Program Update December 7, 2011

Hello Financial Coaches,

I hope you're enjoying the holiday season and the chilly weather so far!  Please read below to find information about our featured resource and updates to MyVolunteerPage for 2012.

And don't forget that we need volunteers to serve as FAFSA preparers in 2012. For more information, please contact Courtney Salcedo at Courtney.Salcedo@foundcom.org or by phone at 512-610-7385.

FEATURED RESOURCE – THE CITY OF AUSTIN CUSTOMER ASSISTANCE DISCOUNT PROGRAM

Periodically, we would like to feature a resource that many clients may not be taking advantage of.  It will be highlighted at the top of our Volunteer Resource Web Page.  Right now, our featured resource is the City of Austin Customer Assistance Discount Program.  Clients may qualify for about $49 in monthly discounts off their City of Austin utility bill through the Customer Assistance Program.  A household will qualify if someone in the household currently participates in any of the following assistance programs:

• Medicaid program type 3, 12, 13, 14, 18, 19, 22, 23, 24 or 51
• Supplemental Security Income (SSI)
• Travis County Hospital District Medical Assistance Program (MAP)
• Travis County Energy Assistance Programs:  CEAP or FEMA
• State paid Medicare Parts A and B (QMB, SLMB, or QI)

To apply, clients must fill out the Enrollment Card available in the Financial Coaching office and mail it in along with copies of documentation that shows someone in the household is participating in one of the programs listed above.  Copies can be made in the Financial Coaching office.

MYVOLUNTEERPAGE IN 2012

The “I am available” and “I have an appointment” schedules for the spring of 2012 are now posted on MyVolunteerPage.  You will notice a difference - the activities are not split up by hour any more.  To sign up for available days and times:

• Log in to MyVolunteerPage
• Go to the Sign-Up tab
• Choose “Financial Coaching – I am available – COMMUNITY FINANCIAL CENTER”
• You will see ALL the days and times that you can sign up 
• Filter by day of the week or by time simply by un-checking any days or times you do not want to sign up for at the top of the page
• Click on the Filter Shifts button
• You will now see a filtered list of days and times
• Check any specific days and times that you would be available to meet with a new client, and you will be added to our list of available coaches that we will look at when we get an appointment request from a client.

Thanks everyone for making 2011 a great year for Financial Coaching, we're in the home stretch!

Erika Leos

Financial Coaching update - November 3, 2011

Hello Financial Coaches,

I hope you're enjoying the cool weather!  We have some program updates to share with you as well as some great new resources that you can share with clients.  

PROGRAM CHANGES

Income limit simplified!  The income limit for both the Community Tax Center and Financial Coaching is now $50,000 a year, regardless of the number of people in the household.

New credit authorization form.  Please note the new credit authorization form on our Volunteer Resource Page (in the credit section).  Our contract with our credit report provider has changed and now we have to be a HUD Certified Credit Counseling Agency in order to pull credit reports without impacting the client's score.  The new authorization form informs clients of the impact on their score and the alternative for getting their credit report, annualcreditreport.com.  It is impossible to tell any one client how many points they will lose because of this inquiry, but for most people, it will be less than 5 points.  You can read more about how inquiries affect credit scores on the MyFico web site.

NEW RESOURCES

Volunteer Resource Page updated!  We added new resources and organized the Volunteer Resource Page.  One new resource you will find is Assurance Wireless, the free cell phone service for people receiving public benefits.  

Great budgeting tips.One of our volunteers shared this post on One Cobble at a Time.  It's a simple, yet thorough way to think about budgeting, from creating to tracking.  Maybe you will find some helpful tidbits to share with your clients.  I will be emailing the link to all our clients as well. 

I hope you find this information helpful.  Thank you so much for all you do for our clients, our program and our community.  

