Chapter 5 – Personal Finance – Flashcards
Unlock all answers in this set
Unlock answersquestion
Grants
answer
Federal & state governments offer grants that are usually need-based. The FAFSA will determine which grants you qualify for. Grants are free money!
question
Scholarships
answer
A merit-based form of financial aid that does not need to be repaid; usually offered on the basis of academic,athletic,or other achievements
question
Work Study
answer
A variety of hourly positions provided by your school that may pay you directly or pay toward your tuition bill.
question
Loans
answer
You should always avoid debt, including student loans. They are not free money like a grant or scholarship. You must pay the money pay with interest.
question
Mentorship
answer
A developmental partnership through which one person shares knowledge,skills,and perspective to foster the personal and professional growth of someone else.
question
Associate's Degree
answer
An undergraduate academic degree awarded by colleges upon completion of a course of study lasting 2 years
question
FAFSA
answer
A form that is completed annually by current prospective college students to determine their eligibility for financial aid
question
"Good Debt"
answer
A money myth that portrays student loans as the only financial option when it comes to funding one's college education
question
Trade School
answer
A type of higher learning school that focuses on job skill training for specific career fields rather than academics in liberal arts
question
Our culture thinks student loan debt is normal and that it's an acceptable way to pay for college.
answer
True
question
A 4-year degree is necessary regardless of what career you're pursuing.
answer
False
question
The total estimated student loan debt outstanding (unpaid) in the U.S.
answer
$1 Trillion
question
What is not a good option when it comes to paying for your education?
answer
Asking your parents to take out a loan
question
What are some ways you can invest in yourself?
answer
Find a mentor Read books Surround yourself with people who have similar goals and ambitions as you
question
Explain how you can get an education debt free after high school.
answer
It's possible to cash-flow your college education if you save now,plan ahead,get good grades,take the ACT/SAT several times,shop around,apply for financial aid (don't accept loans),get a part-time job,work a lot and save during summer months,have an emergency fund,live on a zero-based budget,consider attending a community college close to home for the first 2 years.
question
Based on what you've learned, do you believe it is realistic to graduate debt free? Why or why not?
answer
Answers will vary
question
Write down 3 reasons why you should avoid student loans.
answer
Answers will vary, but might include: repayment can take 10 years or more, being in debt limits your choices and possibilities, many borrowers fall behind and even default on their student loan payments, many students drop out due to mounting debt and financial problems-and still have to pay back their loans.
question
Select one of the student stories in the chapter (section 1 or 2) and describe the effect student loan debt had on that person's life.
answer
Answers will vary
question
What excites you most about life after high school?
answer
Answers will vary
