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Powercat Financial

Month: October 2015

New Enhanced SALT Services Coming Soon

You’re all familiar with SALT®, the free financial resource that gives you the educational tools you need to manage your finances associated with school, like student loans, scholarships, budgeting, and more. And we’ve just added a whole new way SALT can keep you financially healthy in school and afterward: proactive Education Debt Management Services. That means if you have any student debt, SALT will reach out to you now to make sure you’re always on track with your payments and help you navigate your repayment options.

Communications

When will you begin to hear from SALT? In the first three years of repayment, you’ll get direct SALT communication via email, snail mail, and phone, regardless of your loan status. The timing of these communications is based on over 50 years of the nonprofit American Student Assistance’s borrower services expertise—so they’ll get in touch with you before you ever run into any issues with repayment.

Also, SALT’s financial counselors are available by phone and chat seven days a week at any stage of your repayment process. And you can rest assured that they’re known for being neutral, unbiased, professional, and empathetic, with a consistently high satisfaction rating from students and alumni alike.

As one Kansas State alum stated after using SALT’s services, “I am so pleased with the service I received from SALT. I was really struggling with some repayment information and after my chat, I know exactly how to move forward. SALT gives me peace as I learn more about how to repay my student loans. Thank you very much!”

Join SALT for free at www.saltmoney.org/kstate to start using this valuable resource now and start finding scholarships, jobs & internship, and tips for becoming money savvy. Kansas State’s Powercat Financial Counseling wants all students and alumni to be financially successful and has brought you these free SALT resources to ensure your financial success now and in the future.

Jodi Kaus, Director

Powercat Financial Counseling

www.k-state.edu/pfc

powercatfinancial@k-state.edu

Healthy Finances for Healthy Eating

Money is already tight as a student, which makes eating healthy a difficult thing to do.  So many other things compete for our money that living on Ramen can seem like the smart thing to do.  However, it’s important to consider your health and your body when deciding what choices to make in diet.  There are many ways to save money and not compromise health as a result:

Meal Planning

Meal planning is one of the most effective ways to save money at the grocery store.  The phrase “don’t shop when you’re hungry” is highly used because it’s highly relevant.  Even when you’re not hungry, shopping without a plan can result in a cart full of items that may go bad before their used or may remain in your pantry for months along with other items that you may end up throwing away when you move out.

Instead, have a plan on what you want to eat throughout the week.  Make a list of what you need for each meal that week, excluding what you already have at home.  Find a way that is most convenient to make such a list, adding in regular or irregular grocery items such as milk, snacks, cereal, etc…

Meal planning can lighten the stress on your bank account as well as on the grocery store trip itself because you’ll be more prepared to avoid items you don’t need and know where to go to find the items you do need.

Buy In Bulk

Another great way to save money is to buy items in bulk.  Sometimes, it can cost less per unit price to buy a lot at once, especially when it comes to items such as meat or cheese.  Make sure to avoid the trap of buying in bulk when it isn’t necessary, however.  Many items may look like a deal to buy the larger containers, but that’s not necessarily true.  Check the unit price numbers to compare different sizes and prices to ensure you’re getting the best value.  Also be careful not to become wasteful when buying in bulk.  If it can’t be reasonably used or frozen before it spoils, it’s a waste of money to buy in bulk.

Freezer Meals

Now that you have bulk items, what do you do with them?  One useful and time-saving tip is to create freezer meals.  This entails putting all the ingredients for a meal in one or multiple resealable freezer bag (i.e. Ziplock), writing instructions on how to cook the meal (i.e. thaw, oven temperature, time to cook, etc…) and sticking it in the freezer to be pulled out the day of or night before to cook.  If you’re cooking for 1 or 2, it may be helpful to divide up the recipes accordingly or plan on eating the leftovers.  You can search for many recipes of this variety online.

Crock Pot Meals

Crock Pots are the perfect tool for students leading busy schedules.  Crock pots allow you to throw everything into the pot and let it sit for hours while you’re in class, at work, in a meeting, or even while you sleep at night.  When you’re done for the day, the meal is ready for you to eat.  Another perk of Crock Pot meals is that you can make multiple meals for the week at once, saving you time and money.  If you’re the type of person who doesn’t like eating the same meal twice, feel free to get creative and spice things up to the leftovers to make it unique.  Having a meal already prepared will help you resist the urge to eat out for convenience sake after a long, tiring day.

