College Preparation-When is the right time?

Now is the time to think about and prepare for your application to college. There will be the SATs [Scholastic Aptitude Test], college selection and filling out applications, interviews and the list goes on. It can be a daunting task but preparing now and knowing all of your options are important. A little bit of research and investigation can go a long way to minimize or eliminate student loan payments after graduation.

Grades and extracurricular participation in high school are an important part of college selection and acceptance.  There are steps that can be taken to raise the student’s GPA [Grade Point Average] through activities and supplemental testing, which ultimately can reduce tuition costs.

AP Exams (Accelerated Placement)

AP exams are broken into two basic groups [mathematics and language], but there is a wide range of courses that the student can test for (CollegeBoard.com). The benefits of APs included weighted GPA and the opportunity to get a full class credit and “test out” of courses, saving tuition dollars. Most universities award credits for high AP scores, but all accredited universities apply scores to a weighted GPA. There are caps on the number of courses a student can test out of and it is important to keep in mind the extra study time required for scoring high on the tests. Each exam has a fee (generally $87 per test) but the tuition savings from elective credits outweigh the exam costs.

Free Application for Federal Student Aid (FAFSA)

Most universities include a FAFSA application form in their admittance packages but the applications are available directly from the US government web site [FAFSA]. The application establishes the student/family’s ability to pay tuition based on household income and finances and offers a variety of assistance programs including grants, scholarships and even tuition reduction recommendations that most universities including private schools honor.

Grants & Scholarships

Universities offer opportunities for grants and scholarships based on academic accomplishment, as well as, for community service and volunteerism. If the student knows what major they want to pursue there are additional opportunities for scholarships and grants within specific programs. A list of these opportunities will be listed on the university web site or available by contacting the registrar’s office of that school.

Student Loans

Student loans are always an option and usually carry low interest rates with payments deferred until after graduation. It is recommended that all other assistance options be pursued first and if a loan is necessary, research available programs thoroughly. Loans are available through universities, government agencies and financial institutions and it is important to research and compare to be sure that the loan is best for the student/family and that there are no hidden conditions or fees.

ESA (Education Savings Accounts)

Sterling Van Dyke Credit Union offers Education Savings Accounts to its members to help ease the burden of tuition. Save now to prepare for later. The savings accounts allow multiple persons to contribute to the fund for a specific student. The fund can accept contributions until the student reaches 18 years of age and it does have an annual cap for the amount that can be contributed. Planning ahead with this type of account along with all of the other tuition saving opportunities can greatly reduce the financial burden and stress of finances. For more information about SVDCU’s Education Savings Account, please call us at 586-264-1212, or email us at info@svdcu.org.

Holiday Charitable Giving Tips

Originally published on Consumer Affairs.com

• Donate to charities that you are familiar with or that are willing to provide additional information upon request.

• Find out how much of your donation will help the cause as opposed to covering fund raising and administrative expenses.

• Never feel pressured into making a donation.

• Always check with the local school, public safety, veterans or law enforcement groups that solicit donations in person or over the telephone. Many scam artists claim to be representing these groups to gain credibility.

• Know the difference between "tax exempt" and "tax deductible" when making a contribution.

• Watch out for similar sounding names. Phony non-profits use names that closely resemble those of respected, legitimate organizations.

• Beware of non-profits offering to send a courier to collect your donation immediately.

• Ask door-to-door solicitors to show you their identification or credentials.

• Never pay cash or use a credit card as payment for a charity you are unsure of. Checks should be written out to the charity not the company or individual collecting the donation.

Enjoy Your Holidays!

A Better Bet Than Banks?

Higher interest rates, superior service—it might be time to try a credit union.
Edited from original article by  Lynn Brenner for AARP The Magazine

Here's how bad it's gotten for bankers: they're less popular than politicians, according to a recent Zogby Interactive survey. And no wonder. After receiving a huge bailout to escape a debacle of their own making, America's biggest banks raised their fees, posted record profits, and paid enormous bonuses to their executives. Meanwhile, most of us are still struggling to regain our footing. Unemployment hovers around 10 percent—and although the bailout was supposed to help get credit flowing, banks still are not lending to the small businesses whose recovery is vital to creating jobs. "We need a citizens' intervention to reform our financial institutions," says pundit Arianna Huffington. Late last year she launched Move Your Money, a campaign that urges Americans to shift their accounts to community banks and credit unions.

Some of us are responding: 9 percent of those polled by Zogby say they've taken some business away from banks, in protest. Moral outrage aside, there are always three compelling reasons to switch banks: lower fees, higher interest on deposits, and better service. As it turns out, you are likely to find all three at some of the smallest financial institutions in the nation: credit unions.

"The average consumer does much better at a credit union than at a bank," says Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group. "Credit unions have lower requirements for waiving fees, offer better deals on car loans, and are generally more flexible in responding to customers' problems."

Everybody's Eligible
The 7,700 credit unions in the United States are nonprofit cooperatives; they exist to serve their 92 million members. Yet after more than a century, credit unions are still the best-kept secret in banking—partly because, unlike banks, they don't spend much money on advertising.
Contrary to popular belief, it's not hard to join a credit union. Membership is legally restricted to groups of people who share a common bond—such as employees of one company, or members of a religious group or professional association. But eligibility rules are now so liberal that virtually anyone who wants to join a credit union can find one, says Curtis Arnold, founder of CardRatings.com, a credit card-information website. You can sometimes even buy your way in: pay $20 once to join the National Military Family Association and you can become a member of Pentagon Federal Credit Union.

