Presentation on theme: "FAFSA Free Application for Federal Student Aid The main form students use to apply for Federal education grants and loans."— Presentation transcript:
FAFSA Free Application for Federal Student Aid The main form students use to apply for Federal education grants and loans
FAFSA The amount of money a student is given or loaned depends on: Family income Marital status The school you are planning on going to
Federal student loans These loans are offered directly to students by the government Interest rates are lower that interest rates on other types of loans. Federal Student loans are awarded based on Financial need.
Grants and Scholarships Are given to students to help pay for their education and do not have to be repaid. Student must apply for Grants and Scholarships.
Grants and Scholarships Schools and organizations award Grants and Scholarships based on: Merit Financial need both
Private Student Loans Financed by private companies rather than the government Private loans usually cost more than federal loans
Private Student Loans Most people apply for Private Student loans when their education cost more than: Their federal student loans Grants Scholarships And work study Can cover
Bad Debt Debt that is used to pay for something that will lose value Examples of Bad Debt TV Car
To lessen the value or price of something To increase the value or price of something Depreciate and Appreciate
Good Debt Examples Higher Education House
Five steps to the Student Loan life cycle Research Apply Select Study Repay
Three types of Federal Loans Stafford Perkins Plus What type of Federal loan is for parents and not students? Plus
Federal Student Loans Federal Student loans do not require ___________ ______________ or __________. Credit check collateral
Federal Student Loans The___________ ______________ __________ ____________ by the Federal Reserve Bank Federal Funds Interest Rate
Stafford Loans Most common type of student loan. They are available to undergraduate and graduate students
Features of a Stafford Loan You are not expected to make payments while in school You have a six month grace period when you finish school before you have to start making payments Interest rate stays the same, it will not change.
Perkins Loans Have a set 5% interest rate and a 10 year repayment period Intended for students with exceptional financial need.
Private Loans Better than a credit card You do not have to make payments until you are done with school Advertise low rates, but they are actually based on your credit score. You do not know your rate till you apply You should research the range of rates and fees before you apply
Cost of Attendance Tuition and Fees The amount you can expect from grants and scholarships Room and Board Cost of living in the area
Dates What is the earliest date you can send in your FAFSA application? January 1
Federal Student Loan Your Federal Student loan will have a _________ interest rate Fixed
Private Loans The more you accept in private loans, the less federal aid you qualify for. Be careful, this goes for some scholarships too.
Subsidized Loans The government pays the interest on these loans while you are in school Subsidized loans are awarded to students with more financial need.
Unsubsidized Loans Interest is not paid by the government. Students do not have to make payments on the interest while in school, but may do so if they want.
Cost of Attendance Tuition and Fees Books and Supplies Housing and meal plans Personal Expenses
Promissory Notes A Master Promissory Note is a ____________ contract
Repayment Schedule What you owe each month When payments are due How long it will take you to pay off your loan in full
Grace Period (for student loans) Usually begins when you leave school, and begins 6 months after you leave Allows you time to find a job.
Financial Hardship Request a lower monthly payment Request a forbearance
Consolidation Another company pays the full amount of your loan You then repay that company You only have one loan payment to make Your interest rate will stay the same, but your monthly payment will decrease Your grace period ends
Deferment Your lender allows you to stop making payments if you go back for a higher degree.