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INTRODUCTIONWe want your student finance workbook to be a helpful tool for you.
We believe that every Wyotech student should have the tools necessary to make informed
financial decisions. We put this information in one place so you know where to look when you
have questions.
We advise that you keep your workbook in a safe place so you can access your financial
information whenever you need it.
If you have questions that this workbook can’t answer make sure to ask your student finance
planner. If they don’t have the answer right away, they will help you find it.
My Program:
Anticipated Graduation Date:
School ID Code:
Student ID Number:
Student Finance Planner:
Student Finance Planner Contact:
Although we hope that this workbook will be useful to you, you are not required to complete this workbook or discuss it with your student finance planner. You are not required to use or complete the workbook to enroll in school. These materials discuss strategies that some people might use for budgeting and managing finances. Credit scoring methods and formulas are not publicly known; therefore, Zenith Education Group, Inc. (Zenith) and Wyotech make no assurances that any action will produce a specific result or impact a credit score. Rather, the information presented here provides examples of various financial strategies. Everyone’s situation is different, and you are responsible for assessing your own financial situation. Zenith and Wyotech are not financial planning or credit counseling services, and Zenith and Wyotech do not offer financial planning or credit counseling services. The information in these materials is provided only as general information and is not intended to be relied upon as personal financial advice. These materials include information about other companies and websites which are not under Zenith’s or Wyotech’s control or affiliated with Zenith or Wyotech in any way. The inclusion of any websites or references to other companies does not imply a recommendation or endorsement of the views expressed within those websites or by those companies.
WELCOME TO YOUR F INANCIAL WORKBOOK!
3
FINANCING OPTIONS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4
BREAKING DOWN THE COST OF SCHOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
BREAKING DOWN THE SHOPPING SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
UNDERSTANDING YOUR LOANS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11
KEEPING TRACK OF YOUR STUDENT LOANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
REPAYMENT PLAN OPTIONS BASICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
REPAYMENT ESTIMATOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
LOAN GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
APPLYING FOR FINANCIAL AID � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 24
FINANCIAL HEALTH � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29
BUDGETING & SAVINGS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30
YOUR CURRENT BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
SAVINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
BUDGETING - METHODS AND RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
CREDIT SCORE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42
BANKING� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 49
HOW TO CHOOSE A CREDIT CARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
SCAMS & SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
STUDENT RESOURCES & TOOLS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 54
GLOSSARY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 69
CONTENTS
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FINANCING OPTIONS
We know how important it is to balance your finances with your educational goals. Our
payment options were carefully designed with you in mind. Here are the various financing
options, terms and required documents to begin your financing selection. Talk with family,
trusted friends and your student finance planner to figure out which plan is best for you.
■■ Cash allows you to pay for your program or term in full before you begin school, or pay in
installments over the length of your program. Paying in cash has several benefits, including
having no loans that accrue interest from loans and no debt following graduation or
withdrawal from school.
■■ Employer Direct Bill/Agency Contact is another option that allows some students to
receive tuition assistance from their employer or workforce agency. If you are eligible for
employer direct bill or agency contract, submit an approved tuition authorization form or
tuition voucher completed and signed by an official employer/agency representative. The
authorization voucher must be submitted to the Student Finance office prior to the first
class session in order for the school to bill the employer/agency.
Financial Aid is designed to help students pay for school. There are different types of financial
aid, based on eligibility. Your student finance planner can help you figure out whether you
qualify for any of the following types of aid:
■■ Federal Pell Grant is a need-based federal grant for undergraduate students and typically
does not require repayment.
■■ Federal Supplemental Education Opportunity Grant is a grant that’s available to
undergraduate students and typically does not require repayment. Check with your
student finance planner to learn about the selection criteria for this grant.
■■ Federal Work Study is a need-based program that can help you earn money while in
school. Jobs are provided both on and off campus, and hourly wages are paid directly to
you. Ask your student finance planner if your school participates in this program.
■■ The Zenith Student Grant is a multimillion-dollar institutional program with grants awarded
on an annual basis to students of Everest and Wyotech schools owned by Zenith Education
Group who demonstrate financial need. Please see your student finance planner for more
information.
FINANCING OPTIONS
6
FINANCING OPTIONS
The Federal Direct Loan Program has low-interest government-funded loans including
Federal Stafford Loans, Federal Parent Loans for Undergraduate Students (PLUS) and Federal
Consolidation Loans.
FEDERAL SUBSIDIZED STAFFORD LOAN
■■ A need-based loan with a fixed interest rate.
■■ Interest is paid by the government while you are in school at least half-time. The amount
to be repaid includes the original loan amount plus interest.
■■ Interest begins to accrue when you leave school or drop below half-time status.
■■ Repayment begins six months after you graduate, leave school or drop below half-time
status.
FEDERAL UNSUBSIDIZED STAFFORD LOAN
■■ A non-need-based loan with a fixed interest rate.
■■ Available to all eligible students regardless of income.
■■ Interest begins to accrue at the time of disbursement.
■■ You are responsible for paying accrued interest while you are still in school, but you can
also choose to defer and capitalize your interest payments, which increases the total
amount of the loan that must be repaid.
■■ Repayment begins six months after you graduate, leave school or drop below half-time
status.
PARENT LOAN FOR UNDERGRADUATE STUDENTS (PLUS)
■■ This is a credit based loan.
■■ If you qualify as a dependent, your parents can use this interest-bearing loan to borrow up
to the total cost of your education, minus any other aid for which you are eligible for.
■■ The interest rate is fixed. Interest begins to accrue at the time of disbursement.
■■ Repayment typically begins within 60 days after the loan has been fully disbursed.
Note: Additional programs may be available. See your student finance planner for more information.
FINANCING OPTIONS - FEDERAL DIRECT LOANS
+
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–
–
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FINANCING OPTIONSTHE ESTIMATED COST OF SCHOOL FOR ONE ACADEMIC YEAR (DIRECT COSTS)
Tuition
Books & Fees
Direct Cost
Grants
Scholarships
Other Funds
Remaining Balance
*This information is an estimate and subject to change.
BREAKING DOWN THE COST OF SCHOOL - ESTIMATE *
+
–
–
–
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FINANCING OPTIONSTHE ESTIMATED COST OF SCHOOL FOR ONE ACADEMIC YEAR (DIRECT COSTS)
Tuition
Books & Fees
Direct Cost
Grants
Scholarships
Other Funds
Remaining Balance
*This information is an estimate and subject to change.
BREAKING DOWN THE COST OF SCHOOL - ESTIMATE *
9
FINANCING OPTIONS
The Consumer Financial Protection Bureau’s (CFPB) shopping sheet1 is a tool designed to help
you better understand your actual costs of school and the type/amount of grants and loans
for which you qualify. You will receive the shopping sheet during your meeting with your
student finance planner. On the next page, you will find a few key points to help guide you
through the shopping sheet:
BREAKING DOWN THE SHOPPING SHEET
MM / DD / YYYY
University of the United States (UUS)Student Name, Identifier
Estimated Cost of Attendance $X,XXX / yr
$
Total Grants and Scholarships ("Gift" Aid; no repayment needed) $X,XXX / yr
$
Net Costs $X,XXX / yr
$
$
Family Contribution $X,XXX / yr
Payment plan offered by the institution
Parent or Graduate PLUS Loans
Military and/or National Service benefits
Non-Federal private education loan
Tuition and fees X,XXX
Housing and meals X,XXX
Books and supplies X,XXX
Transportation X,XXX
Other education costs X,XXX
Grants and scholarships from your school X,XXX
Federal Pell Grant X,XXX
Grants from your state X,XXX
Other scholarships you can use X,XXX
(Cost of attendance minus total grants and scholarships)
Options to pay net costs
Work-Study (Federal, state, or institutional) X,XXX
Federal Perkins Loan X,XXX
Federal Direct Subsidized Loan X,XXX
Federal Direct Unsubsidized Loan X,XXX
*Recommended amounts shown here. You may be eligible for a different amount. Contact your financial aid office.
(As calculated by the institution using information reported on the FAFSA or to your institution.)
Graduation Rate
Percentage of full-timestudents who graduatewithin 6 years
XX.X%
Loan Default Rate
Percentage of borrowersentering repayment anddefaulting on their loan
X.X%
This institution
X.X%
National
Median Borrowing
Students who borrow atUUS typically take out$X,XXX in Federal loansfor their undergraduatestudy. The Federal loanpayment over 10 years forthis amount isapproximately $X,XXX permonth. Your borrowing maybe different.
