WELCOME!

Anita NesibaCertified Credit Counselor

Certified Housing Counselor

Certified Student Loan Counselor

Consumer Credit Counseling Services

Lutheran Social ServicesInspired by love we care for, support and strengthen

individuals, families and communities

“As long as we have hope, we have direction, the energy to move and the map to move by, we have a hundred alternatives, a thousand paths and an infinity of dreams.”

Author Unknown

QUESTIONAIRE

Financial Choices

The key to managing your finances is:

a) Having access to credit

b) Having a budget

c) Paying less interest

d) Making more money

What is the foundation of a budget:

a) Your income

b) Your debts

c) Your goals

d) Accurate number for your income and expenses

If you began with a penny and doubled your money every day, at the end of thirty days you would have:

a) $8896

b) $83,886

c) $670,088

d) $5,368,709

Which of the following statements are true:a) After deductions you can expect to take

home 70% to 80% of your gross pay

b) After deductions you can expect to take home 60% to 70% of your gross pay

c) After deductions you can expect to take home 50% to 60% of your gross pay

d) After deductions you will be left with nothing

What are the major types of expenses:

a) Expected and Unexpected

b) Fixed, flexible and periodic

c) Taxes, education and utilities

d) Food, clothing, shelter and transportation

Your budget is in balance if:

a) Your expenses exceed your income

b) Your expenses are equal to or less than your income

c) You get paid weekly

d) You get a raise

Beginning at the age of 18, if you saved $3,000 a year for five years and earned a return of 10% each year, at the age of 65 how much money would you have:

a) $55,000

b) $165,000

c) $460,000

d) Over one million dollars

When it comes to car insurance:

a) The higher your deductible, the higher your premium

b) The lower your deductible, the lower your premium

c) The higher your deductible, the lower your premium

d) Your deductible does not affect your premium at all

Budgeting

Do you currently keep track of your monthly expenses?

Fixed, Flexible and Periodic Expenses

What are they?

Tracking, tracking, tracking!

Congratulations!Graduation: What is next?

Goals

• Where do you see yourself in 12 months, 5 years, possibly 10 years?

Considerations

1. Where do you want to live? Costs of living?

2. What type of employment are you considering and what time frame do you have for your goals of employment?

3. Graduate school?

Student Loans

* According to Federal Reserve in New York the student loan debt is now about $870 billion. This tops Credit Card debt at $693 billion and Auto loan debt at $730 billion.

Loan RepaymentFederal Student Loans

1. Standard Repayment Plan

2. Graduated Repayment Plan

3. Extended Repayment Plan

4. Income Based Repayment Plans

a) Direct Loan Income Contingent Repayment Plan

b) IBR- Income Sensitive Repayment Plan

Loan Forgiveness

• Repayment plans after 25 years if Federal

• Working in a specific job where you could see loan forgiveness after 10 years of payments

• If you are a teacher with Perkins Loans or in a specific profession

• Employers can offer incentives

Private Student Loans

• Be cautious and always keep informed about payment plan options.

• Limited

Postponing RepaymentFederal

• Loan Deferment

• Loan Forbearance

• Private Student Loans- limited in options

CONSEQUENCES OF DEFAULT

Tax Refund Offset

• The IRS can intercept any income tax refund you may be entitled to receive until your student loans are paid in full.

Paycheck Garnishment

• Federal government can take ”garnish” up to 15% of your disposable income but is not able to take more than the equivalent of 30 times the current federal minimum wage.

• Best way to avoid garnishment is to contact the holder of your loan to negotiate a repayment schedule.

Federal Benefits

• The federal government can take benefit payments, including Social Security and Social Security Disability, but no Supplemental Security Income. They have to leave you with benefits of $750 a month or $9000 a year.

You Get Sued

• The government and private lenders can sue you to collect defaulted student loans. Unlike other debts, there is not any time limit on collection of the debts.

Resource for Information

• www.studentloanborrowerassistance.org

• www.studentaid.ed.gov/publicservice

• Financial Aid Office