Personal Finance Obj 3.00 Preparing for Higher Education

The return on investment (ROI) from education is typically the highest for:

• A high school graduate

• A college applicant

• Someone with a 2-year (Associate)degree

• Someone with a 4-year (Bachelor's)degree

Select the answer that best describes why the return on investment (ROI) for higher education is high even though the cost of college is increasing.

• You have the potential to earn less money in the future when you continue your education past high school

• You have the potential to earn less money in the future when you continue your education past college

• High education is not an investment but a debt

• Earning potential is not affected by educational level.

Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first?

• Fill out her FAFSA form

• Start applying for grants and scholarships

• look for school clubs and organizations she's interested in

• sign up for college admission exams

Which of the following loans will typically offer the lowest interest rate?

• Payday loans

• Federal student loan

• Private loans

• Grants

Which type of loans requires that you pay the interest accumulated during college?

• Pell Grant

• Subsidized federal loan

• UnSubsidized federal loan

• University scholarship[

When referring to student loans, what is a grace period?

• The time between graduating college and starting your first job when you don't have to pay back student loans.

• The period after graduating or leaving school before you must begin paying back student loans.

• The amount of time you have to pay back your entire student loan amount

• none of the above

Which of the following statements about the Federal Application for Student (FAFSA) is TRUE?

• You can only apply online

• The earliest you can submit your FAFSA application is December 1st

• The IRS Data Retrieval Tool allows you to view and transfer your tax information directly into your FAFSA form

Which loan type requires you to make loan payments while you're attending school?

• Unsubsidized federal loan

• Subsidized federal loan

• Pell Grant

• None of the above

Which education level has the highest return on investment (ROI)?

• High School Diploma

• Bachelor's Degree (4 years of college)

• Senior of High School

• ROI is equal for all of degrees

Which of the following types of financial aid do not require you to pay the money back?

• Grants

• Private Loans

• Federal Loans

• Unsubsidized loans