6/1 FA 9.5 Grants, Scholarships, and Loans

Instructions

OBJECTIVES & STANDARDS
Math Objectives
Use an interest formula to calculate student loan debt after 4 years of college
Common Core Math Standards
Link to all CCSS Math
CCSS.PRACTICE.MP7
Personal Finance Objectives
Understand how grants and scholarships are awarded and why they are superior forms of student aid
Search for grants or scholarships they might personally be eligible for
Describe why federal direct loans to undergraduates are superior to private student loans and parent PLUS loans
National Standards for Personal Financial Education
Managing Credit
4a: Describe the different sources of funding for postsecondary education
5a: Compare federal and private student loans based on interest rates, repayment rules, and other characteristics
5c: Estimate total interest on various student loans based on interest rates and repayment plans
DISTRIBUTION & PLANNING
Distribute to students
Student Activity Packet

QUESTION OF THE DAY: What percent of students receive scholarships or grants for college?
Write your answer to the question below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions below. You may assume there are 30 days in a month for this saving example.

1

What percent of students receive scholarships or grants for college?

1

Would you choose a college just based on how many scholarships or how much grant aid you receive from them? Why or why not?

INFOGRAPHIC: Order of Operations to Pay for College
As you’ve previously learned, a necessary step in the paying for college process is completing the FAFSA, which will determine your eligibility for need-based aid. Once that application is completed, you’ll want to understand the many ways to pay for college, which ones are accessible to you, and in which order you should use them.

9

1

Which of these ways to pay are reliant on FAFSA completion?

Suggestions 3, 6, and 7 revolve around you spending some of your time as a college student also working. Paying costs as they occur, rather than paying them later in the form of interest-bearing loans, seems like a win.

4

a. Name at least 2 other potential benefits of working while you're enrolled in college.
b. But what might be the drawbacks of working while also a college student?

ARTICLE: College Grants vs. Scholarships vs. Loans
Before we dive in deeper with a podcast, let’s do some categorizing of three of the main types of aid – grants, scholarships, and loans. Read this article, but you can stop when you get to the section on How to Apply. Use what you learn to complete the chart.

3

6

Who Gives out this type of aid?
Grants _______ 
Scholarships_______ 
Loans_______ 

PODCAST: Paying for College: What to Know Before You Go
In the next three resources, we’ll listen to portions of a much longer podcast. In this first section, please listen from 14:54 - 18:07, where you’ll hear a bit more about grants and scholarships.
📷
TEACHER TIP: A transcript of this podcast is available from NPR.

1

Regarding Pell Grants, the podcast says “you can essentially put it in a backpack and carry it to whatever school you want to.” What do they mean by this?

1

Answer true or false for each of the following:

1

PODCAST: Paying for College: What to Know Before You Go
Next, we’ll resume the podcast and listen from 18:07 - 20:25, which discusses both federal and private loans. You may want to preview the questions before pushing play so that you know what details to listen for.

1

If subsidized loans mean the government doesn’t charge you interest until you graduate, what do you think it means if a loan is unsubsidized?

1

Multiple “experts” on the podcast agree that $31,000 is a good upward limit for the amount of undergrad loans to take out. Explain why they chose that number.

1

Marti hears that she can either get loans from the federal government or loans from a private bank, and she’s thinking private banks are a better option because banks lend people money all the time – they’re experts! Explain why you agree or disagree with Marti.

Math Connection:  Desmos 

20

Complete the Desmos and tell me something you learned from this activity.

1

Why are grants and scholarships the first type of college funding an undergraduate should use?
Grants and scholarships are typically worth the largest dollar amounts
Grants and scholarships all come from the federal government
Grants and scholarships are “free money” that won’t need to be repaid
Grants and scholarships are awarded equally to all high school graduates

1

Which statement best describes the difference between merit-based and need-based awards?
Merit-based awards come from the individual college, while need-based awards come from the state government
Merit-based awards require the FAFSA, while need-based awards do not
Merit-based awards are much easier to get than need-based awards
Merit-based awards are given for achievements, while need-based awards are given based on income

1

How much student loan debt you graduate with is dependent on each of these factors EXCEPT…
Whether loans are subsidized or unsubsidized
How much you borrow each year of college
What interest rate your loans have
The starting salary of your first job

20

ACTIVITY: Find Some Aid for You Bonus Points +20
It’s time to head out onto the internet and try to find a financial aid option for you. First, choose one of these assignment options:
Do a web search for an as-local-as-possible scholarship you could apply to
Choose the college you’d most love to attend and read on their website about their scholarship and/or grant programs
Research great options available at the state level
As you research and learn more, record answers to as many of the following questions as possible:
How much money is available?
How many of the awards are available?
Who is eligible, and do you meet those requirements?
What is the application process, and when is the deadline?
Record answers to those questions and other pertinent details here:

	Yes, I'll have access	Not Sure	No, I will not have access
1. Scholarships & grants
2. Your savings (as a student)
3. Your earnings (as a student)
4. Parents savings for college
5. Parents current income
6. Fellowships & assistantships
7. Aid through school work-related programs
8. Federal student loans
9. Private student loans

	Yes, I'll have access	Not Sure	No, I will not have access
1. Scholarships & grants
2. Your savings (as a student)
3. Your earnings (as a student)
4. Parents savings for college
5. Parents current income
6. Fellowships & assistantships
7. Aid through school work-related programs
8. Federal student loans
9. Private student loans

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

6/1 FA 9.5 Grants, Scholarships, and Loans

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

OBJECTIVES & STANDARDS

DISTRIBUTION & PLANNING

QUESTION OF THE DAY: What percent of students receive scholarships or grants for college?

