finance test study

1. Which of the following statements is TRUE about the value of a college degree? 

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

• A college graduate can expect to earn, on average, 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 college graduate typically earns less than someone with a high school diploma for the first 10 years

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

• Grace period

• Grants and scholarships

• Forbearance

• FAFSA

Which of these options lists the types of financial aid from MOST attractive to LEAST attractive?

• Private loans, Federal loans, Work-study, Grants/Scholarships

• Work-study, Grants/Scholarships, Federal loans, Private loans

• Grants/Scholarships, Work-study, Federal loans, Private loans

  
  

• Federal loans, Grants/Scholarships, Work-study, Private loans

Which of the formulas below correctly calculates net price?

• Sticker price - grants and scholarships = net price

  
  

• Sticker price + grants and scholarships = net price

• Grants and scholarships + student loans = net price

• Sticker price - student loans = net price

6. The federal government makes interest payments on __________ while you’re enrolled in school at least half-time, for the first six months after you leave school, and during any period of deferment.

• Unsubsidized federal loans

• Work-Study

• Subsidized federal loans

  
  

• Grants

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

• College B is providing Janelle more grants and scholarships

• It will cost less to attend College B

• It will cost less to attend College A

  
  

• College A has a lower sticker price than College B

12. Which of the following is a good strategy to use when it comes to paying for college?

• Spend the money that you earn from your summer job so you can get more financial aid

• Save your earnings from your summer job so that you can reduce the amount of loans you need to take

• See how much you can borrow in loans before applying for scholarships

• Only report your own earnings and savings, not those of your parents, even if you live with them full-time

  
  

Which repayment option does not accrue interest while your required payments are paused?

• Deferment

• Forbearance

• Consolidation

• Refinancing

19. Which of the following is TRUE about the Student Aid Index (SAI)?

• The HIGHER your SAI the MORE financial aid you are eligible for

• The LOWER your SAI the LESS financial aid you are eligible for

• The LOWER your SAI the MORE financial aid you are eligible for

• Your SAI does not impact how much financial aid you are eligible for

  
  

21. Each of the following organizations offers grants to college students EXCEPT…

• private companies

  
  

• colleges

• the federal government

• FAFSA