Top 10 Student
Loan Tips for Recent College Graduates
-
Know your loans.
It is
important to keep track of the lender, balance, and
repayment status of each of your student loans.
-
Know
your grace period.
Different loans have different grace periods, or how
long you can wait after leaving school before you have
to make your first payment.
-
Pick
the right repayment option.
When
your federal loans come due, your loan payments will
automatically be based on a standard 10-year repayment
plan. If the standard plan is going to be hard for you
to manage, work with your lender to find an alternative
plan.
-
Stay in touch with your lender.
Whenever you move or change your
phone number, make sure to tell your lender right away.
If your lender needs to contact you and your information
isn’t current, it can end up costing you a bundle.
-
Remember that you have options.
If you are having trouble making
payments, don’t panic. Whether it is due to
unemployment, health problems, or going back to school,
there are legitimate ways to postpone your federal
loans.
-
Stay out of trouble!
Ignoring your student loans has serious consequences
that can last a lifetime. Not paying can lead to
delinquency and default, which can dramatically impact
your ability to acquire loans later in life.
-
Lower
your principal if you can.
When
you make a loan payment, it covers any late fees first,
then interest, and finally the principal. If you can
afford to pay more than your required monthly payment,
you can lower your principal, which will reduce the
amount of interest you pay.
-
Pay
off the most expensive loan first.
If
you are considering paying off or paying down one or
more of your loans ahead of schedule, or trying to
reduce the principal, start with the one that has the
highest interest rate.
-
To
consolidate or not to consolidate.
A
consolidation loan combines multiple loans into one for
a single monthly payment and one fixed interest rate.
Shop around for the best deal when considering
consolidation.
-
Loan forgiveness.
These
are various programs that will forgive all or some of
your federal student loans if you work in certain
fields. Public servants, teachers, nurses, and
AmeriCorps and Peace Corps volunteers are all loan
forgiveness career opportunities. www.FinAid.org has
more information about loan forgiveness.
Traveling Abroad Is Easy
If you are traveling overseas and will use your Sun Federal Visa Platinum Credit Card or ATM Visa Check Card, please call any branch or 800-786-0945 (option 3 then 1 or 2) to reach our Card Services Specialist to give us your travel details before you leave. This will ensure that your vacation purchases will be approved and not considered suspicious.
Here are a few ways you can pay for purchases or get
cash, in any local currency, at an ATM:
Also, make sure we always have your correct phone numbers so we can reach you easily. We recommend adding our 24/7 lost or stolen card numbers to your cell phone: Visa Credit Card, 800-991-4961 and ATM Visa Check Card, 800-472-3272. Thank you for helping us to protect you while you travel!
Dell Credit Union Discount Program
10-30% discounts on Dell computers and printers
Dell can help you do more for less! Save Up To 10%, 20%, 30% or More! Plus,
take advantage of financing through Sun Federal!
- High-Powered Savings – members-only discounts on top-of-the-line models like Dell Adama and Alienware
- Brilliant Buys – popular systems loaded with great features at amazing prices
w Extreme Deals – rock-bottom prices on workhorse systems for the whole family
- Worry-Free Discounts – savings on systems loaded
with security features as well as companion security
products, theft protection, computer care and other
great services
- MPP 30-Day Price Guarantee – if you find a better price on an identical configuration of the same Dell System on Dell.com/home, just call our MPP sales representative at 800.695.8133 and provide a non-expired quote or screen shot and we’ll beat the price by $25.
Call 866-257-4711 or visit
WWW.DELL.COM/CUProgram (Member ID: GS105471105) to take advantage of this Credit Union offer!
Gifts To Teach Kids About
Money
(April 2010)
Teaching children about money can start with children as young as three years old. It’s important to get them on track at an early age. For the children ages 3-11, a piggybank is a great gift to teach the value of money. There are numerous piggy banks; from traditional to those with separate compartments for saving, sharing and spending like the Moonjar and Money Savvy Pig.
There are a lot of great storybooks about money for all different ages that are great teaching tools and make learning fun! Visit www.MoneyAndStuff.info to browse a list of age-appropriate books. You can read to kids or if they are older, have them read to you!
