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The Steps Involved In Financial Planning
Designing and implementing a good financial plan takes time and effort, but the reward is great.
You will get maximum value from your money, and will not be overwhelmed by the stress of poor financial
management. Being informed in your decision-making is the key. Set your goals, get the information
and advice you need, create your financial plan and follow it. Budget carefully, and reevaluate your
financial situation regularly. Your time and effort, as well as your money, will be well spent.
The earlier you begin planning for college, graduate or professional school the more prepared you
will be. Here is an illustration of the steps you should follow:
Financial Planning and Management - Step by Step
Define Goals
Collect Data and Ascertain Your Costs
Identify Income Sources
Analyze Cash Flow
Outline Options
Design Budget
Control Your Financial Actions
Establish and Maintain Records
Gives You Your Financial Plan
MAJOR PLAYERS IN FINANCING HIGHER EDUCATION
The Federal Government
.
The Office of Education
o Federal Family Education Loan Program (FFELP)
.
Subsidized Stafford Loans
.
Un-Subsidized Stafford Loans
o
Federal Perkins Loans
o
Federal College Work Study
.
Health and Human Services
o
Primary Care/Health Professions Student Loans
o
Loans for Disadvantaged Students
o Scholarships for Disadvantaged Students
.
Armed Forces and Public Health Corp Scholarships
State and Local Governments
.
Direct subsidies to both public and private institutions
.
Scholarships and grants
. Loan and loan forgiveness programs
Private and Institutional Sources
.
Loan and scholarships
.
Assistantships and stipends
Students and their Families
.
Savings
.
Earnings
. Indirect Support
Key Participants in the Student Loan Business
.
School financial aid office/administrator
.
Lenders
.
Guaranty agencies
.
Servicing agencies
.
Secondary markets
The lender is an entity who provides the loan money. This entity may be a bank, savings and loan,
credit union, or other approved organization from which the borrower obtains a loan. All lenders
must follow federal guidelines concerning student loans but each lender is free to set its own
policies within these guidelines.
Guaranty agencies (or guarantors) are State agencies or private nonprofit institutions that insure
student loans for lenders and help administer the FFEL Program for the U.S. Department of Education.
The disclosure statement that is provided with the first loan disbursement should indicate the loan's
guaranty agency.
Servicing agencies (or servicers) are companies that administer loans for lenders and secondary markets,
issuing monthly statements, handling billing, collecting payments, and so on.
Secondary markets are comprised of financial institutions and other organizations that specialize in
buying student loans from originating lenders. With the proceeds of these sales, lenders often make
new student loans. When a loan is sold to a secondary market, the terms of your loan remain the same.
Contact Information for Some of the Major Players:
GUARANTY AGENCIES:
Arizona Education Loan Program (AELP)
USA Group Guarantee Services
Western Regional Center
P.O. Box 3028
Chandler, AZ 85244-3028
Phone: 1-800-824-7044 or: www.usagroup.com
EdFund (a service of the California Student Aid Commission)
P.O. Box 510622
Sacramento, CA 94245-0622
Phone: 1-800-298-9490 or: www.edfund.org
Hawaii Education Loan Program (HELP)
USA Group
P.O. Box 22187
Honolulu, HI 96823-2187
Phone: 1-808-593-2262 or: www.usagroup.com
Illinois Student Assistance Commission (ISAC)
1755 Lake Cook Road
Deerfield, IIL 60015-5209
Phone: 1-800-899-ISAC (1-800-899-4722), in Illinois, Indiana, Iowa, Missouri, and Wisconsin
1-847-948-8550, outside these states or: www.isac1.org
New Mexico Educational Assistance Foundation (NMEAF)
