New FAQs
- Budgeting
How do I make a budget?
- Decide on your goals.
- Organize your expenses, student loan papers, and other important financial documents.
- Establish a realistic budget by figuring out where your money is being spent.
- Commit your budget to paper.
- Organize your financial records.
How should I keep records of my financial expenses?
To get organized, start a file folder for each type of student loan or for each loan account you have. In these folders, keep copies of any important hardcopy or electronic files. What are fixed and variable expenses?
Fixed Expenses are constant each month in the amount paid and are considered critical expenses that affect your ability to live comfortably, such as rent, insurance, car payments and fixed-rate loans.
Variable Expenses fluctuate monthly in terms of the amount you pay.What type of records should I keep for six years?
- Bank Reconciliation and cancelled checks
- Payroll checks – electronic deposit stubs
- Utility bills, water bills, and cable bills
What type of records should I keep for three years?
- Credit Card Statements
- Medical Bills
- Employment applications
What type of records should I keep indefinitely?
- Other loan documents (i.e. car)
- Student loan documents
- Income tax returns
- Legal records
- Stock records or records of other investments
- Financial statements or other account records and copies of professional licenses or license renewals.
Why do I need a budget?
To attain financial success, mastering the skill of budgeting is the first and most important step you can take. You’ll allow your money to work for you instead of feeling controlled by it. - Credit Management
Is there a charge to review my credit report?
If you review your credit report once a year there is no charge from any of the three credit reporting agencies. What are some common mistakes found on credit reports?
Your statement includes charges that you or anyone you authorized to use your account never made.
Your statement lists an incorrect dollar amount for a purchase.
You need to verify your personal identifying information such as: name, social security number, date of birth, current and previous addresses, and employers.
What are some steps to establishing good credit?
- Set up a realistic budget and stick to it.
- Open up a checking and savings account.
- Evaluate your credit situation. If you don’t have a major credit card, apply for one.
- Make your monthly payment for bills on time every month.
- Review your credit report once a year to make sure it’s accurate.
What can I do protect myself from identity theft?
- Leave all important documents at home.
- Keep all documents with personal information, like canceled checks, in a safe place and shred them when you no longer need them.
- Use a mailbox or lock box at your post office or student union to avoid any concerns about a thief taking important information.
- Protect your Personal Identification Numbers and computer passwords.
- Check your credit report annually.
- Always pick up newly ordered checks at the bank to avoid having blank checks in your mailbox.
- If you suspect someone is using your driver’s license number, call the Department of motor vehicles (DMV). The DMV can tell you if another license has been issued in your name. The DMV can block your information from being released based on verifying identification.
- If your SSN (Social Security Number) was used fraudulently, report the problem to the Social Security Administration Fraud Hotline at 1-800-269-0271.
What do I need to correct or dispute an error on my credit report?
You need to file a “Consumer Dispute” with the credit bureaus. Credit bureaus are obligated to verify accuracy of their reports when notified of such disputes. What is a credit score?
A credit score comes from information credit reporting agencies collect about a consumer’s financial history including number and type of accounts, late payments, rent or mortgage payment history, collection actions or outstanding debt. This information is compared to the credit performance of others with similar profiles, and a formula is used to award points for each factor predicting the likelihood that the consumer will repay his/her debts. The total number of points creates the credit. What is identity theft?
Identity theft occurs when someone obtains and uses your identifying information, such as your name, address, social security number, and date of birth or mother’s maiden name to commit fraud. Where can I go to review my credit report?
There are three major credit reporting agencies and you can obtain a free copy of your credit report once a year at no charge in all 50 states. You may also contact the three major national credit reporting agencies by visiting these websites:
www.transunion.comWho do I contact if I am a victim of identity theft?
Creditors – notify all creditors and financial institutions in writing or by phone that your name and accounts have been used without your permission.
Local Law Enforcement – immediately file a report with your local police. Provide them as much documentation as possible and make sure all accounts are listed on the report.
Federal Law Enforcement – Report the crime to the Federal Trade Commission (FTC). The FTC collects complaints about identity theft from consumers and businesses, and stores them in a secure online database.Why is it important to establish good credit?
Good credit can help you obtain a car or home loan, a lease on a rental property, and even in some cases a desirable job. - Student Loan
How do I get my student loan discharged under Total and Permanent disability?
Fill out the Total and Permanent Disability Discharge form. A physician licensed in the United States must certify your total and permanent disability by providing information on the form and signing it. Send the form to your lender for approval; then the Department of Education reviews your information and determines final eligibility. How long will the discharge process take?
Determining conditional eligibility can take up to one year. Final discharge may be granted three years after the date of disability. I can't afford my loan payment. What are my options?
If you have trouble making your student loan payments, you may find that you qualify for a deferment, forbearance, or other form of payment relief or even that you meet a condition under which your loan can be cancelled or discharged. Alternatively, if you have several loans you may want to consider consolidating them. I can't get a job (in my chosen field of study). Do I still have to pay?
Student loans cannot be discharged because you feel your institution provided a poor education or had unqualified instructors or inadequate equipment. The U.S. Department of Education does not endorse the school's educational programs or guarantee that the school will deliver the services for which a student contracted. Therefore, this discharge cannot be granted if the school did not provide job placement or other services that it promised, or if you were not able to find a job in your field of study. I have a partial disability that affects my employment. Is my loan dischargeable?
No. Loans are discharged when an individual is totally and permanently disabled, unable to work and earn money in any capacity and approved by Department of Education (based on eligibility criteria for discharge of Federal student loans). What are some of the advantages to consolidation?
- May reduce your monthly payment
- You make only one payment each month
- Fixed interest rate
What does in-school deferment mean?
You can receive this type of deferment if you are enrolled at least half time at an accredited post-secondary institution. There is no time limit on this type of deferment. What is a deferment?
A deferment is a postponement of repayment due to specific circumstances. There are many different types of deferments based on various conditions, loan types, loan dates, and time limits. What is discharge?
A discharge is a cancellation of the student loan debt, meaning you do not have to repay it. The four situations in which a student loan might be discharged are: death, disability, school closure, false certification, or in very rare cases, bankruptcy. What is forbearance?
Forbearance is a postponement or reduction of your monthly student loan payment. The difference between forbearance and a deferment is that you are automatically entitled to a deferment if you qualify, while forbearance is granted at the discretion of the lender. If the lender decides to grant a period of forbearance, this will typically last somewhere between one to twelve months. What is student loan consolidation?
A loan that allows borrowers to merge all of their federal loans into one new loan. What is the promissory note?
The document you sign agreeing to borrow and repay money for school. What loans can be consolidated?
- Stafford Loans
- PLUS Loans
- Perkins Loans
- Health Professions Student Loans (HPSL)
- Health Education Assistance Loans (HEAL)
- Nursing Student Loans (NSLP)
- National Direct Student Loans (NDSL)
Who determines whether or not I’m disabled?
Your doctor certifies whether you have a disabling condition that is expected to last indefinitely or result in death, and prevents you from working. Following this certification, the Department of Education’s (ED) Conditional Disability Discharge Unit determines eligibility for discharge of the loan balance. Their decision is final. Who do I contact to file my disability status?
You must submit a total permanent disability (TPD) application to each loan holder. Who is the borrower?
The person (you or your parents) who receives loans to pay for school.