Children and adults of all ages love to play games, so giving a board game as a gift is sure to be a hit! There are a lot of options available, but two that teach a lot about money are Monopoly and The Game of Life. Games are a fun way to learn about making choices and how much life costs.
Teens need tools to teach them about money, but they also need a way to organize their financial lives. There are numerous resources at www.SunFCU.org for teens to get answers to money questions in fun formats including Guides to Independence and Anytime Adviser. The brass Package is a great Sun Federal resource to teach teens about checking, a check card and credit cards by allowing them to start using these resources after completing financial education courses.
t’s never too early to start talking to the children and
teens in your life about money and how it impacts their
future. Check out our financial education resources to help.
Seven Steps to a Successful Spending Plan
(April 2010)
Budgeting can be a simple and straightforward process. It can also be a rewarding experience for all family members. But, it takes interest and commitment.
Discuss Values – Determine what is most important to the people involved in your budget. By understanding these values, you can make decisions that will provide you with the most satisfaction.
Set Goals – Begin setting goals by discussing what each person may want to do with their money. Have each family member list the goal and a deadline. Put money aside in your budget for your priority goal. Remember, to achieve your special goal, you must treat the money as a bill to be paid to you.
Determine Income – Figure out your net pay, or the money that is left over after deductions. Your income can come from sources such as salary, allowances, social security or child support. Do not include overtime pay.
Determine Expenses – What are the expenses in your budget? Consider fixed, variable and periodic expenses. Fixed expenses are consistent every month, variable expenses vary monthly and periodic expenses are not due every month.
Create a Plan – Design a spending plan so that your income will allow for what you want and need. If you find that your income does not cover your expenses,
re-evaluate your plan and make changes.
Keep Track of Expenses – Keep a record of expenses to see where your money is being spent. Compare your estimated expenses with what you are actually spending to evaluate whether or not your plan is working.
Evaluate Your Plan – Periodically evaluate your spending plan. Is it still helping you meet your needs and achieve your goals?
Living Green Without Spending Green
By PracticalMoneySkills.com (February 2010)
It’s official, the eco-friendly movement is in full swing. As consumers, we’ve become more and more inundated with messaging about the environment and how product X is going to save the world. With no disrespect to these groundbreaking efforts, the problem for many of us living on a budget is that installing solar panels, channeling wind energy and shopping at our favorite eco-designer’s boutique isn’t an option right now.
Fortunately, there are plenty of simple things we can do daily to support a greener lifestyle that do not cost a thing upfront. Better still, these greener habits can save your household money, and the environment, some of its precious resources. Even if you only adopt one or two of these suggestions, it’s a great start. At home, at school and out in the world, consider these greener habits in 2010.
Shorten your shower. We all love a nice hot shower, but there’s plenty of time in there when the water doesn’t need to be blasting. Consider shutting off the water for a few moments while you lather up. Or better still, install a low flow showerhead. They’re not very expensive, and you’ll quickly notice a difference on your water bill.
Trick your tank. Drop a plastic bottle filled with water into the tank of your toilet. With every flush, you’ll be saving that much water to refill the tank.
Power strip it. Lots of household appliances still use energy, even when they are asleep or in standby mode. Consider using a power strip for these appliances, and switch it off every evening.
Recharge. For wireless computer mice and remote control devices, rechargeable batteries quickly pay for themselves, and translate to fewer chemicals in landfills.
Recycle. If you find yourself in a position to upgrade appliances, consider Energy Star products, or other energy efficient brands. And don’t send your old appliances or electronics to the landfill by tossing them out. There are many organizations that now make it easy to pass on your existing machines. One worth exploring is
www.mygreenelectronics.com
Reuse. Most people think thrift stores only sell clothes, but many offer furniture, tools, and other household items that are still in working condition. Organizations like
www.freecycle.org and
www.earth911.org can connect you with local options for both giving and getting.
Check your pressure. There are a lot of great ways to cut down on fuel costs. One simple tip that often gets overlooked is checking the tire pressure on your vehicle. Some states have even passed ordinances that require car repair shops to check tire pressure on every vehicle they serve. It’s a simple step that reduces fuel consumption and saves consumers at the gas pump.