Sincerely,

Erika Leos

Financial Coaching Coordinator

Continuing Education - Credit recap and October 19 session

We had a great discussion last month on the different things we had heard about credit, but didn't have any concrete sources.  I was able to find further information on some of the points we talked about, but if anyone has further experience or resources that we can reference, please share by commenting on this post!  Below is a recap of what we discussed:

I heard that different types of bankruptcy stay on your credit report for different lengths of time – either seven or ten years. 

During our discussion, multiple people had heard this information.  Short of scouring through the text of the Fair Credit Reporting Act, I found a bankruptcy blog by a Texas law firm.  In short, the FCRA does not distinguish between the types of bankruptcy and it states that bankruptcy information cannot be reported after 10 years from date of filing.  However, credit reporting agencies will often choose to report Chapter 13 bankruptcy for only 7 years.  See the Texas Bankruptcy Blog for more information. 

I heard that medical collections are not considered when purchasing a home.

All collections negatively affect credit scores, including medical collections.  However, I have also heard that medical collections are not seen as negatively as other collections, but I do not have any documentation to back that up.  There is an article in the Union Plus about medical debt.

We have a few volunteers who are realtors or work for lenders.  I invite you to share your experience in working with people who have medical collections and are trying to buy a home.

We also discussed student loans and how they affect credit.  

Again, all collections negatively affect credit scores, including student loans.  The important thing here is that borrowers continue to work with their lender or guarantor (if the loan is in default).  A great resource for information about student loans is the Texas Guaranteed Student Loan Corporation. 

October Continuing Education gathering 

The next gathering will be on Wednesday, October 19, 12-1 pm at the Community Financial Center.  Bring your lunch and learn about 2-1-1 Texas, the program of the Texas Health and Human Services Commission that is committed to helping Texans connect with the services they need. Bridgette Kern, a representative from 2-1-1 will be giving an overview of 2-1-1 and the services they provide. She will also demonstrate how to use 2-1-1’s online database. Sign up on MyVolunteerPage.

Thanks everyone for participating and I hope to see you on the 19th!

Erika Leos

Financial Coaching Coordinator

Continuing Education - September topic: Credit "I heard that..."

Hello Coaches,

On September 21st, we will be talking about common myths and misconceptions that are out there about credit.  We hear many clients say "I heard that ___ will affect your credit. Is that true?" I would love for all of you as coaches to be ready to talk about those "I heard" moments that either a client (or you yourself) has wondered about.

Please feel free to bring your lunch.  We will discuss these common myths as we enjoy our lunches.

I hope to see you there!

Erika Leos

Financial Coaching update - August 29, 2011

Good afternoon Financial Coaches,

First, I would like give a big WELCOME to all our newest Financial Coaches who completed training this month!  We appreciate you joining our team!

As you can see in the Events section, we have a busy month ahead - that is, after taking a break for Labor Day!

EVENTS FOR CLIENTS
Please share the following information with clients who you think might be interested.  Those clients who provided an email address got this information by email.  See details by following the links in the Events section.

• Money Management.  These classes are open to all Financial Coaching clients who would like to learn about credit, debt and saving in a classroom setting. 
• Scholarship Workshops. The workshops will focus on finding and writing essays for scholarship applications.  

EVENTS FOR COACHES

See details by following the links in the Events section.

• Community Tax Center Volunteer Kick off Lunch - Join us for lunch if you or someone you know would like to learn more about becoming a volunteer for the Community Tax Center.
• Continuing Education Workshops for Coaches - In September, we will have a presentation about finding resources on 2-1-1.

OTHER INFORMATION

• Debt in Focus - Try out this great tool for creating debt repayment plan.  It's completely anonymous and all you do is plug in your numbers and it does the math.  The functionality is similar to PowerPay, but with nicer presentation of the results (think colors and graphs!).  Check it out and share with clients!
• The Austin City Council is creating an ordinance to place restrictions on Payday Lenders.  Read about the restrictions in the KXAN report.

Thanks everyone, have a great week!

