Paying for Higher Education

During a grace period, interest does not accrue.

true

Why should you review the Student Aid Report closely?

when you submit the FAFSA, you'll receive a Student Aid Report. The SAR gives you basic After information about your eligibility for federal student aid.

Grant

A tax‐exempt financial aid that may be given for many purposes, not necessarily just for education.

Describe the difference between a subsidized and an unsubsidized loan.

Direct Subsidized Loans are only available to undergraduate students Unsubsidized-Available to undergraduate and graduate students, as well as parents

What does the acronym "FAFSA" stand for?

FAFSA stands for Free Application for Federal Student Aid

Loan default

Failure to pay a loan according to the agreed upon terms.

All federal student loans have the same interest rates

False

If you are a dependent, you only have to submit information about yourself when completing the FAFSA.

False

Private loans often have lower interest rates than federal loans

False

You only have to complete the FAFSA application once for the entire time you are in school.

False

Scholarship

Money awarded to students that does not have to be repaid and is based on academic or other achievements.

Order the following types of loans from lowest to highest interest rates.

PLUS Loan Private Loan Direct Subsidized Stafford Loan, Direct Unsubsidized Stafford Loan. Federal Perkins Loan

Forbearance

Postponement of payment on a loan allowed under certain conditions when interest does not accrue.

List at least three documents that you may need to refer to when completing the FAFSA form.

Social Security Number. our Alien Registration Number (if you are not a U.S. citizen) Your most recent federal income tax returns, W-2s, and other records of money earned.

The Expected Family Contribution varies per school.

True

You should never have to pay for a scholarship.

True

Identify three ways individuals may reduce their total cost of higher education.

consider low interest federal loans Take Advantage of Income Tax Savings for College Apply for Scholarships and Grants