unit nine: financial aid

Question 1

Cash grant for academic progress

Answer 1

Scholarship

Question 2

Cash given for need, rather than for academic record

Answer 2

Grant

Question 3

A students cost of attendance at a postsecondary institution includes; tuition and fees; room and board expenses while attending school; allowances for books and supplies (including a reasonable allowance for renting or purchasing a personal computer); transportation; loan fees for student loans (if applicable); dependent care costs; costs related to disability; and other miscellaneous expenses.

Answer 3

Cost of Attendance (COA)

Question 4

Forms become available in December of the senior year. All students applying for any federal financial aid must file this form out as soon as possible after January 1. Analysis of the data on this form will determine eligibility for Pell Grants; Supplemental Educational Opportunity Grants (SEOG); Stafford Loans (subsidized and non-subsidized); Perkins Loans; work study; and other federal and, in some cases, state programs.

Answer 4

FAFSA (Free Application For Federal Student Aid)

Question 5

Separate from the FAFSA, each college may have its own financial aid form which is used to help their financial aid offices determine a student’s eligibility for the institution’s own funds

Answer 5

CSS (College Scholarship Service) Profile TM

Question 6

Properly, the field of specialization of a college undergraduate. The student normally does from one quarter to one third of his or her total undergraduate work in this major field.

Answer 6

Major

Question 7

A selective institution will set stiff requirements in terms of promise and demonstrated academic ability rather than simply in terms of specific courses taken. The degree of selectivity may vary from the college that accepts three out of four of its applicants to one which accepts only one out of eight.

Answer 7

Selective college

Question 8

A 529 plan is a tax advantage led investment plan designed to encourage saving for the future higher education expenses of a designated beneficiary (typically one child or grandchild). The plans are named after Section 529 of the Internal Revenue Code and are administrated by state agencies and organizations.

Answer 8

529 college savings plan

Question 9

A form that can be prepared annually by current and prospective college students (undergraduate and graduate) in the United States to determine their eligibility for student financial aid (including the Pell grants, and work study programs)

Answer 9

Free Application for Federal Student Aid (FAFSA)

Question 10

A financial aid plan used to forecast and teach income and expenses

Answer 10

Budget

Question 11

Use of finances to fulfill and one-time or ongoing obligation; expenses can be fixed or variable

Answer 11

Expense

Question 12

A regular, predictable expense, such as a mortgage payment or rent

Answer 12

Fixed Expense

Question 13

An expense or expense category that is not fixed and can’t be precisely predicted; budget planning is something used to limit or constrain variable expenses

Answer 13

Variable Expense

Question 14

A payment or obligation owed to another person or an institution, such as credit card debt

Answer 14

Debt

Question 15

A fee, often a percentage of principal, paid in exchange for borrowing money; also, funds earned on investments or on interest-bearing accounts

Answer 15

Interest

Question 16

A financial holding that is purchased with the expectation of increased value; investments can be secured or unsecured, and the expected value of return on one’s investment is usually dependent on the degree of risk involved; money put aside for profit

Answer 16

Investment

Question 17

Funds not spent and set aside, often on a regular basis, for later use

Answer 17

Savings

Question 18

Outright gifts of money that are, often times, based upon need. Sometimes, however, they are awarded for academic excellence and promise or for special achievements or abilities.

Answer 18

Scholarships and Grants

Question 19

Significant part of most financial aid packages. They must be repaid, but most often not until after you graduate. Interest rates are competitive with other types of loans. The payback period on college loans varies from two or three years up to 20 years.

Answer 19

Loans

Question 20

A part-time job on campus. For instance, you might work in the library or as a resident adviser, lifeguard or food-service worker. Jobs are arranged through the financial aid office.

Answer 20

Work study

Question 21

interest paid or to be paid both on the principal and on accumulated unpaid interest

Answer 21

Compound Interest

Question 22

interest paid or figured on the original amount of a loan or on the amount of an account

Answer 22

Simple Interest

Question 23

a sum of money that is placed to earn interest, is owed as a debt, or is used as a fund

Answer 23

Principal

Question 24

a mandated retirement system in the United States; originally a part of Roosevelt’s New Deal

Answer 24

Social Security

Question 25

the providing of money or goods with the expectation of payment in the future

Answer 25

Credit

Question 26

a record of your credit history that includes information about your identity, existing credit, public record, and inquiries about you

Answer 26

Credit Report

Question 27

trustworthiness with money based on prior history; a general qualification for borrowing

Answer 27

Creditworthiness

Question 28

Money from the earnings of a company that is distributed to people who have an ownership in that company.

Answer 28

Dividend

Question 29

Income that includes wages, salaries, and tips.

Answer 29

Earned income

Question 30

the amount an employee earns.

Answer 30

Gross pay

Question 31

the amount the employee receives after deductions (aka- take home pay).

Answer 31

Net pay

Question 32

a tax that provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the “FICA” tax.

Answer 32

Social Security tax