1. Smart Tips For The Financially Savvy Student
PD 120

2. Successful adults practice responsible money management:
Live within your means
Pay bills on time
Save/invest money for future goals
Stay in contact with lenders/creditors
Negotiate with lenders/creditors if you experience problems paying

3. Why Money Management? If you live within your means…
You will usually have $ to pay bills on time
Save extra $ in case something happens
Invest extra $ to make more $
If something happens & you can’t pay bills
Work with lenders/creditors to find a solution

4. To Live Within Your Means….
Figure out what your income is
Figure out what your expenses are
Compare your income with your expenses
If your income is greater than your expenses
Save or invest the extra money
If your expenses are greater than your income
Find ways to cut your spending
Consider ways to increase your income
Borrow only what you actually NEED

5. Some tips to stretch your money, from Cash Course:
Don’t let student loans and credit card debt weigh you down after graduation. The less you borrow during your college years, the less you have to pay back! Here are 25 quick tips to help you stretch your money and leave college with manageable debt.

6. Saving on food Learn to cook Buy food and supplies in bulk
Use your freezer
Avoid buying sodas and snacks out of vending machines
Buy generic

7. Kicking a habit
Quit or reduce your smoking. At about $7 a pack, smoking is expensive—not to mention the toll it takes on your lungs.
Drink less, especially alcohol. The average college student spends $900 a year on alcohol.
Make your own coffee at home. At $4 or $5 for a latte, specialty coffee drinks are pricey. Try to cut back to once a week, then twice a month. You'll be surprised how fast it adds up: at $4 a latte, you're spending $28 a week. If you cut back to once a week, you're saving $24 a week or $1,248 a year!

8. Saving on rent Add another roommate
Negotiate rent increases If you've been a good tenant, paying your rent on time, and taking care of the property, ask for a break when rent increases occur. Many property owners will consider dropping an increase in exchange for knowing they have a good tenant who will be back next year.
Turn down the heat
Cancel cable TV subscription

9. Saving on expenses Walk or bike when you can Use public transportation
If you have a car, charge your friends for rides
Pick a cell phone or landline, not both
Use the Web for comparison shopping. If you're buying something large or small, you can do quick price checks using Web sites such as Google Product Search

10. Money-saving tips Use the library Shop around for clothes
Avoid clothes that require dry cleaning
Use your student discount
Consider cheaper entertainment
Sponsor a game night
Buy less-expensive gifts
Avoid credit card pushers

11. People who take care of their finances wisely earn good credit ratings which make it easier to get:
The kind of home you want
Credit cards/loans
Lower interest rates on credit cards/loans
A better, higher paying job
Continued eligibility for federal financial aid

12. Credit Ratings are Based On:
Previous credit performance
Current level of indebtedness
Time credit has been in use
Types of credit available
Pursuit of new credit

13. Graph of Credit Score Factors
Although all these factors are included in credit score calculations, they are not given equal weighting. The following graph shows how the weighting breaks down:
35% Previous Credit Performance 30% Current Level of Indebtedness 15% Time Credit has Been in Use 15% Types of Credit Available 5% Pursuit of New Credit
This information comes from “The Importance Of Your Credit Rating” by Investopedia Staff, (Investopedia.com)

14. Boost Your Credit Rating by:
Paying off your debts on time
Borrowing/using credit cards only when you absolutely need to so your balances are kept low
Having a long credit history
Refraining from frequently applying for additional credit

15. Student Loan Repayment:
Plays a tremendous role in determining your credit rating
Affects your ability to enjoy life - now and in the future.

16. How Will You Handle Your Loans?

17. Handling Student Loan Repayment:
Responsibly
Irresponsibly
Enhances your credit rating
Saves you money
Enhances your chances of having an enjoyable life experience
Destroys your credit rating
Costs you more money
Causes negative consequences for years to come

18. To successfully navigate student loan repayment remember:
Student loans must be paid back
Payments must be made on time
Make it easy for your lender to contact you with reminders, updates, etc.
There are responsible options available when you can’t make a payment!

