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!

Students need to be aware of some changes coming to the process of paying their tuition and student fees, beginning in Fall 2012. Students can still make payments in person at the Bursar’s Office in Carington Hall, by mailing a payment to the Bursar’s Office, or make a payment through my.missouristate.com. Cash, Personal Checks, Money Orders, Cashier Checks, Traveller’s Checks, and Credit/Debit Cards are all acceptable forms of payment.

The main changes that students will encounter are with credit card payments. Beginning August 1, 2011, there will be a convenience fee of 2.75% on all credit card payments. It can be noted that the University does not share in this fee; it is charged by the processing company. Also, MasterCard, Discover, and American Express are the only cards that will be accepted. Visa will not be accepted to make payments on your student account.

Be prepared for these fees, beginning in the fall, and do whatever you  can to be financially responsible and avoid unnecessary fees.

Be sure to check out the latest episode of MSU Real L.I.F.E. TV! On this episode, students were quizzed about applying for a credit card, interest rates, fees, and more. It is a great opportunity to test your knowledge and compare it to the contestants. This episode also marks the show’s largest winner, as one contestant walked away with a $50 gift card to the MSU Bookstore! Also, special guest Art Spisak, Director of the MSU Honors College, had his knowledge tested on the episode. And stay tuned, as some credit smart tips are provided at the end of the show to help students use their credit cards wisely.

And continue studying up on your financial literacy to prepare to win a MSU Bookstore gift card when you get your opportunity on MSU Real L.I.F.E. TV!