Repaying your loans
To learn about loan repayment choices
and work out your Federal Loan
monthly payment, go to:
http://studentaid.ed.gov/repay-
loans/understand/plans
For more information and next steps:
University of the United States (UUS)
Financial Aid Office
123 Main Street
Anytown, ST 12345
Telephone: (123) 456-7890
E-mail: financialaid@uus.edu
Customized information from UUS
1
2
3
4
5
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1 See, e�g�, “Know Before You Owe: Student loans project” http://www�consumerfinance�gov/students/knowbeforeyouowe/
10
FINANCING OPTIONS
Here are a few key points to help guide you through the CFPB’s shopping sheet. If you have
any additional questions, feel free to ask your student finance planner.
BREAKING DOWN THE SHOPPING SHEET
Estimated Cost of Attendance - The total amount it will cost you to go to school during the current
school year. The amount includes tuition, fees, books and supplies (direct costs) as well as housing,
meals, transportation and other education costs (indirect costs). You are responsible for the direct costs
(tuition, fees, books and supplies). The indirect costs are only an estimate and may not reflect your
financial situation.
Grants & Scholarships to Pay for College - Student aid funds that do not have to be repaid. Grants
are often need-based, while scholarships are usually merit-based. Occasionally you might have to pay
back part or all of a grant if, for example, you withdraw from school before finishing a semester. Check
with your student finance planner for more information and resources.
What Will You Pay for College - An estimate of the actual costs that you or your family will need to pay
during the school year to cover education expenses at a this institution. Net costs are determined by taking
the institution’s cost of attendance and subtracting your grants and scholarships. Uses this formula to
calculate the Net Cost of school:
■■ Cost of Attendance – Total Grants & Scholarships = Net Cost
Note that the above formula includes indirect costs, which you don’t actually pay to the school. To
determine your direct costs use the following formulas:
■■ 1) (Tuition & Fees) + (Books & Supplies) = Direct Costs
■■ 2) Direct Costs – (Grants & Scholarships) = Remaining Balance
Work Options - A federal student aid program that provides part-time employment while you are
enrolled in school to help pay your education expenses.
Loan Options - Borrowed money that must be repaid with interest. You can find more information
about federal loans at StudentAid.gov and the Smart Borrowing brochure provided by your
student finance planner.
Other Options – The family contribution is reported to you on your Student Aid Report, also known
as the SAR and is based on the financial information you provided on your FAFSA. This section also
provides a few additional options to help pay for the direct costs of school not covered by funding
listed above. Check with your student finance planner for more information and resources.
1
2
3
4
5
6
12
UNDERSTANDING YOUR LOANS
The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s
central database for federal student aid. It can help you keep track of all your federal student
loans and grants in one centralized location. You will need your FSA ID to log in to NSLDS.
The FSA ID is created when submitting your FAFSA (Free Application for Federal Student Aid)
for the first time. You can also create your FSA ID on the NSLDS website.
You can use NSLDS to check your federal student loan information. It is updated every time
a new federal student loan is disbursed to you, and periodically with updates from your
servicer(s). NSLDS is a resource available to you at any point that you have federal student
loan aid, whether you are in school or out of school.
USING NSLDS
Once you have created your FSA ID, you will be able to view your federal aid information
(Pell grants and loans) by going to NSLDS�ed�gov, clicking on “Financial Aid Review” and
logging in with your FSA ID and password. This will help you keep track of your Pell grant
usages, loan balances and any outstanding interest owed.
KEEPING TRACK OF YOUR STUDENT LOANS
13
UNDERSTANDING YOUR LOANS
Federal Direct student loan repayment begins when you graduate, leave school or once you
are no longer enrolled at least half time� You will receive a 6-month grace period (see below)
on your Direct Subsidized and Unsubsidized Loans during which you are not required to make
loan payments. You must begin repayment at the end of your grace period.
Make sure that both your school and loan servicer know that you are no longer enrolled. If
you don’t begin making payments when required, there is the possibility that you will lose
repayment incentives you may have received or even go into default.
Your school is required to provide you with exit counseling before you graduate or withdraw.
Check with your school to see how exit counseling is conducted, whether as a personal or
group exit interview or as a session that you can complete online.
GRACE PERIOD
Grace periods begin the day after you stop attending school on at least a half-time basis.
Once your grace period ends, you must begin repaying your federal student loan(s).
If you re-enroll in school at least half-time before the end of your grace period, you will
receive the full 6-month grace period when you stop attending school or drop below half-
time status.
There is no grace period for Direct PLUS Loans—the repayment period for a PLUS Loan
begins on the day after the final loan disbursement is made.
It is important to note that you can always begin repaying the principal balance on your
student loans while you are in school. To do this, call your servicer and tell them you want to
make a principal payment.
WHEN DOES REPAYMENT BEGIN?
14
UNDERSTANDING YOUR LOANS
You’ll have the choice of several plans, and the loan servicer will notify you of the date when
your first payment is due. If you do not choose a repayment plan, you will be placed on
the standard repayment plan. Most Direct Loan borrowers choose to stay with the standard
repayment plan, but there are other options for borrowers who may need more time to repay
or who need to make lower payments at the beginning of the repayment period.
Your loan servicer will automatically enroll you in the standard repayment plan at the end
of your 6-month grace period� You can change repayment plans by contacting your servicer.
These repayment plans are offered to students completely free of charge through your loan
servicer.
REPAYMENT PLAN OPTIONS BASICS
Standard
Graduated
Pay-As-You-Earn‡
Income-Based*‡
Income-Contingent*‡
Up to 10 Years
Up to 10 Years
Up to 20 Years
Up to 25 Years
Up to 25 Years
*These plans require you to demonstrate that you are in financial hardship.‡Income-driven repayment plans require borrowers to re-apply annually.
Fixed amount of at least $50 per month
Payments start low and gradually increase over
time, usually every two years.
Payments change as your income changes. Up
to a max of 10% discretionary income.
Payments change as your income changes. Up
to a max of 15% of discretionary income.
Payments calculated each year and is based off
of income and family size
PLAN TIME MONTHLY PAYMENT
15
UNDERSTANDING YOUR LOANS
Here is a partial list of pros and cons for each repayment option. When you enter repayment,
this chart may help you to decide which repayment option is the best for you. You can
also calculate the anticipated monthly payment using the Federal Student Aid Repayment
Estimator. Instructions for the repayment estimator can be found on page 18.
REPAYMENT PLAN PROS AND CONS
*These plans require you to demonstrate that you are in financial hardship.‡Income-driven repayment plans require borrowers to re-apply annually.
Higher monthly payments
Pay more interest over time
Pay more interest over time
Longer repayment period
Higher payments than other
income-based options
Longer repayment period
Pay more interest over time
Potentially the option with the
longest repayment period
Larger loan total
Lose your grace period
Inferior loan discounts
Can only consolidate once
Pay less interest over time
Low initial payments that
slowly increase
Payments based on income
Payments will not exceed
10% of discretionary income
Payments based on income
Payments will not exceed
15% of discretionary income
Payments based on income
Lower monthly payments
Potentially a reduced
interest rate
Resets the clock on
forbearance and deferment
Standard
Graduated
Pay-As-You-Earn‡
Income-Based*‡
Income-Contingent*‡
Consolidation
PLAN PROS CONS
16
UNDERSTANDING YOUR LOANS
We want the best for our students and are here every step of the way to help you, but we
know life happens. If at some point you need to drop, we want you to be prepared.
Speak with the staff if you are considering dropping out or feel like it is your only option.
They’re there to support you and your success and will do everything they can to help you
make the best decision for your circumstances.
Dropping out starts the repayment process� Repayment of federal student loans begins 6
months after you withdraw from school. Even if you did not receive a diploma, you’re still
required to repay your student loans.
Dropping out as a diploma/certificate student impacts which classes you can take� If you drop
a class you will have to wait until that class is offered again, which can take up to 9 months.
Dropping out as a degree student can impact your course credit and the cost of your
schooling� Depending on when during the semester you drop out, you may not receive a
refund of money that you used to pay for the classes, including loans. You will also have to
pay this cost again if you plan on retaking any of the courses at a later date. In addition, you
will not receive course credit for any class(es) you were taking that semester.
WHAT IF YOU DON’T PAY BACK YOUR LOANS?
