Smart Tips For The Financially Savvy Student

Smart Tips For The Financially Savvy Student

Successful Adults Practice Responsible Money Management:Live within your means Pay bills on time Save/invest money for future goalsStay in contact with lenders/creditorsNegotiate with lenders/creditors if you experience problems paying

To Live Within Your MeansFigure 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

Some Tips To Stretch Your Money, From Cash Course:Dont 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.Saving On Food

Learn to cookBuy food and supplies in bulkUse your freezerAvoid buying sodas and snacks out of vending machinesBuy genericOrder vegetarianKicking A Habit

Quit or reduce your smoking. At about $5 a pack, smoking is expensivenot to mention the toll it takes on your lungs. http://www.smokefree.gov/Drink less, especially alcohol. The average college student spends $900 a year on alcohol.Make your own coffee at home. At $3 or $4 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!

Saving On Rent

Add another roommateNegotiate 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 subscriptionSaving On Expenses

Walk or bike when you canUse public transportationIf you have a car, charge your buddies 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 SearchMoney-Saving Tips

Use the libraryShop around for clothesAvoid clothes that require dry cleaningUse your student discountConsider cheaper entertainmentSponsor a game nightBuy less-expensive giftsAvoid credit card pushers

People 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/loans A better, higher paying jobContinued eligibility for federal financial aid

Credit Ratings are Based On:Previous credit performanceCurrent level of indebtednessTime credit has been in useTypes of credit availablePursuit of new credit

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: The following information comes from The Importance Of Your Credit Rating by Investopedia Staff, (Investopedia.com)

35% Previous Credit Performance30% Current Level of Indebtedness15% Time Credit has Been in Use15% Types of Credit Available5% Pursuit of New CreditBoost 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

Student Loan Repayment:Plays a tremendous role in determining your credit rating Affects your ability to enjoy life - now and in the future.How Will You Handle Your Loans?Handling Student Loan Repayment:ResponsiblyIrresponsiblyEnhances your credit rating Saves you moneyEnhances your chances of having an enjoyable life experienceDestroys your credit ratingCosts you more moneyCauses negative consequences for years to come

To 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 TO REQUEST WHEN YOU CANT MAKE A PAYMENT

Sometimes People Get Into Circumstances That Make It Difficult Or Even Impossible To Keep Up With Bill Payments:Unemployment or UnderemploymentHealth ProblemsFamily IssuesNatural DisastersFloodTornadoFireHurricane

If You Are Ever Unable To Make A 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:DefermentAlternative Payment PlanForbearanceConsolidationLoan ForgivenessLoan Discharge

DefermentDeferment 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 DefermentAlternative Payment PlansStandard 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 yearsAlternative Payment Plans ContinuedIncome Contingent Repayment & Income-Based Repayment PlansDebt amount, income and family size used to calculate paymentLower payments if experiencing financial hardshipRepayment period may exceed 10 yearsAmount not repaid after specified period of time may be discharged

ForbearanceForbearance 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 payments Your loan status will be current, so there will be no negative credit reporting You will not be getting collection calls about the loanConsolidationIf 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.Consolidation Pros & ConsAdvantagesDisadvantagesJust 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)In some situations you may qualify to have all or part of your loan eliminatedLoan ForgivenessLoan DischargeEmployed full time by a public service organization Federal, 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 theftStudent Loans are sometimes transferred to new servicers and it can be easy to lose track of them.Pay Attention To Mail From The Following Servicers:Great LakesNelnetFedloanSallie MaeGo To http://www.nslds.ed.gov/nslds_SA/And Monitor Your Loans On The National Student Loan Database System (NSLDS) For Current Info:Loan LocationServicer Contact InfoLoan StatusLoan Amounts

DefaultIf you fail to: Make paymentsand Request the appropriate solution in a timely fashion Then:You will default on your student loan32Consequences Of DefaultWage garnishmentWithholding of income tax refundsLoss of federal financial aid eligibilityDifficulty getting a good jobProblems renting an apartmentTrouble getting credit cards/loans Higher interest rates when you do get credit cards/loansNumerous collection phone calls and lettersLoss of state occupational license

Default Hurts You & YoursThankfully.It doesnt have to happen!Borrower Support Services Presents The Default Destroyers!Toll Free Phone Number: 1-866-508-0748 x353

The 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.36

Default Destroyer Jennifer HoepnerStudent Loan Repayment ManagerPhone: (866) 508-0748 x346

Email: jhoepner@herzing.edu

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

Default Destroyer Chue VangBorrower Support SpecialistPhone: (866) 508-0748 x224

Email: cvang@herzing.edu

Duties: Assist Herzing student loan borrowers successfully navigate repayment

Contact and support borrowers as they experience difficulties with respect to repayment

Default Destroyer Marshall J DraperBorrower Support Specialist

Phone: (866) 508-0748 x363

Email: mdraper@herzing.edu

Duties:Assist Herzing student loan borrowers successfully navigate repayment

Contact and support borrowers as they experience difficulties with respect to repayment

Default Destroyer Erin DoweBorrower Support SpecialistPhone: (866) 508-0748 x362

Email: edowe@herzing.edu

Duties:Assist Herzing student loan borrowers successfully navigate repayment

Contact and support borrowers as they experience difficulties with respect to repayment