Paying for Higher Education - Test Review

What does Cost of Attendance include?

• Only tuition fees

• Tuition, room and board, fees, and other costs

• Just room and board

• Only fees and other costs

What is Default in terms of student loans?

• A process allowing a borrower to pause loan payments

• Unpaid interest added to the principal balance

• Long-term failure to repay a loan

• A federal loan available to graduate students

What is Delinquency in the context of loans?

• The status of being ahead on loan payments

• The status of being behind on one or more loan payments

• The process of loan forgiveness

• The completion of loan payments

Who is eligible for Direct Plus Loans?

• Only undergraduate students

• Graduate or professional students and eligible parents of dependent undergraduates

• Only parents of students

• Only graduate students

What is a Direct Unsubsidized Loan?

• A loan where the government pays interest

• A loan for undergraduate students only

• A loan where the borrower is responsible for the interest

• A loan for parents of students

What is Federal Student Aid?

• A small scholarship for students

• The largest form of student aid including grants, loans, and work-study

• A loan for international students

• A grant for graduate students only

What is the Free Application for Federal Student Aid (FAFSA)?

• A free online application for college admission

• A free online application for scholarships

• A free online application for financial aid eligibility

• A free online application for student loans

What type of financial aid does not have to be repaid?

• Loans

• Gift Aid

• Work-Study

• Tuition

What is a Grace Period in terms of loans?

• A period when interest rates are reduced

• A period when no payments are required

• A period when loan amounts are increased

• A period when loans are forgiven

What does Loan Consolidation involve?

• Splitting a loan into multiple parts

• Combining multiple loans into one

• Increasing the interest rate on a loan

• Reducing the loan amount