AFA Unit 2 Test

Front

What is the FAFSA?

Back

The Free Application for Federal Student Aid, a form used to apply for financial aid for college.

Front

What does consolidation do to your monthly payment?

Back

Consolidation lowers your monthly payment and often means you will pay more in interest over the life of your loan.

Front

What is a grant in the context of financial aid?

Back

Money awarded that does not need to be repaid.

Front

How do you calculate annual income from hourly wage?

Back

Multiply hourly wage by hours worked per week and then by 52 weeks. For example, $12/hour * 25 hours/week * 52 weeks = $15,600.

Front

What is the difference between a loan and a grant?

Back

A loan must be repaid with interest, while a grant does not need to be repaid.

Front

What is the purpose of the FAFSA?

Back

To determine a student's eligibility for financial aid.

Front

What is a work-study program?

Back

A program that allows students to work part-time while attending school to help pay for their education.

Front

What are the benefits of federal student loans compared to private loans?

Back

Federal loans typically have lower interest rates and more flexible repayment options.

Front

What is the significance of understanding your financial aid package?

Back

It helps you know how much aid you are receiving and what you may need to repay.

Front

What is the role of scholarships in financial aid?

Back

Scholarships are funds awarded based on various criteria that do not need to be repaid.