Financing Higher Education Vocab

What has the biggest impact on whether a 4-year university is affordable?

• The location of the university

• The amount of financial aid that the university offers

• The size of the university

• The number of programs offered

Why can a 529 plan help you save more money than a traditional savings account?

• It offers higher interest rates

• It is tax-free

• It has no withdrawal limits

• It is government-backed

Cutting down costs by earning an associate's degree first and then transferring to a four-year college or university can be done by going to what type of higher education institution?

• A private university

• A local community college

• An online university

• A technical school

Earning a degree can be expensive, but which example shows why it might be worth it?

• Individuals with a bachelor's degree typically earn a higher annual salary than those without one

• Individuals with a bachelor's degree have more vacation time

• Individuals with a bachelor's degree work fewer hours

• Individuals with a bachelor's degree have more job security

What type of federal funding is free money, but is based on financial need only?

• Student loans

• Federal grants

• Work-study programs

• Scholarships

Textbooks, transportation, and room and board are all considered what?

• Optional expenses

• Additional costs for attending a college or university

• Covered by tuition

• Unnecessary expenses

Living at home could save you money while enrolled in post-secondary school or training because?

• It reduces costs of room and board

• It provides more study time

• It offers better networking opportunities

• It allows for more flexible class schedules

What is FAFSA (Free Application for Federal Student Aid)?

• A scholarship application

• A form completed by current and prospective college students to determine their eligibility for student financial aid

• A student loan application

• A college admission form

What is a subsidized loan?

• A loan where interest accrues while the student is in school

• A loan on which the government pays the interest while the student is in school

• A loan that does not require repayment

• A loan with a fixed interest rate

What is a work-study program?

• A program that provides part-time employment to help students earn money to pay for college expenses

• A program that offers free tuition

• A program that guarantees job placement after graduation

• A program that provides full-time employment