CARES Act. Although many college students were not eligible for the stimulus checks distributed in April 2020, the CARES Act did provide funds to UW-Whitewater for students who endured a financial hardship as a direct result of COVID-19. The Federal Emergency Relief Grant was available to students; however, the monies have been fully distributed. For questions related to the Federal Emergency Relief Grant, contact the Financial Aid Office at firstname.lastname@example.org.
Federal Student Loans. From March 13, 2020 until January 31,2022, 0% interest is being assessed to most federal student loans. In addition, if you are in repayment, your student loans have been placed on administrative forbearance (temporary suspension) until January 31, 2022, but you can still make a payment if you so choose. For more information on Federal Student Loans and COVID-19, visit Federal Student Aid.
FAFSA & Financial Aid. Many families are experiencing reduced income as a result of COVID-19 and wondering if they should update their FAFSA application. According to the Federal Student Aid site, the 2020-21 FAFSA application requests 2018 income tax records. For many, 2018 income does not reflect their current situation. They suggest contacting individual schools for which you are applying to explain and document the change in income. Click here for more information on the FAFSA application.
Refunds and Excess Monies. Here are some financial activities to consider if you have extra funds:
A Tale of Two Investors
Saver and Spender are friends from college, and learned from their families the importance of saving for the future. During college, Saver started to invest money after working a part-time job.
Saver placed money into an investment fund earning an average of 10%. Due to life events, Saver stopped saving at the age of 33. Saver invested a total of $24,000 over 12 years.
Spender decided to spend discretionary income from a new career on a brand new car, travel, recreation, and entertainment. At age 34, Spender decided to start thinking about retirement and invested $2000 for the next 32 years, earning an average of 10%. Spender invested a total of $64,000 over 32 years.
Who will end up with more money by retirement? Saver had accumulated $550,804 more than Spender by the age of 65. Key factors to increasing the value of investments is to save early and utilize compounding interest!
Common Retirement Funds:
Cost of Attending UW-Whitewater. Whether an undergraduate or graduate student, estimate your cost of attending UW-Whitewater.
Auto Loan Payment. Determine your estimated monthly auto loan payment.
Compounding Interest. Calculate savings account interest.
Living On or Off Campus. Determine whether living on or off campus is better for your lifestyle and budget.
Retirement Planner. Shows when you can expect to retire, and if you are saving enough.
Salary Paycheck. Calculate your net pay (take-home pay) by entering information regarding current or future salary and benefits.
Student Loans. Estimate the size of your monthly loan payment and the annual salary required to manage the loans without too much difficulty.
Student Loan Repayment. Estimate your student loan payment upon leaving college or dropping below 1/2 time status.