Paying For College

Question 1

Net Price

Answer 1

Actual cost a student pays to attend a school, calculated as sticker price minus grants & scholarships

Question 2

Sticker Price

Answer 2

Total expense of going to college, may include tuition, room & board, fees, books & supplies, transportation, health insurance, etc. AKA Cost of Attendance or a school’s published price.

Question 3

Tuition

Answer 3

Sticker price for the academic portion of college expenses; does not include room & board, textbooks, or other fees

Question 4

Wants

Answer 4

Expenses that help you live more comfortably

Question 5

Room and Board

Answer 5

Cost of housing & food while at college

Question 6

Needs

Answer 6

Expenses that are essential for you to be able to live & function

Question 7

Grants

Answer 7

Student aid coming from state or federal government, the school, or from private sources that does not need to be repaid

Question 8

Direct Costs

Answer 8

Costs you pay where the money goes straight to the college

Question 9

Indirect Costs

Answer 9

Costs you pay for things like your living style. Money that doesn’t go to a college

Question 10

Free Application For Federal Student Aid (FAFSA)

Answer 10

Free online application that current or prospective college students can submit each year to determine their eligibility for financial aid

Question 11

Student Aid Index (SAI)

Answer 11

A numerical value that colleges use to determine a student’s financial need for federal aid

Question 12

Scholarships

Answer 12

Type of aid primarily awarded for academic merit or something you have accomplished that does not need to be repaid

Question 13

Financial Student Aid

Answer 13

Largest form of student aid in country; federal aid programs come in the form of government grants, loans, & work-study opportunities

Question 14

Work-Study

Answer 14

Federal program that provides part-time jobs for undergraduate & graduate students with financial need, allowing them to earn money to help pay education expenses

Question 15

Direct Plus Loans

Answer 15

Federal loan available to graduate or professional students & eligible parents of dependent undergraduate students to help pay for the student’s education at participating schools

Question 16

Direct Subsidized Loan

Answer 16

Federal student loan available to undergraduate students; federal government pays interest on loan as long as student is in school, at least part-time

Question 17

Direct Unsubsidized Loan

Answer 17

Federal student loan for undergraduate & graduate students; student is responsible for paying interest during time they’re in school, means they must pay that interest while studying or have it rolled into the principal amount of their loan

Question 18

Financial Aid Offer

Answer 18

Total amount of financial aid (federal & nonfederal) a student is offered by a college; designed to help meet student’s education costs

Question 19

Private Student Loan

Answer 19

Non-federal student loan made by bank, credit union, or other entity. It sets terms & conditions for the interest rate, grace period, & length of repayment

Question 20

Consolidation

Answer 20

Combines multiple federal loans into one. Your new interest rate is an average of your prior loans’ rates

Question 21

Refinancing

Answer 21

Replaces your separate loans with a new loan & interest rate

Question 22

Deferment

Answer 22

A process that lets you pause your payment & stops interest for MOST loans

Question 23

Forbearance

Answer 23

A process that lets you pause your payment but interest does accrue