YOUR MONEY, YOUR FUTURE ADULTING 101

WHY SHOULD YOU CARE? $1.44 trillion in total U.S. student loan debt Student loan delinquency rate of 11.2% (90+ days delinquent or in default) Average monthly student loan payment (for borrower aged 20 to 30 years): $351 Source: Federalreserve.gov Click on picture for video or go to https://www.youtube.com/watch?v=2LwR4Kmv4nk

STUDENT LOANS Private Loans Federal Loans Tend to have higher interest rates and less flexibility in repayment. Try to use Federal Loans first. Federal Loans Direct Subsidized Direct Unsubsidized Direct Plus Federal Perkins

For undergraduate students Direct Subsidized Direct Unsubsidized Direct PLUS Federal Perkins For undergraduate students Given by government based on need Government will pay interest while a student Total Maximum: $23,000 For undergrad or grad students Not based on need Higher interest rates for grads or professional Government does NOT pay interest. Maximum: $31,000 For parents or grad students Not based on need. Interest charged for life of loan Dependent on credit Maximum: Cost of attendance* For undergrad or graduate students Students with significant financial need Not charged interest while a student Your school is the lender Maximum: $5,500 per year, $8000 grad or prof. *Less any subsidized loan amount

STUDENT LOANS Grace period: Standard Repayment = 10 years 6 months for Direct Loans 9 months for Perkins Loans No grace period for PLUS loans Standard Repayment = 10 years Income Driven Repayment Plans studentaid.ed.gov While you’re in school: Try to pay interest payments on unsubsidized loans Student loan money is not extra money! Try to avoid credit card debt if possible. If you have student loan money left over after you pay your school expenses, ask the school to return the funds to your lender. The less money you borrow now, the less money you must repay later. And pay the interest now instead of deferring it. The earlier you pay interest on your student loans, the less money you will shell out in the long run.

BOOKS Did you know the campus book store is one of the most expensive places to buy text books? Try one of these: Bookrenter.com Bookbyte.com Slugbooks.com Textbookme app

BOOKS

LIVING EXPENSES On Campus Off Campus On campus: Everything is included, have an RA looking out with you, usually share a small room with a roommate. Be careful choosing a meal plan. They are expensive if you don’t use it. Probably don’t need unlimited plans. SOU costs: $7000 to $11,000 per school year. Off campus: Must pay for everything on your own, more space and privacy. Don’t forget all costs: utilities, cable, internet, transportation to campus, groceries, rent. Sharing an apartment with one roommate in Ashland rent $4500 or more per school year. Also have to add all other costs!

LIVING EXPENSES MONEY SAVING HACKS Renter’s Insurance: Can help you replace your belongings after a covered incident in your home, such as a fire or burglary. Average renter owns about $20,000 in personal property Average cost for renter's insurance is about $12 per month for $30,000 worth of property coverage and $100,000 of liability coverage.

LIVING EXPENSES MONEY SAVING HACKS Reliable Roommates Interviews, verification of income, stability Be a Smart Consumer, Cool Apps TUN Uconnection Epicurous GasBuddy Local Discounts Dining Discounts Meal Planner Cheap Gas Grocery IQ Hooked Redlaser Grocery List Local Deals Scan barcodes to see better deals

CREDIT CARDS Can be a good way to build credit. A great tool if used wisely. Rogue Student Silver Visa Must be enrolled in college $500 - $2,500 limit At least 6 months at current job. One low rate for everything!

MONEY SAVING HACKS Stick to a budget, whatever method works for you. Invest in yourself! Buy your books used Pay interest on unsubsidized loans while in school Graduate on time Keep applying for scholarships Fastweb app If you’re on a dining plan, use it! To go? Campus activities are usually free. Budget: Mint, mvelopes, excel, pen and paper, you need a budget, learnvest Invest: Put at least 10% in savings. Look for spare change programs like Rogue Save the Change or apps like Acorns Books: Slugbooks, Bookbite Graduate on time: One of the most costly mistake is failing classes or not taking enough credit. An extra term in college can cost you tens of thousands of dollars!

MONEY SAVING HACKS Sell your notes Sell your old stuff and buy used Flash notes, Study Soup Sell your old stuff and buy used Twice, Thread up, Poshmark Plan your meals and eat in if you can Epicurious, groceryIQ Use public transportation if possible Make your own coffee! Look for campus jobs like RA Use student discounts! Epicurious: A meal planning app Public Transportation often discounted for college students. RVTD $15 per term. May save money on gas, insurance and car payment. If you buy a $4 coffee every school day for one school year, it will cost you almost $1000! Being an RA is a hard job but you get FREE room and board! Student discounts: Uconnection, TUN, Hooked

COLLEGE BUDGET ACTIVITY Help Karim, a freshman at SOU create a MONTHLY budget! INCOME: Part Time Job Tax Refund $800/month $480/YEAR (÷12 = $______/month) Financial Aid Support from Parents (after tuition) $6000/YEAR $500/month (÷12 = $______/month) Student can use their own expenses in the budget worksheet or use the example of Karim in their booklets. If they use the example, they should get that Karim has $324 left after expenses. Karim is not following the 50/20/30 rule, his expenses are too high! Students should allocate his last $324 dollars with at least 10% ($184) going to savings.

EXPENSES Rent Utilities Internet Renter’s Insurance Groceries $700   Utilities $58 Internet $35 Renter’s Insurance $25 Groceries $250 Auto Loan $130 Gas $60 Auto Maintenance $360 PER YEAR (÷12 = $________ /month) Auto Insurance $600 EVERY 6 MONTHS (÷ 6 = $________ /month) Laundry $15 Cell Phone $63 Books $300 EVERY 6 MONTHS Student can use their own expenses in the budget worksheet or use the example of Karim in their booklets. If they use the example, they should get that Karim has $324 left after expenses. Karim is not following the 50/20/30 rule, his expenses are too high! Students should allocate his last $324 dollars with at least 10% ($184) going to savings.

DEBT PAYOFF METHODS Before you choose a method: Make a list of all debts Include balance, monthly payment, and interest rate.

SNOWBALL METHOD Pay the minimum on all accounts. Put extra towards the account with the lowest balance first. When paid off, pay down the account with the next lowest balance.

AVALANCHE METHOD Pay the minimum on all accounts. Put extra towards the account with the highest interest rate. When paid off, pay down the next highest interest rate.

POST-ASSESSMENT