WorksheetsUnit 3 Review (Paying for College)
Total questions: 38
Worksheet time: 10hrs 30mins
Name
Class
Date
1.
Which of the following statements is FALSE about financial aid?
a)
Financial aid is money that is given to you - you never need to pay it back.
b)
Financial aid may be awarded to you based on factors such as your financial need, academic performance, or athletic ability.
c)
Financial aid may include money that you have to pay back later.
d)
Most full-time students receive some form of financial aid.
2.
What types of money are used in paying for college and in what order should you use them?
a)
Your money, borrowed money, free money
b)
Borrowed money, your money, free money
c)
Your money, free money, borrowed money
d)
Free money, your money, borrowed money
3.
Grants are generally _________________ while scholarships are generally _________________.
a)
need-based; merit-based
b)
merit-based; need-based
c)
free; require you to pay an application fee
d)
provided by the federal government; provided by the college you attend
4.
Which of the following might be potential sources of scholarships?
a)
The company that one of your parents works for
b)
A local service organization (e.g. the Kiwanis or Chamber of Commerce)
c)
The college you plan on attending
d)
All of the above
5.
Your cousin is getting ready to apply for college and is looking into financial aid. Which of the following statements about scholarships and grants she tells you is TRUE?
a)
"The more money in scholarships and grants that you receive, the less money that you will likely have to borrow to pay for college."
b)
"You should choose the college that provides you with the most scholarship dollars."
c)
"It is generally not a good idea to apply for more than 2-3 scholarships."
d)
"Unless you have a really strong GPA and high test scores, it is probably not worth applying for scholarships since they are so competitive."
6.
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?
a)
Federal student loans
b)
Private student loans
c)
Work study
d)
Grants and scholarships
7.
All of the following are possible sources of grants and scholarships EXCEPT…
a)
Government
b)
Non-profit organizations
c)
Your parents
d)
Private businesses
8.
In order to qualify for Federal student loans…
a)
You must have financial need
b)
You must file the FAFSA
c)
You must complete a separate application for federal loans
d)
You must take out a private loan
9.
A rule of thumb is a broadly accurate guide or principle. Which statement below represents a rule of thumb for how much a student should borrow for their college education?
a)
A student should borrow as much as a private lender will allow them to borrow.
b)
A student should borrow no more than 35% of their discretionary income upon graduation from college.
c)
A student should borrow no more than they expect to make as a starting salary upon graduation from college.
d)
A student should borrow as much as they expect to earn 10 years after they graduate from college.
10.
You enter college with an interest in becoming a teacher. You do some web research and see that the starting salary for high school teachers ranges from $35,000 to $50,000. Based on rules of thumb we analyzed in the lesson, what is a conservative (safer) amount of student debt to take on?
a)
More than $50,000
b)
Double your starting salary or $70,000 to $100,000
c)
About $50,000
d)
$35,000
11.
You take out a $3,000 UNSUBSIDIZED loan as a freshman with an interest rate of 4% per year. When you graduate four years later, approximately how much will you owe on the loan?
a)
$3,000
b)
$3,120
c)
$3,500
d)
$12,000
12.
Which of the following actions would MOST likely increase your cost of attending college?
a)
Taking out a federal student loan rather than a private student loan
b)
Using grants and scholarships to pay for college costs
c)
Accepting a work study position
d)
Attending an out-of-state college
13.
What factors are important when considering whether or not to attend college?
a)
Location and campus facilities
b)
Academic programs and reputation
c)
Tuition and fees
d)
All of the above
14.
Which formula is used to calculate the net price of a college?
a)
Sticker price + grants and scholarships = net price
b)
Sticker price + value = net price
c)
Sticker price – grants and scholarships = net price
d)
Sticker price - value = net price
15.
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?
a)
Indirect costs
b)
Tuition
c)
Direct costs
d)
Room and board
16.
What is the primary purpose of a 529 plan?
a)
To provide loans for education
b)
To save for future education expenses
c)
To cover healthcare costs while in school
d)
To invest in the stock market for business classes
17.
Terminology
The actual cost a student pays to attend a school.
a)
Net Price
b)
Sticker Price
c)
Room and Board
d)
Tuition
18.
Terminology
Money awarded to students that does NOT need to be repaid, often based on need
a)
Grant
b)
Work Study
c)
Loan
d)
Scholarship
19.
Terminology
Money awarded to students based on achievement, does NOT have to be repaid
a)
Grant
b)
Work Study
c)
Loan
d)
Scholarship
20.
