WorksheetsPaying for College Unit Review
Total questions: 25
Worksheet time: 13mins
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
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
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
In order to qualify for financial aid, which application must you submit?
FAFSA
PLUS
SAVE
SAI
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
Which of the following is considered a direct cost of attendance?
Travel expenses
Cell phone bill
Tuition
Food and entertainment
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
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
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
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
Who is eligible to receive Direct Subsidized loans?
Graduate students
Professional students
Undergraduate students
Students enrolled less than half-time
Which repayment option does not accrue interest while your required payments are paused?
Consolidation
Deferment
Refinancing
Forbearance
What is a 529 plan?
A fixed-rate savings account offered by banks specifically for setting aside money for college tuition, without tax advantages
An investment account used to encourage saving for college expenses by offering tax incentives
An insurance plan that covers the costs of college in the event that you need to use that money for an emergency
A federal grant program that provides need-based financial aid to college students, requiring no repayment
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
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
Each of the following organizations offers grants to college students EXCEPT...
the federal government
colleges
private companies
FAFSA
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
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
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
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
Which of the following lists at least three differences between federal and private student loans?
Federal loans usually have lower interest rates, more flexible repayment options, and do not require a credit check, while private loans often have higher rates, less flexible terms, and require credit checks.
Federal loans are only available to graduate students, private loans are only for undergraduates, and both require a cosigner.
Federal loans are always forgiven after 5 years, private loans are never forgiven, and both have the same interest rates.
Federal loans require collateral, private loans do not, and both have identical repayment plans.
Briefly explain the difference between direct and indirect costs of attending college and provide an example of each type of cost.
Direct costs are expenses paid directly to the college, like tuition; indirect costs are other expenses, like transportation.
Direct costs include all living expenses, while indirect costs are only tuition fees.
Direct costs are optional expenses, while indirect costs are mandatory fees.
Direct costs are related to extracurricular activities, while indirect costs are related to textbooks.
Your friend has asked you for advice in choosing the best federal student loan repayment plan for after college graduation. They told you that they have a job lined up that won’t pay very much at first, but after a few years with the company their salary will increase significantly. Which repayment plan would you recommend?
Income-Driven Repayment Plan
Standard Repayment Plan
Graduated Repayment Plan
Extended Repayment Plan
Explain why it’s important to submit your FAFSA as soon as possible after it opens in October.
Because some financial aid is awarded on a first-come, first-served basis.
Because submitting late guarantees more aid.
Because the FAFSA is only open for one day.
Because colleges do not require the FAFSA.
How is interest handled differently between Direct Subsidized Loans and Direct Unsubsidized Loans, and how can this impact your monthly payments?
Interest on Direct Subsidized Loans is paid by the government while you’re in school, while interest on Direct Unsubsidized Loans accrues and is your responsibility, potentially increasing your monthly payments.
Interest on both loans is paid by the government while you’re in school, so there is no impact on your monthly payments.
Interest on Direct Subsidized Loans accrues while you’re in school, but not on Direct Unsubsidized Loans.
Neither loan accrues interest until after you graduate, so monthly payments are the same for both.