Erika Leos

Financial Coaching Coordinator

Financial Coaching update - August 15, 2011

CONTINUING EDUCATION SERIES FOR AUGUST
See the Events Section to sign up.

The most any of us know about the child support system is that the client we’re working with is either receiving child support or isn’t.  Please consider joining us to learn more about the child support system from Chris Giangreco of the Attorney General’s office.  Chris will present two sessions – Wednesday, August 17^th at noon, repeated again at 6:30pm.  Both sessions will be held at the Community Financial Center.

In Chris’ hour-long presentation, he will provide an overview of the child support system and talk about how we can make it work best for our clients.  Some of the things he’ll cover are:

·         What you can do to help your client receive child support

·         Where to refer clients when they have issues with their child support case   

·         What clients should do if they have trouble making their child support payments

He’ll allow time for your questions to be answered.  Some of us have heard Chris’ presentation recently – and it’s interesting stuff!  


WEBINARS AVAILABLE FROM MONEY MANAGEMENT INTERNATIONAL
See Links Section to sign up.


Money Management International has several free webinars coming up that you may be interested in participating in.  The topics are "When income decreases, but the bills don't," "Put your debt on a diet" and "Your credit report and score."


Have a great Monday!


Erika Leos
Financial Coaching Coordinator

Continuing Education - Cash for College recap and future topics

CASH FOR COLLEGE RECAP

The Cash for College program staff and volunteers will help clients fill out the Federal Application for Federal Student Aid (FAFSA), which will determine whether they’re eligible for the Federal Pell Grant.  The FAFSA will also calculate the client’s Estimated Family Contribution, which is used to determine how much a student qualifies for in other grants, scholarships, student loans and Work Study.  The Cash for College program also serves as a general resource for anyone currently attending or thinking about attending college.  Some of the topics that are often faced by our clients are:

• The temptation to attend for-profit schools.  Many for-profit schools (often vocational or technical schools) are very good at convincing students that the school is perfect for them, often without being clear about the cost.  The reality is that most programs offered by those schools can also be found at Austin Community College for a fraction of the cost.  The Financial Coaching and Cash for College programs do not advise students against attending a for-profit school, but will help students compare all aspects, including cost, time commitment, quality of education, and type of certification/degree attained.
• The difficulty of the registration and financial aid process at Austin Community College.  While ACC can offer a huge cost advantage, for-profit schools have made the process of enrolling and financing very easy.  A for-profit school recruiting agent is always there guiding the client through every step of the way.  That is not the case at ACC.  Some clients get stuck in the process of enrolling at ACC and have a hard time finding someone who can help them keep moving forward.  Clients facing difficulty enrolling at ACC can always call or visit the Cash for College program to get assistance with the enrollment process.
•  Student loan debt.  Some of our clients have huge amounts of student loan debt.  Currently, there is no relief for student loan debt.  It is not dismissible through bankruptcy, and lenders can garnish wages and tax refunds if payment is not made voluntarily.  A new law (HR 2028 Private Student Loan Bankruptcy Fairness Act of 2011) is being proposed "to amend title 11 of the United States Code to modify the dischargeability of debts for certain educational payments and loans."

ADDITIONAL INFORMATION AND RESOURCES

•  The report from the United States Government Accountability Office about for-profit school performance can be found here.
• A New York Times article about for-profit schools can be found here.
• A Washington Post article about legislation that took private lenders out of the federal student loan equation can be found here.

FUTURE CONTINUING EDUCATION TOPICS

August 17, 12-1 pm OR 6:30-7:30 pm:  Child Support

August 31, 9 am-12 pm OR 5-8 pm:  Credit Counselor Training

September:  2-1-1 Community Resources

All of the sessions above will be held at the Community Financial Center.  Sign up today on MyVolunteerPage. 

Thank you everyone for making the Continuing Education series a success!

Regards,

Erika Leos

Financial Coaching Coordinator