Healthy communication is important to any relationship, but the topic of money can be a major stressor for all couples, no matter how long they’ve been together.

You may be putting off financial conversations to avoid more stress or increased arguments, but the problem could get worse if you avoid talking to your partner about money.

However, taking a few minutes a month for face-to-face time to discuss financial stressors, and goals and creating a plan of action can help you build or rebuild a solid financial foundation.

Follow the tips below to keep the lines of communication open and productive.

Create Goals Together

One of the best ways to create a platform for great money discussions is to work together to create shared goals. That way, when you talk about why you want to do certain things with your shared money, you have established what exactly it is you are working toward.

Understand and Appreciate Different Money Styles

Many people in relationships find that they grew up in a household or have past experiences that give them a different perspective than their partner. If your significant other has unique attitudes or practices surrounding money, work to show that you understand and value those ideas instead of trying to criticize or change them.

Be Organized

To get the most out of your financial talks, it helps to not only have easy access to your important financial papers or data but also to make a list of the topics you want to discuss. This will keep the meeting focused and carve out a more efficient path to finding solutions.

Don’t Bring in Outside Issues

Do your best to not bring non-financial qualms to the table when you have your money talks. They only make it harder to achieve successful outcomes with your money.

Keep a Positive Partnership Perspective

Instead of demanding, “You need to do this” or “You need to stop that”, keep the focus on each doing your part to reach the goals you have set for yourselves. No one likes to be henpecked for their mistakes or shortcomings. If you are too negative, you risk creating a toxic environment around money discussions.

Schedule a Regular Check-in

Irregular or unfocused talks can do more harm than good since they can give the impression that everything is in tip-top shape. Set a time at least once a month – with the TV off and other distractions eliminated – to have a full conversation about any pressing financial matters.

Sum Up

Once you are finished with your money talk, summarize what was decided and what the next steps are. This will help to make sure there aren’t any misunderstandings or that a ball doesn’t get dropped.

Get Help

You may find that it helps to have a neutral third party go over your finances with you. A counselor trained in reviewing budgets and other financial information can help you sort through a lot of the matters for which you and your significant other aren’t finding common ground.

You’ve probably been told that marriages/relationships take work. The same is true with your money matters. But by being committed to communicating in a meaningful and effective way, you can save yourself a lot of heartache down the road. Looking for more helpful financial education resources? AFFCU has partnered with BALANCE to offer personal finance education programs at no-cost.

Because of their omnipresence in our society, you’ve probably read about financial scams over the years. It’s important to keep in mind that criminals put a lot of effort into developing fresh ways to defraud victims. New devious tricks pop up all the time, and staying safe requires continuously educating yourself about the latest tactics fraudsters employ to cheat people.

In this first of a two-part series, you’ll learn about scams increasing in frequency and get tips for stonewalling the perpetrators

THE SCAM: Refugee plea

With humanitarian crises ongoing around the globe, heart-wrenching images fill the news and social media. Unfortunately, criminals see these images too. Their response is to craft appeals to help refugees fleeing war, famine, climate catastrophes, etc. The fraudster may pose as either an individual or a charity. Common themes in their messaging are a brutally sad backstory and an URGENT need for money.

THE PLAN: Slow down and research

Helping those legitimately in need is a beautiful thing, and there are plenty of opportunities to do so. If a particular cause tugs at your heartstrings, take time to do research online about nonprofits and NGOs working in that area. Charity Navigator and GuideStar are great sites for determining which philanthropic organizations are worthy of your hard-earned money.

THE SCAM: Fake job, real costs

The idea of working for a startup company is seductive; it’s exciting to think about laboring for a new venture that might provide wealth beyond your wildest dreams. However, because new companies are harder to find information on, fraudsters often list fake, well-paid positions online with their “startup.” Then they’ll ask applicants to send money for training courses, work-from-home equipment, or other bogus expenses.

THE PLAN: Ask why

There can be costs associated with starting a new job, but none of them should be billed to you by the prospective employer. Ask the person handling the hiring how to pay any necessary expenses directly instead of using their company as a go-between. If they refuse, let them know you’re not interested in the position.

