Module 9 and 10 Review

1. The FAFSA is used to determine your eligibility for…

• 1. Private loans and merit-based scholarships

• 1. Scholarships, grants, work study, and federal loans

• 1. Grants to study abroad

• 1. Free room and board

2. All of the following are potential benefits of attending college EXCEPT…

1. 
   

• 1. College graduates are more likely to get a higher paying job

  
  

• 1. Your employer is required to help you pay back your student loans

  
  

• 1. A majority of jobs require some college education

  
  

• 1. College graduates are more likely to work for an employer that offers health insurance

  
  

3. What is the difference between a federal subsidized loan and a federal unsubsidized loan?

1. 
   

• 1. Subsidized loans are given to parents, while unsubsidized loans are given to undergraduates

  
  

• 1. Subsidized loans are charged interest daily, while unsubsidized loans are charged interest monthly

  
  

• 1. Subsidized loans need to be repaid, while unsubsidized loans do not need to be repaid

  
  

• 1. Subsidized loans are interest-free until graduation, while unsubsidized loans are charged interest throughout the whole term of the loan

  
  

4. Scout has each of the following options available to her for paying for her first year of college. Which should she choose first?

1. 
   

• 1. A work-study job worth $500

  
  

• 1. A $1,500 scholarship from her father’s employer

  
  

• 1. A $2,000 subsidized federal loan

  
  

• 1. A $14,000 private student loan

  
  

11. Why are you advised to file your FAFSA as early as possible?

1. 
   

• 1. After a certain deadline, you are required to pay a fee to file your FAFSA

  
  

• 1. Financial aid is awarded on a first come, first served basis so you are more likely to get grants and scholarships by filing early

  
  

• 1. You have to file your FAFSA before you can complete your federal income tax return

  
  

• 1. Colleges are more likely to accept you because you took the initiative to file early

  
  

14. Why should a high school senior who has already completed the FAFSA still apply for scholarships as well?

1. 
   

• 1. Scholarships almost always have a higher dollar amount than grants or loans do

  
  

• 1. Scholarships are much easier to qualify for than federal student loans

  
  

• 1. Scholarships are “free money” that won’t need to be repaid

  
  

• 1. Scholarships are only offered by prestigious colleges and will help guarantee admission

  
  

1. Which term refers to the maximum amount your insurance policy will pay out for covered claims in a given year?

1. 
   

• 1. Premium

• 1. Deductible

• 1. Out-of-pocket maximum

  
  

• 1. Coverage limit

  
  

2. The premium and the deductible for your renters insurance policy have an inverse relationship. What does that mean?

1. 
   

• 1. If you pay a higher premium, you will receive a lower deductible

  
  

• 1. If you pay a higher premium, you will receive a higher deductible

  
  

• 1. If you pay a higher premium, your insurance company will pay a higher deductible

  
  

• 1. If you pay a higher premium, it does not impact your deductible at all

  
  

5. Elijah has car insurance that includes collision coverage with a deductible of $1,500 and a coverage limit of $25,000. After having an accident, he files a valid claim for car repair costs totaling $5,750. Who pays?

1. 
   

• 1. Elijah pays $0; the insurance pays $5,750

  
  

• 1. Elijah pays $1,500; the insurance pays $4,250

  
  

• 1. Elijah pays $4,250; the insurance pays $1,500

  
  

• 1. Elijah pays $5,750; the insurance pays $0

  
  

8. What is a health insurance deductible?

1. 
   

• 1. The amount you can deduct from your taxes due to having insurance coverage all year

  
  

• 1. The fixed amount you need to pay for every medical claim before your insurance covers the rest

  
  

• 1. The amount you can subtract from your premiums as long as you go without making an insurance claim

  
  

• 1. The cumulative amount that you have to pay for medical costs before your insurance pays anything
     

  9.