Scholarships & Financial Aid
Why are grants considered "free money"?
Because you don't have to pay them back.
In your own words, what is a loan?
When you borrow money and promises to pay it back
A positive return on investment for education happens when
your earnings potential is higher than the cost of your education
Why should you try to be an informed consumer?
So you can get the best value for your money.
Are sponsored reviews or verified purchaser reviews more reliable? Why?
Verified purchaser reviews are more reliable because the reviewer isn't being paid for a positive review.
What is the main benefit of taking out a federal student loan instead of a private loan?
You may qualify for loan forgiveness after you graduate.
Margo wants to purchase a new car. She doesn’t have enough in savings to cover the cost. She decides to look into loans from her bank. How can taking out a loan help Margo with her car purchase?
She can pay the loan back over time.
Which of these is something to consider when trying to get a positive return on investment for higher education?
Total cost of attendance
Cost of a meal plan
Cost of Tuition
Cost of books
Total cost of attendance
A 10-ounce bottle of your favorite lotion that you use each day costs $9.50. The 5-ounce bottle only costs $5.
Which is the better deal and why?
The 10-ounce bottle is a better deal because the price per unit is lower.
How do loan terms affect the cost of credit?
Shorter loan terms have higher monthly payments and lower overall interest.
Longer loan terms have lower monthly payments and higher interest.
When do you need to apply for the Free Application for Federal Student Aid (FAFSA)?
The year before college and every year you attend college.
What is the difference between secured and unsecured loans?
Secured loans require collateral (you have to put something down- car, house etc) while unsecured loans do not.
They will generally pay more money.
Which review of an online clothing store is more trustworthy and why?
Review A states: “All 5 of the shirts were high quality but small. Order a size up” (verified purchase).
Review B states: “I love everything from this site. Don’t miss out on their great sales” (sponsored review).
Review A is more trustworthy because it was a verified purchase-they actually bought it.
What are predatory loans and what type are there?
Loans that take advantage of the borrower with hidden costs or unfair terms.
Bait and Switch
Payday Loans
Hidden Fees
Phishing scam
Rosa is getting ready to fill out the FAFSA. Which of these documents will she need to fill it out?
Individual tax returns
High School Transcript
Driving Record
Most recent pay slip
Individual tax return
Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?
Secured loan
What does the total cost of attending a university include?
What are good ways to make an informed decision about a purchase?
Read Reviews from other consumers
Read product descriptions
Research and compare your options
What is a risk of using cash?
No fraud protection. Once the cash is gone, it's very hard to get it back.
Marcus is a high school senior in Atlanta. He plays baseball and is president of the mock trial club. He would like to major in political science in college and become a lawyer. Which of these scholarships would he be qualified to apply for?
1. City of Atlanta basketball scholarship
2 Teach for America student scholarship
3 American Bar Association law scholarship
4 Literary Bard Society student scholarship
3 American Bar Association law scholarship
Maya needs a loan to pay for her new business. She wants a loan with the lowest overall interest costs. She’s considering a 3-year loan with an 8% fixed interest rate or a 5-year loan with 6% fixed interest rate. Why would Aisha pick the 3-year loan?
It has a lower total cost.
Carol became an accountant by starting her training at a community college, followed by transferring to a bachelor's degree program at her local public university. How likely is it that she will have a positive ROI?
Very likely, because she spent less money the first two years of college and has a job.
What are things a smart consumer does?
Research before buying, buy only what you need, consider unit prices, choose the best payment method
What things could impact your ROI? Either make it higher or lower?
Make it higher:
Scholarships or grants
Working while you go to school
Community college
Make it lower:
Loans
Expensive colleges
Lower paying jobs after your degree