Final Test Review Fall 2020

Which of the following statements is TRUE about the value of education?

• A high school graduate can expect to earn about the same as a college graduate

• Every college graduate can expect to have a starting salary over $60,000 right after college

• A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career

• Pursuing a college degree only has quantitative benefits, such as a higher salary

In order to qualify for financial aid, which form must you file?

• FAFSA

• Financial aid letter

• EFC

• SAR

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

• Private loans, Federal loans, Work-Study, Grants/Scholarships

• Grants/Scholarships, Work-study, Federal loans, Private loans

• Work-study, Grants/Scholarships, Federal loans, Private loans

• Federal loans, Grants/Scholarships, Work-study, Private loans

Which type of financial aid am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.

• work-study

• subsidized federal loan

• unsubsidized loan

• grants

Sarah lives on campus. Which of the following cost categories can she most likely remove from her budget?

• tuition for the semester

• meal plan for the semester

• monthly on-campus parking permit

• books for her classes

What is one advantage of Federal student loans?

• Federal student loans do not need to be repaid

• Federal student loans do not require you to complete the FAFSA

• Federal student loans have lower credit standards (are easier to get) than private loans, which may require a co-signer

• Federal loans don't charge any interest for the entire term of the loan

How much does it cost to file the FAFSA?

• nothing

• it is free the first time and then $9.99 after that

• 2% of your loan total

• $50

Typically, when should you file your first FAFSA?

• After you finish your freshman year of high school

• October or November of your last year of high school

• After you receive your Student Aid Report

• Once you are ready to start repaying your student loans

What are the two most important factors in calculating your credit score?

• payment history and types of accounts

• amounts owed and length of credit history

• payment history and amounts owed

• length of credit history and new credit inquiries

Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?

• cancel his credit cards

• make on-time payments

• get a car loan

• check his credit score