Paying For Higher Education Quiz
Work Study
A federal program that provides part time employment opportunities for students with financial need, allowing them to earn money to help pay educational expenses
Subsidized Loan
A need-based loan from the federal government, the interest of which is paid for by the U.S. Department of Education while the borrower is in school and during grace and deferment periods.
Unsubsidized Loan
A non-need based loan from the federal government, the interest of which is paid for by the borrower
Student Aid Report
A report that summarizes responses made when completing the FAFSA form
Describe the difference between a subsidized and an unsubsidized loan.
A subsidized loan: the interest is paid by federal government while you are in school and for 6 months after you leave school. It is need based. Unsubsidized loan: the interest accumulate (accrue) while student is in school and after leaving school, the borrower will pay all of the interest. (not need based)
Grant
A tax-exempt financial aid that may be given for many purposes, not necessarily just for education.
Accrue
Accumulate
Who offers private loans and why should they typically be the last financial aid option considered?
Banks, Credit Unions, or Universities should be your last option because they are the most expensive option.
Loan Servicer
Company that collects payment on a loan
COA
Cost of attendance
Expected Family Contribution
EFC, the amount of money you and your family are expected to pay
Loan Default
Failure to pay a loan according to the agreed upon terms.
FAFSA
Free application for federal student aid - Application that must be completed to determine financial aid
Scolarship
Money awarded to students that does not have to be repaid and is based on academic or other achievements.
Grace Period
Period of time after a borrower graduates, leaves School or drops below half-time enrollment where they are not required to make certain federal loan payments
Deferment
Postponement of payment on a loan allowed under certain conditions when interest does not accrue.
List and describe two sources of financial aid you do not need to pay back.
Scholarships: money awarded to students based on academic or other achievements to help pay for education. Grants: tax-exempt financial aid that may be given for many purposes, not necessarily just for education.
Forbearance
Stop or reduce loan payments for a short period of time while interest still accruing
Net Price
The cost of attendance minus grants and Scholarships
Financial Need
The difference between the cost of attending a particular school and the expected family contribution.
Consolidate
To combine into a single overall account or set of accounts