THE SCAM: Verification code hijacking

If you’ve ever forgotten your password for a website, you’ve probably used a verification code or one-time password to get back into your account. In this particular scam, the criminal knows your email and is trying to use it to log in to a site to change your password and seize control of your account. They contact you via phone or email, letting you know that you will soon receive a verification code and that you need to share it with them to confirm your account. Of course, they’re really using that verification code to intrude into your login and potentially lock you out.

THE PLAN: Stop, drop, and call

You may have been taught to stop, drop and roll as a part of childhood fire safety. For scam safety, it’s important to remember to stop, drop and call. If you find yourself in a situation where an unverified entity is asking you to share personal information, stop yourself from handing out any sensitive details immediately. Next, drop the communication, be it via phone or the internet. Lastly, call the financial institution or company the person claims to be representing—at a number you know to be legitimate—to ask if the query is necessary.

THE SCAM: Fine print chicanery

This example is one of the most nefarious types of dishonest dealing because it involves transactions that are technically legal. Take, for example, the case of a resort vacation package offered on social media (this should already be a red flag). The price seems like a total steal, and the pictures of the luxurious destination seal the deal. You gladly pay the low fee and begin planning your dream getaway. What you didn’t realize is that almost all the costs are buried in the tiny legal-looking language you didn’t bother to read because who does? A variation is the “free trial,” which has many hidden costs and is almost impossible to cancel.

THE PLAN: Consider the source

As a rule, avoid shopping for travel on social media as much as possible. While honest companies offer deals there, it’s also—to borrow a line from Star Wars—a “wretched hive of scum and villainy.”

THE SCAM: Cryptocurrency crimes

Where there are investments with the potential for large returns, scammers will surely follow. Cryptocurrency certainly proves that, with the Federal Trade Commission revealing that at least $80 million of fake crypto was sold in 2021. Digital currencies are a relatively new offering, so there aren’t a lot of established guidelines for safe investing. Some investment “opportunities” have proven to be nothing more than modern Ponzi schemes.

THE PLAN: Do your homework

As with any type of investment, it’s crucial to take the time to understand what you’re getting into. One of the great myths of investing—perpetuated by crypto hucksters—is that “fortune favors the bold.” The reality of successful investing is that fortune favors those who take the time to research the marketplace fully they’re considering entering.

While the particulars of scams are constantly evolving, the basics of informational and financial security remain the same. By slowing the process down and ensuring you’re communicating with the people and companies you’re supposed to, you can keep your data secure and your money where it’s supposed to be. Find more tips for protecting yourself, here.

If you’re like most people, you’re probably starting the new year with at least one New Year’s resolution you’re hoping to achieve to help improve an aspect of your life.

Some of the most common new year’s resolutions are health-related like committing to dieting and exercising, while others may focus on personal goals such as more traveling, learning a new skill, and career growth. A category of resolutions everyone can benefit from focusing on are related to personal finances.

We’ve compiled a list of financial resolutions that are easy to keep and can help you develop healthy habits for the New Year and beyond.

Check Your Credit Score Regularly

If you’re not planning on making a large purchase in the future, your credit score may seem like an unimportant number, but it actually has a BIG impact on more than your finances. Your credit score and credit history provide financial institutions and other companies with a snapshot of how “creditworthy” you are.

Reviewing your credit report regularly is a great way to see an overview of your financial health for errors or habits that are hurting your overall score and determine areas of improvement. You can get a free copy of your annual credit report at annualcreditreport.com. Your financial institution may also provide free access to your credit score for free within their online banking platforms.

AFFCU is making it easier to stay on top of your credit. Credit Score by SavvyMoney is available for free to AFFCU members in Digital Banking. This helpful tool helps you understand your credit, the factors that impact it, and what you can do to strengthen it. Credit Score by SavvyMoney provides you with a comprehensive credit score analysis, full credit report, and monitoring.

