Money Tips for Students, March 2014

Students should take care when signing contracts

At some point, students will have to sign a contract. When they do, they should keep in mind these tips from the Kentucky Higher Education Assistance Authority (KHEAA).

A contract is a written legal document between two or more parties in which an offer is made and accepted. Contracts would include an apartment lease, an insurance policy or a cell phone plan. Read all contracts thoroughly and ask questions before you sign. Complete everything and keep a copy for yourself.

Consumer protection laws let you change your mind and cancel some contracts within three days of signing. Before you sign any contract, find out if you have that option. If you don’t but later find it’s necessary to cancel the contract, you may have to pay a big penalty or have to pay what the contract calls for.

Never sign a contract unless you read and understand the terms of the agreement. If you feel pressured, walk away.

KHEAA is the state agency that administers Kentucky’s grant and scholarship programs, including the Kentucky Educational Excellence Scholarship (KEES). It provides financial literacy videos at KHEAA also provides free copies of “It’s Money, Baby,” a guide to financial literacy, to Kentucky schools and residents upon request at .

To learn how to plan and prepare for higher education, go to For more information about Kentucky scholarships and grants, visit; write KHEAA, P.O. Box 798, Frankfort, KY 40602; or call 800-928-8926, ext. 6-7372.


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