Paying for College

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

How do scholarships and grants differ?

• Scholarships are need-based; grants are merit-based

• Grants are private forms of aid; scholarships are federal

• Grants are need-based; scholarships are merit-based

• They're not different; they are one and the same

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

When looking at a financial aid award letter, which type(s) of aid would you have to pay BACK?

• Federal Pell Grant

• Direct Subsidized Loan

• Merit Scholarship

• Federal Work-Study

Does scholarship money have to be repaid?

• Yes
• No
• Sometimes

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

Which is TRUE about sticker price and net price? (hint: choose 2 correct answers)

• Net price is the published cost of going to a school

• Sticker Price is the published cost of going to a school

• Net price is the sticker price minus scholarships & grants

• Sticker price is the net price minus scholarships & grants