MM Spring Semester Exam Review

Which of the following statements is false?

• Millions of people canʹt afford to make their student loan payment every month.

• Our culture accepts student loan debt as normal and sometimes even refers to it as good debt.

• Debt is owing anything to anyone for any reason.

• A student loan is an award.

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

• Many businesses have scholarships for employeesʹ children.

• Grants are free money.

• The Free Application for Federal Student Aid (FAFSA) is the first step to receiving any kind of financial aid.

• Scholarships are only for the highest academic achievers.

Which of the following statements is false?

• On-campus jobs may pay you directly or pay toward your tuition bill.

• Research shows that students who work up to 20 hours a week have the highest grade point averages.

• Research shows that working more than 20 hours a week may affect your grades negatively.

• Students rarely drop out of college due to financial trouble.

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

• Live on a zero-based budget.

• Attend an out-of-state school.

• Work and save money over the summer months.

• Make sure you have an emergency fund.

The average repayment period for a student loan is:

• 15 years

• 5 years

• 20 years

• 10 years

Which of the following statements is false?

• On-the-job training often combines a professional trainer, hands -on activities and formal classroom training.

• 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.

• An associateʹs 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.

• All high-paying careers require a four-year college degree.

The Fourth Foundation is:

• Pay cash for your car

• Build wealth and give

• Build a $500 emergency fund

• Pay cash for college

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

• Not having the freedom to be a stay-at-home parent because of student loan payments

• Having to delay investing and saving for your future because of student loan payments

• Not having flexibility in your career options because of student loan payments

• All of the above

Which of the following is not one of the basics of budgeting?

• Pay yourself first by saving

• Stick to your budget unless something unexpected happens

• Make it a priority to give

• Live on less than you make

Youʹll only need to complete the FAFSA once during your college education.

• True

• False