Monitor Your Accounts Daily

Viewing your financial accounts every day is a simple and effective financial habitat. Modern day allows us to have access to our accounts right at our fingertips with mobile and online banking.

Logging in daily helps provide you with a helpful overview of your cash flow and is one of the quickest and most effective ways to help fight fraud and give you an idea of your daily spending habits.

Make Saving a Priority

Regardless of how much you earn or what stage of life you’re in, it’s important to make saving a priority.

Start contributing to an emergency fund each paycheck, so you’re prepared for any type of financial emergency life throws your way. Not sure how to start saving for emergencies? Check out our blog to learn the basics and how to get started.

Already contributing to an emergency savings account? Consider increasing your contribution or even finding a better savings account to increase your earning power.

While standard savings accounts are good because they allow you to earn interest on the funds you store in the account, these accounts tend to offer lower savings rates.

Certificate Accounts and High Yield Savings Accounts offer higher interest rates, allowing you to earn superior savings without doing any hard work.

For example, an AFFCU High Yield Savings Account is a safe place to park your money and allow it to earn interest while still having access to your money in case of an emergency. You won’t have to deal with withdrawal fees or deposit limits either.

Pay Down Your Debt

From student loans, credit cards, auto loans, and mortgages, we all have some type of debt. Having debt isn’t necessarily a bad thing as long as you’re managing it well. Being proactive with your finances will keep things from spinning out of control. Take a look at your debt balances, fees, and rates associated with each account and create an action plan to determine which debt account you’d benefit from focusing on.

You may need to adjust your budget a bit, like canceling a subscription service and using the money from that expertise to make a larger payment to your student loans. After you’ve paid off that balance, tackle the one with the next highest interest rate, then the next, until you’ve taken care of all of the debts on your plate.

Improve Your Money Management Skills

Your money impacts your whole life, so take time to learn as much about financial literacy as possible.

AFFCU offers two no-cost financial education resources designed to provide you with financial programs and a wide variety of comprehensive resources for all aspects of personal finance that fit every type of learning style.

Zogo is a gamified mobile app that rewards users for learning the basics of personal finance. Balance offers articles, webinars, and podcasts on a variety of financial topics. Plus, their budget and spending tools can help you take control of your money.

Once you have a bit more financial knowledge, you’ll be on your way to a brighter financial future!

No matter what type of resolution you’re deciding to focus on this year, it can be difficult to stick to your goal.

Avoid making strict resolutions that are hard to follow, overly ambitious, and too vague or too specific. Try to adjust your habits to create manageable goals.

Keep in mind, that one small mistake shouldn’t make you throw in the towel. Don’t let a minor misstep derail your progress. Each new day can serve as another fresh start.

Eventually, the days will add up and before you know it, you’ll be celebrating a new year and your financial accomplishment.

With all of the hustle and bustle of the holidays, sometimes we forget that there are others less fortunate than ourselves.

Join us in making a difference this holiday season! Now through Friday, Dec. 9^th we’ll be collecting items for local nonprofits.

We invite our members and staff to participate by bringing any of the requested items listed below to the nearest AFFCU Financial Centers. We’ll have large wrapped collection boxes placed in our lobbies to collect the donations. Please consider helping those in need in our community.

San Antonio Organizations

Fisher House

Fisher House provides services for a home away from home for military families in medical need.

Requested Items

• HEB / Walmart Gift Cards
• Toilet Paper
• Hand Sanitizer
• Hand Soap

ChildSafe

ChildSafe helps children traumatized by abuse and neglect

Requested Items

• Stuffed Animals
• Diapers, sizes 2-6
• Baby Wipes
• Boys & Girls Underwear

Daily Bread

Daily Bread provides meals to homeless people.

Requested Items

• Peanut Butter
• Jelly
• Boxed Mac & Cheese

Del Rio Organization

Catholic Charities

Boys & Girls Clubs provides engaging after-school programs kids. 

Requested Items

• Childrens Toys
• Childrens Clothing
• Diapers
• Wipes
• Blankets

Columbus Organization

Boys & Girls Clubs

Boys & Girls Clubs provides engaging after-school programs kids. 

