WorksheetsUnit Review (Paying for College)
Total questions: 71
Worksheet time: 36hrs 30mins
Name
Class
Date
1.
Which of the following statements is TRUE about the value of a college degree?
a)
A high school graduate can expect to earn about the same as a college graduate
b)
Every college graduate can expect to have a starting salary over $60,000 right after college
c)
A college graduate can expect to earn, on average, more than a high school graduate over a career
d)
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…
a)
Grace period
b)
Grants and scholarships
c)
FAFSA
d)
Forbearance
3.
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
4.
In order to qualify for financial aid, which application must you submit?
a)
FAFSA
b)
PLUS
c)
SAVE
d)
SAI
5.
Which of the formulas below correctly calculates net price?
a)
Sticker price - student loans = net price
b)
Grants and scholarships + student loans = net price
c)
Sticker price - grants and scholarships = net price
d)
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.
a)
Work-Study
b)
Subsidized federal loans
c)
Unsubsidized federal loans
d)
Grants
7.
Which of the following is considered a direct cost of attendance?
a)
Travel expenses
b)
Cell phone bill
c)
Tuition
d)
Food and entertainment
8.
Who receives and uses the information submitted in your FAFSA?
a)
Your employer to see if you’ll still be able to work while attending college
b)
Your parents to keep track of your progress at college
c)
The federal government for tax purposes
d)
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?
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
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?
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
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?
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
12.
All of the following are strategies to reduce the cost of attending college, EXCEPT...
a)
Attend an in-state college that typically has lower tuition costs for residents of that state
b)
Spend your first two years at a community college then transfer your credits to a four year college
c)
Live on campus to reduce the costs associated with commuting to classes every day
d)
Participate in dual enrollment programs while in high school to reduce the number of classes you need to take in college
13.
Who is eligible to receive Direct Subsidized loans?
a)
Graduate students
b)
Professional students
c)
Undergraduate students
d)
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?
a)
Direct PLUS Loans
b)
Grants
c)
Scholarships
d)
Federal Subsidized Loans
15.
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
16.
All of the following are possible sources of grants and scholarships EXCEPT…
a)
Government
b)
Non-profit organizations
c)
Your parents
d)
Private businesses
17.
What is the main benefit of a grant?
a)
You can get it without filling out any forms
b)
You don’t have to pay it back
c)
You can spend it on anything you want
d)
It must be repaid with interest
18.
What is the main reason in-state tuition is usually cheaper?
a)
Colleges charge less for smaller classes
b)
State funding helps lower the cost for residents
c)
Out-of-state students don’t pay taxes
d)
Colleges give discounts to all local students
19.
How much does it cost to file the FAFSA each year?
a)
$85.00
b)
It depends on your family's income
c)
It depends on what college you go to
d)
It's free
20.
When does the FAFSA officially open each year?
a)
October 1
b)
October 15
c)
November 1
d)
November 15
21.
How often do you need to fill out the FAFSA?
a)
Only once before your first year of college
b)
Every semester
c)
Every year you plan to attend college
d)
Only if your family’s income changes
22.
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
23.
Your college’s cost of attendance is $12,000, you will be receiving $5,000 in scholarships and grants, and you plan on taking out $6,000 in student loans. What is your net price?
a)
$1,000
b)
$7,000
c)
$11,000
d)
$23,000
24.
Consolidation __________ your monthly payment and often means you will pay __________ in interest over the life of your loan.
a)
raises, less
b)
raises, more
c)
lowers, less
d)
lowers, more
25.
Your friend is an exceptional softball player who’s broken records at your school. What type of financial aid would be most applicable to those achievements?
a)
Scholarships
b)
Grants
c)
Work study
d)
Student loans
26.
Which of the following types of federal student loans can be taken out by your parents/guardian to help pay for your college education?
a)
Subsidized Direct Loans
b)
Unsubsidized Direct Loans
c)
Direct PLUS Loans
d)
Parents cannot take out federal student loans
27.
Which repayment option does not accrue interest while your required payments are paused?
a)
Consolidation
b)
Deferment
c)
Refinancing
d)
Forbearance
28.
What is a 529 plan?
a)
A fixed-rate savings account offered by banks specifically for setting aside money for college tuition, without tax advantages
b)
An investment account used to encourage saving for college expenses by offering tax incentives
c)
An insurance plan that covers the costs of college in the event that you need to use that money for an emergency
d)
A federal grant program that provides need-based financial aid to college students, requiring no repayment
29.
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
30.
Your school counselor is a great resource for all of the following EXCEPT…
a)
Providing information about scholarships and grants you wouldn’t be able to find elsewhere
b)
Negotiating lower interest rates with your lenders
c)
Suggesting specific scholarship and grant opportunities based on your personal strengths and accomplishments
d)
Comparing different colleges, their costs of attendance, and financial aid offers
31.
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
32.
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
33.
Each of the following organizations offers grants to college students EXCEPT…
a)
the federal government
b)
colleges
c)
private companies
d)
FAFSA
34.
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
35.
As you make decisions during college, you should focus on…
a)
Minimizing your student loan debt at all costs
b)
Having fun, because you’re only in college once
c)
Focusing entirely on your studies to maximize your GPA
d)
Balancing your academic, social, and financial decisions to make the most out of the entire experience while setting yourself up for success post-college
36.
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
37.
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
38.
A _________ is someone who agrees to take responsibility for a borrower’s debt if they cannot repay it.
a)
Loan Servicer
b)
Work-Study
c)
Scholarship
d)
Cosigner
39.
The _________ is the total expense of going to college, including tuition, fees, room, and board.
a)
Cost of Attendance
b)
Pell Grant
c)
Sticker Price
d)
Net Price
40.
