We want you to be ready for anything when you graduate from San Jacinto College. That includes mastering your finances and understanding your student loan repayment options. Use our tools and resources to get started!
We understand how challenges outside the classroom can affect your success. Find help for food, clothing, housing, and more.
2-1-1 Texas is a program through the Texas Health and Human Services Commission. This free and anonymous hotline connects you with resources throughout the state of Texas. Find what you need by phone or online. Their services can be used for:
Take charge of your financial wellness with these resources:
Write down what you think your expenses are and create a one-month estimated budget. Subtract that number from your income.
For the next month, track your expenses to see where your money is actually going. Don’t forget to account for cash purchases and ATM withdrawals.
At the end of the month, compare your estimated budget to your actual expenses. How close was your estimated budget?
Based on your actual expenses, separate your wants from your needs. A needed expense includes things like rent, food, and bills. These are things you need to survive. A want is something you’d like to have, like dinner at a restaurant or new clothes.
Write down both your short and long term financial goals. This will help you stay on track as you follow your budget
Using your actual expenses, create a budget and stick to it. Keep in mind that not every month will look the same. Account for irregular expenses that occur once or a few times a year, for example, car insurance. If your insurance is $600 and due in six months, you should budget $100 a month toward it until it is due.
As months pass, track your spending and adjust your budget as necessary. Paying off debts frees money up to go toward other expenses or to put in savings. You can also use what you’ve tracked to project future income and expenses. Soon, your budget will be aligned with your financial goals!
Using an app, computer program, or bank service to help track and manage your expenses can simplify the process. Here are a few tools:
There are many ways to stay within your budget-more than we can list here. But these helpful hints will get you started:
These organizations provide information on money management and connect you to resources that can help with debt relief.
Building and maintaining good credit is essential to financial success and freedom. It can make it easier to get a mortgage or buy a car. It can also help save you money, as lenders provide better interest rates to people with good credit.
But building good credit takes time and effort. There are many factors that go into it, such as paying bills on time, keeping credit card balances low, and protecting your identity. Once you know the basics of credit, you can develop a financial strategy that works for you.
Credit is your reputation as a borrower. It is made up from the information on your
borrowing history and it stays with you for a very long time. Having credit is a privilege,
not a right. If you abuse your credit, you can lose your ability to get more credit.
Your credit report is like your academic transcript, but for money. It shows your
credit history. Lenders send information about your borrowing history to agencies
called credit bureaus. There are three major credit bureaus: Experian, Equifax, and
TransUnion.
You have the right to request one free credit report a year from each of the three credit bureaus. It’s a good idea to request a report every four months from one of the three reporting agencies. This way you are always aware of your credit history, as well as any suspicious activity that can lead to identity theft.
Your credit score is a number ranging from 300 to 850 that measures how well you manage
your finances. The higher the number, the better your credit score. Factors that impact
your credit score include your payment history, the age of your credit accounts, the
types of credit you use, and the number of credit score inquiries you make.
Your credit score can impact your ability to get loans and credit cards as well as affect your interest rates. To improve your credit score, pay bills on time and keep credit balances low.
You can view your unofficial credit score through outlets like credit companies, websites like Credit Karma, or get your official score from Annual Credit Report, or FICO.
Credit is your reputation as a borrower. It is made up from the information on your
borrowing history and it stays with you for a very long time. Having credit is a privilege,
not a right. If you abuse your credit, you can lose your ability to get more credit.
Your credit report is like your academic transcript, but for money. It shows your
credit history. Lenders send information about your borrowing history to agencies
called credit bureaus. There are three major credit bureaus: Experian, Equifax, and
TransUnion.
You have the right to request one free credit report a year from each of the three credit bureaus. It’s a good idea to request a report every four months from one of the three reporting agencies. This way you are always aware of your credit history, as well as any suspicious activity that can lead to identity theft.
Your credit score is a number ranging from 300 to 850 that measures how well you manage
your finances. The higher the number, the better your credit score. Factors that impact
your credit score include your payment history, the age of your credit accounts, the
types of credit you use, and the number of credit score inquiries you make.
Your credit score can impact your ability to get loans and credit cards as well as affect your interest rates. To improve your credit score, pay bills on time and keep credit balances low.
