Loans
The rate charged for borrowing money usually expressed as a percent of the amount borrowed
What is the interest rate?
a temporary agreement with a lender to pause or reduce loan payments due to financial hardship, allowing you to stop payments (or pay less) for a set period
Forbearance
A form prepared annually by current or prospective college students to determine their eligibility for financial aid
What is the FAFSA?
Original amount of money borrowed, separate from interest or fees
What is the principal?
What type of federal loans can families take out to help pay for their students' education?
Parent PLUS loans
A student loan that the federal government pays interest on as long as the student is in school at least half-time
What is a Direct Subsidized Loan?
Actual expenses that a student pays in order to attend college, which is calculated as the sticker price of a college minus the financial aid received
What is Net Price?
The cost of the FAFSA
What is free?
Describes the status of being behind on one or more loan payments
What is delinquent?
Type of aid primarily awarded for academic merit (good grades) or for something you have accomplished (volunteer work, athletics, etc) that does not need to be repaid
What are scholarships?
A legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender or loan holder
What is a promissory note?
What are three types of money that you can use to pay for college?
Free money, Your money, Borrowed Money
FAFSA
What is the Free Application For Federal Student Aid ?
A period of time that generally begins on the day after a borrower graduates, leaves school, or drops below half-time enrollment and ends on the day before the repayment period begins; borrower typically is not required to make payments during this time
What is a grace period?
What is the difference between grants and scholarships?
The main difference is that grants are typically need-based, while scholarships are typically merit-based
A student loan where the student is responsible for the interest during the time they are in school, which means they must pay that interest while studying or have it rolled into their loan
What is a Direct Unsubsidized Loan?
Sticker price for the academic portion of your college expenses, which does not include room and board, textbooks, or other fees
What is Tuition?
a U.S. federal financial aid program that helps college students with demonstrated financial need earn money for expenses through part-time jobs, often on campus
Work-Study
a financial strategy that involves combining multiple loans (such as credit card balances, personal loans, or medical bills) into a single, new loan or credit account.
Consolidation
Student aid coming from the state or federal government, the college itself, or from private sources that does not need to be repaid
What are grants?
The maximum time period over which you must repay your student loan -- currently between 10 and 30 years for Federal loans
What is the repayment period?
What are the two different kinds of interest rates?
Private loans have a higher rate
Fixed Interest rate and variable interest rate
Describe the downside to borrowing the maximum allowed amount of federal student loans.
Answer may vary
*Interest rates, more debt*
Explain why you will never receive the same financial aid letter from all the schools you apply to.
Answers may vary
You will never receive the exact same financial aid letter from every school you apply to because financial aid packages are highly customized, reflecting differences in each institution's specific policies, available funds, and how they evaluate your financial need
Do you think that taking out student loans is a good or a bad thing. Support your answer with 3 solid reasonings to earn credit
Answers may vary