A
A method of payment linked to your checking account is called:
A: A credit card
B: A travelers' check
C: A debit card
C. A debit card.
You should fill out a FAFSA:
A: Once in your senior year of high school before you go to college
B: Every year that you're in school
C: Whenever you feel like it
B. Every year that you're in school.
Which of the following statements about credit cards is false:
A: Using a credit card helps to build your credit
B: You should always try to pay more than the minimum monthly payment
C: A good APR, annual percentage rate or interest, to pay on a credit card is 27%
C. A good APR, annual percentage rate or interest, to pay on a credit card is 27%.
What is the purpose of a personal budget?
A: Make a plan to organize & manage your money
B: Figure out how much you have saved for emergencies
C: Guarantee you earn more
D: List all of your investments
A. Make a plan to organize & manage your money.
What does FAFSA stand for and what is it used for?
Free Application for Federal Student Aid - allows you to apply for federal student aid, which could give you access to grant, loans, and federal student aid.
Which of the following is an example of a "fixed expense"?
A: Food & groceries
B: Rent payments
C: Gas for your car
D: ClothingB. Rent payments.
What does EFC stand for and what does it measure?
Expected Family Contribution - measures your family's financial strength based on their income and assets.
True or false? You always earns interest on a savings account.
True.
A ___________ Loan is a low interest loan made from a bank or other lender and doesn't have to be repaid until 6 months after graduation.
Stafford.
You have graduated, left school, or dropped to half-time status. You have 9 months before you have to begin paying back your loans. What is this time period called?
Grace period.
What is Federal Work Study?
Provides jobs for undergraduate & graduate students with financial need. A certain percent of funds come from the government, & the rest comes from your college.
What percentage of a grant must be paid back?
None.
Federal Stafford Loans can be subsidized or unsubsidized. Explain the difference.
For subsidized Stafford Loans, the Department of Education pays interest on the loan while the student is in school and during grace and deferment periods.
For unsubsidized Stafford Loans, the student is responsible for paying interest during the entire life of the loan.
Most federal aid goes to the student. Which federal loan is available to the parents of dependent undergraduate students?
The Plus Loan.
What does it mean to default on a loan?
You default when you can't make payments on a loan, but fail to make arrangements with the lender.
Define a "loan deferment."
A deferment allows you to temporarily postpone payments on your loan, and must be approved by the lender.