Make Your Own Servings

Generally speaking, single-serve items such as snacks, freezer meals, and individually packaged items are significantly more expensive than if you were to individually portion them yourself.  Taking the time to sort out your snacks into reusable or even ziplock bags can save you lots of money at the store while still providing you with the convenience of grabbing and going in the morning.  Not only will it help with cost and convenience, prepackaging your own portions can help you also with limiting your snacking to the appropriate and healthy serving size.

Buy in Season

One of the biggest expenses at the grocery store can come from the produce section.  It can be difficult to eat produce before it goes bad, especially when you’re only buying for yourself or for two.  On top of this, many produce items vary in their expenses month to month.  It’s important to know which produce items are in season when you’re shopping because that’s when you’ll get the best deal on them.  The following chart can help you decide which items to plan for your meals depending on what season it is.  Try to avoid getting off-season produce because it can be a burden on the bank.  Instead, experiment with new fruits and vegetables that are in season.

Brands

A simple way to save money without changing much of your habits or taking extra time in the week can be by switching to generic label items.  Brand names are more advertised and well-known, but aren’t necessarily much different than the same items made by the grocery store company itself.  Switching to Safeway, Kroger, Great Value, or Hyvee brand items will add up over time and over products without you having to change your lifestyle or even take the time it may take when planning meals, doing freezer or crock pot meals, creating your own servings, or buying in season.

Coupons

And lastly, using coupons can be very helpful, if used properly.  At times, using coupons can actually hurt your finances more than help when you find yourself buying items you didn’t need or won’t use in time.  However, if coupons are available for items that you were going to buy regardless or even if you specifically  meal plan around coupons, it can be a very financially smart thing to do.  Many grocery stores have apps with coupons on them.  You can also find coupons on the back of receipts and from simple searches online.

There are hundreds of other ways you can save money at the grocery store while avoiding compromising your health.  You can learn even more by attending the workshop Eating Healthy on a Budget on Monday, October 26th at 6:00 PM in the Union Flint Hills room.  Resources, recipes, and tips will be provided as well as free food to the first 30 attendees.

Christyne Stephenson
Peer Counselor III
Powercat Financial Counseling
www.k-state.edu/pfc

How to Choose the Right Student Loan Repayment Plan for You

Student loans can be complicated, and if you are one of the nearly 40 million Americans with student loans, as reported by NerdWallet.com, it is important to know your options for repayment.  Out of those reported borrowers who are currently repaying their student loans, nearly 30% of them are more than 30 days late on their payments, according to the Federal Reserve Bank of St. Louis.  Student loan default, defined as failure to repay a student loan according to the agreed upon terms, can carry major consequences, such as a negative credit rating and making it difficult to borrow money in the future, set up utilities, receive approval for rent, or get a cellphone plan, along with other credit approval required services.

Federal Loan Repayment Options

There are three basic repayment plans:  the standard plan, the graduated plan, the extended plan.  There are also income-driven plans, allowing you to pay between 10% and 20% of your discretionary income.  A general rule of thumb to remember is that interest on your loans will increase as you decrease your monthly payments.

  • Standard repayment- For many students, this will be the default plan you are automatically placed into if you do not choose another plan prior to repayment.  The loan balance will be divided into 120 equal payments over 10 years.  This repayment option will save you money over time, but your payments may be higher than payments made under other plans.  There is a fixed monthly minimum payment of at least $50 a month.
  • Graduated repayment– Think of this plan as walking up a set of stairs.  The payments will start lower than in in the standard plan, but will increase every 2 years, for 10 years, making the last half of your payments higher than the standard plan. Keep in mind the payment to this plan will increase even if your income does not.
  • Extended repayment– This repayment option is applicable if you have more than $30,000 of federal student loan debt.  The extended option follows the same stair step agenda as the graduated plan, but this pattern will take place over 12-30 years, instead of 10 years.  With this repayment plan you will pay more interest, as well as pay for a longer amount of time.
  • Income-based repayment– For new borrowers, those who borrowed on or after July 1, 2014, 10% of your discretionary income will be calculated to determine your monthly payment. For those who are not new borrowers, on or after July 1, 2014, 15% of your discretionary income will be used to determine your monthly payment. However, it is important to note the calculated monthly payment will never be more than the payment under the 10-year standard repayment plan. An annual application is required for this repayment plan.  If you are on this plan for 20 year (new borrowers) or 25 years, the remaining balance of your loans may be forgiven.  This will be taxed in the year it is forgiven.
  • Pay-as-you-earn repayment– This repayment option is is for borrowers who took out their first loan on or after October 1, 2007.  Monthly payments will be calculated based on 10% of your discretionary income.  Borrowers can get their remaining balance forgiven if they are on the plan for 20 years and will be taxed for the amount forgiven.
  • Income-contingent repayment– This repayment option allows you to pay the lesser of 20% of your of discretionary income, or what you would pay under a repayment plan with a fixed payment over 12 years, adjusted according to your income.  This repayment plan will also require an annual application, and only direct loans will qualify.