Shop locally. When you’re shopping for your household, it’s easy and understandable to go for the best bargains and those are often online, or at big box stores. Still, it’s always worth considering local options. A locally grown or produced item does not require the energy to be shipped to your location. And supporting smaller businesses also helps stimulate your local economy. Compare the cost and decide for yourself if the savings outweighs the greater benefit.
Support eco-friendly businesses. One of the best ways to show support of green living is by shopping at eco-friendly businesses. These businesses don’t have to
be manufacturing cutting edge green products. They might even be a corporate chain. But if they have a good track record of recycling, or are clearly making the effort to reduce their carbon emissions and recycle responsibly, why not reward them with your business?
Inspire a green classroom. Educators serve as a role model for students, and are in a perfect position to reinforce greener habits at a young age. By turning off lights not in use, making recycled paper and other products readily available, and weaving in lessons about greener living into curriculum, teachers can provide clarity on this evolving issue that is so crucial to future generations.
These suggestions are just a few of the ways to go green and save. If you have ideas on how to live more efficiently at home, in the classroom, or out in the world, contact us at info@practicalmoneyskill.com. We may use your tips in an upcoming article.
First-time Homebuyer Tax Credit Expanded
By Jason Alderman (January 2010)
A key feature in last year’s economic stimulus bill was
the federal income tax credit designed to help first-time
homebuyers. Now, as part of legislation signed by President
Obama in November 2009, that tax credit has been extended –
as well as expanded to include a credit for current
homebuyers looking to buy a new primary residence.
Here's how it works:
The deadline for the first-time homebuyer credit was
extended to include purchases where a binding contract is
signed by April 30, 2010, and closed by June 30, 2010. A few
rules:
- "First-time homebuyers" are those who have not
owned a home during the previous three years.
- The credit is worth 10 percent of the purchase
price, up to a credit limit of $8,000 on homes costing
$800,000 or less; homes priced above that are
ineligible.
- Qualifying income thresholds have been raised to
$125,000 in modified adjusted gross income (MAGI) for
individuals and $225,000 for married couples filing
jointly, from the previous $75,000 and $150,000,
respectively. (MAGI is usually found on line 38 of your
federal income tax return).
- The credit phases out for individuals with MAGI
between $125,000 and $145,000 and $225,000 to $245,000
for joint filers.
- If you are married, both you and your spouse must
qualify as first-time homebuyers to receive the credit;
also, each of you must be at least 18 years old at
closing and neither can be claimed as another taxpayer’s
dependent.
- Purchase transactions between immediate family
members are not eligible.
- You must attach a copy of the purchase settlement
agreement to your tax return.
- You must repay the credit if, within three years of
purchase, the home is no longer your primary residence.
(Certain exceptions will be made for military personnel
and when one of the homeowners dies.)
- Qualified housing includes newly constructed or
existing single-family houses, condominiums,
manufactured or mobile homes –
even boats that function as your principal residence.
- You can claim the tax credit for a 2010 purchase on
either your 2009 (via an amended return, if necessary)
or 2010 taxes.
The good news in this bill for current homeowners is that
they too may qualify for a tax credit if they want to move
to a new primary residence, whether because of a job
transfer, downsizing at retirement or moving to a larger
home or a new community. Although the same income
thresholds, purchase cost limit and closing deadlines apply,
there are a few unique features:
- Instead of $8,000, the maximum credit amount is
$6,500.
- You must have lived in your current home for five
consecutive years out of the last eight.
- The newly purchased home must become your primary
residence and not a second home or investment property.
- You are not required to sell your current residence;
thus, you could rent it out or turn it into a second
home.
To learn more, visit
www.federalhousingtaxcredit.com. Because
of the complexity of tax law governing these transactions,
consult your tax advisor before finalizing a purchase or
deciding which year to claim the credit.
More Articles From GreenPath, Inc.
How To Protect Yourself (From Identity Theft)
Provided By GreenPath, Inc.
In the course of a busy day, you may write a check at the grocery store, charge tickets to a ball game, rent a car, change service providers for your cell phone, or apply for a credit card. Chances are you don’t give these everyday transactions a second thought. But an identity thief does.
