Financial Aid
What type of financial aid do you have to pay back?
Loans
What is Interest?
Interest is the cost of borrowing money or the reward for saving it, expressed as a percentage of the principal amount.
What is a debit card?
A debit card pulls money straight from your bank account when you buy something.
What is a credit score?
A prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.
What are the two major sections needed for a budget?
Income and Expenses.
What is the name of the website where you apply for Federal financial aid?
FAFSA.gov: Free Application for Federal Student Aid
What is Principal in the context of a loan?
The principal is the original amount of money you borrow from a lender, separate from interest or fees.
What is a credit card?
A credit card lets you borrow money up to a limit and pay it back later, with interest
How do you build credit with a credit card?
Make all of your payments on time or before the deadline.
What are fixed expenses?
Costs that remain constant over time.
If live in California and you aren't a citizen of the United States where can you apply for financial aid?
CADAA: California Dream Act Application
What is a good interest rate for a car loan?
A good car loan interest rate depends on your credit score, but generally, rates under 7% for new cars and under 11% for used cars are considered favorable in 2026.
What is an overdraft fee?
An overdraft fee is a charge the bank adds when it lets a transaction go through even though your account doesn’t have enough money, causing your balance to go negative
Which 2 big purchases require a credit check?
Homes and cars.
What is net income?
The amount of income remaining after subtracting expenses, taxes, or other deductions.
What is tuition?
The price or payment for instruction
What is the average interest rate for federal student loans?
Undergraduate loans (Direct Subsidized & Unsubsidized): 6.39%
Graduate & professional loans (Direct Unsubsidized): 7.94%
What is direct deposit?
Direct deposit allows funds, such as paychecks, tax refunds, government benefits, or other payments, to be automatically sent to a checking, savings, or investment account.
What would be considered a GREAT credit score?
740 <
What is zero-based budgeting?
A method where you give every dollar of your income a specific job (spending, saving, or debt payment) so that income minus planned expenses equals zero at the end of the period.
What is the name of the Grant that makes tuition free at California Community Colleges for first-time, first-generation, and low-income college students?
California Promise Grant
What is the rule of 72 in investing?
The rule of 72 says that if you divide 72 by an investment’s annual interest rate, the result is the approximate number of years it will take for the money to double.
What is the average interest rate of High Yield Savings Accounts?
4 - 5%
What is the average interest rate for credit cards in the United States?
25%
How much should you have saved for emergency expenses?
Enough money to 3 to 6 months of essential living expenses.