Financial Freedom Ch. 5 Test

Scholarships

Another form of free money is _________________. You should never pay to apply for scholarships. And do not give out your Social Security number when you apply.

emergency fund

As you work in the summer and save money for your school bill, set aside a separate amount in an _____________. If something bad happens during school, you will have some funds to fix the problem so you don't have to drop out of school.

Self education

Instead of relying on formal institutions for education, you could be self-taught

Zero Based Budget

It is important to live on a....

Education

It is possible to get an awesome _________ without student

six

It's a good idea to narrow your choices down to _____ schools or less. During this process, consider each school's degree programs, living expenses and tuition.

78%

More than _____% of freshmen plan to work during their freshmen year

1) 30% 2) 50%

Nearly 1)_____% of student loan borrowers wind up dropping out of school, and more than 2)_____% of borrowers at two-year for-profit colleges never finish.

12 million—or 60%

Nearly 20 million Americans attend college each year. Of that 20 million, close to __________ borrow annually to help cover costs.

Student debt

Negative consequences for taking out student loans

False

Once you've completed the FAFSA, you should accept all student loans and grants offered to you.

Good grades can help you get free money. Doing well on ACT or SATA

Options for paying for you education

good debt

Our culture thinks student loan debt is okay—it seems totally normal. Some people even call it "____________."

2/3 s

Percentage of college students who graduate with student loans

1) cash-flow (pay as you go) your college education 2) apply for scholarships 3) live on zero based budget

Plan to get an education debt free after high school

1) If your financial situation has changed 2) a parent has been laid off 3) or a medical situation has come up 4) ask about school's jobs 5)

Reasons to visit your colleges financial aid office

Self education

Start reading books, blogs and trade magazines in your field of choice. Attend conferences and local events. Meet people and find a mentor. You may also want to attend online courses specific to your field.

certifications

Students who are looking to learn specific skills can look into free or low-cost _________________ found online, at community colleges, or through government-funded programs.

True

T/F A little patience and sacrifice now will set you up for peace and joy later.

True

T/F A student loan is NOT an award! It will take years to pay it back, plus you'll have to pay interest. There is no such thing as a "good debt."

False

T/F A student loan is an award for good grades.

False

T/F An associate's degree will always transfer to a 4-year school's program

True

T/F Balances of student loans have exceeded both auto loans and credit cards, making student loan debt the largest form of consumer debt outside of mortgages.

True

T/F Before anything else and throughout your whole life, the best investment you can make is in yourself

False

T/F Debt is always the answer

True

T/F If you don't want to attend college, ask yourself why it doesn't feel like the right path and talk to a parent or adult.

False

T/F If you get a part-time job, your grades will suffer.

True

T/F In order to make the most of cash-flowing college, you've got to focus on the specifics like filling out your financial paperwork, researching scholarships, and finding part-time work opportunities.

True

T/F Keep in mind that more expensive doesn't always mean better quality.

On-the-job training

The employee, train at the place of work while you are doing the actual job. Usually a professional trainer serves as the course instructor and uses a combination of hands-on activities and formal classroom training.

1) 37% 2) 63%

The percentage of student loan borrowers who paid on time without postponing payments or becoming delinquent is 1)______%. In other words, 2)____% of borrowers had a hard time paying back their loans.

one trillion dollars

The total estimated student loan debt in our country is _______

1 Trillion

There is roughly $________ in total outstanding student loan debt in the United States today.

A student loan is NOT an award! It will take years to pay it back, plus you'll have to pay interest.

Three reasons to avoid student loans

cash-flow

To "__________" simply means to pay with cash as you go, instead of using credit or debt.*

85 billion

Total estimated student loan debt **unpaid**

Years

Trade schools teach basic professional skills in 2 _______ or less

1) you have to read 2) have goal to continue your education. 3) have goal to stay out of debt.

Ways to invest yourself

The FAFSA

What is the first step to receiving any kind of financial aid. Whether you are interested in scholarships, grants, loans or other financial aids, you'll need to submit this form.