Identity theft is a serious crime. People whose identities have been stolen can spend months or years and thousands of dollars cleaning up the mess the thieves have made of a good name and credit record. In the meantime, victims of identity theft may lose job opportunities, be refused loans for education, housing, or cars, and even get arrested for crimes they didn’t commit.
Nothing can guarantee that you won’t become a victim of identity theft. However, you can minimize your risk, and minimize the damage if a problem develops, by making it more
difficult for identity thieves to access your personal information. Here are some tips from the Federal Trade Commission (FTC) to help protect you or someone you know from becoming a victim of this crime.
- Protect your Social Security number. Don’t carry your Social Security card in your wallet or write your Social Security number on a check. Give your Social Security number only when absolutely necessary.
- Select intricate passwords.
Place passwords on your credit card, bank, and phone accounts. Avoid using easily available information like your mother’s maiden name, birth date, phone number or the last four digits of your Social Security number. Combinations of letters, numbers, and special characters make the strongest passwords.
- Treat your trash and mail carefully. Always shred your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards that you’re discarding, and credit offers you get in the mail.
- Verify a source before sharing information. Don’t give out personal information on the phone, through the mail, or on the Internet unless you’ve confirmed their identity and verified that their need for the information is legitimate.
- Store information in secure locations. Keep your personal information in a secure place at home. Share your personal information only with those family members who have a legitimate need for it. Keep your purse or wallet in a safe place at work; do the same with copies of administrative forms that have your sensitive personal information.
For more tips on protecting yourself from becoming a victim of identity theft,
click here watch GreenPath's video on identity theft.
Act Fast to Improve Your Credit Score
Provided By GreenPath, Inc.
Don’t let your credit score get you down. Instead, simply take steps to raise it. And take them soon. As any GreenPath counselor will affirm, there’s no time like the present to begin repairing your credit. Because despite what many “credit repair” agencies claim, there are no quick fixes. It’s all about creating a positive history — and that takes time and follow-through. So, the sooner you begin, the sooner your actions will make a difference.
“It’s never as easy to raise your score as it is to lower it. And it’s certainly never as fun. But the fact is, you cannot ignore it,” reminds Natalie Shannon, a counselor in GreenPath’s Immediate Counseling Group. “A proactive approach to improving your credit score is a vital step in improving your financial situation. It should be a top priority.”
After all, the majority of your interest rates — along with key expenses like homeowner’s and auto insurance — are based on your FICO score, the most widely recognized credit score. Primarily determined by your payment history, your available credit and your length of credit history, FICO scores give lenders a fast, objective measurement of your credit risk.
“In theory, the most important thing you can do to improve your score is manage credit responsibly over a long period of time,” said Shannon. “If you want to take an active approach, there are a lot of specific things you can do, and not do — to help move your score upward.”
Paying your bills on time each month is the most important action you can take to improve your credit rating. Other things you can do include the following:
Pay Down Your Balances
With the exception of paying your bills on time, the next most important thing you can do is pay down revolving credit balances. Ideally, you’re aiming to reduce your balances to below 30% of their limits. Keep in mind that moving debt from one account to another will not help — you need to reduce your overall credit balance in relation to your credit limit. The quickest way to do this is to pay as much as you can to drive these balances down. Another strategy used to improve your credit-to-debt ratio includes increasing your limit on a given card. If possible, this can improve your ratio while maintaining a history with that creditor — another factor in improving your credit score.
Maintain Your Credit History
The length of the relationship with each creditor — also known as credit history — also impacts your score. This is why moving credit to different accounts or opening new ones to carry debt, will reduce the average length of your credit history and adversely affect your score. This is also why it is not advised to close unused cards as a short-term strategy to raise your score. In most cases, it is in your best interest to keep old accounts active — even if it means making periodic, controlled purchases on a card.
Research Your Credit History
Check all three credit reports regularly — there may be variations from report to report. Pay close attention to balances, dates opened, notes, status and inquiries. You can get reports from all three credit bureaus — Experian, Equifax and TransUnion — for free from the official government site, annualcreditreport.com, or you can call 1-877-322-8228. Note mistakes found on each report and find the appropriate documentation to dispute each error.
