CASH COURSE FALL 2017

Transcription

1 CASH COURSE FALL 2017

2 Welcome/Introduction WORKSHOP AGENDA Financial Capability Spending Plans Student Loans Credit Management Identity Protection

3 FINANCIAL CAPABILITY

4 Financial Capability Financial Knowledge Financial Access Consumer Protection

5 Financial Capability Security Investment Stability

6 Financial Capability Creating Behaviors Knowledge Action Habit

7 Knowing vs. Doing Financial Capability

8 SPENDING PLAN

9 Spending Plan SP vs. The B-Word Strategy Fit Matters

10 Spending Plan 4) Evaluate & Adjust 3) Track Expenses Four Basic Steps 1) Set Financial Goals 2) Identify Income

11 Spending Plan S=Specific M=Measureable A=Attainable R=Relevant T=Time Bound

12 Spending Plan Income Salary and Wages Scholarships and Loans Gifts

13 Spending Plan Fixed Housing Health Related Child or Dependent Care Flexible Meals Transportation repair and maintenance Utilities Discretionary Dining out with friends Gifts for events (Birthdays or Weddings) Expensive brand name items

14 Spending Plan Wants Something you would like to have. Needs Something you need to have

15 Spending Plan

16 Spending Plan Small amounts add up over time It may not look like much in the short term But it adds up over time $5 coffee x 5 weekdays $25 per week $5,200 for coffee over 4 years $25 per week x 52 weeks $1,300 per year

17 Spending Plan Habit Bargains Impulse Retail Therapy

18 Spending Plan Habitual Spending Spending Fast Stores and Friends Shopping is not a social activity Impulse Control Lists Cash vs. Credit or Debit Don t Shop when tired, stressed hungry or depressed.

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20 STUDENT LOANS

21 Student Loans Prior Student Loan Debt studentaid.ed.gov In School Deferment Aggregate Max $138,500 for graduate or professional students Private Loans Credit Report

22 Student Loans Cost of Attendance: First Year The following figures are estimates for a student enrolled in their first year of Undergraduate school. Type of Cost Estimated Year Budget Tuition $53,448 Mandatory Fees $875 Room and Board $14,886 Personal Expenses $1,324 Transportation $540 Books/Supplies $1,200 COA for Fall & Spring $72,273

23 Student Loans COA takes into account both direct costs (paid directly to USC) and indirect costs (paid to affiliates or third-party vendors). Direct costs Tuition and Fees Indirect costs + Books and Supplies + Room and Board + Personal Expenses = Cost of Attendance

24 Student Loans Loan Eligibility Cost of Attendance - Merit-Based Aid Received = Loan Eligibility The greater your COA, the more you may become eligible to borrow. Students are not required to borrow the full loan amounts for which they are eligible. Borrow only what you need to cover: A portion of tuition & fees; OR Full cost of tuition & fees; OR Full cost of tuition & fees plus living costs. * * Aid borrowed in excess of your tuition and fees will be refunded to you to allow you to purchase of books and supplies, and cover other expenses. Signing up for erefund will expedite this.

25 Student Loans Don t borrow money just because you are eligible for it Borrow what you need, not what you want Decline loans that exceed your needs In case of an unexpected shortfall, previously declined money can be obtained again

26 Student Loans Perkins Loan Fixed Interest Rate: 5% No Interest Accrual No Origination fees Subsidized & Unsubsidized Federal Direct Stafford Loan Variable-Fixed Interest Rate: 4.45% (Graduate and Professional 6%) No interest accrual on Subsidized Stafford while in school and grace period. Fees: 1.069% for Fall & 1.066% for Spring Federal Direct Grad PLUS Loans Variable-Fixed Interest Rate: 7% Interest accrues from date of disbursement Fees: 4.276% for Fall & 4.264% for Spring

