FAFSA
The FAFSA becomes available every year in October.
True or False:
Scholarships can be found right through your college's website.
True! Scholarships can be found many places including the university's website.
True or False?
You can borrow as much as you want in federal student loans; there is no limit
False! There is always a limit as to how much you can borrow in loans.
True or False:
When offered a financial aid package from a college/university, you must accept ALL of the items in the package.
False. You can pick and choose the aid that you receive in the financial aid offer.
True or False:
Deferment and Forbearance both pause loan payments for a period of time, but interest continues to accrue during a deferment.
False. Interest stops gathering completely when a loan is on deferment, however, continues to accrue while on a forbearance.
How much does it cost to file for the FAFSA?
Applying for the FAFSA is a free procress.
Yes or no?
Does the FAFSA offer grants to college students?
No. The FAFSA is the form you fill out to determine if you are eligible for grants. The federal government or college are the ones that are offering the grant.
In what order should someone accept the following types of financial aid in order of 1 to 3?
Scholarships/Grants
Federal Loans
Federal Work Study
1. Scholarships/Grants
2. Federal Work Study
3. Federal Loans
Michelle has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $40,000 and net price of $17,000. College B has a sticker price of $57,000 and net price of $12,000. Which school will it cost less to attend?
It will cost less to attend college B.
Name that Loan Repayment Method:
Payments can be fixed or graduated and will ensure your loans are paid within 25 years
Extended
Your FAFSA Submission Summary includes your SAI.
What does a low or high SAI tell you about the amount of financial aid you will receive?
High SAI --> less financial aid
Order the following types of money based on the order you should use them:
Borrowed Money
Free Money
Your Money
1. Free Money
2. Your Money
3. Borrowed Money
Who is eligible to receive direct subsidized loans?
Undergraduate Students
(Students receiving there Bachelors or Associates)
What is a promissory note used for when accepting financial aid offers?
A promissory note is an agreement formed by you and the lender that you will pay back the loan.
Name that Loan Repayment Method:
Payments are a fixed amount that ensures your loans are paid off within 10 years
Standard
How often do you have to file for the FAFSA?
How do scholarships and grants differ?
Scholarships and Grants are both forms of free money, however, scholarships are a merit based aid and grants are need based aid.
Name that loan type:
The federal government pays the interest on this type of loan while you are attending college at least half time.
Subsidized Loans
What is the difference between a net price and a sticker price?
A net price is the price you will actually pay for the college while sticker price is an estimate before aid and other deductions are applied.
Name that Loan Repayment Method:
Payments are lower at first and then increase. Payment amounts are designed to ensure your loans are paid off within 10 years.
Graduated
What is the difference between a sticker price and a net price?
A net price is the actual amount you will pay after financial aid is applied.
Although it’s not a type of financial aid, how can transferring credits from a community college help save you money on college costs?
It reduces amount of credits you’ll have to pay for at your 4-year college
Name that loan:
Loans that are available for only graduate students and parents of undergraduate students
Direct Plus Loans
As a student, which do you have more control over - indirect costs or direct costs? Why?
You can control the indirect costs of college more. Indirect costs include sometimes unnecessary costs like transportation and supplies. Direct costs are those you cannot avoid like tution.
Name that Loan Repayment Method:
Payments are based on how much money you make and your family size. After making a certain number of payments, the rest of your loan balances will be forgiven.
Income Driven Repayment Plan