Paying for College - Unit Test

1. 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

2. 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.

• Work-Study
• Subsidized federal loans
• Unsubsidized federal loans
• Grants

3. What types of money are used in paying for college and in what order should you use them?

• Your money, borrowed money, free money
• Borrowed money, your money, free money
• Your money, free money, borrowed money
• Free money, your money, borrowed money

4. 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

5. 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?

• It will cost less to attend College A
• College B is providing Janelle more grants and scholarships
• College A has a lower sticker price than College B
• It will cost less to attend College B

6. Who is eligible to receive Direct Subsidized loans?

• Graduate students
• Professional students
• Undergraduate students
• Students enrolled less than half-time

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

• Consolidation
• Deferment
• Refinancing
• Forbearance

8. How much does it cost to file the FAFSA?

• It is free
• It is free the first time you file, but costs $9.99/year thereafter
• It is 2% of your total loan amount
• $50

9. Typically, when should you first file the FAFSA?

• After you finish freshman year of high school
• October or November of your last year of high school
• After you receive your Student Aid Index
• Once you are ready to start repaying your student loans

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

• The LOWER your SAI the MORE financial aid you are eligible for
• The HIGHER your SAI the MORE financial aid you are eligible for
• The LOWER your SAI the LESS financial aid you are eligible for
• Your SAI does not impact how much financial aid you are eligible for