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WorksheetsReview Unit 4A: Paying for College
Total questions: 34
Worksheet time: 20mins
All of the following are good ways to prepare for paying for college EXCEPT…
Contributing to a 529 plan
Building a savings
Pursuing grants and scholarships
Taking out student loans
Your friend has chosen what college they’re going to attend and says they want to lower the total amount of money they’ll have to budget for while in school. Which of the following should you tell them to focus on?
Indirect costs
Tuition
Direct costs
Room and board
Which formula is used to calculate the net price of a college?
Sticker price + grants and scholarships = net price
Sticker price + value = net price
Sticker price – grants and scholarships = net price
Sticker price - value = net price
All of the following statements about the FAFSA are true EXCEPT…
It is used to determine how much and what kind of financial aid you’re eligible for
It’s best to submit your FAFSA application later in the filing period so you know what types of aid are available
There are different school, state, and federal deadlines for filing the FAFSA
To receive financial aid, you’ll need to submit the FAFSA for each year you’ll be attending college
Jenny receives her FAFSA Submission Summary a few days after filing the FAFSA electronically. Which of the following should she expect to find in this document?
Admission offers from the schools she included in her FAFSA
Discounts on tuition at certain colleges based on her financial need
Career counseling that is offered to all FAFSA filers
A record of her FAFSA answers, her SAI, financial aid eligibility, and more
What is the relationship between your Student Aid Index (SAI) and your likelihood of qualifying for financial aid?
A higher SAI means you’ll likely qualify for MORE financial aid
A higher SAI means you’ll likely qualify for LESS financial aid
Your SAI is equal to the amount of financial aid you’re eligible to receive
Your SAI has no effect on how much financial aid you’ll qualify for
Match the term found in the FAFSA Submission Summary with its definition.
Student Aid Index (SAI)
A four-digit data number used to allow colleges to make changes on your behalf or to make corrections by phone
When your school contacts you to check that the data reported on your FAFSA is correct, including asking for supporting income and documentation
The number that a college uses to determine how much federal student aid the student would receive if the student attended the school
Match the term found in the FAFSA Submission Summary with its definition.
DRN
A four-digit data number used to allow colleges to make changes on your behalf or to make corrections by phone
When your school contacts you to check that the data reported on your FAFSA is correct, including asking for supporting income and documentation
The number that a college uses to determine how much federal student aid the student would receive if the student attended the school
Match the term found in the FAFSA Submission Summary with its definition.
Verification
A four-digit data number used to allow colleges to make changes on your behalf or to make corrections by phone
When your school contacts you to check that the data reported on your FAFSA is correct, including asking for supporting income and documentation
The number that a college uses to determine how much federal student aid the student would receive if the student attended the school
Your friend tells you they’ve submitted their FAFSA and they’re ready to start accepting financial aid. What type of aid should they accept first?
Federal student loans
Private student loans
Work study
Grants and scholarships
All of the following are possible sources of grants and scholarships EXCEPT…
Government
Non-profit organizations
Your parents
Private businesses
Your friend is an exceptional softball player who’s broken records at your school. What type of financial aid would be most applicable to those achievements?
Scholarships
Grants
Work study
Student loans
Which of the following actions would MOST likely increase your cost of attending college?
Taking out a federal student loan rather than a private student loan
Using grants and scholarships to pay for college costs
Accepting a work study position
Attending an out-of-state college
Which of the following types of federal student loans can be taken out by your parents/guardian to help pay for your college education?
Subsidized Direct Loans
Unsubsidized Direct Loans
Direct PLUS Loans
Parents cannot take out federal student loans
All of the following statements about private student loans are true EXCEPT…
Part of the interest charged is subsidized by the U.S. government
You may need to start paying them back as soon as you accept them
Their interest rates can be variable or fixed
They are unlikely to be eligible for student loan forgiveness
Which debt range contains the MOST borrowers?
(a)
In the debt range contains the MOST borrowers, how many borrowers are in that range?
(a)
How many student loan borrowers owe more than $100,000?
(a)
The average starting salary for a college graduate is approximately $55,000. What percentage of student loan borrowers have LESS than $60,000 in debt?
Round to the nearest whole percent. Make sure to include %.
(a)
What percentage of student loan borrowers have 100K or more in debt?
Round to the nearest whole percent. Make sure to include %.
(a)
All of the following are key components of your Student Aid Report EXCEPT…
Your class schedule
Cost of attendance
Types of financial aid
Net price
Your college’s cost of attendance is $12,000, you will be receiving $5,000 in scholarships and grants, and you plan on taking out $6,000 in student loans. What is your net price?
$1,000
$7,000
$11,000
$23,000
All of the following must be done in order to accept your financial aid offer EXCEPT…
Review your Student Aid Report
Sign and return your promissory note
Complete entrance counseling
Make a deposit to secure your student loans
What is the estimated annual Total Cost of Attendance?
$30,444
$15,222
$17,952
$12,508
What are the estimated annual indirect costs of attending this college (ie. books & supplies, transportation, and personal costs)?
$1,100
$2,578
$4,278
$12,042
How much of the offered annual aid would Buckingham Badger not need to pay back?
$17,952 (Estimated Net Price)
$17,936 (Federal Loans + Grants & Scholarships)
$12,492 (Grants & Scholarships)
$12,042 (Grants only)
Which financial aid package options would be reduced by fees (deducted from each loan distribution)?
UW Engineering Alumni Fund
UW Madison Grant
Federal Pell Grant
Direct Subsidized Federal Loan
After accounting for grants, scholarships, and loans, how much will Buckingham Badger still have remaining to pay for their first year of college?
$12,508
$15,222
$17,952
$30,444
Fill in the blanks: _____________________ - grants and scholarships = ______________________.
cost of attendance; sticker price
scholarship; net price
cost of attendance; net price
net price; sticker price
Which sentence is TRUE?
Federal student loans will never accrue interest until graduation
Federal Direct Subsidized student loans do not need to be repaid
You must accept ALL the aid in a financial aid offer
You can accept some of the aid offered and decline some of it
Which value gives the BEST estimate of how much you’ll end up paying for a year of college?
Total cost of attendance
Direct costs
Net price
Cost of attendance minus grants, scholarships, and loans
Ideally, which repayment plan would you choose in order to pay the lowest total amount of interest?
Standard
Graduated
Extended
Income-driven
Consolidation __________ your monthly payment and often means you will pay __________ in interest over the life of your loan.
raises, less
raises, more
lowers, less
lowers, more
Which of the following statements about forbearance is true?
You don’t have to make monthly payments and interest does not accrue
You don’t have to make monthly payments but interest still accrues
You have to make regular monthly payments but interest does not accrue
You have to make regular monthly payments and interest accrues
