Funding Graduate Education

1
Funding Graduate Education

• Professional and Graduate School Planning (PGSP)
• Pat Wilson
• Career Development
• Thompson Building, Room 200
• [phone]
• careers_at_unr.nevada.edu

2
Financing Options

• Military
• Institutional Loans
• Work-Study
• WICHE
• Private Loans
• Personal/family resources
• Research
• Grants/Scholarships
• Federal Loans
• Teaching Assistantships
• Service obligation
• In-school employment
• National Service Corps Health Scholarship

3
Ways to Prepare

• Educate yourself about the options
• It takes time!
• Make saving for your college education top
  priority right now
• Keep your consumer debt (credit cards, mortgages,
  car loans, personal loans) to a minimum
• Consumer debt will not be taken into
  consideration when determining your need
• Limit your spending

4
What You Need to Know and Ask

• What is the cost of attendance?
• Loans cannot exceed the cost of attendance as
  determined by the university you will be
  attending.
• Is money for a lap top included in the cost of
  attendance?
• When does loan repayment begin? 6 months? 9
  months?

5
What You Need to Know and Ask (Cont.)

• When are the applications deadlines?
• Do I need to have tax information available?
• Which loan providers can I use?
• What need-based and merit-based funding
  opportunities are available?

6
Student Loan Programs

• Free Application for Federal Student Aid (FAFSA)
• 2 primary types of federal loan programs
• Subsidized
• Unsubsidized
• Government does not consider parental income now
  you are considered impendent

7
Student Loan Programs (Cont.)

• 2 major federally sponsored loan programs
• Stafford Loans
• Subsidized 8,500
• Unsubsized up to 18,500
• Federal Perkins Loan
• Subsidized loan which is administered by the
  university
• Not all schools receive the same amount of funding

8
Credit Reports

• Some sources of financial aid require that you
  pass a credit check
• Know the role your past consumer behavior will
  play in your ability to borrow money.
• You must have a good credit history to receive
  private educational loans.
• These loans are backed by lending institutions

9
What is your credit history?

• A credit history reflects your success in
  handling money
• Credit is granted to you by a lender based on an
  assessment of
• Employment verification
• How long you have lived and/or worked in the same
  place
• How much credit is available to you in terms of
  each account
• How much you owe creditors
• Your timeliness in paying bills
• Any derogatory information concerning your
  account during the past seven years
• The number of applications you have made for
  additional credit

10
What are credit criteria?

• Credit Criteria are the factors used by credit
  bureaus that will determine if you will be
  granted a credit card or loan.
• For students the three main criteria to avoid
  are
• Too many open credit cards and other credit
  accounts
• Large outstanding balances on credit cards or
  other consumer debts
• Delinquent payments

11
Maintain Good Credit

• Your credit history demonstrates your willingness
  to repay loans in the future based on how you
  have handled credit in the past.
• Some landlords may request a copy of your credit
  report before they will rent you an apartment.
• In the future, how much credit you are able to
  get, to buy a home or car, or establish a
  practice, will depend on your credit history.

12
Checking Your Credit Reports

• Before you apply for loans, request a copy of
  your credit report
• Contact one of the major, national reporting
  agencies by phone or in writing.
• Be prepared to provide some personal information
  and pay a small fee

13
Credit Reporting Agencies

• Equifax www.equifx.com
• PO Box 740241
• Atlanta, GA 30374
• 800-567-8688
• 800-567-8689
• Experian www.experian.com
• PO Box 2002
• Allen, TX 75013
• 888-397-3742
• Trans Union www.transunion.com
• PO Box 1000
• Chester, PA 19022
• 800-888-4213
• For more information about credit reporting
  www.credit.com

14
Reviewing Your Credit Report

• It will take you some time to understand your
  credit report
• Review the report to verify
• That the accounts are yours
• That any negative reporting concerning your
  payment history is true
• That the balances and credit available are
  accurate
• That the accounts listed are still open

15
Errors on Your Credit Report

• Common errors include
• Confusing you with someone else who has a similar
  name, address or Social Security number
• Errors in the amount of your balances
• Double reporting balances
• Failure of the credit bureau to remove a credit
  delinquency after the issue has been resolved

16
Correcting Errors

• Most corrections are best handled by writing to
  the credit bureau
• If necessary, submit documentation from your
  lender or from your own records
• Always keep records of your correspondence
• In rare instances, legal assistance may be
  necessary in correcting damaging information
• For issues involving the rehabilitation of poor
  credit, consult your local consumer credit
  counseling service

17
Strategies for Making a Successful Financial
Transition

• Make provisions for larger expenses that may come
  up only once or twice per year.
• Factor the monthly amount into your budget and
  set it aside
• Dont underestimate the cost of ownership.
• You may be able to afford the payment, but you
  also need to keep in mind the cost of insurance
  and maintenance.

18
Strategies

• Plug up your spending leaks
• Pay attention to all those seemingly minor
  expenditures
• Be aware of careless shopping habits
• Shop with a plan!
• Avoid impulse buys!

19
Strategies

• Avoid overuse of credit
• You should not need more than one credit card
• Choose one with the lowest fees and interest
  rates possible
• If you do not trust yourself, do not carry your
  card in your wallet
• Still dont trust yourself?
• Freeze your credit card in a metal bowl full of
  water so that youll have to defrost it before
  you use it!
• Use windfalls constructively
• Use the rule of thirds
• 1/3 to your saving account
• 1/3 to pay down debt
• 1/3 to spend

20
Strategies

• Save small amounts
• Saving even 5 a week will add up
• Practice delayed gratification
• Ask yourself these questions when considering a
  purchase
• Is this a want or a need?
• Do I have to have it right now?
• Can I get it cheaper somewhere else?
• Can I borrow it or rent it instead?

21
References and Resources

• The Financial Aid Information Page
• www.finaid.org
• Links to virtually every internet resource
  concerning financial aid
• The College Board On-Line
• www.collegeboard.com
• National Association of Student Financial Aid
  Administrators (NASFAA)
• www.nasfaa.org