NGPF Paying For College Quiz

The value of education

A college graduate can expect to earn, on average, about 1 million more than a high school graduate over a career

You will find each of the following pieces of information on your Student Aid Report

A record of the answers you submitted on your FAFSA Your Expected Family Contribution

Your friend Jesse has just started his first scholarship application and you notice that the application is asking for his credit card info. What three SCAM signs can I tell him?

A scholarship that was offered without applying for it You are pressured with time They claim to do all of the work for you

As you make decisions during college you should focus on

Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college

What are two things you can do during college or during your grace period to prepare for student loan repayment?

Choose a student loan repayment plan Determine the max monthly payment you will be able to afford

You just received your financial aid offer and you see that you've been offered a Direct Subsidized Loan and a Direct Unsubsidized Loan. Assuming you accept both loans, explain how your monthly payments after graduating will be different for the two loans

Direct Subsidized Loans = Federal gov pays off any accrued interest while you're in school, during grace period or deferment Direct Unsubsidized Loans = Any accrued interest is added to your principal amount. Monthly payments for DU loans will be different that you will have to pay off more interest

Scams

Don't sign up because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites

One advantage of Federal student loans

Federal student loans have lower credit standards (are easier to get) than private loans, which may require a co-signer

Financial Aid MOST to LEAST

Grants/Scholarships Work-Study Federal Loans Private Loans

Subsidized Federal Loan

Has limits on the amount that you can borrow based on your year in college The federal government makes the interest payments on while you are in college You make the interest payments after you graduate

You'll need a budget once you get to college, so that you aren't overspending each month. You should

Have a conversation with your parent(s) beforehand, so you understand who will pay for which monthly expenses

Valid reason for rejecting Work Study jobs

If you cannot handle the time commitment of academics and the work-study job, your grades might suffer

Good rule of thumb to consider when it comes to student loan debt

Limit your borrowing to what you expect to earn as a starting salary when you leave college

What is one common misconception students have that prevent them from filing the FAFSA?

Many believe that you must make a certain income to qualify for financial aid. Rather, financial aid is determined through a variety of factors.

If you live on campus you can most likely remove this from your budget

Monthly on-campus parking permit

Does FAFSA offer grants to college students?

NO

Keith's tuition, room & board, and fees for freshman year total $26,000. Using scholarships, grants and Federal student loans, his financial aid package is $26,500. Keith should...

Pick up a part-time job during the academic year or during breaks to cover remaining expenses

When filing your FAFSA, you will not need

Proof of employment

Good strategy to use when it comes to paying for college

Save your earnings from your summer job so that you can reduce the amount of loans you need to take

Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. He should not

Start the semester, hope the college doesn't notice the shortage, and then deal with the consequences later if they catch him

Janelle's family earns about $60,000 per year. She has been accepted to State U and Greenlawn College and is comparing their financial aid packages. State U has a sticker price of $28,000 and net price of $12,000. Greenlawn College has sticker price of $60,000 and net price of $9,000.

State U has a lower sticker price than Greenlawn college Greenlawn College offered more financial aid

Calculate Net Price

Sticker price - grants/scholarships = Net Price

As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. This means

The government expects that your family can contribute about $10,000 to the cost of your education

Is (Financial aid package) and (Financial aid offer) the same thing?

YES

Explain 3 Key differences between Federal and Private Student loans

You will never have to repay a federal student loan while still in school You will not need a cosigner in the case of a federal loan Interest rates on private loans are usually much higher

FAFSA is required for federal loans or grants, you AND for...

university, community, or professionally sponsored funds