For the average job-holding, nine-to-five adult, the biggest question when it comes to credit is “Is mine good or bad?” But for many college students, the more pressing question is “Where do I even start?” The scene: Jason, a fresh-faced recent college graduate gets a new job and decides he probably will need a car to get to work. nike kd 9 pas cher He finds an affordable, reliable vehicle but has to finance it because he does not have enough money saved to pay for it outright. Air Jordan 12 (XII) The problem: He’s rejected for financing not because he has bad credit, but because he has no credit. nike air max 2017 dames Groen This scenario plays out all too often for college students and many other young people taking their first few wobbly steps to financial independence, but there are several ways to prevent it. Nike Lebron 13 Step 1: Know Where You Stand Just because Jason had no credit doesn’t mean that every college student is stuck in the same conundrum. Many students may be making credit histories without even knowing it. Ever had a student loan? The many college graduates drowning in student loan debt might have more credit to their names then the lucky few who graduate debt free. nike pas cher Basically, anything that requires monthly payments could build credit. Think back to loans, gym memberships, rent checks, and the like. Everyone is granted one free credit report per year. Goedkope Nike Air Max 90 Take advantage of this service by using a reputable credit-reporting bureau, such as Equifax, Experian, or TransUnion. Step 2: Get a Credit Card This part can be tricky. air max pas cher pour homme The credit conundrum can prevent people like Jason from getting credit cards simply because they have no credit. So how are they ever supposed to build their credit? Most banks offer secured lines of credit to their customers. Javier Baez Authentic Jersey This means that account funds are used as collateral should credit holders fail to make payments. Store credit cards often have more lenient requirements and lower credit limits, so they are also a good first step to establishing credit—as long as they’re handled responsibly! Step 3: Take No-Interest Offers in Stores Ever seen the “same as cash for 90 days” in-store offers on big-ticket items? It’s easy for them to sound like scams, but they’re not. Just be sure that you have the right amount of money, and sign up. This is, in essence a loan, and, if you make good, regular payments, it’s a no-extra-cost way to establish some credit.
A Coverdell Education Savings Account is a type of Education Savings Account, ESA, that allows parents and students to save money to be used for future education costs. It can be started with a mutual fund company or a bank. The expenses of college and university are not the only educational sources covered in this plan. Elementary and secondary schools may also be included as well. Students may spend the savings on tuition and fees, room and board, books, along with other equipments that may be required by the school. Though this ESA covers the expenses of different levels of education, the benefits only qualify for eligible schools and colleges.
One of the biggest benefits of opening a Coverdell Education Savings Account is that the balance grows without being taxed. Similarly, no taxes will be charged during the time of withdrawal considering the money is contributing to expenses of a qualified educational system. Coverdell ESAs have a limit on the age of the beneficiary requiring that the student withdraw the amount in the account by the age of 30. The beneficiary is given a period of thirty days after reaching the age limit to take the money out. If the money is not spent by this age and the time allowed afterward, there will be taxes and other penalties imposed on the account. Other than disbursing the savings, this account can be switched to benefit another member of the family who is still under 30 years old. This way no taxes or penalties are issued.
Anyone can open a Coverdell Education Savings Account depending on their income. The student need not have to be related to this person. The owner of the account (the person contributing to the savings) should know that this is not tax deductible and the owner can only pay $2000 per year in total for each beneficiary. This owner may open multiple accounts but for different recipients. If other people are already putting money in a Coverdell ESA for a particular student, then a new contributor may only pay an amount that will not push the limit over the $2000 maximum. In other words, no matter how many people are adding to one ESA, in combination the overall balance for the year can not exceed the amount of $2000.
To benefit from this plan the beneficiary must be under 18 years old or qualify as a special needs beneficiary. Special needs beneficiaries are those who may be physically handicapped, have a mental disorder, or a learning disability. The student has to be enrolled in an educational institution like a college or school that is eligible to receive such pay offs. In general, the institutions must be accredited. These may include private and religious schools along with public schools. Vocational schools can be covered by a Coverdell Education Savings Account granted they have proper accreditation. This ESA will not affect the student from receiving financial aid as long as the student is not listed as the owner of the account.
Have you gone to college only to find that you are in debt up to your eyeballs? Student loans can be very scary! Paying student loans can be hard on a young person just starting out. Just remember that just because you have not landed that perfect job just yet does not mean that your student loans will go away all by themselves.
Paying student loans back is a great step to earning a solid financial foundation for your future. When you graduated from college the first thing most students think about is, “Time to relax for a few days then off to beat the streets for a job!” When that first student loan bill arrives in the mail it can be very nerve wracking and overwhelming. However, you can make the transition from college student to a professional career individual by understanding the repayment process of paying your student loans off.
Every financial institution knows that there will be times that a payer of sums owed will/may fall upon hard financial situations. Student loans cannot be canceled but there are ways to assist you with your circumstances. Your financial adviser will explain options such as:
- Making Payments
- Loan Service’s
- Choosing a Repayment Plan
- Loan Consolidation
- Deferment and Forbearance
- Forgiveness, Cancellation, and Discharge
- Understanding Default
- Resolving Disputes
Making Payments – Once you graduate you will be responsible for making payments to your loan servicer. Each loan servicer may have different ways and times that the payments should be submitted. *Note* it is the students responsibility to contact the loan server even if he or she has not received a bill.
