Cost and Financial Aid Flashcards

Which of the following costs is typically considered an indirect cost of attending a dental assisting program?

Answer: Transportation and personal expenses

Indirect costs such as transportation, housing, and personal expenses are not billed by the school but are included in the Cost of Attendance estimate.

A student who maintains a satisfactory academic progress (SAP) standard is required to:

Answer: Meet minimum GPA and completion rate thresholds set by the school

SAP policies require students to maintain a minimum GPA and complete a required percentage of attempted credits to retain financial aid eligibility.

What is the purpose of an award letter from a dental assisting school?

Answer: To detail the types and amounts of financial aid offered to a student

The award letter (or financial aid offer) outlines scholarships, grants, loans, and work-study funds offered to the student for the academic year.

Which of the following is a characteristic of a private student loan compared to a federal student loan?

Answer: Private loans typically have higher interest rates and fewer borrower protections

Private student loans are issued by banks or credit unions and generally carry higher interest rates and fewer consumer protections than federal loans.

What is loan capitalization in the context of student loans?

Answer: Adding unpaid interest to the principal loan balance

Capitalization occurs when accumulated unpaid interest is added to the principal, increasing the total amount owed.

Which repayment plan ties monthly federal loan payments to a borrower's income and family size?

Answer: Income-Driven Repayment Plan

Income-Driven Repayment plans cap monthly payments at a percentage of the borrower's discretionary income.

A dental assisting student is offered a $2,000 subsidized loan and a $1,500 unsubsidized loan. What is the total loan amount offered?

Answer: $3,500

$2,000 plus $1,500 equals a total of $3,500 in federal loan funds offered.