Foundations in Personal Finance: High School Edition (Chapter 5) – Flashcards
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Federal Application for Federal Student Aid (FAFSA)
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a form that is completed annually by current and prospective college students to determine their eligibility for financial aid
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grant
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a form of federal or state financial aid that does not need to be repaid; usually given to students who demonstrate financial need
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scholarship
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a merit-based form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements
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work study
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a program that allows students to work part time while continuing their studies
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What is the fourth Foundation?
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Pay Cash for College
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trade school
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a type of higher learning school that focuses on job skill training for specific career fields rather than academics in liberal arts
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associate's degree
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an undergraduate academic degree awarded by colleges upon completion of a course study lasting two years
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"good debt"
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a money myth that portrays student loans as the only financial option when it comes to funding one's college education
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mentorship
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a developmental partnership through which one person shares knowledge, skills and perspective to foster the personal and professional growth of someone else
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Our culture thinks student loan debt is normal and that it's an acceptable way to pay for college.
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True
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A four-year degree is necessary regardless of what career you're pursuing.
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False
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What is the total estimated student loan debt outstanding (unpaid) in the U.S.?
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$1 trillion
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What is not a good option when it comes to paying for your education?
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asking your parents to take out a loan
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What are ways that you can invest in yourself?
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- find a mentor - read books - surround yourself with people who have similar goals and ambitions as you
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Explain how you can get an education debt free after high school.
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- pay cash for college yourself (or your parents) - apply/get scholarships, grants, of federal aid (FAFSA) - work part or full time - plan ahead
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Write down three reasons why you should avoid student loans.
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- it's debt (ALL debt is bad) - it has interest - hard to pay off (you can go bankrupt, and still have to pay them off)
