Financial Aid News and Events
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Building Futures through Financial Literacy - Money Matters Series
The Bureau of Labor Statistics estimates that the average American spends About $1,800 on clothes each year. That’s $150 a month! $150 could cover the monthly payment on $12,000 student loan.
Some ways to save on clothing expenses include buying…
- Clothes that do not need to be dry cleaned
- At thrift stores - you’d be surprised at the quality clothing available
- Clothes on sale or clearance
- Items that can easily be mixed to match with other clothes
The Four C’s of Credit
Capacity - Capacity is the ability to repay loan. Lenders want to know the borrowers:
- Debt level
- Income sources
- Length of employment
Character - Will the borrower repay the Loan? The lender looks at his or her:
- Types and amounts of credit used
- Timely payment bills
Collateral - Is something of value that the borrower agrees to surrender if the loan is not repaid.
Capital - Capital is another word for the borrower’s accumulation of wealth, measures in terms of: Net worth Other assets that could be used to repay the debt.
A $750 Lunch?
What’s the value of your lunch? Get this: if you ate homemade lunches instead of buying them, you could expect to save at least $5 a day. Do this three times a week and you’ll save at least $15. Practice this routine 50 weeks a year and the savings build to $750.
If you applied that $750 toward credit card payments, you would not only reduce your balcance dramatically, you’d also save on accumulated interest. Now, that’s a real value.
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