Although these repayment options can be confusing, there are several resources designed to help answer your questions.  Powercat Financial Counseling offers free and confidential peer-to-peer consultations on campus.  Visit our website at www.ksu.edu/pfc to schedule an appointment.  SALT, a website designed as a one-stop-shop for students, offer greats tips as well as a loan repayment calculator.  Set up a profile today at SaltMoney.org. You may also visit the federal student aid website at StudentAid.ed.gov to find out how much you owe in student loans, as well how to reach out to your loan servicer.

Emily Koochel
Graduate Research Assistant
Powercat Financial Counseling
www.ksu.edu/pfc

 

 

Credit Cards Are Changing: Are You Ready?

Fraudsters finding their victims in the United States have met their match. Financial institutions across the U.S. have created a new standard to help protect credit card users: EMV technology (Europay, Mastercard, and Visa). EMV technology is simply a small chip on the front of your credit card. Many people have already made the transition to this new card. However, the transition is still taking place. This article will explain and help you understand the new change to EMV, as well as the actions everyone should take.

Why the change to EMV?

EMV Technology is much more difficult to counterfeit. Traditional magnetic strip credit cards use the same information to verify the card at every transaction. On the other hand, EMV cards create a new code for every single transaction. This dynamic data will make counterfeit fraud extremely difficult. Although it is more difficult, there is still a degree of risk involved. Consumers should still use caution and protect their personal financial information just as usual.

How is it used?

“Chip dipping” will soon become the new “swipe”. Consumers will be required to insert their card, chip side in, into a POS (point-of-sale) system instead of the usual swipe. We will all have to be patient: the EMV technology takes a moment to verify your information with your financial institution. After doing so, the card may be pulled. As of now, signatures are still being required to hold the consumer liable for charges. The ultimate goal (2-3 years projected), is to do-away with the signature and require a pin for every transaction.

Do I need an EMV card?

Eventually (probably another 2 years), EMV will be required. As of now, consumers can stay with their traditional magnetic card. Making the transition is extremely beneficial to the consumer. Not only is it a more secure transaction, but it will prevent fraud liability from being shifted to you instead of your financial institution. Most major financial institutions have set a deadline of October 1, 2015 for this liability shift. The liability of a fraudulent transaction will fall on whichever party is the least compliant with EMV.

What do I do if an EMV point of sale system is not available?

The expense of buying EMV point of sale systems will restrict an immediate transition. As a result, traditional magnetic sales are still available for businesses to use. To guard yourself as a consumer, simply make sure that all of your credit cards are EMV compatible. Having an EMV compatible card will ensure that the most negligent party (responsible for fraud liability) will be the business that has not yet ungraded their POS system.

How do I upgrade to EMV?

Most financial institutions are executing a plan to send out new cards. If you have not yet received your new EMV card, they can be requested (usually free of charge). If your institution offers free card design changes, maybe this would be a good time to do so!

Although this technology is new to the U.S., it has been the standard internationally for many years now. Large businesses such as Walmart, Costco, and Target made the transition early in an effort to stay as compliant as possible.

Source: http://www.creditcards.com/credit-card-news/emv-faq-chip-cards-answers-1264.php

Keaton Dugan
Graduate Assistant
Powercat Financial Counseling
www.k-state.edu.pfc