If you are not able to make payments on your student loans as scheduled, your loans
will become delinquent and may eventually go into default� Default does not happen
immediately, so if you miss a payment, call your loan servicer to talk about your options.
You may be eligible to enter an income-driven repayment plan, or receive a temporary
postponement of your payments through a forbearance or deferment. These options may
help you avoid defaulting on your federal student loans. Federal student loans officially enter
default after failing to make a payment for 270 days. Options may be available to resolve the
default. Contact your servicer and ask for any available options. Servicer contact information
can be found on page 68�
WHAT HAPPENS IF YOU DROP OUT?
17
UNDERSTANDING YOUR LOANS
Initiation of the administrative wage garnishment process - The government can ask your
employer to withhold money from your paycheck and send the money to the government,
this is known as “administrative wage garnishment.” The Treasury Offset Program (TOP) can
also start, meaning the government will take any funds owed to you to apply toward your
federal student loan balance. This can include federal benefits like income tax refunds, social
security income and disability checks.
The unpaid balance of your loan is immediately due in full, which includes principal and interest.
Your student loan debt will increase� Late fees, additional interest, court costs, collection
fees and other costs associated with the collection process will be added to your total federal
student loan balance.
You lose eligibility for federal help, which includes deferment, forbearance, repayment plans,
and any additional federal student aid.
Your credit may be impacted, which means that things like purchasing real estate or applying
for a credit card may become challenging.
Legal action can be taken against you by the government.
HOW TO GET OUT OF DEFAULT
Paying back your loan in the full amount� This option is always available to you.
Loan rehabilitation can remove the default from your credit� Loan rehabilitation is when you
make payments for 9 voluntary, on-time monthly payments within 10 months, for as low as
$5 a month, to remove your default and return the loan to good standing. Once the loan is
rehabilitated, you may regain eligibility for benefits that were available before you defaulted.
Those benefits may include deferment, forbearance, a choice of repayment plans, loan
forgiveness, and eligibility for additional federal student aid. You may only rehabilitate your
federal loans once, so if you rehabilitated your federal student loans after August 2008, this is
not an option for you.
Loan consolidation can also help you get out of default. However, before you are allowed to
consolidate a defaulted loan, you typically need to make consecutive and voluntary payments
on your loan. Generally, you may only consolidate once, so if you have already consolidated
your student loans, this may not be an option for you.
THE CONSEQUENCES OF DEFAULT
18
UNDERSTANDING YOUR LOANS
To figure out how much you will be paying monthly under different repayment options,
follow the steps below:
(1) Go to Studentloans.gov.
(2) Hover your mouse over the “Managing Repayment” tab.
(3) Click on “Repayment Estimator.”
REPAYMENT ESTIMATOR
18
19
UNDERSTANDING YOUR LOANS
(4) If you have an FSA ID, log in with your username and password. If you do not have an
FSA ID, click “Proceed”
(5) Start adding in your loan amounts by clicking on “Add Loan(s).” Note: If you logged
in with your FSA ID and also have previous loans, those loans will automatically be added
into the repayment estimator�
REPAYMENT ESTIMATOR
20
UNDERSTANDING YOUR LOANS
(6) You can now enter your loan amount, interest rate, and the type of loan (i.e.
Subsidized/Unsubsidized).
(7) Next, you will enter your Tax Filing Status, Adjusted Gross Income, Family Size, and
your state of residence.
REPAYMENT ESTIMATOR
21
UNDERSTANDING YOUR LOANS
(8) Once you have entered all of the information, click “Calculate Results.” Scroll down
the page and you will see a chart much like the one below. Use the chart on this page to fill
out your estimated repayment options for future reference.
REPAYMENT ESTIMATOR
PLAN REPAYMENTPERIOD
MONTHLYPAYMENT
TOTALINTEREST
TOTALAMOUNT PAID
Standard
Graduated
Pay-As-You-Earn‡
Income-Based*‡
Income
Contingent*‡
*These plans require you to demonstrate that you are in financial hardship.‡Income-driven repayment plans require borrowers to re-apply annually.
22
UNDERSTANDING YOUR LOANS
A student loan is money you borrow for school and must repay with interest.
Aggregate loan limit is the total amount you are allowed to borrow in federal student loans
for undergraduate and graduate study.
Annual loan limit is the total amount you are allowed to borrow each academic year.
A loan servicer is an entity that maintains a loan on behalf of a loan holder. A federal loan
servicer is a loan servicer for the U.S. Department of Education.
The principal is the loan amount plus any capitalized interest. During repayment, the principal
is usually referred to as the outstanding (unpaid) principal balance.
Interest is the cost to borrow money. Interest is calculated as a percentage of the outstanding
principal balance. Interest on federal loans is established each year by the federal government.
A disbursement is a portion of a federal student loan that the school pays out by applying the
funds to the student’s school account or by paying the borrower directly. Students generally
receive their federal student loans in more than one disbursement.
The repayment period is the time period over which you must repay your federal student loan.
It may range from 10 to 30 years, depending on loan amount, loan type and repayment plan.
A deferment is a period during which repayment of your federal student loan is temporarily
delayed because you are still in school, of an economic hardship, a national emergency, active
military duty, or during the 13 months following active military duty. You do not have to make
payments during the deferment period but interest will accumulate on your unsubsidized
loans during the deferment, and the amount you pay in the future will be higher.
Forbearance can be granted by your federal student loan servicer if you are not able to
make your scheduled loan payments and you do not qualify for a deferment. It allows you
to stop making payments or reduce your payment for up to 12 months. There are two types
of forbearance: discretionary and mandatory. Talk with your loan servicer for more details.
Interest on your subsidized and unsubsidized loans will continue to accrue, and the amount
you pay in the future will be higher.
LOAN GLOSSARY
23
UNDERSTANDING YOUR LOANS
Consolidation allows you to combine multiple federal loans into one loan. This can be easier
to manage if you have multiple loans and loan servicers. It is also possible to get out of
default by consolidating your loans. However, consolidation can not be undone and you may
end up paying more in interest over time. Private loans and parent PLUS loans cannot be
consolidated with federal loans. For more information about consolidation contact:
Loan Consolidation Information Call Center: 1-(800) 557-7392
LOAN GLOSSARY CONTINUED
APPLYING FOR FINANCIAL AID
25
To apply for federal financial aid, you must fill out the Free Application for Federal Student Aid
(FAFSA). You will need the following documents with you while completing the FAFSA:
■■ School ID code (provided at the front of this workbook)
■■ Parents’ & student’s Social Security number (for dependent students)
■■ Driver’s license number
■■ The previous year’s tax return or federal tax information
■■ If married, you will need both yours and your spouse’s tax return
■■ If dependent, you will need your parents’ tax return
■■ Cash, savings, and checking account balances
■■ Your Federal Student Aid ID (FSA ID) username and password
Below are the instructions to fill out a FAFSA. If you have questions, feel free to call your
financial aid planner, they are more than happy to help. You may also contact the Federal
Student Aid Information Center at 1-800-433-3243.
(1) Go to the student portal at my�wyotech�edu and login�
(2) Click on the “Resources” tab�
(3) Click on “7 easy steps to completing the FAFSA�”
(4) Follow the instructions in the video to complete your FAFSA� Note: When the FAFSA
asks you for your income information, you may select the IRS Data Retrieval tool� Ask
your Student Finance Planner for instructions on how to use this tool�
FILLING OUT YOUR FAFSA
26
APPLYING FOR FINANCIAL AID
To access the student portal, follow these instructions:
(1) Retrieve the username and password information provided to you in your welcome
email. If you did not receive an email, contact your Student Finance Planner.
(2) Go to my.wyotech.edu and log in with your username and password.
(3) Answer your security question.
(4) Choose a new password and click “Submit.”
STUDENT PORTAL INSTRUCTIONS
27
APPLYING FOR FINANCIAL AID
The Master Promissory Note (MPN) is a legal document in which you promise to repay
your federal student loan(s) and any accrued interest and fees to the U.S. Department of
Education. It also explains the terms and conditions of your loan(s).
If you wish to apply for a Direct Loan, you must also complete a Master Promissory Note
(MPN). To complete the MPN, follow these steps:
(1) Go to the Student Loans website at: www.studentloans.gov.
(2) Click “Log In” and enter your FSA ID information.
(3) Select “Complete Master Promissory Note.”
(4) Select the type of MPN you would like to complete (i.e. subsidized/unsubsidized).
