together just never worked out for me. Before I knew it, one guy who had been a good high school friend and another roommate were moving out over Christmas Break. The other roommate and I were stuck looking for a place to live in the middle of winter (the rainy season in the Northwest) in a college town where housing is in high demand.

The remaining roommate and I didn’t know each other that well, but we ended up living together for two years (until I got married) and became really good friends. But my high school buddy and I haven’t spent more than 10 hours hanging out since we lived together. Sometimes what you think will be a good living situation just doesn’t work out. Choose your roommates and living situations wisely.

Lesson #2: My freshman year I thought it would be a great idea to put off doing my ecology term project until the day before it was due. Don’t misunderstand, I had gone to my chosen ecological test site (the edge of an abandoned field with a few trees along a road) and counted the types and number of plant and animal species. I had also taken some pictures and done some basic experiments throughout the term.

But, I didn’t do any of the writing, graphing or formatting until the day and night before it was due. I worked for 17 straight hours (from 2 p.m. the day before until 8 a.m. class time). Not fun. On a brighter note, I got a high enough grade on the project that I didn’t have to take the final to still get an “A”. Regardless, procrastination is not a good thing.

I’ve found in college (and in life) it’s a lot easier to just stay on top of big projects. If you want to put something off, make sure it’s small enough to handle without causing a mental breakdown.

Coming next week: Paying for college.

–Susie and Jens

Note: this is the first entry in a two-part series on real estate. This first entry deals with housing depreciation in today’s current housing market. Check back on Friday for Part 2, where I will talk about home equity.

Forget about the flashy sports coupe, my greatest material goal is home ownership. Cliché, I know. Obviously, the picture here is not of me, but in a few years I hope to stand in front of my new home and scream jubilantly just like these two - my neighbors will be thrilled.

Anyway, graduating from school and starting a career does weird things to your outlook on life. You start thinking in terms of years rather than semesters and realize, “Hey, in time I think I could actually afford a home.”

I’m an idealist and an optimist. But it’s both a strength and a weakness someone could exploit to push me into a risky real estate deal. Take a good look at me, because I could be the kind of person predatory lenders would go after. Predatory lenders don’t go after our account numbers like identity thieves; rather they prey on our optimism. In turn, we’ve been lured into acquiring mortgages we ultimately can’t handle.

A recent article in The New York Times says many economists blame “overly loose credit and abusive loans” as a large source for the current housing downturn, one that’s had a far reaching impact on the entire U.S. economy and beyond. Basically, aggressive lending to sub-prime borrowers (note the definition of sub-prime, as in not ideal), coupled with low interest rates, fueled a housing boom which greatly inflated market prices. I’m no expert on real estate, but it sure sounds like building a shopping mall over a sinkhole to me. But for many (homeowners and lenders alike) I guess the dream was just too tempting. Here’s a link to a no-holds-barred Slate report on MSN, with links to other helpful articles about foreclosure. Here is a link to an article by the U.S. Department of Housing and Urban Development on how to sniff out and avoid predatory loans.

The bubble has popped, and today many young home owners have been left to pick up the slack. Many borrowers financed with nontraditional loans like zero-down mortgages have run into big trouble. Folks were lured in by low initial teaser rates, but then found themselves drowning as their mortgages reset and payments mushroomed. This has led to scores of foreclosures and a market flooded with excess homes.

A flooded and troubled market means falling home prices. This has translated into a fierce case of depreciation for many. Home prices are down 15 percent on average from their high in July 2006. The California housing market has been especially hard hit, with home values falling 26 percent from just a year ago. According to the Slate article, a house in San Bernadino purchased for $310,000 in 2005 would now be offered for $199,900.

I want a house pretty badly, but I know I’m in no shape money-wise right now to handle it. On the other hand, if you do have the money, now would seem to be a great time to buy since prices are low. After seeing what’s happening, I think I’ll do things the old fashioned way — pay my dues, save up for a solid 20 percent down payment, and sign on with a fixed-rate mortgage. This is my dream, and it’s one I’m willing to wait for.

College is as much about finding yourself as it is about finding a career path. This week on The Civil War Graduation Countdown, we’re talking about the paths we’ve taken while in college.

Jens - Univ. of Oregon

When I first started college, I really didn’t have any idea of what I wanted to do. I started at a community college and my early idea was to pursue an English degree. After a few terms of English Literature I was cured – there’s only so much fun you can have analyzing Chaucer in a five-page argumentative paper.

So I drifted. But here’s one thing I learned - start meeting with an adviser as early as possible. It wasn’t until the beginning of my sophomore year that I realized I should be pursuing an Associate of Arts Oregon Transfer Degree. This degree allowed me to fulfill all my general studies requirements for an Oregon University System school. If I had known this sooner, I could have saved myself some time and money.

Several journalism courses were offered for the Associate of Arts degree. I had taken a journalism class in high school and really enjoyed it, so I decided to enroll. Before I knew it, I was working as a contributing editor with The Commuter.

