Unit 4: Paying for College

While doing online research about the colleges you're considering, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 per month, and we guarantee you'll win a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed?

• Sign up, but use a fake email address in case it's spam

• Sign up, because at $40 per month, it will be a bargain if you win thousands in scholarships

• Don't sign up unless your parent says it's OK to use their credit card for the payments

• Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites

Money awarded to students that does NOT need to be repaid, often based on need

• Loan

• Grant

• Savings

• Work Study

Money awarded to students based on achievement, does NOT have to be repaid

• Grant

• Loan

• Work Study

• Scholarship

Money borrowed that has to be paid back with interest

• Grant

• Loan

• Work Study

• Scholarship

If you select a repayment plan with a longer term for your loans...

• You will have a larger monthly payment

• You will have a smaller monthly payment

• You will pay less in interest

• You will pay the same amount in interest

True or false: some scholarships require students to maintain a certain GPA.

• True
• False

Which of these is a good strategy when taking out student loans?

• Only borrow what you actually really need to.

• Take out as much money as possible so that you don't have to stress about money while in school.

• Only borrow money from banks instead of the government.

• Take out a lot of loans and then declare bankruptcy so that you don't have to pay them back.

All of the following are costs of going to college EXCEPT...

• Tuition and fees

• Room and board

• Textbooks and school supplies

• Scholarships and grants

When does the FAFSA filing period open every year?

• January 1st

• June 1st

• October 1st

• December 1st

Why should you file the FAFSA as early as possible?

• It can help your chances of being accepted into schools

• Aid is given out on a first-come, first-serve basis

• You're guaranteed to get more merit-based scholarships

• You'll get a lower interest rate on federal student loans