You can view your unofficial credit score through outlets like credit companies, websites like Credit Karma, or get your official score from Annual Credit Report, or FICO.
Saving money takes discipline and sacrifice, but it provides you freedom and financial security while allowing you to take risks later on. Not only does a savings account give you a place to safely store money for the long term, but it also helps your money grow with regular interest payments. Don’t wait until graduation-start saving money now.
Banks and credit unions not only store your money, but also sell financial services,
like car or home loans. Choosing the right financial institution is an important factor
in getting the right services and features to meet your financial goals.
Banks and Credit Unions Both Offer:
However, a bank is a for profit organization, while a credit union is owned by its members. Because of this, banks usually have more services and a larger network of branches. But they may also have higher fees and lower interest rates than credit unions.
It’s important to compare the services offered by different banks and credit unions before choosing one. Additionally, you should look for:
Debt management involves living within your means to pay off debts, particularly unsecured debts, like credit cards. Among other benefits, effective debt management can improve your credit score. It’s important to understand the terms and risks associated with each type before taking it on.
Revolving Debt - This means there is not a fixed monthly payment.
Secured Loans - Secured loans are backed by collateral or assets you own, like a car or house.
Unsecured Loans - An unsecured loan is one that is not backed by collateral or assets, meaning the lender is taking a larger risk.
Credit Cards - Credit cards are a form of revolving debt. Interest rates can be high and failure to make payments can negatively impact your credit score.
Consumer Loans - Sometimes called personal loans, consumer loans are typically unsecured loans. This may lead to higher interest rates than other types of loans. Your interest rate and loan term depends on your credit history and is determined by the bank.
Payday Loans - Payday loans are small, short-term loans that come with very high interest rates and fees. They are typically a dangerous and expensive form of credit.
Automobile - Automobile loans are secured debts. Auto loans can have high monthly payments and interest rates, and purchasing a car with payments higher than you can afford can quickly become a financial burden.
Home Loans - Home loans, or mortgages, are another form of secured debt, as your house can be used as collateral for missing payments. Rates can be either fixed or variable.
College Loans - There are two types of student loans: federal and private loans. Federal loans are owned by the US Department of Education and have a fixed interest rate. Private loans are owned by financial institutions. Interest rates for private loans vary depending on your credit history.
You can manage your debt with a little patience and focus. Here are a few tips to
get you started:
Identity theft happens when someone uses your personal information to take out loans, buy things, or receive medical care in your name. This can harm your credit report and financial future. To reduce the risk of identity theft you can:
Fixing the damage can be simple or it can take months-it all depends on you. Take
these steps as soon as you can to recover quickly.
Credit cards can be a great way to pay for things you need and build your credit. But they can also be a source of financial trouble if not used correctly. It’s important to understand the pros and cons of credit cards before deciding to apply for one.
Credit Card Pros |
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Credit Card Cons |
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To ensure responsible credit card use, commit to your budget and leave the plastic at home when you don’t need it. This will help cut spending temptation. It’s also a good idea to pay off outstanding balances quickly to reduce the amount of interest you pay, and to allow for more money in your budget for other things.
You provide the space and we’ll provide the knowledge! Presentations are 15 to 30 minutes long and cover:
We just need computer access and a place to project our presentation. Please submit requests at least two weeks ahead of time. In your request, please include: your name, class or organization name, email address, phone number, presentation location, date and time preference, and estimated number of attendees.
Have the Personal Finance Basics Course implemented into your Blackboard coursework! The course is hosted by Hoounit (formerly Atomic Learning). We cover everything from the in-person presentation, and by the end of the course your students will be able to:
You’ve gone to school, and now it’s time for the not-so-fun part: paying back your student loans. It’s important to understand your rights and repayment options, even before borrowing, so you can prevent defaulting on your loans.
Need Help?
If you have questions about any aspect of paying back your student loans, don’t hesitate
to reach out. Contact Elena Oliver, Default Loan Coordinator at 281-991-2645. Elena.Oliver@sjcd.edu.
