Why Taking A Pay Cut Was The Best Career Move I've Ever Made
But when I accepted the offer to work at Financial Finesse and join the team of elite CERTIFIED FINANCIAL PLANNERTM professionals who work here, I was also accepting a pay cut. And it turned out to be one of the best decisions I’ve ever made.
Source: Forbes
Trump, DeVos Announce Their Plans for Student Loan Changes
Student borrowers have been waiting with baited breath to find out how President Donald Trump plans to tackle the student loan debt crisis, and now a clearer picture has emerged. Secretary of Education, Betsy DeVos, has announced a plan to streamline student loan repayment and provide better customer service and support for borrowers.
Here is what the student loan repayment market looks like now:
DeVos highlighted the following changes for student loan servicers:
There are critics to this plan. USA Today College interviewed student advocates who are worried that handing over all federal student loans to one provider would create a “trillion dollar bank,” or a provider who has all of the power to determine repayment, refinancing and payment schedules.
The Trump administration insists that interest rates and repayment plans won’t be changing all that much – yet. However, there are plans to potentially eliminate the student loan forgiveness program for serving in the public sector in the years to come, which would affect more than half a million people according to Business Insider.
Additionally, Trump and DeVos would like to make changes to Obama’s rule to forgive the student loan balance after 20 years if borrowers made consistent monthly payments at 10% of their income. Trump has proposed loan forgiveness after 15 years of consistent payment at 12.5% of income. While monthly payments would be a few hundred dollars higher; borrowers would save thousands of dollars over the lifetime of the loan repayment and be forgiven sooner.
As of now, there is no timeline for deciding on a primary loan servicer – or for when the overhaul will come into effect. Student borrowers should continue making their regular student loan payments to their providers until they hear otherwise. As always, we’ll provide updates on the student loan overhaul as they are announced and implemented.
Source: Fastweb
Is Borrowing Against Future Cash A Bad Idea?
Although the idea of getting some cash into your hands right now may seem appealing, it could turn out to be an expensive decision in the long run…very expensive. Let’s look at some potential windfall scenarios and examine what could go wrong, along with some alternatives.
Source: Forbes
5 Things I Wish I Knew Before Buying My First Home In My 20s
Taking the time to research the home buying process, considering your lifestyle and coming up with an exit strategy can help prevent the American Dream of home ownership from turning into a nightmare cautionary tale.
Source: Forbes
Fannie Mae Offers New Solutions to Students with Debt
The weight of student loans upon a person’s financial history impacts more than stress – it makes important steps in life, like becoming a homeowner, next to impossible. Since more college graduates are finding themselves in this predicament every day, mortgage giant Fannie Mae decided to look for some solutions.
Here’s what they came up with: Fannie Mae is doing college graduates with student loan debt a favor by changing the rules of the game. Commonly known as Fannie Mae, the Federal National Mortgage Association recently made an announcement that may make it easier for student borrowers to become homeowners.
When you’re a student borrower, your debt-to-income ratio (DTI) is the monthly amount owed in expenses (such as rent and student loan payments) in relation to the amount of money you’re bringing in via income. Having student loans raises a person’s DTI. And, the higher your DTI, the more difficult it is to get a mortgage.
In other words, the more you owe from borrowing to pay for school, the less likely it is that you’ll become a homeowner anytime soon.
Before this announcement, lenders were able to take 1% of the total student loan amount, which was skewing DTIs for many student borrowers. Now, a new policy announced by Fannie Mae allows lenders to take the actual loan payments into account.
Once they do so, the DTI ratios will go down, therefore allowing more borrowers to qualify. These new rules create the possibility for student loan borrowers to increase their buying power – making what seemed impossible yesterday, now possible in the future.
Additionally, borrowers of student loans will have an option to exclude and debt that’s non-mortgage related paid by others as part of their loan application process.
Plus, these new rules will impact more than potential homeowners who were student borrowers. Current homeowners will now have an opportunity to pay off their student debt via a mortgage refinance. Parents that co-signed a student’s loans are able to take advantage of the new rules pertaining to student loan cash-out refinancing.
The only downside? Homeowners are at risk of losing on any existing advantages within their original loan contracts such as forbearance.