Terminology
Money borrowed that has to be paid back with interest
a)
Grant
b)
Work Study
c)
Loan
d)
Scholarship
21.
Terminology
Money borrowed that has to be paid back with interest
a)
Grant
b)
Work Study
c)
Loan
d)
Scholarship
22.
Terminology
The actual cost a student pays to attend a school.
a)
Net Price
b)
Sticker Price
c)
Room and Board
d)
Tuition
23.
Terminology
Total expense of going to college which may include tuition, room and board, fees, books and supplies, transportation, health insurance, etc. Also known as Cost of Attendance or a school's published price.
a)
Net Price
b)
Sticker Price
c)
Room and Board
d)
Tuition
24.
Terminology
Cost of housing and food while at college
a)
Net Price
b)
Sticker Price
c)
Room and Board
d)
Tuition
25.
Terminology
The sticker price for the academic portion of your college expenses, which does not include room and board, textbooks, or other fees
a)
Net Price
b)
Sticker Price
c)
Room and Board
d)
Tuition
26.
True or False
You can only use a 529 plan in the state where you open an account.
a)
True
b)
False
27.
All of the following are good ways to prepare for paying for college EXCEPT…
a)
Contributing to a 529 plan
b)
Building a savings
c)
Pursuing grants and scholarships
d)
Taking out student loans
28.
Which of the following factors is LEAST important when comparing the return on investment (ROI) of colleges:
a)
The total cost of attendance over four years
b)
The average financial aid package offered to students
c)
The cost of membership for student clubs and societies
d)
The graduation rate of the college
29.
Which formula is used to calculate the net price of a college?
a)
Sticker price + grants and scholarships = net price
b)
Sticker price + value = net price
c)
Sticker price – grants and scholarships = net price
d)
Sticker price - value = net price
30.
All of the following are ways to reduce the costs of college EXCEPT:
a)
Starting off at a community college
b)
Buying used textbooks or renting them when you can
c)
Selecting a college far from home to increase the likelihood of receiving out-of-state scholarships
d)
Graduate on time to minimize the number of classes that you have to pay for
31.
What is the primary purpose of a 529 plan?
a)
To provide loans for education
b)
To save for future education expenses
c)
To cover healthcare costs while in school
d)
To invest in the stock market for business classes
32.
Which of the following statements is true about the value of a college education?
a)
Steve says, "The only value of a getting a college education is that your lifetime earnings will likely be more than a person who does not go to college."
b)
Christina says, "The value of a college education is that you will likely earn more over your lifetime, you grow a lot personally, and you get to make new connections."
c)
Judah says, "College is only valuable if you choose to study specific majors."
d)
Carla says, "College is not that valuable, but one cool thing is that you have the chance to study abroad."
33.
Which of the following statements is FALSE about financial aid?
a)
Financial aid is money that is given to you - you never need to pay it back.
b)
Financial aid may be awarded to you based on factors such as your financial need, academic performance, or athletic ability.
c)
Financial aid may include money that you have to pay back later.
d)
Most full-time students receive some form of financial aid.
34.
All of the following reasons explain why It is a good idea to talk to a parent/guardian about paying for college EXCEPT...
a)
You can give all financial responsibility for paying for college to your parent/guardian.
b)
Your parent/guardian can help you fill out paperwork and understand financial terms you may not have encountered before.
c)
You can create a list of colleges that you and your family can realistically afford (after grants, scholarships, etc).
d)
You have a solid understanding of the financial commitment and investment you are making before attending college.
35.
As a freshman living on campus, you can expect to have the following costs EXCEPT
a)
Room and Board
b)
Tuition
c)
Fees
d)
Rent
36.
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?
a)
Indirect costs
b)
Tuition
c)
Direct costs
d)
Room and board
37.
Which of the following is considered a direct cost of attendance?
a)
Travel expenses
b)
Cell phone bill
c)
Tuition
d)
Food and entertainment
38.
School 1 has a sticker price of $50,000 and offers $40,000 in grants and scholarships. School 2 has a sticker price of $15,000 and offers $3,000 in grants and scholarships. School 3 has a sticker price of $80,000 and offers $60,000 in grants and scholarships. School 4 has a sticker price of $10,000 and offers $1,000 in grants and scholarships. Which school has the lowest Net Price?
a)
School 1
b)
School 2
c)
School 3
d)
School 4
100 %