Student loan debt

What is the only form of consumer debt that has grown since the peak of consumer debt in 2008.

write an essay

When applying for a scholarship, you will often be asked to ________.

mentors

When investing in yourself, Have some _______ who have already had some success.

1) 96% 2) 46%

While 1)____% of college students are determined to finish college, only 2)_____% feel they have the financial resources to stay in school.

merit-based

While __________ scholarships are the most popular, there are countless other types available. If you have a unique talent or skill set, there is a good chance of finding an award that's just right for you. With a little research, you'll be amazed at both the variety and availability of these scholarships.

Attending conferences, Reading books, Learning from someone more experienced

You can enhance your education by....

get good grades

You need a plan! Start now. Get help from your parents and school counselor along the way. Planning for college involves more than just ACT scores and college applications. You must understand how much it is going to cost (that includes tuition, books and living expenses) and know how you are going to pay for it. One thing you can do right now, is.....

False

You should focus on your grades while in school, and only work during the Summer months.

30%

______% of student loan borrowers drop out of school and then have to find a way to pay back their student loans on a high school graduates salary

Two-thirds

_______-_______ of college students graduate with student loans.

Education

________ is the most powerful weapon which you can use to change the world."

Millions

________ of people can't afford to make their student loan payment every month.

85 billion

___________ dollars of the one trillion dollars in student loan debts in the US is past due

summer

______is a great time to save up a lot of cash to pay for your next semester

Certifications

an official document that gives proof and details of something such as personal status, educational achievements, ownership, or authenticity

Trade school

schools that allow students to learn basic professional skills in two years or less

Cash flow

the difference between cash coming in and cash going out

1) Giving 2) Saving 3) Spending

three items you must determine ahead of time in order to live on less.

Borrow

to use something lended

True

The average student loan debt has surpassed $27,000 for an undergraduate degree

70%

In fact, almost ______% of college students graduate with debt!

Lack of money

8 out of 10 students who drop out of college dropout due to _________..

Associates degree

A degree that generally takes two years of study and is awarded by a community, junior, or business college.

Grant

A form of federal or state financial aid that does not need to be repaid; usually given to students who demonstrate financial need

Scholarship

A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements

FAFSA Free Application for Federal Student Aid

A form that is completed annually by current and prospective college students to determine their eligibility for financial aid

Adviser

A person who gives information, advice, or help

Entrepreneur

A person who organizes, manages, and takes on the risks of a business.

Work Study

A program that allows students to work part time while continuing their studies

41%

About ____% of borrowers fall behind on their student loan payments in the first five years

1) trade school 2) certifications 3) self-education 4) on the job training 5) Associate's Degree 6) start a business 7) military

Alternative career options

associate's

An __________ degree is a two-year degree that can offer a variety of benefits including lower cost than four-year colleges, specialized training and a flexible schedule that allows you to work while you earn your degree. Whether it is your first step toward earning a bachelor's degree or the beginning of your career, an associate's degree may be a great option. Career fields such as fashion design, nursing, cardiovascular technology and criminal justice are offered at the associate's level.

community

Attending a ___________ college or state university that allows you to live at home is a great option for reducing the cost of living expenses, even if it is only for your first two years of school.

community

Attending a _____________ college for your first two years is a great way to knock out your freshman and sophomore years at a low cost. If you plan to continue our education after your two-year degree, work closely with your advisor to make sure the classes you take are going to transfer to your four-year university of choice.

10 years

Average repayment period for a student loan

10 years

Avoid student loans! The average repayment period for a student loan is ______ years if you make the minimum payment each month. You will pay more interest if you go beyond 10 years.

The books you read and the people you meet

Charlie "Tremendous" Jones said, "Five years from now, you will be exact the same person you are today, except for ________ and _________.".

Knowledge

College is not worth the extra time any money....the _________ you get while at college is.

Anyone; anything; any reason

Debt is owing ________, ________, for ________.

Four

During the last 20 years, tuition has increased at a faster rate than any other major product or service— _________ times faster than overall inflation. After adjusting for financial aid, the amount families pay for college has skyrocketed 439% since 1982.

On-the-job training

Employee training at the place of work while he or she is doing the actual job.