Requested Items

• Walmart Gift Cards
• Childrens Toys
• Childrens Clothing

The holidays are meant to be a joyful time of year. However, it can also be a prime time for scammers looking to take advantage of you. Fraudsters exploit your busy schedule, generosity, shopping habits and make you their next victim.

Even the smallest amount of caution can go a long way to keep your personal information and hard-earned money safe.

Here are some common scams you could encounter during this time of year.

Phishing emails and text

With online shopping becoming the new normal, many of us will receive updates on our orders and deliveries via email or text message. Scammers know most of your inbox is full of these messages and will send phishing emails or texts with fake information to try and trick you.

Avoid these scams by looking closely at a notification for misspellings or incorrect business information in the communication. If you’re concerned about the validity of the message, directly reach out to the business to confirm if the message is valid.

Package theft

Around this time of year, we expect to see an increase in delivery trucks everywhere, making sure the goods ordered make it to their intended recipients. Having items sent directly to your home is convenient, especially with helpful tracking notification updates and home security cameras; however, porch pirates are on the lookout to take your order from your doorstep.

You may want to consider a few different delivery options to protect your orders. Many stores will offer free in-store pickup. This option will not only keep your item safe, but it can save you money on shipping and handling too. If you made a high-end purchase, you may want to arrange for a delivery that requires your signature upon receipt.

Some other helpful delivery options are Amazon Lockers. These lockers offer a secure location where your package can be delivered instead of your home. Best of all, there is no fee for using this service.

Bogus sites

Any savvy shopper knows that it’s best to shop around to find the best offer. On your quest to get the best deal on your family’s wish list, you may stumble upon a fake website created by a criminal. Don’t believe any ads or websites that are offering deals are too good to be true.

Copycat retail websites are set up to seem real, but once you place an order, you’ll never receive the item that you ordered. Even worse, your accounts could be wiped and your information compromised.

Only shop on reputable sites by checking the website address/URL before placing an order. Look for an “s” after the “http” in the web address to verify a site’s security.

Fraudulent Charities

Shopping isn’t the only way you could encounter a fraudster. Scam artists also take advantage of your goodwill during the holidays.

Criminals will prey on this active time for charitable giving by impersonating nonprofits and charities. Donation solicitations may come from social media posts, emails, or postcards leading you to a fake website that will capture your personal information and take your money.

Before donating, verify the authenticity of any charity you’d like to make a contribution to by checking it out on a website like CharityNavigator.org or GuideStar.org

Remember that legitimate nonprofit organizations will not ask for gift cards as donation payments or request that the donation be made via money transfers.

Other Ways to Stay Safe Online

• Pay with a credit card while shopping
• Don’t open email attachments that you aren’t expecting
• Check your account for suspicious activity regularly
• Don’t open, reply to, or forward suspicious emails
• Never give out personal or financial information
• Set up account alerts and digital wallets for secure shopping

Separating you from your money is at the top of a scammer’s wish list. Follow our advice to safely enjoy the season. Find more tips for protecting yourself, here.

Black Friday and Cyber Monday are a great time to get your holiday shopping started. Many of us wait in anticipation all year to take advantage of the significant discounts and deals retailers offer during this weekend.

Before you start swiping your card, here are a few shopping tips to help you find the best offers, safeguard your personal information, and keep you from overspending.

Create and Stick to a Budget

Review your finances and accounts to determine how much you can afford to spend and stick to that amount. Talk to your family and friends about setting a spring limit on gifts to keep costs low.

Make a List

Write down a list of individuals you’re shopping for, next to each person’s name you can include the item or gift you’re hoping to purchase for them. This way you can make a game plan of what stores and departments you need to focus on.

Sign Up for Alerts

Scope out the stores you’re most interested in shopping at and sign up for their email communications. This will save you time and money by being able to see their Black Friday ads and exclusive offers early. These offers may even be able to be combined with other promotions or loyalty programs.

