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Paying for College - Unit Test Review

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

1. Considering the career earnings of Benjamin, a college graduate, and David, a high school graduate, which of the following statements is TRUE?

a)

David can expect to earn about the same as Benjamin over their careers

b)

Benjamin can expect to have a starting salary over $60,000 right after college

c)

Benjamin can expect to earn, on average, more than David over their careers

d)

Benjamin typically earns less than David for the first 10 years after graduation

2.

2. During a period of financial hardship, Ethan can apply for this to pause student loan payments while interest still accrues...

a)

Grace period

b)

Grants and scholarships

c)

FAFSA

d)

Forbearance

3.

Avery is evaluating different types of financial aid for college. Which of these options lists 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

4.

Ethan is planning to attend college next year. In order to qualify for financial aid, which application must he submit?

a)

FAFSA

b)

PLUS

c)

SAVE

d)

SAI

5.

Sophia is reviewing her college expenses. Which of the formulas below correctly calculates her net price?

a)

Sticker price - student loans = net price

b)

Grants and scholarships + student loans = net price

c)

Sticker price - grants and scholarships = net price

d)

Sticker price + grants and scholarships = net price

6.

Emma is currently enrolled in college full-time. The federal government makes interest payments on __________ while Emma is in school, for the first six months after she leaves school, and during any period of deferment.

a)

Work-Study

b)

Subsidized federal loans

c)

Unsubsidized federal loans

d)

Grants

7.

Emma is reviewing her college expenses. Which of the following is considered a direct cost of attendance?

a)

Travel expenses

b)

Cell phone bill

c)

Tuition

d)

Food and entertainment

8.

8. Who receives and uses the information submitted in Charlotte's FAFSA?

a)

Her employer to see if she’ll still be able to work while attending college

b)

Her parents to keep track of her progress at college

c)

The federal government for tax purposes

d)

The schools she’s applied to and her state government to determine her eligibility for financial aid

9.

Sophia is planning how to finance her college education. What types of money should she consider using, and in what order should she use them?

a)

Her money, borrowed money, free money

b)

Borrowed money, her money, free money

c)

Her money, free money, borrowed money

d)

Free money, her money, borrowed money

10.

Although it’s not a type of financial aid, how can transferring credits from a community college help save William money on college costs?

a)

It reduces the amount of credits William will have to pay for at his 4-year college

b)

Colleges will pay William for any credits transferred from a community college

c)

The cost of community college credits can be deducted on William's taxes

d)

Transferring credits from a community college makes William eligible for lower interest rates when taking out federal student loans

11.

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?

a)

It will cost less to attend College A

b)

College B is providing Janelle more grants and scholarships

c)

College A has a lower sticker price than College B

d)

It will cost less to attend College B

12.

12. Jackson is planning how to finance his college education. Which of the following is a good strategy for him?

a)

Only report his own earnings and savings, not those of his parents, even if he lives with them full-time

b)

See how much he can borrow in loans before applying for scholarships

c)

Spend the money he earns from his summer job so he can get more financial aid

d)

Save his earnings from his summer job so that he can reduce the amount of loans he needs to take

13.
13. Who is eligible to receive Direct Subsidized loans?
a)
Graduate students
b)
Professional students
c)
Undergraduate students
d)
Students enrolled less than half-time
14.

14. James is exploring ways to pay for college that are MOST likely to be based on his financial need. Which of the following options should he consider?

a)

Direct PLUS Loans

b)

Grants

c)

Scholarships

d)

Federal Subsidized Loans

15.

Mason is considering pausing his student loan payments while he returns to school. Which repayment option does not accrue interest while his required payments are paused?

a)

Consolidation

b)

Deferment

c)

Refinancing

d)

Forbearance

16.

16. Hannah is applying for college and needs to file the FAFSA. How much does it cost to file the FAFSA?

a)

It is free

b)

It is free the first time you file, but costs $9.99/year thereafter

c)

It is 2% of your total loan amount

d)

$50

17.

17. Typically, when should William first file the FAFSA?

a)

After he finishes freshman year of high school

b)

October or November of his last year of high school

c)

After he receives his Student Aid Index

d)

Once he is ready to start repaying his student loans

18.

18. Evelyn is considering her school counselor as a resource for all of the following EXCEPT...

a)

Providing information about scholarships and grants she wouldn’t be able to find elsewhere

b)

Negotiating lower interest rates with her lenders

c)

Suggesting specific scholarship and grant opportunities based on her personal strengths and accomplishments

d)

Comparing different colleges, their costs of attendance, and financial aid offers

19.

Aria is applying for college financial aid. Which of the following is TRUE about the Student Aid Index (SAI) in her case?

a)

The LOWER her SAI, the MORE financial aid she is eligible for

b)

The HIGHER her SAI, the MORE financial aid she is eligible for

c)

The LOWER her SAI, the LESS financial aid she is eligible for

d)

Her SAI does not impact how much financial aid she is eligible for

20.

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?

a)

Keith’s financial aid package covers all of his necessary costs, so there is no need for him to do anything else

b)

Keith should take out a private loan and limit himself to $8000 in other expenses freshman year

c)

Keith should pick up a part-time job to cover his remaining costs and personal expenses

d)

Keith should not attend this college because he cannot afford it

21.

Benjamin is researching organizations that offer grants to college students. He found that all of the following organizations offer grants EXCEPT...

a)

the federal government

b)

colleges

c)

private companies

d)

FAFSA

22.

Ava recently graduated and is reviewing her student loan repayment options. Which of the following is the default federal student loan repayment plan she would be entered into, requires the same minimum payment for the life of the loan, and ensures she will pay the loan in full in ten years?

a)

Standard repayment plan

b)

Graduated repayment plan

c)

Extended repayment plan

d)

Income-driven repayment plan

23.

23. As Evelyn makes decisions during her college years at the University of Example, she should focus on...

a)

Minimizing her student loan debt at all costs

b)

Having fun, because she’s only in college once

c)

Focusing entirely on her studies to maximize her GPA

d)

Balancing her academic, social, and financial decisions to make the most out of the entire experience while setting herself up for success post-college

24.

24. Emma is reviewing her FAFSA Submission Summary. She will find each of the following pieces of information on it EXCEPT...

a)

a record of the answers she submitted on her FAFSA

b)

her Student Aid Index (SAI)

c)

her eligibility for federal student aid

d)

a record of all scholarships she has applied for

25.

Aria is considering different repayment plans for her student loans. Which of the following is a benefit of an income-driven repayment plan?

a)

Theoretically, her payment should never be more than she can afford

b)

She will pay the least amount of interest over the life of the loan when compared to other loans

c)

They’re structured to be paid off in 5-10 years

d)

Even if she starts to make more money, her monthly payments won’t change