TABLE OF CONTENTS Spring 2016...93 Schedule of Spring 2016 Events... 94 January 2016......95 Financial Management Counseling: Lunch and Learn...96 Financial Literacy Presentation...97 Student Loans 101 Presentation...115
MCG Wellness Programs Spring 2016 Partners: Student Health Services Office of Student and Multicultural Affairs
Schedule of Spring 2016 Events Financial Management Counseling: Lunch & Learn Tuesday, January 19, 2016 Self-Defense Basics Seminar Monday, February 15, 2016 Post-exam Massage Therapy Monday, February 29, 2016 Mindfulness Lunch & Learn Monday, March 7, 2016 Sleep Hygiene Lunch & Learn Monday, March 2016 *TBD Time Management & Work Etiquette Lunch & Learn Monday, April 18, 2016 Healthy Eating with the Local Farmers Market Monday, April 2016 *TBD
J A N U A R Y B D S a D S D G S G S A S January 2016
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Doctors Need Financial Literacy, Too Your schedule is busy with school and work which does not offer much time to plan. You will not be in school forever and how you handle your finances now will follow you. Return to HCCU Presentation >
Average Debt at Graduation In 2015, the average total student loan debt at graduation, including both federal and private student loan debt, was about: $35,000 for Bachelor s degree recipients $51,000 for Master s degree recipients $71,000 for Ph.D. recipients $167,000 for law school graduates (L.L.B. or J.D.) $207,000 for medical school graduates Return to HCCU Presentation < >
Average Salary The typical doctor doesn't earn a full-time salary until 10 years after the typical college graduate starts making money. Starting Salaries will vary based on region & employer, with the southeast typically being the lowest paid region: - Resident: $55,300 - Pediatrician: $168,650 - Physician & Surgeon: $184,650 - Veterinarian: $91,250 - Other (Family & General Practitioners): $177,330 http://work.chron.com/average-starting-wages-out-medical-school-4876.html http://www.medscape.com/features/slideshow/public/residents-salary-and-debt-report#1 Return to HCCU Presentation < >
What can you do? Don t beat yourself up. Make an action / spending plan & stick to it. Recognize a need (necessary) vs. a want (can be avoided), and live within your means. Let your work and accomplishments speak for you, not your possessions. Return to HCCU Presentation < >
Your Budget and You Setting a budget? Easy enough... Following it may be harder! Return to HCCU Presentation < >
How Do I Get Started? You Will Need Your Financial Statements Paychecks (or other sources of income) Computer or pen and paper Tracking methods Mobile App for easy tracking HCCU tools Green Path Return to HCCU Presentation < >
Budget Reminders A Budget is to assist with tracking your dollars on where to go instead of wondering where they went. Remember a Budget takes time to learn, it may be hard to hit your goals right away. Don t get frustrated! Remember to write everything down Be accountable to yourself, and / or get an accountability partner! Return to HCCU Presentation < >
Keys to setting up a Budget List your Sources of Income Paychecks, Alimony, Child Support Student loan Then list your Fixed Expenses (Rent, Mortgage, Auto, Insurance) Variable Expenses: Groceries, Credit Cards, Cable, Cell Phone, Eating out, Charity, Entertainment. ( This is an area that you can cut out additional expense) Return to HCCU Presentation < >
Compare Your Expenses to your Income Ideally, Your outgoing expenses match your income. If not you will need to adjust your budget Every dollar should be assigned a place Extra money at the end of the month? Put it in Savings! The more you know about where your money comes from, how much you have to spend, and where you spend it, the easier it is to make wise spending decisions. In this way, your money works for you instead of against you. Return to HCCU Presentation < >
Your Savings is Important How much you spend is much more important than how much you earn. This is often referred to as living within your means. Pay Yourself First! Use Direct Deposit You should strive to put at least 15% of your income in Savings each month Have 6 months of living expenses saved so when an emergency happens it doesn t cause you a headache. When you get a tax return or bonus, pay off a debt or put it in savings instead of spending. Return to HCCU Presentation < >
Track Your Expenses Write down Expenditures Daily At least once a week, sit down with your budget and write down everything you have spent during that time frame and balance it against your budget. This will keep you from overspending for the month. Return to HCCU Presentation < >
Evaluate Your Budget Budgets take time. You need to keep readjusting until you find the right fit for you! Personalize your budget to your life. If your are a student, or have special hobby, add that to your budget. Your budget should grow with you and be re-evaluated periodically. Return to HCCU Presentation < >
Helpful Tips There is no bill that is ok to not pay each month. Having trouble paying? Let your creditors know. They may be able to work out a payment plan for you. Write Everything Down! You will start noticing how much buying coffee every day or eating out adds up! Use cash all the time? Switch to Debit and vice versa. It will get you out of a routine and make you think before you purchase. Revert to the Envelope System! Are you married, but keep separate accounts? You still need to determine a budget together! Groceries are a necessity, eating out is not! Neither are cable or cell phone bills! Return to HCCU Presentation < >
HCCU Resources www.hccu.coop Valuable Financial Planning and Counseling can be found on our Member Benefits Page: VALIC, GreenPath, BudgetSmart, CheckRight For Students: Googolplex for Elementary through High School students Return to HCCU Presentation < >
GreenPath FREE Financial counseling including: Personal and family budgeting Understanding your credit report and how to improve your score Money Management Debt Repayment Avoiding Bankruptcy, foreclosure and repossession Student Loan Debt If you would like additional information on this service, contact a GreenPath financial counselor toll-free at 1-877-337-3399, or online at www.greenpath.com. Return to HCCU Presentation < >
Start Now! The best time to start any new habit or goal is now. The longer you have to plan and save the brighter your future will be. Return to HCCU Presentation < >
Presenter: Lisa Mahaffey Health Center Credit Union Sr. Vice President Georgia Regents University 706-434-1609 lmahaffey@gru.edu Questions? Contact Information Return to HCCU Presentation <
STUDENT LOANS 101 Presented by: Nicole Caldwell Grants Manager
TODAY S AGENDA Types of loans We ll cover these Repayment topics options and more! Postponing payments Forgiveness programs Defaulted loans Tips for Student Borrowing
College can be a happy time
Until you start thinking about your student loans
According to a 2014 study, the average college senior graduated with approximately $28,950 in student loan debt! 1 in 7 borrowers default within three years.
