Paying for College - Unit Test

First Name:

Last Name:

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
• 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

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
• FAFSA
• Forbearance

3. 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

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

• FAFSA
• PLUS
• SAVE
• SAI

5. 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

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.

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

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

• Travel expenses
• Cell phone bill
• Tuition
• Food and entertainment

8. 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