Ben Grill NGPF Unit 4
The value of education
- A college graduate can expect to earn, on average, about $1,000,000 more than a high school graduate over a career.
Your friend Jesse has just started his first scholarship application, and you notice that the application is asking for his credit card information. You quickly tell him it could be a scam and give him three more signs to look out for. What three signs do you tell him?
- A scholarship that was offered without applying for it, You are pressured with time, They claim to do all of the work for you
What are two things you can do during college and/or during your grace period to prepare for student loan repayment?
- Choose a student loan repayment plan, Determine the maximum monthly payment you will be able to afford, Make interest payments towards your loans to reduce the total amount you owe, Create a budget
Valid reason for rejecting Work Study jobs...
- If you cannot handle the time commitment of academics and the work-study job, your grades might suffer.
Scams
- While doing online research about the colleges you're considering, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 per month, and we guarantee you'll win a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites.
Good rule of thumb to consider when it comes to student loan debt..
- You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college.
Explain three key differences between federal and private student loans.
- You will never have to repay a federal student loan while still in school, The Federal government may pay for part of the interest on federal loans in the case of a subsidized loan, You will not need a cosigner in the case of a federal student loan, Interest rates on private student loans are usually much higher
As you make decisions during college, you should focus on...
Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college.
In order to qualify for financial aid, you must file
FAFSA (Free Application for Federal Student Aid)
One advantage of Federal student loans -
Federal student loans have lower credit standards (are easier to get) than private loans, which may require a co-signer.
FASFA does NOT offer grants to college students - Financial aid package and Financial Aid Offer are the SAME thing
Financial aid package and Financial Aid Offer are the SAME thing
The types of financial aid from MOST attractive to LEAST
Grants/Scholarships, Work study, Federal loans, Private loans
Subsidized federal loan
Has limits on the amount that you can borrow based on your year in college.
You'll need a budget once you get to college, so that you aren't overspending each month. You should...
Have a conversation with your parent(s) beforehand, so you understand who will pay for which monthly expenses.
What is one common misconception students have that prevent them from filing the FAFSA?
Many believe that you must make a certain income to qualify for financial aid. Rather, financial aid is determined through a variety of factors.You just received your financial aid offer and you see that you've been offered a Direct Subsidized Loan and a Direct Unsubsidized Loan. Assuming you accept both loans, explain how your monthly payments after graduating will be different for the two loans. For Direct Subsidized Loans, the Federal government pays off any accrued interest while you're in school at least half-time, during a grace period, or during deferment.
If you live on campus you can most likely remove this from your budget
Monthly on-campus parking permit
Keith's tuition, room & board, and fees for freshman year total $26,000. Using scholarships, grants, and Federal student loans, his financial aid package is $26,500. Keith should... - Pick up a part-time job (during the academic year or during breaks) to cover remaining expenses.
Pick up a part-time job (during the academic year or during breaks) to cover remaining expenses.
When filing your FAFSA, you will NOT need... -
Proof of employment
Good strategy to use when it comes to paying for college -
Save your earnings from your summer job so that you can reduce the amount of loans you need to take.
When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. He should not.... -
Start the semester, hope the college doesn't notice the shortage, and then deal with the consequences later if they catch him
Janelle's family earns about $60,000 per year. She has been accepted to State U and Greenlawn College and is comparing their financial aid packages. State U has a sticker price of $28,000 and net price of $12,000. Greenlawn College has sticker price of $60,000 and net price of $9,000.
State U has a lower sticker price than Greenlawn College - Greenlawn College offered Janelle more financial aid
Net Price -
Sticker price minus grants & scholarships = Net Price
As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. This means...
The government expects that your family can contribute about $10,000 to the cost of your education.
You will find each of the following pieces of information on your student Aid Report (SAR) - a record of the answers you submitted on your FAFSA, your Expected Family Contribution (EFC).
a record of the answers you submitted on your FAFSA, your Expected Family Contribution (EFC).
FAFSA is required for federal loans or grants, you AND for.. -
university, community, or professionally sponsored funds.