Federal Pell Grant and state-specific grants.

Example of grants

1) University scholarships for academics, athletics, clubs, etc. 2) Community scholarships like the Boys and Girls Club or Rotary Club 3) Local business scholarships exist to promote their organization 4) Private donors might include relatives or other individuals 5) Student-specific scholarships exist for almost every characteristic you can think of 6) Unique scholarships for a variety of hobbies, talents and interests.

Examples of scholarships

Grants

Federal and state governments offer __________ that are usually need-based. The FAFSA will determine which grants you qualify for.

Pay cash for college

Fourth foundation

Freedom

If you avoid debt, you'll have the ______ to go after your dreams.

True

T/F Make sure you ask that the student loans be removed from your funding. You'll need your family's tax information as you complete the FAFSA. Keep in mind, if you turn it in online, the process moves faster.

True

T/F Maybe you'd like to start your own business. While there is always risk involved, if you have passion and an entrepreneurial spirit, it might be right for you. Be sure to create a solid business plan and establish financial resources first. Stick with a debt-free plan.

True

T/F Never forget that you want to graduate debt-free.

True

T/F Research shows that students who work up to 20 hours a week have the highest grade point averages of any type of student in college because they often develop good time-management skills. Research also shows that working more than 20 hours a week may affect your grades negatively.

False

T/F Scholarships are limited and there often aren't enough to go around

False

T/F Student loans will not be listed in your financial aid award package

True

T/F The FAFSA form needs to be completed each year you are in college.

True

T/F The average cost of room and board in 2012-2013 ranged from $9,205 at four-year public schools to $10,462 at private schools.

True

T/F The choices you make in the next few years will affect the next 40 years of your life. You'll have much more freedom to pursue your dreams and do exactly what you want to do. Now that's a great way to begin your future!

True

T/F The people you put in your life influence your career, your decisions and how you spend your money.

True

T/F The sooner you turn in the form (by January or February), the more likely you are to get financial help because some federal funding is awarded on a first-come, first-served basis.

True

T/F There are a wide range of scholarships - from silly, to serious.

True

T/F Trade schools allow students to learn basic professional skills in two years or less because technical schools typically cut out many of the general courses required by traditional universities. Also, since trade schools are often directly tied into the employment needs of their region or state, prospective employers often seek new hires from trade school graduates.

True

T/F Usually the school provides hourly positions that pay minimum wage; the good news is you can often study as you work. Check with the financial aid office to see what jobs are offered.

True

T/F When you receive your financial aid award package for college, you'll see a list of all different types of awards like scholarships and grants.

True

T/F Where you went to school only matters to about 2% of the jobs out there

False

T/F You can fill out the Free Application for Federal Student Aid anytime of the year

True

T/F You can find jobs off campus that offer flexible schedules for students in a variety of roles. These jobs usually pay more than work study. On-campus jobs may pay you directly or pay toward your tuition bill.

False

T/F You don't have to continue to feed your brain new and good ideas to grow

True

T/F You don't want to steal all of your future possibilities from yourself by going into debt to get your degree.

True

T/F Your future happiness, success and income will have very little to do with the prestige or name recognition of the college you attend.

True

T/F Your net worth is going to be the average of the 5-10 people you hang out with the most.

True

T/F planning ahead for your career and education will help you find those opportunities. And learning about the dangers of student loans and credit cards will allow you to avoid those long-term consequences of a few bad decisions. Bottom line, you have to beware and be wise.

True

T/F you can not get rid of student loan debt through bankruptcy

True

T/F you must be prepared to avoid these financial hazards once you graduate from high school by having a plan.

Military

The _________ isn't for everyone, but it has helped a lot of people get through college debt free while giving them the honor of serving their country. Remember, post-secondary education is not a one-size-fits all plan. With so many options, you have the opportunity to create your own educational experience that allows you to follow your passions and meet your goals.

Month

The average millionaire reads a non-fiction book every ________.

$27,000

The average student loan debt has now surpassed $_________ for an undergraduate degree.

Community colleges

two-year institutions that provide students with general education and facilitate transfer to a four-year university