Maximizing financial aid

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  • For many years, I was a financial journalist who wrote for such national media outlets as Forbes, The Wall Street Journal, and BusinessWeek. I thought that I had covered just about every financial topic imaginable until I realized that I had overlooked one subject.

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  • Neoclassical economics and several management theories assume that the corporation’s objective is profit maximization subject to capacity constraints. The central focus is shareholders as the ultimate residual claimant, providing the necessary financial capital for the firm’s operations (Jensen and Meckling, 1976; Zingales, 2000). However, there is substantial variation in how corporations actually compete and pursue profit maximization.

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  • While loans may be available to students with good credit histories, the question of how much to borrow is often asked. The maxim “Live like a student now or you will live like a student later” is a good one to remember. Consult an individual school’s Student Expense Budget for estimates of living expenses, and budget accordingly. Track your current spending habits and compare them to the budget at schools of your choice. Share housing; learn to cook. Food expenses are often budget busters. Bring a lunch rather than buying one.

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