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Paying for College Assessment

Total questions: 34

Worksheet time: 9hrs 30mins

Name
Class
Date
1.

Read this common statement about the value of education. Is it true or false?


"A college graduate can expect to earn, on average, about $1 million more than a high school graduate over a career."

a)

True

b)

False

2.

What are some good questions to ask yourself when choosing a major in college? Select all that apply.

a)

Will this degree help me to get a good job?

b)

Will this degree help me to get a job that I want to do?

c)

Does this major require a lot of early morning classes?

d)

Will this degree be fun?

3.

What is the difference between the sticker price and the net price of the cost of attending a specific college?

a)

Sticker price is what they advertise in the brochure while net price is what you will actually pay.

b)

Net price is what they advertise in the brochure while sticker price is what you will actually pay.

c)

They are the same.

4.

Which of the following statements is TRUE about filing the FAFSA?

a)

You need to file the FAFSA for every year you will be in school no matter what.

b)

You only need to file the FAFSA if you received a tax refund.

c)

You only need to file the FAFSA if your parent/guardian's financial situation has changed.

d)

You only need to file the FAFSA if your financial situation has changed.

5.

Why is it important to only borrow what you actually need for college?

a)

Because you will have to pay it back with interest.

b)

Because if you get caught borrowing too much, you'll go to jail.

c)

Because you might run out of money if you have too much money.

6.

Which of these are advantages of federal student loans over private student loans? Select two that apply.

a)

Federal student loans almost always have a lower interest rate.

b)

Federal student loans tend to have more options for how to pay them back affordably.

c)

Federal student loans are unlimited.

d)

You don't have to pay back federal student loans.

7.

What month is the FAFSA due by?

a)

June

b)

October

c)

May

d)

February

8.

Which of these is a good strategy when taking out student loans?

a)

Only borrow what you actually really need to.

b)

Take out as much money as possible so that you don't have to stress about money while in school.

c)

Only borrow money from banks instead of the government.

d)

Take out a lot of loans and then declare bankruptcy so that you don't have to pay them back.

9.

What is the difference between grants and scholarship?

a)

Grants are generally need based while scholarships are awarded based on academic or other criteria.

b)

Scholarships are generally need based while grants are awarded based on academic or other criteria.

c)

You have to pay grants back while scholarships are free money.

d)

You have to pay scholarships back while grants are free money.

10.

Which of the following is the biggest cost in paying for college for most students?

a)

Tuition and fees

b)

Room and board

c)

Books and supplies

d)

Personal expenses

11.

Your parent/guardian can use your FSA ID to submit any information for your FAFSA application.

a)

True

b)

False

12.

The higher your Expected Family Contribution, the _________________ financial aid you will likely receive.

a)

More

b)

Less

13.

What is a promissory note?

a)

The contract you sign that obligates you to pay back a loan.

b)

The contract you sign with your college promising to get good grades.

c)

The contract you sign with your college stating that you will attend.

d)

The form you fill out to be eligible to receive financial aid.

14.

Which of these is the best option for paying for college?

a)

Grant

b)

Federal student loan

c)

Private student loan

d)

Work-study

15.

What does FAFSA stand for?

a)

Financial Assistance for Students' Aid

b)

Federal Assistance For Student Aid

c)

Free Application for Federal Student Aid

d)

Financial Aid for Student Assistance

16.

Which types of student loans require a credit check

a)

Private Loans

b)

Stafford Loans

c)

Perkins Loans

d)

All of the above

17.

The phrase "going to college" refers to any post secondary training or instruction you receive which includes trade school, certification courses, two year and four year institutions.

a)

True

b)

False

18.

Which of these options depicts the types of financial aid from MOST attractive to LEAST attractive?

a)

Private loans, Federal loans, Work-study, Grants/Scholarships

b)

Grants/Scholarships, Work-study, Federal loans, Private loans

c)

Work-study, Grants/Scholarships, Federal loans, Private loans

d)

Federal loans, Grants/Scholarships, Work-study, Private loans

19.