Loan services – A company that collects payments on a loan, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a loan on behalf of a lender. If you’re unsure of whom your federal student loan servicer is, you can look it up on www.nslds.ed.gov.
Choosing a repayment plan – When it comes time to repay your student loans you will have a few choices for what type of payment plan will best suit your needs. The type of payment plan you choose will determine the amount and length of time you will be paying.
Types of payment plans available:
- Standard Repayment Plan
- Graduated Repayment Plan
- Extended Repayment Plan
- Income-Based Repayment Plan (IBR)
- Pay As You Earn Repayment Plan
- Income-Contingent Repayment Plan
- Income-Sensitive Repayment Plan
- Consolidate Your Loans
Deferment and Forbearance – If your financial situation is hard such as, unemployed, food stamps, returning to school, or going into the military this is the type of payment plan you can chose to postpone or lower your payments.
Forgiveness, Cancellation, and Discharge – This service is for students who have become totally or permanently disabled, or the school closed while you were in attendance, and certain types of teaching services and other such situations. This will put your loan in forgiveness, cancellation, or removed.
Understanding Default – You never want to go into default with your student loans. The college, the loan servicer that made or owns your loan, loan guarantor, and the federal government all can take action to recover the money you owe.
A default with your student loans can affect
- Denied rentals on apartments/homes
- Higher deposits on utilities or denial of services
- Home owners insurance
- Cell phone services
If you need assistance with your loans, call your student adviser or contact your loan servicer today!
Saving money for college is sometimes easier said than done, especially in today’s economy! The first thing a new parent thinks about when a child is born is diapers and bottles. Don’t forget daycare! However, as the child grows so does the cost of living. The parent has education expenses and clothing and food expenses. Not counting every day regular expenses such as the electric and water. It is very important to save for college if you don’t start early it can creep up on you before you know it.
Some parents open a savings account when they find out they are having a baby. By opening this account at this early stage you are hoping you can get ahead of the game and have the funds saved for your child to attend the school of his or her dreams. You may even hope that this savings will be large enough to write a check and be done. This can be a great option, if you do not have to use any of the funds for anything else. However, there are other ways for saving money for college.
There is a state sponsored plan by the name of 529 College Savings Plan. This plan offers a tax-deferred flexible way to save money for your child to attend college. This type of plan is for those who believe factors such as tax-free qualified withdrawals, tax-deferred growth, and contribution flexibility as being an important part of a savings plan. The 529 College Savings Plan is beneficial for you and your child.
Another avenue that a person can begin saving money for college is with uniform gifts or transfers to minors. This type of saving for college will allow the transfer of ownership of assets to your child without the added expense of creating a trust fund. Remember to check this type of saving money for college plan before you initiate it because withdrawing money can come with a penalization because of surrender charges.
There are flexible options such as common stocks, CDs, bonds, and mutual funds. Keep in mind these options are taxable. Be sure and do your research before you choose any of the options above. Such as a CD, this option can be a good investment but the rates may be low. This option is FDIC insured because it is considered an asset. You will not have to worry about losing the principle when you need the funds. An important point to remember is that if a CD is not held until maturity there may be penalties incurred.
Saving for college can be nerve racking. However, if you are employed at this time and your company offers Roth IRA and Traditional IRA, this is an option as well. Most people have this type of account so he or she can save for his or her retirement. Before you decide to use this option to fund your child’s college career make sure you have exhausted every avenue. It is important to remember when using this type of savings for education purposes the 10% penalty is waived on the withdrawal if it is before the age of 59 ½ for you (the account holder), spouses, and children or grandchildren. Before you make any decision about saving money for college, ask advice from a financial adviser.
Saving money is something we all struggle with from the young age of 16 to the adult age of 50. After a little experimenting I have found a couple simple and easy ways to save money. As a college student, these few methods are very simple and very do-able.
Bank Your Change
You may have heard of programs like this on television. You use your card to make purchases and the bank rounds the purchase amount to the next dollar, putting the difference into the account of your choosing. For me, the account my change is placed into is my CD account. When starting a CD account, you choose how long you wish to keep your CD untouched. That means you will be forced to save money through saving your change.
The Jar Technique…
…otherwise known as the literal save your change technique. I do not like to carry cash, but when I do I try to break it down to as much coin change as possible. I think put it in an old mason jar and save it to a certain date or till the jar is full. I also like to put my one and five dollar bills in the jar. If I have something planned, like a dinner date with friends, a bowling night with family, a car wash, etc., I get the money in cash and put it in the jar as well so that I know I have it when I need it. If you are like me and spend cash when you have it, the jar technique is an experiment you may want to invest in.
These are two small and simple ways to save money. Whether you are a college student scrimping by for loan payments or an adult just trying to save a little pocket change, both these methods are worth your time. Check them out and let me know how you do!