Hello everyone!

Financial aid disbursements will be issued soon. For those of you expecting a refund check, how are you planning to spend your extra cash?

Do not go blow your refund on new gadgets, trendy clothes, and other items that would be considered “wants” and not “needs.”

Do not just store the refund in your checking account. Storing the money in your checking account prevents you from differentiating between money from your income and money from your refund while spending. Plus, this money is not working for you in a non-interest earning checking account.

Instead, consider saving, investing, or smart spending!

By saving and investing, you can earn interest on your refund and use that money to help repay your loans down the road.

Spend smart by using your refund money to cover living expenses such as rent, sensible groceries, or car improvements to make your vehicle more reliable for getting to class.

Happy refund managing!

Establishing a credit history and building a credit score are super important activities that college students need to start thinking about. Why? Having a credit history and good credit score will affect your ability to be accepted for future car loans, mortgages, etc., and even whether particular employers will choose to hire you or not. Yes, many employers check the credit of their potential employees to help determine if they are responsible individuals.

So how can you get YOUR credit off  and running? What if you don’t have any credit at all??? Happily, you have a few options. Read on to get started, then do some research online to learn more.

1) Obtain a secured credit card.

These cards involve a deposit amount of a few hundred dollars to open the account. After about a year of good behavior (pay on time, etc), you can usually successfully apply for an unsecured card. If you have absolutely zero credit and your applications are denied by credit card companies, this is the way to go to get started.

2) Ask your parents to co-sign with you for a card.

Your parents’ credit history will help get your application accepted. As a co-signer, they will be liable if you fall behind on payments. Though this extra liability  is a nice safety net, it is not a good way to keep a friendly relationship if you choose to use it. So if you get a co-signer, the best thank-you to them is to pay your bills on time! But you already planned on doing that anyway, right?

3) Ask your parents if you can be an authorized user on one of their cards.

Your parents pay the bill, and your credit score benefits from their timely payments. However, they can cancel your authorized user status if you begin to use the card irresponsibly. So again, be on your best behavior if you are able to utilize this option.

There are many other options out there for building a credit history and score from the ground up, but hopefully these ideas will get you started.

Good luck!!

In our last post at the beginning of the summer, we wanted to inform you about the looming possibility that fixed interest rates on Subsidized Stafford Loans would double from 3.4% to 6.8% for all new loans.

You may lay your fears to rest for the current year. Congress signed to have the rate remain at 3.4%. All Subsidized Stafford Loans taken out for the 2012-2013 will still have the fixed interest rate of 3.4%.

Congress will need to approve this again next summer in 2013, however, so keep an eye on what their decision is before July 1, 2013 rolls around. If they choose not to extend the low rates,  fixed interest rates on July 1, 2013 for Subsidized Stafford Loans will increase from 3.4% to 6.8% on all new loans taken out after that date.

For more information on student loans or general finance, feel free to set up a one-to-one meeting with a Peer Financial Counselor in Carrington Hall, Room 419.

     Beginning July 1, 2012, the fixed interest rates on Subsidized Stafford Loans will double from 3.4% to 6.8%.  This affects only those who will be incurring new loans.  Students who currently have Subsidized loans will not be affected.  For example, if you have a subsidized Direct Stafford Loan today at a fixed interest rate of 3.4%, your interest rate will NOT increase to 6.8% in July. 

     For more information on student loans or general finance, feel free to set up a one-to-one meeting with a Peer Financial Counselor in Carrington Hall, Room 419.

With just under two weeks of classes left, finals are approaching quickly… and so is Christmas break!  For many students, the break is a time to relax, visit family and friends, and enjoy the holidays.  While many consider Christmas season a critical break in their school year, it can also be a time when students overspend greatly.  To reduce putting yourself in debt over the break, try to follow some of the tips below.

Research Large Purchases: December is a great month for large purchases such as appliances, TVs, and even cars.  Before making such a significant purchase, however, take the time to research different brands, models, and styles of the items you want.  This way, when it comes time to buy that large ticket item, you know you are getting the most bang for your buck.

Take Advantage of Holiday Discounts: Starting with Black Friday and continuing through the month of December, many retailers offer enticing discounts and sales on almost all of their items.  Take advantage of these discounts by making your Christmas gift purchases during this time.  Also consider purchasing items for the next holiday season during this time– you can find Christmas trees and decorations at steep discounts in the end of December and early January.

Just Because it’s on Sale Doesn’t Mean You Need It: With Black Friday sales kicking off the holiday discount season, it is very easy to make impulse purchases.  To avoid falling into this trap, make a list of items you are looking for before you head out to shop.  This way, you have a clear focus on what you are looking for and can minimize the random, impulse purchases just because “they are a good deal”.

Save Money over the Break: For many students, Christmas break is not only a time to relax, but is also a time to make some extra cash.  Whether you already have a steady job, or are just looking for something temporary, the break can offer a chance to build back up the savings account you may have dug into during the fall semester. 

Calling all May 2011 graduates! November has arrived, and with it comes your first bill to repay those federal student loans.

One option you might consider as you get started on your repayment journey is loan consolidation. Consolidating allows you to combine your loans into one easy monthly payment instead of many. Phew! This option allows for a lower monthly payment, but keep in mind that this also means the repayment period will be extended and you may end up paying more interest.

If you are struggling to pay back your loan and are at risk for defaulting, get help! Remember that your lenders are here to help you.

We realize that the economy is tough and the unexpected occurs. Jobs evaporate and emergencies happen. If you find yourself financially unstable and are unable to make payments on your loan, consider applying for deferment or forbearance. If you qualify for a deferment, you can temporarily postpone loan payments. Interest will still accrue on unsubsidized loans during the postponement period. A forbearance allows you to temporarily stop making loan payments or make smaller payments for a short period of time. Keep in mind that this will extend the repayment period for your loans. Remember, if you default on your student loans you will lose eligibility for a deferment or forbearance.

Good luck!