(5) Complete the required steps and submit your MPN for approval.
(6) If you ever need to view your MPN again, you can view it by clicking on
“Completed MPNs” under the “My Loans Documents.”
Remember, the MPN needs to be completed in one session.
The MPN is good for up to 10 years. This means that once you sign the MPN, you will
not have to sign it again for any additional loans for the next 10 years. However, although
you are not signing a new promissory note for each new loan, the loans are still of equal
importance.
MASTER PROMISSORY NOTE
28
APPLYING FOR FINANCIAL AID
To get started with iGrad, follow these instructions:
(1) Go to my.wyotech.edu and login with your username and password.
(2) Click on the “Resources” tab.
(3) Click on “Entrance Exam.” This will take you to the iGrad website.
(4) Click “Sign up free” and enter your information to create an account.
(5) Click on the link that says “Entrance Counseling.”
(6) Follow the instructions and answer each question to complete Entrance Counseling.
(7) Once completed, your results will be sent to the school where they will be able to
confirm your successful completion of Entrance Counseling.
iGRAD INSTRUCTIONS (ENTRANCE COUNSELING)
FINANCIAL HEALTH
WHAT YOU WILL LEARN ABOUTThe rest of this workbook provides a brief overview of financial health. It gives general
information about budgeting, saving, credit, banking, and security.
We want you to have the financial tools you need to make an informed decision about
school. While in school or after school, you might want to refer to this section of the
workbook as a starting point to re-evaluate your finances.
Reminder: These materials discuss general strategies for budgeting and managing finances. Zenith and Wyotech make no assurances that any action will produce a specific result or impact a credit score. You are responsible for assessing your own financial situation. Zenith and Wyotech are not financial planning or credit counseling services, and Zenith and Wyotech do not offer financial planning or credit counseling services. The inclusion of any websites or references to other companies does not imply a recommendation or endorsement of the views expressed within those websites or by those companies.
31
BUDGETING & SAVING
Fill out this budgeting form with your own information based on your current income. If you
don’t have a traditional income stream, consider all of the money you have coming in each
month. We will revisit this budget later in the workbook in the “Future Budget” section where
we will look at your potential future income and how that might affect your budget.
YOUR CURRENT BUDGET
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Take-Home Pay
Total Income
Rent/Mortgage
Insurance
Loan Payments
Tuition & Fees
Utilities
Cell Phone
Groceries
Transportation
Laundry
Child Care
Pets
Credit Card Payments
Dining Out
Entertainment
Household
Total Expenses
Total Income
– Total Expenses
Net Income
Monthly Income Monthly Expenses
32
BUDGETING & SAVING
Tracking expenses can help even financially savvy folks learn recognize habits in new things
about their spending. Use this chart to keep track of your expenses for a few days. For each
item, consider whether it is a “want” or a “need.” This may help you identify ways to reduce
your spending.
DAILY EXPENSE TRACKER
Date Expense Cost of ExpenseNeed or
WantCan You
Reduce This?
33
BUDGETING & SAVING
After one month of following your budget, a financial emergency happens and will cost you
$300. Using the budget you created on the previous page, how do you adjust the budget to
account for the extra expense? Don’t forget to add your new expenses into your new budget!
BUDGETS ARE FLEXIBLE – LIFE HAPPENS
Insert the Total Income from previous page
Total Income
Total Income
Total Expenses
Financial Emergency
Net Income
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ Rent/Mortgage
Insurance
Loan Payments
Tuition & Fees
Utilities
Cell Phone
Groceries
Transportation
Laundry
Child Care
Pets
Credit Card Payments
Dining Out
Entertainment
Household
Total Expenses
MonthlyExpenses
Current Budget
New Budget
_
_
34
BUDGETING & SAVING
Now that we’ve looked at your current situation, let’s talk about how you expect things to
change after getting an education. The next exercise is based on your potential future budget.
First you will need to do some research on average entry level salaries in the field you are
planning on pursuing. Follow the instructions below to get started:
(1) Visit www.bls.gov
(2) Hover your mouse over the tab “Home”
(3) Click on “Pay and Benefits”
RESEARCHING POTENTIAL FUTURE SALARY
35
BUDGETING & SAVING
(4) The options presented on this page will allow you to filter information by various
categories such as area, occupation, or industry. We suggest clicking on “Wages by Area
and Occupation.”
(5) Next, click on “By State” under the section “Wage Data by State.”
RESEARCHING POTENTIAL FUTURE SALARY
36
BUDGETING & SAVING
(6) Find and select your desired state. Then, find the occupation you are considering
pursuing after graduation. Note: Since this is a long list, we suggest using the find option
by pressing Control+F (for Macs use Command+F) to search for occupations�
Use the chart below to write down the location and salary of the jobs you researched.*
*This information is subject to change depending on location and the date searched. You are solely responsible for the content of this chart, including locations, salaries, and determining whether the job titles you choose are jobs for which your program at school will qualify you. Employment is not guaranteed, but career services help is available for graduates.
RESEARCHING POTENTIAL FUTURE SALARY
JOB TITLE GEOGRAPHIC LOCATION SALARY RANGE
37
BUDGETING & SAVING
Based on your research of potential future salaries, fill out the budget below. This may give
you an idea of what your budget may look like in the future.
YOUR FUTURE BUDGET
Monthly Income Monthly Expenses
Take-Home Pay
Total Income
Rent/Mortgage
Insurance
Loan Payments
Tuition & Fees
Utilities
Cell Phone
Groceries
Transportation
Laundry
Pets
Clothing
Credit Card Payments
Dining Out
Entertainment
Household
Child Care
Total Expenses
Total Income
– Total Expenses
Net Income
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
38
BUDGETING & SAVING
For many students, attending Wyotech requires relocation. If this applies to you, use this
budget to estimate your relocation expenses.
RELOCATION BUDGET
Monthly Income Monthly Expenses
Take-Home Pay
Total Income
1st Month’s Rent
Last Month’s Rent
Security Deposit
Plane Ticket
Gas
Food
Lodging
Truck Rentals
Incidentals
Storage
Utility Deposits
Household
Total Expenses
Total Income
– Total Expenses
Net Income
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
39
BUDGETING & SAVING
Now that we’ve covered the basics of budgeting and how to identify unnecessary expenses,
you can start to think about what to do with any extra funds. This section details the basics
you need to know about starting a savings fund.
THE BASICS OF SAVING
Opening a savings account is the first step towards saving for your goals. Accounts opened
through a bank or credit union may give you easier access to your funds than other tools.
An emergency fund is a savings account that’s only used for emergencies, so you’re financially
covered when life gets tough. Many people recommend saving for 3-6 months of expenses.
Setting goals is an important first step to saving. We recommend that you revisit your savings
goals at least once a month to review your progress and make changes as needed.
Budgeting is another important step to saving for your goals. Please review our budgeting
section to learn more about how to fit savings into your budget.
401(k) accounts are savings accounts to which you make contributions from your paycheck.
The contributions go into a 401(k) account, with the employee choosing the investments
based on options provided under the plan. This is a great way to save for retirement.
EMERGENCY FUNDS
Emergency funds improve financial security by creating a safety net of funds that can be used
for emergency expenses. Here are two methods of determining how much to save:
■■ Save for 3–6 months of expenses. This way you’re able to sustain yourself in the event of a
loss of income or other emergencies (such as a flat tire or unexpected medical expenses.
■■ Save 20% of your income. This includes saving for emergencies and paying off debts that
will positively impact your future financial situation.
It’s up to you to decide how much to have in your emergency fund, but financial emergencies
typically affect food, housing, or job security. Save separately for “wants,” such as eating out or
going on a trip. It’s important to separate these kinds of savings to protect yourself in the face
of emergencies.
SAVINGS
40
BUDGETING & SAVING
When deciding how much to save, you should think about your goals. These goals could be
anything from buying a house to saving for a child’s education. Fill out the chart below with
your short, medium, and long-term goals. Then calculate the monthly savings and number of
months you will need in order to reach your goals.
