Loans
What distinguishes subsidized federal loans from unsubsidized loans?
Subsidized loans don't accrue interest while you are in school
Which option allows you to temporarily stop payments due to financial hardship while interest may still build?
Forbearance
What are the two different categories of expenses for school?
Direct and indirect
What is the FAFSA?
Extra Credit: When does it open?
It is an application for aid.
October 1
Who is eligible for direct sub./unsub. loans?
undergraduates
How long is the standard repayment term on a federal loan?
10 years
Give one example of a direct college cost and one example of an indirect cost.
direct: tuition, meal plans, dorm, fees
indirect: transportation, books, etc.
What are two pieces of information you can find on your financial aid letter?
TBD
Rank the follow types of financing from best for your finances to worst.
Work Study
Grants
Scholarships
Private Loans
Federal Loans
1. Grants
2. Scholarships
3. Work Study
4. Federal Loans
5. Private Loans
What are two types of repayment plans other than the standard repayment plan for federal loans?
graduated and income based
How do you calculate the net price of a college?
Sticker price less scholarships and grants
What three groups utilize information from the FAFSA?
State governments, the federal government, and colleges
List two differences between federal loans and private loans.
TBD
What is one benefit and one drawback of income-driven repayment plans?
Benefit: you will be able to have a lower payment that will allow you to focus on paying other things (bills, building savings, small investments)
Drawback: You will end up paying more in interest than a standard repayment plan. You may not qualify later on.
A college has a high sticker price but a lower net price than another school. What does this tell you about its financial aid?
The school may often significant financial aid to those with lower income or academic merit.
How does a work study differ from a part time job?
You are guaranteed a job on campus and a set pay. You need to apply for a part time job and pay/hours may vary.
What is the name of the only federal student loan offered to parents of students?
PLUS loan
What is the term for combining all loans into a single larger loan?
What is one benefit and one drawback of this practice?
Consolidation
Benefit: simplifies things (1 payment date, 1 interest rate, etc.)
Drawback: may lose out on deferment/forbearance options, rate and term may be longer
What indirect expenses will you need to consider if you do not use university housing? List three.
utilities, internet, rent, food expenses, etc.
What are three ways to go into college with course credits?
dual enrollment, APs, and CLEP tests