Learn more about the new Fannie Mae solutions created to help borrowers pay down debt and overcome obstacles associated with student loan debt.
Source: Fastweb
Borrowing for College: How Much is Too Much?
Too much of a good thing can be bad, as Shakespeare demonstrated, and the axiom is true of student borrowing for college.
Students may believe it is difficult enough worrying about the big exam next week or whom to take to the spring dance. Yet students must stretch themselves and imagine a much greater consequence, years into the future, when they consider how much money to borrow to pay for a higher education.
The first step is to try to avoid borrowing in the first place, experts say. “Students should thoroughly explore scholarships, grants and community service awards before they begin borrowing for college,” said Marianne Ragins, author of Winning Scholarships for College and publisher of ScholarshipWorkshop.com, based in Centreville, Virginia.
The next step is to set up a budget based on the salary you’ll likely make after you graduate from college, Ragins said. Students can check average starting salaries in their field at Web sites such as Salary.com and the U.S. Department of Labor’s Occupational Outlook Handbook.
Most importantly, students must view each dollar they borrow for college as a dollar that they will be unable to spend to buy such essentials as a car, a house, or to start a family, and a dollar that they cannot put into a retirement-savings account. “It’s important for families to work that through, to write down numbers and understand what you are signing up for,” said Rita Johnson, a financial advisor at the Millstone Evans Group of Raymond James & Associates, a brokerage firm in Boulder, Colorado.
If there is ever a time for discipline and independence, this is it, experts say. That’s because lenders are in the business of urging students to borrow as much as possible, and won’t warn of the financial consequences.
After students come up with a number for the amount they expect to borrow, they should make sure the loan amount, plus other expected debts such as rent and car payments, do not exceed 33 percent of their expected future income, Johnson said. Free online calculators are available to help put together a budget and estimate future costs. If college-loan and other debts consume more than a third of future income, look for alternatives.
For example, your budget may look like this:
Budget based on roughly $30,000 net yearly salary:
• Rent – $550
• Debt – $130
• Phone – $45
• Utilities – $100
• Cable/Internet – $20
• Food – $100
• Car/Insurance – $205
• Personal – $240
• Medical – $100
• Savings – $110
TOTAL: $1,600 (take home after taxes)
“It’s going to be each student’s decision – is it absolutely worth it to me to go to the University of Chicago rather than to a public college, or must I go to Juilliard or another outstanding ‘name’ college rather than a cheaper alternative?” said Johnson.
Students must take into account new laws and policies that make debts nearly impossible to write off. Student loans are no longer easily swept away under today’s tougher bankruptcy laws. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 extended non-dischargeable debt to student loans from private lenders, so they cannot be automatically written off. Instead, people seeking bankruptcy protection must prove that they cannot repay a student loan and still maintain a minimally adequate standard of living.
The idea that using credit cards to pay for college will be easier is a delusion with terrible consequences, said Robert M. Manning, author of Credit Card Nation and director of the Center for Consumer Financial Services at the Rochester Institute of Technology’s College of Business. Credit cards carry even higher fees than traditional student loans, leaving the unsuspecting to fall into a situation where it would take their entire lifetimes to pay off a credit-card debt, Manning said. Students who want to attend graduate school or another professional school after college must include those debts in any calculation of their future standard of living, Manning said.
“It forces people to say, ‘If I’m going to graduate with $50,000 of student-loan debt, how am I going to make it on a $40,000 salary?’” he said.
Source: Fastweb
401(k) Mistakes You Could Be Making (But May Not Be Aware Of)
There are many people who are making regular contributions to their 401(k) plans but are not aware of some other major mistakes they may be making. Here is a summary of some that you need to avoid:
Source: Forbes
How Do Your Retirement Savings Compare?
Stop comparing yourself to what others are doing or saying you need. What really matters is what YOU need to do to get where YOU want to be.
Source: Forbes
Financial Aid for Lesbian, Gay, Bisexual and Transgender Students
There are a number of scholarships available to lesbian, gay, bisexual and transgender students. These scholarships offer a variety of criteria for eligibility. This is not an exhaustive list of all the possible sources of scholarships.
