WorksheetsPaying for College Unit Test
Total questions: 25
Worksheet time: 13mins
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 (a) 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
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
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
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
As soon as it opens
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
Each of the following organizations offers grants to college students EXCEPT...
the federal government
colleges
private companies
FAFSA
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. a record of the answers you submitted on your FAFSA
b. your Student Aid Index (SAI)
c. your eligibility for federal student aid
d. a record of all scholarships you have applied for
Identify the differences between federal and private student loans.
Federal loans are offered by the government, while private loans are offered by private lenders.
Federal loans often have lower interest rates compared to private loans.
Private loans may require a credit check, whereas federal loans do not.
Federal loans are only available to undergraduate students.
Briefly explain the difference between direct and indirect costs of attending college and provide an example of each type of cost.
Direct costs include tuition and fees, while indirect costs include transportation and personal expenses.
Direct costs include transportation and personal expenses, while indirect costs include tuition and fees.
Direct costs and indirect costs both include only tuition and fees.
Indirect costs include only tuition, while direct costs include only personal expenses.
Explain why it’s important to submit your FAFSA as soon as possible after it opens in December.
To ensure you receive the maximum amount of financial aid available.
To avoid missing the deadline for submission.
To reduce the amount of paperwork required.
To increase your chances of getting a scholarship.
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 is interest handled differently between these two types of loans and how can that impact your monthly payments?
Interest on Direct Subsidized Loans is paid by the government while you are in school, whereas interest on Direct Unsubsidized Loans accrues during all periods.
Interest on both Direct Subsidized and Unsubsidized Loans is paid by the government while you are in school.
Interest on Direct Unsubsidized Loans is paid by the government while you are in school, whereas interest on Direct Subsidized Loans accrues during all periods.
Interest on both Direct Subsidized and Unsubsidized Loans accrues during all periods.
Which of the following is NOT a factor in determining your eligibility for federal student aid?
Your family's income
Your academic performance
Your enrollment status
Your citizenship status
What is the main purpose of the FAFSA application?
To apply for student loans
To determine eligibility for federal student aid
To apply for college admission
To calculate your expected family contribution
What is one benefit of applying for scholarships early in your college application process?
It guarantees acceptance into any college of your choice
It increases your chances of receiving financial aid before funds run out
It allows you to skip the FAFSA application
It ensures you will not have to take any student loans
