WorksheetsQ4. INTRO TO FINANCIAL AID
Total questions: 41
Worksheet time: 36mins
Roughly speaking, the EFC is calculated by adding together which two sums?
parent income and student assets
student assets and parent assets
expected student contribution and expected parent contribution
student income and parent income
This type of aid is based on financial status:
merit
loans
federal
need-based
The repayment period for federal student loans usually begins:
after graduation
when the student gets a job
six months after the student receives the money
the day the money is received by the student
This type of federal loan does not cover the cost of interest for a student:
subsidized
merit
grant
unsubsidized
This type of aid is usually based on academic skills or talent and does not need to be repaid:
merit
federal
loans
need-based
All of the following are examples of financial aid EXCEPT:
scholarships
subsidies
grants
loans
What is EFC?
Expected Family Contribution
Extreme Funding Challenge
Extra Funding Contribution
Earning Funding Costs
Estimated Family Cost
How does a college determine financial need?
COA + EFC = Financial Need
COA - grants = Financial Need
EFC + scholarships received = Financial Need
COA - scholarships received = Financial Need
What type of aid is considered merit-based?
Work-study
Unsubsidized loans
Scholarships
Grants
What is COA?
Costs over Aid
Cost of Attendance
Combination of Attendance costs
Cost of Aid
What is a form of non-need-based aid?
FAFSA
Scholarships
Subsidized loans
Unsubsidized loans
Grants
Which of the following statements is TRUE about the value of a college degree?
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, more than a high school graduate over a career
A college graduate typically earns less than someone with a high school diploma for the first 10 years
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
In order to qualify for financial aid, which application must you submit?
FAFSA
PLUS
SAVE
SAI
Which of the formulas below correctly calculates net price?
Sticker price - student loans = net price
Grants and scholarships + student loans = net price
Sticker price - grants and scholarships = net price
Sticker price + grants and scholarships = net price
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
Which of the following is considered a direct cost of attendance?
Travel expenses
Cell phone bill
Tuition
Food and entertainment
Who receives and uses the information submitted in your FAFSA?
Your employer to see if you’ll still be able to work while attending college
Your parents to keep track of your progress at college
The federal government for tax purposes
The schools you’ve applied to and your state government to determine your eligibility for financial aid
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
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
Who is eligible to receive Direct Subsidized loans?
Graduate students
Professional students
Undergraduate students
Students enrolled less than half-time
Which of the following ways to pay for college is MOST likely to be based on someone's financial need?
Direct PLUS Loans
Grants
Scholarships
Federal Subsidized Loans
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
Your school counselor is a great resource for all of the following EXCEPT...
Providing information about scholarships and grants you wouldn’t be able to find elsewhere
Negotiating lower interest rates with your lenders
Suggesting specific scholarship and grant opportunities based on your personal strengths and accomplishments
Comparing different colleges, their costs of attendance, and financial aid offers
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
Keith's tuition, room & board, and fees for freshman year total $26,000. Including scholarships, grants, and federal student loans, his financial aid package is $25,500. Which option below is both realistic and the most financially responsible?
Keith’s financial aid package covers all of his necessary costs, so there is no need for him to do anything else
Keith should take out a private loan and limit himself to $8000 in other expenses freshman year
Keith should pick up a part-time job to cover his remaining costs and personal expenses
Keith should not attend 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 the following is the default federal student loan repayment plan college graduates are entered into, requires the same minimum payment for the life of the loan, and ensures the borrower will pay the loan in full in ten years?
Standard repayment plan
Graduated repayment plan
Extended repayment plan
Income-driven repayment plan
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 FAFSA Submission Summary EXCEPT...
a record of the answers you submitted on your FAFSA
your Student Aid Index (SAI)
your eligibility for federal student aid
a record of all scholarships you have applied for
Which of the following is a benefit of an income-driven repayment plan?
Theoretically, your payment should never be more than you can afford
You will pay the least amount of interest over the life of the loan when compared to other loans
They're structured to be paid off in 5-10 years
Even if you start to make more money, your monthly payments won't change
Describe at least three differences between federal and private student loans.
Briefly explain the difference between direct and indirect costs of attending college and provide an example of each type of cost.
Your friend has asked you for advice in choosing the best federal student loan repayment plan for after college graduation. They told you that they have a job lined up that won’t pay very much at first, but after a few years with the company their salary will increase significantly. What repayment plan would you recommend and why?
Explain why it’s important to submit your FAFSA as soon as possible after it opens in October.
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, explain how interest is handled differently between these two types of loans and how that can impact your monthly payments.
Your younger cousin Mary is a rising senior in high school this year and has been researching the cost of attendance at several colleges. She emails you because she knows that you have just learned about paying for college and she has some serious concerns. Here are some excerpts from her email: - Despite her strong academic performance in high school and her interest in pursuing a career in chemical engineering, Mary reveals, “I’m starting to think that college just isn’t worth it. I don’t see how a college degree is going to help me in the future if it costs so much. Aren’t I better off just going straight into a job with my high school degree and saving my money?” - “I’ve been looking at the published costs of attendance on college websites, and they're insanely high! There’s no way my family and I can afford such prices.” - “I know financial aid is available for students, but I don’t know what types there are, let alone how to apply for financial aid. Even if I knew how to apply, should I apply? I don’t think I’ll qualify and I don’t want to put in all that work for nothing.” - “I know that I have to start paying my loans right after I graduate college. But what if I don’t have a job by that time? And what if I can’t afford my monthly payments? I don’t want to take that risk.” You recognize that Mary has a few misconceptions and gaps in knowledge about how to pay for college and want to make sure that she makes a decision based on the right information. In 4-5 paragraphs, respond to Mary about each of her concerns.
