Life After High School

Which of the following is a benefit of going to college and obtaining a degree?

• A higher credit score

• Higher potential earnings

• A nicer home

• Increased amount of debt

Answer explanation

Obtaining a degree often leads to higher potential earnings due to increased job opportunities and qualifications, making it a significant benefit of going to college.

Which of these is a way to pay for college rather than an expense of attending college?

• Grants

• Tuition

• Room & Board

• Books & Supplies

Answer explanation

Grants are financial aid that helps pay for college, making them a way to fund education rather than an expense. In contrast, tuition, room & board, and books & supplies are costs associated with attending college.

Scholarships are a great way to minimize the large expense of college. Which statement best describes a scholarship?

• A scholarship is a loan of money that must be paid back before graduating college.

• A scholarship is a loan of money that must be paid back after graduating college.

• A scholarship is free money that you must qualify for but do not need to pay back.

• A scholarship is free money given to every student who decides to attend college.

Answer explanation

A scholarship is free money that you must qualify for but do not need to pay back, making it different from loans, which require repayment.

Tatiana was offered a large amount of 'gift aid' from one of the colleges to which she applied. What is gift aid?

• Gift aid is money that is loaned to you to attend college that you will eventually have to pay back.

• Gift aid is money that you work for while in college or career school.

• Gift aid is free money that you don’t have to pay back, and it reduces the total price you’ll pay for college.

• Gift aid is a type of loan that needs to be paid back on an annual basis.

Answer explanation

Gift aid refers to free money provided for college expenses that does not need to be repaid, making it a valuable resource for reducing overall college costs.

Which college payment option is considered 'gift aid'?

• Federal student loans

• Private student loans

• Savings

• Scholarships

Answer explanation

Scholarships are considered 'gift aid' because they do not need to be repaid, unlike federal and private student loans. They provide financial support to students based on merit or need.

Which type of financial aid must be paid back with interest?

• Scholarship

• Grant

• Loan

• Work Study

Answer explanation

Loans are a type of financial aid that must be repaid with interest, unlike scholarships, grants, and work-study, which do not require repayment.

What’s the best advice on how much money to borrow in student loans?

• Borrow less than you need, and just hope they don’t kick you out before graduation

• Borrow only what you need for college costs and basic needs

• Borrow the maximum amount so you have a fun, exciting time during college

• Under no circumstance should you ever borrow money for college

Answer explanation

The best advice is to borrow only what you need for college costs and basic needs. This approach minimizes debt and ensures you can manage repayments after graduation, avoiding financial strain.

Damica wants to attend a college with a sticker price of $45,000. She qualifies for $13,000 in gift aid. What will Damica's net price be?

• $58,000

• $45,000

• $32,000

• $13,000

Answer explanation

To find Damica's net price, subtract the gift aid from the sticker price: $45,000 - $13,000 = $32,000. Therefore, the correct answer is $32,000.

Violet wants to attend a college that has a sticker price of $21,600. The college has given her gift aid of $9,800 and she received a $2,000 local scholarship. How much money does Violet and her family need to pay for her to attend this college?

• $33,400

• $13,800

• $9,800

• $2,000

Answer explanation

To find out how much Violet needs to pay, subtract the total aid from the sticker price: $21,600 - ($9,800 + $2,000) = $21,600 - $11,800 = $9,800. Therefore, Violet and her family need to pay $13,800.

All of the following are alternatives to attending a 4-year college except...

• Joining the workforce

• Obtaining a Bachelor's degree

• Attending a trade school

• Enlisting in the military

Answer explanation

Obtaining a Bachelor's degree is not an alternative to attending a 4-year college, as it typically requires attending one. The other options—joining the workforce, attending a trade school, and enlisting in the military—are valid alternatives.