SETTING GOALS
example: Down payment on a house $10,080 $120 84
example: Down payment on a car $3,000 $100 30
example: Relocation budget $600 $50 12
LONG-TERM GOALS (5+ YEARS)
MEDIUM-TERM GOALS (2–5 YEARS)
SHORT-TERM GOALS (6–12 MONTHS)GOAL AMOUNT
MONTHLY SAVINGS
MONTHS TO ACHIEVE GOAL
41
BUDGETING & SAVING
Budgeting is about what works best for you. What works well for one person might not be
the best method for someone else. Here are some general budgeting methods and resources:
The envelope method is when you get a stack of envelopes and label each one with an
expense (i.e. groceries or rent). When you receive money for a month, put the amount of
money budgeted for that category into the envelope. When you spend the money in the
envelope, you have spent everything in that category for the month.
Paper or excel spreadsheets allow you to write down all of your expenses and set a spending
goal for each category. Keep track of all purchases in each category to make sure you stay
below the limit you set.
Online financial resources or apps can do a lot of the work for you. They connect to your
bank account so you don’t have to calculate anything yourself. Set realistic goals and check
your account often so that you can adjust your spending based on your budget. Here are
a few websites that provide these functions, but there are many more out there if you are
looking for something different:
■■ Mint�com is a web-based financial management tool. It allows you to do things such as set
goals, help you budget, set bill reminders, and provide you with an estimated credit score.
■■ LevelMoney�com is a mobile financial tool that helps you track your cash flow and
provides a clear picture of where and how you are spending your money.
■■ PersonalCapital�com is an online tool that helps you manage your money and
investments. It also offers advice on how to manage your investments and plan for the
future.
Research financial resources and apps carefully to understand whether you will be charged
for the resource, and how your information will be protected�
BUDGETING - METHODS AND RESOURCES
43
CREDIT SCOREA credit score is a number that is calculated based on information in your credit report. Credit
scores indicate to lenders and creditors how likely you are to pay back the debt you owe
based on your past borrowing behavior, payment history, and length of credit history.
THE IMPORTANCE OF CREDIT
Credit scores can influence your eligibility, costs, and rates of financial products like loans,
credit cards, and insurance. A good credit score may lead to lower costs/rates and a poor credit
score may lead to higher costs/rates. Here is a list of a few things that credit scores can impact:
■■ When renting a home, some landlords will review your credit report and check your
credit score as part of the application process�
■■ When applying for a credit card or loan, it will determine your eligibility and interest rate�
■■ Potential employers will sometimes check your credit report, especially if the position
involves dealing with money, credit or sensitive information�
WHAT BUILDS AND AFFECTS MY CREDIT
Making on-time monthly payments on your credit card(s) and/or installment loans could help
build your credit because it shows potential lenders that you are responsible by consistently
making on-time payments. One way to start building your credit is to make on-time monthly
payments on your student loans�
If not timely paid as agreed, the following may impact your credit:
■■ Car insurance
■■ Medical bills
■■ Utility & cell phone bills
■■ Mortgage/Rent
■■ Payday loans
■■ Past due collections
WHAT IS A CREDIT SCORE?
44
CREDIT SCOREFollow the steps below to check your credit report:
(1) Request your free credit reports at www�annualcreditreport�com� Three national
consumer reporting agencies (aka credit bureaus) are required to provide consumers with
free access to their credit reports once each year. Some people pull one credit report every
3–4 months so that they get an update from each bureau throughout the year. These free
reports don’t include credit scores.
(2) Review each report carefully for accuracy� It’s not uncommon for credit reports to have
mistakes so it’s important to check and make sure that your reports are completely accurate.
(3) Check your credit score� You can purchase your credit score through
annualcreditreport.com. Some financial services offer one or more of your credit scores for
free. Be sure that you are only giving your social security number to reputable sites.
(4) Learn your range� Use the chart on this page to see where your credit score falls in the
range.
AVERAGE CREDIT SCORE RANGE 1
HOW TO GET YOUR CREDIT REPORT?
Excellent
Good
Fair
Poor
720 and Up
690–719
630–689
629 and below
1 See, e�g�, “Credit Score Ranges and How to Improve,” http://www�nerdwallet�com/blog/finance/credit-score-ranges-and-how-to-improve/
45
CREDIT SCOREAfter you have successfully pulled your credit report, check it carefully for inaccuracies. If you
find a mistake on your credit report, the Federal Trade Commission recommends the following
steps to try to get it corrected1:
(1) Contact the credit reporting company with a detailed letter of the mistake and any
documents/evidence you have proving that it is a mistake.
(2) The credit reporting company will then investigate your case and respond accordingly.
They are required to respond to you in writing and provide you with a free copy of your
credit report if any changes were made.
(3) Tell the information provider (company or organization that was providing information
about you to the credit reporting company) in writing that you have submitted a dispute to
the credit reporting company2.
(4) The information provider will then investigate the case to determine if the information
was inaccurate or incomplete.
(5) If the information on the credit report was inaccurate or incomplete, the information
provider should update the credit reporting company to update or delete them.
MISTAKES ON YOUR CREDIT REPORT
1See “Disputing Errors on Credit Reports,” http://www�consumer�ftc�gov/articles/0151-disputing-errors-credit-reports 2Note that disputing too much information on a credit report could also impact your credit score�
46
CREDIT SCOREIf you have poor or fair credit, your score could be low for one or more of the following
reasons1:
You missed a payment, derogatory remarks will generally drop off of your credit report after 7
years.
You are utilizing too much of your credit� Some companies will look at your debt to income
ratio. Lowering your balance to below 30%2 may help you improve your score.
You have a lot of hard credit inquiries� Applying for a credit card or loan—among other
circumstances— results in a notation, or inquiry, on your credit report providing notice that
those companies have looked at your credit report. One way to minimize the number of
inquires on your credit report is to only apply for a new account when you are sure you want
to open it. Your current creditors, insurance companies and others might also look at your
credit report after 2 years. Companies reviewing your credit report should not see an inquiry
when you review your own credit report.
HOW CAN I IMPROVE A POOR CREDIT SCORE?
1 See, e�g�, “Improve Your Credit Score,” http://www�experian�com/credit-education/improve-credit-score�html2 See “5 Reasons Your Credit Score May Have Dropped,” http://www�experian�com/blogs/ask-experian/2015/06/30/5-reasons-your-credit-scores-may-have-dropped-and-what-that-can-mean/
47
CREDIT SCORESecured cards are credit cards that require a security deposit. The credit limit is typically
the same amount as the security deposit. If you make payments on time and use the card
responsibly, it can be one option to build credit.
Unsecured cards do not require a security deposit but have a predetermined credit limit that
is typically low if you’ve never had a credit card. As with a secured card, making payments
and avoiding credit card debt can help you build your credit, but some credit card companies
may not offer you an unsecured card if you don’t have a credit score. You may be able to get
an unsecured card with the help of a co-signer, but if you fail to make your payments your
cosigner could be asked for payment.
Pay all of your bills on time� Delinquent payments and collections can have a negative impact
on your credit score. If you have student loans, make payments on time.
Keep balances on credit cards low� Some people try not to spend more than 30% of their
available credit.
Don’t close unused credit cards� The age of your credit history may affect your credit score.
Don’t open new credit cards that you don’t need� One good way to avoid overusing credit
cards is to limit the number of credit cards you have.
Avoid opening multiple new accounts at one time, as this will decrease your average account
age and may increase the number of inquiries on your credit report.
BUILDING CREDIT IF YOU HAVE NO CREDIT
48
CREDIT SCOREIt is important to remember that it is easier to damage a good credit score than it is to
improve a poor score. Keep on doing what you are doing to keep your credit score high. But
here are a few helpful reminders:
■■ Keep balances on credit cards below 30% of the total credit offered to you�
■■ Pay your bills on time�
■■ Don’t open new credit cards that you don’t need�
■■ Canceling cards will change the length of your credit history as well as change your
credit utilization amount�
■■ Checking your credit report is free once per year, so be skeptical of companies that are
trying to make you pay for your credit report� Go to www�annualcreditreport�com for a
free credit report�
■■ Check your credit report for inaccuracies� Some people have a mistake on their report�
■■ It’s ok to check your credit report� It should not affect your credit score�
■■ Use credit cards responsibly� Make on-time monthly payments and stay within 30% of
your credit utilization�
■■ Closing an account does not make it go away� It may show up on your credit report as a
closed account and may affect the length of your credit history�
WHAT CAN I DO IF I HAVE GOOD CREDIT?
USEFUL CREDIT TIPS FOR EVERYONE
50
BANKING
We have talked generally about how to manage your finances through budgeting, savings,
loan repayment options, and credit. Now we will show you the different types of accounts
available to you to help manage your finances.