Which of the formulas below equates to net price?

a)

Sticker price minus student loans = net price

b)

Grants and scholarships + student loans = net price

c)

Sticker price minus grants and scholarships = net price

d)

Sticker price + grants and scholarships = net price

20.

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

a)

If making a decision strictly based on cost, Janelle's best option is State U

b)

Greenlawn College is providing Janelle more grants and scholarships

c)

State U has a lower sticker price than Greenlawn College

d)

One factor that impacts net price is family income

21.

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.

a)

Work-Study

b)

Subsidized federal loan

c)

Unsubsidized federal loan

d)

Grants

22.

When filing your FAFSA, you’ll need each of the following documents EXCEPT...

a)

Tax return from 2 years ago for you and your parents (in most cases)

b)

Social Security card, driver’s license, or proof of permanent residency

c)

Bank and/or investment statements (if applicable)

d)

Proof of Employment

23.

What is a good rule of thumb to consider when it comes to student loan debt?

a)

You should never borrow money to go to college because it is unlikely that you will be able to pay it back

b)

You should borrow as much money as you can through private loans and then take out federal loans

c)

You should borrow as much as your college says you should borrow as laid out in your financial aid offer

d)

You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college

24.

Which of the following is a good strategy to use when it comes to paying for college?

a)

Only report your own earnings and savings, not those of your parents, even if you live with them full-time

b)

Spend the money that you earn from your summer job so you can get more financial aid

c)

Spend the money that you earn from your summer job so you can get more financial aid

d)

Save your earnings from your summer job so that you can reduce the amount of loans you need to take

25.

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?

a)

Work-study jobs pay less than minimum wage, so it’s usually not worth the time

b)

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

c)

Once you accept a work-study job, you are not legally allowed to accept any other part-time work

d)

If you cannot handle the time commitment of academics and the work-study job, your grades might suffer

26.

Fred is comparing different financial aid offers he has received. He notices that some of the offers do not contain sufficient information for him to determine the net price for that school. What is the BEST course of action that Fred can take?

a)

Nothing - Fred can assume that he will receive the information he needs in future mail/email from the college.

b)

Fred should contact the financial aid office at each school to ask for the missing information.

c)

Fred should talk to the guidance counselor at his high school to get the most updated information for each college.

d)

Fred should do research online to find the missing information.

27.

Typically, when should you first file the FAFSA?

a)

After you finish freshman year of high school

b)

October or November of your last year of high school

c)

After you receive your Student Aid Report

d)

Once you are ready to start repaying your student loans

28.

Which of these two documents are the same?

a)

FAFSA and Student Aid Report

b)

Student Aid Report and Financial Aid Package

c)

Financial Aid Package and Financial Aid Offer

d)

Financial Aid Package and Acceptance Letter

29.

You will find each of the following pieces of information on your student Aid Report (SAR) except...

a)

a record of the answers you submitted on your FAFSA.

b)

your Expected Family Contribution (EFC)

c)

your eligibility for federal student aid

d)

a record of all scholarships you have applied for.

30.

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?

a)

Have a conversation with your parent(s) beforehand, so you understand who will pay for which monthly expenses

b)

Budget $25/month for everything not included in your financial aid package, such as off-campus dining, social events, etc.

c)

Apply for a private bank loan to cover all your unexpected expenses

d)

The summer before college, save an emergency fund of at least $400 to cover you for the year

31.

The HELP Grant pays for

a)

full tuition, room and board and fees.

b)

full tuition and required fees.

c)

room and board plus required fees.

d)

books, full tuition, room & board, plus required fees.

32.

Which Mississippi Grant am I?

* PAYS $2500 per year

*Requires 29 ACT

*Requires 3.5 GPA

a)

MTAG

b)

MESG

c)

HELP

d)

FAITH

33.

Which Mississippi Grant am I?

*$500 per year for freshmen or sophomores

*$1000 per year for juniors or seniors

*Requires 15 ACT

*Requires 2.5 GPA

*Cannot be full pell-eligible

a)

MTAG

b)

MESG

c)

HELP

d)

FAITH

34.

How many public universities are in Mississippi?

a)

8

b)

10

c)

6

d)

14