#1
What is the average annual cost of tuition and fees at a public four-year institution in the United States for the 2020-2021 academic year?
$10,000 - $15,000
ExplanationTypical annual expenses for public four-year institutions.
#2
What is the FAFSA?
A federal financial aid application
ExplanationStandard application for federal financial aid.
#3
What is the role of a financial aid counselor?
To provide guidance on financial aid options and applications
ExplanationAssistance in navigating financial aid processes.
#4
What is the 'Expected Family Contribution' (EFC) used for?
Calculating the amount a family is expected to pay for college
ExplanationDetermining family's financial responsibility for college costs.
#5
What is the primary purpose of a 529 college savings plan?
To save money for higher education expenses
ExplanationSavings tool specifically for education costs.
#6
What is the significance of a '529 plan' in college savings?
It allows tax-free growth of investments for educational expenses
ExplanationTax benefits for education savings growth.
#7
What is the '529 plan' in the context of higher education savings?
A tax-advantaged savings plan
ExplanationA plan offering tax benefits for education savings.
#8
What is the difference between subsidized and unsubsidized federal student loans?
Subsidized loans don't accrue interest while in school
ExplanationInterest-free loans for students with financial need.
#9
What is the difference between a grant and a scholarship?
Grants are need-based, scholarships are merit-based
ExplanationGrants based on financial need, scholarships on merit.
#10
What is the 'cost of attendance' (COA) in the context of college financial aid?
The estimated total cost of attending a particular college for one academic year
ExplanationTotal anticipated expenses for a year of college.
#11
What is the difference between a subsidized and an unsubsidized loan?
Subsidized loans don't accrue interest while in school
ExplanationInterest-free loans based on financial need.
#12
What is the 'grace period' for student loans?
The time between graduating and the first loan payment
ExplanationPeriod before loan repayment begins.
#13
What is the 'expected family contribution' (EFC) in the context of financial aid?
The amount a family is expected to pay toward college expenses
ExplanationFamily's expected financial responsibility for college.
#14
What is the significance of the Free Application for Federal Student Aid (FAFSA) deadline?
It determines eligibility for all federal financial aid programs
ExplanationDeadline for federal financial aid eligibility.
#15
What are the consequences of defaulting on student loans?
Lower credit score, wage garnishment, and loss of eligibility for future financial aid
ExplanationNegative impacts of failing to repay loans.
#16
What is the concept of 'financial aid packaging'?
Putting together various forms of financial aid to meet a student's need
ExplanationCustomizing aid options for individual student needs.
#17
What does the term 'net price' refer to in the context of college expenses?
The cost of attendance after subtracting scholarships and grants
ExplanationActual cost after deducting aid.
#18
What is the role of a financial aid appeal?
To dispute a college's decision regarding financial aid
ExplanationChallenging college's aid decisions.