Compare Offers

Now that you’re signed up to receive communications from particular shops and brands, you’ll be able to compare prices at various locations without having to drive all over town.

Consider Different Payment Methods

Using cash for in-person shopping is a great way to stick to your budget. However, using a credit card for holiday purchases also has its perks. Some of these include the ease of reporting fraudulent charges, and receiving exclusive offers the credit card company may have during the holiday season.

This can also be the best time to use any cashback rewards. If you’ve accumulated rewards points from your credit card or cash back on purchases made with your debit card, you may want to redeem those rewards for holiday purchases. Check with your financial institution to see how their redemption process works. Some common redemption options include gift cards, statement credit, merchandise and travel expenses.

AFFCU offers members the opportunity to earn while they spend. The Rewards Checking Account allows you to earn 12 cents Cashback^* on all qualifying purchases made with your Visa^® Debit Card. Visa Platinum Credit cardholders enjoy the CURewards Program  where you have the ability to earn 1 reward point for every $1 spent.

Keep Your Receipts

Store your receipts in a secure place or have a copy emailed or texted to you. This will make it easier to keep track of what you’ve spent, return an item and even dispute an incorrect charge.

Protect Your Information

Set up alerts for your credit and debit cards to keep your funds safe. You can easily lock or report the cards lost or stolen. Consider adding your cards to the digital wallet on your smartphone. You can make secure purchases online and in-store with this amazing feature, so your card’s information is never compromised. If you’re shopping online, don’t use public WiFi and verify the site you’re on is legitimate to avoid a potential scam.

AFFCU members can easily set up card controls and travel notices within Digital Banking to keep their money safe. You can also digitize your wallet to streamline the checkout process with Digital Wallet to enjoy a safer and faster checkout process.

Black Friday shopping features unbeatable deals but can be overwhelming. We hope these tips can make your experience easier, safer, and cheaper. Don’t forget to stay hydrated, take breaks between stores to relax or eat a snack, and don’t leave personal belongings in your vehicle.

Headlines and talks of a possible recession mixed with rising prices of everyday goods have many people rightfully worried. While many other factors determine whether or not an economic slump is on the horizon, it’s normal to feel uncertain about your financial future.

For now, it’s not a bad idea to check in with your current financial habits so you’re not caught off guard if you need to navigate an unfamiliar economic landscape.

Here are some smart financial actions you can take now to better prepare your finances for an uncertain tomorrow.

Build an Emergency Fund

Starting an emergency fund to cover unexpected financial situations can seem intimidating at first but may be simpler than you think. It’s recommended that individuals save enough to cover six to 12 months of living expenses in the event of a job loss or medical emergency. Your emergency nest egg should be kept in an account that is easily accessible and offers a high-interest rate so the more money in your account, the more interest you’ll earn.

To start contributing to an emergency savings account, look at your finances and determine how much you can realistically contribute to your emergency fund. Set up automatic transfers or have your paycheck direct deposit that amount of money into your emergency savings account. Don’t stress yourself out trying to save thousands of dollars. Try to break your goal into manageable amounts.

If you’re already contributing to an emergency fund, you could benefit from increasing the amount you’re adding to it.

You should also consider other savings tools to help your money work for you. Credit unions and banks offer Certificate accounts or CDs that can lock your money away for a determined period of time and allow it to earn interest at a higher rate than a savings account. This way your money is earning dividends on its own and you’re not tempted to dip into the growing funds. AFFCU’s Certificate Accounts insured by the NCUA, require no maintenance fees and can be opened with as little as $1,000.

Reduce Debt

High-interest debt is tough to manage, especially during a recession. It’s important to take steps now to reduce the amount of credit card debt and other high-interest debt you carry.

Avoid making late payments, delaying/skipping loan payments, or maxing out available credit balances. This will help you avoid spending your money on fees. If you’re able to, try paying more towards your debt each month than your minimum monthly payment to pay off your debt faster and lessen how much you pay in interest.

