A newly revised credit scoring equation will soon be here and you'll want to know about it.
Click here to read an excellent article by award winning personal-finance writer Liz Pulliam Weston from MSN.com. Fair Isaac Corporation’s (FICO) revised credit scoring formula will become effective soon and the balances you carry will matter more than ever. Luckily, little missteps will count less. Click here to learn more including how to protect yourself!
Have more questions? Give us a call 838-3141 – We can help.
Ask to speak w/ one of our Personal Bankers or Mortgage Lenders.
The following consumer information link - www.consumer.gov - gives you important information on checking account fraud, as well as a multitude of other subjects. Central to this page is a group of links that give you “up-to-date” articles on “current” subjects. Key banking categories include:
- Identity Theft
- Kid’s Privacy
- Privacy Information
- Know Fraud
- Making a Buck
It’s an Information Jungle out there!
Nearly one American every minute is a victim of Identity Theft. The thieves don’t need much: a receipt you left behind, a bill mailed from your mailbox, a missing check, or information provided over an unsecured website. You get the idea.
Banks help catch and prosecute these crooks.You can help, too.
- Never give your Social Security number or credit information to anyone who calls you.
- Tear up receipts, old bank statements and unused credit card offers.
- Don’t mail bills from your mailbox. Thieves may use them to change your address.
- Review your monthly accounts for fraud.
- Order copies of your credit report once a year to ensure accuracy.
- Protect your Personal Identification Number (PIN). Don’t carry it with you.
- Report suspected fraud to your bank immediately.
For additional information call us or visit the website of the American Bankers Association at www.aba.com. Don't get caught alone in the jungle.
For additional information, great tips and resource information, click here.
Most of us have questions and concerns about all types of financial issues. The following link - www.pueblo.gsa.gov - can give you information and support on a wide variety of financial subjects. Your federal government provides a lot of useful information that is easily accessible through your computer.
Some areas in the money section include:
- Being an executor
- Being sued
- What you can do about cold calling
- Living Trusts
- Making a will
- Using your home as collateral
- Credit matters
- How to dispute credit errors
- Interest and saving
- Building financial freedom
- Retirement planning
- From here to security (well worth seeing!)
- Small Business
- SBA programs
This link also provides information on subjects like travel, children educators, cars, employment, food, health, housing, and federal programs.
Do you need money to finance college?
Are you wondering where to start?
What do I do first?
The very first thing to do is fill out the Free Application for Federal Student Aid (FAFSA). It is important that you fill out a FAFSA early. It also needs to be completed each year you attend school.
Where do I get FAFSA?
You may obtain the FAFSA from the school you plan to attend, the public library, or the Department of Education. You may also complete it online at www.fafsa.ed.gov. You will need to gather documents to answer some of the questions on the FAFSA. These will include your (and your family’s, if a dependent student) W2’s, bank statements, most recent federal tax forms, and a driver’s license (if applicable). If questions arise when filling out the FAFSA, contact the financial aid administrator at the school you will be attending or the Department of Education at 1-800-433-3243.
What happens next?
Student Aid Report (SAR)
Approximately four weeks after submitting the FAFSA, you and the schools you listed will receive a Student Aid Report (SAR). If any adjustments are necessary, make the corrections on part 2 of the SAR and return it to the Department of Education, as directed.
The financial aid office will determine your eligibility for grants, loans and any other aid available at the institution. A financial aid award letter will be sent to you advising of the options that are available.
Keep in contact with the Financial Aid Office
Once an award letter has been received, you may be informed that you are eligible for loans. At this point, the school may enclose a loan application or submit information electronically to a guarantor to initiate the process. It is important that all paperwork be understood and completed by you, and that you agree with the terms of the loan. Be sure to read all documents carefully, and direct any questions to the financial aid office. Keep a copy of all paperwork for your records.
In addition, the financial aid office will be handling loan disbursements, either via check or electronic funds transfer (EFT), so be sure to find out how and when funds will be distributed to you (either directly or to an account). The school can certify changes to disbursement dates and amounts, so it is vital that you understand the process. You should make out a monthly budget. It will be easier to plan your budget if you know how and when you will receive funds. Don’t forget to include the following in your budget:
- Tuition
- Books
- Room and Board
- Supplies
- Entertainment
- Clothing and Travel
Considering the Award Letter: Things to consider prior to taking out loans:
Have you exhausted all other sources of aid prior to taking out a loan such as:
- Scholarships – Your high school guidance counselor may have a local listing!
- Grants – Be sure to fill out your FAFSA early! Remember; never pay a fee to be considered for
grants and scholarships. If it sounds too good to be true – it is too good to be true!
- Savings – Begin saving as soon as possible for college!
- Job – A part time job can help you pay some of your tuition as well as give you some spending
money.
Grants and scholarships are free money! That’s the best kind because it doesn’t need to be paid back. Loans, on the other hand, need to be paid back in full without exception. It is in your best interest to consider all options prior to signing for a loan. Again, be cautious of a service guaranteeing results or charging fees for information that is generally available at no cost.
The Federal Family Education Loan Program (FFELP) generally offers three types of loans:
- Subsidized Stafford – This loan is based on your financial need. The interest is paid by the federal government while you are enrolled at least half-time, in a grace period, or in a qualified deferment.
- Unsubsidized Stafford – This loan does not require you to demonstrate financial need and the interest is not paid by the federal government. You are always responsible for the interest on this type of loan. You may have the interest deferred, or postponed while in school; however, if not paid when you enter repayment, it will be capitalized, resulting in more interest to be paid over the life of the loan.
Remember, there are annual and aggregate limits to Stafford Loans!
- PLUS Loan – A parent of an undergraduate dependent student is eligible for this loan type. This is the parent’s loan and remains their responsibility until the loan is paid in full. The borrower must pass a credit check and is responsible for all interest on the loan. The maximum amount that may be borrowed is the cost of attendance minus all other financial aid received by the student.
- Alternative Loan – Students seeking loans in addition to, or as an alternative to, federal loans may seek out alternative loans. These loans are not federal loans. Most require credit checks and have higher fees and/or interest rates. In addition, a cosigner may be necessary to secure the loan. This type of loan is usually considered when all other options have been exhausted.
The Loan Application Process
A promissory note must be complete by the student (or the parent in the case of a PLUS loan). The first section is to be completed by the borrower in full, with the remainder of the application certified by the school. Your Promissory Note can only become a loan if all the information is filled out completely and accurately. Any omissions may delay the disbursement of the funds. Funds will be disbursed to the school on the disbursement date, as determined by the school. Any unwanted funds may be returned to the school or directly to Great Lakes.
How do I get more information?
Great Places to find information on Financial Aid, Higher Education and More…
- www.glhec.org – Find out about Great Lakes Higher Education Corporation. Check out the online borrower account inquiry.
- www.ed.gov – The Department of Education hosts a wealth of resources on this site.
- mapping-your-future.org – Information of career planning and college selection and more!
- www.fastweb.com – FREE reliable national scholarship search.
- www.fafsa.ed.gov – Get and complete your FAFSA online.
Or, contact us at McFarland State Bank.
Congratulations, on deciding to further your education!!!
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Checking Account Fraud Protection
