Category Archives: Loans

Look Into All Forms Of Financial Aid

A variety of financial assistance programs are available to help you fund your college education. Scholarships, grants and work-study assignments are available to students of all ages and backgrounds.

The first step for most of these programs is to complete and file a Free Application for Federal Student Aid (FAFSA). Submit your FAFSA as soon as possible after January 1 each year. You must file your FAFSA before April 1 to qualify for the Access Missouri grant.
Findout if you qualify for financial aid.

Federal Student Aid
*Federal Pell Grant
*Federal Supplemental Educational Opportunity Grant (FSEOG)
*Teacher education Assistance for College and Higher Education (TEACH) Grant
*Iraq and Afghanistan Service Grant
*Federal Work Study
*Federal Perkins Loan
*Direct Subsidized Loan
*Direct PLUS Loans

State Student Aid
*A+ Scholarship
*Access Missouri Grant
*Advanced Placement Incentive Grant
*Bright Flight Scholarship
*Kids’ Chance Scholarship
*Marguerite Ross Barnett Memorial Scholarship
*Minority Teaching Scholarship
*Minority and Underrepresented Environmental Literacy Program
*Public Service Officer Survivor Grant
*Vietnam Veteran Survivor Grant
*Wartime Veteran’s Survivors Grant

Student Loans

Steps to do before you make your 1st student loan payment.

Student loans often help make it possible to earn a degree, which over time can help you earn more. If student loans were a part of your college funding stragety, you’ll start repaying them soon. Follow these helpful tips along your path to repayment and you could be well on your way to a bright financial future.

Know what you owe. Review your federal student loan borrowing history.
-Visit StudentAid.gov and NSLDS.ed.gov to view all of your federal student loans and to find contact infrmation of your loan servicer.

Make sure your servicer knows how to contact you.
-Inform your sevicer if you change your street address or phone number.

Select the repayment plan that’s right for you.
-Research repayement options at StudentAid.gov/repay

Make on-time payments
-This helps to build and maintain a good credit rating.

Consider paying a little extra each month
-Paying just a few extra dollars of prinicpal each month can go a long way toward helping you pay off your loans faster.

Seek help at the first sign of financial difficulty.

Use deferment and forbearance only as a last resort.
-Postponing payments can cost you if unpaid accrued interest is added to the loan balance.

Navient.com

Loan Websites

Federal Student Loan Websites

Complete FAFSA® – Complete your Free Application for Federal Student Aid (FAFSA®) to see what aid may be available to help you pay for college

 

Federal Student Aid– Get ready for college or career school, learn about federal student aid and how to apply using the FAFSA®, and get information on repaying student loans

 

Federal Student Aid: Loan Forgiveness, Cancellation and Discharge– Find out whether you qualify due to your job, disability, the closure of your school, or other circumstances

 

Federal Student Aid: Military Student Loan Benefits– Information Members of the U.S. Armed Forces need to know about your federal student loan benefits

 

National Student Loan Data System (NSLDS)– Lets you retrieve your loan information for your federally-owned or federally-guaranteed loans including any balances and which company is servicing them

 

StudentLoans.gov– Apply online for Income Driven Repayment plans, consolidate federal student loans, complete your Master Promissory Note, complete entrance and exit counseling, and more

 

U.S. Department of Education– Provides information about the Department’s offices, programs, information and assistance services, funding opportunities, education statistics, publications and more
https://www.mohela.com/DL/resourceCenter/AdditionalResources.aspx

Financial Literacy

What is financial literacy?

Financial literacy is defined as:

  1. The ability to read, analyze, manage and communicate about the personal financial conditions affecting material well being.
  2. The term is used to describe financial education programs on college campuses and within high schools. The objective of financial literacy programs is to help students better manage their finances,budget effectively, and borrow wisely.

Smart financial management includes a few basic good habits. If you are a student, you may already have a checking account, a credit card, or maybe even a car loan. When heading off to college, you may also need to borrow student loans to help finance your education. But have you determined your financial goals and established good financial habits? Here are a few tips to get you started.

Steps you can take now to get on the right financial path

  • Take charge of your spending. Establish a budgetPDF Document; set limits and prioritize; determine the difference between needs and wants; speak with a professional, nonprofit credit counselor if needed.
  • Start saving. The earlier you save, the more you’ll have.
  • Understand the costs of credit. Compare at least three offers before you choose a credit card; look for low interest rates and no annual fees; always pay more than the minimum payment.
  • Understand how credit use affects your future. Know the difference between good and bad debt; check your credit report annually.
  • Protect your credit and your financial future. Beware of identity theft; review statements and notify creditors immediately of errors; know what’s in your wallet/purse.