If you identify as a lesbian, gay, bisexual or transgender student, you should also call the colleges that interest you and ask if they have a LGBT Resource Center. The resource center should have information about any local LGBT awards.
Stonewall Community Foundation
The Stonewall Community Foundation offers several scholarship opportunities for LGBT students.
SOLGA Kenneth W. Payne Student Prize Competition
The American Anthropological Association offers this award for a scholarly anthropological paper, written by a student, on a gay or lesbian topic.
Gamma Mu Foundation Scholarships
The Gamma Mu Foundation awards individual scholarships to gay men who want to continue their education beyond high school at a college, university, or through a vocational or professional training program. The program supports a wide range of educational options, including vocational and technical training, as well as Associate’s, Bachelor’s and graduate degrees.
The LEAGUE Foundation awards scholarships for lesbian, gay, bisexual, and transgender high school seniors. Scholarships include the Matthew Shepard Memorial Scholarship (name used with permission of the Shepard family), named for the Wyoming college student murdered in 1998 for his sexual orientation, and the Laurel Hester Memorial Scholarship.
Malyon-Smith Scholarship Award
The American Psychological Association’s Division 44 (Society for the Psychological Study of Lesbian and Gay Issues) offers this award to support graduate student research into psychological issues relevant to gay, lesbian and bisexual individuals, groups or communities.
Live Out Loud Annual Scholarship
The Live Out Loud Annual Scholarship provides five $5,000 scholarships to lesbian, gay, bisexual and transgender students who have shown exceptional leadership, courage, and achievement. The scholarship is open to graduating high school seniors in the tri-state area (NY, CT, NJ).
NGPA-Education Fund Scholarships for Aviation Students
The National Gay Pilots Association (NGPA) Education Fund provides scholarships to members of the gay and lesbian community (including straight allies) who are pursuing an aviation career as a professional pilot.
National Lesbian and Gay Journalists Association (NLGJA)
NLGJA provides several scholarships and awards for “students who demonstrate a commitment to providing fair and accurate coverage of the lesbian, gay, bisexual and transgender (LGBT) community.”
NWSA Graduate Lesbian Caucus Award
This award provides financial assistance to graduate students doing Master’s thesis or Ph.D. dissertation research in lesbian, queer and LGBT studies.
The American Psychological Foundation (APF) sponsors the Roy Scrivner Research Grants for graduate and postdoctoral research concerning the study of lesbian, gay and bisexual family psychology and family therapy.
The Point Foundation is a national, publicly-supported scholarship fund that provides financial support, mentoring and hope to meritorious undergraduate, graduate, and post-graduate students who are marginalized because of their sexual orientation or gender identity.
The Queer Foundation sponsors a high school seniors English essay contest to promote queer studies.
Policies on eligibility of transexual students for gender-based athletic scholarships and participation on gender-based sports teams vary significantly from school to school. Often schools will go by the current gender of the individual, if the physical transformation is complete, and the gender listed on the birth certificate otherwise.
Team DC Student-Athlete Scholarship
(Washington, DC) The Team DC Student-Athlete Scholarship awards a scholarship to a self-identified lesbian, gay, bisexual or transgender (LGBT) student-athlete who has enhanced the perception of the LGBT community through contributions and involvement in one or more sports.
Asian/Pacific Gays & Friends Scholarship (Southern California)
To be eligible, you must be a male Asian/Pacific Islander involved in gay community leadership/activities in Southern California (counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura).
Gay and Lesbian Business Association of Santa Barbara Scholarship (Santa Barbara, California)
This non-profit organization provides financial assistance to lesbian, gay or bisexual undergraduate or graduate students enrolled in postsecondary institutions in Santa Barbara County. Applicants must show financial need, academic achievement, community involvement and extracurricular activities.
George Choy Memorial Scholarship/Gay Asian Pacific Alliance (Bay Area, California)
The Gay Asian Pacific Alliance (GAPA) offers this award to provide financial assistance to gay, lesbian, bisexual and transgender Asian and Pacific Islanders. To be eligible, you must be an Asian/Pacific Islander graduating from a Bay Area high school (counties of Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Napa, Sonoma and Solano).