What percent of students receive scholarships or grants for college?

What percent of students receive scholarships or grants for college?

Would you choose a college just based on how many scholarships or how much grant aid you receive from them? Why or why not?

INFOGRAPHIC: Order of Operations to Pay for College

Which of these ways to pay are reliant on FAFSA completion?

a. Name at least 2 other potential benefits of working while you're enrolled in college.b. But what might be the drawbacks of working while also a college student?

ARTICLE: College Grants vs. Scholarships vs. Loans

PODCAST: Paying for College: What to Know Before You Go

Regarding Pell Grants, the podcast says “you can essentially put it in a backpack and carry it to whatever school you want to.” What do they mean by this?

PODCAST: Paying for College: What to Know Before You Go

If subsidized loans mean the government doesn’t charge you interest until you graduate, what do you think it means if a loan is unsubsidized?

Multiple “experts” on the podcast agree that $31,000 is a good upward limit for the amount of undergrad loans to take out. Explain why they chose that number.

Marti hears that she can either get loans from the federal government or loans from a private bank, and she’s thinking private banks are a better option because banks lend people money all the time – they’re experts! Explain why you agree or disagree with Marti.

Math Connection: Desmos

Complete the Desmos and tell me something you learned from this activity.

How much student loan debt you graduate with is dependent on each of these factors EXCEPT…Whether loans are subsidized or unsubsidizedHow much you borrow each year of collegeWhat interest rate your loans haveThe starting salary of your first job

ACTIVITY: Find Some Aid for You **Bonus Points +20**

QUESTION OF THE DAY: What percent of students receive scholarships or grants for college?

What percent of students receive scholarships or grants for college?

What percent of students receive scholarships or grants for college?

Would you choose a college just based on how many scholarships or how much grant aid you receive from them? Why or why not?

INFOGRAPHIC: Order of Operations to Pay for College

Which of these ways to pay are reliant on FAFSA completion?

a. Name at least 2 other potential benefits of working while you're enrolled in college.b. But what might be the drawbacks of working while also a college student?

ARTICLE: College Grants vs. Scholarships vs. Loans

Does the Money need to be repaid?

Is the money based on need or merrit?

PODCAST: Paying for College: What to Know Before You Go

Regarding Pell Grants, the podcast says “you can essentially put it in a backpack and carry it to whatever school you want to.” What do they mean by this?

Explain how it’s possible that an expensive, private college can end up being a cheaper option than a public school.

It’s possible for a student to have both grants and scholarships

It’s possible to use multiple grants to pay for college

It’s possible to use multiple scholarships to pay for college

The best strategy for scholarships is to focus on the large, high dollar national awards

PODCAST: Paying for College: What to Know Before You Go

If subsidized loans mean the government doesn’t charge you interest until you graduate, what do you think it means if a loan is unsubsidized?

Multiple “experts” on the podcast agree that $31,000 is a good upward limit for the amount of undergrad loans to take out. Explain why they chose that number.

Marti hears that she can either get loans from the federal government or loans from a private bank, and she’s thinking private banks are a better option because banks lend people money all the time – they’re experts! Explain why you agree or disagree with Marti.

Math Connection: Desmos

Complete the Desmos and tell me something you learned from this activity.

How much student loan debt you graduate with is dependent on each of these factors EXCEPT…Whether loans are subsidized or unsubsidizedHow much you borrow each year of collegeWhat interest rate your loans haveThe starting salary of your first job

ACTIVITY: Find Some Aid for You **Bonus Points +20**

Does the Money need to be repaid?

Is the money based on need or merrit?

Explain how it’s possible that an expensive, private college can end up being a cheaper option than a public school.

It’s possible for a student to have both grants and scholarships

It’s possible to use multiple grants to pay for college

It’s possible to use multiple scholarships to pay for college

The best strategy for scholarships is to focus on the large, high dollar national awards

a. Name at least 2 other potential benefits of working while you're enrolled in college.
b. But what might be the drawbacks of working while also a college student?

How much student loan debt you graduate with is dependent on each of these factors EXCEPT…
Whether loans are subsidized or unsubsidized
How much you borrow each year of college
What interest rate your loans have
The starting salary of your first job

ACTIVITY: Find Some Aid for You Bonus Points +20

a. Name at least 2 other potential benefits of working while you're enrolled in college.
b. But what might be the drawbacks of working while also a college student?

How much student loan debt you graduate with is dependent on each of these factors EXCEPT…
Whether loans are subsidized or unsubsidized
How much you borrow each year of college
What interest rate your loans have
The starting salary of your first job

ACTIVITY: Find Some Aid for You Bonus Points +20