Download Live Life Smart Guide PDF

Live Life Smart Guide
Name: Live Life Smart Guide
Pages: 38
Year: 2016
Language: English
File Size: 881 KB
Downloads: 0
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Table Of Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Life of a Student Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Financial Literacy Managing Your Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Set Your Financial Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Budget Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Strategies to Save Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Credit Card Tips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 How to Avoid Identity Theft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Loan Repayment Federal Student Loan Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 10 Things You Should Know About Student Loans ............................................ 15Student Loan Repayment Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Inc ome Driven Repayment Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 L oan Repayment Estimate s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 St udent Loan Terms to Know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Default Management How to Avoid Delinquency and Default on Your Student Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tr ouble Making Payments? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fo ur Easy Ways to Avoid Delinquency or Default on Your Student Loans . . . . . . . . . . . . . . . . . . . Leaving SchoolGet Ready for Repayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Se rvicer Contact Info . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ent rance Counseling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exi t Counseling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING


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Introduction Congratulations on your decision to pursue a higher education! Upon completion, this can signi cantly boost your earning potential. To help you build a healthy nancial future, we want to provide any information we can to balance your educational goals with good borrowing decisions. In combination, this guide and careful nancial planning can help you set up your nances for success. When you borrow federal student loans, you have six months (a loan"s grace period) from the time you graduate or drop below half time student status until you are required to start making payments (repayment). Nelnet is one of the federal student loan servicers who may process your student loan payments and answer your questions on behalf of the U.S. Department of Education. Our years of experience in the student loan and nancial industries have given us a wealth of knowledge that we want to share with you to help you be in the best possible nancial position. How to Live Life Smart: Use this document to learn how to set a budget, pick a repayment plan, and more. If Nelnet is one of your servicers, create or log in to your Nelnet.com account to update your contact information and view ac count information including due dates, payment amounts, and repayment options. Review your Repayment Schedule that will be available in your Nelnet.com account after the third month of your loan's grace period (this is not a bill; it contains details about your federal student loans). Get the details on all of your federal student loans online through the U.S. Department of Education's National Student Loan Data System (NSLDS) at NSLDS.ed.gov. Review your monthly student loan billing statements. If Nelnet is one of your servicers, your Nelnet monthly billing statement is sent about three weeks before your payment is due. You can choose to receive electronic or paper statements at Nelnet.com.Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. 3 EDUCATION LOAN SERVICING


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GRANT GRANT $ $ FAFSA.GOV BD A C LOAN SERVICERS The Life of a Student Loan This may be your rst time lling out the FAFSA TM and terms like "loan servicer" may be new to you. Don't stress, here's a chart that explains the process of student loans, scholarships, and repayment. STEP 1: PLANNING FOR SCHOOL If, in addition to scholarships and grants, you need federal student aid to help pay for college, you will have to ll out the Free Application for Federal Student Aid (FAFSA) at FASFA.gov.STEP 2: THE AWARDING PROCESS Based on your FAFSA, your school"s nancial aid o ce will decide how much aid to award you, and the U.S. Department of Education will then disburse these funds. When funds are disbursed, they will be sent directly to your school to cover educational costs. STEP 3: WHILE YOU'RE IN SCHOOL If federal student loans are part of your award, the Department of Education will assign your loans to a student loan servicer after they ar e disbursed. Loan servicers help you manage your student loans from disbursement to payo?. To learn more about the life of your loans, visit Nelnet.com/Stages Of A Student Loan. STEP 4: AFTER SCHOOL AND BEYOND When you graduate or drop below a half time enrollment status, you are not required to make payments on your federal student loans for six months. However, you can choose to start paying down your loans early. This will save you money in the long run. Throughout your repayment period, your student loan servicer will help you choose the repayment plan that's right for you. Whether you have questions about your loans or are struggling to make payments, let your servicer know we're here to help!Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING 4


