Paying for College Unit Test

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

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

• A college graduate can expect to earn, on average, more than a high school graduate over a career

• A college graduate typically earns less than someone with a high school diploma for the first 10 years

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

In order to qualify for financial aid, which application must you submit?

• FAFSA

• PLUS

• SAVE

• SAI

Which of the formulas below correctly calculates 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

The federal government makes interest payments on (a)   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.

• Work-Study

• Subsidized federal loans

• Unsubsidized federal loans

• Grants

Which of the following is considered a direct cost of attendance?

• Travel expenses

• Cell phone bill

• Tuition

• Food and entertainment

Who receives and uses the information submitted in your FAFSA?

• Your employer to see if you’ll still be able to work while attending college

• Your parents to keep track of your progress at college

• The federal government for tax purposes

• The schools you’ve applied to and your state government to determine your eligibility for financial aid

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

• It reduces amount of credits you’ll have to pay for at your 4-year college

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

• The cost of community college credits can be deducted on your taxes

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

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

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

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

• 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

Who is eligible to receive Direct Subsidized loans?

• Graduate students

• Professional students

• Undergraduate students

• Students enrolled less than half-time