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INTRODUCTIONWe want your student finance workbook to be a helpful tool for you.

We believe that every Wyotech student should have the tools necessary to make informed

financial decisions. We put this information in one place so you know where to look when you

have questions.

We advise that you keep your workbook in a safe place so you can access your financial

information whenever you need it.

If you have questions that this workbook can’t answer make sure to ask your student finance

planner. If they don’t have the answer right away, they will help you find it.

My Program:

Anticipated Graduation Date:

School ID Code:

Student ID Number:

Student Finance Planner:

Student Finance Planner Contact:

Although we hope that this workbook will be useful to you, you are not required to complete this workbook or discuss it with your student finance planner. You are not required to use or complete the workbook to enroll in school. These materials discuss strategies that some people might use for budgeting and managing finances. Credit scoring methods and formulas are not publicly known; therefore, Zenith Education Group, Inc. (Zenith) and Wyotech make no assurances that any action will produce a specific result or impact a credit score. Rather, the information presented here provides examples of various financial strategies. Everyone’s situation is different, and you are responsible for assessing your own financial situation. Zenith and Wyotech are not financial planning or credit counseling services, and Zenith and Wyotech do not offer financial planning or credit counseling services. The information in these materials is provided only as general information and is not intended to be relied upon as personal financial advice. These materials include information about other companies and websites which are not under Zenith’s or Wyotech’s control or affiliated with Zenith or Wyotech in any way. The inclusion of any websites or references to other companies does not imply a recommendation or endorsement of the views expressed within those websites or by those companies.

WELCOME TO YOUR F INANCIAL WORKBOOK!

3

FINANCING OPTIONS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4

BREAKING DOWN THE COST OF SCHOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

BREAKING DOWN THE SHOPPING SHEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

UNDERSTANDING YOUR LOANS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 11

KEEPING TRACK OF YOUR STUDENT LOANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

REPAYMENT PLAN OPTIONS BASICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

REPAYMENT ESTIMATOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

LOAN GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

APPLYING FOR FINANCIAL AID � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 24

FINANCIAL HEALTH � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 29

BUDGETING & SAVINGS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 30

YOUR CURRENT BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

SAVINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

BUDGETING - METHODS AND RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

CREDIT SCORE � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 42

BANKING� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 49

HOW TO CHOOSE A CREDIT CARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

SCAMS & SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

STUDENT RESOURCES & TOOLS � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 54

GLOSSARY � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 69

CONTENTS

FINAN

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FINANCING OPTIONS

We know how important it is to balance your finances with your educational goals. Our

payment options were carefully designed with you in mind. Here are the various financing

options, terms and required documents to begin your financing selection. Talk with family,

trusted friends and your student finance planner to figure out which plan is best for you.

■■ Cash allows you to pay for your program or term in full before you begin school, or pay in

installments over the length of your program. Paying in cash has several benefits, including

having no loans that accrue interest from loans and no debt following graduation or

withdrawal from school.

■■ Employer Direct Bill/Agency Contact is another option that allows some students to

receive tuition assistance from their employer or workforce agency. If you are eligible for

employer direct bill or agency contract, submit an approved tuition authorization form or

tuition voucher completed and signed by an official employer/agency representative. The

authorization voucher must be submitted to the Student Finance office prior to the first

class session in order for the school to bill the employer/agency.

Financial Aid is designed to help students pay for school. There are different types of financial

aid, based on eligibility. Your student finance planner can help you figure out whether you

qualify for any of the following types of aid:

■■ Federal Pell Grant is a need-based federal grant for undergraduate students and typically

does not require repayment.

■■ Federal Supplemental Education Opportunity Grant is a grant that’s available to

undergraduate students and typically does not require repayment. Check with your

student finance planner to learn about the selection criteria for this grant.

■■ Federal Work Study is a need-based program that can help you earn money while in

school. Jobs are provided both on and off campus, and hourly wages are paid directly to

you. Ask your student finance planner if your school participates in this program.

■■ The Zenith Student Grant is a multimillion-dollar institutional program with grants awarded

on an annual basis to students of Everest and Wyotech schools owned by Zenith Education

Group who demonstrate financial need. Please see your student finance planner for more

information.

FINANCING OPTIONS

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FINANCING OPTIONS

The Federal Direct Loan Program has low-interest government-funded loans including

Federal Stafford Loans, Federal Parent Loans for Undergraduate Students (PLUS) and Federal

Consolidation Loans.

FEDERAL SUBSIDIZED STAFFORD LOAN

■■ A need-based loan with a fixed interest rate.

■■ Interest is paid by the government while you are in school at least half-time. The amount

to be repaid includes the original loan amount plus interest.

■■ Interest begins to accrue when you leave school or drop below half-time status.

■■ Repayment begins six months after you graduate, leave school or drop below half-time

status.

FEDERAL UNSUBSIDIZED STAFFORD LOAN

■■ A non-need-based loan with a fixed interest rate.

■■ Available to all eligible students regardless of income.

■■ Interest begins to accrue at the time of disbursement.

■■ You are responsible for paying accrued interest while you are still in school, but you can

also choose to defer and capitalize your interest payments, which increases the total

amount of the loan that must be repaid.

■■ Repayment begins six months after you graduate, leave school or drop below half-time

status.

PARENT LOAN FOR UNDERGRADUATE STUDENTS (PLUS)

■■ This is a credit based loan.

■■ If you qualify as a dependent, your parents can use this interest-bearing loan to borrow up

to the total cost of your education, minus any other aid for which you are eligible for.

■■ The interest rate is fixed. Interest begins to accrue at the time of disbursement.

■■ Repayment typically begins within 60 days after the loan has been fully disbursed.

Note: Additional programs may be available. See your student finance planner for more information.

FINANCING OPTIONS - FEDERAL DIRECT LOANS

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FINANCING OPTIONSTHE ESTIMATED COST OF SCHOOL FOR ONE ACADEMIC YEAR (DIRECT COSTS)

Tuition

Books & Fees

Direct Cost

Grants

Scholarships

Other Funds

Remaining Balance

*This information is an estimate and subject to change.

BREAKING DOWN THE COST OF SCHOOL - ESTIMATE *

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FINANCING OPTIONSTHE ESTIMATED COST OF SCHOOL FOR ONE ACADEMIC YEAR (DIRECT COSTS)

Tuition

Books & Fees

Direct Cost

Grants

Scholarships

Other Funds

Remaining Balance

*This information is an estimate and subject to change.

BREAKING DOWN THE COST OF SCHOOL - ESTIMATE *

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FINANCING OPTIONS

The Consumer Financial Protection Bureau’s (CFPB) shopping sheet1 is a tool designed to help

you better understand your actual costs of school and the type/amount of grants and loans

for which you qualify. You will receive the shopping sheet during your meeting with your

student finance planner. On the next page, you will find a few key points to help guide you

through the shopping sheet:

BREAKING DOWN THE SHOPPING SHEET

MM / DD / YYYY

University of the United States (UUS)Student Name, Identifier

Estimated Cost of Attendance $X,XXX / yr

$

Total Grants and Scholarships ("Gift" Aid; no repayment needed) $X,XXX / yr

$

Net Costs $X,XXX / yr

$

$

Family Contribution $X,XXX / yr

Payment plan offered by the institution

Parent or Graduate PLUS Loans

Military and/or National Service benefits

Non-Federal private education loan

Tuition and fees X,XXX

Housing and meals X,XXX

Books and supplies X,XXX

Transportation X,XXX

Other education costs X,XXX

Grants and scholarships from your school X,XXX

Federal Pell Grant X,XXX

Grants from your state X,XXX

Other scholarships you can use X,XXX

(Cost of attendance minus total grants and scholarships)

Options to pay net costs

Work-Study (Federal, state, or institutional) X,XXX

Federal Perkins Loan X,XXX

Federal Direct Subsidized Loan X,XXX

Federal Direct Unsubsidized Loan X,XXX

*Recommended amounts shown here. You may be eligible for a different amount. Contact your financial aid office.

(As calculated by the institution using information reported on the FAFSA or to your institution.)

Graduation Rate

Percentage of full-timestudents who graduatewithin 6 years

XX.X%

Loan Default Rate

Percentage of borrowersentering repayment anddefaulting on their loan

X.X%

This institution

X.X%

National

Median Borrowing

Students who borrow atUUS typically take out$X,XXX in Federal loansfor their undergraduatestudy. The Federal loanpayment over 10 years forthis amount isapproximately $X,XXX permonth. Your borrowing maybe different.

