CASH COURSE FALL 2017
Welcome/Introduction WORKSHOP AGENDA Financial Capability Spending Plans Student Loans Credit Management Identity Protection
FINANCIAL CAPABILITY
Financial Capability Financial Knowledge Financial Access Consumer Protection
Financial Capability Security Investment Stability
Financial Capability Creating Behaviors Knowledge Action Habit
Knowing vs. Doing Financial Capability
SPENDING PLAN
Spending Plan SP vs. The B-Word Strategy Fit Matters
Spending Plan 4) Evaluate & Adjust 3) Track Expenses Four Basic Steps 1) Set Financial Goals 2) Identify Income
Spending Plan S=Specific M=Measureable A=Attainable R=Relevant T=Time Bound
Spending Plan Income Salary and Wages Scholarships and Loans Gifts
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
Spending Plan Wants Something you would like to have. Needs Something you need to have
Spending Plan
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
Spending Plan Habit Bargains Impulse Retail Therapy
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.
STUDENT LOANS
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
Student Loans Cost of Attendance: First Year The following figures are 2017-18 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
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
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.
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
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
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: http://financialaid.usc.edu/loans/private-financing.html
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
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
Student Loans Federal Student Aid Ombudsman Works with federal student loan borrowers to resolve loan disputes and problems. (877) 557-2575 ombudsman.ed.gov Consumer Financial Protection Bureau Works with non-federal student loan borrowers to resolve their disputes and problems. (855) 411-2372 cfpb.gov
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 2017-2018 Document Library. Once the Financial Aid Office processes your loan and notifies the Department of Education, we will e-mail confirmation to your USC address. 2. Sign your Master Promissory Note (MPN) online at www.studentloans.gov. 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 www.studentloans.gov.
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.
Student Loans
Student Loans
Financial Aid Summary and Task ( FAST) Student Loans
Student Loans
Student Loans
Student Loans Ask USC From the main Financial Aid webpage, select Ask USC button and log in to your Financial Aid account.
Student Loans
CREDIT MANAGEMENT
Credit Management Banking Basics Bank for you ATM Fees Overdraft Protection
Credit Management Credit Cards They are not Minimum Balance Pay on time
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.
Credit Management Type of credit used New credit 10% 10% Payment History 35% 15% 30% Length of credit history Utilization rate (amount owed)
IDENTITY PROTECTION
Identity Protection 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
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 888-5 OPTOUT (888-567-8688) optoutprescreen.com
Credit Management Watch what information you share on Social Networks Keep your PIN private Use Good P@s$W0Rds! Lock your phone with password.
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 www.ftc.gov/idtheft
Online Entrance Loan Counseling
SALTMoney.Org
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)
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.