Personal Financial Literacy: Paying For College Unit Test

What are grants?

• Financial aid that must be repaid

• Financial aid that does not need to be repaid, often awarded based on need or merit

• A type of loan with low interest rates

• A scholarship that requires academic performance

Which organization does NOT offer grants to college students?

• FAFSA

• Pell Grant

• National Science Foundation

• Federal Supplemental Educational Opportunity Grant

What is FAFSA?

• Free Application for Federal Student Aid

• Federal Aid for Students Application

• Financial Assistance for Students Form

• Free Aid for Federal Students

What is the role of private companies in college funding?

• Private companies provide federal financial aid to students.

• Private companies may offer scholarships or grants to students, but they do not provide federal financial aid.

• Private companies are the primary source of funding for all college expenses.

• Private companies only fund research projects at universities.

What is the impact of student loan interest?

• Interest on student loans increases the total amount you will have to repay over time.

• Student loan interest has no effect on the repayment amount.

• Interest on student loans decreases the total amount you will have to repay over time.

• Student loan interest is only applicable during the grace period.

What is the value of a college degree?

• A college graduate can expect to earn, on average, more than a high school graduate over a career.

• A college degree guarantees a high-paying job immediately after graduation.

• Most college graduates have student debt that outweighs their earnings.

• A college degree is only valuable in certain fields, such as engineering.

What should you consider when choosing a college?

• The total cost of attendance, including tuition, fees, room, board, and available financial aid.

• The college's sports teams and their performance history.

• The number of students enrolled in the college.

• The college's location and its proximity to major cities.

What is forbearance in relation to student loans?

• Forbearance allows you to pause student loan payments while interest still accrues during financial hardship.

• Forbearance is a program that eliminates student loan debt entirely.

• Forbearance requires you to make higher payments after the pause period ends.

• Forbearance is a type of scholarship for students in need.

What is a good strategy for paying for college?

• Take out as many loans as possible to cover all expenses.

• Save your earnings from your summer job to reduce the amount of loans you need to take.

• Rely solely on scholarships and grants without any savings.

• Work part-time during the school year to pay for tuition.

What does an Expected Family Contribution (EFC) of $10,000 mean?

• The government expects that your family can contribute about $10,000 to the cost of your education.

• Your family is required to pay $10,000 in taxes.

• The EFC is the total amount of money your family has in savings.

• Your family will receive $10,000 in financial aid.