General
student loans
Financial Aid
Cost of attending college
Loans 2
100

Which of the following statements is TRUE about the value of a college degree? 

  1. A high school graduate can expect to earn about the same as a college graduate
  2. Every college graduate can expect to have a starting salary over $60,000 right after college
  3. A college graduate can expect to earn, on average, more than a high school graduate over a career
  4. A college graduate typically earns less than someone with a high school diploma for the first 10 years

A college graduate can expect to earn, on average, more than a high school graduate over a career

100

The number that colleges use to determine how much federal student aid you would receive if you attended that school.

  1. FAFSA
  2. Grants
  3. Scholarships
  4. Student Aid Index
  • Student Aid Index
100

How much does it cost to file the FAFSA?        

  1. It is free
  2. It is free the first time you file, but costs $9.99/year thereafter
  3. It is 2% of your total loan amount
  4. $50
  • It is free
100

What types of money are used in paying for college and in what order should you use them?

  1. Your money, borrowed money, free money
  2. Borrowed money, your money, free money
  3. Your money, free money, borrowed money
  4. Free money, your money, borrowed money
  • Free money, your money, borrowed money
100

Which of the following is a good strategy to use when it comes to paying for college?

  1. Only report your own earnings and savings, not those of your parents, even if you live with them full-time
  2. See how much you can borrow in loans before applying for scholarships
  3. Spend the money that you earn from your summer job so you can get more financial aid
  4. Save your earnings from your summer job so that you can reduce the amount of loans you need to take
  • Save your earnings from your summer job so that you can reduce the amount of loans you need to take
200

Although it’s not a type of financial aid, how can transferring credits from a community college help save you money on college costs?

  1. It reduces amount of credits you’ll have to pay for at your 4-year college
  2. Colleges will pay you for any credits transferred from a community college
  3. The cost of community college credits can be deducted on your taxes
  4. Transferring credits from a community college makes you eligible for lower interest rates when taking out federal student loans
  • It reduces amount of credits you’ll have to pay for at your 4-year college
200

During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues…

  1. Grace period
  2. Grants and scholarships
  3. FAFSA
  4. Forbearance
  • Forbearance
200

In order to qualify for financial aid, which application must you submit?

  1. FAFSA
  2. PLUS
  3. EFC
  4. SAR
  • FAFSA
200

Which of the formulas below correctly calculates net price?

  1. Sticker price - student loans = net price
  2. Grants and scholarships + student loans = net price
  3. Sticker price - grants and scholarships = net price
  4. Sticker price + grants and scholarships = net price
  • Sticker price - grants and scholarships = net price
200

Which repayment option does not accrue interest while your required payments are paused?

  1. Consolidation
  2. Deferment
  3. Refinancing
  4. Forbearance
  • Deferment
300

Your school counselor is a great resource for all of the following EXCEPT…

  1. Providing information about scholarships and grants you wouldn’t be able to find elsewhere
  2. Negotiating lower interest rates with your lenders
  3. Suggesting specific scholarship and grant opportunities based on your personal strengths and accomplishments
  4. Comparing different colleges, their costs of attendance, and financial aid offers
  • Negotiating lower interest rates with your lenders
300

The federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.

  1. Work-Study
  2. Subsidized federal loans
  3. Unsubsidized federal loans
  4. Grants
  • Subsidized federal loans
300

Which of these options lists the types of financial aid from MOST attractive to LEAST attractive?

  1. Private loans, Federal loans, Work-study, Grants/Scholarships
  2. Grants/Scholarships, Work-study, Federal loans, Private loans
  3. Work-study, Grants/Scholarships, Federal loans, Private loans
  4. Federal loans, Grants/Scholarships, Work-study, Private loans
  • Grants/Scholarships, Work-study, Federal loans, Private loans
300

Which of the following is considered a direct cost of attendance?

  1. Travel expenses
  2. Cell phone bill
  3. Tuition
  4. Food and entertainment
  • Tuition
300

This type of federal loan is the most affordable because they tend to have low interest rates and don't accrue interest while you're in school.

1. Unsubsidized

2. Subsidized

  • Subsidized
400

As you make decisions during college, you should focus on…

  1. Minimizing your student loan debt at all costs
  2. Having fun, because you’re only in college once
  3. Focusing entirely on your studies to maximize your GPA
  4. Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college
  • Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college
400

FAFSA stands for....

  • Free Application For Federal Student Aid
400

Who receives and uses the information submitted in your FAFSA?

  1. Your employer to see if you’ll still be able to work while attending college
  2. Your parents to keep track of your progress at college
  3. The federal government for tax purposes
  4. The schools you’ve applied to and your state government to determine your eligibility for financial aid
  • The schools you’ve applied to and your state government to determine your eligibility for financial aid
400

Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?

  1. It will cost less to attend College A
  2. College B is providing Janelle more grants and scholarships
  3. College A has a lower sticker price than College B
  4. It will cost less to attend College B
  • It will cost less to attend College A
400

As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. What does this mean?

  1. You can expect to receive $10,000 in grants from the federal government to pay for college
  2. You should only apply to schools that cost $10,000 or less
  3. You can expect to receive $10,000 in loans from the federal government to pay for college
  4. The government expects that your family can contribute about $10,000 to the cost of your education
  • The government expects that your family can contribute about $10,000 to the cost of your education
500

Which of the following is a benefit of an income-driven repayment plan? 

  1. Theoretically, your payment should never be more than you can afford
  2. You will pay the least amount of interest over the life of the loan when compared to other loans
  3. They’re structured to be paid off in 5-10 years
  4. Even if you start to make more money, your monthly payments won’t change
  • Theoretically, your payment should never be more than you can afford
500

You will find each of the following pieces of information on your Student Aid Report (SAR) EXCEPT…

  1. a record of the answers you submitted on your FAFSA
  2. your Expected Family Contribution (EFC)
  3. your eligibility for federal student aid
  4. a record of all scholarships you have applied for
  • a record of all scholarships you have applied for
500

Typically, when should you first file the FAFSA?

  1. After you finish freshman year of high school
  2. October or November of your last year of high school
  3. After you receive your Student Aid Report
  4. Once you are ready to start repaying your student loans
  • October or November of your last year of high school
500

Keith's tuition, room & board, and fees for freshman year total $26,000. Including scholarships, grants, and federal student loans, his financial aid package is $25,500. Which option below is both realistic and the most financially responsible?

  1. Keith’s financial aid package covers all of his necessary costs, so there is no need for him to do anything else
  2. Keith should take out a private loan and limit himself to $8000 in other expenses freshman year
  3. Keith should pick up a part-time job to cover his remaining costs and personal expenses
  4. Keith should not attend this college because he cannot afford it
  • Keith should pick up a part-time job to cover his remaining costs and personal expenses
500

Which of the following is the default federal student loan repayment plan college graduates are entered into, requires the same minimum payment for the life of the loan, and ensures the borrower will pay the loan in full in ten years?

  1. Standard repayment plan
  2. Graduated repayment plan
  3. Extended repayment plan
  4. Income-driven repayment plan
  • Standard repayment plan
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