Repaying your loans

To learn about loan repayment choices

and work out your Federal Loan

monthly payment, go to:

http://studentaid.ed.gov/repay-

loans/understand/plans

For more information and next steps:

University of the United States (UUS)

Financial Aid Office

123 Main Street

Anytown, ST 12345

Telephone: (123) 456-7890

E-mail: financialaid@uus.edu

Customized information from UUS

1

2

3

4

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1 See, e�g�, “Know Before You Owe: Student loans project” http://www�consumerfinance�gov/students/knowbeforeyouowe/

10

FINANCING OPTIONS

Here are a few key points to help guide you through the CFPB’s shopping sheet. If you have

any additional questions, feel free to ask your student finance planner.

BREAKING DOWN THE SHOPPING SHEET

Estimated Cost of Attendance - The total amount it will cost you to go to school during the current

school year. The amount includes tuition, fees, books and supplies (direct costs) as well as housing,

meals, transportation and other education costs (indirect costs). You are responsible for the direct costs

(tuition, fees, books and supplies). The indirect costs are only an estimate and may not reflect your

financial situation.

Grants & Scholarships to Pay for College - Student aid funds that do not have to be repaid. Grants

are often need-based, while scholarships are usually merit-based. Occasionally you might have to pay

back part or all of a grant if, for example, you withdraw from school before finishing a semester. Check

with your student finance planner for more information and resources.

What Will You Pay for College - An estimate of the actual costs that you or your family will need to pay

during the school year to cover education expenses at a this institution. Net costs are determined by taking

the institution’s cost of attendance and subtracting your grants and scholarships. Uses this formula to

calculate the Net Cost of school:

■■ Cost of Attendance – Total Grants & Scholarships = Net Cost

Note that the above formula includes indirect costs, which you don’t actually pay to the school. To

determine your direct costs use the following formulas:

■■ 1) (Tuition & Fees) + (Books & Supplies) = Direct Costs

■■ 2) Direct Costs – (Grants & Scholarships) = Remaining Balance

Work Options - A federal student aid program that provides part-time employment while you are

enrolled in school to help pay your education expenses.

Loan Options - Borrowed money that must be repaid with interest. You can find more information

about federal loans at StudentAid.gov and the Smart Borrowing brochure provided by your

student finance planner.

Other Options – The family contribution is reported to you on your Student Aid Report, also known

as the SAR and is based on the financial information you provided on your FAFSA. This section also

provides a few additional options to help pay for the direct costs of school not covered by funding

listed above. Check with your student finance planner for more information and resources.

1

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6

UNDE

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R LO

ANS

12

UNDERSTANDING YOUR LOANS

The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s

central database for federal student aid. It can help you keep track of all your federal student

loans and grants in one centralized location. You will need your FSA ID to log in to NSLDS.

The FSA ID is created when submitting your FAFSA (Free Application for Federal Student Aid)

for the first time. You can also create your FSA ID on the NSLDS website.

You can use NSLDS to check your federal student loan information. It is updated every time

a new federal student loan is disbursed to you, and periodically with updates from your

servicer(s). NSLDS is a resource available to you at any point that you have federal student

loan aid, whether you are in school or out of school.

USING NSLDS

Once you have created your FSA ID, you will be able to view your federal aid information

(Pell grants and loans) by going to NSLDS�ed�gov, clicking on “Financial Aid Review” and

logging in with your FSA ID and password. This will help you keep track of your Pell grant

usages, loan balances and any outstanding interest owed.

KEEPING TRACK OF YOUR STUDENT LOANS

13

UNDERSTANDING YOUR LOANS

Federal Direct student loan repayment begins when you graduate, leave school or once you

are no longer enrolled at least half time� You will receive a 6-month grace period (see below)

on your Direct Subsidized and Unsubsidized Loans during which you are not required to make

loan payments. You must begin repayment at the end of your grace period.

Make sure that both your school and loan servicer know that you are no longer enrolled. If

you don’t begin making payments when required, there is the possibility that you will lose

repayment incentives you may have received or even go into default.

Your school is required to provide you with exit counseling before you graduate or withdraw.

Check with your school to see how exit counseling is conducted, whether as a personal or

group exit interview or as a session that you can complete online.

GRACE PERIOD

Grace periods begin the day after you stop attending school on at least a half-time basis.

Once your grace period ends, you must begin repaying your federal student loan(s).

If you re-enroll in school at least half-time before the end of your grace period, you will

receive the full 6-month grace period when you stop attending school or drop below half-

time status.

There is no grace period for Direct PLUS Loans—the repayment period for a PLUS Loan

begins on the day after the final loan disbursement is made.

It is important to note that you can always begin repaying the principal balance on your

student loans while you are in school. To do this, call your servicer and tell them you want to

make a principal payment.

WHEN DOES REPAYMENT BEGIN?

14

UNDERSTANDING YOUR LOANS

You’ll have the choice of several plans, and the loan servicer will notify you of the date when

your first payment is due. If you do not choose a repayment plan, you will be placed on

the standard repayment plan. Most Direct Loan borrowers choose to stay with the standard

repayment plan, but there are other options for borrowers who may need more time to repay

or who need to make lower payments at the beginning of the repayment period.

Your loan servicer will automatically enroll you in the standard repayment plan at the end

of your 6-month grace period� You can change repayment plans by contacting your servicer.

These repayment plans are offered to students completely free of charge through your loan

servicer.

REPAYMENT PLAN OPTIONS BASICS

Standard

Graduated

Pay-As-You-Earn‡

Income-Based*‡

Income-Contingent*‡

Up to 10 Years

Up to 10 Years

Up to 20 Years

Up to 25 Years

Up to 25 Years

*These plans require you to demonstrate that you are in financial hardship.‡Income-driven repayment plans require borrowers to re-apply annually.

Fixed amount of at least $50 per month

Payments start low and gradually increase over

time, usually every two years.

Payments change as your income changes. Up

to a max of 10% discretionary income.

Payments change as your income changes. Up

to a max of 15% of discretionary income.

Payments calculated each year and is based off

of income and family size

PLAN TIME MONTHLY PAYMENT

15

UNDERSTANDING YOUR LOANS

Here is a partial list of pros and cons for each repayment option. When you enter repayment,

this chart may help you to decide which repayment option is the best for you. You can

also calculate the anticipated monthly payment using the Federal Student Aid Repayment

Estimator. Instructions for the repayment estimator can be found on page 18.

REPAYMENT PLAN PROS AND CONS

*These plans require you to demonstrate that you are in financial hardship.‡Income-driven repayment plans require borrowers to re-apply annually.

Higher monthly payments

Pay more interest over time

Pay more interest over time

Longer repayment period

Higher payments than other

income-based options

Longer repayment period

Pay more interest over time

Potentially the option with the

longest repayment period

Larger loan total

Lose your grace period

Inferior loan discounts

Can only consolidate once

Pay less interest over time

Low initial payments that

slowly increase

Payments based on income

Payments will not exceed

10% of discretionary income

Payments based on income

Payments will not exceed

15% of discretionary income

Payments based on income

Lower monthly payments

Potentially a reduced

interest rate

Resets the clock on

forbearance and deferment

Standard

Graduated

Pay-As-You-Earn‡

Income-Based*‡

Income-Contingent*‡

Consolidation

PLAN PROS CONS

16

UNDERSTANDING YOUR LOANS

We want the best for our students and are here every step of the way to help you, but we

know life happens. If at some point you need to drop, we want you to be prepared.

Speak with the staff if you are considering dropping out or feel like it is your only option.

They’re there to support you and your success and will do everything they can to help you

make the best decision for your circumstances.

Dropping out starts the repayment process� Repayment of federal student loans begins 6

months after you withdraw from school. Even if you did not receive a diploma, you’re still

required to repay your student loans.

Dropping out as a diploma/certificate student impacts which classes you can take� If you drop

a class you will have to wait until that class is offered again, which can take up to 9 months.

Dropping out as a degree student can impact your course credit and the cost of your

schooling� Depending on when during the semester you drop out, you may not receive a

refund of money that you used to pay for the classes, including loans. You will also have to

pay this cost again if you plan on retaking any of the courses at a later date. In addition, you

will not receive course credit for any class(es) you were taking that semester.

WHAT IF YOU DON’T PAY BACK YOUR LOANS?