19. Sometimes people get into circumstances that make it difficult or even impossible to keep up with bill payments:
Unemployment or Underemployment
Health Problems
Family Issues
Natural Disasters
Flood
Tornado
Fire
Hurricane

20. If you are ever unable to make loan payment, remember:
Your student loan lender understands this and is willing to work with you during such situations
You have the right to request the following solutions that allow you to make lower payments or even stop making payments temporarily, or in some cases, permanently:
Deferment
Alternative Payment Plan
Forbearance
Consolidation
Loan Forgiveness
Loan Discharge

21. Deferment
Deferment means “postponing” or “deferring” your loan payments until a later date. There are many types of deferments corresponding to various situations that might make it hard for a person to make loan payments:
In School Deferment
Economic Hardship Deferment
Unemployment Deferment
Active Military Deferment
Peace Corps Deferment
Rehabilitation Training Deferment

22. Alternative Payment Plans
Standard Repayment
Higher monthly payment
Shorter repayment period – up to 10 years
Least amount of accrued interest
Extended Repayment
Over 30,000 in Direct Loan debt
Longer repayment period – 25 years
Fixed or Graduated payment options
Higher amount of accrued interest
Lower monthly payments
Graduated Repayment
Payments start out low & increase every 2 years
Shorter repayment period - up to 10 years

23. Forbearance
Forbearance is another way of temporarily postponing or reducing your loan payments. During a forbearance period:
Interest will continue to be charged as usual
You are allowed to stop making payments or make smaller payments
Your loan status will be “current”, so there will be no negative credit reporting
You will not be getting “collection calls” about the loan

24. Consolidation
If you have many student loans with different servicers, payment dates and amounts, it can be hard to keep track of. Consolidation is a process in which you take out one larger loan to pay off all of your smaller loans.

25. Consolidation Pros & Cons
Advantages
Disadvantages
Just one monthly payment
Lower monthly payments
Various repayment options
Locking-in current interest rates
Longer repayment period
Increased total interest
Potential loss of deferment or cancellation eligibility for some loans (especially Perkins)

26. In some situations you may qualify to have all or part of your loan eliminated
Loan Forgiveness
Loan Discharge
Employed full time by a public service organization
Federal, State, Local or Tribal government agencies
Public Schools/Childcare
Law Enforcement
Military Service
Public Library Services
And Many Others
Serving in a full-time AmeriCorps or Peace Corps position
Suffering from total and permanent disability
School closed before you completed your program
Your loan was falsely certified because of identity theft

27. Student Loans are sometimes transferred to new servicers and it can be easy to lose track of them.

28. Pay attention to mail from the following servicers:
Great Lakes
Nelnet
Fedloan
Sallie Mae

29. Go to http://www. nslds. ed
Go to and monitor your loans on the National Student Loan Database System (NSLDS) for current info:
Loan Location
Servicer Contact Info
Loan Status
Loan Amounts

30. Default If you fail to: Make payments - and -
Request the appropriate solution in a timely fashion
Then:
You will default on your student loan

31. Consequences of Default
Wage garnishment
Withholding of income tax refunds
Loss of federal financial aid eligibility
Difficulty getting a good job
Problems renting an apartment
Trouble getting credit cards/loans
Higher interest rates when you do get credit cards/loans
Numerous collection phone calls and letters
Loss of state occupational license

32. Default Hurts You & Yours
Your school has already been paid from your original loan amount
Your lender will get its money from the federal government
The government gets money from American Taxpayers-your friends and family members who pay taxes on their hard earned dollars
Defaulting hurts your community and you will likely suffer the most with many negative consequences
Default Hurts You & Yours

33. It doesn’t have to happen!
Thankfully….
It doesn’t have to happen!

34. Borrower Support Services Presents: “The Default Destroyers”
Borrower Support Services Presents: “The Default Destroyers”! Toll Free Phone Number: x353
The Default Destroyers put a high powered Borrower Support
Specialist on the job. Armed with one of the many Dazzling
Deferment options, she will work with the borrower to destroy
the chances of suffering the negative consequences of default.

36. Default Destroyer Jennifer Hoepner Student Loan Repayment Manager
Phone: (866) x346
Duties:
Lead and Support the Default Destroyers as we help Herzing student loan borrowers successfully navigate repayment
Come up with creative ways to lower the likelihood of default across Herzing University Campuses

37. Default Destroyer Chue Vang Borrower Support Specialist
Phone: (866) x224
Duties:
Assist Herzing student loan borrowers successfully navigate repayment
Contact and support borrowers as they experience difficulties with respect to repayment

38. Default Destroyer Marshall J Draper Borrower Support Specialist
Phone: (866) x363
Duties:
Assist Herzing student loan borrowers successfully navigate repayment
Contact and support borrowers as they experience difficulties with respect to repayment

39. Default Destroyer Erin Dowe Borrower Support Specialist
Phone: (866) x362
Duties:
Assist Herzing student loan borrowers successfully navigate repayment
Contact and support borrowers as they experience difficulties with respect to repayment