Planning for Financial Success

Minimize your student loan debt by following these Top 10 ways to graduate debt free.

  1. Complete the FAFSA annually.
  2. Qualify for federal grants.
  3. Research state scholarship and grant programs.
  4. Apply for institutional scholarships.
  5. Explore private scholarships.
  6. Inquire about work programs available on your campus.
  7. Set up a payment plan for your tuition.
  8. Secure summer employment.
  9. Invest in MOST, Missouri’s 529 college savings plan.
  10. Live like a student now, so you don’t have to later.

www.dhe.mo.gov/ppc/studentloans/finacialliteracy.php

 

Debt Management

Debt Management and Minimization

Many students seek a postsecondary education hoping to improve their career opportunities and financial future. Managing your money while in school is an important part of obtaining the lifestyle you want. However, poor money management, both while in school and after, can mean a large salary going towards debt and not much else.

Follow these steps to make getting your degree, minimizing your debt and repaying your student loans as easy as possible.

For those just beginning a postsecondary program:

  1. Identify your expected after-graduation salary by visiting sites like www.salary.com, as well as job finding services, like www.monster.com or jobs.mo.gov, to determine the demand and compensation for your profession.
  2. Determine how much the degree you want will cost and if you can afford it.
    • Research and compare the total costs for each postsecondary institution you are interested in, including course fees, add-on fees (student health fees, recreation fees, etc.), room and board, etc. The national College Navigator website provides comprehensive cost and program information as well as links to each schools’ net price calculator. The U.S. Department of Education also publishes College Scorecards on postsecondary institutions to help you make an informed decision about which program, degree, or college in which to invest your time and money.
    • Use online calculators, such as the calculator on Mapping Your Future to determine how much student loan debt you can afford (based on your expected future salary) or what salary you will need to pay your student loan debt. A general rule of thumb is to keep student loan payments to 8% of your income.
  1. Develop and follow a budget while getting your degree so you can avoid credit card and other types of debt.
  2. Try to find sources of free funding, such as Pell Grants and scholarships, before borrowing student loans. It is also a good idea to pay for a portion of your college expenses as you go through part-time employment.

Those with a degree or about to graduate should be aware of student loan repayment options. Once you have borrowed a student loan, use the National Student Loan Data System (NSLDS) to access your student loan account and keep track of your total debt. You may also get the information by calling (800) 4-FED-AID.

8 percent rule

Most financial advisors recommend student loan payments not exceed 8% of your monthly gross income. Multiply your estimated gross income (before taxes and other withholdings) by .08. Your student loan payments should not exceed this amount.

http://www.dhe.mo.gov/ppc/studentloans/debtmanagement.php

 

Loan Payments

How to Make a Payment

Making payments on your student loan with Nelnet is easy! With options to pay anytime, anywhere, you can manage your account your way. We offers a variety of payment options, including automatic debits (ACH), to let you choose a method that’s convenient for you. And, if you wish, we can send you text alerts to confirm or remind you to make your payments! See details below.

+Your Accounts, Loan Groups, and Due Dates

http://www.nelnet.com/How-To-Make-A-Payment/

Simplify Student Loans

A Proposal to Radically Simplify Student Loan Payments

By March 24, 2014


Whether students leave college with a degree or without one, they face a dizzying array of challenges—where to live, how to get a job, and increasingly, how to repay their loans. Five organizations, including the National Association of Student Financial Aid Administrators and Young Invincibles, have a proposal that aims to answer that last question with a streamlined and automated alternative to the complex system of repaying loans.

As of now, and with few exceptions, borrowers must start paying back their loans six months after they leave school and repay according to a standard 10-year schedule. If their monthly payment is too high, things get complicated quickly. The government has six other repayment options. Two are pretty straightforward: Borrowers can reduce monthly costs either by extending payments over 25 years or by keeping the 10-year period but starting with smaller monthly payments that gradually increase over time.

Four more plans tie payment schedules to how much the borrower earns, each with different thresholds, eligibility, and terms. Those plans are far from perfect, but advocates for student borrowers generally like them because they provide graduates with flexibility and typically forgive the remainder of the debt after 10 to 25 years. For a long time, the Department of Education struggled to get students to use the plans, though recently borrowers are signing up in greater numbers.