If you are not able to make payments on your student loans as scheduled, your loans

will become delinquent and may eventually go into default� Default does not happen

immediately, so if you miss a payment, call your loan servicer to talk about your options.

You may be eligible to enter an income-driven repayment plan, or receive a temporary

postponement of your payments through a forbearance or deferment. These options may

help you avoid defaulting on your federal student loans. Federal student loans officially enter

default after failing to make a payment for 270 days. Options may be available to resolve the

default. Contact your servicer and ask for any available options. Servicer contact information

can be found on page 68�

WHAT HAPPENS IF YOU DROP OUT?

17

UNDERSTANDING YOUR LOANS

Initiation of the administrative wage garnishment process - The government can ask your

employer to withhold money from your paycheck and send the money to the government,

this is known as “administrative wage garnishment.” The Treasury Offset Program (TOP) can

also start, meaning the government will take any funds owed to you to apply toward your

federal student loan balance. This can include federal benefits like income tax refunds, social

security income and disability checks.

The unpaid balance of your loan is immediately due in full, which includes principal and interest.

Your student loan debt will increase� Late fees, additional interest, court costs, collection

fees and other costs associated with the collection process will be added to your total federal

student loan balance.

You lose eligibility for federal help, which includes deferment, forbearance, repayment plans,

and any additional federal student aid.

Your credit may be impacted, which means that things like purchasing real estate or applying

for a credit card may become challenging.

Legal action can be taken against you by the government.

HOW TO GET OUT OF DEFAULT

Paying back your loan in the full amount� This option is always available to you.

Loan rehabilitation can remove the default from your credit� Loan rehabilitation is when you

make payments for 9 voluntary, on-time monthly payments within 10 months, for as low as

$5 a month, to remove your default and return the loan to good standing. Once the loan is

rehabilitated, you may regain eligibility for benefits that were available before you defaulted.

Those benefits may include deferment, forbearance, a choice of repayment plans, loan

forgiveness, and eligibility for additional federal student aid. You may only rehabilitate your

federal loans once, so if you rehabilitated your federal student loans after August 2008, this is

not an option for you.

Loan consolidation can also help you get out of default. However, before you are allowed to

consolidate a defaulted loan, you typically need to make consecutive and voluntary payments

on your loan. Generally, you may only consolidate once, so if you have already consolidated

your student loans, this may not be an option for you.

THE CONSEQUENCES OF DEFAULT

18

UNDERSTANDING YOUR LOANS

To figure out how much you will be paying monthly under different repayment options,

follow the steps below:

(1) Go to Studentloans.gov.

(2) Hover your mouse over the “Managing Repayment” tab.

(3) Click on “Repayment Estimator.”

REPAYMENT ESTIMATOR

18

19

UNDERSTANDING YOUR LOANS

(4) If you have an FSA ID, log in with your username and password. If you do not have an

FSA ID, click “Proceed”

(5) Start adding in your loan amounts by clicking on “Add Loan(s).” Note: If you logged

in with your FSA ID and also have previous loans, those loans will automatically be added

into the repayment estimator�

REPAYMENT ESTIMATOR

20

UNDERSTANDING YOUR LOANS

(6) You can now enter your loan amount, interest rate, and the type of loan (i.e.

Subsidized/Unsubsidized).

(7) Next, you will enter your Tax Filing Status, Adjusted Gross Income, Family Size, and

your state of residence.

REPAYMENT ESTIMATOR

21

UNDERSTANDING YOUR LOANS

(8) Once you have entered all of the information, click “Calculate Results.” Scroll down

the page and you will see a chart much like the one below. Use the chart on this page to fill

out your estimated repayment options for future reference.

REPAYMENT ESTIMATOR

PLAN REPAYMENTPERIOD

MONTHLYPAYMENT

TOTALINTEREST

TOTALAMOUNT PAID

Standard

Graduated

Pay-As-You-Earn‡

Income-Based*‡

Income

Contingent*‡

*These plans require you to demonstrate that you are in financial hardship.‡Income-driven repayment plans require borrowers to re-apply annually.

22

UNDERSTANDING YOUR LOANS

A student loan is money you borrow for school and must repay with interest.

Aggregate loan limit is the total amount you are allowed to borrow in federal student loans

for undergraduate and graduate study.

Annual loan limit is the total amount you are allowed to borrow each academic year.

A loan servicer is an entity that maintains a loan on behalf of a loan holder. A federal loan

servicer is a loan servicer for the U.S. Department of Education.

The principal is the loan amount plus any capitalized interest. During repayment, the principal

is usually referred to as the outstanding (unpaid) principal balance.

Interest is the cost to borrow money. Interest is calculated as a percentage of the outstanding

principal balance. Interest on federal loans is established each year by the federal government.

A disbursement is a portion of a federal student loan that the school pays out by applying the

funds to the student’s school account or by paying the borrower directly. Students generally

receive their federal student loans in more than one disbursement.

The repayment period is the time period over which you must repay your federal student loan.

It may range from 10 to 30 years, depending on loan amount, loan type and repayment plan.

A deferment is a period during which repayment of your federal student loan is temporarily

delayed because you are still in school, of an economic hardship, a national emergency, active

military duty, or during the 13 months following active military duty. You do not have to make

payments during the deferment period but interest will accumulate on your unsubsidized

loans during the deferment, and the amount you pay in the future will be higher.

Forbearance can be granted by your federal student loan servicer if you are not able to

make your scheduled loan payments and you do not qualify for a deferment. It allows you

to stop making payments or reduce your payment for up to 12 months. There are two types

of forbearance: discretionary and mandatory. Talk with your loan servicer for more details.

Interest on your subsidized and unsubsidized loans will continue to accrue, and the amount

you pay in the future will be higher.

LOAN GLOSSARY

23

UNDERSTANDING YOUR LOANS

Consolidation allows you to combine multiple federal loans into one loan. This can be easier

to manage if you have multiple loans and loan servicers. It is also possible to get out of

default by consolidating your loans. However, consolidation can not be undone and you may

end up paying more in interest over time. Private loans and parent PLUS loans cannot be

consolidated with federal loans. For more information about consolidation contact:

Loan Consolidation Information Call Center: 1-(800) 557-7392

LOAN GLOSSARY CONTINUED

APPL

YING

FOR

FINAN

CIAL A

ID

APPLYING FOR FINANCIAL AID

25

To apply for federal financial aid, you must fill out the Free Application for Federal Student Aid

(FAFSA). You will need the following documents with you while completing the FAFSA:

■■ School ID code (provided at the front of this workbook)

■■ Parents’ & student’s Social Security number (for dependent students)

■■ Driver’s license number

■■ The previous year’s tax return or federal tax information

■■ If married, you will need both yours and your spouse’s tax return

■■ If dependent, you will need your parents’ tax return

■■ Cash, savings, and checking account balances

■■ Your Federal Student Aid ID (FSA ID) username and password

Below are the instructions to fill out a FAFSA. If you have questions, feel free to call your

financial aid planner, they are more than happy to help. You may also contact the Federal

Student Aid Information Center at 1-800-433-3243.

(1) Go to the student portal at my�wyotech�edu and login�

(2) Click on the “Resources” tab�

(3) Click on “7 easy steps to completing the FAFSA�”

(4) Follow the instructions in the video to complete your FAFSA� Note: When the FAFSA

asks you for your income information, you may select the IRS Data Retrieval tool� Ask

your Student Finance Planner for instructions on how to use this tool�

FILLING OUT YOUR FAFSA

26

APPLYING FOR FINANCIAL AID

To access the student portal, follow these instructions:

(1) Retrieve the username and password information provided to you in your welcome

email. If you did not receive an email, contact your Student Finance Planner.

(2) Go to my.wyotech.edu and log in with your username and password.

(3) Answer your security question.

(4) Choose a new password and click “Submit.”

STUDENT PORTAL INSTRUCTIONS

27

APPLYING FOR FINANCIAL AID

The Master Promissory Note (MPN) is a legal document in which you promise to repay

your federal student loan(s) and any accrued interest and fees to the U.S. Department of

Education. It also explains the terms and conditions of your loan(s).

If you wish to apply for a Direct Loan, you must also complete a Master Promissory Note

(MPN). To complete the MPN, follow these steps:

(1) Go to the Student Loans website at: www.studentloans.gov.

(2) Click “Log In” and enter your FSA ID information.

(3) Select “Complete Master Promissory Note.”

(4) Select the type of MPN you would like to complete (i.e. subsidized/unsubsidized).