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Managing Your Money: Nine Tips to Achieving Financial Wellness 1.Know W here Your Money Goes Be aware of how you are spending your money. A $5 cup of co?ee five days a week costs you $100/month. Review items you spend your money on to find areas where cutting back can grow your savings account. 2.Dev elop a Budget Plan for your spending by developing a budget and live within your means based on your monthly income. Make adjustments to remain within your budget, and don't use a credit card to cover a shortfall or unnecessary purchases. 3.Include Savings in Your Budget Pay yourself ?rst. Treat your savings account like any other monthly bill by making a monthly payment toward it. 4.Plan for Major Pur chases Adjust your budget accordingly to build savings for your next major purchase without using credit. 5.Sav e for Emergencies A good plan is to have a minimum of six months salary available in your savings account. While this goal will take time to achieve, it is important to strive for it so you're prepared for most unexpected emergencies. 6.Plan for R etirement Take advantage of interest and market upturns by saving for retirement early. Often your employer will help you save for retirement with a 401(k) plan. You can also bene?t from pre tax contributions using this method of retirement savings. 7.Get Tax A dvice If you have circumstances that create tax dilemmas (i.e., self employed, own and/or lease property, etc.), make sure to seek tax advice from a professional for the best outcome. 8.Prot ect Your Credit You have the right to pull a free credit report from each credit reporting agency once per year at AnnualCreditReport.com. Keep in mind that late payments will adversely impact your credit, as will a failure to pay. You should immediately report any credit issues or discrepancies to the credit reporting agency. Use your credit wisely and ensure your reports are accurate. 9.Keep Good Financial R ecords Use online tools as well as paper copies of receipts to keep records of your pay stubs, banking information, taxes, insurance, and other documents important to your ?nancial situation.Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING 6


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Set Your Financial Goals Healthy nancial habits start by setting sound nancial goals. Develop a realistic path to achieving your goals by lling in the chart below. General Information Monthly Household Net (After Taxes) Income: Number of Dependents: Monthly Necessary Expenses: Your Age: Amount Remaining to Save for Goals: Expected Graduation Date: Identify goals, cost, timeline, savings method, and anticipated rate of return. Set your goalsGoal #1:Goal #2:Goal #3: Total cost of each goal Current funds available Time needed to achieve each goal Monthly contribution to achieve goal Funding source for monthly contribution Method for saving/investing for goal Expected interest rate/rate of return There could be risks that might keep you from reaching your goals. In many cases, insurance can help protect against these risks. Risks: Identify risks below that could keep you from reaching your goals and then check the boxes for any insurance you have that can protect you from each risk. Type of Insurance With Monthly Cost Life $Health$Disability$Auto$Home/Renters$$Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING 7


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Budget Worksheet It"s easy to prepare a budget. Common categories are included in this worksheet just ll in the amount you typically spend in the Budget column. Use the Actual column to record spending to see if your budget is on target or needs to be adjusted. Check your billing statements and receipts for the most accurate numbers. Monthly ExpensesBudgetActual Deductions Savings (to be set aside)$$ Child Support/Alimony$$ Other:$$ Housing Rent/Mortgage Payment$$ Utilities (e.g. Gas, Water, Electric)$$ Home Insurance and Taxes$$ Home Owner"s Association Fees$$ Cable/Satellite/Streaming Service$$ Internet$$ Phone$$ Other:$$ Debt Payment Credit Card Payments$$ Student Loans$$ Other:$$ Food Groceries$$ Dining Out/Fast Food$$ Campus Meal Plan$$ Other:$$ Transportation Car Payment$$ License and Registration$$ Gas/Oil$$ Normal Car Maintenance$$ Public Transit, Parking, Toll$$ Other:$$ Family Day Care/Babysitting$$ Activities/Lessons$$ Pet Sitting$$ Other:$$ Monthly ExpensesBudgetActual Personal and Health Clothing$$ Personal/Care Products$$ Haircuts$$ Monthly Dues/Fees$$ Insurance (Health, Life)$$ Doctor/Dentist Visits$$ Prescriptions/OTC Drugs$$ Laundry/Dry Cleaning$$ Other:$$ Education Tuition$$ Books/Fees$$ Supplies$$ Other:$$ Entertainment Concerts/Movies$$ Sporting Events$$ Sports/Recreation Equipment$$ Music, Streaming Services, Video Games$$ Other:$$ Miscellaneous/Unexpected Gifts/Charity$$ Pet Supplies/Vet$$ Tra c Ticket$$ Car Repair$$ Home Repair/Improvement$$ Entertaining Guests$$ Other:$$ Monthly Net Income$$ = Monthly Spendable Income$$ Total Expenses (from above)$$Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING 8


