Financial Planning Resources
- Budgeting Tips
- Credit and Debt Management
- Delinquency and Default Prevention
- Identity Theft Prevention
Budgeting Tips
Credit and Debt Management
| Resource | Description | Web Site |
|---|---|---|
| National Foundation for Credit Counseling | A national non-profit network to assist individuals with credit counseling | www.nfcc.org |
| Equifax | General credit information Check your credit Credit watch - identity protection | www.equifax.com |
| TransUnion | Ordering a credit report Restoring credit Credit card fraud - protection tips | www.transunion.com |
| Experian | General credit information Credit repair Credit refusal | www.experian.com |
| Federal Trade Commission | Consumer education on credit reporting, repairs and debt relief | www.ftc.gov/bcp/menu-credit.htm |
| BankRate | Sponsored by CNBC to provide credit card, investing, tax-money management tools and on-line calculators | www.bankrate.com |
| SmartMoney | Advice on debt management, consumer credit and more | www.smartmoney.com |
| MSN Money | On-line calculators, an article index, tool list and other resources | www.moneycentral.msn.com |
| MyFICO | Credit scoring, ways to improve your FICO score and information about identity theft prevention | www.myfico.com |
Delinquency and Default Prevention
When preparing for post graduation expenses, students should keep in mind that the repayment of their student loans is a high priority. Not meeting your loan repayment commitment could lead to negative credit reporting and default. There are a number of preventive measures that a borrower can take to be sure that he or she is not faced with the challenge of delinquent payments and/or defaulted loans. Lenders offer several repayment plans to suit the needs of borrowers. Students should consult with their lender regarding the repayment options available to them. Some of which include:
Change of Payment Due Date
If a borrower has several loans to maintain or gets paid on dates that do not correspond with loan payment dates, many lenders offer the option of changing the payment due date.
Standard Payment Plan
This plan allows you to make equal payments over the term of the loan. Each payment includes both principal and interest. This loan has the highest initial monthly payment, but results in the lowest total interest paid over the life of the loan.
Graduated Payment Plan
This plan allows for your payments to start out low and increase over time. This plan allows for interest-only payments for the first quarter or third of the total repayment period, followed by increased payments for the remaining term of the loan.
Income-Sensitive Payment Plan
This plan bases loan payments on a percentage of your gross monthly income and the amount borrowed. Repayment terms will vary based on the percentage you request, your income, and the total loan amount.
Extended Payment Plan
Under an extended repayment schedule, you can repay your Federal Consolidation Loan over a 30-year period, on a fixed or graduated payment plan, if you have federal loan totaling in excess of $60,000.
Forbearance
Borrowers who do not qualify for a deferment, may be eligible for a loan forbearance. Forbearance is similar to deferment in that it postpones the monthly loan payment, yet it is only for a short period of time and requires that the borrower either pay the monthly interest due on the loan or allow the interest to capitalize and be added to the principal amount.
Deferment
Borrowers who are having trouble making their monthly payment may be eligible for a deferment. A deferment allows for the postponement of monthly payments, including both the principal and the interest on the loan. To qualify for a deferment, the borrower must be enrolled at least half-time at a postsecondary school, unemployed, or experiencing financial hardship.
Automatic Draft Payment Option
Borrowers may authorize an automatic draft of their loan payment from their checking or savings account. This way, the borrower does not have to be concerned with writing checks or mailing payments. With automatic deduction, payments are made on time each month. Some lenders offer an interest rate reduction for automatic draft.
Identity Theft Prevention
- Destroy private records and statements. Shred credit card statements, solicitations and other documents that contain private financial information.
- Secure your mail. Empty your mailbox quickly, lock it, or get a post office box to ensure that no one has access to the financial information being sent to you. Never mail bill payments from home to eliminate the chance of them being stolen from your mailbox. Once stolen, the payee's name may be erased with solvents and the checks may be cashed fraudulently. Mail your bills from the post office or another secure location.
- Safeguard your Social Security number. Do not carry your social security card, or any other card that has your social security number on it, with you. Be reminded that some health insurance cards have your social security number on them. Do not list your social security number on your personal checks. This is a primary target for identity thieves because it gives them access to your credit report as well as your bank account.
- Do not leave a paper trail. Never leave ATM, credit card or gas station receipts in clear view. Always shred what you do not need.
- Never let your credit card out of your sight. Always keep an eye on your credit card or, better yet, pay with cash.
- Know who you're dealing with. Whenever someone contacts you requesting private identity or financial information, make no response other than to find out who they are, what company they represent and the reason for the call. If you have reason to believe that the request may be legitimate, contact the company yourself and confirm what you were told before revealing any of your personal data.
- Take your name off of marketer lists. Register yourself with the National Do-Not-Call registry by calling (888) 382-1222 in order to cut down on junk mail and credit card solicitations.
- Be defensive when it comes to personal information. When others request information such as a social security or driver?s license number, question whether or not it is absolutely necessary. Also, question the company?s privacy policy and request that the organization not share your information with anyone else.
- Monitor your credit report. Obtain and thoroughly review your credit report, which can be obtained free of charge at http://www.annualcreditreport.com or by calling (877) 322-8228. You can receive a free credit report annually. If you notice something suspicious on your credit report, alert the credit card company or creditor immediately.
- Review your credit card statements carefully. Make sure you recognize the merchants, locations and purchases listed before paying the bill. Consider closing credit card accounts that are not of use to you.
Victims of Identity Theft
Step 1
Contact the fraud department of each of the three major credit bureaus. Explain to them that you are an identity theft victim. Request that a "fraud alert" and victim?s statement be placed in your file, instructing creditors to contact you prior to opening any new accounts or making any changes to your existing accounts.
Equifax
To report fraud: 1-800-525-6285
and write: P.O. Box 740241, Atlanta, GA 30374-0241
Experian
To report fraud: 1-888-EXPERIAN (397-3742)
and write: P.O. Box 9532, Allen, TX 75013
TransUnion
To report fraud: 1-800-680-7289
and write: Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634
Step 2
Contact the creditors of any accounts that have been tampered with or opened fraudulently. Speak with someone in the security or fraud department of each creditor, and follow up with a notification letter.
Step 3
File a report with your local police department or the police department of the community where the identity theft took place. Keep a copy of the police report for your records and to verify the crime with banks, credit card companies, and other parties requesting some form of proof.
Step 4
Maintain records of everything concerning your efforts to clear up fraud, including copies of written correspondence and documentation of telephone calls.