(5) Complete the required steps and submit your MPN for approval.

(6) If you ever need to view your MPN again, you can view it by clicking on

“Completed MPNs” under the “My Loans Documents.”

Remember, the MPN needs to be completed in one session.

The MPN is good for up to 10 years. This means that once you sign the MPN, you will

not have to sign it again for any additional loans for the next 10 years. However, although

you are not signing a new promissory note for each new loan, the loans are still of equal

importance.

MASTER PROMISSORY NOTE

28

APPLYING FOR FINANCIAL AID

To get started with iGrad, follow these instructions:

(1) Go to my.wyotech.edu and login with your username and password.

(2) Click on the “Resources” tab.

(3) Click on “Entrance Exam.” This will take you to the iGrad website.

(4) Click “Sign up free” and enter your information to create an account.

(5) Click on the link that says “Entrance Counseling.”

(6) Follow the instructions and answer each question to complete Entrance Counseling.

(7) Once completed, your results will be sent to the school where they will be able to

confirm your successful completion of Entrance Counseling.

iGRAD INSTRUCTIONS (ENTRANCE COUNSELING)

FINANCIAL HEALTH

WHAT YOU WILL LEARN ABOUTThe rest of this workbook provides a brief overview of financial health. It gives general

information about budgeting, saving, credit, banking, and security.

We want you to have the financial tools you need to make an informed decision about

school. While in school or after school, you might want to refer to this section of the

workbook as a starting point to re-evaluate your finances.

Reminder: These materials discuss general strategies for budgeting and managing finances. Zenith and Wyotech make no assurances that any action will produce a specific result or impact a credit score. You are responsible for assessing your own financial situation. Zenith and Wyotech are not financial planning or credit counseling services, and Zenith and Wyotech do not offer financial planning or credit counseling services. The inclusion of any websites or references to other companies does not imply a recommendation or endorsement of the views expressed within those websites or by those companies.

BUDG

ETIN

G &

SAVIN

GS

31

BUDGETING & SAVING

Fill out this budgeting form with your own information based on your current income. If you

don’t have a traditional income stream, consider all of the money you have coming in each

month. We will revisit this budget later in the workbook in the “Future Budget” section where

we will look at your potential future income and how that might affect your budget.

YOUR CURRENT BUDGET

$

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Take-Home Pay

Total Income

Rent/Mortgage

Insurance

Loan Payments

Tuition & Fees

Utilities

Cell Phone

Groceries

Transportation

Laundry

Child Care

Pets

Credit Card Payments

Dining Out

Entertainment

Household

Total Expenses

Total Income

– Total Expenses

Net Income

Monthly Income Monthly Expenses

32

BUDGETING & SAVING

Tracking expenses can help even financially savvy folks learn recognize habits in new things

about their spending. Use this chart to keep track of your expenses for a few days. For each

item, consider whether it is a “want” or a “need.” This may help you identify ways to reduce

your spending.

DAILY EXPENSE TRACKER

Date Expense Cost of ExpenseNeed or

WantCan You

Reduce This?

33

BUDGETING & SAVING

After one month of following your budget, a financial emergency happens and will cost you

$300. Using the budget you created on the previous page, how do you adjust the budget to

account for the extra expense? Don’t forget to add your new expenses into your new budget!

BUDGETS ARE FLEXIBLE – LIFE HAPPENS

Insert the Total Income from previous page

Total Income

Total Income

Total Expenses

Financial Emergency

Net Income

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$ Rent/Mortgage

Insurance

Loan Payments

Tuition & Fees

Utilities

Cell Phone

Groceries

Transportation

Laundry

Child Care

Pets

Credit Card Payments

Dining Out

Entertainment

Household

Total Expenses

MonthlyExpenses

Current Budget

New Budget

_

_

34

BUDGETING & SAVING

Now that we’ve looked at your current situation, let’s talk about how you expect things to

change after getting an education. The next exercise is based on your potential future budget.

First you will need to do some research on average entry level salaries in the field you are

planning on pursuing. Follow the instructions below to get started:

(1) Visit www.bls.gov

(2) Hover your mouse over the tab “Home”

(3) Click on “Pay and Benefits”

RESEARCHING POTENTIAL FUTURE SALARY

35

BUDGETING & SAVING

(4) The options presented on this page will allow you to filter information by various

categories such as area, occupation, or industry. We suggest clicking on “Wages by Area

and Occupation.”

(5) Next, click on “By State” under the section “Wage Data by State.”

RESEARCHING POTENTIAL FUTURE SALARY

36

BUDGETING & SAVING

(6) Find and select your desired state. Then, find the occupation you are considering

pursuing after graduation. Note: Since this is a long list, we suggest using the find option

by pressing Control+F (for Macs use Command+F) to search for occupations�

Use the chart below to write down the location and salary of the jobs you researched.*

*This information is subject to change depending on location and the date searched. You are solely responsible for the content of this chart, including locations, salaries, and determining whether the job titles you choose are jobs for which your program at school will qualify you. Employment is not guaranteed, but career services help is available for graduates.

RESEARCHING POTENTIAL FUTURE SALARY

JOB TITLE GEOGRAPHIC LOCATION SALARY RANGE

37

BUDGETING & SAVING

Based on your research of potential future salaries, fill out the budget below. This may give

you an idea of what your budget may look like in the future.

YOUR FUTURE BUDGET

Monthly Income Monthly Expenses

Take-Home Pay

Total Income

Rent/Mortgage

Insurance

Loan Payments

Tuition & Fees

Utilities

Cell Phone

Groceries

Transportation

Laundry

Pets

Clothing

Credit Card Payments

Dining Out

Entertainment

Household

Child Care

Total Expenses

Total Income

– Total Expenses

Net Income

$

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38

BUDGETING & SAVING

For many students, attending Wyotech requires relocation. If this applies to you, use this

budget to estimate your relocation expenses.

RELOCATION BUDGET

Monthly Income Monthly Expenses

Take-Home Pay

Total Income

1st Month’s Rent

Last Month’s Rent

Security Deposit

Plane Ticket

Gas

Food

Lodging

Truck Rentals

Incidentals

Storage

Utility Deposits

Household

Total Expenses

Total Income

– Total Expenses

Net Income

$

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$

$

$

$

39

BUDGETING & SAVING

Now that we’ve covered the basics of budgeting and how to identify unnecessary expenses,

you can start to think about what to do with any extra funds. This section details the basics

you need to know about starting a savings fund.

THE BASICS OF SAVING

Opening a savings account is the first step towards saving for your goals. Accounts opened

through a bank or credit union may give you easier access to your funds than other tools.

An emergency fund is a savings account that’s only used for emergencies, so you’re financially

covered when life gets tough. Many people recommend saving for 3-6 months of expenses.

Setting goals is an important first step to saving. We recommend that you revisit your savings

goals at least once a month to review your progress and make changes as needed.

Budgeting is another important step to saving for your goals. Please review our budgeting

section to learn more about how to fit savings into your budget.

401(k) accounts are savings accounts to which you make contributions from your paycheck.

The contributions go into a 401(k) account, with the employee choosing the investments

based on options provided under the plan. This is a great way to save for retirement.

EMERGENCY FUNDS

Emergency funds improve financial security by creating a safety net of funds that can be used

for emergency expenses. Here are two methods of determining how much to save:

■■ Save for 3–6 months of expenses. This way you’re able to sustain yourself in the event of a

loss of income or other emergencies (such as a flat tire or unexpected medical expenses.

■■ Save 20% of your income. This includes saving for emergencies and paying off debts that

will positively impact your future financial situation.

It’s up to you to decide how much to have in your emergency fund, but financial emergencies

typically affect food, housing, or job security. Save separately for “wants,” such as eating out or

going on a trip. It’s important to separate these kinds of savings to protect yourself in the face

of emergencies.

SAVINGS

40

BUDGETING & SAVING

When deciding how much to save, you should think about your goals. These goals could be

anything from buying a house to saving for a child’s education. Fill out the chart below with

your short, medium, and long-term goals. Then calculate the monthly savings and number of

months you will need in order to reach your goals.

