Paying for College

Which of the following is TRUE about federal and private student loans?

• Private loans may be subsidized; federal ones are not

• Both types offer the same repayment plans

• Private loans always offer fixed interest rates

• Fed. loans don't have prepayment penalties; private ones may

Which is TRUE about sticker price and net price?

• Net price is the sticker price minus loans

• Sticker Price is the published cost of going to a school

• Net price is the sticker price minus loans

• Sticker price is the net price minus scholarships & grants

What is a benefit of going to college and having a college degree?

• Lower lifetime earnings

• Lower interest rates on future loans

• Expanded professional and social netowrk

• Guaranteed starting salary of $50,000 after graduation

If you select a repayment plan with a longer term for your loans...

• You will have a larger monthly pyament

• You will have a smaller monthly payment

• You will pay less in interest

• You will pay the same amount in interest

How do scholarships and grants differ?

• Scholarships are need-based; grants are merit-based

• Grants are private forms of aid; scholarships are federal

• Grants are need-based; scholarships are merit-based

• They're not different; they are one and the same

How can you lower the total amount you in pay in student loans?

• Choose a repayment plan with a longer term

• Accept private loans first, then federal ones

• Make interest payments during your grace period

• Accept loans with variable interest rates, not fixed ones

In what order should you accept different types of financial aid?

• Work-study, scholarships, federal loans, private loans

• Private loans, scholarships, work-study, federal loans

• Scholarships, work-study, federal loans, private loans

• Scholarships, work-study, private loans, federal loans

When does the FAFSA filing period open every year?

• January 1st

• June 1st

• October 1st

• December 1st

Which is TRUE about the Student Aid Index (SAI)?

• It's the cost of filing the FAFSA

• It's how much you & your family are expected to pay for college

• It's another term for "net price"

• It's how much your parents must contribute towards college

When looking at a financial aid award letter, which type(s) of aid would you have to pay BACK?

• Federal Pell Grant

• Direct Subsidized Loan

• Merit Scholarship

• Federal Work-Study