PERSONAL FINANCE (S2) Pre-Assessment

Which of the following is the most effective way to minimize student loan debt?

• Apply for private loans

• Choose a college based on prestige

• Work part-time while in school

• Spend more using credit cards

A 529 plan is:

• A savings plan for retirement

• A college savings plan with tax benefits

• A private loan for students

• A government-funded scholarship

What is the recommended percentage of your college costs to cover with loans?

• 50%

• 75%

• 0%

• 25%

When planning for college, why is it important to start early?

• To gain more financial aid

• To invest in high-risk stocks

• To save for tuition and avoid debt

• To ensure immediate enrollment

Which of the following should be avoided when applying for scholarships?

What does FAFSA stand for?

• Free Application for Student Assistance

• Federal Assistance for Student Aid

• Free Application for Federal Student Aid

• Financial Assistance for School Applicants

What is a major benefit of community colleges?

• Free textbooks

• Lower tuition costs

• Guaranteed job placement

• Easier curriculum

Why is it important to choose a degree with strong job market prospects?

• To earn higher grades

• To increase future earning potential

• To save on tuition costs

• To minimize student expenses

What is one disadvantage of student loans?

• Limited repayment options

• Accrued interest over time

• Ineligibility for scholarships

• Easier college access

What is the best way to reduce the overall cost of college?