SETTING GOALS

example: Down payment on a house $10,080 $120 84

example: Down payment on a car $3,000 $100 30

example: Relocation budget $600 $50 12

LONG-TERM GOALS (5+ YEARS)

MEDIUM-TERM GOALS (2–5 YEARS)

SHORT-TERM GOALS (6–12 MONTHS)GOAL AMOUNT

MONTHLY SAVINGS

MONTHS TO ACHIEVE GOAL

41

BUDGETING & SAVING

Budgeting is about what works best for you. What works well for one person might not be

the best method for someone else. Here are some general budgeting methods and resources:

The envelope method is when you get a stack of envelopes and label each one with an

expense (i.e. groceries or rent). When you receive money for a month, put the amount of

money budgeted for that category into the envelope. When you spend the money in the

envelope, you have spent everything in that category for the month.

Paper or excel spreadsheets allow you to write down all of your expenses and set a spending

goal for each category. Keep track of all purchases in each category to make sure you stay

below the limit you set.

Online financial resources or apps can do a lot of the work for you. They connect to your

bank account so you don’t have to calculate anything yourself. Set realistic goals and check

your account often so that you can adjust your spending based on your budget. Here are

a few websites that provide these functions, but there are many more out there if you are

looking for something different:

■■ Mint�com is a web-based financial management tool. It allows you to do things such as set

goals, help you budget, set bill reminders, and provide you with an estimated credit score.

■■ LevelMoney�com is a mobile financial tool that helps you track your cash flow and

provides a clear picture of where and how you are spending your money.

■■ PersonalCapital�com is an online tool that helps you manage your money and

investments. It also offers advice on how to manage your investments and plan for the

future.

Research financial resources and apps carefully to understand whether you will be charged

for the resource, and how your information will be protected�

BUDGETING - METHODS AND RESOURCES

CRED

IT SC

ORE

43

CREDIT SCOREA credit score is a number that is calculated based on information in your credit report. Credit

scores indicate to lenders and creditors how likely you are to pay back the debt you owe

based on your past borrowing behavior, payment history, and length of credit history.

THE IMPORTANCE OF CREDIT

Credit scores can influence your eligibility, costs, and rates of financial products like loans,

credit cards, and insurance. A good credit score may lead to lower costs/rates and a poor credit

score may lead to higher costs/rates. Here is a list of a few things that credit scores can impact:

■■ When renting a home, some landlords will review your credit report and check your

credit score as part of the application process�

■■ When applying for a credit card or loan, it will determine your eligibility and interest rate�

■■ Potential employers will sometimes check your credit report, especially if the position

involves dealing with money, credit or sensitive information�

WHAT BUILDS AND AFFECTS MY CREDIT

Making on-time monthly payments on your credit card(s) and/or installment loans could help

build your credit because it shows potential lenders that you are responsible by consistently

making on-time payments. One way to start building your credit is to make on-time monthly

payments on your student loans�

If not timely paid as agreed, the following may impact your credit:

■■ Car insurance

■■ Medical bills

■■ Utility & cell phone bills

■■ Mortgage/Rent

■■ Payday loans

■■ Past due collections

WHAT IS A CREDIT SCORE?

44

CREDIT SCOREFollow the steps below to check your credit report:

(1) Request your free credit reports at www�annualcreditreport�com� Three national

consumer reporting agencies (aka credit bureaus) are required to provide consumers with

free access to their credit reports once each year. Some people pull one credit report every

3–4 months so that they get an update from each bureau throughout the year. These free

reports don’t include credit scores.

(2) Review each report carefully for accuracy� It’s not uncommon for credit reports to have

mistakes so it’s important to check and make sure that your reports are completely accurate.

(3) Check your credit score� You can purchase your credit score through

annualcreditreport.com. Some financial services offer one or more of your credit scores for

free. Be sure that you are only giving your social security number to reputable sites.

(4) Learn your range� Use the chart on this page to see where your credit score falls in the

range.

AVERAGE CREDIT SCORE RANGE 1

HOW TO GET YOUR CREDIT REPORT?

Excellent

Good

Fair

Poor

720 and Up

690–719

630–689

629 and below

1 See, e�g�, “Credit Score Ranges and How to Improve,” http://www�nerdwallet�com/blog/finance/credit-score-ranges-and-how-to-improve/

45

CREDIT SCOREAfter you have successfully pulled your credit report, check it carefully for inaccuracies. If you

find a mistake on your credit report, the Federal Trade Commission recommends the following

steps to try to get it corrected1:

(1) Contact the credit reporting company with a detailed letter of the mistake and any

documents/evidence you have proving that it is a mistake.

(2) The credit reporting company will then investigate your case and respond accordingly.

They are required to respond to you in writing and provide you with a free copy of your

credit report if any changes were made.

(3) Tell the information provider (company or organization that was providing information

about you to the credit reporting company) in writing that you have submitted a dispute to

the credit reporting company2.

(4) The information provider will then investigate the case to determine if the information

was inaccurate or incomplete.

(5) If the information on the credit report was inaccurate or incomplete, the information

provider should update the credit reporting company to update or delete them.

MISTAKES ON YOUR CREDIT REPORT

1See “Disputing Errors on Credit Reports,” http://www�consumer�ftc�gov/articles/0151-disputing-errors-credit-reports 2Note that disputing too much information on a credit report could also impact your credit score�

46

CREDIT SCOREIf you have poor or fair credit, your score could be low for one or more of the following

reasons1:

You missed a payment, derogatory remarks will generally drop off of your credit report after 7

years.

You are utilizing too much of your credit� Some companies will look at your debt to income

ratio. Lowering your balance to below 30%2 may help you improve your score.

You have a lot of hard credit inquiries� Applying for a credit card or loan—among other

circumstances— results in a notation, or inquiry, on your credit report providing notice that

those companies have looked at your credit report. One way to minimize the number of

inquires on your credit report is to only apply for a new account when you are sure you want

to open it. Your current creditors, insurance companies and others might also look at your

credit report after 2 years. Companies reviewing your credit report should not see an inquiry

when you review your own credit report.

HOW CAN I IMPROVE A POOR CREDIT SCORE?

1 See, e�g�, “Improve Your Credit Score,” http://www�experian�com/credit-education/improve-credit-score�html2 See “5 Reasons Your Credit Score May Have Dropped,” http://www�experian�com/blogs/ask-experian/2015/06/30/5-reasons-your-credit-scores-may-have-dropped-and-what-that-can-mean/

47

CREDIT SCORESecured cards are credit cards that require a security deposit. The credit limit is typically

the same amount as the security deposit. If you make payments on time and use the card

responsibly, it can be one option to build credit.

Unsecured cards do not require a security deposit but have a predetermined credit limit that

is typically low if you’ve never had a credit card. As with a secured card, making payments

and avoiding credit card debt can help you build your credit, but some credit card companies

may not offer you an unsecured card if you don’t have a credit score. You may be able to get

an unsecured card with the help of a co-signer, but if you fail to make your payments your

cosigner could be asked for payment.

Pay all of your bills on time� Delinquent payments and collections can have a negative impact

on your credit score. If you have student loans, make payments on time.

Keep balances on credit cards low� Some people try not to spend more than 30% of their

available credit.

Don’t close unused credit cards� The age of your credit history may affect your credit score.

Don’t open new credit cards that you don’t need� One good way to avoid overusing credit

cards is to limit the number of credit cards you have.

Avoid opening multiple new accounts at one time, as this will decrease your average account

age and may increase the number of inquiries on your credit report.

BUILDING CREDIT IF YOU HAVE NO CREDIT

48

CREDIT SCOREIt is important to remember that it is easier to damage a good credit score than it is to

improve a poor score. Keep on doing what you are doing to keep your credit score high. But

here are a few helpful reminders:

■■ Keep balances on credit cards below 30% of the total credit offered to you�

■■ Pay your bills on time�

■■ Don’t open new credit cards that you don’t need�

■■ Canceling cards will change the length of your credit history as well as change your

credit utilization amount�

■■ Checking your credit report is free once per year, so be skeptical of companies that are

trying to make you pay for your credit report� Go to www�annualcreditreport�com for a

free credit report�

■■ Check your credit report for inaccuracies� Some people have a mistake on their report�

■■ It’s ok to check your credit report� It should not affect your credit score�

■■ Use credit cards responsibly� Make on-time monthly payments and stay within 30% of

your credit utilization�

■■ Closing an account does not make it go away� It may show up on your credit report as a

closed account and may affect the length of your credit history�

WHAT CAN I DO IF I HAVE GOOD CREDIT?

USEFUL CREDIT TIPS FOR EVERYONE

BANK

ING

50

BANKING

We have talked generally about how to manage your finances through budgeting, savings,

loan repayment options, and credit. Now we will show you the different types of accounts

available to you to help manage your finances.