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Strategies to Save Money Housing Set your thermostat lower Unsubscribe from your cable/satellite TV service Turn o? the lights when not in use Get a roommate Live with parents or another relative Entertainment Dine out less frequently Eat early and tak e advantage of happy hours and early bird specials Split or share meals with friends Make your own lunch and bring it to work Use restaurant coupons Learn to cook your own meals Rent movies Go to the mo vie theater in the afternoon rather than in the evening Visit local libraries, museums, and parks Participate in sports Read a book or hike a trail Food Use a shopping list Use coupons Compare prices Buy in bulk Don't shop more than once a week Don't buy what you can't or won't use Transportation Use public transportation Carpool with a friend or family member Ride your bike or walk Regularly ha ve your oil changed and use coupons for auto maintenance Make sur e your tires are properly in ated Personal/Health Exercise Don't smoke Drink alcohol in moder ation Give y ourself your own manicure and/or pedicure Use coupons or tak e advantage of specials for haircuts Cancel unused club or gym memberships Buy generic and OTC medications Debt Payments St op using credit cards as a primary payment method Pa y o? the full balance on each credit card at the end of the month Miscellaneous Make a budget Consider w ants vs. needs Don't spend money to relieve stress Av oid impulse purchases such as co?ee or candy Give homemade gifts or giv e the gift of service rather than a retail itemNelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING 9


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Credit Card Tips Properly managing a credit card is a big responsibility. Credit cards can help establish and improve your credit score if they"re used properly. They can also damage your credit score and get you into serious debt if you don"t know what you"re doing. Use the tips below to make sound nancial decisions. 1.Shop Around Select a card that has the lowest interest rate and fee structure, and be sure to read the ne print. You"ll also need to know about late charges, other fees, and grace periods. Make sure you know the card"s Annual Percentage Rate (APR) and how it"s calculated. Shop around for the best deal and be wary of card o ers that seem too good to be true. 2.Limit the Number of Cards You Have One credit card should be su cient. Applying for a lot of credit at any given time can hurt your credit score and possibly make you a high credit risk. This can a ect your ability to get loans or rent an apartment. In addition, closing several credit cards at once will trigger a decrease in your overall credit score. 3.Set Your Minimum Balanc e Low This helps you control your spending habits. Spending up to your credit limit maxing out your credit card suggests you could be a credit risk since you might be likely to overspend. 4.Pa y ofi Your Balance Each Month This takes discipline, and it saves you money in the long run. If you can"t pay o the entire balance on all of your credit cards, pay o your higher interest rate cards rst, and always pay o more than the minimum balance. 5.Av oid Late Payments Late payments are bad for your credit, and a credit card company could use a single late payment as justi cation for raising your interest rate. This could cost you hundreds (or even thousands) of dollars over time. 6.Re view Your Monthly Statement Save your receipts so you can carefully compare the charges on your credit card receipts with your records to ensure an accurate monthly statement. 7.Balance W ants vs. Needs If you"ve had problems with impulse spending, don"t carry all of your credit cards with you. Consider carrying a single card for emergencies only. It also helps to think in terms of wants vs. needs when it comes to spending money with your credit card. By resisting the temptation to spend impulsively with credit cards, you can maintain a healthy credit score with little risk of getting in over your head. 8.Rec onsider Large Purchases If you are considering putting a large purchase on your credit card, put yourself through a waiting period before you actually make the purchase. Remember, a large purchase will need to be paid o sooner or later, and you want to make sure you"re paying the least amount of interest on your credit cards as possible. 9.Don't Tak e Cash Advances Beware the cash looks attractive, but interest accrues from the moment you accept the cash, and you will also be assessed transaction fees. This means a quick $20 withdrawal from an ATM using your credit card could easily cost you $30 or more. REMEMBER: You"ll lead a much happier life if you take control of your spending, instead of letting your spending take control of you.Nelnet.com | 888.486.4722 201 Nelnet, Inc. All rights reserved. Nelnet is a registered service mark o f Nelnet, Inc. EDUCATION LOAN SERVICING 10


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