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WorksheetsUnit 4 Review: Paying for College
Total questions: 48
Worksheet time: 2hrs 45mins
Which of the following statements is TRUE about the value of education?
A high school graduate can expect to earn about the same as a college graduate.
Every college graduate can expect to have a starting salary over $60,000 right after college.
A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career.
Pursuing a college degree only has quantitative benefits, such as a higher salary.
While doing online research about the colleges you're considering, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 per month, and we guarantee you’ll win a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed?
Sign up, but use a fake email address in case it's spam.
Sign up, because at $40 per month, it will be a bargain if you win thousands in scholarships.
Don't sign up unless your parent says it's OK to use their credit card for the payments.
Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites.
Which of these options depicts 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
In order to qualify for financial aid, which form must you file?
FAFSA
Financial Aid Letter
EFC
SAR
Which of the formulas below equates to net price?
Sticker price minus student loans = net price
Grants and scholarships + student loans = net price
Sticker price minus grants and scholarships = net price
Sticker price + grants and scholarships = net price
Abby's family earns about $60,000 per year. She has been accepted to State University and Valley College and is comparing their financial aid packages. State University has a sticker price of $28,000 and net price of $12,000. Valley College has sticker price of $60,000 and net price of $9,000. Which statement below is FALSE?
If making a decision strictly based on cost, Janelle's best option is State University.
Valley College is providing Janelle more grants and scholarships.
State University has a lower sticker price than Valley College.
One factor that impacts net price is family income.
Which type of financial aid am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate.
Work-Study
Subsidized federal loan
Unsubsidized federal loan
Grants
Ashley lives on campus. Which of the following cost categories can she most likely remove from her budget?
Tuition for the semester.
Meal plan for the semester.
Monthly on-campus parking permit.
Books for her classes.
When filing your FAFSA, you’ll need each of the following documents EXCEPT...
Tax return from 2 years ago for you and your parents (in most cases).
Social Security card, driver’s license, or proof of permanent residency.
Bank and/or investment statements (if applicable).
Proof of employment.
What is a good rule of thumb to consider when it comes to student loan debt?
You should never borrow money to go to college because it is unlikely that you will be able to pay it back.
You should borrow as much money as you can through private loans and then take out federal loans.
You should borrow as much as your college says you should borrow as laid out in your financial aid offer letter.
You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college.
When Brayden receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. Which piece of advice is LEAST useful in this situation?
“You should start the semester, hope the college doesn't notice the shortage, and then deal with the consequences later if they catch you.”
“You should call the financial aid office, explain the situation, and ask them to review your materials again.”
“Your parents should take out a Direct PLUS Loan for the other $6000.”
“You should apply for additional scholarships or grants that are being offered from other organizations.”
Which of the following is a good strategy to use when it comes to paying for college?
Only report your own earnings and savings, not those of your parents, even if you live with them full-time.
See how much you can borrow in loans before applying for scholarships.
Spend the money that you earn from your summer job so you can get more financial aid.
Save your earnings from your summer job so that you can reduce the amount of loans you need to take.
What is one advantage of Federal student loans?
Federal student loans do not need to be repaid.
Federal student loans do not require you to complete the FAFSA.
Federal student loans have lower credit standards (are easier to get) than private loans, which may require a co-signer.
Federal loans don't charge any interest for the entire term of the loan.
Your financial aid package at your dream school includes eligibility for a work-study job. Which of these is a valid reason for rejecting that opportunity?
Work-study jobs pay less than minimum wage, so it’s usually not worth the time.
The amount you earn through work-study will eventually need to be repaid in your student loan debt, with interest, making it a bad deal.
Once you accept a work-study job, you are not legally allowed to accept any other part-time work.
If you cannot handle the time commitment of academics and the work-study job, your grades might suffer.
Carter is comparing different financial aid offers he has received. He notices that some of the letters do not contain sufficient information for him to determine the net price for that school. What is the BEST course of action that Carter can take?
Nothing - Carter can assume that he will receive the information he needs in future mail/email from the college.
Carter should contact the financial aid office at each school to ask for the missing information.
Carter should talk to the guidance counselor at his high school to get the most updated information for each college.
Carter should do research online to find the missing information.
How much does it cost to file the FAFSA?
Nothing; 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 Report.
Once you are ready to start repaying your student loans.
Which of the following statements about applying for grants and scholarships is FALSE?
Colleges often offer merit-based (rewarding your accomplishments) and need-based (depending on your financial situation) scholarships.
While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored funds.