OPENING A CHECKING ACCOUNT

To open a checking account, most banks will verify your previous checking account history

along with your credit. If both are good, the bank may allow you to open a checking account.

If you’ve had many overdrafts or bad credit, you may be denied an account.

When opening an account, think about how you want to manage it� Will you use a debit card,

write checks or use online banking services? Are the bank’s ATMs in a convenient location?

Ask the bank if they have minimum balance requirements to avoid a fee� After telling the

bank how you will use your account, you can determine which account offers you the most

services for the lowest monthly price. Each bank has different pros and cons. Compare large

banks, local banks, and credit unions to find the institution that works best for you.

HOW TO MANAGE AN ACCOUNT

Managing your account is very important. Many banks offer secure apps and websites for

your account that can help you see at a glance from your smart phone exactly where you

stand. You can also request paper statements.

OVERDRAFT FEES AND PROTECTION

An overdraft is when you don’t have enough money in your account to cover a transaction.

Your bank will charge you a fee each time this happens, which can be over $30 per overdraft.

In some cases, you can avoid this by telling your bank to pull from your savings account if

your checking account doesn’t have enough money. You can also tell the bank to reject your

card if you don’t have enough money for a transaction. Some banks may charge a fee for

these services. This is sometimes referred to as “overdraft protection.”

THE BASICS OF BANKING

51

BANKING

Make sure you talk to your bank about your overdraft options and ask whether or not there

are fees associated with these options. Banks are accustomed to answering these questions

and are there to help you.

DEBIT CARDS

■■ Debit cards are tied directly to your checking account. When you buy something with a

debit card, the funds are pulled directly from your checking account.

■■ Some merchants may charge a fee for using a debit card.

■■ Debit cards do not accrue interest.

CHECKS

■■ A check offers access to your account. When you write a check, the money will be

withdrawn from your account, usually within a few days.

■■ If you assume the money will come out of your account immediately, you may avoid

possible overdraft fees.

■■ If you don’t have the money in your account when the merchant cashes the check, the

merchant doesn’t get the money and you may be charged fees by both the merchant and

your bank.

THE BASICS OF BANKING CONTINUED

52

BANKING

When deciding what credit card to choose, make sure you are choosing a card that will work

best with your financial situation and spending habits.

A FEW THINGS TO CONSIDER WHEN CHOOSING A CREDIT CARD

Interest rates vary depending on the credit card. Higher interest rates will cost you more

if you leave a balance on your credit card over multiple months. This is important to

remember when deciding between credit cards.

Credit limits should be considered carefully. If you’re afraid a high credit limit might lead to

you spending more than you can afford, stick with a low credit limit.

Fees and penalties are also important to consider. Compare the fees along with other

bonuses when you are choosing a credit card. Many cards will charge a fee or penalize you

by increasing your interest rate for making a late payment, exceeding your credit limit, or

using cash advances.

Some credit cards have incentives such as travel rewards, shopping rewards, or cash back.

These can be beneficial to you depending on your spending habits, but there may be

fees, time limits or other restrictions associated with using or accessing the incentives. It is

important to consider all other aspects of a credit card before applying.

BALANCE TRANSFERS

Balance transfers are a way to transfer debt from one credit card or loan to another, typically

to reduce monthly payments or interest rates. Here are some things to keep in mind when

thinking about a balance transfer:

You usually need a good credit score to qualify�

Pay attention to the fees, some companies make money on balance transfers by charging

you fees. You should also ask if the current fees expire and the interest rate will increase

over time.

Ask about new purchases, the interest rate for those purchases may be different than the

interest rate of the transferred balance. You should also ask if you need to make payments

to a different entity for new purchases.

HOW TO CHOOSE A CREDIT CARD

53

BANKING

Best you apply for financial, it is important to know about possible scams and how to keep

your personal information secure. Here are a few points to know about scams and security.

SCAMS

Scholarships - You should never pay for scholarship money. If someone asks you to pay, it is

most likely a scam.

Consolidation & Repayment - Another free service that your servicer may offer you is

consolidation. If someone asks you to pay them to consolidate your loans or facilitate

repayment you should say no and contact your servicer.

Income-Driven Repayment Plans - If a company asks you to pay them to help you get into

an income-driven repayment plan (i.e., Pay As You Earn, Income-Contingent Repayment or

Income-Based Repayment), you should first contact your servicer. There’s no fee for an income-

driven repayment plan, but you may need to apply every year to show you continue to qualify.

Loan Forgiveness - If you think you might be eligible for student loan forgiveness, contact

your servicer. Companies that ask you to pay for the same services are a scam.

SECURITY

Never give up sensitive information - If a company you don’t recognize or someone who

doesn’t need your information asks for it, you do not need to give away your personal

information (e.g., date of birth, address, Social Security number).

How to identify scams - If someone is asking you to pay for a service you know is free, or is

asking you for sensitive information, it is best to do research and ask questions before giving

away your personal information. Companies also should not call you or email you to ask for

personal information. Even if you recognize the company, you can ask to call them back at

their official 1-800 number to verify that they are who they say they are.

Identity theft - Carrying information on you like your Social Security number can be

dangerous if it gets lost or stolen. It’s best to limit opportunities for the wrong people to get

their hands on your information.

Compromised bank accounts - Be vigilant in checking your accounts. If you notice charges

you did not make on your bank or credit card statement, be sure to report them right away.

SCAMS & SECURITY

STUD

ENT R

ESOU

RCES

& TO

OLS

55

STUDENT RESOURCES & TOOLS

STUDENT LOANS

■■ iGrad�com - This is the student loan entrance counseling that you used when you entered

school. You can revisit iGrad at any time to view the counseling information again.

■■ Studentloans�gov - This government website offers a different federal student loan

entrance counseling, as well as general information about student loans. Most of your

questions about federal student loans can be answered here. There is also a “Repayment

Estimator” that allows you to estimate how much you will be paying on your federal

student loans after school.

■■ NSLDS�ed�gov - You can go to this website to view your federal student loan information.

It shows the amount taken out for each loan, interest rate for each loan, and your current

servicer.

■■ Studentaid�ed�gov - You can visit this website for more information on how to prepare

for college, different types of aid available to you, how to submit the FAFSA, and federal

student loan repayment options.

■■ ECMC�org/publication/financialLiteracy�html - ECMC offers information about many

financial topics. This includes information about student loan default.

BUDGETING

■■ Mint�com

■■ Levelmoney�com

■■ BUDGT

■■ Even�me

APPLYING FOR FINANCIAL AID

■■ Fafsa�gov - Use this website to fill out your Free Application For Federal Student Aid. It is

important to be careful that you do not pay for the FAFSA.

■■ FSAID�ed�gov - Here you will be able to create your FSA ID, which you will use for your

FAFSA application.

FINANCIAL RESOURCES

56

STUDENT RESOURCES & TOOLS

FINANCIAL RESOURCES CONTINUED*

*The inclusion of any websites or references to other companies does not imply a recommendation or endorsement of the views expressed within those websites or by those companies

57

STUDENT RESOURCES & TOOLS

The FSA ID is a username and password that has replaced the Federal Student Aid PIN and

used to log into FAFSA�gov, studentloans�gov, NSLDS�gov, and studentaid�gov� Your FSA ID

confirms your identity when you access your financial aid information and electronically sign

Federal Student Aid documents. Instructions to create your FSA ID is as follows:

(1) Go to fsaid.ed.gov and click “Create an FSA ID.”

(2) Fill in an email, username/password and click “Continue.” You will be asked to verify

your email later on in the process, so it’s important that you have easy access to this email

account. Also be sure to make sure your password matches the requirements, otherwise it

will not be accepted.

(3) On the next page, enter your Social Security number, date of birth, and name. When

you are finished, click “Continue.”

CREATING AN FSA ID

58

STUDENT RESOURCES & TOOLS

(4) This page you will complete your profile with some more information about yourself.

When you are finished inputting your information, click “Continue.”

(5) You will now need to enter a few security questions in case you ever forget your

username or password. One suggestion is to make your answers something that will never

change (e.g., the city in which you were born).

(6) The next page you will review your information and accept the terms and conditions.

When you are finished confirming your information, check the box that says “I certify that

the above information is correct & accept the terms and conditions” and click “Continue.

(7) You will now be asked to verify your email address. Check the email that you used at

the beginning of the process and find the security code. Once you have the security code,

go back to the FSA ID website and enter the code, then click “Continue.”

