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FINANCIAL LITERACY FOR COLLEGE SUCCESS Why It Matters To You

Financial Literacy for College Success

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This self-paced course is designed to provide you with a basic understanding of personal financial management to help you meet life's challenges and opportunities in college and in life. Major topics covered include: financial planning; budgeting; information on the various sources of financial aid; credit use; standards of progress for financial aid eligibility; affording the loan debt that you have borrowed; using your maximum credit wisely; and retirement planning. Students will be provided with information that will enhance their knowledge and skills to assist them with making more informed decisions that are related to various practices as they pursue their education at Madison College.

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  • 1. FINANCIAL LITERACY FOR COLLEGE SUCCESS
    Why It Matters To You

2. 3. A College Education is a Smart Investment
Source: US Census Bureau, 2008 data income is based on national average
4. What Is Financial Literacy?
Ability to understand and make informed judgments and to take effective actions regarding the current and future use and management of your money, including:
Buying choices
Life issues such as housing, unemployment, medical care, groceries, children, etc.
Living with a Debt-Free mentality
5. WHAT YOU NEED TO KNOW
TO BE FINANCIALLY LITERATE
6. What You Need To Know
Importance of Managing Your Money
Tracking Your Expenses
Creating a Budget
Understanding Financial Aid
Credit Card Basics
Loan Interest & Repayment Calculating
Managing your Credit
Identity Theft
Accessing Resources on and off campus
7. SURVEY SAYS
8. Statistics show
76% of college students wish they had more help preparing for their financial future.
Hartford Financial Services Group, 2007.
Only 59% of 18-29 year olds pay their bills on time every month.
National Foundation for Credit Counseling and MSN Money, 2008.
63% of Americans acknowledge they dont save enough, and 36% say they spend more than they can afford.
Pew Research Center, 2006.
9. COLLEGE COSTS MONEY
10. How to Begin Building a Solid Financial Foundation
Ask yourself these questions:
What money issues have you and your family experienced?
Why do you experience money issues?
What messages have you received about money and spending?
Do you have a plan for how you are going to cover the cost of your education and living expenses?
11. Do you have
Poor Financial Literacy?
Smart Financial Literacy?
Spends money carelessly
Borrows excessively
Does not save money
Has bad credit and high interest payments
Follows a budget
Limits debt (has a zero debt goal)
Pays bills on time
Effectively manages credit
12. Budgeting 101
Track your spending habits
Calculate your income
Indentify your expenses
Set goals
Make a budget and stick to it
You can find resources for all of these steps at the Great Lakes website.
13. Where is your IncomeComing From?
In order to spend money, you need to have it.
14. Where is all ofyour money going?
Track all expenses
Regular monthly expenses
Novelty items
Consider the unexpected
Car repairs, fuel price increases, health care costs
Financial Planning Tips
15. Establish Financial Goals
Short Term
Buy a car
Buy a new computer
Buy new furniture
Be debt free
Pay monthly bills on time
Long Term
Buy a home
Start a business
Start a family
College tuition for children
Pay off student loans
Retirement
16. Define Needs vs. Wants
Needs are fixed expenses necessities for everyday living & goal attainment.
Rent/Mortgage
Utilities
Food
Clothing
Transportation
Taxes
Health Care
Child Care, etc.
Wants are variable expenses things that are nice to have & gratify some desire or urge.
Entertainment
Cable/Satellite
Internet Service
Magazines
Eating Out
Cell Phone
Hobbies/Sports
17. What You Need to Know
18. Ways to Pay for College
Most students cover the cost of college through a combination of the following resources:
Personal Savings
Employment
Parent/Family Financial Support
Gifted Financial Support
Federal Student Aid Student Loans
Grants
Work Study
Scholarships
Visit CollegeBoard.com for help understanding your options.
19. What Is Financial Aid?
20. How to Complete the FAFSA
21. Financial Readiness Checklist
Before the semester begins, make sure you have the following in place:
A budget for monthly expenses (i.e. rent, food, utilities, transportation, and insurance)
Secure housing
At least $750.00 to cover books and supplies
Employment (Fulltime students should work no more than 20 hours a week)
Childcare arrangements (at least three backups)
22. The Cost of Loans
Source: 2007-08 National Postsecondary Student Aid Study
23. Borrow Only What You Need
Financial Fact 1:
Getting an education is expensive
Financial Fact 2:
Know what youre financing - estimate your income in your chosen career
Financial Fact 3:
Whatever you borrow, you have to pay back
Financial Fact 4:
Your credit history stays with you for a very long time
24. Stay on Top of Student Loan Obligations
Subsidized Loans
Federal government pays the interest until the student enters repayment.
When the borrower has been granted a deferment, the government pays the interest during the deferment period.
Unsubsidized loans
