budgeting for your loans
Financial aid letters show your aid and costs of attendance for _____.
One year
What do the initials EFC mean?
expected family contribution
What are the additional costs you pay each year in order to borrow money in loans? This includes both interest and fees.
annual percentage rate
Along with the amount of financial aid, which is the most important to pay attention to when trying to determine financial aid costs in relation to your personal budget?
, the actual cost of attendance the most important thing to pay attention to when trying to determine financial aid costs in relation to your personal budget.
How does a loan's term, or number of years to repay a loan, affect your monthly payments and amount owed?
the shorter the term, the higher you monthly payment but the less interest over the life of the loan
Which of the following is true about financial aid letters from institutes of higher education?
they only and for one year. You must reapply for financial aid every year
If you calculate the cost of attendance (COA) at an institute of higher education, what are you including?
tuition, fee....
Which type of interest can change over the life of a loan?
variable interest
If you are comparing the financial aid letters from two higher education institutions, how can you determine which one is more affordable?
you determine which one is more affordable by subtracting the financial aid offer from the cost of attendance.
What is an origination fee on a loan?
A percentage..
If a school is offering a lot in financial aid, what else do you need to consider when trying to determine if a school is going to fit your budget?
COA
What are you calculating if you add together an estimate of tuition, fees, room and board, books, supplies and other higher education expenses?
COA
what are calculating if you add together an estimate of tuition, fees, room and board, books, supplies and other higher education expenses?
COA
What do you need to consider to decide if you can afford to go to an institute of higher education?
COA and financial aid
What is considered by the federal government to be what your family will be able to pay per year toward your school expenses?
EFC
When determining how much money to borrow in loans to pay for your higher education, which of the following items should not be considered?
When determining how much money to borrow in loans to pay for your higher education, which of the following items should not be considered?
How is cost of attendance (COA) determined at an institute of higher education?
by estimating tuition, fees, room and bard, books , supplies and other expense
What is an annual percentage rate (APR)?
dditional costs you pay each year in order to borrow money in loans. This includes both interest and fees.
Which type of interest does not change over the life of a loan?
fixed
If you want to pay less interest over the life of your loan, you should make a _____ monthly payment.
high
The shorter a loan's term, the _____.
higher the monthly payment but less interest paid over the life of the loan
What does Expected Family Contribution (EFC) mean?
how much the federal government expect your family will be able to contribute per year
Which of the following terms is a percentage of the loan that you pay on top of what you have borrowed?
interest
Does an offer of more grants and scholarships mean one school is cheaper than another school?
no financial aid offers....
What's the best advice to give to a student who says: "It's easy to determine which school is more affordable; just look at how much financial aid they give you!"
not true ! financial aid offers have to be subtracted from a school's cot of attendance to determine how affordable a school is
Financial aid letters show your aid and costs of attendance for _____.
one year
A(n) _____ is a percentage of the loan that is charged to cover the cost of giving the loan.
origination
A percentage of the loan that is charged to cover the cost of giving the loan is known as _____.
origination fee
The _____ is the additional costs you pay each year in order to borrow money in loans, including both interest and fees.
orignation fee
Financial aid letters from institutes of higher education show your yearly aid and costs for attending. This means that you will need to_____.
reapply for aid
When determining how much money you will need to borrow in loans for each year of your higher education, you need to take into account _____.
the amount money you will need after all finical aid is subtracted
