013 - Paying for College

FAFSA_Process.pdf - Google Drive

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Open Ended

Out of state schools are often significantly more expensive than in-state schools. Do you feel like attending school out of state is worth the extra expense? Why or Why Not?

Open Ended

How does the salary you will earn after graduating college factor into how much you should take out in student loans?

Open Ended

In general, do you think taking out student loans is a good thing or a bad thing?

Explain your reasoning.

Multiple Choice

What does it mean when a loan is described as 'subsidized'?

• The federal government pays the interest while you're in school at least halftime.

• Interest starts accumulating immediately.

• The loan is available only to graduate students.

• The loan is offered to parents of dependent undergrads.

Multiple Choice

Which type of federal loan accrues interest immediately after it is taken out?

• Unsubsidized Direct Loans

• None of the above

• Direct Plus Loans

• Subsidized Direct Loans

Multiple Choice

Who can receive Direct Plus Loans?

• Parents of graduate students

• Anyone who applies

• Graduate and professional students as well as parents of dependent undergrads

• Undergraduate students only

Multiple Choice

Why is it advised to never borrow more than what you need for federal student loans?

• To avoid lifestyle inflation

• To minimize the amount of interest paid over time

• Because it's illegal to do so

• Federal loans cannot be used for school expenses

Multiple Choice

Which repayment plan ensures you'll pay off your loan within 10 years?

• Income-Contingent Repayment Plan

• Graduated repayment plan

• Standard repayment plan

• Income-driven repayment plan

Multiple Choice

What does the graduated repayment plan initially offer?

• Higher payments that decrease over time

• A fixed monthly payment

• Lower monthly payments that increase over time

• Payments based on income

Multiple Choice

What happens if you don't pay off your loan within 20 or 25 years under an income-driven plan?

• The loan amount doubles

• You must switch to a standard repayment plan

• The interest rate increases

• The remaining balance is forgiven

Multiple Choice

How can you receive a .25% interest rate deduction on your loan?

• By consolidating your loans

• By choosing a graduated repayment plan

• By enrolling in automatic debit

• By paying off the loan early

Multiple Choice

What does student loan consolidation do?

• Reduces the interest rate of existing loans

• Combines all loans into one with new terms

• Extends the repayment period of each loan individually

• Increases the total number of loans

Multiple Choice

Who might consider consolidating their student loans?

• Borrowers needing a lower monthly payment

• Borrowers who have paid off their loans

• Borrowers with a single loan

• Borrowers with no federal student loans

Multiple Choice

What is a pro of consolidating student loans?

• Shorter repayment period

• Higher interest rates

• Lower monthly payments

• Multiple monthly payments

Multiple Choice

What is a con of consolidating student loans?

• Loss of certain federal loan benefits

• Shorter repayment period

• Lower interest rates

• Fewer loans to manage

Multiple Choice

Can federal and private student loans be consolidated together?

• Yes, without any restrictions

• No, they cannot be combined into one loan

• No, unless it is done through a federal program

• Yes, but only with special permission

Multiple Choice

What does deferment of a student loan allow?

• Pauses repayment of the loan principal and interest may be paid by the government

• Increases the interest rate on the loan

• Decreases the total amount of loan to be repaid

• Automatically forgives the loan after a certain period

Multiple Choice

What is the difference between deferment and forbearance?

• Forbearance increases the loan interest rate

• Deferment requires a payment fee

• Forbearance only pauses the repayment of the principal

• Deferment is only available for private student loans

Multiple Choice

Which of the following is a way to qualify for deferment or forbearance?

• Refinancing the student loan

• Unemployment or facing major economic hardship

• Purchasing a new car

• Having a high GPA