Paying for College - Unit Test Review

1. Considering the career earnings of Benjamin, a college graduate, and David, a high school graduate, which of the following statements is TRUE?

• David can expect to earn about the same as Benjamin over their careers

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

• Benjamin can expect to earn, on average, more than David over their careers

• Benjamin typically earns less than David for the first 10 years after graduation

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

• Grace period

• Grants and scholarships

• FAFSA

• Forbearance

Avery is evaluating different types of financial aid for college. 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

Ethan is planning to attend college next year. In order to qualify for financial aid, which application must he submit?

• FAFSA

• PLUS

• SAVE

• SAI

Sophia is reviewing her college expenses. Which of the formulas below correctly calculates her 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

Emma is currently enrolled in college full-time. The federal government makes interest payments on __________ while Emma is in school, for the first six months after she leaves school, and during any period of deferment.

• Work-Study

• Subsidized federal loans

• Unsubsidized federal loans

• Grants

Emma is reviewing her college expenses. Which of the following is considered a direct cost of attendance?

• Travel expenses

• Cell phone bill

• Tuition

• Food and entertainment

8. Who receives and uses the information submitted in Charlotte's FAFSA?

• Her employer to see if she’ll still be able to work while attending college

• Her parents to keep track of her progress at college

• The federal government for tax purposes

• The schools she’s applied to and her state government to determine her eligibility for financial aid

Sophia is planning how to finance her college education. What types of money should she consider using, and in what order should she use them?

• Her money, borrowed money, free money

• Borrowed money, her money, free money

• Her money, free money, borrowed money

• Free money, her money, borrowed money

Although it’s not a type of financial aid, how can transferring credits from a community college help save William money on college costs?

• It reduces the amount of credits William will have to pay for at his 4-year college

• Colleges will pay William for any credits transferred from a community college

• The cost of community college credits can be deducted on William's taxes

• Transferring credits from a community college makes William eligible for lower interest rates when taking out federal student loans