(U-WIRE) CHICO, Calif. - Ask not what you can do when in college, but what you can have when in college.

Almost anything is possible when in college. In order for college students to reap the benefits offered to them, they must first be knowledgeable and educated about the opportunities. Students can get discounts and save a lot of money if they know how to cut corners.

Money management and having the university help students financially while enrolled is not a campus secret, but rather a university promise.

"Since the day I walked into this university I have been on financial aid," said Jennifer Spencer, a Chico State University senior.

Financial aid provides students with the ability to support themselves while in college, depending on their individual circumstances. Most federal financial aid is need-based. The most common types of aid are grants, loans and work-study, according to the Financial Aid for Student Guide.

Spencer was given financial aid because her mother was a single parent when she first enrolled at Chico State. She is given grants, loans in her name and loans in her mother's name.

Spencer would be eligible for work-study if she found a job on campus. According to the Financial Aid for Student Guide, work-study lets you earn money while enrolled in school to help pay for education expenses.

Chico State University financial aid director Dan Reed is experienced in student money matters.

"Some students have their F.A. money disbursed throughout the semester, and for some I think it's helpful. Others would prefer to have it all up front and to budget for themselves," he said. "Some folks think if we spread out disbursements, we save students from themselves. Others think we should be teaching them to fish instead of feeding them."

Being forced to manage their own money through financial aid encourages students to budget their money responsibly. Unfortunately, students still spend money without realizing the consequences and end up broke before the semester is over.

Reed said there are a couple of reasons why this might happen, and it happens for either foreseeable or not-so-foreseeable reasons. Unforeseeable reasons include car accidents without insurance, deaths in the family and travel expenses, or sudden parent or student income reduction. Foreseeable ones include buying a '57 Chevy to cruise to Big Al's, addiction to anything expensive (drugs, significant others, sushi), and paying $1250 in rent.

"Budgeting is never so important as when you've got nothing," Reed said.

Credit card debt is problematic, and the financial aid department encourages students to get rid of high-interest debt, consolidate existing debts and seek debt-management help.

"In all cases, we try to determine the 'real' need for more, try to figure out where the money went, and provide more, if possible, based on exceptional circumstances," Reed said. "If students have failed to budget properly and it's entirely due to discretionary spending, then there is no more eligibility for loans, grants or work-study. We then refer them to family and friends or the bank for money."

Spencer said, "My mom has records of me asking for $1,400 a month. Every week I'd call and ask for a couple hundred dollars."

Calling mom for money can't always be the answer, because at one point everyone must grow up and keep record of their own money.

Students have the advantage of getting their own student checking account, said Bryan Kross, a Wells Fargo Bank teller and Chico State University marketing major. This is different from a regular account, since three months out of the year the monthly fee is waived. Included in the package is a free credit card and free online banking.

In the event of being overdrawn from an account, a student can be penalized with fees that can add up quickly, leaving them particularly vulnerable to debt.

"Each overdraft fee is $18, which is added on top of the overdraft amount," Kross said. "But by coming in the bank and talking with a teller, people may be able to reverse four out of five overdraft fees."

Kross said, "We do as much as possible to explain fees and penalties in order to protect the student so it doesn't happen again, or explain what to do to limit the problems."

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