Presentation on theme: "Smart Tips For The Financially Savvy Student"— Presentation transcript:
1Smart Tips For The Financially Savvy Student PD 120
2Successful adults practice responsible money management: Live within your meansPay bills on timeSave/invest money for future goalsStay in contact with lenders/creditorsNegotiate with lenders/creditors if you experience problems paying
3Why Money Management? If you live within your means… You will usually have $ to pay bills on timeSave extra $ in case something happensInvest extra $ to make more $If something happens & you can’t pay billsWork with lenders/creditors to find a solution
4To Live Within Your Means…. Figure out what your income isFigure out what your expenses areCompare your income with your expensesIf your income is greater than your expensesSave or invest the extra moneyIf your expenses are greater than your incomeFind ways to cut your spendingConsider ways to increase your incomeBorrow only what you actually NEED
5Some 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.
6Saving on food Learn to cook Buy food and supplies in bulk Use your freezerAvoid buying sodas and snacks out of vending machinesBuy generic
7Kicking a habitQuit 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!
8Saving 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 heatCancel cable TV subscription
9Saving on expenses Walk or bike when you can Use public transportation If you have a car, charge your friends for ridesPick a cell phone or landline, not bothUse 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
10Money-saving tips Use the library Shop around for clothes Avoid clothes that require dry cleaningUse your student discountConsider cheaper entertainmentSponsor a game nightBuy less-expensive giftsAvoid credit card pushers
11People who take care of their finances wisely earn good credit ratings which make it easier to get: The kind of home you wantCredit cards/loansLower interest rates on credit cards/loansA better, higher paying jobContinued eligibility for federal financial aid
12Credit Ratings are Based On: Previous credit performanceCurrent level of indebtednessTime credit has been in useTypes of credit availablePursuit of new credit
13Graph 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 CreditThis information comes from “The Importance Of Your Credit Rating” by Investopedia Staff, (Investopedia.com)
14Boost Your Credit Rating by: Paying off your debts on timeBorrowing/using credit cards only when you absolutely need to so your balances are kept lowHaving a long credit historyRefraining from frequently applying for additional credit
15Student Loan Repayment: Plays a tremendous role in determining your credit ratingAffects your ability to enjoy life - now and in the future.
17Handling Student Loan Repayment: ResponsiblyIrresponsiblyEnhances your credit ratingSaves you moneyEnhances your chances of having an enjoyable life experienceDestroys your credit ratingCosts you more moneyCauses negative consequences for years to come
18To successfully navigate student loan repayment remember: Student loans must be paid backPayments must be made on timeMake it easy for your lender to contact you with reminders, updates, etc.There are responsible options available when you can’t make a payment!
19Sometimes people get into circumstances that make it difficult or even impossible to keep up with bill payments:Unemployment or UnderemploymentHealth ProblemsFamily IssuesNatural DisastersFloodTornadoFireHurricane
20If you are ever unable to make loan payment, remember: Your student loan lender understands this and is willing to work with you during such situationsYou 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:DefermentAlternative Payment PlanForbearanceConsolidationLoan ForgivenessLoan Discharge
21DefermentDeferment 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 DefermentEconomic Hardship DefermentUnemployment DefermentActive Military DefermentPeace Corps DefermentRehabilitation Training Deferment
22Alternative Payment Plans Standard RepaymentHigher monthly paymentShorter repayment period – up to 10 yearsLeast amount of accrued interestExtended RepaymentOver 30,000 in Direct Loan debtLonger repayment period – 25 yearsFixed or Graduated payment optionsHigher amount of accrued interestLower monthly paymentsGraduated RepaymentPayments start out low & increase every 2 yearsShorter repayment period - up to 10 years
23ForbearanceForbearance is another way of temporarily postponing or reducing your loan payments. During a forbearance period:Interest will continue to be charged as usualYou are allowed to stop making payments or make smaller paymentsYour loan status will be “current”, so there will be no negative credit reportingYou will not be getting “collection calls” about the loan
24ConsolidationIf 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.
25Consolidation Pros & Cons AdvantagesDisadvantagesJust one monthly paymentLower monthly paymentsVarious repayment optionsLocking-in current interest ratesLonger repayment periodIncreased total interestPotential loss of deferment or cancellation eligibility for some loans (especially Perkins)
26In some situations you may qualify to have all or part of your loan eliminated Loan ForgivenessLoan DischargeEmployed full time by a public service organizationFederal, State, Local or Tribal government agenciesPublic Schools/ChildcareLaw EnforcementMilitary ServicePublic Library ServicesAnd Many OthersServing in a full-time AmeriCorps or Peace Corps positionSuffering from total and permanent disabilitySchool closed before you completed your programYour loan was falsely certified because of identity theft
27Student Loans are sometimes transferred to new servicers and it can be easy to lose track of them.
28Pay attention to mail from the following servicers: Great LakesNelnetFedloanSallie Mae
29Go to http://www. nslds. ed Go to and monitor your loans on the National Student Loan Database System (NSLDS) for current info:Loan LocationServicer Contact InfoLoan StatusLoan Amounts
30Default If you fail to: Make payments - and - Request the appropriate solution in a timely fashionThen:You will default on your student loan
31Consequences of Default Wage garnishmentWithholding of income tax refundsLoss of federal financial aid eligibilityDifficulty getting a good jobProblems renting an apartmentTrouble getting credit cards/loansHigher interest rates when you do get credit cards/loansNumerous collection phone calls and lettersLoss of state occupational license
32Default Hurts You & Yours Your school has already been paid from your original loan amountYour lender will get its money from the federal governmentThe government gets money from American Taxpayers-your friends and family members who pay taxes on their hard earned dollarsDefaulting hurts your community and you will likely suffer the most with many negative consequencesDefault Hurts You & Yours
33It doesn’t have to happen! Thankfully….It doesn’t have to happen!
34Borrower Support Services Presents: “The Default Destroyers” Borrower Support Services Presents: “The Default Destroyers”! Toll Free Phone Number: x353The Default Destroyers put a high powered Borrower SupportSpecialist on the job. Armed with one of the many DazzlingDeferment options, she will work with the borrower to destroythe chances of suffering the negative consequences of default.
36Default Destroyer Jennifer Hoepner Student Loan Repayment Manager Phone: (866) x346Duties:Lead and Support the Default Destroyers as we help Herzing student loan borrowers successfully navigate repaymentCome up with creative ways to lower the likelihood of default across Herzing University Campuses
37Default Destroyer Chue Vang Borrower Support Specialist Phone: (866) x224Duties:Assist Herzing student loan borrowers successfully navigate repaymentContact and support borrowers as they experience difficulties with respect to repayment
38Default Destroyer Marshall J Draper Borrower Support Specialist Phone: (866) x363Duties:Assist Herzing student loan borrowers successfully navigate repaymentContact and support borrowers as they experience difficulties with respect to repayment
39Default Destroyer Erin Dowe Borrower Support Specialist Phone: (866) x362Duties:Assist Herzing student loan borrowers successfully navigate repaymentContact and support borrowers as they experience difficulties with respect to repayment