Understanding Financial Aid Options

What is the main difference between a loan and a scholarship?

• Loans need to be repaid, while scholarships do not.

• Scholarships need to be repaid, while loans do not.

• Both loans and scholarships need to be repaid.

• Neither loans nor scholarships need to be repaid.

Which of the following is a characteristic of a grant?

• It must be repaid with interest.

• It is usually based on financial need.

• It is only available to graduate students.

• It is a type of loan.

What is a Stafford Loan?

• A type of scholarship for academic excellence.

• A federal student loan with fixed interest rates.

• A grant for low-income students.

• A private loan from a bank.

What is the key difference between subsidized and unsubsidized Stafford Loans?

• Subsidized loans have higher interest rates.

• The government pays the interest on subsidized loans while you are in school.

• Unsubsidized loans are only for graduate students.

• Subsidized loans must be repaid immediately after borrowing.

Which of the following is a requirement to obtain a scholarship?

• You must have a part-time job.

• You must demonstrate academic or athletic excellence.

• You must be over 25 years old.

• You must have a sibling in college.

In what scenario might a student receive a grant?

• If they have a high GPA.

• If they demonstrate financial need.

• If they are an international student.

• If they are a part-time student.

What is one benefit of a scholarship over a loan?

• Scholarships have lower interest rates.

• Scholarships do not need to be repaid.

• Scholarships are easier to obtain.

• Scholarships are only for graduate students.

Which of the following is true about unsubsidized Stafford Loans?

• Interest is paid by the government while you are in school.

• Interest accrues while you are in school.

• They are only available to undergraduate students.

• They have no interest.

What is a common requirement for both scholarships and grants?

• They require repayment after graduation.

• They are based on financial need.

• They require an application process.

• They are only available to athletes.

Which type of financial aid is typically awarded based on merit?

• Loans

• Grants

• Scholarships

• Work-study