Hinweis der Redaktion

1. Madison College is committed in providing resources for all students so that they may become financially literate.  But what does financial literacy mean? The President's Advisory Council on Financial Literacy defines financial literacy as "the ability to use knowledge and skills to manage one's financial resources effectively for a lifetime of financial well-being."  Being financially literate allows the student to understand and evaluate their finances and all opportunities available to them to make educated decisions.
2. You are probably thinking – so what do I need to know to be financially literate?
3. But what do the surveys show?
4. The results are not what we hoped for, but it is a reality for many students today. Madison College is focused to help change these statistics for our students and point them in the right direction for building a solid future.
5. Let's face it: getting an education is expensive!  Students today are faced with higher debt levels than ever not to mention confusing repayment options, multiple debt holders and a rough job market. Unequipped with the resources needed, students leave college with tremendous amounts of credit card and/or student loan debt with no idea how they are going to afford to pay them off.  Madison College’s goal is to address this problem!
6. In order to begin building a solid financial foundation it is important to start asking yourself some questions: (read all questions on slide)What money issues have you and your family experienced?Why do you experience money issues?What messages have you received about money and spending?Do you have a plan for how you are going to cover the cost of your education and living expenses?The answers may surprise you. You may not even know the answers to some – but we are here to help!
7. Students with poor financial literacy tend to spend money carelessly and borrow it excessively. They do not save money and tend to have bad credit and high interest payments. On the opposite hand, students with smart financial literacy are able to follow a budget, limit their debt, pay their bills on time and also manage with credit effectively. So which do you have?
8. Budgeting lays the foundation for overall financial planning. For healthy financial literacy you should learn how to track your current spending habits, calculate your income, identify your expenses, set goals and create a final budget
9. The first step to creating a successful budget is to know how much money you have coming in.  It is important to not only calculate the regular income that you have coming in as take home pay from work but also any other sources on income such as financial aid, work study, money received from friends or family, interest earned on checking/savings accounts, etc.  This list is open-ended and varies for each student.
10. The next step is to know where your current money is going. It helps you recognize how much money you really are spending and where it is being spent. Carry a small notebook and write everything down from a soda from the vending machine to your rent payment.
11. The last and most important step is to create a final budget. You will need to compare the money that you have coming in with the money that you have going out. If your expenses are greater than your income, you have two options: identify ways to cut your spending (needs vs.) wants and/or look for additional ways to increase your income.
12. The Madison College Financial Aid website tutorials will answer most of your questions about financial aid. Check it out.
13. Here is information on how to complete the FAFSA
14. This data reflects 2007-2008 information and Madison College is seeing increasing student loan debt each year far surpassing these numbers! College is expensive, it is very important that you really think about how much you want to borrow. Enough said. And this will only grow as tuition goes up and grant funding lags so very far behind.
15. It is very important that you limit the amount you borrow for your education. Financial aide is really designed to assist in covering the cost of tuition, books and supplies. It is not realistic to depend solely on financial aid to cover your living expenses. Student loan debt adds up quickly and you need to make sure that your new career will allow you to earn enough to cover the cost of this debt.
16. In order to maintain financial aid eligibility students must meet the following guidelines:1. Be admitted into an associate degree or one or two year technical diploma program. Certificates, apprenticeships and/or less than one-year diplomas do not qualify for financial aid. Students that have been formally accepted onto the waitlist for a program qualify for financial aid to take any pre-requisites required prior to entering the program.2. Be enrolled in financial aid eligible courses (course catalog numbers beginning with 10, 20, 31 or 32). Courses outside of these catalog numbers do not qualify for financial aid.3. Achieve and maintain a cumulative grade point average or 2.0 of higher.4. Complete at least 67% of the total credits enrolled each term. Classes dropped after the start date of the class will be counted against a student’s completion percentage.Please be aware that these standards are evaluated even if financial aid is not received while enrolled. All students are required to be meeting the Standards of Progress at the time that they receive financial aid. Therefore, a student not meeting these standards due to prior poor academic progress will not be eligible.