27 Student Loans Private Loans May be borrowed to cover up to your remaining semester Cost of Attendance. Cannot be forgiven as part of Public Service Loan Forgiveness. We recommend that you borrow only the minimum amount you need. Interest Rate: Variable A co-borrower with exceptional credit will help you obtain the best interest rate. Important Information PRIOR TO APPLYING FOR PRIVATE FINANCING: Students should exhaust all Federal Title IV assistance available, including the Federal Direct Unsubsidized Loan and the Federal Graduate PLUS Loan before considering a private student loan program. The repayment terms of federal loan programs may be more favorable than the terms of private loan programs. Federal student loans are required by law to provide a range of flexible repayment options, including but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness benefits, which other student loans are not required to provide. Federal Direct Loans are available to students regardless of income. More information:

28 Student Loans Always access your Subsidized loans first before Unsubsidized if available. Interest Accrues on Unsubsidized Loans and Grad PLUS Loans from the Date of Disbursement. Consider Making Interest Only Payments or Borrowing Less

29 Student Loans Capitalization Principal + Interest = Larger Principal Dependent undergrad borrowing maximum Unsubsidized Federal Direct Stafford over 4 years of full-time attendance. Interest rates varied

30 Student Loans Federal Student Aid Ombudsman Works with federal student loan borrowers to resolve loan disputes and problems. (877) ombudsman.ed.gov Consumer Financial Protection Bureau Works with non-federal student loan borrowers to resolve their disputes and problems. (855) cfpb.gov

31 Student Loans Direct Loan Application 1. Complete the Federal Direct Stafford Loan Request Form: Log in to My Financial Aid & Documents and access the form via the Document Library. Once the Financial Aid Office processes your loan and notifies the Department of Education, we will confirmation to your USC address. 2. Sign your Master Promissory Note (MPN) online at You will be able to sign your MPN after the Financial Aid Office processes your loan. (Step 1 needs to be completed before the MPN can be signed.) 3. Complete entrance loan counseling online at

32 Student Loans Submitting Documents and Appeals From the main Financial Aid webpage, select My Financial Aid & Documents button and log in to your Financial Aid account.

33 Student Loans

34 Student Loans

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36 Financial Aid Summary and Task ( FAST) Student Loans

37 Student Loans

38 Student Loans

39 Student Loans Ask USC From the main Financial Aid webpage, select Ask USC button and log in to your Financial Aid account.

40 Student Loans

41 CREDIT MANAGEMENT

42 Credit Management Banking Basics Bank for you ATM Fees Overdraft Protection

43 Credit Management Credit Cards They are not Minimum Balance Pay on time

44 FICO Score Credit Management A credit score is a number that summarizes your credit risk, based on a snapshot of your credit report at a particular point in time. A credit score helps lenders evaluate your credit report and estimate your credit risk.

45 Credit Management Type of credit used New credit 10% 10% Payment History 35% 15% 30% Length of credit history Utilization rate (amount owed)

46 IDENTITY PROTECTION

47 Identity Protection Entitled to an annual free copy of your Credit Report (877) Annualcreditreport.com fee for service free but advertisements info, articles, calculators

48 Credit Management Read All of Your Mail Guard Your Mail and Trash from Theft Deposit Outgoing Mail at the Post Office Place Mail on Hold when on Vacation Shred, Shred, Shred Charge Receipts Credit Applications or Offers Insurance Forms Checks and Bank Statements Expired Credit or Debit Cards OPTOUT ( ) optoutprescreen.com

49 Credit Management Watch what information you share on Social Networks Keep your PIN private Use Good Lock your phone with password.

50 Credit Management If you suspect ID theft: Place a Fraud Alert with the 3 major credit reporting agencies Close Accounts (use spreadsheet/software) File a Police Report Report to FTC

51 Online Entrance Loan Counseling

52 SALTMoney.Org

53 Conclusion Contact Information USC Financial Aid Office USC Financial Aid Office University of Southern California Attention: Aid Coordination 700 Childs Way, JHH 325 Los Angeles, CA Lobby Hours: 9 am 5 pm PST (Monday Friday) Phone Hours: 9am 5 pm (Monday Friday)

54 Although every effort is made to provide the most accurate and up-to-date information, the content of this publication is subject to change due to alterations in federal, state, university or lender policy or procedure. The USC Financial Aid Office cannot be held liable for the consequences of such changes in policy or procedure. The most current information can be found by contacting your lender or loan service agency.