Unit 5 Quiz (College & College Aid)

Which of the following statements is TRUE about the value of education?

• A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career.

• Every college graduate can expect to have a starting salary over $60,000 right after college.

• A high school graduate can expect to earn about the same as a college graduate.

• Pursuing a college degree only has quantitative benefits, such as a higher salary.

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

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

• If making a decision strictly based on cost, Janelle's best option is State U

• Greenlawn College is providing Janelle more grants and scholarships

• State U has a lower sticker price than Greenlawn College

• One factor that impacts net price is family income

Which type of financial aid am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.

• Work-Study

• Subsidized federal loan

• Unsubsidized federal loan

• Grants

Sarah lives on campus. Which of the following cost categories can she most likely remove from her budget?

• Tuition for the semester

• Meal Plan for the semester

• Monthly on-campus parking permit

• books for her classes

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

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

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

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

It's important to have other alternatives to going to college right after high school as a backup plan.

• True

• False

The only choice you have after high school is college.

• True

• False