Student is responsible for paying the interest that accrues on the loan from the date of disbursement until the loan is paid in full, regardless of enrollment status.
Financial Aid Loan Calculator
25. Pay Down Student Loans
Pay Extra and Save
An extra $50 a month
Pay off loan 3 years faster
Save $2,231 in interest
An extra $250 a month
Pay off loan 6 years faster
Save $4,892 in interest
An extra $500 a month
Pay off loan 8 years faster
Save $5,762 in interest
Student Loan
$15,000 borrowed
10 year term
8.25% interest rate
Monthly payment: $184
Total interest paid: $7,077
26. Standards of Progress
Satisfactory Academic Progress (SAP): To maintain financial aid eligibility, students must meet all of the following criteria:
Be admitted into an associate degree or a one or two year technical diploma program;
Be enrolled in financial aid eligible courses (course catalog numbers beginning with 10, 20, 31 or 32);
Achieve and maintain a cumulative GPA of 2.0 or higher*; and
Complete at least 67% of the total credits enrolled in each term*.
*Evaluated even if financial aid not receive while enrolled.
27. Duration of Financial Aid Eligibility
The maximum time frame in which students must complete their educational program cannot exceed 150% of the number of credits required to complete their degree program. This time frame is based on total credits attempted, even if financial aid was not received while enrolled, and includes all classes students have:
Taken at Madison College and any other college/university
Repeated or failed
Been issued an incomplete for or withdrawn from
Not dropped prior to the class start date
28. Date of Record
The payment of financial aid is based on enrollment as of 5 p.m. on the Date of Record for each semester.
Classes added after 5 p.m. on the Date of Record will not increase financial aid eligibility. Payment of classes added thereafter is the student's responsibility.
If classes are dropped after 5 p.m. on the Date of Record and enrollment decreases to less than 6 credits, state grants and loans will not be disbursed. If funding has already disbursed, repayment will be required for some or all financial aid received.
29. Suspension of Financial Aid
Academic progress is evaluated after each semester. Students will receive either a warning letter (W) or suspension letter (S):
*Students may be required to repay some or all financial aid received.
30. Complete the Academic Fitness Program for Financial Aid Reinstatement
31. Credit Card Management
32. Undergraduate Studentsand Credit CardsSallie Maes National Study of Usage Rates and Trends 2009
33. How Undergraduate Students Use Credit CardsSallie Maes National Study of Usage Rates and Trends 2009
34. How Undergraduate Students Use Credit CardsSallie Maes National Study of Usage Rates and Trends 2009
35. Undergraduate Students &Payment BehaviorSallie Maes National Study of Usage Rates and Trends 2009
36. Its Hard to Get Out
Credit Card Scenario #2
You charge $2,500
You pay $100 per month
Yearly interest rate is 19.9%
How long will it taketo pay off?
Credit Card Scenario #1
You charge $2,500
You pay $50 per month
Yearly interest rate is 19.9%
How long will it taketo pay off?
9 years 1 month
2 years 9 months
37. How Do I Lose Good Credit?
Making late payments.
Exceeding the credit limit on your credit card.
Writing bad checks.
Defaulting on a loan.
Filing for bankruptcy.
Identity Theft (learn how to safeguard yourself)
Credit Card Smarts
38. What Happens If I HaveBad Credit?
You may not be able to rent an apartment
You wont be able to buy a house
You may not be able to purchase or lease a car
You may not be able to obtain other forms of credit
If you are able to get credit, you will pay very high interest rates
You can be turned down for a job
Its like getting a bad grade it stays on your permanent record
Credit History and School
39. How Do I Access My Credit Report?
Once a year you may receive a free copy of your credit report from each of the three major credit reporting agencies:
Equifax
TransUnion
Experian
You may also dispute any inaccuracies you find
Request Annual Credit Report
Keeping on Top of Your Credit Report
40. Feeling Overwhelmed?
Ask for help
Call at the first sign of trouble
Denial of credit
Credit cards that are maxed out
Borrowing money to pay bills
Paying only the minimum
Contact your student loan provider
Work out a plan to repay
Contact a Consumer Credit Counselor
41. Its Your Choice..
OR
42. Access Campus Support Services Online
43. Resources
Budgeting
Determining Current Student Loan Debt
Calculating Repayment of Student Loan Debt
Your Federal Student Loans: Learn the Basics to Manage Your Debt
Madison College Financial Aid Office
(608) 246-6170 or [email protected]
44. Resources Continued
Basics about Financial Education
Pathways to Career Success
Financial Aid & Scholarship Wizard
Scholarship Search
45. MyMadisonCollege
Do you know about all the things you can do in your student center?
Check your enrollment date to find out when you can start registering for classes
Register for classes
View your grades and class schedule
Pay your tuition
Order a parking permit
46. MyMadisonCollege Contd
Access your Financial Aid status & to-do list
View & accept, reduce or decline your Financial Aid awards
Check your degree progress & print Enrollment Verifications and Unofficial Transcripts
47. Complete the Quiz
You must print out your quiz results and bring them to your Counselor appointment if you are in the Academic Fitness Program.