Dispute Errors on Your Report
If your research reveals errors, you’ll have to initiate the dispute process with the lender/creditor and each credit bureau. First, contact the credit bureau with your claim. Include a copy of your driver’s license or social security card, to prove your correct name and address. Next, contact the creditor with a letter and supporting documents to nullify the claim. And last, follow up. By law, all disputes must be resolved within 30-45 days. Mark dates on your calendar to follow up with any outstanding issues after 50 days.
To effectively dispute a charge, it’s important to keep your communications organized and follow up attentively.
- Use certified mail to help provide a paper trail to track each dispute.
- Create a file that allows you to note all calls, letters and supporting documents that you use to dispute a claim — include certified mail receipts, fax transmissions, and copies of supporting documents.
- Take detailed notes of all your communications — dates, confirmation numbers and names/extensions of people servicing your account.
Teach Your Children Well:
Raising The Next Financially
Responsible Generation
Provided By GreenPath, Inc.
Young adults are taking on more debt — and more types of
debt — than ever before. Many, overcome by student loan, credit card, and
even installment debt, like auto loans, find themselves in deep financial
trouble before they graduate — and long before they begin careers. Paying
homage to the fact that April is National Financial Literacy Month,
GreenPath offers tips for helping parents and other loved ones “teach
these children well,” by helping them improve their financial literacy at
a time when it really counts.
“With skyrocketing tuitions, declining student grants,
and soaring student-loans the norm, it often seems like debt is
unavoidable,” said GreenPath Financial Counselor Jamie Fitzgibbon. “But
there are a lot of things young people can do to ensure these debts do not
overwhelm their ability to achieve financial success after graduation. The
sooner they get started, the better.”
Fitzgibbon says it has to start with family and the
lessons they can share about the importance of living within one’s means
and actively managing money, checking accounts, budgets and, yes, debt.
Spread the Word!
Discuss your own situation: If your
situation has been less than desirable lately, sharing your story and the
lessons you’ve learned sets a meaningful example. Use visuals, your credit
card statements, interest charges, the works! It will give you an
opportunity to discuss the importance of credit ratings and how they
affect your life, both positively (good score = good rates) and negatively
(bad score = high interest rates, higher auto insurance costs and, often,
trouble securing a job). Teach that unaffordable lifestyles and decisions
lead to unaffordable debt.
Introduce the concept of budgeting: Help
young people create a personal budget. Show them how to track income and
expenses, plan for goals and emergency savings (like a broken cell phone),
and save for large purchases. Talk about setting attainable and realistic
goals. Celebrate with them when each is achieved.
Give them responsibility: Give teens
full control of, for instance, their own cell phone bills. Young people
still leaning heavily on their parents need a chance to learn about
managing payments and phone usage. Getting them started learning about
credit with a pre-paid credit card can be valuable, too. Using it and
reviewing the monthly statements with you helps them learn to exercise
self-restraint and provides a forum for you to continue an ongoing
conversation. The bonus? No risk of overspending.
Be firm and positive. Teaching financial
responsibility to a teen is an active and ongoing task. Without prior
experience, this group does not realize the consequences of their money
management decisions. Help them learn by balancing disciplinary and
rewarding responses. Make sure you don’t reward uncontrolled spending on a
pre-paid card by continuing to pay on it. If they have already abused a
card, take it away. But always reward smart decisions and disciplined
saving and spending.
Their success saving up for an iPod, for instance, may
well deserve a $25 iTunes gift certificate from you! But a complimentary
comment about how proud you are of them will definitely work,
too!
FREE Sun Federal Seminars
Sun Federal shows incredible enthusiasm when providing financial education
to its members and sponsor groups. Check out the seminars currently scheduled
or request a seminar.
Need A Budget
Update?
 Check
out BudgetSmart, a free software tool that helps you establish a budget, track spending, and more. To download BudgetSmart,
click here.
Visit the Financial Coach
page for more helpful tips!
Get Your Student Loan at Sun Federal
It's Easy...enter our Lender Code # 832582
on your student loan application.
Tip: There will be a spot to enter your Preferred Lender
Code next to the guarantor drop-down list.
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