Financial Aid
The most important form you need to fill out every year to reapply for college financial aid from the federal government.
A: What is the FAFSA?
Money that has to be paid back.
What is a loan?
A record of how a consumer has repaid credit obligations in the past; shows payment history, late payments, liens, debt forgiveness, bankruptcy filings, and number of inquiries by prospective lenders.
What is credit history and what it contains.
Convenient way to spend money that is an alternative to checks or cash and is linked directly to bank account.
What is a debit card?
It tracks your spending and savings for your future.
What is a budget?
FAFSA Application can be submitted starting on this date.
What is October 1st?
The amount a lender charges a borrower that is calculated as a percentage of the amount borrowed.
What is an interest?
Equifax, TransUnion, and Experian.
Who are the three credit reporting agencies?
Name of fund you should have available to cover unexpected expenses; and how much should it equal.
What is an emergency or “rainy day” account equal to between three and six months of your salary?
Type of expenses that stay about the same each month.
What are fixed expenses?
Money to pay for college that does not have to be paid back.
What are grants and scholarships?
This type of interest rate moves up and down with the rest of the market or along with an index.
What is a variable interest rate?
Website you should go to once every 12 months to get a free credit report from each of the three major credit bureaus (TransUnion, Equifax, and Experian)?
If I have $26 in my checking account and make a purchase of $26.03, what happens?
What is overdraft fee?
In regard to spending - Things that are nice to have, or satisfy some desire or urge.
What are wants?
Most popular grant offered by the federal government.
What are Pell Grants?
The Federal Direct Student Loan that does not accrue interest while you are in school.
What is a Subsidized Direct Loan?
Maintain credit histories and provide lenders with FICO scores.
What do credit reporting agencies do?
The ability to borrow money and pay it back, usually with interest.
What is credit?
Another name for a budget.
What is a cash flow plan?
An index number that college financial aid staff use to determine what types of, and how much, financial aid you would receive.
What is a Student Aid Index (SAI) number?
This type of debt has outstanding balance over $1.7 trillion
What is total student loan debt? or What is federal and private student loans?
FICO credit scores
What do many lenders use to assess an individual’s credit risk?
If I make $10/hour and work 10/ week, why isn’t my weekly check $100?
What are taxes?
50% of your income spent on needs, 20% spent on savings and 30% spent on your wants.
What is the 50 - 20 - 30 Rule?