Foundations in Personal Finance Chapter 5

Which of the following is not a good option when it comes to paying for your education? 

• Get a part-time job 
• Fill out the FAFSA
• Ask your parents to take out a loan
• Plan ahead

Which of the following are ways that you can invest in yourself? 

• Find a mentor
• Surround yourself with people who have similar goals and ambitions as you
• Read books
• All of these 

Which of the following statements about college financial aid is false? 

• Many businesses have scholarships for employees' children.
• Scholarships are only for the highest academic achievers.
• Grants are free money.
• The Free Application for Federal Student Aid (FAFSA) is the first step to receiving any kind of financial aid.

Which of the following statements is false? 

• Our culture accepts student loan debt as normal and sometimes even refers to it as good debt.
• Millions of people can't afford to make their student loan payment every month.
• A student loan is an award.
• Debt is owing anything to anyone for any reason.

You should visit your college's financial aid office if: 

• A medical situation has come up
• Your parents' financial situation has changed
• You have any problems with the financial aid application process
• All of these 

Which of the following statements is false? 

• Students rarely drop out of college due to financial trouble.
• Research shows that working more than 20 hours a week may affect your grades negatively.
• Research shows that students who work up to 20 hours a week have the highest grade point averages.
• On-campus jobs may pay you directly or pay toward your tuition bill.

Which of the following is not recommended when you are cash-flowing your college education? 

• Make sure you have an emergency fund.
• Live on a zero-based budget.
• Work and save money over the summer months.
• Attend an out-of-state school.

Which of the following statements is false? 

• Students who are looking to learn specific skills can look into free or low-cost certifications found online, at community colleges, or through government-funded programs.
• On-the-job training often combines a professional trainer, hands-on activities and formal classroom training.
• All high-paying careers require a four-year college degree.
• An associate's degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree.

Which of the following could be a negative consequence of taking out student loans? 

• Having to delay investing and saving for your future because of student loan payments
• Not having the freedom to be a stay-at-home parent because of student loan payments
• Not having flexibility in your career options because of student loan payments
• All of these 

A wise college plan does not include: 

• Scoring well on the ACT or SAT
• Shopping around for the most appropriate, low-cost academic option for your career choice
• Finding the most expensive, prestigious college so that you can impress future employers
• Creating a budget and starting to save now