Fundamentals Lesson 7 Flashcards
Expected Family Contribution:
Developed by:
Based on:
Formula:
Congress
Size of family, number of family in college at the same time, income, assets, unusual financial burdens
Financial need = tuition/cost of attendance - EFC
A student is considered independent if:
23 Married Masters or doctorate Legal dependents Veteran of US armed forces
Federal Pell Grant:
Needs based, dependent on EFC, only for undergrad
Stanford Loan (Federal Direct Loan):
Primary type of financial aid US dept of education Repayment after 6 month grace period Subsidized: need based Unsubsidized: not need based
Subsidized vs Unsubsidized
Subsidized interest paid by govt while undergrad in school
Unsubsidized interest accrues when funds are dispersed
Parent Loans for Undergraduate Students (PLUS)
For parents
Not need based
Unsubsidized
Grad PLUS for Graduate Students (PLUS Direct)
Dependent on student credit score
Max is cost-other financial assistance
6 month grace period
Unsubsidized
Federal Perkins Loan Program
Expired September 2017
Exceptionally low EFC (need based)
Federal Supplemental Education Opportunity Grant (FSEOG)
Very lord EFC
Income Based Repayment
10-15% discretionary income
Forgiveness after 25 years (taxable)
For Stafford & most federal loans
Pay As You Earn (PAYE)
For high debt-to-income ratio
10% discretionary income
Remaining forgiven after 20 years
Only Stafford & PLUS to Grad Students
Revised Pay As You Earn (REPAYE)
10%
Remaining forgiven after 20 years
Only Stafford & PLUS to Grad Students
Graduated Repayment
10 years
Start lower, increase every 2 years
More interest that standard
Extended Repayment
Loan balance over $30,000
Fixed or graduated
Payable over 25 years
Income Contingent Repayment
20% discretionary income or fixed over 12 years
Loan balances forgiven after 25 years