Financial Aid Process
Give an example of a direct cost.
Tutition, fees, housing, and meal plan.
What is a scholarship?
Free money based on merit/achievement.
What is the difference between a fixed and a variable interest rate?
Fixed: the amount you pay stays the same each month; interest doesn't change.
Variable: the amount you pay varies each month; interest changes with the economy.
What does repayment mean?
The action of paying back a loan.
How long of a grace period do you have before you have to start paying back your loans after graduation?
6 months
Give an example of an indirect expense.
Textbook, transportation, dorm furnishings,and other personal expenses.
What is a grant?
Free money based on financial need.
Name a difference between federal and private student loans.
Federal: fixed interest, no credit report needed, no cosigner, no penalty fees, and may have a portion of your loan forgiven.
Private: variable interest, credit score needed, cosigner needed, penalty fees, and no loan forgiveness.
How does consolidation help you?
Simplifies your monthly payment; all in one spot.
How long can you forbear your student loans?
0-12 months
What does FAFSA stand for?
Free Application for Federal Student Aid
Give an example of a scholarship you want to apply for.
McDonald's, Taco Bell, Dr. Pepper, Stuck at Prom
What is a subsidized loan?
The federal government pays the interest on your loan while you are still in school.
Can lower you monthly payment and interest rate.
How long can you defer your student loans?
0-3 years
What is a work-study?
Gives you the opportunity to earn money to help you pay your educational expenses while in school.
What is the difference between sticker prices vs net price?
Sticker price is the maximum amount it would cost to attend college for a year. Net price is the actual amount you will pay to attend college for a year after scholarships and grants.
What is an unsubsidized loan?
Interest payments start during college, which means you are in charge of paying interest.
What is an income-driven repayment plan?
Plans that are sensitive to post-grad income.
What does forbearance help you with?
Delays your student loans due to a financial hardship or illness.
What is cost of attendance?
The maximum amount of money a college costs to attend for one year.
Give an example of a tip for finding college scholarships.
Start early, pay attention to deadlines, ask school counselor, ask the college/university, beware of scams.
What is a direct plus loan?
Similar to unsubsidized loans but offered to graduate and professional students.
What are the three basic repayment plans?
Standard, Graduated, and Extended
What is a common mistake when repaying your student loans?
Neglecting to pay, forgetting to update contact information, failing to choose the right repayment options, etc.