Chapter 4 Part 3

Which of the following is NOT a common source of funding for education beyond paying out of pocket according to Figure 4.4?

• Grants

• Student Loans

• Scholarships

• Personal Savings

What is required for the repayment of grants, as mentioned in Figure 4.4?

• Must be repaid in full with interest

• No repayment cost unless certain terms are not met

• Repayment costs vary depending on the terms and type of loan

• No repayment costs ever

What is often referred to as "free money" in the context of education funding?

• Grants

• Student Loans

• Scholarships

• Work-study programs

Which application is commonly used to begin exploring sources of funding for college expenses?

• Common Application

• Free Application for Federal Student Aid (FAFSA)

• College Scholarship Service Profile (CSS Profile)

• State Financial Aid Application

What information is NOT listed as necessary to complete the FAFSA application?

• Social Security Number

• Alien Registration Number

• Driver's License Number

• Federal income tax returns, W-2s, and other records of money earned

What are student loans used for?

• To pay for postsecondary education

• To purchase a new car

• To fund a vacation

• To invest in the stock market

Which typically has lower interest rates, federal government loans or private lender loans?

• Federal government loans

• Private lender loans

• Both have the same interest rates

• Interest rates are not applicable to student loans

What is a key difference between loans and grants?

• Grants are typically need-based and do not have to be repaid

• Loans have to be repaid, while grants do not

• Loans are only for full-time students, while grants are not

• Loans are awarded yearly, while grants are a one-time award

What must you complete to be considered for federal grants?

• A job application

• The FAFSA

• A loan repayment plan

• A credit score check

Can grants be given multiple times to the same individual?

• Yes, grants can be awarded yearly

• No, grants can only be given once

• Yes, but only if the individual changes their major

• No, grants are strictly for first-year students