Match the scenarios with terms related to financial aid. default

work-study

forgiveness

Cheryl received a student loan to pursue a degree to become a dental assistant. But unfortunately her school closed down due to legal complications. As Cheryl couldn’t complete the course due to no fault of her own, Cheryl need not pay back the loan.

Tom got a student loan to pursue a nursing science degree. But he couldn’t manage his money well enough, due to which he was unable to pay back his loan.

Sam is a pursuing an undergraduate program in Economics. He works as an assistant to the financial aid officer, which helps him earn $4000 annually. This helps him pay for a few educational expenses.

1. FORGIVENESS - Cheryl received a student loan to pursue a degree to become a dental assistant. But unfortunately her school closed down due to legal complications. As Cheryl couldn't complete the course due to no fault of her own, Cheryl need not pay back the loan.

2. DEFAULT - Tom got a student loan to pursue a nursing science degree. But he couldn't manage his money well enough, due to which he was unable to pay back his loan.

3. WORK-STUDY - Sam is pursing an undergraduate program in Economics. He works as an assistant to the financial aid officer, which helps him earn $4000 annually. This helps him pay a few educational expenses.

Explanation:

Forgiveness goes to:

Cheryl received a student loan to pursue a degree to become a dental assistant. But unfortunately her school closed down due to legal complications. As Cheryl couldn’t complete the course due to no fault of her own, Cheryl need not pay back the loan.

Default does to:

Tom got a student loan to pursue a nursing science degree. But he couldn’t manage his money well enough, due to which he was unable to pay back his loan.

Work-study goes to:

Sam is a pursuing an undergraduate program in Economics. He works as an assistant to the financial aid officer, which helps him earn $4000 annually. This helps him pay for a few educational expenses.

Hope this helped!