Chapter 7 Study Guide

Loan

An amount of money given to the borrower for a set period of time. After the set time has passed, the money must be paid back.

When is the best time to submit a FAFSA form?

As soon as possible of October 1st of the year before the student will be attending college.

What does FAFSA stand for?

Free Application For Student Aid

What is a scholarship?

If an individual goes to school on a scholorship they are not only attending college for free but they also have "scholorship" on your important documents which is a huge advantage for your future (i.e. jobs)

Who uses the FAFSA once submitted?

If the students gets approved, then they're the ones who will be earning money that will be towards their education.

What does SAR stand for?

Student Aid Report

What does EFC stand for?

The Expected Family Contribution

What is more important to consider when looking at colleges: sticker price or net price?

The Net Price is much more important to consider when look at colleges rather then the sticker price because the net price is actual money that you or an indvidual will be paying.

Why are loans not deducted from sticker price even if they are typically awarded to you in a financial aid package?

The net price is actual money that you or an individual will be paying.

If you are submitting the FAFSA this year, you will need tax forms from which year?

The student will need to submit tax forms 2 years prior.

What is a disadvantage of not filling a FAFSA form?

The students will not be benefiting from getting money to help them out pay off the college expenses.

Who awards these types of Grants?

- Federal Grants: Awarded by the United States Government. - College Grants: Awarded by the Federal Agency. - Private Grants: The city

What percentage of college is paid for by:

- Grants/Scholarships: 31% - Spending from income/savings: 43% - Borrowing: 24%

How do Grants differ from Scholarships

-Grant: usually come from state or federal financial aid that is given to the college or university itself. -Scholarship: awarded by a number of funding sources

Grant

A sum of money or other payment given for a particular purpose

Why are more students and their families are looking at starting salaries after graduation when deciding colleges and areas of study

Because college is expensive students want to find a major that they are interested in and will be affordable.

Why is the EFC important?

Because this determines your financial need

Why is the SAR important?

Determines the students eligibility for federal and institutional aid, so it's important if you have the information up to date.

What do you receive once you submitted a FAFSA application?

Each student will be getting a Student Aid Report (SAR). SAR summarizes the information of your FAFSA application.

True or False: You will file the FAFSA once over the course of your college career

False

How will attending college benefit you financially and personally?

Financially: make more money, better career opportunities and an investment for the future. Personally: Prepares you socially and mentally for the world.

When should a student submit their FAFSA application?

Opens on: October 1, 2019 till June 30th, 2021

What is the relationship between FAFSA, SAR and EFC

These are all 3 types of financial aid

True or False: You can get college scholarships only during your senior year of high school.

True

How important is your expected starting salary after college to you when deciding a college and major?

Your expected starting salary is very important after college because it makes you think how much money you can spend on your major.