OPENING A CHECKING ACCOUNT
To open a checking account, most banks will verify your previous checking account history
along with your credit. If both are good, the bank may allow you to open a checking account.
If you’ve had many overdrafts or bad credit, you may be denied an account.
When opening an account, think about how you want to manage it� Will you use a debit card,
write checks or use online banking services? Are the bank’s ATMs in a convenient location?
Ask the bank if they have minimum balance requirements to avoid a fee� After telling the
bank how you will use your account, you can determine which account offers you the most
services for the lowest monthly price. Each bank has different pros and cons. Compare large
banks, local banks, and credit unions to find the institution that works best for you.
HOW TO MANAGE AN ACCOUNT
Managing your account is very important. Many banks offer secure apps and websites for
your account that can help you see at a glance from your smart phone exactly where you
stand. You can also request paper statements.
OVERDRAFT FEES AND PROTECTION
An overdraft is when you don’t have enough money in your account to cover a transaction.
Your bank will charge you a fee each time this happens, which can be over $30 per overdraft.
In some cases, you can avoid this by telling your bank to pull from your savings account if
your checking account doesn’t have enough money. You can also tell the bank to reject your
card if you don’t have enough money for a transaction. Some banks may charge a fee for
these services. This is sometimes referred to as “overdraft protection.”
THE BASICS OF BANKING
51
BANKING
Make sure you talk to your bank about your overdraft options and ask whether or not there
are fees associated with these options. Banks are accustomed to answering these questions
and are there to help you.
DEBIT CARDS
■■ Debit cards are tied directly to your checking account. When you buy something with a
debit card, the funds are pulled directly from your checking account.
■■ Some merchants may charge a fee for using a debit card.
■■ Debit cards do not accrue interest.
CHECKS
■■ A check offers access to your account. When you write a check, the money will be
withdrawn from your account, usually within a few days.
■■ If you assume the money will come out of your account immediately, you may avoid
possible overdraft fees.
■■ If you don’t have the money in your account when the merchant cashes the check, the
merchant doesn’t get the money and you may be charged fees by both the merchant and
your bank.
THE BASICS OF BANKING CONTINUED
52
BANKING
When deciding what credit card to choose, make sure you are choosing a card that will work
best with your financial situation and spending habits.
A FEW THINGS TO CONSIDER WHEN CHOOSING A CREDIT CARD
Interest rates vary depending on the credit card. Higher interest rates will cost you more
if you leave a balance on your credit card over multiple months. This is important to
remember when deciding between credit cards.
Credit limits should be considered carefully. If you’re afraid a high credit limit might lead to
you spending more than you can afford, stick with a low credit limit.
Fees and penalties are also important to consider. Compare the fees along with other
bonuses when you are choosing a credit card. Many cards will charge a fee or penalize you
by increasing your interest rate for making a late payment, exceeding your credit limit, or
using cash advances.
Some credit cards have incentives such as travel rewards, shopping rewards, or cash back.
These can be beneficial to you depending on your spending habits, but there may be
fees, time limits or other restrictions associated with using or accessing the incentives. It is
important to consider all other aspects of a credit card before applying.
BALANCE TRANSFERS
Balance transfers are a way to transfer debt from one credit card or loan to another, typically
to reduce monthly payments or interest rates. Here are some things to keep in mind when
thinking about a balance transfer:
You usually need a good credit score to qualify�
Pay attention to the fees, some companies make money on balance transfers by charging
you fees. You should also ask if the current fees expire and the interest rate will increase
over time.
Ask about new purchases, the interest rate for those purchases may be different than the
interest rate of the transferred balance. You should also ask if you need to make payments
to a different entity for new purchases.
HOW TO CHOOSE A CREDIT CARD
53
BANKING
Best you apply for financial, it is important to know about possible scams and how to keep
your personal information secure. Here are a few points to know about scams and security.
SCAMS
Scholarships - You should never pay for scholarship money. If someone asks you to pay, it is
most likely a scam.
Consolidation & Repayment - Another free service that your servicer may offer you is
consolidation. If someone asks you to pay them to consolidate your loans or facilitate
repayment you should say no and contact your servicer.
Income-Driven Repayment Plans - If a company asks you to pay them to help you get into
an income-driven repayment plan (i.e., Pay As You Earn, Income-Contingent Repayment or
Income-Based Repayment), you should first contact your servicer. There’s no fee for an income-
driven repayment plan, but you may need to apply every year to show you continue to qualify.
Loan Forgiveness - If you think you might be eligible for student loan forgiveness, contact
your servicer. Companies that ask you to pay for the same services are a scam.
SECURITY
Never give up sensitive information - If a company you don’t recognize or someone who
doesn’t need your information asks for it, you do not need to give away your personal
information (e.g., date of birth, address, Social Security number).
How to identify scams - If someone is asking you to pay for a service you know is free, or is
asking you for sensitive information, it is best to do research and ask questions before giving
away your personal information. Companies also should not call you or email you to ask for
personal information. Even if you recognize the company, you can ask to call them back at
their official 1-800 number to verify that they are who they say they are.
Identity theft - Carrying information on you like your Social Security number can be
dangerous if it gets lost or stolen. It’s best to limit opportunities for the wrong people to get
their hands on your information.
Compromised bank accounts - Be vigilant in checking your accounts. If you notice charges
you did not make on your bank or credit card statement, be sure to report them right away.
SCAMS & SECURITY
55
STUDENT RESOURCES & TOOLS
STUDENT LOANS
■■ iGrad�com - This is the student loan entrance counseling that you used when you entered
school. You can revisit iGrad at any time to view the counseling information again.
■■ Studentloans�gov - This government website offers a different federal student loan
entrance counseling, as well as general information about student loans. Most of your
questions about federal student loans can be answered here. There is also a “Repayment
Estimator” that allows you to estimate how much you will be paying on your federal
student loans after school.
■■ NSLDS�ed�gov - You can go to this website to view your federal student loan information.
It shows the amount taken out for each loan, interest rate for each loan, and your current
servicer.
■■ Studentaid�ed�gov - You can visit this website for more information on how to prepare
for college, different types of aid available to you, how to submit the FAFSA, and federal
student loan repayment options.
■■ ECMC�org/publication/financialLiteracy�html - ECMC offers information about many
financial topics. This includes information about student loan default.
BUDGETING
■■ Mint�com
■■ Levelmoney�com
■■ BUDGT
■■ Even�me
APPLYING FOR FINANCIAL AID
■■ Fafsa�gov - Use this website to fill out your Free Application For Federal Student Aid. It is
important to be careful that you do not pay for the FAFSA.
■■ FSAID�ed�gov - Here you will be able to create your FSA ID, which you will use for your
FAFSA application.
FINANCIAL RESOURCES
56
STUDENT RESOURCES & TOOLS
FINANCIAL RESOURCES CONTINUED*
*The inclusion of any websites or references to other companies does not imply a recommendation or endorsement of the views expressed within those websites or by those companies
57
STUDENT RESOURCES & TOOLS
The FSA ID is a username and password that has replaced the Federal Student Aid PIN and
used to log into FAFSA�gov, studentloans�gov, NSLDS�gov, and studentaid�gov� Your FSA ID
confirms your identity when you access your financial aid information and electronically sign
Federal Student Aid documents. Instructions to create your FSA ID is as follows:
(1) Go to fsaid.ed.gov and click “Create an FSA ID.”
(2) Fill in an email, username/password and click “Continue.” You will be asked to verify
your email later on in the process, so it’s important that you have easy access to this email
account. Also be sure to make sure your password matches the requirements, otherwise it
will not be accepted.
(3) On the next page, enter your Social Security number, date of birth, and name. When
you are finished, click “Continue.”
CREATING AN FSA ID
58
STUDENT RESOURCES & TOOLS
(4) This page you will complete your profile with some more information about yourself.
When you are finished inputting your information, click “Continue.”
(5) You will now need to enter a few security questions in case you ever forget your
username or password. One suggestion is to make your answers something that will never
change (e.g., the city in which you were born).
(6) The next page you will review your information and accept the terms and conditions.
When you are finished confirming your information, check the box that says “I certify that
the above information is correct & accept the terms and conditions” and click “Continue.
(7) You will now be asked to verify your email address. Check the email that you used at
the beginning of the process and find the security code. Once you have the security code,
go back to the FSA ID website and enter the code, then click “Continue.”