When a borrower fails to repay a loan according to the agreed terms, it is called _________.
a)
Grace Period
b)
Default
c)
Forbearance
d)
Delinquency
41.
A _________ allows a borrower to pause federal loan payments; interest does not accrue on subsidized loans.
a)
Deferment
b)
Forbearance
c)
Entrance Counseling
d)
Exit Counseling
42.
Being behind on one or more loan payments is called _________.
a)
Default
b)
Principal
c)
Delinquency
d)
Prepayment Penalty Fee
43.
A _________ is a federal loan available to parents of dependent undergraduates or to graduate/professional students.
a)
Private Student Loan
b)
Direct PLUS Loan
c)
Direct Subsidized Loan
d)
Direct Unsubsidized Loan
44.
A _________ is a federal loan where the government pays interest while the student is enrolled at least half-time.
a)
Direct PLUS Loan
b)
Fixed-Rate Loan
c)
Direct Subsidized Loan
d)
Direct Unsubsidized Loan
45.
A _________ is a federal loan where the borrower is responsible for interest while in school.
a)
Direct Subsidized Loan
b)
Direct Unsubsidized Loan
c)
Direct PLUS Loan
d)
Private Student Loan
46.
A _________ is a letter from a college showing all aid offered to a student.
a)
Financial Aid Offer
b)
Loan Servicer
c)
Work-Study
d)
FAFSA Submission Summary
47.
A _________ is a loan with an interest rate that does not change over time.
a)
Fixed-Rate Loan
b)
Direct Unsubsidized Loan
c)
Private Student Loan
d)
Variable-Rate Loan
48.
_________ allows a borrower to pause payments, but interest continues to accrue.
a)
Forbearance
b)
Consolidation
c)
Deferment
d)
Grace Period
49.
A _________ is the period after graduation before loan repayment begins, usually 6–9 months.
a)
Forbearance
b)
Deferment
c)
Grace Period
d)
Entrance Counseling
50.
_________ is aid from the government, school, or private sources that does not need repayment.
a)
Grants
b)
Loans
c)
Work-Study
d)
Scholarships
51.
The _________ is the percentage charged for borrowing money.
a)
Tuition
b)
Sticker Price
c)
Interest Rate
d)
Principal
52.
_________ is replacing existing loans with a new one, often at a lower rate.
a)
Loan Consolidation
b)
Refinancing
c)
Repayment Plan
d)
Prepayment Penalty Fee
53.
_________ is combining multiple federal loans into a single loan.
a)
Loan Servicer
b)
Gift Aid
c)
Loan Consolidation
d)
Refinancing
54.
A _________ is an organization that manages loan payments and customer questions.
a)
Loan Servicer
b)
Entrance Counseling
c)
Financial Aid Offer
d)
Cosigner
55.
The _________ is a legal document promising to repay federal student loans.
a)
FAFSA Submission Summary
b)
Master Promissory Note (MPN)
c)
Financial Aid Offer
d)
Loan Servicer Agreement
56.
_________ are expenses essential for living and functioning.
a)
Tuition
b)
Needs
c)
Wants
d)
Room and Board
57.
The _________ is the actual cost of college after subtracting grants and scholarships.
a)
Net Price
b)
Sticker Price
c)
Cost of Attendance
d)
Tuition
58.
A _________ is a federal grant for undergraduates with exceptional financial need.
a)
Work-Study
b)
Pell Grant
c)
Scholarship
d)
Gift Aid
59.
A _________ is a fee charged for paying off a loan early.
a)
Prepayment Penalty Fee
b)
Loan Consolidation Fee
c)
Forbearance
d)
Entrance Counseling
60.
_________ is the original amount of money borrowed, separate from interest.
a)
Tuition
b)
Principal
c)
Interest Rate
d)
Net Price
61.
A _________ is a non-federal loan from a bank or lender.
a)
Private Student Loan
b)
Direct Subsidized Loan
c)
Work-Study
d)
Pell Grant
62.
The _________ is the maximum time you have to repay a student loan.
a)
Repayment Period
b)
Forbearance
c)
Grace Period
d)
Loan Consolidation
63.
A _________ outlines monthly payments, total interest, and the repayment term.
a)
Repayment Plan
b)
Loan Servicer
c)
Financial Aid Offer
d)
Gift Aid
64.
_________ refers to the cost of housing and meals at college.
a)
Tuition
b)
Room and Board
c)
Sticker Price
d)
Net Price
65.
A _________ is aid awarded for academic merit or achievement that does not need repayment.
a)
Scholarship
b)
Federal Loan
c)
Grant
d)
Work-Study
66.
_________ is the published total cost of attendance before subtracting aid.
a)
Tuition
b)
Sticker Price
c)
Net Price
d)
Cost of Attendance
67.
The _________ is a number colleges use to determine a student’s financial need.
a)
FAFSA Submission Summary
b)
Student Aid Index (SAI)
c)
Loan Servicer
d)
Financial Aid Offer
68.
_________ refers to the academic portion of college costs.
a)
Tuition
b)
Room and Board
c)
Net Price
d)
Sticker Price
69.
A _________ is a loan with an interest rate that changes over time.
a)
Fixed-Rate Loan
b)
Direct Subsidized Loan
c)
Variable-Rate Loan
d)
Private Student Loan
70.
_________ are non-essential expenses that improve comfort.
a)
Tuition
b)
Wants
c)
Needs
d)
Room and Board
71.
_________ is a federal program giving part-time jobs to students with financial need.
a)
Scholarship
b)
Work-Study
c)
Gift Aid
d)
Pell Grant
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