Understanding College Financing

What is the primary purpose of filling out the FAFSA?

• To sign up for financial literacy webinars

• To be considered for federal student aid

• To register for college classes

• To apply for private loans

Which of the following is NOT a benefit of obtaining a college degree?

• Increased job security

• Potential for better health outcomes

• Guaranteed high salary

• Access to a larger network

What type of savings plan allows you to save at today's education rates for the future?

• 529 Guaranteed Savings Plan

• 529 Investment Plan

• High Yield Savings Account

• Roth IRA

What is a 529 Plan primarily used for?

• College education expenses

• Purchasing a home

• Emergency fund

• Retirement savings

What is an advantage of federal student loans over private student loans?

• Immediate repayment requirements

• Higher interest rates

• Eligibility for loan forgiveness programs

• Higher borrowing limits

Which type of federal student loan does not accrue interest while you are in school?

• Subsidized Loan

• Unsubsidized Loan

• Private Loan

• Parent PLUS Loan

Which type of loan typically requires a credit check?

• Federal Work Study

• Private Student Loan

• Federal Unsubsidized Loan

• Federal Subsidized Loan

What is the maximum amount a dependent undergraduate student can borrow in federal student loans?

• $23,000

• $57,500

• $138,500

• $31,000

What is a key strategy to minimize college education costs?

• Only attending part-time

• Applying for only unsubsidized loans

• Taking more than 12 credits per semester

• Avoiding filling out the FAFSA

What should you do if your monthly loan payments are projected to be too high compared to your starting salary?

• Avoid making a financial plan

• Only use private loans for funding

• Ignore the loans until after graduation

• Consider cost-saving strategies and scholarship opportunities