Financing your Future

What do you need to submit in order to access need-based federal aid and federal loans?

FAFSA

A money wiring agency would have reliable information about student loans. True or False

False

Free Money

grants and scholarships

If you want to pay less interest over the life of your loan, you should make a ________ monthly payment.

high

What happens if you do not pay back a cosigned loan on time?

It will impact your credit score and the credit score of the parent or guardian who cosigned with you.

Which method of funding higher education accrues interest until it is paid back?

Loans

Helps estimate the amount of money you might get in scholarships and grants

Net price calculator

A teller at a local financial institution will likely have information about financial aid at many different institutes of higher education. Yes or No

No

Cost of Attendance

Total amount it will cost you to go to school (includes tuition and fees as well as personal expenses).

A certificate program

Training that will most likely have the lowest sticker price.

Financial aid offers have to be subtracted from a school's cost of attendance to determine how affordable a school is. True or False

True

The purpose of the FAFSA is to access need-based federal aid, including federal loans. True or False

True

This loan has a higher borrowing limit.

Unsubsidized loan

This term identifies that type of interest that can change over the life of the loan

Variable interest

Payments are low and can last up t o 25 years

extended repayment plan

Paying a student loan by making monthly payments over 10 years

standard repayment plan

Positive Return on Investment

the gain on the sale of an asset divided by the total price paid for the asset. Only assets sold at a profit can have a positive return on investment.

Federal loans are from...

the government

Who would most likely be the best cosigner on some student loans?

A parent or guardian

Expected Family Contribution (EFC)

An estimate of the parents' and/or student's ability to contribute to post-secondary expenses. In general, the lower the EFC, the higher the financial aid award from the college may be.

The additional costs paid each year in order to borrow money in loans, including both interest and fees

Annual Percentage Rate (APR)

How often do you apply for financial aid?

Every year

When do you need to apply for a federal student loan?

Every year, based on the deadline of each state.

How much the federal government expects your family will be able to contribute per year toward your school expenses is known as...

Expected Family Contribution (EFC)

Financial aid letters show your aid and costs of attendance for four years. True or False

False

If you calculate the cost of attendance at an institute of higher learning, you are only including tuition and books. True or False

False

Jeremiah works at the pet store. He did not complete his studies at the Community College, but has student loans now. Jeremiah has a positive return on investment. True or False

False

Scholarships and grants need to be paid back but loans are free money. True or False

False

The biggest difference between scholarships and loans is that scholarships are consider easy money but loans must be paid back. True or False

False

The cosigned loan means that your parents or guardians are witnesses to your signing. They only have responsibility on parent loans. True or False

False

The purpose of the FAFSA is to apply for community-based scholarships and local bank loans True or False

False

The type of food that is offered on the meal plan is something to consider then trying to get a positive return on investment. True or Fales

False

This shows how long the average student takes to earn a degree and this can be helpful in determining the return on investment at different institutions.

Graduation rate

When researching financial aid option, who should you contact first?

High School Counselor

Payment amounts are based on a percentage of what you earn.

Income-driven repayment plan for student loans

If you earning potential is higher than the cost of your higher education you will have...

Positive return on investment

net cost

Scholarships, grants and work-study money all reduce the __________ of higher education.

When determining how much money to borrow in loans to pay for your higher education, be sure to consider...

The interest rate of the loan

The sticker price

The price of attendance including tuition, room and board, books, and other costs.

The cost of attendance to an institute of higher learning , including room and board, books, and other costs is known as...

The sticker price

Anna got a high paying job as a lab technician after graduation. She took five years to graduate from a public university and did take out a lot of loans. Did she have a positive return on investment. yes or no

Yes

Subsidized Student Loan

a loan on which the student pays no interest until he or she has graduated or is no longer in school

subsidized loans are different from other types of loans because they are based

are based on financial need

This term identifies the percentage of the loan t hat you pay on top of what you have borrowed

interest

A(n) ____________ is a percentage of the loan that is charged to cover the cost of giving the loan

origination fee