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Unit 4 - Paying for College Study Guide

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of these options lists the types of financial aid from MOST attractive to LEAST attractive?

a)

Private loans, Federal loans, Work-study, Grants/Scholarships

b)

Grants/Scholarships, Work-study, Federal loans, Private loans

c)

Work-study, Grants/Scholarships, Federal loans, Private loans

d)

Federal loans, Grants/Scholarships, Work-study, Private loans

2.

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.

a)

Work-Study

b)
Subsidized federal loans
c)

Unsubsidized federal loans

d)

Grants

3.

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

4.

Although it’s not a type of financial aid, how can transferring credits from a community college help save you money on college costs?

a)

It reduces amount of credits you’ll have to pay for at your 4-year

college

b)

Colleges will pay you for any credits transferred from a community college

c)

The cost of community college credits can be deducted on your taxes

d)

Transferring credits from a community college makes you eligible for lower interest

rates when taking out federal student loans

5.

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?

a)

It will cost less to attend College A

b)

College B is providing Janelle more grants and scholarships

c)

College A has a lower sticker price than College B

d)

It will cost less to attend College B

6.

Who is eligible to receive Direct Subsidized loans?

a)

Graduate students

b)

Professional students

c)

Undergraduate students

d)

Students enrolled less than half-time

7.

Which repayment option does not accrue interest while your required payments are paused?

a)

Consolidation

b)

Deferment

c)

Refinancing

d)

Forbearance

8.

How much does it cost to file the FAFSA?

a)

It is free

b)

It is free the first time you file, but costs $9.99/year thereafter

c)

It is 2% of your total loan amount

d)

$50

9.

Typically, when should you first file the FAFSA?

a)

After you finish freshman year of high school

b)

October or November of your last year of high school

c)

After you receive your Student Aid Index

d)

Once you are ready to start repaying your student loans

10.

Which of the following is TRUE about the Student Aid Index (SAI)?

a)

The lower your SAI the more financial aid you are eligible for

b)

The higher your SAI the more financial aid you are eligible for

c)

The lower your SAI the less financial aid you are eligible for

d)

Your SAI does not impact how much financial aid you are eligible for

11.

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?

a)

Keith's financial aid package covers all of his necessary costs, so there is no need for him to do anything else

b)

Keith should take out a private loan and limit himself to $8000 in other expenses freshman year

c)

Keith should pick up a part-time job to cover his remaining costs and personal expenses

d)

Keith should not attend this college because he cannot afford it

12.

Each of the following organizations offers grants to college students EXCEPT...

a)

the federal government

b)

colleges

c)

private companies

d)

FAFSA

13.

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?

a)

Standard repayment plan

b)

Graduated repayment plan

c)

Extended repayment plan

d)

Income-driven repayment plan

14.

You will find each of the following pieces of information on your FAFSA Submission Summary EXCEPT...

a)

a. a record of the answers you submitted on your FAFSA

b)

b. your Student Aid Index (SAI)

c)

c. your eligibility for federal student aid

d)

d. a record of all scholarships you have applied for

15.

Which of the following is a benefit of an income-driven repayment plan?

a)

Theoretically, your payment should never be more than you can afford

b)

You will pay the least amount of interest over the life of the loan when compared to other loans

c)

They're structured to be paid off in 5-10 years

d)

Even if you start to make more money, your monthly payments won’t change