Online Banking

2007-06-04T11:21:00.000-05:00

Save the planet and bank online! No, seriously. Think about it: when you bank online you're eliminating the need for paper statements, check writing, mini statements, ATM balance inquiries... and therefor you are eliminating the need for excess energy, like the gas to get to the bank, the energy used to chop the trees, to get it to the paper plant, sending it to the printers, mailing it to you...

There are other reasons to bank online too: it makes it easier to track your cash. You can find out what part of your balance is available vs. unavailable. You can see which of your checks have cleared and which have not and you can see how far into your credit line you are. You can also pay your bills without the price of postage, checks and waiting around for your check to clear. And transfers are a breeze- so if you're diligent about your banking you will avoid countless fees.

Ok, ok, so online banking's great, but Karl and Sally are still concerned about security. Is online banking safe? Oh hell yes. Do you really think that banks can afford to be insecure in their online practices? Putting their money into extra security will save banks millions of dollars in expenses from liabilities in the long run. The banking commissions are already on the side of consumers as far as fraud, identity theft and recovery goes- forcing banks to foot the bill for the research, the lawyers and ultimately the cost of the fraud- so they won't risk any further money by skimping now. In fact, online banking through your own banking network, especially in the case of bill payments is more secure than giving the company you are paying your account information. Once you have done that, you may inadvertently have authorized them to take out more payments than you originally thought you were authorizing or make it very difficult to cancel future services from that company.

Any other questions?

Students- DON'T GET SCREWED!!

2007-05-15T13:16:00.000-05:00

Thank GOD for the New York Attorney General, Andrew Cuomo. His investigation into College and University Financial Aid departments in cahoots with student loan providers has finally prompted more insight into the college payment process and the need to revamp educational financial aid as a whole. Allegedly, many college financial aid departments were steering students toward "preferred lenders," not educating them on other options, andreceiving "kickbacks" such as cash, gifts, revenue-sharing, and appointments to lending advisory boards. Unsuspecting students, as a result, have been continually duped into taking loans that were not necessarily in their bestinterest. If you want more information on the student lending scandal, visit the New York Attorney General website: www.oag.state.ny.us

Interestingly enough, the Washington Post has discovered that during the Clinton administration this was already a major concern. They proposed "cracking down" on these kickbacks from lenders to colleges and financial aid officers as it could foster unethical collaborations. Turns out they were right. But what happened? Who knows? In fact, since then student lending interest caps were raised and no longer locked in at a low rate for federal consolidation.

Anyway, it's pretty obvious now that not only do students need to have
protection, but they need to protect themselves. And remember: PARENTS,
YOU ARE NOT OFF THE HOOK.

The first, most obvious thing to do is save and to save early. Parents, I hate to tell you, but you are responsible for educating your children through at least an
undergraduate degree. I work in banking, and the most annoying that I hear from parents are "My child will put themselves through school, just like I did." Guess what- it ain't happening. YOUR income is what is considered in financial aid. So, unless you plan on going into poverty shortly before your children begin higher education, you'd better start saving. Also, in divorces you will almost always find a
clause now with provisions for higher education. And you have no excuse: it is so easy now to save for college between 529 plans,Coverdell Plans, and Upromise that you can't possibly say "I just can't afford to do it." Even if you put aside $5 a week- do SOMETHING. And students: you need to save too. Don't depend on your parents to save for you, or even assume that they have a college fund. Save for yourself.

The second thing you need to do is fill out that horrible FAFSA form. I know it's a pain, I know it needs to be revamped, but it's your best chance to get aid. If your parents are divorced, choose to report on the household that makes the least amount of money. If you have siblings in college, coordinate to make sure that you are in the same household on yourFAFSA forms. http://www.fafsa.ed.gov

Next, visit http://www.finaid.org and check out their tips. They're a great
resource with great calculators and fantastic advice.

Then visit your school's financial aid office. Now that the scandal's in full
swing, they'll give you some worthwhile advice, we hope. But continue to take it with a grain of salt and do your own homework too. But maybe they have grants and scholarships that you can apply for. Actually, on that note, look for scholarships in your home town. You'd besurprised how few applicants there are and how easily you can get those scholarships.

After you do all that, get a job- but not just any job. Get one that will
advance your career, help you make contacts, or at least has the benefit of tuition assistance. If you're lucky, your employer will even have an arrangement with your school to get your tuition reduced. Yeah, you can get easy money bartending , waiting tables, doing whatever, but what is that doing for your future? No, there's nothing wrong with those jobs, and they are effective ways to make cash- but they
typically don't provide benefits or advance your career.

FINALLY, here's a tip that nobody else will give you: there are exams that you can take that fulfill college credit. Ask your registrar which exams they accept. Rather than spending $1000 per class, take the exams for under $150 and save LOADS of money. They're usually offered once per month and you can take a couple at a time, so get ready for the exam on your own and then inform your school when you're ready to take it. Usually you can only take these for your general requirements and not your major requirements, but it can save you thousands of dollars. Most commonly accepted areCLEP (http://www.collegeboard.com/student/testing/clep/about.html) and DANTES (http://www.getcollegecredit.com)exams.

If you at any point have problems dealing with your school or think you're getting misinformed or duped by your school or financial aid institutions contact the Federal Aid Ombudsman at 1-877-557-2575 or online at www.ombudsman.ed.gov

GOOD LUCK STUDENTS, and don't get screwed!

Talknet Financial Correspondence

Online Banking

Students- DON'T GET SCREWED!!