Honors Financial Literacy: Chapter 7 - Lessons 1 & 2

Vocabulary flashcards covering post-secondary planning, college earnings data, loan repayment mechanics, and methods for reducing education costs from Chapter 7, Lessons 1 and 2.

Higher Earning Potential

The statistical advantage whereby college graduates earn significantly higher lifetime wages and experience lower rates of unemployment over their careers.

Specialized Career Paths

Educational trajectories providing the specific degree credentials and specialized training necessary to practice in fields like medicine, engineering, law, and education.

Personal Growth and Skills

The development of critical thinking, self-reliance, time management, and adaptability fostered through demanding academic and social college environments.

Networking and Connections

The establishment of lifelong professional and personal ties with fellow students, professors, and alumni that unlock future employment and career opportunities.

Gender Wage Gap (Georgetown University Study)

Findings showing median lifetime earnings for high school graduates are $\$1.3\text{M}$ for women vs. $\$1.8\text{M}$ for men, and for master's degree holders are $\$2.8\text{M}$ for women vs. $\$3.9\text{M}$ for men.

Top Bachelor's Majors by Earnings

Undergraduate degree fields yielding the highest median lifetime earnings: Architecture & Engineering ($\$3.8\text{ Million}$), Computers, Math & Statistics ($\$3.6\text{ Million}$), and Business ($\$3.0\text{ Million}$).

Top Occupation Fields

The employment sectors identified as consistently highest-paying across all education levels: Computer & Mathematical, Health Practice, and Architecture & Engineering.

Six Steps Toward Intentionality

A systematic planning framework for post-secondary education: (1) Dream of the Possibilities, (2) Explore Your Options, (3) Consider the Cost, (4) Reduce Your Cost, (5) Build Your College Resumé, and (6) Maximize Your Investment.

Community College Transfer Strategy

A cost-saving path where a student attends a two-year institution (such as CCAC) to fulfill general education requirements or prerequisites before transferring to a four-year institution (such as Duquesne), which ultimately confers the degree.

Prerequisites

Required preliminary courses that must be completed before enrolling in more advanced classes, which students must carefully track when transferring college credits.

CLEP (College-Level Examination Program)

Standardized tests that assess college-level knowledge, enabling students to earn college credit without taking the classes and thereby reducing total tuition expenses.

Loan Repayment Duration Trade-off

The financial reality where extending a repayment term (e.g., from $10$ to $30$ years on a $\$100,000$ loan) lowers monthly payments (from $\$1,213$ to $\$734$) but significantly increases total interest paid (from $\$45,600$ to $\$164,240$).

Student Loan Forgiveness Reality

The disparity between student expectations and outcomes: while about $44\%$ of borrowers anticipate their student loans will be forgiven, fewer than $10\%$ of student loans are actually forgiven or discharged.

Grant

Gift aid based primarily on financial need (family or personal income), funded by federal and state governments or colleges, and typically triggered by filing the FAFSA.

Scholarship

Gift aid awarded based on merit or specific criteria (such as academics, athletics, arts, leadership, or background), funded by private companies, nonprofits, or schools, often requiring separate applications or essays.

FAFSA (Free Application for Federal Student Aid)

The official application required to determine student eligibility for federal, state, and institutional need-based financial aid, including government grants.

Key Scholarship Essay Qualities

Personal attributes recommended for applicants to highlight in scholarship essays: fearlessness, drive, perseverance, discipline, and the ability to follow directions.