Exit counseling prepares student loan borrowers for repayment
Alabamians who have borrowed federal student loans and are finishing their schooling must take exit counseling, according to KHEAA–Alabama. The federal government requires the counseling so student loan borrowers will understand their obligations and options. During their counseling session, they will learn how to ensure that they make their payments on time and whether they can qualify for a deferment or forbearance. Deferments and forbearances let you stop making payments temporarily, if you qualify. Most federal student loan payments are in forbearance at least through Aug. 31 because of the pandemic. The U.S. Department of Education assigns student loans to one of eight loan servicers, which collect payments. Servicers also help students pick the best repayment option. Students should keep in touch with their servicer to make sure the repayment process goes smoothly. KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information about those services, visit kheaa.com. In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information, visit advantageeducationloan.com. For more information about financial aid and college planning, visit alstudentaid.com.
Now is the time to start planning for retirement
Retirement may be a distant concern for high school and college students, but they might want to start thinking about it now, according to KHEAA–Alabama. The best time to start planning for retirement is when you’re young. You should research your options for investing early so the money you invest now has more time to grow and help you when you get older. Two options for members of tomorrow’s workforce are a 401(k) savings account and an individual retirement account (IRA). Many employers offer their workers a 401(k) option. With a 401(k), the employee has a percentage of their wages deducted and deposited into a tax-deferred account. Most contributions are invested in mutual funds. Some employers may wholly or partially match what an employee contributes. IRAs come in several forms, but perhaps the most popular are the traditional IRA and the Roth IRA. Both types are held by a custodian, usually a bank or a brokerage firm. IRA contributions can be invested in stocks, bonds, certificates of deposits and even real estate. In a traditional IRA, the contributions are made before taxes. The account owners pay taxes on the funds they withdraw. With a Roth IRA, the contributions come from after-tax money, which means that withdrawals are tax free. Keep in mind that the federal government can change the rules about retirement accounts at any time. You should consult a trained professional to make sure you choose the best plan for you. KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information about those services, visit www.kheaa.com. In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information, visit www.advantageeducationloan.com. For more information about financial aid and college planning, visit www.alstudentaid.com.
Online security can help protect you from cyber thieves
Students should be aware of the financial risks that accompany their social media activity, according to KHEAA–Alabama. Each new social media platform — Facebook, Instagram, TikTok and whatever else is on the way — unfortunately presents criminals with the opportunity to steal from unsuspecting people. Students should be especially cautious of any unsolicited messages asking them to open a file or click on a link. Criminals exploit vulnerabilities in social media software and hope that users won’t realize that they’re being phished. One of the most common ways is to send a link to what appears to be a legitimate website. Never click on a link without first ensuring it’s real by checking with the company that is the supposed sender. KHEAA–Alabama also advises social media users to be wary of any kind of online survey that asks them to fill out a long list of information, such as their favorite car or where they were born. The answers can give scam artists all they need to steal someone’s identity. KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. The agency also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information about those services, visit www.kheaa.com. In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information, visit www.advantageeducationloan.com. For more information about financial aid and college planning, visit www.alstudentaid.com.
First-time federal student loan borrowers must complete entrance counseling
Alabamians who will borrow money for college using federal student loans must complete entrance counseling if they are borrowing for the first time, according to KHEAA–Alabama. Entrance counseling helps students understand the financial commitments they’re agreeing to when they receive their loan. Fully understanding these financial obligations is an important step in taking out federal student loans to help pay for education after high school. The U.S. Department of Education requires borrowers to complete the counseling before students will receive loan funds. The counseling will teach users how to borrow responsibly so they don’t take out more loans than they need. The department offers online counseling at studentaid.gov under the Complete Aid Process tab. The counseling should take between 20 to 30 minutes. Borrowers should check with their college to see if the federal counseling session is accepted as some schools have alternate counseling program requirements. KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information about those services, visit www.kheaa.com. In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information, visit www.advantageeducationloan.com. For more information about financial aid and college planning, visit www.alstudentaid.com.
Money tips for students
How to make it, use it and save it
Once you start paying bills, you start building a credit score. If you have a history of paying bills late, it will be reported to credit rating agencies and affect the interest rate you pay on credit cards and loans. It may also affect how much you pay for insurance and whether you are approved for renting an apartment.
A credit score is based on your payment history. Credit scores are used by lenders to help determine if applicants qualify for a credit card, loan, insurance or other services. Most credit scores estimate the risk a company incurs by lending money or providing a person with a service — specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher your credit score, the less risk you represent.
Some people think you need a credit card to build a credit score. But if you open your utility accounts in your name instead of your parent’s name, you can work toward building a credit score in six months.
A late or missed payment stays on your credit report for seven years, even if the creditor has been paid in full. It is better to start off on the right foot by establishing checking and savings accounts, using your credit cards sparingly and paying all of your bills on time. KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA partners with Overture Technologies to provide the Alabama Student Loan Marketplace at www.alabamamarketplace.com to help students and parents find the private college loan that best suits their needs. KHEAA also provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. For more information about financial aid and college planning, visit www.alstudentaid.com.
Dorm Room Checklist
Helping you pack an essential supply for your first year of college dorm life
Before running out to the nearest store to purchase the items for your dorm room, it’s a great idea to check out your college’s Web site.
Frequently there will be a list of items that are not permitted on campus, sometimes including air conditioners, space heaters, pets, toasters, etc.
Also, be sure to contact your college roommate to decide who is bringing which items from your dorm room checklist.
This lowers the possibility of a duplicate supply of items that may not fit in the small space of dorm room storage.