Bobby Griffith Memorial Scholarship (Contra Costa County, California)
This award provides financial assistance to gay, lesbian, bisexual and transgender youth who contribute to the community by improving the environment for GLBT youth. To be eligible, you must live in Contra Costa County and be a graduating senior.
Peter Kaufman Memorial Scholarship (California)
To be eligible, you must be a gay, lesbian, bisexual or transgender high school senior who has worked with the GLBT community.
Jonathan Lax Scholarship Fund for Gay Men (Philadelphia, PA)
The Lax Scholarship Fund was established in 1994 by the late entrepreneur and inventor Jonathan R. Lax for the express purpose of encouraging gay men to obtain additional education, aspire to positions in which they contribute to society, be open about their sexual preference, and act as role models for other gay men with similar potential.
PFLAG National LGBT Scholarship Program
The PFLAG National GLBT Scholarship Program was established by Parents, Families and Friends of Lesbians and Gays (PFLAG) in 2003 to help support the education of GLBT youth and allies. To be eligible, a candidate must be a graduating high school senior who self-identifies as either a GLBT person or supporter and who demonstrates an interest in service to the GLBT community.
PFLAG/HATCH Youth Scholarship Foundation (Houston, Texas)
Out for Education is one of the largest funders of LGBT scholarships in America. They provide scholarships to LGBT youth from the Houston area or attending college or universities in Houston.
The Harvey Milk/Tom Homann Gay and Lesbian Student Scholarship (San Diego County, California)
This award was established by the Imperial Court de San Diego to help San Diego area students achieve their goals of vocational, technical or professional careers. To be eligible, you must be a lesbian, gay, bisexual or transgender resident of San Diego County.
The Harvey Milk Scholarship (Orange County, California)
This program was established by the Orange County Imperial Court to award scholarships to students attending Orange County (California) colleges.
Minnesota GLBT Educational Fund (Minnesota)
This award recognizes outstanding gay, lesbian, bisexual and transgender youth and friends, and supports their continuing education. To be eligible, you must be a resident of Minnesota or a resident from elsewhere who is attending (or planning to attend) a Minnesota educational institution.
NYNEX Diversity Scholarship Awards (New York)
These awards help finance higher education for students from diverse cultural, ethnic, educational and special needs backgrounds. To be eligible, the candidate must reside in NYNEX service territory.
eQuality Scholarship (Northern and Central California)
This award provides financial assistance to graduating high school seniors from northern and central California who have promoted understanding of and equality for the lesbian/gay/bisexual/transgender community. The scholarship amount is typically $5,000. The award was established by PG&E PrideNetwork and the Gay, Lesbian and Straight Education Network, San Francisco-East Bay.
Markowski-Leach Scholarship Fund (3 California Colleges)
The Markowski-Leach Scholarship Fund provides financial assistance to gay and lesbian undergraduate and graduate students who help enhance the greater society’s perception of gay and lesbian people. To be eligible you must be enrolled as an undergraduate or graduate student at San Francisco State University, the University of California at Berkeley or Stanford University.
The Pride Foundation (Pacific Northwest)
The Pride Foundation offers more than 50 different scholarships. A single application is used to apply for all of the scholarship programs. Scholarships are available to lesbian, gay, bisexual, transgender, queer, and straight-ally (straight and supportive of LGBT issues) students as well as students raised by LGBT families. Applicants must be residents of the Pacific Northwest (Washington, Oregon, Montana, Idaho or Alaska), but may study anywhere in the United States.
The Greater Seattle Business Association (Washington state)
This award is offered to undergraduate residents of Washington who demonstrate financial need and the potential to build leadership and promote diversity in the sexual minority community. Scholarships are available to students to attend college, creative or vocational training or other postsecondary education in the state of Washington.
The Joseph Towner Fund for Gay and Lesbian Families (Bay Area, California)
To be eligible, you must be a postsecondary student with at least one gay or lesbian parent residing in the Bay Area (counties of Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Napa, Sonoma and Solano).
United Teachers Los Angeles Stonewall Scholarship Fund (Los Angeles, California)
The UTLA Gay and Lesbian Issues Committee awards scholarships to deserving high school students to further their educational goals. To be eligible, you must be a student of the Los Angeles Unified School District (LAUSD) or enrolled in a high school completion program.