(8) Congratulations! You have now created your FSA ID and will be able to access

information on FAFSA.gov, studentloans.gov, NSLDS.gov, and studentaid.gov.

CREATING AN FSA ID

59

STUDENT RESOURCES & TOOLS

The IRS Data Retrieval Tool allows students and parents to access IRS tax return information,

which is needed to complete the FAFSA, and transfer the data directly into their FAFSA. You

have the option to use this tool at the start of the financial information section of the FAFSA�

You should be able to use the IRS Data Retrieval tool 2–3 weeks after the date you filed your

taxes. If you choose a paper filing, you should be able to use it 8–11 weeks after the date you

mailed in your taxes.

If you have already started your FAFSA, you are still able to use the IRS Data Retrieval Tool by

following these instructions:

(1) Go to www.fafsa.gov, click “Login,” enter your FSA Username/Password & click “Next.”

(2) Click “Make FAFSA Corrections” and then create a Save Key and click “Next.”

(3) Click on the “Financial Information” tab. Select “Already Completed” for the tax

return filing status and answer the eligibility questions.

(4) Click on the “LINK TO IRS” button. Then click “OK” to go to the IRS Data Retrieval

Tool website and Click “OK” to accept the IRS Data Retrieval Tool terms of use.

(5) Enter the requested information and click “Submit.” Remember to enter your address

exactly as it appeared when you filed your taxes.

(6) Review the information that the IRS has retrieved from your tax returns. Check the

box to “Transfer My Tax Information into the FAFSA” and click “Transfer Now.” Your IRS

data will be transferred to your FAFSA and you will be returned to the FAFSA website.

(7) Do not update any answers that say “Transferred from the IRS” or your school may

require additional documentation. Answer the additional questions and click “Next.”

(8) Continue to the “Sign & Submit” tab. Follow all of the instructions carefully to submit

your FAFSA correction. Be sure to print or save the confirmation page for your records.

IRS DATA RETRIEVAL TOOL

60

STUDENT RESOURCES & TOOLS

Direct PLUS Loans are available to the parents of undergraduate students, if they qualify,

to help pay for educational expenses up to the cost of attendance minus all other financial

assistance. To get started with an application, follow these instructions:

(1) The student and parent must fill out the FAFSA together. Instructions for the FAFSA can

be found on page 25.

(2) Once both the parent and student have completed the FAFSA, go to

www.studentloans.gov and log in with the parent’s FSA ID.

(3) Click the “Apply for a PLUS Loan” option. Follow the instructions to complete the

application.

(4) The parent that completes the PLUS Loan application will also need to complete a

Master Promissory Note, which is also completed on www.studentloans.gov. The parent will

need the following information to complete the Master Promissory Note:

■■ Social Security number

■■ Two personal references

■■ Driver’s license

APPLYING FOR A PARENT PLUS LOAN

61

STUDENT RESOURCES & TOOLS

You can seek financial assistance through other sources, such as private loans, employer

reimbursement, veteran assistance, community groups and private organizations that offer

scholarships and special awards. Ask your Student Finance Planner for more information.

Corporate reimbursement programs offered by employers sometimes offer tuition

reimbursement assistance. Employed students may be eligible for tuition reimbursement

through their employer’s benefits program. Reimbursement amounts vary and are made

directly to the student after a tuition invoice or receipt and an official passing grade card have

been provided to his or her employer. In turn, the student may use his or her reimbursement

checks to make cash contributions and pay off loans related to educational expenses.

The Division of Vocational Rehabilitation provides services and financial assistance to

students with certain disabilities. To learn more, contact your local Division of Vocational

Rehabilitation office.

Through the Workforce Investment Act, the Department of Labor may provide services and

financial assistance to individuals who are participating in their training programs. To find out

more, contact your local Department of Labor office.

Many states provide grants and scholarship programs to promote postsecondary education.

To find out which grants and scholarships are available, speak with your Student Finance

Planner.

Community organization funds are another good source for financial assistance. Many

charities and community, civic, and religious organizations offer grant and scholarship

opportunities that can help finance your education if you meet eligibility requirements. Be sure

to inquire with these types of organizations to find out if you qualify.

Private organizations can help you seek financial support through donations and scholarships.

These organizations include private clubs, business and ethnic organizations. You can also ask

parents, relatives and friends to help support your education.

OTHER SOURCES OF FINANCIAL ASSISTANCE

62

STUDENT RESOURCES & TOOLS

Military Educational Benefits are also available. If you are a veteran, service member,

reservist, military spouse/dependent or otherwise eligible, you may qualify for various veteran

and military educational benefit programs. Eligibility criteria for military educational assistance

and benefits available vary by state and school, so check with the Veterans Administration

(VA) or Department of Defense (DOD) to see whether you qualify.

If you are receiving VA or Military benefits, you may be required to select one of the school’s

primary financing options (e.g., financial aid, cash) to cover your educational costs and related

expenses. All payments must be made in accordance with the school’s financial policies and

procedures.

The VA and DOD offer several educational assistance programs to veterans or service member

on active duty. Examples of military benefit programs available include:

■■ Post 9/11 GI Bill

■■ Yellow Ribbon

■■ Montgomery GI Bill

■■ Montgomery GI Bill - Selected Reserve (MGIB-SR)

■■ Reserve Educational Assistance Program (REAP)

■■ Veterans Educational Assistance Program (VEAP)

■■ Survivors’ and Dependents’ Educational Assistance Program (DEA)

■■ Vocational Rehabilitation (Chapter 31)

■■ MyCAA

If you have any questions, visit www.gibill.va.gov or call 1-888-GIBILL-1 (1-888-422-4551).

MILITARY FINANCIAL ASSISTANCE

63

STUDENT RESOURCES & TOOLS

Your eligibility for federal financial aid is determined through your FAFSA application. The

FAFSA asks you questions that will determine your eligibility and dependency status. If you

are considered a dependent, you will be asked to provide your parents’ information as well.

Federal eligibility requirements include:

■■ Being a U.S. citizen, a permanent resident or in the United States for more than temporary

purposes. Acceptable visas include the I-551, I-151, or I-94 if it is stamped “refugee,”

“indefinite parole,” “humanitarian parole,” “Cuban-Haitian entrance” or “asylum

granted.” If you have another visa type, the Student Finance office will help you determine

whether you are eligible.

■■ Being enrolled in an eligible program.

■■ Being in attendance at least half time (for certain programs).

■■ Not owing a refund on a federal grant or being in default on a federal educational loan.

■■ Having a valid Social Security number.

■■ Making satisfactory academic progress (see the school catalog for the definition of

satisfactory academic progress).

■■ Being registered for the draft with the Selective Service, if you are a male who is at least 18

years old and born after December 31, 1959.

■■ Not being currently enrolled in high school.

■■ Not having a previously received bachelor’s degree (applies to Federal Supplemental

Educational Opportunity Grant [FSEOG] and Federal Pell programs).

■■ Effective July 1, 2012, you must have a high school diploma; the recognized equivalent

of a high school diploma, such as a general educational development (GED) certificate; or

have completed home schooling at the secondary level as defined by state law.

FEDERAL FINANCIAL AID ELIGIBILITY

64

STUDENT RESOURCES & TOOLS

You will be notified of your financial aid award through an “award letter” that explains the

amount that will be credited toward your tuition and when this amount will be paid.

HOW WILL YOUR FEDERAL FINANCIAL AID FUNDS WILL BE CREDITED?

■■ FSEOG and Federal Pell Programs will be credited directly to your account.

■■ Federal Work Study will be paid directly to you on a biweekly basis, based on the number

of hours worked.

■■ Federal Stafford, Federal PLUS and Perkins loan funds are applied directly to the account,

and you will be notified when each payment is made.

NOTE: Your school may participate in Electronic Fund Transfer (EFT) for direct loan receipts.

HOW TO FIND ADDITIONAL INFORMATION ABOUT FINANCIAL AID?

■■ Funding Education Beyond High School, which can be downloaded from studentaid.ed.gov

■■ The Enrollment Agreement

■■ The school catalog

■■ Federal Student Aid Information Center: 1-800-4-FED-AID (1-800-433-3243)

■■ Department of Education websites

■■ www.studentaid.ed.gov

■■ www.fafsa.ed.gov

■■ www.pin.ed.gov

■■ www.studentloans.gov

FEDERAL FINANCIAL AID INFORMATION

65

STUDENT RESOURCES & TOOLS

Your eligibility is determined through your FAFSA application. The FAFSA asks you questions

that will determine your eligibility and dependency status. If you are considered a dependent,

you will be asked to provide your parents’ information as well.