Here’s a college dorm room checklist of essential items that you will want to bring:
Bedroom:
Bed Sheets
Duvet Pillow
Pillow Cases
Alarm Clock
Lamp
Clothing
Hangers
Kitchen:
Kettle
Coffee Machine
Knives
Spoons
Forks
Plates
Bowls
Mugs
Glasses
Microwave
Dish Soap
Dish Rags
Garbage Bags
Food Containers
Water Flask
Fire Extinguisher
Study Area:
Desk Chair
Lamp
Bookcase
Telephone
Recycle Can
Extension Cord
Laundry:
Laundry Detergent
Clothing Basket
Drying Rack
Coins
Iron
Ironing Board
Odds and Ends:
Sports Equipment
Set of Tools
List of Emergency Numbers
Make college more affordable by saving money on non-billable expenses
When it comes to comparing the costs of various colleges, remember that on the broadest level, costs are divided into billable and non-billable costs. To save money, follow these tips from KHEAA–Alabama.
Billable costs are what you have to pay to start college. At a minimum, these costs include tuition and fees. If you’re going to live in school-provided housing, billable costs will also include room and board. These costs are called billable because the school will bill you for them.
Non-billable costs include textbooks; supplies, such as pens and notebooks; transportation; and personal items, such as shampoo, clothes, entertainment, laundry, and other expenses.
Shopping around can help save money, sometimes a lot of money, in room and board and the non-billable costs. Textbooks are expensive, but you can save money by buying used books if possible. Renting textbooks is now an option at many schools. Buying notebooks, pens and other supplies in bulk can also help you save money.
If you’re attending a school nearby, you can save room and board by commuting from home. It’s also possible to cut room and board costs by sharing an apartment with friends.
However, some colleges require freshmen to live on campus their first year. If you are planning to go to college, it’s a good idea to compare billable and non-billable costs at the schools you’re considering. Once you’ve done that, you and your parents can discuss ways to save.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA partners with Overture Technologies to provide the Alabama Student Loan Marketplace at www.alabamamarketplace.com.
KHEAA also provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. For more information about financial aid and college planning, visit www.alstudentaid.com.
Compare award letters to find best college deal
By now, most high school seniors should have completed the college application process and will begin receiving financial aid award letters.
Seniors and their parents should compare those letters to find the one that offers the best financial aid package, KHEAA–Alabama advises.
The letter will usually show the total cost of attendance — what it costs to go to that school for one school year, including tuition, fees, room, meals, books, supplies, transportation and personal expenses.
It may also show how much the student’s family is expected to pay toward those costs, the expected family contribution (EFC). The EFC is subtracted from the total cost of attendance to get a student’s financial need. The letter will then list various sources of financial aid offered to pay for the costs not covered by the EFC. Students can accept or reject any or all of those proposed sources.
Students should consider how much of the financial aid will have to be paid back after finishing school, especially if the financial aid package includes federal student loans. If the package is not enough to pay all expenses, students may apply for a private education loan. Students and parents may visit www.kheaamarketplace.com to compare loan terms and interest rates to find the best private loan for their needs.
Often more expensive schools will offer scholarships that may help bring the cost of attendance in line with other, less expensive schools.
Students should consider all of their options and compare costs before selecting a college or university.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college.
It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA partners with Overture Technologies to provide the Alabama Student Loan Marketplace at www.alabamamarketplace.com.
KHEAA also provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school.
For more information about financial aid and college planning, visit www.alstudentaid.com.
Veterans, members of armed forces have student aid options
Veterans and members of the U.S. armed forces may be able to take advantage of numerous student financial aid programs, according to KHEAA-Alabama. They include the:
Montgomery GI Bill (Active Duty), available to armed forces members and some National Guard members who served on active duty. For more information, visit www.benefits.va.gov/gibill/mgib_ad.asp.
Post-9/11 GI Bill, available to those who served at least 90 days of active duty after September 10, 2001. Those who were honorably discharged after serving 30 continuous days of active duty after that day are also eligible. For more information, visit www.benefits.va.gov/gibill/.
Federal Tuition Assistance, for active duty members of all branches of the armed forces, including the Coast Guard, National Guard and Reserves. For more information, contact the college financial aid office or the unit education officer.
Montgomery GI Bill (Selected Reserve), available to members of the Reserves or the National Guard who have a six-year service obligation. For more information, visit www.benefits.va.gov/gibill/mgib_sr.asp.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information about those services, visit www.kheaa.com.
In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information, visit www.advantageeducationloan.com.
For more information about financial aid and college planning, visit www.alstudentaid.com.
Save money by taking more classes each semester
Taking more classes each semester may help you cut the cost of college, according to KHEAA–Alabama. That’s important if you’ll need student loans to help pay for your education. A full-time load for undergraduate students is usually 12 credit hours per semester. Associate’s degrees usually require 60 credit hours to finish, bachelor’s degrees 120 hours. At 12 hours each semester, you’ll need five semesters to finish an associate’s degree and 10 semesters to finish a bachelor’s degree. But if you take 15 hours per semester, you’ll finish an associate’s degree in four semesters and a bachelor’s degree in eight semesters. Most colleges won’t charge you any more for 15 hours than they do for 12 hours. That might save you thousands of dollars in tuition and fees. When you’re planning your schedule, think about taking that extra class each semester. The sooner you earn your degree, the sooner you can start job hunting. KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA. For more information about those services, visit www.kheaa.com. For more information about financial aid and college planning, visit www.alstudentaid.com.