Student Loan Review

You’ll need a budget once you get to college, so that you aren’t overspending each month. Which piece of advice is MOST useful?

• Have a conversation with your parent(s) beforehand, so you understand who will pay for which monthly expenses

• Budget $25/month for everything not included in your financial aid package, such as off-campus dining, social events, etc.

• Apply for a private bank loan to cover all your unexpected expenses

• The summer before college, save an emergency fund of at least $400 to cover you for the year

You will find each of the following pieces of information on your student Aid Report (SAR) except...

• a record of the answers you submitted on your FAFSA.

• your Expected Family Contribution (EFC)

• your eligibility for federal student aid

• a record of all scholarships you have applied for

As you make decisions during college, you should focus on…

• Minimizing your student loan debt at all costs

• Having fun, because you’re only in college once

• Focusing entirely on your studies to maximize your GPA

• Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college

Each of the following organizations award grants to college students EXCEPT…

• the federal government

• colleges

• private companies

• FAFSA

Keith's tuition, room & board, and fees for freshman year total $26,000. Using scholarships, grants, and Federal student loans, his financial aid package is $26,500. What option below is both realistic and financially responsible?

• Keith should use the remaining $500 to cover all other expenses during freshman year

• Keith should take out a private loan and limit himself to $8000 in other expenses freshman year

• Keith should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses

• Keith should not choose this college because he cannot afford it

As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. What does this mean?

• You can expect to receive $10,000 in grants from the federal government to pay for college

• You should only apply to schools that cost $10,000 or less

• You can expect to receive $10,000 in loans from the federal government to pay for college

• The government expects that your family can contribute about $10,000 to the cost of your education

Which of the following statements about applying for grants and scholarships is FALSE?

• Colleges often offer merit-based (rewarding your accomplishments) and need-based (depending on your financial situation) scholarships

• While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored funds

• You should not have to pay money or provide sensitive information, such as your SSN, when applying for scholarships

• While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for

Typically, when should you first file the FAFSA?

• After you finish freshman year of high school

• October or November of your last year of high school

• After you recieve your Student Aid Report

• Once you are ready to start repaying your student Loans

How much does it cost to file the FAFSA?

• Nothing - its free

• It is free the first time you file, but costs $9.99 a year thereafter

• $50

• It is 2% of your total loan tuition

Fred is comparing different financial aid award letters he has received. He notices that some of the letters do not contain sufficient information for him to determine the net price for that school. What is the BEST course of action that Fred can take?

• Nothing - Fred can assume that he will receive the information he needs in future mail/email from the college.

• Fred should contact the financial aid office at each school to ask for the missing information.

• Fred should talk to the guidance counselor at his high school to get the most updated information for each college.

• Fred should do research online to find the missing information.