From there it was on to the University of Oregon School of Journalism and Communication. Once there, I took the infamous Information Gathering class (one of four required pre-major core classes) with its 100-page research project. Most students call it “Info Hell,” but I can’t link to any blogs about it here due to graphic (cursing) content. Let’s just say it’s a pretty intense experience: my buddy’s girlfriend broke up with him because he was up at all hours researching for the class.

Well, I got through it and entered the Magazine sequence. I’ve had some great professors in the magazine program. They’ve taken time out of their lives to help make me a better journalist and to give me contacts in the career field. Also, one class steered me here to my internship at brass.

Who knows where I’m headed from here, but I do know my college experience has given me the tools to pursue my dreams as a journalist. Without my adviser I’d probably still be trying to figure out if I met all my graduation requirements.

Susie — Oregon State Univ.

I’ve said before that I’ve been incredibly lucky in my college experience at OSU. I’ve always had some idea of what I wanted to do with my life, but the classes and chance meetings on campus over my years helped form where I’m heading now.

Growing up, my Mom got me involved in sewing and designing clothes and it stuck with me until college. As much as I originally resisted choosing OSU (my mom went there so I was being difficult), after visiting the campus and reviewing the apparel design program, I knew I belonged.

I loved the classes that first year – I got to color for a final! – but by my sophomore year I realized that while I loved drawing and sewing as a hobby, it was not the career path for me. I revisited my interest in journalism and switched my major to merchandising management. Next, I planned to become a reporter at The Daily Barometer and eventually get an internship at a fashion magazine.

After changing my major, I was a chicken for weeks about stepping in the door at the newspaper to apply. But one day, I was coming out of the craft center (which is across from the newsroom) with a friend. Someone my friend knew was at the door and my friend mentioned I was interested - I was pulled inside and never turned back.

Three months into my reporting experience I became the Assistant News Editor and basically began to live and breathe newspapering. I overcame my shyness - having to cold-call people and conduct interviews at random. There were certainly ups and downs, but staying committed helped me grow, and I credit it some to my success with Glamour.

I made the leap to New York for three months and had a unique summer that solidified my desire to move there after graduation. There really is nothing like running around the city in 100-degree weather carrying thousand-dollar dresses. Of course, I made some great friends too - one of whom I’ll share an apartment with in July.

I discovered this internship at brass thanks to the college paper. Now I feel like I have the experience and confidence to take the plunge. I’ve had a fantastic four years in Oregon, and I’m taking every bit of it with me.

Coming next week: Things we wish we didn’t learn the hard way.

– Susie and Jens

You read in this issue’s Take Two column all about William Wrigley Jr. Company (NYSE: WWY). You might also have read that Wrigley has agreed to be purchased by Mars, Inc. with a little help from Warren Buffett. This announcement came after we went to press (Murphy’s Law, anyone?), so we asked the writers of the Take Two article what they thought about this new development.

Charles Worthman
Mars, Inc. recently agreed to buy William Wrigley Jr. Co. for approximately $23 billion, which equates to 4.1x revenue and 18.4x EBITDA. As per the Take Two column this May, this could be considered expensive. Yet it might not be expensive should Mars be able to reduce expenses via synergies.

Second, the merger with Mars will help head off competitive threats by giving the company more power to negotiate with vendors and by using Mars distribution channels and other resources.

Third, while growth is still an issue it becomes less so in a private company that might be content to simply milk the produce line without dealing with shareholders.

Finally, while brand loyalty is not as high in gums, Wrigley still could face competitive threats but will have more scale and more fire power to fight these threats especially on pricing.

Chris Lahiji
Whoa, what a turn of events.

Mars and Wrigley are teaming up to make the largest confection factory in the world, and one of the world’s greatest investors, Warren Buffet is financing a piece of it.

This is a great move because as the developing world is getting wealthier and wealthier, hygiene becomes important, and the cheapest way of improving your hygiene is by having great breath.

Seriously though, gum is anti-recessionary and so is candy.

Good move.

Thanks guys!

-Jennie

The federal government started its check distribution of the much-touted economic stimulus bill this month. In the end, the U.S. Treasury will send checks to about 130 million taxpayers by July.

Individuals who filed taxes in April and make less than $75,000 annually should be receiving a check for $600; couples should receive $1,200; and parents will get an additional $300 for each child.

Direct deposit payments are well under way, but payment via paper checks will take a bit longer. Want to know when your check will be sent? The stimulus payment schedule is arranged according to the last two digits of your Social Security Number. You can check out the schedule HERE.

In the end, with Americans spending their checks on all sorts of things across the economic board, the government hopes to start the U.S. economy on a swing toward recovery.

So what are you planning on using your stimulus check for? I asked brass staffers what they’re planning to spend their checks on, and the answers were pretty diverse.

