ccfe unit 2

5 examples of reducing total cost of higher education

start saving early, take dual-enrollment or AP courses for free college credit, work part time, evaluate cost attendances for colleges, begin career pathway planning early

3 primary types of higher education financial aid

money you do not have to repay, low-cost federal loans, high-cost consumer loans

federal

we the people

federal student grants

we the people aware students with financial needs (from our taxes) by the students completing the FAFSA

types of federal grants

federal Pell grant, federal supplemental educational opportunity grant, teacher education assistance for college and high education 

types of low-cost financial aid characteristics 

no prepayment penalties, lower/fixed interest rates, no credit checks (except for PLUS loan), generous repayment plans 

PLUS loans

only parents and grad students who receive it (does get credit checks)

lowest to highest interest rate

federal Perkins loan, direct subsidized Stafford loan, direct unsubsidized Stafford loan, PLUS loan

subsidized v unsubsidized

subsidized= we the people pay for your loan and must demonsrate financial need

unsubsidized= interest builds once you take out the loan, borrower is responsible, financial need is not required

private loans / high-cost consumer loans

you pay 100% of the interest- often a higher rate than a federal loan

things needed for FAFSA

identification documents, federal tax info from the previous year, records of untaxed income from previous year, current asset info

defaulting your student loans consequences

loan will be immediately due in full, wages may garnish, lose eligibility for federal aid

defaulted student loan consequences on credit reports

may be denied credit cards, interest rate may rise, denied jobs, unable to obtain items by having to pay more

options for getting out of debt

defer, consolidate, renegotiate repayment terms