An Edge on Rates
Good things happen to interest rates when you take the profit motive out of banking. On May 13, for instance, the average one-year CD at a credit union paid 1.19 percent, whereas at banks the average was 0.96 percent. Debt financing showed a wider spread: rates for 36-month unsecured loans averaged 10.61 percent at credit unions, compared with 12.36 percent at banks. 

These differences add up. In 2009 consumers saved $7.3 billion by using credit unions instead of banks, according to the Credit Union National Association. (And in case you're wondering—yes, almost all credit unions are federally insured.)

A Can-Do Attitude
It's a telling indictment of banks that what members seem to like most about credit unions is their service. When my sister arrived in a new town to start a job, for example, she was able to borrow to buy a bed the moment she joined a credit union. And a friend says his credit union found a way to wire emergency money to his daughter's overseas bank account—after two banks told him it couldn't be done.

Disillusioned bank customers say the contrast is striking: "Our community bank went through three ownership changes in the past few years, each time with cuts in service," says freelance journalist Dave Lindorff of Maple Glen, Pennsylvania. "I walked in to get an advance on our home-equity line of credit one day and the teller said it had been frozen." After Lindorff pointed out he had substantial equity in his house, was using only 30 percent of his credit line, and had never missed a payment, the bank said it would let him apply for a new line…at a higher interest rate. Instead, he found a local credit union where he got a home-equity line at a rate lower than his original one at the bank. Says Lindorff: "The credit union couldn't have been nicer."

A Holiday Thank You from SVDCU

Tuesday Funnies from SVDCU

What Financial Reform Means to You

Originally posted on LoveMyCreditUnion.Org
In July, President Obama signed into law a new financial regulatory reform bill that will have an impact everywhere from Wall Street to Main Street. While many of the law’s provisions will not take effect immediately, consumers should be prepared to see changes in the credit arena and elsewhere now and in the future. The Michigan Association of CPAs offers some perspective on what you can expect.
Landmark Legislation
The Dodd-Frank Wall Street Reform and Consumer Protection Act has been called the most significant financial reform effort since the Great Depression. It was passed in response to the financial meltdown that occurred in 2008, which caused havoc in the stock and credit markets and sent shudders through the real estate market. The law is generally intended to tighten regulations to prevent another economic crisis in the future. While many of its provisions are aimed at big banks and other financial institutions, the law features numerous consumer safeguards.
A New Consumer Watchdog
One significant initiative for consumers is the Bureau of Consumer Financial Protection, a new agency under the auspices of the Federal Reserve that will regulate most consumer lending and investment products to ensure greater transparency and fairness. The bureau, which is not expected to begin setting policy until early next year, will have the power to establish regulations for mortgages, credit cards and student and payday loans. It should also be able to issue rules in many areas without waiting for congressional approval, which could speed necessary reforms. 
Revised Mortgage Rules
Many changes affecting mortgage lending have already become effective. For example, before approving a loan, mortgage lenders must verify that the customer can actually afford the payments based on his or her income, credit history and other factors. While it was often possible in the past to get a mortgage without an income check, this practice led to turmoil in the credit and real estate markets when many borrowers defaulted on their loans. The upshot is that you should still be able to qualify for a loan that is reasonable based on your income and circumstances, but those who are self-employed or have an irregular income stream may face stepped-up documentation requirements. Other mortgage rules attempt to prevent deceptive, abusive or unfair tactics, and make it easier for consumers to understand the details of the deal. In addition, the Emergency Homeowners Relief Fund, which should begin operating this month, will offer help to qualifying consumers who are having trouble paying their mortgages.
Bank Deposit Insurance
The new law also raised to $250,000 the amount that is insured when you deposit money in a bank, thrift or credit union covered by the Federal Deposit Insurance Corporation. This amount was temporarily hiked from $100,000 during the financial crisis in 2008, and under financial reform that increase has now become permanent. Couples are insured for a joint account as well as two individual accounts, meaning that up to $750,000 of their deposits are insured. CPAs advise that you confirm that your financial institution is FDIC insured so you know that your money is protected.

Beware of Spam-Scams!

We all get Spam e-mail everyday and even with filters on our accounts some of it winds up in our mailbox. Much of this spam is obvious, but some of it can be deceiving and we need to be careful about verifying it before we respond. Financial Institution Scams are many and frequent. You should be cautious about All e-mail you receive from financial businesses and credit card companies. The scam is always an attempt to get your account, login information and any other identity information they can get you to provide.

An important thing to remember for your own identity safety is that SVDCU will never send you an email asking you to respond with sensitive or personal information about your accounts with us.

Here are some helpful tips to help you identify and deal with potentially dangerous e-mails.

1.   Again, SVDCU and any other financial institutions will never ask you to e-mail them sensitive account information.

2.   A large number of the scam emails originate in Nigeria, Russia and China.

3.   Double check any links in the e-mail that asks for information. Look at the reply address or link to check where the e-mail originated from. The address can be a tell-tale sign of a scam

a.  “.ru” is from Russia, “.ng” is from Nigeria, and “.cn” is from China.

4.   If you receive an email that you are suspicious about, call the alleged sending company to verify the validity of the email.

5.   Add suspicious e-mail senders to your spam list to avoid future attempts to access your information.

Sterling Van Dyke Credit Union offers secure online banking and soon will offer mobile banking and your safety and security are paramount to our offering these convenient services. Any questions you may have about these services or possible e-mail communications, please contact us and we will be happy to help you with any questions or concerns.

The internet has helped make many things more convenient, but there are many unscrupulous people out there trying to take advantage of the convenience and you. Please be careful out there.

Tuesday Funnies from SVDCU