financial literacy final

Private vs federal loans -

• Private loans from banks/institutions, federal loans from govt

• Fed loans not repaid while in college, lower interest rates, and less strict terms

Subsidized loans - for undergrad students with financial need, govt pays interest

Unsubsidized - for all students, don't need to show financial need, you pay interest

Deferment- delays loan payment + pauses interest buildup. Interest paid by govt(?)

Forbearance - delays loan payment but interest still builds up

Loan consolidation- combine federal loans into one loan to lower monthly payment amt. Pay more interest long term

Sticker price - the advertised price of attending a college

Net price - the actual price of attending after scholarships, grants, direct + indirect costs are applied

SAI - Student Aid Index, a number assigned to students used to determine how much federal aid a student would receive

Direct costs - expenses tied directly to college- tuition, housing, meal plan, etc.

Indirect costs - expenses not tied directly to the college- books, supplies, room, transportation, personal expenses

Grant - applied money that goes towards tuition given based on financial need, rather than scholarships which are merit-based. Ex. Pell Grant