WorksheetsPaying for College -Practice Test
Total questions: 25
Worksheet time: 25mins
1. 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
2. During a period of financial hardship, you can apply for this to pause student loan payments while interest still accrues…
Grace period
Grants and scholarships
FAFSA
Forbearance
3. 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
4. In order to qualify for financial aid, which application must you submit?
FAFSA
PLUS
SAVE
SAI
5. 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
6. 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
7. Which of the following is considered a direct cost of attendance?
Travel expenses
Cell phone bill
Tuition
Food and entertainment
8. 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
9. 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
10. 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
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?
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
12. 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
13. Who is eligible to receive Direct Subsidized loans?
Graduate students
Professional students
Undergraduate students
Students enrolled less than half-time
14. 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
16. 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
17. 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
18. 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
19. 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
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?
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
21. Each of the following organizations offers grants to college students EXCEPT…
the federal government
colleges
private companies
FAFSA
22. 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
23. 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
24. 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
25. 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
