CCFE Unit 2

what are the three primary types of higher edu. financial aid?

money you don’t have to repay, low-cost federal loans, high cost consumer loans

what are three types of money you don’t repay?

grants, scholarships, work-study

what are four characteristics of federal financial aid?

low & fixed interest rates, generous payment plans, no credit checks, no prepayment penalties

list different loan types from low interest to high interest

direct subsidized stafford loans, direct unsubsidized loans, PLUS loans

what is a direct subsidized stafford loan?

need based loan, government pays interest while borrower is in school/during grace period

what is a direct unsubsidized loan?

non-need based, borrower responsible for all costs

what is a PLUS loan?

offered to graduate students and parents of undergrad students, borrower pays all interest

what four things does FAFSA do?

estimates how much federal financial aid one should receive, determines what types of aid you qualify for, applies to many post-secondary institutions, used by states and these institutions to determine aid

what do you need to have/be to receive federal student aid?

a U.S. citizen, a high school grad, enrolled/accepted into eligible post-secondary program, sign FAFSA saying that you have not failed to pay a loan, maintained academic progress

if you find yourself in debt, what are your three options?

defer: extend grace period, consolidate: lower monthly payment but longer payment plan, renegotiate: choose from different payment options