2003

Identity Theft: It Can Happen to You

How to Avoid Identity Theft

• Don't carry your Social Security card with you.
• Request a random driver's license number; don't use your Social Security Number.
• Shred anything with personal information on it.
• Never share your Personal Identification Numbers or passwords.

You will be required to provide your Social Security Number and other personal information as you apply for scholarships, financial aid, and college entrance. This information is used to identify you and to determine your eligibility for aid. Keep copies of these papers in a safe and private place.

How Do I Know if My Identity Has Been Stolen?
Check your credit bureau reports at least once a year:

My Identity Has Been Stolen. What Can I Do?
Notify all three credit bureaus and contact the following agencies:

College is a time when you'll need to know who is safe to provide information to (your college, your student loan lender and guarantor, and reputable scholarship committees) and who isn't. Protect yourself by protecting your information!

The Military - Is It the Right Path for You?

• Check out the information available on the web at sites like www.finaid.org/military/recruiting.phtml and www.myfuture.com.
• Talk to people you know who have been in the military to get the inside story.
• Discuss your future with your parents. Where does college fit into your plans?
• Take a list of questions with you when you visit with military recruiters.

Free Financial Aid and Scholarship Help

When is my EFC determined?
Your EFC is determined when you submit your FAFSA (Free Application for Federal Student Aid) to the Central Processing System.

How is my EFC calculated?
The calculation is based on the information you provided on your FAFSA. Several factors are taken into account, including your and your family’s:

• Earnings
• Assets
• Number in household
• Number in college

How do I know what amount my EFC is?
Your EFC is listed on your Student Aid Report, which is a report of all the information you included on your FAFSA. If you included an e-mail address on your FAFSA, you will receive an e-mail notifying you when your electronic SAR is ready. If you did not include an e-mail address, you will be mailed a paper SAR.

You can calculate an estimated EFC using FinAid’s online Financial Aid Estimation Form at http://www.finaid.org/calculators/finaidestimate.phtml.

How will my EFC change if I choose a different college?
Your EFC does not change based on the college you choose. It is the same whether you choose a public, private, or technical college. However, it will change each year based on your FAFSA information for that year.

What is Reciprocity?

You may have heard the term reciprocity thrown around by colleges. What is it and how does it work?

Reciprocity is an agreement between states that allows students to attend a public college in a state they are not from for a reduced rate.

For example, South Dakota students attending college at a public Minnesota school may be charged the resident tuition rate, rather than the higher, out-of-state cost.

South Dakota students that choose to attend a participating college in a state that is part of the Western Undergraduate Exchange (WUE) are offered reciprocity that is a reduced rate (150% of in-state tuition). To learn more about WUE visit http://www.wiche.edu/SEP/WUE/index.asp.

For more information on the cost of the college(s) you are interested in, contact the financial aid office at that college.

Cell Phones and College

Cell phones are common and convenient, but can also be expensive. Now that you're headed toward college, think about the following before signing a cell phone contract.

Do you really need it?
College can be a life of penny pinching and frugality. Does a cell phone really fit into what you'll be able to spend as a college student?

Consider using e-mail and asking for pre-paid phone cards as gifts. Doing so could save you a lot of money throughout college. Don't forget that answering machines work great for getting messages from friends and family - without voice mail's monthly fee.

Benefits of a Cell Phone
Though there may be less expensive ways to communicate, cell phones can be great in emergencies (your car breaks down) and some may offer free long distance. If you do decide to get a cell phone:

• Shop around for a plan with a price and set-up that works for you.
• Mind your minutes. Going over your pre-set minutes can be very costly.
• Consider using it only for emergencies. Using it to order pizza can use up your minutes quickly.
• Think about keeping your phone off or leaving it at home. You won't be tempted to use it wastefully and won't be charged for calls you might receive. Keep in mind that your professors will not be pleased if your call interrupts their lectures.
• Ask for help. Your parents or other experienced money managers may have some great advice to help you keep on track financially.

How to Save Money at College

Late night pizzas, long-distance phone calls to Mom, spring break road trips. It's easy to spend lots of money at college - money you don't necessarily have. College is not the time to splurge, especially if you're borrowing student loans. Living within your means now (however meager) will help you live a better life after college, without tons of debt hanging over your head.

Here are some major ways to save money during your college years:

• Avoid credit cards. If you do decide to get one, use it for emergencies only. And that 10 a.m. cappuccino is not an emergency.
• Have you ever spent your car payment on clothes? Make a budget and stick to it. It's the only way to be in total control. More info on budgeting is available on our Wise Borrowing page.

But remember, every cent you save makes a difference. It really adds up!

So whether you're choosing SUV vs. compact car or going to vs. renting a movie - consistently making the money-smart choice will help you stay on top of your finances in college and for the rest of your life.

Need more ideas? Visit Top 10 Ways to Save Money at College.

Credit Cards: Advice for Parents

"So What Can I Do?"
As soon as you can, give your child the benefit of what you've learned about credit. Need pointers? Follow these tips:

Discuss with your child reasons for getting a credit card. Can he or she wait until after college?

• Help your child understand how credit cards work.
  
• Have an honest discussion about money and college - where the money will be coming from and how it should be spent. Then set up a budget.
  
• Tell your child that having one credit card and paying it in full each month is the best way to build credit.
  
• If they get into trouble, cut up the cards and help them establish a plan for paying back what they owe.
  
• Check out prepaid credit cards. Like debit cards, money goes into an account and the child can only charge until the funds are gone. This is one way to teach your child how to be a responsible credit card user before they sign up for the real thing.
  
• Think about sharing a card with your child. This is a great way to know what they are spending and to teach them how to use the card wisely.

Credit Cards: The Consequences

Staying on track is easy. Here is how:

• Get only one card.
• Don't charge more than you can afford to pay back.
• Pay off your entire balance each month, before the due date.

What are the consequences of making bad decisions with credit cards?

Too Many Cards
Your total limit will be considered potential debt (a risk) the next time you apply for a loan.

Charging Too Much
Charging more than you can pay back will get you into trouble quickly. You won't have that credit available when it comes time to buy a car or home.

Paying the Minimum
Choosing to carry a balance on your card from one month to the next and paying only the minimum payment amount is a bad plan. Interest charges will increase your debt and you'll soon get in over your head.

Missing Payments
If you can't make your minimum payment each month, you will begin to accrue interest charges and late fees. Late or missed payments will damage your credit, limiting your ability to buy a car or a house. And bad credit will stick with you for around seven years, even after you get back on track.

Avoid these consequences! Wait until you know you can handle the responsibility before getting your first credit card.

2007