Lesson 04 of 07
College finance
College is the largest purchase most people make before they can rent a car. The price on the brochure is not the price you pay, and the loan you sign in March decides a lot of your twenties.
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The short version
- Sticker price is not net price. Grants and scholarships bring the number down. Fill out the FAFSA every year, even when you are sure you will not qualify — it is free and it is the only door to federal aid.
- Federal before private. Federal loans carry fixed rates, income-driven repayment, and forgiveness programs. Private loans have none of that. Exhaust the federal side first, always.
- Borrow against a salary you can name. A workable ceiling for total borrowing is roughly your expected first-year salary. If you cannot name the job, that is the first question, not the loan.
- The cheap levers are boring ones. Two years at community college, transferring, and finishing in four years move the total more than any scholarship essay. The expensive lever is the extra semester.
The goal is a credential you can afford to finish, not the most impressive acceptance letter. Debt without the degree is the worst outcome available.
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Six questions on the video.
Watch first, then take the quiz on its own page. Four right is a pass, and your best score is kept in this browser.
After this: Lesson 05, Credit cards and debt