Test 5: Paying for College

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

• 1. 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

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

• 1. Grace period

• Grants and scholarships

• 1. FAFSA

• Forbearance

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

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

• FAFSA

• PLUS

• SAVE

• SAI

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

• 1. Sticker price - student loans = net price

• 1. Grants and scholarships + student loans = net price

• 1. Sticker price - grants and scholarships = net price

• 1. Sticker price + grants and scholarships = net price

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

• 1. Travel expenses

• Cell phone bill

• 1. Tuition

• 1. Food and entertainment

1. 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

• 1. The schools you’ve applied to and your state government to determine your eligibility for financial aid

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

• 1. Your money, borrowed money, free money

• Borrowed money, your money, free money

• 1. Your money, free money, borrowed money

• 1. Free money, your money, borrowed money

1. Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?

• 1. It will cost less to attend College A

• College B is providing Janelle more grants and scholarships

• 1. College A has a lower sticker price than College B

• 1. It will cost less to attend College B

Which of the following is a good strategy to use when it comes to paying for college?

• 1. Only report your own earnings and savings, not those of your parents, even if you live with them full-time

• See how much you can borrow in loans before applying for scholarships

• 1. Spend the money that you earn from your summer job so you can get more financial aid

• 1. Save your earnings from your summer job so that you can reduce the amount of loans you need to take