White Rose Scholarship (Colorado)
The White Rose Scholarship is available for Colorado residents with a GPA of 3.0 or higher who demonstrate financial need and community involvement.
First Friday Breakfast Club (Iowa)
The First Friday Breakfast Club in Des Moines, Iowa, offers two scholarships for Iowa residents.
Matthew Shephard Scholarship (Iowa)
The Matthew Shepard Scholarship is awarded to gay and lesbian high school seniors from Iowa who plan on attending an Iowa Board of Regions university (Iowa State, University of Iowa or the University of Northern Iowa).
The Allen (Dan) Memorial Scholarship provides financial assistance to students demonstrating service to or achievement in, the gay-lesbian community. The Tim Wolfred Scholarship is offered to students with financial need who are taking at least one class in the Gay, Lesbian and Bisexual Studies Department at City College of San Francisco.
The Scott Rohlf Presidential Leadership Initiative Award is presented annually to one or more students who have demonstrated leadership and involvement in the lesbian, gay, bisexual and transgender community at Iowa State University.
OSU Gay, Lesbian, Bisexual and Transgender Alumni Society (PFLAG Scholarship)
Ohio State University’s Gay, Lesbian, Bisexual, and Transgender Alumni Society awards undergraduate scholarships to students who have dedicated time and energy to the GLBT community and toward GLBT and HIV/AIDS issues.
The Barry H. Marshal Scholarship provides recognition and financial assistance to outstanding undergraduate students enrolled or planning to enroll at Penn State University who have demonstrated need for funds to meet their necessary college expenses and who advocate for or contribute to the lesbian, gay, bisexual, transgender (LGBT) community.
University of California, Berkeley
The Gender Equity Resource Center provides a full listing of university and privately sponsored scholarships that are available to gay, lesbian, bisexual and transgender students as well as those engaging in LGBT studies.
University of California, Irvine
The Bruce Wade Memorial Scholarship for Lesbian, Gay and Bisexual Students provides financial assistance to UCI lesbian, gay and bisexual students who contribute to improving the campus environment for other lesbian, gay and bisexual students.
The James J. Harvey Dissertation Fellowship provides financial assistance to graduate students studying male or female homosexuality, including but not limited to sociological, medical, political, historical and legal ramifications or to the study of the life and work of James J. Harvey.
University of California, Los Angeles
The Lambda Alumni (UCLA Lesbian & Gay Alumni Association) Scholarship Program provides financial assistance to students showing academic excellence and service to the lesbian, gay and bisexual community, regardless of sexual orientation.
University of California, San Diego
The LGBT Undergraduate Scholarship Program encourages gay, lesbian, bisexual, and transgender UCSD students to apply for the six scholarships made possible by generous contributions from many people.
University of Puget Sound LGBT Leadership Scholarship
The Puget Sound LGBT Leadership Scholarship Fund was established to recognize students who have demonstrated leadership and involvement in the lesbian, gay, bisexual, and transgender (LGBT) community at the University of Puget Sound.
University of Southern California
The Lambda Alumni Association of USC offers gay, lesbian and bisexual scholarships to recognize outstanding and accomplished students in the community.
The Bill Kidder Fund Award is given to a University of New Hampshire (UNH) student each year who, through their scholarship, leadership or other outstanding efforts, fosters greater understanding concerning sexual orientation and gender identity in the UNH community.
Source: Fastweb
Are You Part Of Generation Credit?
I’m part of what I call “Generation Credit:” that group of Americans now in their mid-40s to mid-50s who got off to a rocky financial start in the eighties and nineties thanks to direct marketing and our own magical thinking.
Source: Forbes
What To Know Before Cosigning A Loan
If your friends or family members ever ask you to cosign for a loan – any loan – give this decision plenty of thought before you say “yes.” You might even consider just making a gift instead or borrowing the money yourself.
Source: Forbes
7 Things High School Students Should Know about Student Loans
As you search for the perfect college, student loans may be the last thing on your mind. However, student loans are the one thing that will make your collegiate dreams possible. Therefore, it bears getting to know student loans a little sooner than you may think necessary.
