The document is a comprehensive guide on managing finances, including budgeting, student loans, and debt repayment strategies. It outlines key concepts such as types of expenses, loan repayment plans, and consequences of defaulting on student loans. Additionally, it provides resources for further information on managing student debt and financial choices.

1. WELCOME!

2. Anita Nesiba
Certified Credit Counselor
Certified Housing Counselor
Certified Student Loan Counselor
Consumer Credit Counseling Services
Lutheran Social Services
Inspired by love we care for, support and strengthen
individuals, families and communities

3. “As long as we have hope, we have direction,
the energy to move and the map to move by,
we have a hundred alternatives, a thousand
paths and an infinity of dreams.”
Author Unknown

4. QUESTIONAIRE
Financial Choices

5. The key to managing your finances is:
a) Having access to credit
b) Having a budget
c) Paying less interest
d) Making more money

6. What is the foundation of a budget:
a) Your income
b) Your debts
c) Your goals
d) Accurate number for your income and
expenses

7. If you began with a penny and doubled your
money every day, at the end of thirty days
you would have:
a) $8896
b) $83,886
c) $670,088
d) $5,368,709

8. Which of the following statements are
true:
a) After deductions you can expect to take
home 70% to 80% of your gross pay
b) After deductions you can expect to take
home 60% to 70% of your gross pay
c) After deductions you can expect to take
home 50% to 60% of your gross pay
d) After deductions you will be left with nothing

9. What are the major types of expenses:
a) Expected and Unexpected
b) Fixed, flexible and periodic
c) Taxes, education and utilities
d) Food, clothing, shelter and transportation

10. Your budget is in balance if:
a) Your expenses exceed your income
b) Your expenses are equal to or less than your
income
c) You get paid weekly
d) You get a raise

11. Beginning at the age of 18, if you saved
$3,000 a year for five years and earned a
return of 10% each year, at the age of 65
how much money would you have:
a) $55,000
b) $165,000
c) $460,000
d) Over one million dollars

12. When it comes to car insurance:
a) The higher your deductible, the higher your
premium
b) The lower your deductible, the lower your
premium
c) The higher your deductible, the lower your
premium
d) Your deductible does not affect your
premium at all

13. Budgeting
Do you currently keep track of your monthly
expenses?
Fixed, Flexible and Periodic Expenses
What are they?
Tracking, tracking, tracking!

14. Congratulations!
Graduation: What is next?

15. Goals
• Where do you see yourself in 12 months, 5
years, possibly 10 years?

16. Considerations
1. Where do you want to live? Costs of living?
2. What type of employment are you
considering and what time frame do you
have for your goals of employment?
3. Graduate school?

17. Student Loans
* According to Federal Reserve in New
York the student loan debt is now
about $870 billion. This tops Credit
Card debt at $693 billion and Auto
loan debt at $730 billion.

18. Loan Repayment
Federal Student Loans
1. Standard Repayment Plan
2. Graduated Repayment Plan
3. Extended Repayment Plan
4. Income Based Repayment Plans
a) Direct Loan Income Contingent Repayment
Plan
b) IBR- Income Sensitive Repayment Plan

19. Loan Forgiveness
• Repayment plans after 25 years if Federal
• Working in a specific job where you could see
loan forgiveness after 10 years of payments
• If you are a teacher with Perkins Loans or in a
specific profession
• Employers can offer incentives

20. Private Student Loans
• Be cautious and always keep informed about
payment plan options.
• Limited

21. Postponing Repayment
Federal
• Loan Deferment
• Loan Forbearance
• Private Student Loans- limited in options

22. CONSEQUENCES OF DEFAULT

23. Tax Refund Offset
• The IRS can intercept any income tax refund
you may be entitled to receive until your
student loans are paid in full.

24. Paycheck Garnishment
• Federal government can take ”garnish” up to
15% of your disposable income but is not able
to take more than the equivalent of 30 times
the current federal minimum wage.
• Best way to avoid garnishment is to contact
the holder of your loan to negotiate a
repayment schedule.

25. Federal Benefits
• The federal government can take benefit
payments, including Social Security and Social
Security Disability, but no Supplemental
Security Income. They have to leave you with
benefits of $750 a month or $9000 a year.

26. You Get Sued
• The government and private lenders can sue
you to collect defaulted student loans. Unlike
other debts, there is not any time limit on
collection of the debts.

27. Resource for Information
• www.studentloanborrowerassistance.org
• www.studentaid.ed.gov/publicservice
• Financial Aid Office