EverFi: Budgeting for your Loans

If you want to pay less interest over the life of your loan, you should make a _____ monthly payment.

high

How is cost of attendance (COA) determined at an institute of higher education?

It is an estimate of tuition, fees, room and board, books, supplies and other expenses.

Which type of interest can change over the life of a loan?

Variable interest

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, focus first on how much you will still need after financial aid for each year you are in school and how much your family can contribute. Pay attention to interest rates after you know how much you need to borrow.

What is an origination fee on a loan?

A percentage of the loan that is charged to cover the cost of giving the loan.

What does Expected Family Contribution (EFC) mean?

How much the federal government expects your family will be able to contribute per year toward your school expenses.

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! You have to subtract financial aid offers from cost of attendance to determine true costs.

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 _____ is the additional costs you pay each year in order to borrow money in loans, including both interest and fees.

annual percentage rate (APR)

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 every year