Paying for College

Which of the following is TRUE about federal and private student loans?

• Private loans may be subsidized; federal ones are not

• Both types offer the same repayment plans

• Private loans always offer fixed interest rates

• Fed. loans don't have prepayment penalties; private ones may

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

1. Which of the following is NOT a standard component of a college essay structure?

• Topic sentence

• Body paragraphs

• Reference page

• Introduction

Which is TRUE about the FAFSA?

• You only need to file the FAFSA 1x in your college career

• Your parents must earn below a set amount for you to apply

• You need to file it at the start of every quarter/semester

• There is no cost to file the FAFSA

What is a benefit of going to college and having a college degree?

• Lower lifetime earnings

• Lower interest rates on future loans

• Expanded professional and social netowrk

• Guaranteed starting salary of $50,000 after graduation

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 the Student Aid Index (SAI)?

• It's the cost of filing the FAFSA

• It's how much you & your family are expected to pay for college

• It's another term for "net price"

• It's how much your parents must contribute towards college

What can happen if you don't make payments towards your student loans?

• You may lose your car or home

• Your loan balance may become due in full, but no interest

• You may lose your car or home

• Your credit score may suffer

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

• You will have a larger monthly pyament

• You will have a smaller monthly payment

• You will pay less in interest

• You will pay the same amount in interest

How can you lower the total amount you in pay in student loans?

• Choose a repayment plan with a longer term

• Accept private loans first, then federal ones

• Make interest payments during your grace period

• Accept loans with variable interest rates, not fixed ones