Unit 7 Financial Lit Review
What is one way you can reduce total tuition cost over your time in college? A: apply for a loan B: work off campus C: Sell your car D: Enroll for 15-18 credits each semester instead of 12
D
True/False: Grants and Scholarships do not need to be repaid
True
True/False: Scholarship can be based on need or merit
True
True/False: To be eligible for financial aid, your estimated family contributions (EAC) must be less than the Cost of Attendance (COA)
True
How often does FAFSA need to be completed?
Yearly
How is the cost of college Net Price calculated?
Colleges total cost - grants/scholarships/tax benefits
How much of your student loan interest can you deduct on a yearly basis?
$2,500
When you start paying back your federal loans after graduation, the default repayment option is... A: Fixed payments over 10 years B: Graduation payments over 10 years C: Fixed payments over 25 years D: Income-based repayment plan
A
True/False: Both tax credits, the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) can both be taken in the same year
False
True/False: You must have great credit to qualify for student loans
False
What is the biggest way the average family pays for college?
Federal Student Aid
What is the biggest way the average family pays for college?
Federal Student aid
What are 3 factors that can affect your tuition costs?
In-state or out-of-state Credit hours What type of program you are in
What tax credit can help you offset the costs of graduate school by lowering the taxes paid?
Lifetime Learning Credit
What are 2 disadvantages of paying for college with a private loan?
May not have repayment options May not have the borrow protections
What is the difference between a subsidized loan and an unsubsidized loan?
Subsidized: loans for undergraduate students with w/financial needs. They do not vary in interest Unsubsidized: Loans for both undergraduate and graduate students that are not based on financial needs
Based on such advantages as high contribution limits (with no high income earning limitations), tax-deferred growth, and tax-free distributions for qualified education expenses; investing for your future kid's college is likely best done through... A: An in-state 529 education plan B: An education savings account (ESA) C: A kids savings account D: Government Bonds
A: An in-state 529 education plan
When determining your estimated family contribution (EFC), students assets will count more than the parent's assets A: True B: False
A: True
Most work study programs, grants, and federal loans are based on? A: Merit B: Financial Need C: Program of study
B
Regarding student loan repayment, it is recommended to... A: Everyone should consolidate their federal loans B: Pay above the minimum payment on student loans starting with the highest interest rate C: Make the minimum payments only as programs may be available in the future to erase your student loan debt D: Declare bankruptcy
B
In a subsidized loan, what organization covers the interest until you leave school? A: Your parents while you are in school B: You cover the interest as it accrues while your in school C: The government
C