1. Student loans are part of the financial aid package.
Most people correlate financial aid with grants and scholarships – or free help – but student loans are also part of the package. They technically serve as help to pay for school, regardless of the fact that they must be paid back after graduation. When you receive your financial aid package from each school, don’t assume that everything listed is grants or scholarships. Look carefully at each item, and call your school’s financial aid office if you have questions.
2. There are two types of federal student loans.
Federal loans fall into two categories: subsidized and unsubsidized. Subsidized student loans are reserved for students that have financial aid, and the federal government pays the interest while you’re in school. Unsubsidized student loans are available to all students, regardless of financial need. However, students are responsible for paying all interest on the loans. To be eligible for both of these loan options, students and their families must submit a FAFSA.
3. If federal student loans don’t cover the cost, look into private loans.
Though you may be awarded federal student loans in your financial aid package, they still might not cover the total cost of attendance. To find a private student loan, contact your school’s financial aid office and ask about their preferred lender list. This list is put together by the schools and offers a comprehensive look at who they work with, which might be helpful as you navigate the private loan arena.
4. Loan payments aren’t due immediately after graduation.
Fortunately for borrowers, graduation does not bring an onslaught of student loan bills. Rather, you’ll get a six-month grace period during which no payments need to be made. This allows borrowers to find employment before they have to take on monthly loan payments.
5. There is such a thing as student loan forgiveness.
Student loans can be forgiven – but you have to meet quite a few requirements. Forgiveness requires that you have a job serving in the public sector with government organizations, not-for-profits and other types of qualifying public services like law enforcement, teaching and military service.
6. Student loans can’t be dissolved through bankruptcy.
While most debts can be terminated through bankruptcy, student loans cannot. They are with you for life – that is, until you pay them off. It should be noted that if you stop making payments on your student loans, the federal government has the right to start taking your wages from work in order to pay the debt. It’s best to make the payments on time and consecutively.
7. Don’t borrow more than you can realistically handle.
Here’s a good rule of thumb: don’t borrow more than your starting annual salary. Research potential careers and their salaries with salary.com and use that data to set a ceiling for borrowing. Borrowing more than what you expect to make will result in paying off more debt for many, many years. Essentially, don’t take on more than you can handle.
Student loans should not be taken lightly. Getting to know them sooner rather than later can help you plan better for borrowing and repaying. Fortunately, Fastweb provides plenty of student loan help – get expert answers here.
Source: Fastweb
3 Times When It Made Sense For Me To Take On Debt
The bottom line is that when it comes to financial priorities, there are some things that are black and white (retirement always comes before kids’ education), but there are a lot of gray areas as well.
Source: Forbes
How to Deal if Your Parents Won't Pay
Unfortunately, federal aid isn’t distributed on whether or not your parents want to pay for your education; it all depends on if they can. Parents have many reasons for not contributing to their child’s education: can’t afford it; it’s the child’s responsibility; sticky divorce. But your parents refusal actually hurts you more than they may know.
Regardless of your parents’ reasons, the federal government’s opinion is this: paying for a college education is your parents’ primary responsibility. The government will only finance your education if it’s impossible for your parents to pay up. So what should you do? Fill out the FAFSA.
Even if you don’t qualify for need-based aid, filling out the FAFSA automatically qualifies you for an unsubsidized Stafford Loan. Yes, “loan” may be an icky word, but a federal government loan is the best loan opportunity that you will ever come across. The interest rates are low, and the payment plans make it easy to pay off your student loan debt.
Also, by filling out the FAFSA, you may qualify for subsidized Stafford and Perkins Loans as well as Pell Grants, which are even better.
Pitch the idea from the angle that they don’t have to help financially but they can do you this huge favor. Additionally, it’s not a bad idea to go to your school’s financial aid office and present them with your situation. Maybe they can pull some strings or talk Mom and Dad into helping. Still not budging? Check out these other tips on convincing your parents to help this one last time.
Source: Fastweb
What That Financial Aid Package Really Means
Don’t make a hasty choice that you and your child may later regret. Even in the 11th hour, these steps can help you evaluate your child’s financial aid award packages to help you and your child make the most informed decision.
Source: Forbes
