Paying for College Quiz

While doing online research about the colleges you're considering, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 per month, and we guarantee you'll win a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed?

• Sign up, but use a fake email address in case it's spam.

• Sign up, because at $40 per month, it will be a bargain if you win thousands in scholarships.

• Don't sign up unless your parent says it's OK to use their credit card for the payments.

• Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites.

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

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

• FAFSA

• Financial Aid Letter

• EFC

• SAR

Which of the following list the correct words in the acronym SMART?

• Specific, Measurable, Attainable, Realistic, Time-bound

• Smart, Measurable, Attainable, Realistic, Time-bound

• Strategic, Manageable, Accessible, Realistic, Time-bound

• Strong, Muscular, Affable, Romantic, Transformational

Which of the formulas below equates to 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

When filing your FAFSA, you'll need each of the following documents EXCEPT...

• Tax return from 2 years ago for you and your parents (in most cases).

• Social Security card, driver's license, or proof of permanent residency.

• Bank and/or investment statements (if applicable).

• Proof of employment.

What is a good rule of thumb to consider when it comes to student loan debt?

• You should never borrow money to go to college because it is unlikely that you will be able to pay it back.

• You should borrow as much money as you can through private loans and then take out federal loans.

• You should borrow as much as your college says you should borrow as laid out in your financial aid offer letter.

• You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college.

When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. Which piece of advice is LEAST useful in this situation?

• You should start the semester, hope the college doesn't notice the shortage, and then deal with the consequences later if they catch you.

• You should call the financial aid office, explain the situation, and ask them to review your materials again.

• Your parents should take out a Direct PLUS Loan for the other $6000.

• You should apply for additional scholarships or grants that are being offered from other organizations.

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

• 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.

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

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

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 cosigner.

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