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Paying for College Vocabulary

Total questions: 40

Worksheet time: 20mins

Name
Class
Date
1.

What is Capitalized Interest?

a)

Unpaid interest added to the principal balance of a loan

b)

A type of loan for undergraduate students

c)

A fee charged for late payments

d)

A grant given to students

2.

Who is a Cosigner?

a)

A person who receives a loan

b)

Someone who legally agrees to take responsibility for a person's debt if they cannot repay it

c)

A financial advisor

d)

A loan officer

3.

What does Cost Of Attendance include?

a)

Only tuition fees

b)

Tuition, room and board, fees, books, supplies, transportation, health insurance, etc.

c)

Only room and board

d)

Only health insurance

4.

What is Default in terms of loans?

a)

Early repayment of a loan

b)

Long-term failure to repay a loan according to the terms agreed to

c)

A temporary pause in loan payments

d)

A reduction in loan interest

5.

What is Deferment?

a)

A process that allows a borrower to pause their federal student loan payments

b)

A penalty for late payments

c)

An increase in loan interest

d)

A type of scholarship

6.

What does Delinquency describe?

a)

The status of being ahead on loan payments

b)

The status of being behind on one or more loan payments

c)

The process of applying for a loan

d)

The approval of a loan application

7.

What are Direct Plus Loans?

a)

Loans for undergraduate students only

b)

A federal loan available to graduate or professional students and eligible parents of dependent undergraduate students

c)

A type of grant

d)

A scholarship for high-achieving students

8.

What is a Direct Subsidized Loan?

a)

A loan where the student pays interest while in school

b)

A federal student loan available to undergraduate students where the government pays interest while the student is in school

c)

A loan for graduate students only

d)

A private loan with high interest

9.

What is a Direct Unsubsidized Loan?

a)

A loan where the government pays the interest

b)

A federal student loan where the student is responsible for paying the interest while in school

c)

A grant for undergraduate students

d)

A scholarship for part-time students

10.

What is Disbursement in terms of student loans?

a)

The process of applying for a loan

b)

A portion of a federal student loan that the school pays out by applying the funds to the student's school account or by paying the borrower directly

c)

A penalty for late payments

d)

A reduction in loan interest

11.

What is Entrance Counseling?

a)

A session explaining loan repayment responsibilities after graduation

b)

A mandatory session before receiving a federal student loan

c)

A report summarizing FAFSA information

d)

A free online application for financial aid

12.

What is the purpose of Exit Counseling?

a)

To determine eligibility for financial aid

b)

To explain loan repayment responsibilities after graduation

c)

To summarize FAFSA submissions

d)

To offer financial aid packages

13.

What does a FAFSA Submission Summary contain?

a)

Information about loan interest rates

b)

A summary of federal student aid programs

c)

The information submitted in your FAFSA

d)

Details about scholarships and grants

14.

What is Federal Student Aid?

a)

A type of loan with a fixed interest rate

b)

The largest form of student aid in the country

c)

A process to pause student loan payments

d)

A period when loan payments are not required

15.

What is a Fixed-Rate Loan?

a)

A loan with a variable interest rate

b)

A loan with an interest rate that changes over time

c)

A loan with an interest rate that does not change

d)

A loan that is forgiven after graduation

16.

What is Forbearance?

a)

A type of financial aid that does not need to be repaid

b)

A process to pause federal student loan payments

c)

A mandatory session before receiving a loan

d)

A summary of FAFSA information

17.

What is the Free Application for Federal Student Aid (FAFSA)?

a)

A mandatory session before receiving a loan

b)

A free online application for financial aid

c)

A type of loan with a fixed interest rate

d)

A report summarizing FAFSA information

18.

What is Gift Aid?

a)

Financial aid that must be repaid

b)

Financial aid that does not have to be repaid

c)

A loan with a fixed interest rate

d)

A process to pause loan payments

19.

