Financing your Future
What do you need to submit in order to access need-based federal aid and federal loans?
FAFSA
A money wiring agency would have reliable information about student loans. True or False
False
Free Money
grants and scholarships
If you want to pay less interest over the life of your loan, you should make a ________ monthly payment.
high
What happens if you do not pay back a cosigned loan on time?
It will impact your credit score and the credit score of the parent or guardian who cosigned with you.
Which method of funding higher education accrues interest until it is paid back?
Loans
Helps estimate the amount of money you might get in scholarships and grants
Net price calculator
A teller at a local financial institution will likely have information about financial aid at many different institutes of higher education. Yes or No
No
Cost of Attendance
Total amount it will cost you to go to school (includes tuition and fees as well as personal expenses).
A certificate program
Training that will most likely have the lowest sticker price.
Financial aid offers have to be subtracted from a school's cost of attendance to determine how affordable a school is. True or False
True
The purpose of the FAFSA is to access need-based federal aid, including federal loans. True or False
True
This loan has a higher borrowing limit.
Unsubsidized loan
This term identifies that type of interest that can change over the life of the loan
Variable interest
Payments are low and can last up t o 25 years
extended repayment plan
Paying a student loan by making monthly payments over 10 years
standard repayment plan
Positive Return on Investment
the gain on the sale of an asset divided by the total price paid for the asset. Only assets sold at a profit can have a positive return on investment.
Federal loans are from...
the government
Who would most likely be the best cosigner on some student loans?
A parent or guardian
Expected Family Contribution (EFC)
An estimate of the parents' and/or student's ability to contribute to post-secondary expenses. In general, the lower the EFC, the higher the financial aid award from the college may be.
The additional costs paid each year in order to borrow money in loans, including both interest and fees
Annual Percentage Rate (APR)
How often do you apply for financial aid?
Every year
When do you need to apply for a federal student loan?
Every year, based on the deadline of each state.
How much the federal government expects your family will be able to contribute per year toward your school expenses is known as...
Expected Family Contribution (EFC)
Financial aid letters show your aid and costs of attendance for four years. True or False
False
If you calculate the cost of attendance at an institute of higher learning, you are only including tuition and books. True or False
False
Jeremiah works at the pet store. He did not complete his studies at the Community College, but has student loans now. Jeremiah has a positive return on investment. True or False
False
Scholarships and grants need to be paid back but loans are free money. True or False
False
The biggest difference between scholarships and loans is that scholarships are consider easy money but loans must be paid back. True or False
False
The cosigned loan means that your parents or guardians are witnesses to your signing. They only have responsibility on parent loans. True or False
False
The purpose of the FAFSA is to apply for community-based scholarships and local bank loans True or False
False
The type of food that is offered on the meal plan is something to consider then trying to get a positive return on investment. True or Fales
False
This shows how long the average student takes to earn a degree and this can be helpful in determining the return on investment at different institutions.
Graduation rate
When researching financial aid option, who should you contact first?
High School Counselor
Payment amounts are based on a percentage of what you earn.
Income-driven repayment plan for student loans
If you earning potential is higher than the cost of your higher education you will have...
Positive return on investment
net cost
Scholarships, grants and work-study money all reduce the __________ of higher education.
When determining how much money to borrow in loans to pay for your higher education, be sure to consider...
The interest rate of the loan
The sticker price
The price of attendance including tuition, room and board, books, and other costs.
The cost of attendance to an institute of higher learning , including room and board, books, and other costs is known as...
The sticker price
Anna got a high paying job as a lab technician after graduation. She took five years to graduate from a public university and did take out a lot of loans. Did she have a positive return on investment. yes or no
Yes
Subsidized Student Loan
a loan on which the student pays no interest until he or she has graduated or is no longer in school
subsidized loans are different from other types of loans because they are based
are based on financial need
This term identifies the percentage of the loan t hat you pay on top of what you have borrowed
interest
A(n) ____________ is a percentage of the loan that is charged to cover the cost of giving the loan
origination fee