Financial Literacy
Financial Literacy is important because it equips people with the knowledge and skills to make informed decisions about their money. When individuals learn to budget, save, manage debt, and invest, they are better prepared to face financial challenges and seize opportunities that can enhance their lives. It helps them avoid costly mistakes, reduce financial stress, and build lasting financial stability. Ultimately, financial literacy enables people to build a secure future, achieve their goals, and make confident decisions.
Frequently Asked Questions
Interest rates for Subsidized and Unsubsidized loans are determined by the US Government annually and updated on studentaid.gov.
Financial need is the difference between the cost of attendance (COA) at the school you plan to attend and your Student Aid Index (SAI)
Cost of Attendance (COA) - Student Aid Index (SAI) = Financial Need
Defaulting on a loan means you are unable to make your minimum loan payment by the due date.
It could lead to difficulty in obtaining additional loans, credit cards, car loans, a mortgage, higher interest rates, and/or being unable to rent an apartment.
Contact the loan servicer immediately to discuss options.
Federal Loans are loans received based on the student filling out their FAFSA. Private loans are loans that come from any other source. Additional information can be found on our Education Loans page.
A credit score is a number between 300-850 which represents the likelihood a person will repay the debt. The higher the number, the more likely you will be approved for a loan or other types of credit.
Your payment history, amount of debt owed, the number and types of accounts you have, how long your accounts have been open, your available credit, the number of inquiries in the last 12 months, and any derogatory accounts (accounts sent to collection agencies, foreclosures or repossessions, bankruptcy).
If you are having troubles making your payments, the first and most important thing is to contact your creditor or loan servicer.
Explore other repayment options that could lower your monthly payments.
Request a deferment or forbearance. These options may temporarily stop or reduce your monthly payments which can allow you to catch up. It is important to ask questions to ensure you understand deferment or forbearance options.
Look into loan forgiveness programs. Depending on your career and loan type, you may be eligible for loan forgiveness programs.
Fixed interest rates do not change and remain the same throughout the life of your loan. Payments on fixed-rate loans typically remain the same and allow for easy budgeting.
Variable Interest Rates can change over the life of your loan. Payments can vary, making it difficult to create and stick to a budget.
Parents can request a deferment through your loan servicer by logging into their studentaid.gov account. Parent PLUS loans can be deferred while the student is enrolled at least half-time, and for an additional six months after the student graduates, withdraws, or is no longer enrolled.
Student loans help cover the cost of attending school. Additional information can be found on our Financial Aid website or at studentaid.gov.