College Financial Aid PreQuiz

All of the following are good ways to prepare for paying for college EXCEPT…

• Contributing to a 529 plan

• Building a savings

• Pursuing grants and scholarships

• Taking out student loans

Your friend has chosen what college they’re going to attend and says they want to lower the total amount of money they’ll have to budget for while in school. Which of the following should you tell them to focus on?

• Indirect costs

• Tuition

• Direct costs

• Room and board

Which formula is used to calculate the net price of a college?

• Sticker price + grants and scholarships = net price

• Sticker price + value = net price

• Sticker price – grants and scholarships = net price

• Sticker price - value = net price

All of the following statements about the FAFSA are true EXCEPT…

• It is used to determine how much and what kind of financial aid you’re eligible for.

• It’s best to submit your FAFSA application later in the filing period so you know what types of aid are available.

• Your parents can help you submit your application by creating their own FSA ID and providing necessary information.

• To receive financial aid, you’ll need to submit the FAFSA for each year you’ll be attending college.

After completing the FAFSA, what will you receive that you’ll need to advance through the financial aid process?

• A list of grants and scholarships you are likely to receive.

• Discounts on tuition at certain colleges based on your financial need.

• Career counseling that is offered to all FAFSA filers.

• Your Student Aid Report that contains information like your Expected Family Contribution.

What is the relationship between your Expected Family Contribution (EFC) and your likelihood of qualifying for financial aid?

• A higher EFC means you’ll likely qualify for MORE financial aid.

• A higher EFC means you’ll likely qualify for LESS financial aid.

• Your EFC is equal to the amount of financial aid you’re eligible to receive.

• EFC has no effect on how much financial aid you’ll qualify for.

All of the following are key components of your Student Aid Report EXCEPT…

• Your class schedule

• Cost of attendance

• Types of financial aid

• Net price

Your college’s cost of attendance is $12,000, you will be receiving $5,000 in scholarships and grants, and you plan on taking out $6,000 in student loans. What is your net price?

• $1,000

• $7,000

• $11,000

• $23,000

All of the following must be done in order to accept your financial aid offer EXCEPT…

• Review your Student Aid Report

• Sign and return your promissory note

• Complete entrance counseling

• Make a deposit to secure your student loans

Your friend tells you they’ve submitted their FAFSA and they’re ready to start accepting financial aid. What type of aid should they accept first?

• Federal student loans

• Private student loans

• Work study

• Grants and scholarships