Financial Literacy

as a college student, there will be many decisions that you will need to make about your financial future.  You will have the opportunity to obtain credit in addition to student loans. Many students quickly obtain consumer debt, such as credit card debt that creates immediate problems for them.  The manner in which you handle your credit will affect your future. 

Did you know...

• that credit problems can keep you from obtaining a job?
• financial debt (credit card/ consumer loans)  is one of the main reasons that students end up dropping out of school?
• there is no magic way to repair credit?
• better credit scores can mean lower interest rates on consumer loans?

Tips for establishing good credit...

• Plan for the academic year.  A good resource to use for money management tips is the NEFE Teen Resource Bureau.  Use the calculator to estimate your semester expenses and compare to money available to you.
• Only borrow the amount of money that you need.  For example:
     -Use computers in the computer labs or the library instead of buying a computer.  The purchase of a personal computer
               is not required at RU.
     -Buy only the items that you need, not the items that you would like to buy.

     -Review the tips offered from the NEFE Teen Resource Bureau.

• If you decide to obtain a credit card, compare credit cards.
• Pay attention to the amount that you are charging to credit cards.  Divide the total amount that you have borrowed by the months that you want to pay back the charge amount.  This will tell you how much you will have to pay each month to pay the card off.  Review the amount of interest that you are paying monthly.
• Pay off credit card balances as you receive them.
• If you can't pay off your balances, pay more than the minimum payment required on your credit card.
• Do not become involved with on-line games or betting.
• If you have problems paying credit cards, be cautious about the organization that you pay to help you with financial planning.  See Credit Repair Self-Help. 
• If you have an expense that you are unable to pay, check with your Financial Aid Counselor to see if you are eligible for additional student loan funds.  Student loan repayment is much more flexible than consumer loan repayment.
• Protect your identity.  Do not convey credit card numbers or social security numbers using a cell or cordless telephone.  The Federal Trade Commission offers advice regarding identity theft.  You can also download their brochure about the subject.
• Check your credit score.  A good resource is a brochure from the Consumer Federation of America.
• Review your student loan balances at least yearly.  Determine the amount of payment that you would be making if you did not borrow additional funds.  This can be done on the NSLDS federal system.  If your loans have been obtained through Salliemae, you can go to their website to obtain this information.  If you have applied for financial aid using the FAFSA, your loan information is included on your Student Aid Report.  Once you have determined the total amount that you have borrowed, use the calculator to determine your monthly payment.

Some links are provided below for information regarding financial issues that student's need to know.

Suntrust Money Management Information

Student Credit Cards 101:  A student's Guide to Credit

Credit Repair Self-Help

Money Management Information

Consumer Credit Counseling

Institute of Consumer Financial Education

Identity Theft

Credit Card Smarts - University of Illinois Extension

Financial Fitness Tool - Mapping your future