17. The maximum time frame in which students must complete their educational program is based on the total credits attempted. Regardless of whether financial aid was received while enrolled, total credits attempted includes all classes students have:Taken at Madison College and any other college/universityRepeated or failedBeen issued an incomplete from or withdrawn fromNot dropped prior to the class start date
18. The payment of financial aid is based on a student’s enrollment as of 5 pm of the Date of Record for each semester. The date of record is published on the Madison College website along with on the Standards of Progress form on your Student CenterClasses added after 5 pm on the date of records will not increase a student’s financial aid eligibility. The student is responsible for payment of any classes added after the date of record.In addition, if classes are dropped after 5 pm on the date of record and enrollment decreased to less than six credits then state grants and student loans will not be disbursed. State grants and student loans require 6 eligible degree credits at the time of disbursement. If any funding has already disbursed, repayment will be required for some or all financial aid received.
19. Student’s academic progress in evaluated at the conclusion of each semester. Students who are not meeting the Standards of Progress with receive either a warning letter or a suspension letter. Students who have received a warning letter are allowed to receive financial aid for the next semester of enrollment. At the end of that next semester Standards of Progress is again evaluated and the student will either be placed back in good standing or go on financial aid suspension.Student who improve their performance and are meeting the Standards of Progress at the conclusion of the next semester are placed back in good standing and will continue to have financial aid eligibility.Students who fail to meet the Standards of Progress at the conclusion of the next semester are placed on financial aid suspension and become ineligible for future semesters of financial aid until they have completed the reinstatement process. For additional information about the reinstatement process please visit the Madison College website.
20. The Academic Fitness Program (AFP) is an individualized program designed for Madison College students on Financial Aid suspension who are requesting an appeal of their suspension status. Although students must be formally referred by the Madison College Financial Aid Office to be considered for Financial Aid Reinstatement, any student who is struggling academically may participate in this program.The main purpose of this program is to:Assist you in assessing what obstacles have led to your poor academic performance in the pastHelp determine your academic strengths and weaknessesDevelop a personal educational plan for your successProvide documentation of your progress and problem-solving throughout the semesterYou are required to complete the AFP if any of the following describe your situation:You have previously been on financial aid suspensionYou are currently on financial aid suspension due to maintaining a completion rate below 51%You are currently on financial aid suspension due to maintaining a cumulative GPA below 1.5
21. We wanted to share some interesting statistics with you. Did you know that over 84% of college students have credits cards, with 50% having 4 or more. The average credit card debt is $3,173, with 21 % of students having balances ranging from $3,000-$7,000.How do these statistics compare to you? How many credit cards do you have currently and what is your current monthly balance?
22. This table shows that an increased percentage of students are using their credit cards for direct educational expenses. The question for you is, if you did not use a credit card to pay for items, could you cover the cost of the items with cash in your bank?
23. Students are also using credit cards for everyday expenses. By developing a budget and sticking to it, the need for credit cards should decrease. If you are unable to purchase the item with money that you have available – it is something that can wait? It is important to reserve the use of credit cards for emergency situations only.
24. Where do you fall when it comes to paying off your credit card? Do you pay it off in full each month? Make minimum monthly payments? Pay of some cards but not others? Have others pay your monthly bill? Food for thought.
25. Students with credit card debt can get into a bad situation rather quickly. Credit scores can lower when you make late payments, exceed the limit on your card, write bad check, default on a loan (including student loans!), file for bankruptcy or are even a victim of identity theft. In order to establish good credit it is important to pay off your balances in full. In the event that you cannot pay in full, make sure you are paying at least the minimum payment and that it is on time!
26. Once you have bad credit – it seems to follow you everywhere! You may not be able to rent an apartment or purchase a home, buy or lease a car. In addition, you may not be able to obtain other forms of credit. If you do, your interest rates may be very high! Use the link at the bottom to learn how your credit history can affect your admission into a professional school.
27. It is essential for you to be aware of your credit history and score. Once a year you can receive a free copy of your credit report. If you find any inaccuracies, make sure that you work to resolve those disputes so that they do not negatively impact your future!
28. The choices you make today will impact the debt and financial resources you will have tomorrow. Choose Wisely and do not hesitate to access our campus resources for support as you pursue your academic goals through Madison College.