Chapter 13

Question 1

• FAFSA

Answer 1

• application used to determine financial aid eligibility for students

Question 2

• EFC or estimated family contribution –

Answer 2

amount of money estimated by the government that a family can contribute to the educational costs incurred by family member attending college

Question 3

• Federal Perkins loan

Answer 3

– low-interest loan awarded to exceptionally needy students

Question 4

• Federal subsidized Stafford loan –

Answer 4

available to students enrolled at least half-time has a fixed interest rate.

Question 5

• Federal unsubsidized Stafford loan –

Answer 5

loan not based on need that has the same interest rate as the Federal Subsidized Stafford Loan.

Question 6

• Federal loans

Answer 6

– have fixed interest rates that won’t go higher than 7%

Question 7

• Private loans

Answer 7

– variable interest rates that are very high starting at 15%

Question 8

• Merit-based scholarships

Answer 8

– awarded on the basis of performance or achievement

Question 9

• Need-based scholarships

Answer 9

– awarded on the basis of financial need.

Question 10

• Basic needs or essential necessities

Answer 10

– are fixed expenses because you can’t live without them.

Question 11

• Incidental or extras

Answer 11

– are flexible expenses because there your optional or discretionary

Question 12

• Emergency expenses

Answer 12

– unpredicted, unforeseen, or unexpected expenditures costs.