You should not have to pay money or provide sensitive information, such as your SSN, when applying for scholarships.
While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for.
As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. What does this mean?
You can expect to receive $10,000 in grants from the federal government to pay for college.
You should only apply to schools that cost $10,000 or less.
You can expect to receive $10,000 in loans from the federal government to pay for college.
The government expects that your family can contribute about $10,000 to the cost of your education.
Ibrahim's tuition, room & board, and fees for freshman year total $26,000. Using scholarships, grants, and Federal student loans, his financial aid package is $26,500. What option below is both realistic and financially responsible?
Ibrahim should use the remaining $500 to cover all other expenses during freshman year.
Ibrahim should take out a private loan and limit himself to $8000 in other expenses freshman year.
Ibrahim should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses.
Ibrahim should not choose this college because he cannot afford it.
Each of the following organizations offers grants to college students EXCEPT…
the federal government.
colleges.
private companies.
FAFSA.
Which of these two documents are the same?
FAFSA and Student Aid Report
Student Aid Report and Financial Aid Package
Financial Aid Package and Financial Aid Offer
Financial Aid Package and Acceptance Letter
As you make decisions during college, you should focus on…
Minimizing your student loan debt at all costs.
Having fun, because you’re only in college once.
Focusing entirely on your studies to maximize your GPA.
Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college.
You will find each of the following pieces of information on your student Aid Report (SAR) except...
a record of the answers you submitted on your FAFSA.
your Expected Family Contribution (EFC).
your eligibility for federal student aid.
a record of all scholarships you have applied for.
You’ll need a budget once you get to college, so that you aren’t overspending each month. Which piece of advice is MOST useful?
Have a conversation with your parent(s) beforehand, so you understand who will pay for which monthly expenses.
Budget $25/month for everything not included in your financial aid package, such as off-campus dining, social events, etc.
Apply for a private bank loan to cover all your unexpected expenses.
The summer before college, save an emergency fund of at least $400 to cover you for the year.
If you were asked, could you explain three key differences between federal and private student loans?
If you were asked, what would you say is one common misconception students have that prevent them from filing the FAFSA?
You just received your financial aid offer and you see that you’ve been offered a Direct Subsidized Loan and a Direct Unsubsidized Loan. Assuming you accept both loans, how would you explain how your monthly payments after graduating will be different for the two loans?
You are an education major, and part of your financial aid money is the money you earn as a tutor.
scholarship
grant
work study
loan
You are majoring in chemistry and entering your third year of college. You receive money from the federal government through a program that awards financial aid to students majoring in science, technology, engineering and math.
scholarship
grant
work study
loan
You receive $500 from the local cultural society.
scholarship
grant
work study
loan
Your father lost his job and the family's income became much lower. You receive money from the government to pay for college.
scholarship
grant
work study
loan
You borrowed money through a federal program to pay for your education this year.
scholarship
grant
work study
loan
You entered your painting in a contest and won $750 to pay for your college expenses.
scholarship
grant
work study
loan
You work in an office on campus after class every day.
scholarship
grant
work study
loan
You received $3000 per year from the lottery funds in your state. Every high school graduate can receive this aid if they attend an in-state college.
scholarship
grant
work study
loan
You received $4000 from the federal government because you promised to teach in a school that serves low-income students after graduation. If you change your mind, you will have to repay the full amount.
scholarship
grant
work study
loan
You were a high school athlete. The university is paying your tuition while you play on the college team.
scholarship
grant
work study
loan
Your parents borrowed money through a US government program for parents of college students.
scholarship
grant
work study
loan
You were raised by a single parent. Your family income qualified you to receive a need-based award from the US government.
scholarship
grant
work study
loan
You are going to school to study voice performance, and you receive $1000 per semester because you sing in the college choir.
scholarship
grant
work study
loan
You work 20 hours per week in the library at your college.
scholarship
grant
work study
loan
Your family qualified for a federal government program that reduced the interest on the money you borrowed to pay for college.
scholarship
grant
work study
loan
Your mom works for a company that will pay 50% of your tuition at any in-state public college.
scholarship
grant
work study
loan
You receive a $1000 award to help pay for college from a local community organization in recognition of your volunteer activities.
scholarship
grant
work study
loan
Your other financial aid did not cover all of your college costs, so you borrowed money from a private lender.
scholarship
grant
work study
loan
You work in the college's computer lab three days per week.
scholarship
grant
work study
loan
Your PSAT scores qualified you as a National Merit Scholar. Several schools have offered you free tuition.
scholarship
grant
work study
loan