Consider consolidating your debt to one account with a lower interest rate to help you pay down your debt with manageable payment amounts to improve your financial situation. Refinancing mortgages and auto loans are another great way to get a lower interest rate and monthly payment to make your debt payments manageable.

Make a Budget

Creating a budget can help you determine what you’re spending your money on each month, identify areas of improvement and visualize funds that can be set aside to prepare for the future and pay off debt.

Start by tallying up your household income. Next outline your expenses, such as housing, utilities, transportation, loan payments, and groceries. From here you’ll want to subtract the amount of money leaving your accounts each month from the money brought in. Now you can see how much money you’re left with each month.

Then you should break down your expenses into “needs” and “wants” categories to find areas you’re currently spending money on that could be trimmed. You’ll want to specifically focus on the “wants” category for this part, such as entertainment and personal care.

Take a look at your needs category too, you may see a trend in high grocery, utility and gas bills that could be trimmed by changing your actions each day. Like couponing, turning off electronics when the home is empty, or finding ways to reduce running water.

Your budget will allow you to have an overview of your finances that will keep you from overspending. Before you spend any money, assess your budget to make sure you can afford a purchase.

If you already created a budget, you’ll benefit from regular reviews and making adjustments. Each month is different and you may not be accounting for extra income like a holiday bonus or expenses from the holidays.

Examine Your Investments

An economic downturn can make you concerned about your investment portfolio. It’s important to talk to a trusted financial advisor before making an immediate decision about your investments under pressure. Your financial advisor can help you diversify your portfolio to minimize the risk of loss and can recommend some “recession-proof” companies that it may be beneficial to invest in. The Investment Center at AFFCU can help you create or build a comprehensive wealth management plan that fits your needs.

Nobody can accurately predict what economic events will unfold in the future. No matter the circumstances, taking proactive steps to prepare and protect yourself is an easy way to set yourself up for financial success no matter what the future holds.

A checking account allows you to conveniently manage your funds, but with so many financial institutions and account options to choose from, it can be hard to find an account that best fits your needs.

We’ve put together some key features to look for when deciding what checking account is right for you.

Insurance

It’s important to verify that the credit union or bank where you plan on opening your account is federally insured. A credit union should be insured by the National Credit Union Administration (NCUA) and banks should be insured by the Federal Deposit Insurance Corporation (FDIC).

The NCUA and FDIC are independent government agencies that insure deposit accounts at eligible financial institutions. Both agencies provide a standard insurance amount of $250,000 per depositor, per credit union, or bank that would be reimbursed to you if that financial institution fails.

It’s rare to find a credit union or bank that is not federally insured, but it’s still good to check instead of risking your money. Financial institutions will clearly state that they’re insured on their websites, promotional and account materials, and at their physical locations.

Account Requirements

Institutions may have a minimum balance and or deposit requirements for their checking accounts. These requirements are in place to help members maintain a specific amount in their checking account to avoid overdrafting and the fees that are associated with overspending. Setting up direct deposit to your checking account will keep your checking account active and avoid the hassle of transferring money into the account or depositing checks.

Each bank and credit union sets its minimum balance and deposit requirement amounts, so it’s important to understand the requirements of the financial institution you’re considering. Your research may even help find ways to have these requirements waived or find other checking accounts that don’t have as many account requirements.

Fees

Like most financial products, credit unions and banks will charge fees to account holders. Some common fees include monthly service/maintenance, overdraft fees, ATM fees, statement fees or other miscellaneous fees. Many of these fees can be avoided by managing your account responsibly to avoid overdrafting or by opting to receive your statements digitally.

We also suggest searching for a checking account with minimal or no fees. You can also check to see if there are ways to avoid paying the fees by opting into estatements or maintaining a sufficient balance.

Interest

An average checking account isn’t the best financial product to hold large amounts of money for long-term financial goals. A checking account balance will typically fluctuate since the funds in the account aren’t being stored for a long time, most financial institutions will offer lower interest rates on their checking accounts.