Student loans fall into two categories: Federal Family Education Loan (FFEL) and Direct Loans (William D. Ford Direct Loan Program). Loans disbursed at San Jac before Summer 2010 are FFEL. In these cases, the lender is a financial institution, such as a bank or credit union. Loans disbursed during the Summer 2010 term and after are Direct Loans. With a Direct Loan, the lender is the Federal Government.
Regardless of which loan you have, it’s important to understand your rights and responsibilities.
Not sure where to begin?
Use our budget calculator to help determine your expenses and what you can afford to make for monthly payments.
As a student loan recipient, you are required to complete an exit counseling session. Exit counseling helps you to further understand your rights and responsibilities as a student loan borrower. Exit counseling is required when you:
Complete your exit counseling session online. San Jac will be notified electronically when you have successfully completed the
course.
A hold will be placed on your San Jac student account if you do not complete an exit
counseling session. This may affect your ability to make changes to your registration
or request a transcript.
Student loan deferment is a way to temporarily stop making payments on your loans. While enrolled at San Jac, your loan may qualify for an in-school deferment. Please note that while in deferment, your loans may still accrue interest.
San Jac is partnering with the National Student Clearinghouse (NSC) to provide enrollment
and degree verification to the U.S. Department of Education (USDE). For your loans
to be placed in deferment, you must be enrolled at least six credit hours.
Enrollment information is sent electronically to the NSC two weeks after the term has started. Once the electronic file is processed, it takes 30 days for your account to be updated. The USDE will backdate your account to the start date of the term. It will also waive all past due payments and accrued interest for the term.
PLUS loans are for parents who take out loans for their children. For parents to be eligible for a deferment on your PLUS loan, your child must be enrolled at least six credit hours at San Jac.
This deferred status does not occur automatically. You must call the federal loan servicer and request to have the PLUS loan placed in a deferred status.
Private loan lenders can not obtain the enrollment information from the NSC. You must
complete a student deferment or forbearance form two weeks after the term starts. Send completed forms to:
Fax: 281-669-4374
Email: Elena.Oliver@sjcd.edu
After you graduate, leave school, or drop below six credit hours, your loans enter a grace period. This one-time grace period lasts six months. Your repayment period begins the day after your grace period ends. At that time, your first payment will be due.
Your loan servicer will notify you with information about repayment. When it comes to repaying your student loans, you can select a plan that is right for your financial situation. Generally, you have anywhere from 10 to 25 years to repay your loans.
You can calculate your estimated loan payments using the Federal Student Aid calculator or Finaid.org.
Our sample repayment plan gives you an example of how common repayment options may look.
Standard Repayment
With the standard plan, you will pay a fixed amount each month until your loans are
paid in full. Your monthly payments will be at least $50 and you will have up to 10
years to repay your loans.
Graduated Repayment
With this plan, your payments start out low and increase every two years. The length
of your repayment period will be up to 10 years.
Extended Repayment
Under the extended plan, you will pay a fixed annual or graduated repayment amount
over a period of up to 25 years.you must have more than $30,000 in FFEL or Direct
Loan debt to qualify. Your fixed monthly payment is lower than it would be under the
standard plan. However, you will ultimately pay more for your loan because of the
interest that accumulates during the longer repayment period.
Income Based Repayment (IBR)
Under IBR, the required monthly payment is capped at an amount that you can afford,
based on your income and family size. You must submit annual income documentation
to set your payment amount each year. Under this plan, loans can be forgiven for certain
situations.
Income Contingent Repayment (ICR)
ICR plans are available for Direct Loans only.
Under this plan, your payment is calculated annually based on:
Income-Sensitive Repayment Plan
Income-sensitive plans are available for FFEL loans only.
With this plan, your monthly payment is based on your annual income. As your income
increases or decreases, so do your payments. The maximum repayment period is 10 years.
Pay as you Earn Repayment Plan (PAYE)
Under the PAYE plan, your payments are usually 10 percent of your discretionary income. Payments are never more than the 10-year Standard Repayment Plan amount. Payments
are calculated annually based on income and family size.
Revised Pay as you Earn Repayment Plan (REPAYE)
Under REPAYE, your payments are generally 10 percent of your discretionary income.
Your payment can be more than the 10-year Standard Repayment Plan amount. Payments
are calculated annually based on income and family size.
