Personal Financial Literacy 6-1 Paying for College 101

Why do you think setting aside money in your savings and looking for scholarships is a good “preparation” step before applying for financial aid?

• Both saving money and receiving scholarships can give you a foundation to start from.

• Setting aside money in your savings and looking for scholarships can help you build a strong credit score.

• Everyone is guaranteed financial aid no matter what their overall income is.

• Setting aside money in your savings and looking for scholarships can help you gain access to exclusive discounts and offers.

How much more per week does a college grad earn compared to someone with some college?

• $500 a week or $26,000 a year

• $435 a week or $22,000 a year

• $300 a week or $15,600 a year

• $400 a week or $20,800 a year

Arrange the earning rate from least to greatest according to the educational attainment.

• Master's Degree

• High School Diploma

• Professional Degree

• Bachelor's Degree

• Associate Degree

Arrange the unemployment rate from greatest to least according to the educational attainment.

• Associate Degree

• Bachelor's Degree

• Master's Degree

• High School Diploma

• Professional Degree

Direct costs are paid ​ (a)   to the college ​ (b)   and indirect costs are ​ (c)   not paid directly to the college ​ (d)   .

• directly
• (like tuition, housing, and meal plan)
• other expenses
• (like books, transportation, stuff for your dorm)

You have more control over ​ (a)   (things like transportation and personal expenses) because you can decide how much to spend in these areas, or if you need to spend anything at all. For example, you could choose to go out to eat less and reduce the amount you’re spending on meals. With ​ (b)   , those are more likely to be costs that are out of your control (like tuition).

• indirect costs
• direct costs
• tuition
• residence
• meal plans
• insurance

The ​ (a)    is what is listed by most colleges and universities as the cost of ​ (b)   .

The ​ (c)    is what you actually end up paying to attend that school - typically, the net price is lower than the sticker price due to ​ (d)   you receive in scholarships and ​ (e)   (money that you do not have to pay back.)   

• sticker price
• tuition and fees
• net price
• financial aid
• grants

All of the following are good ways to prepare for paying for college EXCEPT…

• Contributing to a 529 plan

• Building a savings

• Pursuing grants and scholarships

• Taking out student loans

Your friend has chosen what college they’re going to attend and says they want to lower the total amount of money they’ll have to budget for while in school. Which of the following should you tell them to focus on?

• Indirect costs

• Tuition

• Direct costs

• Room and board

Which formula is used to calculate the net price of a college?

• Sticker price + grants and scholarships = net price

• Sticker price + value = net price

• Sticker price – (grants and scholarships) = net price

• Sticker price - value = net price