CASH COURSE FALL 2016
Welcome/Introduction AGENDA Higher Education as an Investment Financial Capability Cash Course : Managing your Funds: Spending Plans Identifying Income: Student Loans Banking Basics Credit Card Basics Identity Protection Adjustments To Loans Appealing to adjust Federal Direct Loans Stafford Loan application via USC Financial Aid website PLUS Loan adjustments via www.studentloans.gov or through our office
Cash Course: 101 Financial Knowledge Financial Access Consumer Protection
Cash Course: 101 Security Investment Stability
Cash Course: 101 Creating Behaviors Knowledge Action Habit
Knowing vs. Doing Cash Course: 101
Cash Course: 101 4) Evaluate & Adjust 3) Track Expenses Four Basic Steps 1) Set Financial Goals 2) Identify Income
Cash Course: 101 S=Specific M=Measureable A=Attainable R=Relevant T=Time Bound
Cash Course: 101 4) Evaluate & Adjust 3) Track Expenses Four Basic Steps 1) Set Financial Goals 2) Identify Income
Funding Your COA: 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
Funding Your COA: 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.
Funding Your COA: Loans Subsidized & Unsubsidized Federal Direct Stafford Loan (Undergraduates) Variable-Fixed Interest Rate: 3.76% No interest accrual on Subsidized Stafford while in school and grace period. Fees: 1.068% for Fall & 1.069% for Spring Unsubsidized Federal Direct Stafford Loan (Graduate and Professional) Variable-Fixed Interest Rate: 5.31% Interest accrues from date of disbursement Fees: 1.068% for Fall & 1.069% for Spring Federal Direct Graduate PLUS Loans Variable-Fixed Interest Rate: 6.31% Interest accrues from date of disbursement Fees: 4.272% for Fall & 4.276% for Spring
Funding Your COA: 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
Funding Your COA: Loans Capitalization Principal + Interest = Larger Principal Dependent undergrad borrowing maximum Unsubsidized Federal Direct Stafford over 4 years of full-time attendance. Interest rates varied
Funding Your COA: Loans Capitalization Principal + Interest = Larger Principal Graduate borrowing maximum Unsubsidized Federal Direct Stafford and Graduate PLUS over 4 years of full-time attendance. Interest rates varied
Funding Your COA: Loans Always access your Subsidized loans first before Unsubsidized. Interest Accrues on Unsubsidized Loans and Parent PLUS Loans from the Date of Disbursement. Consider Making Interest Only Payments or Borrowing Less
STUDENTAID.ED.GOV Funding Your COA: Loans
Cash Course: 101 4) Evaluate & Adjust 3) Track Expenses Four Basic Steps 1) Set Financial Goals 2) Identify Income
Cash Course: 101 Want Something you would like to have Need Something you have to have
Cash Course: 101 Shopping Releases Endorphins and Dopamine Shopper Remorse is an affect of those chemicals diminishing Stores and Friends Encourage us to Spend Shopping is not a social activity Marketers understand how the brain reacts to money Impulse Control Secret Accounts Always shop with a list Spend Cash instead of Credit or Debit Card Don t Shop when tired, stressed hungry or depressed.
Discretionary Expenses Cash Course: 101
Cash Course: 101 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
Cash Course: 101 4) Evaluate & Adjust 3) Track Expenses Four Basic Steps 1) Set Financial Goals 2) Identify Income
Cash Course: 101 Banking Basics Bank for you ATM Fees Checks and Balances
Cash Course: 101 Bank Fees Non-Bank ATM Fees Other Bank ATM Fees Overdraft Fee / NSF Returned Item Fee Overdraft Protection Fee $2 for withdrawals, transfers, balance inquiries. You may be charged by the owner of the ATM in addition to any fees charged by your bank. $35 each item. Not more than 10 items in one day. $12 per transfer if you have insufficient funds in your account and you choose to have us automatically transfer from a linked account Extended Overdrawn Balance Fee Checks Over the Counter or ATM $35 for each time that we determine that your account has been overdrawn for more than 5 consecutive days Holds on Deposit Deposit not available for 3-5 business days Out of State Checks / Large Items Deposit not available for 5-10 business days
Cash Course: 101 Credit Cards They are not Pay on time Minimum Balance
Cash Course: 101 Paying Off Your Balances Credit card payment example: 23.9% credit card $2,500 balance Minimum payment (2% of balance) Results Total cost to pay off: Total interest paid: Number of years: Minimum monthly payment 2% $75 $100 $20,255 $17,755 30+ $6,799 $4,279 17.8 $4,756 $2,256 10.8
Credit Card Fees Cash Course: 101 ANNUAL PERCENTAGE RATE(APR) for purchases 14.15% fixed (0.038767% daily periodic rate). Other APRs Balance transfer APR: Same as for purchases. Cash advance APR: 25.24% fixed (0.069151% daily periodic rate). Minimum finance charge FICO Score Default APR: 27.24% fixed (0.07096% daily periodic rate) for late payments. For each billing period that your account is subject to a finance charge, a minimum total FINANCE CHARGE of $0.50 will be imposed. Miscellaneous Fees Cash advance fee: 4% of amount of the cash advance, but not less than $10.00. Late payment fee: $27 if you haven t been late in the previous six billing cycles, or $38 if you have been late within that period. Over limit fee: $39.00 any time the account balance exceeds the credit line at any time during the billing cycle
FICO Score Cash Course: 101 A credit score is a number that summarizes your credit risk, based on a snapshot of your credit report at a particular point in time. A credit score helps lenders evaluate your credit report and estimate your credit risk.
Cash Course: 101 Type of credit used New credit 10% 10% Payment History 35% 15% 30% Length of credit history Utilization rate (amount owed)
Credit reports Cash Course: 101 Entitled to an annual free copy of your Credit Report (877) 322-8228 Annualcreditreport.com www.myfico.com fee for service www.creditkarma.com free but advertisements www.bankrate.com info, articles, calculators
Cash Course: 101 Read All of Your Mail Guard Your Mail and Trash from Theft Deposit Outgoing Mail at the Post Office Place Mail on Hold when on Vacation Shred, Shred, Shred Charge Receipts Credit Applications or Offers Insurance Forms Checks and Bank Statements Expired Credit or Debit Cards 888-5 OPTOUT (888-567-8688) optoutprescreen.com
Cash Course: 101 Watch what information you share on Social Networks Keep your PIN private Use Good P@s$W0Rds! Lock your phone with password.
Cash Course: 101 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 www.ftc.gov/idtheft
Adjustments to Loans If you borrowed more than you need and want to reduce your loan: Don t make a payment directly to the loan service agency Visit your USCFAST page and click Required Information and Forms and Document Library. Submit an Appeal to Change or Cancel a Federal Direct Stafford Loan; or, Submit an Appeal to Change or Cancel a Federal PLUS or Private Loan After USC makes the change, it will appear on your next e-bill and you can pay it via USC e-pay
Adjustments to Loans Appeal to Change or Cancel a Federal Loan From the main Financial Aid webpage, select My Financial Aid & Documents button and log in to your Financial Aid account.
Appeal to Change or Cancel a Federal Loans Adjustments to Loans
Appeal to Change or Cancel a Federal Loans Adjustments to Loans
SALTMONEY.ORG Conclusion Master Money Pay for School Repay Student Debt Find a Job
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 90089-0914 Email: fao@usc.edu Lobby Hours: 9 am 5 pm PST (Monday Friday) Phone Hours: 9am 5 pm (Monday Friday)
Questions? Conclusion
Disclaimer 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.