Paying for College 2024

Front

Aria, Evelyn, and Anika are debating the benefits of going to college and having a college degree. Can you help them identify one? Options: Lower lifetime earnings, Lower interest rates on future loans, Expanded professional and social network, Guaranteed starting salary of $50,000 after graduation

Back

Expanded professional and social network

Answer explanation

One key benefit of going to college is the expanded professional and social network. College provides opportunities to connect with peers, professors, and industry professionals, which can be valuable for career advancement.

Front

All of the following are costs of going to college EXCEPT... Scholarships and grants, Tuition, Fees & Books, Housing, Food

Back

Scholarships and grants

Answer explanation

Scholarships and grants are financial aid that reduce the cost of college, making them a benefit rather than a cost. In contrast, tuition, fees, books, housing, and food are all expenses associated with attending college.

Front

Why should you file the FAFSA as early as possible?

Back

Aid is given out on a first-come, first-serve basis

Answer explanation

Filing the FAFSA early is crucial because financial aid is allocated on a first-come, first-serve basis. This means that the sooner you apply, the better your chances of receiving the aid you need.

Front

How do scholarships and grants differ?

Back

Grants are need-based; scholarships are merit-based.

Answer explanation

Grants are typically awarded based on financial need, while scholarships are often based on academic or other merits. This distinction makes 'Grants are need-based; scholarships are merit-based' the correct choice.

Front

What do you need to file your FAFSA if you're a dependent?

Back

Your and your parents' tax forms from 2 years prior

Answer explanation

To file your FAFSA as a dependent, you need both your tax forms and your parents' tax forms from 2 years prior. This information is essential for determining your financial aid eligibility.

Front

Which is TRUE about the FAFSA? Options: You only need to file the FAFSA 1x in your college career, Your parents must earn below a set amount for you to apply, You need to file it at the start of every quarter/semester, There is no cost to file the FAFSA

Back

There is no cost to file the FAFSA

Answer explanation

The correct statement is that there is no cost to file the FAFSA. You can apply multiple times during your college career, and your parents' income does not restrict your ability to apply.

Front

Which is TRUE about the EFC?

Back

It's how much you & your family are expected to pay for college

Answer explanation

The EFC, or Expected Family Contribution, represents how much you and your family are expected to pay for college, based on financial information provided in the FAFSA.

Front

Which of the following is TRUE about how you get your financial aid? All financial aid is paid directly to you in one payment, All financial aid is paid to you in installments, Aid is 1st applied to your account; you get the rest, The school receives all of your financial aid

Back

Aid is 1st applied to your account; you get the rest

Answer explanation

The correct choice is 'Aid is 1st applied to your account; you get the rest' because financial aid is typically first used to cover tuition and fees, and any remaining funds are disbursed to you.

Front

Which of the following is TRUE about federal and private student loans? Private loans may be subsidized; federal ones are not, Both types offer the same repayment plans, Private loans always offer fixed interest rates, Fed. loans don't have prepayment penalties; private ones may

Back

Fed. loans don't have prepayment penalties; private ones may

Answer explanation

Federal loans do not have prepayment penalties, allowing borrowers to pay off their loans early without extra fees. In contrast, private loans may impose such penalties, making this statement true.

Front

How can you lower the total amount you in pay in student loans?

Back

Make interest payments during your grace period.

Answer explanation

Making interest payments during your grace period prevents interest from capitalizing, which can significantly lower the total amount you pay over the life of the loan. This choice directly reduces your overall loan cost.