What is SALT?
SALT is a free program for all Kansas State University students and alumni. SALT was designed to help current and former college students understand financial matters such as student loan debt, budgeting, savings, networking, and career building.
To sign up for a SALT account visit www.saltmoney.org/k-state. It is important to use this link to sign up because Kansas State University has purchased the right for students and alumni to use the entire SALT program.
What does SALT do?
SALT enables K-State students the ability to upload student loan data into a program that calculates how much their monthly payment will be when their loan enters repayment.
Before you can upload the federal student loan information, you will need to retrieve the loan data by signing into the National Student Loan Database System website www.nslds.ed.gov. You will need to know your FAFSA Personal Identification Number (PIN) in order to obtain your loan information. If you cannot remember you PIN, please visit www.pin.ed.gov.
The SALT program also allows students to put in private loans to create a more accurate picture of total loan payments, since any private loans will not be listed on the NSLDS website. To access unknown private student loans, the student can view their credit report at www.annualcreditreport.com. A SMMC coach can help a student through this process. Once the private loans and their respective balances and interest rates have been located, this information can be manually imported into SALT. After the federal and private loans have been uploaded to SALT, it will show the total amount the client should expect to pay each month for all of their loans. SALT will show the client how much they will end up paying in both principal and interest over the course of the loans.
SALT is an extremely valuable tool if a student is considering increasing the duration of the loan(s) in the future. A student would consider increasing the duration of the loan(s) if they feel as though the payment amounts are too much to handle. By increasing the duration of the loan(s) the student’s monthly payments will be less, however the total amount they will end up paying will be much greater. By utilizing SALT the student can weigh the pros and cons of changing the term lengths because they will be able to see the decrease in payments as well as the increase in the total amount and interest paid.
To better understand the concept of how loan details (interest rate, principal, duration, and payments) affect how you will end up paying on a loan, schedule an appointment to speak with a SMMC Peer Financial Coach or visit: http://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial.