EverFi – Module 5 Higher Education – Flashcards
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Earning Potential
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The more money you invest in higher education = higher pay in the workforce
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Scholarships
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Students must apply for these funds and they do not have to be repaid. Awards are based on merit, financial need and/or combination of the two.
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FAFSA
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Free Application for Federal Sudent Aid - Main form used to apply for federal education grants and loans.
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Unsubsidized Loans
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Type of federal student loan in which the government does not pay the interest while student is in school.
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Subsidized Loans
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Type of federal student loan in which the government pays the interest that accrues while student is in school.
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Stafford Loan
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Most common type of federal loan awarded. Based on limits that are set for an individual loan as well financial need.
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Private Student Loans
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Financed by private companies rather than government. Since these interest rates and fees aren't capped by government, they cost more.
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Perkins Loan
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Another common federal student loan. These loans have a set 5% interest rate and a 10 year repayment period.
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Repayment Period
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Amount of time given to an individual to pay back money lent.
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Grace Period
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Amount of time you have to pay back the balance of loan before it starts accruing interest.
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Grants
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Given to students to help pay for education and do NOT have to be repaid. Similar to scholarships.
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Associate Degree
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A degree granted after two years of study, often by a community or junior college.
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Bachelor's degree
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A degree awarded by a college or university for completing undergraduate studies. Usually 4 years.