Federal eligibility requirements include:

■■ Being a U.S. Citizen, a permanent resident or in the United States for more than temporary

purposes. Acceptable visas include the I-551, I-151, or I-94 if it is stamped “refugee,”

“indefinite parole,” “humanitarian parole,” “Cuban-Haitian entrance” or “asylum

granted.” If you have another visa type, the Student Finance office will help you determine

whether you are eligible.

■■ Being enrolled in an eligible program.

■■ Being in attendance at least half time (for certain programs).

■■ Not owing a refund on a federal grant or being in default on a federal educational loan.

■■ Having a valid Social Security Number.

■■ Making satisfactory academic progress (see the school catalog for the definition of

satisfactory progress).

■■ Being registered for the draft with the Selective Service, if you are a male who is at least 18

years old and born after December 31, 1959.

■■ Not being currently enrolled in high school.

■■ Not having a previously received bachelor’s degree (applies to Federal Supplemental

Educational Opportunity Grant [FSEOG] and Federal Pell programs).

■■ Effective July 1, 2012, you must have a high school diploma; the recognized equivalent

of a high school diploma, such as a general educational development (GED) certificate; or

have completed home schooling at the secondary level as defined by state law.

FINANCIAL AID ELIGIBILITY

66

STUDENT RESOURCES & TOOLS

Q: What is Financial Aid?

A: Financial aid refers to any funds available to you and/or your parents to help offset the

cost of higher education. These funds can come from private, government, or institutional

resources.

Q: Who should apply for financial aid?

A: You should apply for financial aid if you need assistance with the cost of higher

education. You are eligible to apply regardless of your income level. Financial aid is available

for those who qualify.

Q: What is the FAFSA (Free Application for Federal Student Aid)?

A: The FAFSA is the application you must complete if you wish to apply for federal financial

aid. This application can be accessed online using this link: www.fafsa.ed.gov.

Q: What is the verification process, and why do I have to complete it?

A: Verification is the process the school follows to confirm the accuracy of the information

you reported on your FAFSA. If your application is selected for verification, the school will

contact you to request additional information.

Q: My parents are not helping me pay for school� Am I considered an independent student?

A: Even if your parents do not contribute money toward your education, you may still

be considered a dependent. Please meet with you Student Finance Planner for more

information.

Q: Is there anything I have to do to keep getting financial aid when I’m a student?

A: You must make satisfactory academic progress in your program of study in order to

receive and maintain your eligibility for financial aid. You may need to apply for financial aid

each year, including completing the FAFSA annually. Please refer to your school catalog for

more information.

FREQUENTLY ASKED QUESTIONS

67

STUDENT RESOURCES & TOOLS

Q: Where am I going to get most of my funds to pay for school?

A: Your primary financing option is used to pay for the majority of your program costs. If

your program costs are not covered 100% by your primary option, then you must choose a

secondary (or alternative) option to cover the remaining balance.

Q: What other options do I have to pay for school?

A: Your company might help you pay for your education. You may also qualify for military

education benefits. In addition, local, community and private organizations may offer

assistance, scholarships or grants. See your Student Finance Planner for more information.

Q: Who do I contact if I change my address or telephone number?

A: First, you should notify your school in writing within 10 days of any changes. If you have

any loans, you should then notify your lender(s).

Feel free to contact your Student Finance Planner if you have any further questions. They are

here to help you succeed!

FREQUENTLY ASKED QUESTIONS

68

STUDENT RESOURCES & TOOLS

Your loan servicer is the company that manages your loans. This is the company to which you

will make payments when repayment begins. Be sure to mark your servicer below when you

find out who it is. The servicers below only apply to federal student loans.

Aspire Resources Inc�

http://www.aspireresourcesinc.com 1-855-475-3335

Cornerstone

https://www.mycornerstoneloan.org 1-800-663-1662

ESA/EDI Financial

https://www.edfinancial.com/home 1-855-337-6884

FedLoan Servicing (PHEAA)

http://www.myfedloan.org 1-800-699-2908

Granite State – GSMR

http://www.gsmr.org 1-888-556-0022

Great Lakes Educational Loan Services, Inc�

https://www.mygreatlakes.org 1-800-236-4300

MOHELA

https://www.mohela.com 1-888-866-4352

Navient

http://www.navient.com 1-800-722-1300

Nelnet

http://www.nelnet.com/home.aspx 1-888-486-4722

OSLA Servicing

http://www.osla.org 1-866-264-9762

VSAC Federal Loans

http://www.vsacfl.org 1-888-932-5626

Note: Your loan servicer is determined at the point when your loan amount is disbursed. Your loan amount is considered disbursed when your school transfers your loan money to your school account, gives money to you directly, or a combination of both.

LOAN SERVICER CONTACT INFORMATION

68

GLOS

SARY

70

GLOSSARY

Annual Percentage Rate (APR) - The yearly cost of a loan, including interest and fees,

expressed as a percentage. To determine your APR, take the periodic rate and multiply it by

the number of billing periods in a year.

Checking Account - A common way to pay your bills. When you write a check, use a debit

card or authorize a transfer of funds, that money is deducted from your checking account.

Consolidation - Combining multiple student federal loans into a new loan with a single monthly

payment. The interest rate of the consolidation loan is fixed.

Consumer Credit Report - A visual summary of how you handle credit.

Credit Bureau/Credit Reporting Agency - A credit bureau is a national consumer reporting

agency. These agencies collect and sell information about how people handle credit. They also

issue credit reports that list how individuals manage their debts and make payments, how much

untapped credit they have available and whether they’ve applied for any loans. The reports are

made available to creditors and others with a legitimate business need for the information.

Credit Score - A number generated by a formula using information in your consumer credit

report to indicate your overall credit on a scale from 350 (poor) to 850 (excellent).

Debit - A purchase authorized by you in which a retailer uses money electronically withdrawn

from your checking account as payment for goods and services. You initiate the purchase by

using your debit card, generally tied to your checking account.

Default - Failure to make scheduled loan payments or failure to honor the other terms of your

loan agreement. Defaults may be reported to national consumer reporting agencies.

Deferment - An authorized postponement of student loan repayment in situations where

borrowers meet certain requirements. During deferment, borrowers don’t make principal

payments on their loans. For some federal student loans, the government may pay the interest

during deferment.

Delinquency - When loan payments are late or unpaid. After 270 days of non-payment,

delinquent federal student loans become defaulted loans.

Entrance Counseling - A mandatory information session that takes place before you receive

your first federal student loan that explains your rights and responsibilities as a federal student

loan borrower.

GLOSSARY

71

GLOSSARY

Exit Counseling - A mandatory information session that takes place when you graduate,

withdraw from school or attend school less than half-time that explains your loan repayment

responsibilities and when repayment begins.

Federal PLUS Loans - An education loan from the federal government for parents of

dependent undergraduate students and for eligible graduate or professional students. Interest

begins to accrue when the loan is disbursed and continues to accrue until the loan is paid off.

Federal Direct Loan - An education loan from the federal government for eligible

undergraduate, graduate and professional students.

Fee - Costs to you as part of doing business with a company. Fees may be charged to you for

processing a transaction or as a penalty if you handle your account improperly.

Forbearance - The temporary postponement of loan payments that is typically granted at

the discretion of the lender/servicer if you don’t qualify for deferment. Interest continues to

accrue during the forbearance period and you’re responsible for paying the accrued interest.

Grace Period - A period of time, prior to repayment, when payments are not required. The

grace period—typically six consecutive months for federal Stafford loans— begins after

dropping below half-time enrollment, graduating or withdrawing.

Grant - Financial aid, often based on financial need, that does not need to be repaid.

Interest - A fee charged by the lender to borrow money and applied on a daily or monthly

basis.

Master Promissory - A legally binding contract between a lender and a borrower, that

contains the terms and conditions of the loan. An MPN is a multi-year document that

generally allows you to borrow additional student loans without needing to sign a new

promissory note.

Principal - A sum of money owed (a loan), on which interest is charged.

Scholarship - Aid money that does not have to be paid back, similar to a grant. Can be

awarded based on merit, need or for meeting certain criteria.

Variable Interest - An interest rate that changes according to the underlying interest rate

index, such as a Treasury Bill or prime rate.

GLOSSARY CONTINUED