Download - Managing Your Personal Finances 101
Managing Your Personal Finances 101
Facilitators: Ben Flores and Daniel Pringle
Agenda
• Comparing Student Loan Options– Stafford Loans
• Subsidized• Unsubsidized
– PLUS Loans• Parent PLUS Loan• Graduate and
– Federal Perkins Loan– Grants
• Interest Rates– Fixed– Variable
• Avoiding Debt– Techniques to Avoid Debt
Stafford Loans
Subsidized• Lower interest
rate• Interest does not
accrue during school
• 6 month grace to start repay after graduation
• Covers up to $8,500 per year or $65,000 total
Unsubsidized• Higher interest
rate• Interest accrues
during school• 6 month grace
to start repay after graduation
• Covers up to $18,500 per year or $138,500 total
*For additional information visit www.StaffordLoan.com
PLUS Loans
Federal Parent PLUS Loan• For Parents of
undergraduates• 1st payment due 60
days after final disbursement
• The maximum allowed is the amount of attendance minus any other financial assistance received
Direct PLUS Loans• For Graduates and
Professional Degree Students• 1st payment due 60 days after
final disbursement• The maximum allowed is the
amount of attendance minus any other financial assistance received
*For additional information visit www.studentaid.ed.gov
Federal Perkins Loan
• Low interest Federal student loan• School is the lender, however the loan is made
with government funds• Repayment does not begin until 9 months after
graduation• Maximum loan amount is $6000 per year, or
$40,000 total• 10 years to have loan paid in
full
Grants
• Funds that do not have to be paid back• Student need only to apply and be approved• Typically provided to students based upon a
financial need
Types of Grants:Institutional GrantsFederal GrantsOther Grants
Interest Rates
• Fixed interest rates• Variable interest rates• Prime rate
Avoiding Debt
• Create a budget plan• Pay cash for normal expenses• Stop buying unnecessary items you do
not need• Live within your means• Create an “EMERGENCY” fund• Stop getting credit cards
Managing Debt
• Self-help– Develop a budget– Contacting your creditors– Credit counseling
• Debt consolidation• Bankruptcy
Summary
• Student loans are a great way to help pay for your higher education, as with all loans however you should always borrow carefully.
• Grants are also a great resource to help pay for schooling, unlike student loans grants do not have to be paid back.
• Interest rates can vary based upon an individual’s credit score. Interest rates can be high or low, and can be either fixed or
variable.• Debt can be easily overwhelming to an individual if
managed poorly. Be cautious of the debt you have and apply appropriate techniques to reduce any debt you may have.
Resources
• www.StaffordLoan.com• www.studentaid.ed.gov• www.interest.com• http://
www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm
Questions