Unit 4 - Paying for College Study Guide

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

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

What types of money are used in paying for college and in what order should you use them?

• Your money, borrowed money, free money

• Borrowed money, your money, free money

• Your money, free money, borrowed money

• Free money, your money, borrowed money

Although it’s not a type of financial aid, how can transferring credits from a community college help save you money on college costs?

• It reduces amount of credits you’ll have to pay for at your 4-year

  college

• Colleges will pay you for any credits transferred from a community college

• The cost of community college credits can be deducted on your taxes

• Transferring credits from a community college makes you eligible for lower interest

  rates when taking out federal student loans

Janelle's family earns about $60,000 per year. She has been accepted to College A and College B and is comparing their financial aid packages. College A has a sticker price of $28,000 and net price of $12,000. College B has a sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?

• It will cost less to attend College A

• College B is providing Janelle more grants and scholarships

• College A has a lower sticker price than College B

• It will cost less to attend College B

Who is eligible to receive Direct Subsidized loans?

• Graduate students

• Professional students

• Undergraduate students

• Students enrolled less than half-time

Which repayment option does not accrue interest while your required payments are paused?

• Consolidation

• Deferment

• Refinancing

• Forbearance

How much does it cost to file the FAFSA?

• It is free

• It is free the first time you file, but costs $9.99/year thereafter

• It is 2% of your total loan amount

• $50

Typically, when should you first file the FAFSA?

• After you finish freshman year of high school

• October or November of your last year of high school

• After you receive your Student Aid Index

• Once you are ready to start repaying your student loans

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

• The lower your SAI the more financial aid you are eligible for

• The higher your SAI the more financial aid you are eligible for

• The lower your SAI the less financial aid you are eligible for

• Your SAI does not impact how much financial aid you are eligible for