However, some credit unions and banks may still offer above-average interest rates with high-yield checking accounts. Oftentimes, high-yield checking accounts have minimum balance requirements that may not fit everyone’s financial needs, but this type of checking account is a great opportunity to earn more for those who can maintain the required balance.

Digital Services

We live in a digital age and it’s important to be able to manage your finances online. Prior to deciding on a credit union or bank for your new checking account, you should also read the reviews on the financial institution’s mobile app and online banking. This way you’ll be able to see how current members feel about the service.

You’ll also want to verify if the credit union or bank you’re researching offers helpful services like digital payment services, mobile deposits, and peer-to-peer payments.

Rewards

Since all banks offer checking accounts, they will also offer other perks to entice potential account holders. Earning cash back or reward points for purchases made using your debit card, or earning interest on the funds in your account are some of the benefits that may interest you.

Protection

You never expect to have your account compromised, but it is something that happens more often than not. Review the financial institution’s security features it offers to help protect against fraud, such as contactless payments or EMV chip technology and virtual card controls to safeguard your debit card.

ATM Access

Being able to access your checking account for some quick cash is a big requirement for many people. Look into the ATM network offered by the bank or credit union to see if they offer a large range of ATMs location options to avoid paying out fees for your money. Some financial institutions may even provide ATM fee reimbursement.

No matter which accounts you choose, be sure to make a decision that best fits your overall financial needs.

At AFFCU, our checking accounts feature Early Direct Deposit, Free eStatements, Online Bill Pay Access, 24/7 access to Digital Banking, plus additional benefits like Cashback Rewards with our Rewards Checking account.

We encourage you to take a look at the checking accounts we offer.

As college tuition costs continue to rise, parents and students are left struggling to find ways to pay.

That’s why, along with scholarships, the Free Application for Federal Aid (FAFSA) is an option many incoming and current college students can depend on to help pay for college.

FAFSA 101

FAFSA is an application that determines a student’s eligibility for all federal financial aid, including loans and work-study programs, as well as grants and scholarships (which you don’t have to pay back!). The application is free and opens on October 1 each year for college students to apply for financial aid for the next school year.

Students planning to enroll in college should complete their FAFSA application each year they will be attending a college or a university. There is no age limit on who can apply for and receive federal aid, so even adults attending college can complete an application.

Some common misconceptions about FAFSA that keep students from applying are that good grades are required or that their family makes too much money.

FAFSA awards financial aid based on a student’s financial needs and circumstances, not by GPAs. Families with high income may qualify for some federal aid, especially if they have several family members in college.

Even if you don’t get a large portion of grant money to attend college, you can still apply for federal student loans as part of federal aid.

So if you’re headed to college next year and want to minimize your debt, fill out the FAFSA ASAP. Not sure how to start? Here are five things you’ll need before you start your application:

FSA ID

The easiest and fastest way to fill out the FAFSA is online at fafsa.gov. To get started, you’ll need your FSA ID, which is your username and password. Note: parents of dependent students will need to create their own FSA ID to sign their child’s FAFSA form online.

Names of Schools You Want to Attend

Don’t worry, you don’t need to be 100 percent sure about your college options. Enter up to 10 schools that you’re considering. If you change your mind later, you can easily remove the school from the list. Didn’t get accepted? The school can just disregard your FAFSA application.

Personal and Financial Information

You knew this was coming… To complete the FAFSA, you have to spend some time entering data. Personal information includes items like your social security and driver’s license numbers. However, dependent students also have to enter their parents’ tax return info from last year.

Dependency Status

If you’re in high school and live at home, you’re most likely considered a dependent. That means you need to report information about your parents. But here’s where it gets more complicated. Even if you live on your own and support yourself, you still may be considered a dependent for the purposes of the FAFSA. Make sure you review the application guidelines and determine what category best describes you.

A Secure Connection

It probably goes without saying, but if you’re filing your FAFSA online, make sure you do it over a secure Internet connection. In other words, don’t use public WiFi. Libraries, coffee shops, outdoor spaces—open connections are much more vulnerable to hackers. If your personal information is stolen, it could lead to identity theft and put you and your parents in financial jeopardy.

