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Strand 5 - College
Financial Lit. P7
Term | Definition |
---|---|
Scholarships | These are monetary awards given to students based on academic, athletic, or other achievements. They don't need to be repaid. |
Grants | Like scholarships, grants are forms of financial aid that don't need to be repaid. They are typically based on financial need. |
Work Study | These programs allow students to work part-time, often on campus, to help pay for college expenses. |
Loans | These are borrowed funds that must be repaid with interest. They can come from the federal government or private lenders. |
Tuition Reimbursement | Some employers offer tuition reimbursement as a part of their benefits package. |
Military Service | The GI Bill provides education benefits to service members and veterans. |
529 | A tax-advantaged savings plan designed to encourage saving for future education costs. |
Debt-to-Income | All your monthly debt payments are divided by your gross monthly income. |
28% Rule | Maximum monthly house payment (including principal, interest, and taxes) should be less than 28% of your monthly income. |
Loan-to-Value Ratios | A measure comparing the amount of your mortgage with the appraised value of the property. |
Amortization | Paying off a debt over time in equal installments. |