So many choices! Subsidized Stafford Loans Unsubsidized Stafford Loans Perkins Loans Parent PLUS Loans Private Loans
Subsidized Stafford Loans Rates change each year Limit ranges from $3500 to $5500 No interest during school 2013-14: 3.86% 2014-15: 4.66% 2015-16: 4.29% Once you take out the loan, the rate does not change.
Unsubsidized Stafford Loans Rates change each year Limit usually $2000 if getting max subsidized amount Interest accumulates during school 2013-14: 3.86% 2014-15: 4.66% 2015-16: 4.29% Once you take out the loan, the rate does not change.
Perkins Loans Rates stay the same each year Limit = $5500 No interest during school Rate = 5% Needs based; First come, first served
Parent PLUS Loans Rates change each year Limit = cost of attendance Interest accumulates during school; Credit check required; Additional fees apply 2013-14: 6.41% 2014-15: 7.21% 2015-16: 6.84% Once you take out the loan, the rate does not change.
Want to keep track of your federal student loans? Go to www.nslds.ed.gov
Federal Repayment Options When you graduate, your loan payments start 6 months later You can usually select payment plans ranging from 10 years to 25 years or based on your income
Federal Repayment Options Standard Repayment: usually 10 years Graduated Repayment: usually increase every two years Extended Repayment: if balance exceeds $30,000; fixed or graduated payments not to exceed 25 years Income based repayment (IBR) and Pay As You Earn (PAYE)
Income Contingent Repayment (ICR) Income Based Repayment (IBR) Pay as You Earn (PAYE) www.ibrinfo.org Revised Pay As You Earn (REPAYE)
Managing Repayment tab (actual or estimated) $30,000 www.studentloans.gov
Consolidation? Federal Direct Consolidation Loan See www.studentloans.gov for more info Pro: lower payments; could lock in fixed rate for loans taken out before July 2006 Con: extended term means that you will pay more interest
Postponing Payments Deferment: no interest on subsidized and Perkins loans Forbearance: interest always accumulates
Public Service Loan Forgiveness 1. Job = Non profit (501(c)3) or government (including city, state & federal) 2. You must be on an income based payment plan such as IBR or PAYE. (no deferment, 25 year plans, etc.)
Public Service Loan Forgiveness 3. Loan must be with Direct Loans (Dept of Ed). All federal loans OK except Parent PLUS. No private loans.
Public Service Loan Forgiveness 4. Make a total of 120 on time payments. Does not need to be consecutive.
I don t work in a public service profession. Do I have options? If you re eligible for: 25 years of IBR 20 years of PAYE NOTE: there could be a tax liability for forgiven debt
What does it mean if my loan is in default? How does this happen? Federal - 9 months Private - Time varies refer to loan contract
Rehabilitation Strict payment schedule for 9 months Upon completion, your loan will be reset and any notation of default on your credit report will be erased
Consolidation See www.studentloans.gov for more info Quicker than rehab, but credit report will look worse
What happens if I don t pay? Your credit reports/scores may be tarnished You may be sued by your lender(s) Your tax returns may be taken away to pay the debt Your wages may be garnished to pay the debt Your student loans is very difficult, if not impossible, to be discharged under bankruptcy.
For much more detailed information, check out www.askheatherjarvis.com
Tips for Student Borrowing Plan ahead and graduate with less debt! Search for grants or scholarships www.fafsa.ed.gov Work while you are attending school Know how much you will need Keep track of how much you are borrowing Exhaust federal loan options first before considering a private loan Borrow only what you need, not what you can!
Tips for Student Borrowing Create a budget and follow it! Make a plan for the shortfall Change your spending habits - Buy used books - Take advantages of free school activities - Resist impulsive buying - Stay healthy! - Understand your cell phone plan - Brew your own coffee
Tips for Student Borrowing Review your credit reports at least once a year - Equifax - Experian - TransUnion Obtain all three from: AnnualCreditReport.com 877-322-8228
Additional Resources www.studentloanborrowerassistance.org www.studentaid.ed.gov www.consumerfinance.gov
Online Resources www.greenpath.org/university
THANK YOU! 855-400-3714 GreenPath.org GreenPath.org/University