Consolidation
Under this program, you could combine all of your student loans under one lender and
into one monthly payment. A consolidated loan can reduce monthly payments. However,
the interest rate could increase and your repayment period may be extended.
If you are having trouble making payments, contact your student loan servicer right away. Your loan servicer will work with you to determine the best option for you. And don’t forget, we’re always here for extra help if you need it! Your options include:
If you stop making payments on your student loans, your account will become delinquent.
A delinquent loan can result in late fees and affect your credit score. It will also
result in a hold on your San Jac student account.
A student loan will go into default when you fail to make payments and your account is 270 days past due (delinquent). Once the loan is considered in default, the entire balance is due immediately. This includes the principal, interest, and collection fees.
If you default, your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government can all take action to recover the money you owe. Some consequences of default include:
You have three options to remove the default status:
More information for defaulted student loan debt can be found at MyEdDebt.ed.gov.
Here are some simple tips to help you manage your money wisely and be a responsible student borrower!
Get more information on budgeting by visiting the Federal Student Aid website.
The U.S. Department of Education releases official cohort default rates (CDR) to all schools. Loan default rates are calculated by measuring how many students are in default three years after they have graduated or stopped attending San Jac. The default rate only applies to federal loans, and does not include private and/or state student loans.
In 2018, a total of 1,223 San Jac students entered loan repayment. After three years, 10.1 percent, or 124 of those students, defaulted on their loans. Our National CDR for that year was 7.3. Our national CDRs for 2016 and 2017 were 10.1 and 9.7, respectively.
Why is this important? Knowing our CDR can help you analyze how well San Jac positions its students to pay off their loans after graduation. To put it in perspective, schools can get benefits if their national CDRs stay below 15. They can also receive sanctions or be prevented from participating in federal aid programs if their CDRs are 30 or above. So that tells us that our students are well-positioned to make payments on their loans.
You are required to pay taxes and complete a tax return each year if you make over a certain amount of money. For example, in 2022, a single student without children had to file taxes if their gross income was at least $12,000. Each year, these income thresholds change. Find out current filing requirements on the IRS website.
If you paid any interest on your student loans during 2022, you can deduct up to $2,500
on your federal tax return. If you are single, your adjusted gross income on your
tax return must be less than $85,000. You will need the 1098-E form from your student
loan lender. Please check the IRS website for more current information.
Generally, scholarships and grants are not included on the federal tax return. But,
if you have funds left over after paying tuition, fees, books, and supplies…then the
remaining amount must be included on your tax return.
If you have a job on campus, then those funds must be included on your tax return. You will receive a W-2 from your college/university.
Yes, if you are pursuing a degree, you may qualify for an education credit. There
are two types of tax credits that exist. These can be used by you on your own return
or by the person who claims you as a dependent on their tax return. The person claiming
the credit will need to complete tax form 8863 to determine eligibility.
You can seek help from a tax professional or use an online program that will walk
you through the filing process.
Here is a list of free Tax filing software for Students:
Volunteers Income Tax Assistance (VITA) offers free tax guidance to anyone who lives
with a disability, speaks limited English, or earns less than $58,000 a year.
Baker Ripley (formerly Neighborhood Centers) provides tax and financial services at
11 convenient locations throughout the Greater Houston area. Services are available
to anyone who earns less than $58,000.
Tax resource by MoneyGeek provides additional information regarding tax credits and deductions for education, undocumented student tax forms (W-7), international student tax forms (1042-S and 8843), and tricky tax issues for military students.
Use these resources to find out more about your student loans.
San Jac Default Prevention Coordinator:
Elena Oliver
Phone: 281-991-2645
Fax: 281-669-4374
Email: Elena.Oliver@sjcd.edu
Great Lakes Educational Loan Services: 1-800-236-4300
Navient: 1-888-272-5543
Nelnet Education Planning and Financing: 1-888-486-4722
Trellis (Formerly Texas Guaranteed or TG)
National Student Loan Data System (NSLDS) for Students
Student Loan Ombudsman’s Office
MyEDDebt.gov Federal student aid’s website with information about defaulted loans.
Please note that FedLoan Servicing is no longer active.