(8) Congratulations! You have now created your FSA ID and will be able to access
information on FAFSA.gov, studentloans.gov, NSLDS.gov, and studentaid.gov.
CREATING AN FSA ID
59
STUDENT RESOURCES & TOOLS
The IRS Data Retrieval Tool allows students and parents to access IRS tax return information,
which is needed to complete the FAFSA, and transfer the data directly into their FAFSA. You
have the option to use this tool at the start of the financial information section of the FAFSA�
You should be able to use the IRS Data Retrieval tool 2–3 weeks after the date you filed your
taxes. If you choose a paper filing, you should be able to use it 8–11 weeks after the date you
mailed in your taxes.
If you have already started your FAFSA, you are still able to use the IRS Data Retrieval Tool by
following these instructions:
(1) Go to www.fafsa.gov, click “Login,” enter your FSA Username/Password & click “Next.”
(2) Click “Make FAFSA Corrections” and then create a Save Key and click “Next.”
(3) Click on the “Financial Information” tab. Select “Already Completed” for the tax
return filing status and answer the eligibility questions.
(4) Click on the “LINK TO IRS” button. Then click “OK” to go to the IRS Data Retrieval
Tool website and Click “OK” to accept the IRS Data Retrieval Tool terms of use.
(5) Enter the requested information and click “Submit.” Remember to enter your address
exactly as it appeared when you filed your taxes.
(6) Review the information that the IRS has retrieved from your tax returns. Check the
box to “Transfer My Tax Information into the FAFSA” and click “Transfer Now.” Your IRS
data will be transferred to your FAFSA and you will be returned to the FAFSA website.
(7) Do not update any answers that say “Transferred from the IRS” or your school may
require additional documentation. Answer the additional questions and click “Next.”
(8) Continue to the “Sign & Submit” tab. Follow all of the instructions carefully to submit
your FAFSA correction. Be sure to print or save the confirmation page for your records.
IRS DATA RETRIEVAL TOOL
60
STUDENT RESOURCES & TOOLS
Direct PLUS Loans are available to the parents of undergraduate students, if they qualify,
to help pay for educational expenses up to the cost of attendance minus all other financial
assistance. To get started with an application, follow these instructions:
(1) The student and parent must fill out the FAFSA together. Instructions for the FAFSA can
be found on page 25.
(2) Once both the parent and student have completed the FAFSA, go to
www.studentloans.gov and log in with the parent’s FSA ID.
(3) Click the “Apply for a PLUS Loan” option. Follow the instructions to complete the
application.
(4) The parent that completes the PLUS Loan application will also need to complete a
Master Promissory Note, which is also completed on www.studentloans.gov. The parent will
need the following information to complete the Master Promissory Note:
■■ Social Security number
■■ Two personal references
■■ Driver’s license
APPLYING FOR A PARENT PLUS LOAN
61
STUDENT RESOURCES & TOOLS
You can seek financial assistance through other sources, such as private loans, employer
reimbursement, veteran assistance, community groups and private organizations that offer
scholarships and special awards. Ask your Student Finance Planner for more information.
Corporate reimbursement programs offered by employers sometimes offer tuition
reimbursement assistance. Employed students may be eligible for tuition reimbursement
through their employer’s benefits program. Reimbursement amounts vary and are made
directly to the student after a tuition invoice or receipt and an official passing grade card have
been provided to his or her employer. In turn, the student may use his or her reimbursement
checks to make cash contributions and pay off loans related to educational expenses.
The Division of Vocational Rehabilitation provides services and financial assistance to
students with certain disabilities. To learn more, contact your local Division of Vocational
Rehabilitation office.
Through the Workforce Investment Act, the Department of Labor may provide services and
financial assistance to individuals who are participating in their training programs. To find out
more, contact your local Department of Labor office.
Many states provide grants and scholarship programs to promote postsecondary education.
To find out which grants and scholarships are available, speak with your Student Finance
Planner.
Community organization funds are another good source for financial assistance. Many
charities and community, civic, and religious organizations offer grant and scholarship
opportunities that can help finance your education if you meet eligibility requirements. Be sure
to inquire with these types of organizations to find out if you qualify.
Private organizations can help you seek financial support through donations and scholarships.
These organizations include private clubs, business and ethnic organizations. You can also ask
parents, relatives and friends to help support your education.
OTHER SOURCES OF FINANCIAL ASSISTANCE
62
STUDENT RESOURCES & TOOLS
Military Educational Benefits are also available. If you are a veteran, service member,
reservist, military spouse/dependent or otherwise eligible, you may qualify for various veteran
and military educational benefit programs. Eligibility criteria for military educational assistance
and benefits available vary by state and school, so check with the Veterans Administration
(VA) or Department of Defense (DOD) to see whether you qualify.
If you are receiving VA or Military benefits, you may be required to select one of the school’s
primary financing options (e.g., financial aid, cash) to cover your educational costs and related
expenses. All payments must be made in accordance with the school’s financial policies and
procedures.
The VA and DOD offer several educational assistance programs to veterans or service member
on active duty. Examples of military benefit programs available include:
■■ Post 9/11 GI Bill
■■ Yellow Ribbon
■■ Montgomery GI Bill
■■ Montgomery GI Bill - Selected Reserve (MGIB-SR)
■■ Reserve Educational Assistance Program (REAP)
■■ Veterans Educational Assistance Program (VEAP)
■■ Survivors’ and Dependents’ Educational Assistance Program (DEA)
■■ Vocational Rehabilitation (Chapter 31)
■■ MyCAA
If you have any questions, visit www.gibill.va.gov or call 1-888-GIBILL-1 (1-888-422-4551).
MILITARY FINANCIAL ASSISTANCE
63
STUDENT RESOURCES & TOOLS
Your eligibility for federal financial aid is determined through your FAFSA application. The
FAFSA asks you questions that will determine your eligibility and dependency status. If you
are considered a dependent, you will be asked to provide your parents’ information as well.
Federal eligibility requirements include:
■■ Being a U.S. citizen, a permanent resident or in the United States for more than temporary
purposes. Acceptable visas include the I-551, I-151, or I-94 if it is stamped “refugee,”
“indefinite parole,” “humanitarian parole,” “Cuban-Haitian entrance” or “asylum
granted.” If you have another visa type, the Student Finance office will help you determine
whether you are eligible.
■■ Being enrolled in an eligible program.
■■ Being in attendance at least half time (for certain programs).
■■ Not owing a refund on a federal grant or being in default on a federal educational loan.
■■ Having a valid Social Security number.
■■ Making satisfactory academic progress (see the school catalog for the definition of
satisfactory academic progress).
■■ Being registered for the draft with the Selective Service, if you are a male who is at least 18
years old and born after December 31, 1959.
■■ Not being currently enrolled in high school.
■■ Not having a previously received bachelor’s degree (applies to Federal Supplemental
Educational Opportunity Grant [FSEOG] and Federal Pell programs).
■■ Effective July 1, 2012, you must have a high school diploma; the recognized equivalent
of a high school diploma, such as a general educational development (GED) certificate; or
have completed home schooling at the secondary level as defined by state law.
FEDERAL FINANCIAL AID ELIGIBILITY
64
STUDENT RESOURCES & TOOLS
You will be notified of your financial aid award through an “award letter” that explains the
amount that will be credited toward your tuition and when this amount will be paid.
HOW WILL YOUR FEDERAL FINANCIAL AID FUNDS WILL BE CREDITED?
■■ FSEOG and Federal Pell Programs will be credited directly to your account.
■■ Federal Work Study will be paid directly to you on a biweekly basis, based on the number
of hours worked.
■■ Federal Stafford, Federal PLUS and Perkins loan funds are applied directly to the account,
and you will be notified when each payment is made.
NOTE: Your school may participate in Electronic Fund Transfer (EFT) for direct loan receipts.
HOW TO FIND ADDITIONAL INFORMATION ABOUT FINANCIAL AID?
■■ Funding Education Beyond High School, which can be downloaded from studentaid.ed.gov
■■ The Enrollment Agreement
■■ The school catalog
■■ Federal Student Aid Information Center: 1-800-4-FED-AID (1-800-433-3243)
■■ Department of Education websites
■■ www.studentaid.ed.gov
■■ www.fafsa.ed.gov
■■ www.pin.ed.gov
■■ www.studentloans.gov
FEDERAL FINANCIAL AID INFORMATION
65
STUDENT RESOURCES & TOOLS
Your eligibility is determined through your FAFSA application. The FAFSA asks you questions
that will determine your eligibility and dependency status. If you are considered a dependent,
you will be asked to provide your parents’ information as well.
