Personal Financial Literacy: Paying For College Unit Test

1. Which of the following statements is TRUE about the value of a college degree?

• 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, more than a high school graduate over a career
• A college graduate typically earns less than someone with a high school diploma for the first 10 years

2. During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues…

• Grace period
• Grants and scholarships
• FAFSA
• Forbearance

3. Which of these options lists 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

4. In order to qualify for financial aid, which application must you submit?

• FAFSA
• PLUS
• EFC
• SAR

5. Which of the formulas below correctly calculates net price?

• Sticker price - student loans = net price
• Grants and scholarships + student loans = net price
• Sticker price - grants and scholarships = net price
• Sticker price + grants and scholarships = net price

6. The federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.

• Work-Study
• Subsidized federal loans
• Unsubsidized federal loans
• Grants

7. Which of the following is considered a direct cost of attendance?

• Travel expenses
• Cell phone bill
• Tuition
• Food and entertainment

8. Who receives and uses the information submitted in your FAFSA?

• Your employer to see if you’ll still be able to work while attending college
• Your parents to keep track of your progress at college
• The federal government for tax purposes
• The schools you’ve applied to and your state government to determine your eligibility for financial aid

9. What types of money are used in paying for college and in what order should you use them?

• Your money, borrowed money, free money
• Borrowed money, your money, free money
• Your money, free money, borrowed money
• Free money, your money, borrowed money

10. Although it’s not a type of financial aid, how can transferring credits from a community college help save you money on college costs?

• It reduces amount of credits you’ll have to pay for at your 4-year college
• Colleges will pay you for any credits transferred from a community college
• The cost of community college credits can be deducted on your taxes
• Transferring credits from a community college makes you eligible for lower interest rates when taking out federal student loans