The proposal rolls up a number of suggested improvements into one comprehensive attempt to fix the two biggest problems: the complexity of having so many options, and the relatively low participation by borrowers. Not unlike the successful effort to encourage automatic enrollment in retirement savings plans, the groups advocate what they call “auto-IBR,” short for income-based repayment. The plan would change the default payment option from the standard 10-year term to a repayment schedule that’s tied to a percentage of the borrower’s income and eventually forgives the remaining balance after a certain period of time. It also suggests the payments be automatically deducted from a borrower’s paycheck, similar to the way Social Security is collected, an idea championed last year by Representative Tom Petri, a Republican from Wisconsin.

The plan recommends various ways to make this work. One option is to require borrowers to pay 18 percent of everything they earn above $25,000 a year; another sets the payment level at 10 percent of income above $10,000 a year. The proposal also suggests longer terms for borrowers who take out a lot of debt, at least $50,000 or $60,000 in different scenarios. That’s to minimize giving a disproportionate benefit to students who borrow a lot—looking at you, law students!—and could see huge amounts forgiven. While this all may sound a bit complicated, it’s far simpler than the current situation.

Source: http://www.businessweek.com/articles/2014-03-24/student-loan-payments-can-be-simplified-reform-advocates-say

Get Financially Fit

Financial Literacy

Develop healthy habits for a secure financial future with the resources below from Nelnet. Get savvy about finances, build a budget, and protect yourself and your financial future. If there’s a topic you’d like to learn more about, send us an e-mail at Ideas@Nelnet.net or follow us on Facebook or Twitter.

Money Mondays Webinar Schedule

Get smart about money by attending a brief webinar each Monday at 2:00 PM or 4:30 PM (Eastern). We examine various aspects of personal financial wellness to better equip you to build wealth. Topics include Personal Finance 101, Saving and Investing Basics, and Understanding the Implications of Credit Card Use. Check out the registration page to see what’s available this month.

Worksheets, Resources and Tips

You need a PDF viewer similar to Adobe® Reader® to view and print these documents.

Source: https://www.nelnet.com/Get-Financially-Fit/

Taking a break from payments

Sometimes it may seem impossible to make your student loan payment. Maybe you decided to go back to grad school, your entry-level salary isn’t what you expected, or a health condition prevents you from working—but you have deferment and forbearance options to postpone your payments and bring your account current without hurting your credit. Each option has its own eligibility rules and time limits. Read on to see which fits your unique situation—we almost always have a solution for you.

Take a Break from Payments

Both deferments and forbearances give you a break from monthly payments for a set period of time. Many options are available to meet a variety of needs. If you are having difficulty making payments and want to see which options fit your specific situation, log in to your account and click Postpone My Payment to see which deferment or forbearance works best for you. Of course, you can also call us at (888) 486-4722 to talk through your options.

  • Log in to your account and click Postpone My Payment to apply for deferment or forbearance. You can also call us at (888) 486-4722.
  • Learn more about the difference between deferment and forbearance.
  • Calculate accrued interest while in deferment or forbearance. (To avoid capitalization, you may choose to pay accruing interest or even small payments toward the balance.)

Explore Options Now

Avoid Default With Deferment or Forbearance

About Deferment

If you are experiencing financial hardship, go back to school, are unemployed, or are on active duty military service, postponing payments with deferment may be right for you. Subsidized Stafford loans and subsidized consolidation loans will not accrue additional interest, so your balance after the deferment period will be the same as when it started. However, for unsubsidized Stafford loans, PLUS loans, SLS loans, or unsubsidized consolidation loans, interest will accrue during the deferment period, so it’s wise to pay at least the interest on your loan each month. This will prevent your interest from being capitalized, or added to the principal of your loan, essentially increasing your total balance and requiring you to pay more in the long run.

About Forbearance

If you work an internship, perform certain types of community service, or find yourself experiencing financial hardship, you may be qualified to postpone payments with forbearance. All loans accrue interest during forbearance, so it’s smart to pay at least the monthly interest during this period to avoid interest capitalization. Forbearance resolves any delinquency on the account—log in to your account and click Postpone My Payment to see if you’re eligible. You can also call us at (888) 486-4722.

Available Deferments

The federal government has allowed for these deferment options. Read on to see if these situations apply to you. Remember—just because you are eligible for a deferment does not mean you are required to request it; if you feel you can make payments on your loan, you are encouraged to do so.

Source: https://www.nelnet.com/Postpone-Your-Payments/