Once you’ve applied, you’ll get your Student Aid Report and subsequently award letters from each of the colleges for which you’ve been accepted (these contain how much financial aid you’re eligible to receive). If you find that you still need more, we’re here to help!

If You Need More Assistance

AFFCU is proud to offer thousands of dollars in scholarships each year to graduating high school seniors. Learn more about our scholarships here.

We’ve also partnered with Sallie Mae^® to provide student loans with competitive rates. Find out more by visiting the student loans section of our website.

Your child has chosen their major, taken entrance exams, and narrowed the list of colleges they plan on applying to. Before they can start shopping for dorm room essentials and selecting classes at orientation there is still a large obstacle on your teenagers’ way to higher education.

Do you know how you and your children are going to finance their college education?

It is no secret that college tuition, even at in-state public universities, continues to rise at a rate far outpacing inflation. Paying for college, then, has become an ever more challenging task.

Fortunately, students and their families can ease the pain of paying for college by applying for a wide range of student loans. Like all loans, student loans will have to be paid back. However, these loans come with favorable terms, most notably low interest rates. Typically, students do not have to start paying back their student loans until several months after they’ve graduated.

Many times, those students who have not found a solid job after graduation or are otherwise financially struggling can often put off repaying these loans.

Before your sons or daughters head off to college, make sure that you understand the basics of student loans. The odds are high, after all that your children will need to take on at least some student-loan debt to make it through college.

Types of Student Loans

There are two main types of student loans: federal and private.

Federal student loans — including the common Stafford loan — are a better option. That is because they tend to come with lower interest rates. Students do not have to repay these loans until after they graduate. In fact, federal student loans account for nearly 70 percent of all the student aid received by graduate and undergraduate students.

Federal Student Loans

Federal student loans are handed out on a needs basis. In other words, students are more likely to receive federal student loans if they can demonstrate that they need financial assistance to afford the costs of college tuition and fees. The main challenge with federal student loans is that they are limited. There is only so much assistance that students will get in the form of these loans. Again, this limit is based on students’ financial needs.

A popular type of federal student loan, the Stafford loan, comes in two main types, subsidized and unsubsidized. With subsidized Stafford loans, the federal government pays the interest for students who attend classes at least on a half-time basis. This loan is given out on a needs basis.

With non-subsidized Stafford loans, students have to repay the interest. This loan is not given out according to financial need.

Private loans are as the name suggests, provided by private institutions such as banks. These loans are not as attractive as federal ones because they tend to come with higher interest rates. Some private loans also require that students begin repaying them before they graduate, something that can prove challenging.

There are some benefits to private student loans, however. For one thing, they can fill in the gaps left by federal student loans. They also often come with higher lending limits, meaning that students and their parents can borrow a larger amount of money to cover the costs of their college years.

Parent Loans

Parents can also take out federal student loans to help cover the costs of their children’s college education. One popular vehicle for parents is the Federal Direct Parent PLUS Loan.

With these loans, parents can cover up to the total cost of their dependent children’s college education minus whatever additional financial aid they or their children have already received. As an example, if the annual cost of attendance is $25,000, and the student receives $5,000 in student financial aid, the Parent PLUS Loan program can provide parents up to $20,000 in loans.

Parents, of course, can also take out private student loans to cover their children’s education costs. Again, these loans might come with higher lending limits, but they also usually come with higher interest rates, too.

Paying it Back

Students often think little about the debt that they are acquiring during their college years. However, parents should remind their children that this debt requires repayment and that doing so could be a financial burden.

That is why it is important for students to do whatever they can to rack up as little student loan debt as possible. If this means seeking out obscure scholarships, attending community college for two years or choosing an in-state school versus a private institution, then strong consideration should be given to those options.

The best plan? Students and their parents need to research financial aid opportunities carefully. That is the best way to minimize student-loan debt.

Whether you’re an undergraduate or graduate student, AFFCU in partnership with Sallie Mae^® can help you get the money you need to pursue higher education. See if our student loan options are right for you.