What is a Grace Period?

a)

A period when loan payments are required

b)

A period when loan payments are not required

c)

A type of financial aid that does not need to be repaid

d)

A mandatory session before receiving a loan

20.

What is the term for student aid that does not need to be repaid?

a)

Loan

b)

Grant

c)

Interest

d)

Fee

21.

What is usually expressed as a percent of the amount borrowed?

a)

Principal

b)

Loan

c)

Interest Rate

d)

Grant

22.

What process involves replacing one or more existing loans with a new loan at a lower interest rate?

a)

Loan Servicing

b)

Loan Consolidation

c)

Loan Refinancing

d)

Loan Repayment

23.

What allows a borrower to combine multiple federal loans into one?

a)

Loan Servicing

b)

Loan Refinancing

c)

Loan Consolidation

d)

Loan Repayment

24.

Who collects payments on a loan and responds to customer service inquiries?

a)

Loan Holder

b)

Loan Servicer

c)

Loan Consolidator

d)

Loan Refinancer

25.

What is a legal document promising to repay federal student loans?

a)

Loan Agreement

b)

Master Promissory Note

c)

Loan Contract

d)

Loan Statement

26.

What are expenses that are essential for living and functioning called?

a)

Wants

b)

Desires

c)

Needs

d)

Luxuries

27.

What is the actual cost a student pays to attend a school called?

a)

Gross Price

b)

Net Price

c)

Full Price

d)

Discounted Price

28.

What type of grant is awarded to students with exceptional financial need?

a)

State Grant

b)

University Grant

c)

Pell Grant

d)

Private Grant

29.

What is a fee charged for paying off a loan early?

a)

Late Fee

b)

Service Fee

c)

Prepayment Penalty Fee

d)

Processing Fee

30.

What is the original amount of money borrowed called?

a)

Interest

b)

Principal

c)

Loan

d)

Grant

31.

What is a Private Student Loan?

a)

A loan made by a bank, credit union, or other entity with set terms and conditions

b)

A loan provided by the federal government

c)

A scholarship awarded for academic merit

d)

A grant that does not need to be repaid

32.

What is the typical repayment period for Federal loans?

a)

5 to 15 years

b)

10 to 30 years

c)

20 to 40 years

d)

1 to 5 years

33.

What does a Repayment Plan outline?

a)

The cost of tuition and fees

b)

The terms of a scholarship

c)

Monthly loan payment, repayment period, and interest over the life of the loan

d)

The amount of financial aid awarded

34.

What does Room and Board refer to?

a)

Cost of textbooks and supplies

b)

Cost of housing and food while at college

c)

Cost of transportation and health insurance

d)

Cost of tuition and fees

35.

What is a Scholarship?

a)

A loan that must be repaid

b)

A type of aid awarded for academic merit or accomplishments that does not need to be repaid

c)

A federal program providing part-time jobs

d)

A numerical value used to determine financial need

36.

What is the Sticker Price?

a)

The cost of textbooks only

b)

The total expense of going to college, including tuition, room and board, and other fees

c)

The cost of room and board only

d)

The cost of transportation and health insurance only

37.

What is the Student Aid Index (SAI)?

a)

A list of available scholarships

b)

A numerical value used to determine a student's financial need for federal aid

c)

A guide to college expenses

d)

A federal loan program

38.

What is a Work-Study program?

a)

A scholarship for academic excellence

b)

A federal program providing part-time jobs for students with financial need

c)

A loan with a variable interest rate

d)

A grant for volunteer work

39.

What does Tuition cover?

a)

Room and board expenses

b)

The academic portion of college expenses, excluding room and board

c)

Transportation and health insurance

d)

All college-related expenses

40.

What is a Variable-Rate Loan?

a)

A loan with a fixed interest rate

b)

A loan where the interest rate can change based on prime or index rate

c)

A scholarship that does not need to be repaid

d)

A grant for academic merit