Bonds
The risk that the company or government is unable to pay back the investor.
What is default risk?
Non-federal, credit-based loans offered by private banks, credit unions, and financial institutions to bridge funding gaps for college expenses.
Private student loans
A widespread cognitive bias where an individual's subjective confidence in their judgments is higher than their objective accuracy
What is overconfidence?
Subtract total grants and scholarships from the total cost of attendance (tuition, fees, room, board).
What is Calculate Net Price
A payment is made directly from one person to another
What is P2P
Issued by companies to raise capital for operations or expansion
What are corporate bonds?
A sum of money awarded by governments, foundations, or corporations to individuals or organizations for a specific purpose, which does not need to be repaid
What is a grant?
A behavioral economics bias where individuals value owned items more highly than identical items they do not own, often driven by loss aversion
What is the Endowment Effect?
Scholarships and grants (e.g., Pell Grants) do not require repayment.
What is Gift Aid (Free Money)
Many apps offer encryption, two-factor authentication (2FA), and fraud monitoring.
What is Security Measures
A fixed-income investment that acts as a loan made by an investor to a borrower
What is a bond?
Higher education is provided directly by the U.S. Department of Education, rather than banks or private institutions. They offer fixed interest rates, income-driven repayment plans, and no requirement for a credit check or cosigner.
What are government student loans?
Cognitive tendency to search for, interpret, favor, and recall information that confirms one's pre-existing beliefs while ignoring contrary evidence
What is cognitive Bias
Federal work-study programs provide part-time jobs
What is Self-Help Aid
A major advantage of digital wallets is the use of this feature, which replaces actual card numbers with random digits to prevent theft.
What is tokenization
Low-risk, fixed-income debt securities issued by a government to finance projects and manage debt
What is a government-issued bond?
A need-based federal program providing part-time jobs for undergraduate and graduate students to help pay for education expenses
What is work study?
The fear of missing out
What is fomo?
Money for school that doesn't have to be repaid, often based on merit (grades, talents) or need, from colleges, private organizations, or the government.
What are Scholarships
Unlike a physical wallet, a mobile wallet can be secured with this biometric technology, such as facial recognition.
What is Face ID?
Receiving interest payments (coupons) periodically, or receiving the full principal amount upon maturity or early redemption
How to get paid through bonds?
The final amount a customer pays for college
What is the net price?
The irrational tendency to continue an endeavor, relationship, or investment solely because of previously invested time, money, or effort, rather than current benefits
What is Sink Cost Fallacy?
Money you borrow for school must be repaid with interest, with federal loans offering better terms than private options.
What are loans
To use a physical card instead of a digital wallet, this is the primary advantage often cited.
What is tangibility (or tactile feedback)