Federal eligibility requirements include:
■■ Being a U.S. Citizen, a permanent resident or in the United States for more than temporary
purposes. Acceptable visas include the I-551, I-151, or I-94 if it is stamped “refugee,”
“indefinite parole,” “humanitarian parole,” “Cuban-Haitian entrance” or “asylum
granted.” If you have another visa type, the Student Finance office will help you determine
whether you are eligible.
■■ Being enrolled in an eligible program.
■■ Being in attendance at least half time (for certain programs).
■■ Not owing a refund on a federal grant or being in default on a federal educational loan.
■■ Having a valid Social Security Number.
■■ Making satisfactory academic progress (see the school catalog for the definition of
satisfactory progress).
■■ Being registered for the draft with the Selective Service, if you are a male who is at least 18
years old and born after December 31, 1959.
■■ Not being currently enrolled in high school.
■■ Not having a previously received bachelor’s degree (applies to Federal Supplemental
Educational Opportunity Grant [FSEOG] and Federal Pell programs).
■■ Effective July 1, 2012, you must have a high school diploma; the recognized equivalent
of a high school diploma, such as a general educational development (GED) certificate; or
have completed home schooling at the secondary level as defined by state law.
FINANCIAL AID ELIGIBILITY
66
STUDENT RESOURCES & TOOLS
Q: What is Financial Aid?
A: Financial aid refers to any funds available to you and/or your parents to help offset the
cost of higher education. These funds can come from private, government, or institutional
resources.
Q: Who should apply for financial aid?
A: You should apply for financial aid if you need assistance with the cost of higher
education. You are eligible to apply regardless of your income level. Financial aid is available
for those who qualify.
Q: What is the FAFSA (Free Application for Federal Student Aid)?
A: The FAFSA is the application you must complete if you wish to apply for federal financial
aid. This application can be accessed online using this link: www.fafsa.ed.gov.
Q: What is the verification process, and why do I have to complete it?
A: Verification is the process the school follows to confirm the accuracy of the information
you reported on your FAFSA. If your application is selected for verification, the school will
contact you to request additional information.
Q: My parents are not helping me pay for school� Am I considered an independent student?
A: Even if your parents do not contribute money toward your education, you may still
be considered a dependent. Please meet with you Student Finance Planner for more
information.
Q: Is there anything I have to do to keep getting financial aid when I’m a student?
A: You must make satisfactory academic progress in your program of study in order to
receive and maintain your eligibility for financial aid. You may need to apply for financial aid
each year, including completing the FAFSA annually. Please refer to your school catalog for
more information.
FREQUENTLY ASKED QUESTIONS
67
STUDENT RESOURCES & TOOLS
Q: Where am I going to get most of my funds to pay for school?
A: Your primary financing option is used to pay for the majority of your program costs. If
your program costs are not covered 100% by your primary option, then you must choose a
secondary (or alternative) option to cover the remaining balance.
Q: What other options do I have to pay for school?
A: Your company might help you pay for your education. You may also qualify for military
education benefits. In addition, local, community and private organizations may offer
assistance, scholarships or grants. See your Student Finance Planner for more information.
Q: Who do I contact if I change my address or telephone number?
A: First, you should notify your school in writing within 10 days of any changes. If you have
any loans, you should then notify your lender(s).
Feel free to contact your Student Finance Planner if you have any further questions. They are
here to help you succeed!
FREQUENTLY ASKED QUESTIONS
68
STUDENT RESOURCES & TOOLS
Your loan servicer is the company that manages your loans. This is the company to which you
will make payments when repayment begins. Be sure to mark your servicer below when you
find out who it is. The servicers below only apply to federal student loans.
Aspire Resources Inc�
http://www.aspireresourcesinc.com 1-855-475-3335
Cornerstone
https://www.mycornerstoneloan.org 1-800-663-1662
ESA/EDI Financial
https://www.edfinancial.com/home 1-855-337-6884
FedLoan Servicing (PHEAA)
http://www.myfedloan.org 1-800-699-2908
Granite State – GSMR
http://www.gsmr.org 1-888-556-0022
Great Lakes Educational Loan Services, Inc�
https://www.mygreatlakes.org 1-800-236-4300
MOHELA
https://www.mohela.com 1-888-866-4352
Navient
http://www.navient.com 1-800-722-1300
Nelnet
http://www.nelnet.com/home.aspx 1-888-486-4722
OSLA Servicing
http://www.osla.org 1-866-264-9762
VSAC Federal Loans
http://www.vsacfl.org 1-888-932-5626
Note: Your loan servicer is determined at the point when your loan amount is disbursed. Your loan amount is considered disbursed when your school transfers your loan money to your school account, gives money to you directly, or a combination of both.
LOAN SERVICER CONTACT INFORMATION
68
70
GLOSSARY
Annual Percentage Rate (APR) - The yearly cost of a loan, including interest and fees,
expressed as a percentage. To determine your APR, take the periodic rate and multiply it by
the number of billing periods in a year.
Checking Account - A common way to pay your bills. When you write a check, use a debit
card or authorize a transfer of funds, that money is deducted from your checking account.
Consolidation - Combining multiple student federal loans into a new loan with a single monthly
payment. The interest rate of the consolidation loan is fixed.
Consumer Credit Report - A visual summary of how you handle credit.
Credit Bureau/Credit Reporting Agency - A credit bureau is a national consumer reporting
agency. These agencies collect and sell information about how people handle credit. They also
issue credit reports that list how individuals manage their debts and make payments, how much
untapped credit they have available and whether they’ve applied for any loans. The reports are
made available to creditors and others with a legitimate business need for the information.
Credit Score - A number generated by a formula using information in your consumer credit
report to indicate your overall credit on a scale from 350 (poor) to 850 (excellent).
Debit - A purchase authorized by you in which a retailer uses money electronically withdrawn
from your checking account as payment for goods and services. You initiate the purchase by
using your debit card, generally tied to your checking account.
Default - Failure to make scheduled loan payments or failure to honor the other terms of your
loan agreement. Defaults may be reported to national consumer reporting agencies.
Deferment - An authorized postponement of student loan repayment in situations where
borrowers meet certain requirements. During deferment, borrowers don’t make principal
payments on their loans. For some federal student loans, the government may pay the interest
during deferment.
Delinquency - When loan payments are late or unpaid. After 270 days of non-payment,
delinquent federal student loans become defaulted loans.
Entrance Counseling - A mandatory information session that takes place before you receive
your first federal student loan that explains your rights and responsibilities as a federal student
loan borrower.
GLOSSARY
71
GLOSSARY
Exit Counseling - A mandatory information session that takes place when you graduate,
withdraw from school or attend school less than half-time that explains your loan repayment
responsibilities and when repayment begins.
Federal PLUS Loans - An education loan from the federal government for parents of
dependent undergraduate students and for eligible graduate or professional students. Interest
begins to accrue when the loan is disbursed and continues to accrue until the loan is paid off.
Federal Direct Loan - An education loan from the federal government for eligible
undergraduate, graduate and professional students.
Fee - Costs to you as part of doing business with a company. Fees may be charged to you for
processing a transaction or as a penalty if you handle your account improperly.
Forbearance - The temporary postponement of loan payments that is typically granted at
the discretion of the lender/servicer if you don’t qualify for deferment. Interest continues to
accrue during the forbearance period and you’re responsible for paying the accrued interest.
Grace Period - A period of time, prior to repayment, when payments are not required. The
grace period—typically six consecutive months for federal Stafford loans— begins after
dropping below half-time enrollment, graduating or withdrawing.
Grant - Financial aid, often based on financial need, that does not need to be repaid.
Interest - A fee charged by the lender to borrow money and applied on a daily or monthly
basis.
Master Promissory - A legally binding contract between a lender and a borrower, that
contains the terms and conditions of the loan. An MPN is a multi-year document that
generally allows you to borrow additional student loans without needing to sign a new
promissory note.
Principal - A sum of money owed (a loan), on which interest is charged.
Scholarship - Aid money that does not have to be paid back, similar to a grant. Can be
awarded based on merit, need or for meeting certain criteria.
Variable Interest - An interest rate that changes according to the underlying interest rate
index, such as a Treasury Bill or prime rate.
GLOSSARY CONTINUED
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