Colleges Withholding Transcripts

The Nation just did an article on colleges withholding transcripts from graduates that are in default with their student loans. Re-read that last sentence. You take out loans to pay for your college education banking on the hope that a person with a college degree will have a better chance of getting a decent paying job and firmly settling into middle-class-hood. Then you graduate and you start looking for a job. The loan folks give you six months to find a job before they start requiring repayment.

The Problem

Imagine you’ve graduated, find a low-paying job, move back in with your parents, and start working. You can’t put gas in your car, give a few dollars to your parents for bills, and pay your student loan. You’re trudging along and then one day to see a job posting for the job of your dreams! You’re a perfect fit and it’ll pay you enough to repay your student loans and maybe move out to a small roommate situation. The company requires a copy of your transcripts so you call your alma mater only to find out that you can’t get a copy of them because you’re in default on your student loans. This could become a huge problem.

Documentaries such as Default: The Student Loan Documentary are showing the problems that students are facing repaying student loans.

Debt bomb?

Yahoo! explains the problem perfectly:

A year ago, the Institute for Higher Education Policy published a study tracking the dismayingly high delinquency and default rates of the class of 2005. But as the sum of outstanding student loans has climbed towards the $1 trillion mark, passing total credit card debt along the way, the fact that America’s students are essentially putting themselves into hock for an education has more than a few people panicking. As William Brewer, head of the National Association of Consumer Bankruptcy Attorneys, told the WaPo, “This could very well be the next debt bomb for the U.S. economy.”

Suggestions

I have no answers other than the traditionally held:

#1 Attend a community college to complete your lower division classes.

#2 Choose a college with good return on investment (ROI).

#3 Get as many grants and scholarships as you can.

#4 If you have to take out loans, only take what you need. You can deny portions of your loan package.

#5 Start paying the loan off while you’re in school. Interest is a beast.

What suggestions do you have for dealing with paying for college?

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com.

Free Book

Get this book free.

For a limited time, “10 Things College Students Need to Know About Money is available for FREE in the Kindle Library.

Review from Until No More on Goodreads.com:

If you are the type that was never really scared of finances but kind of veer away from them because it just seemed boring and overly complicated. Then have no fear because the Financial Expert Author Shay Olivarria is here.

I purchased this book, read it and when I was done, I can honestly say that I felt very different about my finances in a good way. I know the book reads 10 Things College Students Needs to Know About Money but the truth is everyone can benefit from this book. So in a nut shell:

This book is funny, an eye opener, light but all in all everything you need to know. Now, usually I’m not one to say “go get this book” but seriously if you don’t have it go get it, especially if you care about you and your family’s financial future.

It had sure change my life!

Until…

Don’t have access to the Kindle Library? Buy it here.

Fox Business

The most dynamic financial education speaker working today, Shay Olivarria, was quoted on Fox Business in “Are You a Good Fit for a Credit Union?”. As usual, Shay is a strong advocate of credit unions. Her quotes are centered around the benefits of using a credit union for college students.

While a handful of large, well-known banks appear to dominate the banking landscape, and smaller community banks are often touted as the only alternative, the truth is that there’s a third option used by more than 91 million Americans.

Credit unions are becoming increasingly popular, and with more than 7,000 of them across the U.S., consumers have a lot of choices. But is a credit union right for you?

Consider these five types of consumers who routinely join credit unions.

College Students Learn About Finances

Even if they had a checking account or savings account as kids, most college students are still relatively new to managing their finances. Oftentimes, that means they don’t get the best deal from banks, says John Iglesias, CEO of Salal Credit Union in Seattle.

“College students often don’t have much of an income or an extensive credit history, so larger financial institutions may characterize them as risky, and that likely means higher fees on products,” Iglesias says.

According to Iglesias, some credit unions are specifically set up by schools for students, and their business model is geared toward working with younger customers who might not keep a very high balance in their checking account.

But Shay Olivarria, author of “10 Things College Students Need to Know About Money,” says credit unions also offer a real advantage to college students because they can be more forgiving if you make a mistake.

“There’s a focus on financial education with credit unions, and college students have more of a support system in terms of learning about money,” says Olivarria.

Click here to read more

Credit Union Times

You guys know how much I respect and appreciate the work that credit unions do, right? Well, I’m honored that the Credit Union Times has included me in a story about getting students engaged in financial education. Whoo hoo!

Read “Pop Culture and Field Trips Drive Home Personal Finance Lessons“.

“So many of the financial education courses focus so much on the theory and academia of it that kids just shut down,” said Shay Olivarria, a credit union board member, speaker and author of 10 Things College Students Need to Know About Money-Small Changes Make a Big Difference.

“Instead of telling them about a bunch of terms, present the information from where they are at. Otherwise they’ll just tune you out because they’re thinking, ‘You have no idea of the life I lead,’ and that doesn’t make them want to save.”

Read the full article here.

Enter to Win

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Answer 4 questions for your chance to win one of 10 copies!

SORRY. THIS CONTEST IS CLOSED.

Anyone that knows me, knows that July is my favorite month of the year. To that end, I’m giving away 10 copies of 10 Things College Students Need to Know About Money during a month long contest starting July 1! Just take the 4 question survey for your chance to win! The giveaway will only be available from July 1 to July 31.

Winners will be notified by email Monday, August 2nd.

Click here to take the survey.

HBCU Digest Column – Ignorance is Bliss

This month I began writing for HBCU Digest. I’m really concerned with providing financial education to students at HBCUs. These colleges and universities graduate half of the Black professionals in the US. It makes no sense to prepare these students to get a good job and not educate them on how to handle the money they will be earning.

Every month I’ll post financial education tips, musings from my work at HBCUs, and answers to questions from students at HBCUs. The first column is titled “Ignorance is Bliss”.

Be well.

June 26th – Master Your Money at Riverside Community College

Shay Olivarria is teaching Master Your Money: Increase Your Crdit Score & Decrease Your Debt June 26th at Riverside Community College.

I’m thrilled to be facilitating Master Your Money: Increase Your Credit Score & Decrease Your Debt at Riverside Community College.

Course Description: This class will keep you laughing as we look at a tough subject. We’ll help you understand your debt management strategies and credit scores using Money Matters: The Get it Done in 1 Minute Workbook to create a specific plan to reduce debt and increase your credit score. You will create a debt management plan in class and leave with specific, measurable, attainable, realistic and timely action items to help you take control of your finances.

Saturday, 10:00 am – 1:00 pm; 1 session on June 26, 2010

Tuition: $49.00 Materials Cost: $15.00

Instructor: Shay Olivarria

Location: Riverside City College

Sign up for the class now!