• Katie Kacvinsky plans to do her part in “boosting” the economy by traveling around the Pacific Northwest and to “kick back, drink wine and love life.”
• Jennie Bartlemay also says she wants to use the money to travel. She’ll be heading to Las Vegas this summer with friends.
• Brady Sahnow says he will put his children’s portions into their investment fund. For himself he might splurge on an Xbox 360 game and save the rest to pay for groceries.
• Joel Ranck is thinking about stashing his check in a rainy day fund, or throw it into the pot for an eventual down payment on a house.
• Zack Marker is likely to spend it on high-quality groceries. Having miraculously recovered from his ketchup only diet, he gave a great link to a site listing what other people are spending their stimulus money on. Check it out HERE.
• Sarah Higginbotham says she will be taking a big bite out of her student loan debt.
• As for myself, I will invest in my photography business. I recently upgraded to a Nikon D300, and my stimulus check will help make up part of the cost.

At brass, we’re doing our part in all kinds of ways and having fun while we’re at it. Well, some of us at least. Happy spending.

– Peter

As promised in the May issue of brass|MAGAZINE, here’s the entertaining follow-up to the brass Team Member profile on Special Projects guy, Zack Marker. It’s also the second installation of our brass Vlog and Randy is back in action. For those of you that have yet to check out Zack’s full profile on page 1 of our latest issue, I’ll catch you up:

brass staffer Zack, 23, is a lover of good food who is known for posting pics of his culinary creations on Facebook. When he’s not on camera in the Video Department or sneaking treats from the break room, he runs to keep his eating habit from becoming a weight problem. This past weekend he ran his third marathon. Here’s a sneak peek at his rigorous training regime:

Life in the working world is just around the corner for us. This week on The Civil War Graduation Countdown we’re sharing our stories from the job hunt.

Susie — Oregon State Univ.

On June 15th, I’ll have officially graduated from college. A day after that, I’m packing up my life and driving home to Southern California with my parents. A month later I’ll be on a plane to New York City to start a new adventure. I know most of my friends are worrying about what they’re doing post-college and I’m just as panicked, even if I do have an idea of where I’m headed.

Once in New York, I aim to have job prospects or interviews set up. I know, I know — I’m moving across the country without a job locked in. Being far away from NYC right now inhibits me from jumping on jobs that become available and are instantly filled. Unlike my engineer brother, no one is actively recruiting me or paying to fly me in for interviews – I essentially have to be persistent (but not annoying) to get myself into a nice little entry-level job.

It may sound tough, but I’m determined to be positive. Here’s my weapons chest:
• I had a great boss at Glamour last summer and I’ve kept in touch with her after leaving — she offered to help me out if she could when I arrive after graduation. Maintaining work relationships can mean a helpful contact or reference later in your career path – you never know!
• I met with someone at Marie Claire who has already helped me a ton. She gave me the idea to start sending letters to Human Resource departments of the major publishing companies in May, and following up once a month until I arrive so that they know I’m serious and have a name to remember, which will hopefully keep me on file for any available jobs.
• There’s also my ultimate web source – Ed2010. The website sends newsletters with “whispers” about job openings and internships at magazines, mostly in New York.
• And hey, I can’t forget my awesome editorial experience at brass! I’ll bring solid skills that will amp up my resume and hopefully help open some doors.

Clearly, I don’t have a whole lot of concrete answers for my future, but I know where I’ll be and what I’ll be working toward. I’m counting on my determination and positivity to keep me going until I have that perfect job!

Jens — Univ. of Oregon

Just like the headline says: I have 38 days until this whole college thing is over. That means now’s the time to get looking for a job. In all honesty, it’s been a bit harder than you might think. It’s not always easy to find time to look for a journalism job while taking a full course load and working two jobs – as an intern at brass, and at a local lumber store. As our Editorial Content Director Sarah Higginbotham said, “A teacher once told me that my job after school was to look for a job.”

I’ve been checking the Career Services page for the journalism school at U of O. Also I’ve found a big part of my job search, while still in school, is learning skills that will help me once I graduate. I started out as a writer (and am still pursuing that as a magazine major), but I’ve taken photojournalism courses, and am currently working as a photographer for the School of Journalism and Communication’s capstone newspaper project, Mosaic. I’ve also learned multimedia skills. So far I’ve produced some photo slideshows, set to music, with Soundslides and am in the process of learning Final Cut Pro in the hopes of adding video to my repertoire. Hopefully these skills will help me get a job in a journalism field quickly switching to multimedia.

Another helpful thing I’ve learned is the power of networking. Every time I meet someone in the journalism school, I try to add them as a friend on Facebook. Having a network of friends who all graduated from the journalism school could prove invaluable in the future. I’ve also learned to not underestimate the power of my professors. Many of my profs worked in the journalism field for years before moving into academia – they still have valuable contacts. Building a relationship with them can help me get my foot in the door.

Wish me luck.

Be sure to check in with us next week as we get even closer to the big day.

– Susie and Jens