Paying for College
What type of grant is given to someone with extreme financial need?
pell grant
Who is eligible for a direct plus loan?
graduate students or parents of undergrad students
A non-federal student loan made by a bank, credit union, or other entity, which sets the terms and conditions for the interest rate, grace period, and length of repayment
Private Student Loan
what order should you use the 3 types of money you use to pay for college
free money, your money, borrowed money
TRUE OR FALSE: Forbearance is when you pause your student loans but interest still accrues
true
Deferment is when interest does NOT accrue
How can going to community college help you save money once you transfer to a state school?
With __________ loans the government pays interest on the loan while you are in school, but with ___________ you are responsible for the interest while in school.
subsidized, unsubsidized
Student aid coming from the state or federal government, the school, or from private sources that does not need to be repaid (based off of eligibility, not merit)
grant
You have submitted your FAFSA application. Who is this information going to?
The schools that you are applying to
TRUE OR FALSE: FAFSA offers grants to college students
false
FAFSA only calculates how eligible a student may be for aid
What are the 3 types of money you use to pay for college?
your money, free money, borrowed money
Who is eligible for unsubsidized loans?
undergrad students (note: DOES NOT NEED PROOF OF FINANCIAL NEED)
A free online application that current or prospective college students can submit each year to determine their eligibility for financial aid
FAFSA
While you are in school, you have to pay for tuition, travel expenses, phone bill, books, and dinners. Which of these is a direct cost?
tuition
TRUE OR FALSE: the higher your SAI (student aid index) the MORE financial aid you need
lower SAI means more aid needed
When do you apply for FAFSA?
October or November of your last year of high school
Who is eligible for subsidized loans?
undergrad students (note: WITH PROOF OF FINANCIAL NEED)
The total amount of financial aid (federal and nonfederal) a student is offered by a college, designed to help meet a student’s education costs
Financial aid offer
How do you calculate net price?
sticker price - grants & scholarships (or financial aid) = net price
TRUE OR FALSE: you will find a record of all scholarships you applied for on your FAFSA Submission Summary
you will find a record of your application, your SAI, and your eligibility, and which colleges you sent this info to
Hannah's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which college is cheaper to go to?
college b
Which should be your LAST option when paying for college?
1. using your own money
2. using scholarships & grants
3. taking out a loan
A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students to help pay for the cost of the student's education at participating schools
Direct Plus Loans
Put these types of loans in order of LEAST attractive to MOST attractive
Grants/Scholarships
Federal Loans
Private Loans
Work Study
Private loans, federal loans, work study, grants/scholarships
Tell me the 3 types of student loans and tell me if
1. interest is fixed or not
2. who is eligible
3. who pays interest on this loan
Subsidized loan - fixed, undergrad, government
Unsubsidized loan - fixed, undergrad, you
Direct plus - fixed, grad/parents, you/parents