Financial Aid Terms
Acronym for Free Application for Federal Student Aid
What is a "FAFSA"
One type of repayment option or repayment term for student loan borrowers is what?
Either:
Options:
Income-based
Graduated repayment
Terms: Standard (10 years) or Extended (12, 15, 20, 25, or 30 years).
Just like a mortgage, student loans can be a ____ debt.
What is a "good" type of debt.
You must start repaying student loans before you graduate from school, in your senior year.
Myth - 6 months after graduation!
A loan where the Federal governments pays interest while you are in school
What is "Subsidized Loan?"
The form that determines a student’s financial aid.
What is a "FAFSA"
Get a new student loan that pays off all the existing loans.
Offered by banks, credit unions, and private, non-profit lenders
Private student loans.
The federal government determines financial need from the FAFSA form.
Truth
A loan available to parents of undergraduate students
What is a PLUS loan?
3 types of loans that you do NOT need to repay.
What are grants, scholarships, and work-study.
An opportunity for a student to work part-time and attend college and it's
An example of “free money”, like a grant, scholarship, or gift.
What is "Work Study"
Lender of federal student loans.
Federal government.
With an unsubsidized federal loan, the federal government will pay the student's interest until the student leaves or graduates from college.
Myth - Subsidized loans
This Federal loan is NOT based on financial need.
What is an "unsubsized loan?"
Interest rates are typically lower on these types of loans than rates of private student loans.
Federal Student Loans
A period during which repayment of the principal and interest of your loan is temporarily delayed.
What is a deferment.
Typically have a higher variable interest rate and fewer deferment options.
What are private student loans.
Private student loans are not need based but based on creditworthiness.
Truth!
These loans start accruing interest while in school. Name one.
Federal: Unsubsidized and PLUS loans
A type of financial aid - based on need - that does not require repayment
What is a "Grant"
If you can make your scheduled loan payments, but don't qualify for a deferment, your loan servicer may be able to grant you with one of these.
What is a "forbearance".
Financial aid that is awarded based on a student’s academic, leadership, or artistic talent, or some other criteria.
Scholarship.
You can reduce the amount of Federal Aid offered to you.
True- You don't have to accept the entire amount!
These loans take a person's credit score into consideration.
What are "Private Loans?"