3900 Osuna Road, N.E.
P.O. Box 27020
Albuquerque, NM 87125-7020
Phone: 1-800-279-5063 or: www.nmslgc.org
Northwest Education Loan Association (NELA)
500 Colman Building
811 First Avenue
Seattle, WA 98104
Phone: 1-206-461-5300, in Washington
1-800-562-3001, outside Washington or: www.nela.net
Oregon State Scholarship Commission (OSSC)
1500 Valley River Drive, Suite 150
Eugene, OR 97401
Phone: 1-541-687-7375, in Oregon
1-800-452-8807, outside Oregon or: www.ossc.state.or.us
Texas Guaranteed Student Loan Corporation (TOSLC)
P.O. Box 201725
Austin, TX 78720-1725
Phone: 1-800-252-9743 or: www.tgslc.org
USA Group Guarantee Services
Use the address that is shown on materials you've received from USA Group. -
P.O. Box 6176 P.O. Box 3028
Indianapolis, IN 46206-6176 Chandler, AZ 85244-3028
Phone: 1-800-824-7044 or: www.usagroup.com
SERVICING AGENCIES:
Academic Financial Services Association (AFSA)
Correspondence to:
P.O. Box 7051
Utica, NY 13504-7051
Payments to address shown on payment coupon.
Or if no coupon, write SSN on check and send it to:
P.O. Box 7053
Utica, NY 13504-7053
Phone: 1-800-835-4611 or: www.afsa.com
American Education Services (AES)
P.O. Box 162296
Sacramento, CA 95816
Phone: 1-916-929-1956, in California
1-800-233-0557, outside California or: www.pheaa.org
Brazos Higher Education Service Corporation (BHESC)
P.O. Box 14445
Austin, TX 78761-4445
Phone: 1-800-375-9208
New Mexico Educational Assistance Foundation
P.O. Box 92260
Albuquerque, NM 87125-2260
Phone: 1-800-279-5063 or: www.mnslgc.org
Student Loan Marketing Association (Sallie Mae/SLMA)
The Loan Servicing Center
RO. Box 12229
Killeen, TX 76547
Phone: 1-888-272-5543 or: www.salliemae.com
UNIPAC Service Corporation
Correspondence:
P.O. Box 1649
Denver, CO 80201
Payments without coupon: Payment with coupon:
Attn: Client Accounting Department 540
3015 S. Parker Road, Suite 400 Denver, CO 80281-0540
Aurora, CO 80014
Phone: 1-303-696-3600, in Colorado
1-800-456-4757, outside Colorado or: www.unipac.com
USA Group Loan Services
Use the address that is shown on materials you have received from USA Group.
P.O. Box 6176 P.O. Box 8938
Indianapolis, IN 46206-6176 Boston, MA 02266
Phone: 1-800-824-7045 or: www.usagroup.com
SECONDARY MARKETS:
Arizona Education Loan Marketing Corp
Correspondence to: SW Student Service Co
P.O. Box 41150
Mesa, AZ 85274-1150
Payments to: SW Student Services Corporation
P.O. Box 52256
Phoenix, AZ 85072-2256
Phone: 1-800-367-2369
1-602-461-9650
Brazos Higher Education Authority
P.O. Box 1308
Waco, TX 76703
Phone: 1-800-375-0915
Chela Financial
388 Market Street, Suite 1250
San Francisco, CA 941 11
Phone: 1-415-283-2840
1-800-282-4352
Illinois Designated Account Purchase Program (IDAPP)
1755 Lake Cook Road
Deerfield, IL 60015-5209
Phone: 1-847-948-8620, in Illinois
1-800-366-5755, outside Illinois
The New England Education Loan Marketing Corporation (Nellie Mae)
50 Braintree Hill Park, Suite 300
Braintree, MA 02184-1763
Phone: 1-800-EDU-LOAN (1-800-338-5626)
Direct to Customer Service: 1-800-634-9308
New Mexico Educational Assistance Foundation (NMEAF)
P.O. Box 92260
Albuquerque, NM 87125-2260
Phone: 1-800-279-5063
Student Loan Funding (SLF)
One West Fourth Street, Suite 200
Cincinnati, OH 45202
Phone: 1-800-477-SLFC (1-800-477-7532)
Student Loan Marketing Association (Sallie Mae/SLMA)
1050 Thomas Jefferson Street, N.W.
Washington, DC 20007
Phone: 1-888-272-5543w
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